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Wednesday, March 16, 2016

Offer, Counter-offer, Negotiate, Close - Key Steps to Buying Your Next Florida Home

The 2016 housing market favors sellers pretty much wherever one is looking to buy a home.   One of the first steps to buying a home is deciding the budget.  Budget determines options.

When buyers moving to Brevard County, Florida start looking at homes they often find their initial house parameters need to be relaxed somewhat due to the smaller inventory. 

But, when all is said and done, buyers can find the home that fits their needs.  Now, to get the deal done...

Offers.  How much does one offer?  Go back to the second sentence above.  Your budget is key. 

If you received a mortgage pre-approval keep this number in mind.  A mortgage pre-approval is an upper limit not a must spend limit.   Your real estate agent can show you the comparables (what has sold, what is currently for sale).

In the current Brevard County, Florida market there is a good chance buyers will be competing with others.  My suggestion - make your offer, at minimum, a "let's talk offer."  A let's talk offer is simply an offer that is reasonably appropriate for the property condition/attributes, location and competition

It may not be the price the seller accepts but will, at least, result in a...

Counter-offer.  A counter-offer is not as good as an acceptance but it is positive.  Still, this is not the time to get emotional and acquiesce to the counter-offer.   Some solid advice I read this morning put it quite nicely.... "don't fall in love with something that can't love you back."

Your offer is more than price.  Your offer is also the terms.  Is it possible and reasonable (supported by the market and your budget) to raise your price?  If not, is your offer the cleanest possible offer?

What happens if the counter-offer is a request for your highest and best offer which is often the case when there are multiple offers on the table.  Just because your offer was received first does not mean the seller has to consider it.  If the seller has one or two days to respond to your offer then other offers may come in as well.  An experienced buyer's agent will make this time the minimum necessary to get an answer.

[Related:  Multiple offers! ]

Some times it is best to step back.  Don't forget about the other homes you have viewed.   How do they stack up based upon features, location and price.  Will one work just as well at a lower price? 

Negotiate.  After consultation with your agent decide what is best for you given your circumstances and timeline.  If the property is still the one then approach the negotiation table with objectivity and not emotion.  Give it your best shot given your budget.  And if your best shot is already on the table, do not be afraid to let it stand.  In the case of multiple offers you may have already had the best offer on the table.  Why bet against yourself?

In the end, things will work out. Maybe not with the current property but the next.  Buyers will never go wrong as long as they stay focused on their budget and goals.   

No matter where one is in the home buying process the key to avoiding buyer's remorse is this one word - budget.

Ready to buy a home in Viera, Florida?  Call or text me at 321-693-3850. I want to help!

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