Time continues to show us that the real estate market is constantly changing and evolving. In last month’s blog, we discussed why South Florida continues to be a great place to buy real estate even in these times of uncertainty. While the market seems to be slowing down a little, it can be tricky for buyers to navigate what continues to be a seller’s market, so it is important to make sure they are making the right real estate offer.
Making the Best Real Estate Offer
With many people leaving other parts of the country to relocate to Florida, plus investors snapping up rental properties in the sunshine state, the competition is more diverse than ever before. Owners often receive multiple offers from varying types of buyers and have the advantage of choosing whichever offer appears to be the strongest in their eyes.
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 with 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!
Buying real estate and making an offer in a seller’s market can be challenging, so it can be beneficial to have professionals help you along the way. If you prefer the assistance of a lawyer in preparing a real estate purchase agreement, require escrow services, closing services, or any other service related to real estate transactions or legal matters, contact us today.
The Law Office of Donna Hearne-Gousse, P.A. represents clients throughout all of South Florida with closing 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.