Six Great Tips for Home Buyers!

In case some of you have been sleeping under a rock over the last couple months, the real estate market is back!  The days of trying to beg someone to buy your home and giving it away are long gone.  It seems as though buyers are now bidding on properties like their lives depended on it in our South Florida Area.  Inventory is shrinking and competition for marketable properties is fierce.  Not only does the everyday family have to deal with the volume of buyers in the market now-a-days, they have to deal with the all-powerful, CASH buyer.

Since, Warren Buffet advised America  that he wants to own as many single family homes as humanly possible, that seems to be the next hot thing for investors and their cash.  Hopefully, this is not an example of sheep being led to slaughter, but that’s another story all together.

With times like this in our area, buyers must be prepared for battle when looking for a homes in a reasonable price range.  (I have a feeling  that if you are looking for a multi-million dollar compound, your competing buyers are slimmed down quite a bit ;)).  I am going to touch on the most effective tools for this battle for all of my buyers out there.

At the end of May 2013, Kiplinger’s Personal Finance released, “Making an irresistible offer”.  They list six things to consider when making an offer.

1. Be Pre-Approved.  If you are serious about purchasing a home, this is a MUST.  Browsing for homes is fine if you are in the early stages of thinking about buying.  If you find something that you like and would like to see the inside of, chances are that without a Pre-Approval from a Bank/Mortgage Broker, a real estate agent will not give you the time of day.   This is the ESSENTIAL first step in the home-buying process.  Do not even think about submitting an offer without a Mortgage Pre-Approval.  If for some reason, your real estate agent try’s to do this and takes you out to view properties, etc, you are wasting everyone’s time.

2.  Do Not Low-ball.  Sellers in the current market ARE getting close to list price and sometimes more.  This fact is only true if the property is priced correctly.  Offer what the property is worth!  For you agents out there, if someone like a “flipper” comes to you and says, “I want to buy for 50 cents on the dollar.”  DO NOT WASTE YOUR TIME!  Even banks are asking for market value, because they know that they can get it.  If you really want a property, know that you will have to pay for what it is worth.

3.  Maybe use an Escalator Clause.  This is a basic clause in an offer that allows you to increase your bid if another offer comes in above yours.

4.  Add more to your deposit.  The more money that you put down, the better your offer will look to a seller.  Not to mention, your mortgage payments and loan will be lower, moving forward.

5.  Do not include many contingencies.  Sellers will look to the least bumpy road to the sale.  If your offer is loaded with contingencies and competing offer is smooth sailing, which offer would you take?   Kiplinger’s Personal Finance gives an example, “If you have enough cash, temper an appraisal contingency by assuring sellers that if the appraisal comes in lower than the purchase price, you’ll pay the difference or split it with them (up to a certain amount).”

6.  Personal Letter   This is by far my favorite battle tool.  With your offer, write a letter to the seller.  Tell the seller that you love the community.  Tell them what you love about their house.  Tug at some heart strings.  Keep in mind, people that are selling their home have great memories of that home.  Capitalize on that by pointing out the features of the home and how you will not change a thing about them.  Please do not tell the Seller how you are planning to gut everything and remodel!  This will not work in your benefit.

Well, there you have it.  If you follow these tips, your offer will have a much better chance to be accepted before any others!

buyers

 Thanks to Kiplinger’s Personal Finance and FloridaRealtors.org for the great information included in my rant.

Looking for a home on your own?  Are you nuts??  I’m here to help!  Contact me today!

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I began my career with Keller Williams Realty with almost 10 years in sales and customer service experience. I grew up in New Jersey and moved to Palm Beach County in 2000. I know how hard it can be to find a place to call home. It is important that you have the right support every step of the way. I am committed to work hard in order to get you into your dream home or office, or sell your current property as fast and efficiently as I can. I am a hard-working and informative Real Estate agent, who understands how difficult the buying or selling process can be in the Real Estate world. I promise to keep you informed during every step of the way. It's not the same everywhere, so you need someone you can trust for up-to-date information. I am eager to serve you. My wife, son, and I love the tropical paradise that we live in here in South Florida. Palm Beach County hosts some of the best and well known restaurants and shopping in the world, which is great for both the single and family lifestyle. If you are a fishing enthusiast, you have reached your destination. Whether it's bass fishing or deep sea fishing, South Florida has it all. I enjoy golfing on some of the best golf courses in the country here in South Florida. Though my handicap may not show it, they keep me coming back. Let's get out there and catch a few large-mouth or tee it up!

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Posted in Real Estate, Tools and Tips

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Frank Gaudino, REALTOR

Local Real Estate Agent to Palm Beach, Jupiter, Palm Beach Gardens Area

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