The real estate market is constantly changing and evolving, so the following advice is based on our current market situation…
In 2014-2015, South Florida experienced an influx of cash purchases from foreign investors and hedge fund companies purchasing homes by the hundreds every month. This created a great deal of competition for you – the individual buyer searching for your primary residence. Whether you are a cash buyer or financing a home, the competition is again more diverse than ever before. Owners are receiving multiple offers from varying types of buyers and have the advantage of choosing whichever offer appears to be the strongest in their eyes. For these reasons, and more, buyers have once again been navigating in a true seller’s market for the last year or so.
Hoping that your offer is the one that is accepted can test a buyer’s patience. While price is the most important variable, you need to stay within budget, within fair market value, and if financing, within the appraisal constraints. Wow that is enough to drive someone to the nearest rental community! But wait, there are ways to push the odds in your favor:
- If you are interested in a foreclosure, bid higher than the asking price but below or at fair market value, that seems to be the sweet spot for most bank owned properties.
- If you are buying cash, even though you have an advantage, do not bid too low. While cash offers are inherently strong, the most important variable is always going to be the offer price.
- If possible, increase the size of your deposit. A larger than average deposit size will show the owner that you are serious and have the financial strength to close.
- Ask your real estate agent to feel it out. Knowing your sellers will allow you to try to be accommodating. Do they need to close fast or slow depending on their next housing plan? Do they wish they didn’t have to move that oversized armoire and instead sell it to you for $100? Offering to work around the needs of the seller could be the decision maker, and save you thousands in purchase price!
If you prefer the assistance of an lawyer in preparing a real estate purchase agreement, or require escrow services, closing services, or any other service related to real estate transactions or legal matters, contact us today. We represent clients throughout all of South Florida with closing services and real estate related legal services. Our offices are located in Royal Palm Beach and Fort Lauderdale.
The Law Office of Donna Hearne-Gousse, P.A.