<br>

The term 'panic buying' has been thrown around quite a bit during the COVID-19 housing boom. Housing inventory is at record lows, and housing demand is at record highs. Economics 101 tells us that this is the recipe for a pricing shock -- according to data compiled by S&P CoreLogic Case-Shiller US National Home Price Index, home prices in the United States have increased 12% from March 2020 through February 2021. This unprecedented spike in home prices is driven by record low interest rates and a rapid shift to a work-from-home economy that demands more rooms, more space.

<br>

We have all heard stories of listings on the [MLS](https://www.offermarket.us/real-estate-glossary/multiple-listing-service) receiving dozens of offers, above asking price, sight unseen with no contingencies and going into contract in just a few days. We have also heard countless frustrated homebuyers lamenting about the fact that if they want to buy a house, they are going to be forced into a bidding war for a house that they would not have even considered purchasing pre-pandemic. 

<br>

In other words: buyers are over-paying for undesirable inventory.

<br>

This is panic buying. Panic buying is irrational and dangerously value destructive. This simple guide is your resource to help you avoid panic buying.

<br>

In our Medium post, [Wholesale Real Estate: The World Of Real Estate You Probably Know Nothing About (But You Should)](https://dwshorowitz-offermarket.medium.com/wholesale-real-estate-the-world-of-real-estate-you-probably-know-nothing-about-but-you-should-b544c6ad69b5), we introduce an important source of housing inventory that most "retail" home buyers don't know about.

<br>

[Wholesale real estate](https://www.offermarket.us/real-estate-glossary/wholesale-properties) is a house where the owner (seller) is under contract with a wholesaler (initial buyer) who is selling the contract to another buyer (end buyer). Most of the time, end buyers of wholesale real estate are professional real estate investors (i.e. fix and flip and rental property investors). 

<br>

Additional reading: [Wholesale Real Estate 101](https://www.offermarket.us/guides/wholesale-real-estate-101)

<br>

## Where to find off-market housing inventory

<br>

### 1. OfferMarket

<br>

OfferMarket is a marketplace for wholesale real estate. There are hundreds of off-market deals that you can browse on our platform and buy with ease, without an agent.

<br>

**Join the pros and subscribe to OfferMarket deal flow:**

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<br>
<br>

## 2. Facebook Investor Groups

<br>

There are countless Facebook Groups dedicated to wholesale and off-market real estate, many of which are local. Join these groups for a steady flow of off-market deals. While you're at it, join our Facebook Group: [Real Estate Marketplace: Wholesale, For Sale By Owner](https://www.facebook.com/groups/326051528838367).

<br>

## 3. Network with local wholesalers

<br>

There are probably several reputable wholesalers operating in your local market. You can find them through local Facebook Groups, Google search, and your local [REIA](https://www.offermarket.us/real-estate-glossary/reia). Get on their [Buyer's List](https://www.offermarket.us/real-estate-glossary/buyers-list).

<br>

## 4. Be A Contrarian, Buy Like A Value Investor

<br>

Warren Buffett famously said "be fearful when others are greedy, and greedy when others are fearful". While housing prices have increased tremendously over the course of the pandemic, real estate is hyper local and certain markets have not experienced anywhere near as steep a rise in home prices. This is especially true of urban markets. While everyone is chasing suburban listings, smarter buyers are looking for opportunities in the areas buyers are fleeing.

<br> 

## Summary

<br>

Fight the FOMO (fear of missing out) and use the suggestions in this guide to buy smarter.

<br>

There's more to learn at OfferMarket. Feel free to [reach out](https://www.offermarket.us/contact) if you have any questions!

<br>

The current housing market is out of control. Learn what you need to know before buying in this high-demand market.

How to avoid panic buying in the current housing market - OfferMarket

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How To Avoid Panic Buying In The Current Housing Market

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<br>

Use this cash offer calculator to help you determine your **offer price** based on [ARV](https://www.offermarket.us/real-estate-glossary/arv-after-repair-value), [rehab estimate](https://www.offermarket.us/real-estate-glossary/rehab), and strategy. This investment property offer price calculator is designed for [property in poor condition](https://www.offermarket.us/guides/selling-a-house-in-poor-condition). 

<br>

## How to estimate cash to close, fix & flip profit

<br>

Use our [Fix & Flip Profit Calculator](https://www.offermarket.us/tools/fix-and-calculator) to estimate **cash to close**, **profit**, and cash-on-cash return.

<br>

## Offer formula for fix & flip investors

<br>

Fix and flip investors, commonly referred to as "flippers", offer the lowest amount of any buyers. If you're wondering why this is, it's because flippers are looking to maximize their one-time profit on a given property. In order to justify the substantial risk (money and time) of buying and renovating a property in poor condition, the flipper needs to build in a margin of safety. Unlike rental investors, the flipper cannot recoup their investment over many years of increasing rent and property values. The flipper needs to safely account for a worthwhile near-term profit from buying, fixing and re-selling a property. Re-selling the property incurs transaction costs which include staging, photography, seller concessions (1-2%), closing costs (1-2%), and agent commissions (4% - 6%).

<br>

Purchase Price = ARV * [65% OR 70% OR 75%] - Rehab Estimate

<br>

## Offer formula for wholesalers

<br>

Wholesalers need to add their fee in, which reduced the offer price accordingly.

<br>

Purchase Price = ARV * [65% OR 70% OR 75%] - Rehab Estimate - Wholesale Fee

<br>

## Offer formula for rental property investors

<br>

Rental investors, on the other hand, are focused on the long term (cash flow and property value appreciation), and are willing to pay more.

<br>

Rental investors are typically targeting 10% to 25% below market value on their investment.

<br>

Purchase Price = ARV * [select: 65% to 85%] - Rehab Estimate

<br> 

## How To Calculate a Cash Offer

<br>

To calculate a cash offer, you need to start with your end-game. What is your goal? Is it to buy a long-term cash-flowing rental property? Or is it to make a quick buck fixing and flipping a distressed property?

<br>

At this step, you need to decide what is your target financial return, and on what timeline? Are you looking to make $25,000 net of all expenses with a quick 3 month flip, or are you looking to generate 15% cash on cash annual returns with a long term rental?

<br>

## How To Make A Cash Offer

<br>

Making a cash offer is easy. You can **[submit your offer terms](https://www.offermarket.us/listings/submit-offer)** and we will provide you with our standard investor purchase agreement that you can submit directly to the seller.

<br>

## Cash vs. Hard Money Lender for Fix & Flip, BRRR

<br>

Instead of using your own cash to buy a property, you can use a hard money fix & flip loan. A hard money or private lender can typically provide up to 90% of the purchase price and 100% of the rehab cost. Learn more about hard money interest rates and fee, and [get a quote](https://www.offermarket.us/loans) from [OfferMarket Capital](https://www.offermarket.us/capital), our hard money private lending division.

<br>

## How To Get A Cash Offer For My House

<br>

If you need to sell your house fast, a cash buyer is the way to go because there are no financing contingencies and risks associated with a lender declining the loan. Use our cash offer calculator to see what type of offer range you should expect if you sell to an investor buyer. You can post your house on our investment property marketplace and compare AS IS offers from verified buyers.

<br>

Calculate your cash offers with our Cash Offer Calculator on OfferMarket and get an instant idea of your property’s potential sale price.

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Cash Offer Calculator | OfferMarket

Cash Offer Calculator

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket also provides DSCR rental loans, bridge loans, hard money, fix & flip, rehab, ground up construction loans.

Rental Loans

The question: Deal or no deal?

How would you vote?

The results

Additional insights

## The question: Deal or no deal?

<br>

We provided the following information:

<br>

- Purchase price: $50,000
- Current rent: $650
- Market rent (as is): $750
- Tenants: current, in property for 4+ years
- Location: 602 Archbald St L83, Scranton, PA 18504
- Condition (1 - 5): 3.5

<br>

## How would you vote?

<br>

Take a moment to decide... deal or no deal?

<br>

## The results

<br>

- Yes: 150 votes (83.33%)
- No: 10 votes (5.55%)
- Not enough details: 20 votes (11.11%)

<br>

## Additional insights

<br>

Several of the investors we polled offered helpful insights and considerations that every rental property investor should be including in their due diligence.
​
<br>

- Does it need repairs?
- Have the tenants been paying?
- Are current tenants willing to pay market rent?
- What are the property taxes?
- Do you plan to own several SFR in the same area?
- Will you be using a property manager or self manage?
- Is the population in Scranton growing or declining?

<br>

Answers to these questions and more are included in the [full deal overview](https://dbxjzbrgne13e.cloudfront.net/listings/602-Archbald-St-Scranton-PA-18504-USA?ref=blog-deal-or-no-deal).

<br>

**Update:** An offer of $46,000 has been accepted and the Seller and Buyer are expected to close in January 2021. Browse active listings for turnkey rental properties by clicking 'Listings' above.


Deal or no deal? We asked 180 rental property investors if they would do this deal. Rental investment property in Scranton, PA.

*Quote takes 1 minute, no credit pull

*1 quote from 40+ carriers

*New listings daily

Deal Or No Deal? Crowd Sourcing Rental Property Investing Decisions

* Takes 2 minutes, no credit pull

The question: Deal or no deal?

How would you vote?

The results

Additional insights

* Takes 2 minutes, no credit pull