The Space Coast area continues to be a very competitive real estate market which means many folks are losing their dream homes or investment opportunities in bidding wars. Following these tips will increase your chances of crafting an offer that stands out in a multiple-offer situation.
- First and foremost - you must be ready to act when a great property comes on the market. If using financing, make sure you’re “pre-approved” instead of just “pre-qualified”. The difference here is significant in any market. Being pre-approved means the lender has already done a deep dive into your finances, including bank/tax statements. Being pre-qualified means you’ve had a verbal discussion with a lender regarding your finances, they pulled the credit report and a letter was issued based on the information they have at that point in time – before any documentation is submitted to underwriting.
- Few love a deal more than I do, especially when it comes to helping others get instant equity but offers over-asking is the new “normal”. Have a serious conversation with your financial advisor and/or lender to determine the best financial strategy for your situation and your real estate professional will use that knowledge to better assist you in getting those keys in your hand.
- Cash is definitely king but on closing day, it’s all cash. If you’re a solid pre-approved buyer, a letter from the lender with an overview of your finances will go MUCH further than a letter about how much you want the house. If you are compelled to write the Seller a “love letter” though, refrain from including personal photos.
- Once your finances are squared away, be ready to see a property that fits your needs at a moment’s notice, which may mean virtually, and be prepared to make an offer quickly.
- During the offer process, the fewer contingencies a Seller is presented with, the better. Unless you’re a seasoned professional when it comes to construction and/or remodeling though, I cannot stress enough that you should NEVER waive the inspection period. This is the crucial time when you get to hire your own professionals to advise you on the property’s condition. A general home inspector will inspect what is readily observable and provide recommendations for further evaluation where needed. This could include electricians, plumbers, roofers, and structural professionals. If the home was built prior to 1975, and still has the original cast iron plumbing, make sure you hire a plumber with a high-resolution camera to inspect the entire plumbing system from the roof to the street. It will add a few hundred dollars to your inspection costs but will be well worth it no matter what the findings are. from the full home inspection, where a licensed inspector looks at the overall condition of the home, other inspections include (where applicable): WDO (Wood Destroying Organisms), pool, seawall, septic/drain field and well water testing. Please note the type of financing will dictate which inspections MUST be performed and all types of financing will require the house to be in an insurable condition as noted by the 4-point and wind mitigation insurance reports.
- Offer a larger amount of earnest money to show the Seller how serious you are. You can also sweeten the deal for a Seller by offering up an additional earnest money deposit once the inspection period is over.
- Refrain from asking for any sort of Seller assistance at closing and you may even want to consider offering the Seller assistance toward their closing and/or moving costs.
- Offer to close as quickly as your resources and logistics allow but also convey your willingness to accommodate the Seller’s timeframe when feasible.
- Don’t be afraid of putting in a backup offer on a property you love that is accepting them.
- Don’t be afraid of making offers on multiple properties at the same time.
- Consider using an escalation clause during a multiple-offer situation. Use caution here though as some Sellers find these confusing, no matter how well they are explained when all offers are presented. (https://www.floridarealtors.org/news-media/news-articles/2021/04/use-escalation-clause-skyrockets-hot-sellers-market)
- In a multiple-offer situation be creative with your purchase price to stand out with the Seller. For example, you may want to add certain favorite numbers at the end of the offer price like $350,777 (for good luck of course!).
While all these tips can be helpful in the offer process, make sure the offer reflects your desire for the home and not just your desire to “win”. It’s also important to understand that it is not always the absolute highest offer the Seller goes with and it is ultimately up to them which offer they choose. Creativity and patience will be key as you and your real estate professional navigate this crazy market. Best of luck!