Fredie Mac First look initiative

Fredie Mac's new First Look Initiative, will allow potential homeowners and non-profit companies, the ability to compete exclusive of investors during the first 15 days of a Fredie Mac listing. This is great news for all involved since, homeowners will not have to compete for the same home as an investor, pricing can generally stay reasonable, and, allow for buyers using NSP programs a better chance of getting contracts accepted.

This summer as the Tax Incentive period ended, the competition for homes was such that a buyer who wished to purchase as an owner pccupant, would have to submit mulitple offers, sometimes significantly over asking price in order to be competitive with investors, regular FHA, and, conventional buyers. Home buyers using NSP funds must stipulate in the contract that "the sales price cannot exceed 99% of appraised value," and if Fredie Mac was looking at only the bottom line very few of these buyers would be able to purchase.

REO's that are aproperly priced will normally beunder contract within 15 days in Maricopa County. Since any Fredie Mac home listed for over 15 days was likely deemed undesirable by owner-occupants, many times due to condition of property not eligible for FHA financing, or with FHA with NSP. Investors can simply look for Fredie Mac homes listed over 15 days, and, offer accordingly. The pool of available homes is smller but is already handpicked for them. Also with less competition for these homes, pricing may trend lower.

Homeowners get an oportunity to purchase, investors will have less competition for Fredie Mac homes listed over 15 days, and, Fredie Mac sells their best homes to owner ocupants, and, homes that where probably going to be bought by investors anyways, should be easier to find for investors. All-in-all this is great news for all involved.