Tips for Buying in a Sellers Market
2021 is a remarkable time in Southwest Florida for real estate. We are seeing a shortage of homes like never before. Only the quickest and strongest offers are being accepted by home sellers. There are several ways you can increase the attractiveness of your offer.
The key to strong negotiations is market knowledge. When you work with Kara Eisenga or Dawn you have a professional who will back up your offer price with sound market statistics. We put diligent research into our market analysis so you have facts to back up your offer. Are there times when it doesn't matter what the market dictates is a fair price? Sure, especially these days when inventory is low. We've seen even full-price offers be turned down due to other contingencies. We will help you put together an attractive offer to help you obtain your ideal home.
If a buyer will require financing to complete their home purchase, it is important that they speak with a lender before making an offer. Especially these days. There are times when a property receives multiple offers (undoubtedly over the weekend). A solid offer that requires financing but provides no pre-approval letter can easily be beat out by another buyer who came to the table with pre-approval for financing. A pre-approval letter equates to less uncertainty for the seller. The purpose of the pre-approval letter is not to limit you in your search or share with the seller how much you can borrow, the purpose is to give you leverage in negotiations and assure the seller that you are a solid buyer. If needed, our team can assist you in obtaining this letter from your lender.
For those who will purchase property without the need for financing, a pre-qualification letter can still be beneficial in making your offer more attractive and in some situations, may be required by the seller of a high-end home.
Most importantly, do not be alarmed when you are asked for a pre-approval or pre-qualification letter. The need for it is not to know your financial status, it is purely for your benefit in negotiations and it is common practice in this market.
There is no typical dollar amount that should be given for a deposit, (also known as earnest money or down payment). Different parts of the world seem to look at these very differently. Most importantly, consider this: When you provide an offer with a $1000 deposit, does that tell the seller you are serious? Your deposit should be in line with the price of the property and your sincerity. A deposit in an important piece of making your offer more attractive than the next person's.