4 Tips to Buying a Home in a Competitive Florida Market
Homebuying In Florida?
With a strong economy and several highly desirable residential neighborhoods of South Florida, with relocators from just about everywhere, the housing market has been quite competitive over the past year for buyers.
What can you do as a buyer to ensure that you find the right home at the best price possible? The tips below can help, and once you decide on a home, working with a residential real estate attorney in South Florida can be beneficial when it comes to reviewing your purchase agreement, assisting with title inspections and your closing, and more.
#1 – Get pre-approved
Get pre-approved prior to searching for your home in South Florida. Buyers who aren’t pre-approved will not be taken as seriously by sellers. By working with your bank or a mortgage company ahead of time, and getting a pre-approval letter at the very least, you’ll be able to narrow down a specific price range and get the interest of sellers.
#2 – Be the first to make an offer
When it’s a seller’s market, home sellers will often avoid or ignore buyers who are dragging their feet. If you like any particular home, it’s always helpful to be proactive and be the first to make an offer as soon as you decide it’s right for you.
Of course, the closer that offer is to the seller’s asking price, the more likely you’re going to get serious interest, but there’s nothing wrong with negotiating a bit if you feel confident that the seller is okay with it and if you are proactive with your communication.
#3 – Offer a higher down payment
Statistics show that sellers are more likely to accept an offer from a buyer with a larger down payment, for a variety of reasons including perceived financial security, and the belief that the process will go more smoothly with the mortgage company.
So, when possible, offer the highest down payment that you can, and time your purchase right so that you can save enough to present a substantial down payment to secure the home you want.
#4 – Avoid buyer contingencies
Don’t make the process unnecessarily complicated on your end, such as asking the seller to wait until you sell your current home or asking them to cover some of your costs. There is less room for negotiation for favorable buyer terms when the market is hot for sellers, especially for a desirable property.
Be more willing to work with the seller’s preferred terms, and consider hiring a South Florida residential real estate attorney to assist with the process, title search, and closing to streamline things and finalize the deal.