HOW TO WIN WHEN BUYING IN SW FLORIDA!

Remember the good ole days when sellers would assign a list-price to their home and then a buyer would come in with an offer below asking price? There would then be a bit of negotiation, but ultimately some middle ground would be achieved? Well, not anymore! 

 

Right now we are seeing a seller’s market like never before! Motivated buyers are coming in OVER list price, and some even sight unseen! We are also seeing several offers (over list price) coming in per property, which means a cash deal will win out over a finance deal every time! According to the NAR (National Association of Realtors®) on average, each listing is receiving about 5.1 offers! And 50% of the properties are selling above list price! “Due to the low supply of houses for sale, many homes are now being offered in an auction-like atmosphere in which the highest bidder wins the home,” according to an article at Keeping Current Matters.

 

If you are familiar with traditional auctions, you would know that a seller of a particular item will set a “reserve price” for that item. Which is the lowest possible price the seller will accept. In the 2021 housing market, we are seeing that the list price (that used to be negotiable) is now acting more as the sellers “reserve price.” The list price is simply a starting point and anyone who offers less, just isn’t really being considered as a viable option. 

 

Finding the “perfect” home is hard enough in today’s market with the extreme low inventory crisis, but now when the buyer does find something they like, they also find themselves in a middle of a bid war. Due to this auction-like atmosphere, 40% of active/potential buyers in 2021, haven’t purchased a home yet because they are repeatedly getting out-bid! 

 

Sellers on the other hand are LOVING this market. They have animated dollar signs bulging out of their eye sockets! Sellers have the upper hand and they know it! They expect to get more than their asking price, and will not settle for anything less. A recent survey from realtor.com found that 24% of homeowners expect to get more than their asking price and that 29% of sellers set their asking price to more than what they think their home is actually worth because they are so confident that they will get it. It’s all about expanding that profit margin! We are in the middle of a home buying frenzy and Real Estate Pros report that many of their listings receive 20+ offers, one got 97 bids! 

 

So, if you’re a potential buyer, you might be reading this and feeling a little discouraged. Our advice for you is the following: consider waiving contingencies, re-evaluate your budget, and if you can offer a cash deal, do it.