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Thursday, February 14, 2013

Home Buyer Strategy in a Changing Market: How to (not) negotiate yourself out of a deal….

The real estate market is changing in Brevard County, Florida. 

Below is a comparison of the final quarter of 2012 and the final quarter of 2011.

The above chart provided by the Florida Realtors® paints a pretty accurate picture of the Brevard County market - declining inventory, higher selling prices.  

I heard a real estate broker comment this week that in her opinion the average consumer's view of the market is about six months behind reality.  I think that may even be generous as some buyers I have spoken with recently still believe that all sellers are desperate and buyers are scarce.

Buyers who have found the right home in the right neighborhood should consider the changing market when making an offer.  The new market is seeing more multiple offer situations.

When an offer is presented and the seller counters, consider the difference.  Consider the big picture. Is the difference in price significant or in the "let's talk" range?  Consider the possibility of someone else presenting a higher offer from out of the blue before a deal is reached. (A counter offer negates a previous offer).

How much difference will a few thousand dollars make in payments?  For example, with a $175,000 contract price at 4.5% for 30 years the monthly payment (principal and interest) will be about $887.  If  your offer was $173,000 the payment would be around $877 - around ten bucks a month.

If you are that close to a deal is it worth the potentially losing a house and starting again?  Don't get caught in a situation where you negotiate yourself out of a house you really want to buy.

Ready to buy or sell your Brevard County, Florida home? Call me at 321-693-3850 if I can help!

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