Sunday, June 02, 2013

Home Buyer Tips - If you really want it, be prepared to give it your best shot!

The market has changed.  Buyers are now competing with each other.  Sellers are in the position of advantage.

There are only so many homes for sale in Brevard County, Florida.  At the present time that number is 2,211 single family homes.

The number of buyers seems to be increasing as prices climb and buyers jump off the fence they have been perched on for the past five years.

So buyers are finding they are not the only consideration for many sellers.  Sellers have a choice of which, if any, offer to accept - finally.

So if a buyer wants their offer accepted, they need to make sure their offer follows these Three Ps of Buying a House.
  1. Price.  Be realistic.  In a rising market with buyers getting an average of 95% of list prie, an offer way below list is usually a strategy for failure.
  2. Pre-approved (or Proof of funds).  Your ability to actually close the transaction is vital to having your offer accepted.  If you will be obtaining a mortgage, get a pre-approval letter from a local lender.  This is different than a pre-qualification.   If you plan to pay cash, get a proof of funds letter to accompany the offer.
  3. Prompt.  The sooner the better....the longer the period of time from contract date to closing date, the greater the chance something will come up to cause a problem.  There is a reasonable amount of time required for due diligence (inspection, surveys, appraisal, etc.) however 60-90 days is excessive unless the sale is a short sale.
Buying a house in a seller's market requires a concerted effort on the part of all players - buyer, real estate agent, and lender.

I spoke with a prospective buyer yesterday who told me their lender said to find a house and then get a pre-approval letter for the amount of the offer.

Even if the buyer is pre-approved the wait for a pre-approval letter to accompany the offer could mean a lost opportunity.

Buying a home in a seller's market (low inventory, increased buyer competition, rising prices) requires a pro-active plan.  The first step in being proactive is finding your real estate agent.

Buying a home in Brevard County, Florida?  Call me at 321-693-3850 to get the process started.