Red Hot Tips for Buying in a Hot Market

There’s no doubt that the real estate market is hot, and depending how you look at it, it’s been this way for more than a hundred years. Between the beautiful beaches, unbeatable weather, and abundance of land - Florida has always been a popular place for buying property.

And today is no different. In fact, with the historically low interest rates and economic changes over the past year, things could not be better for those selling their homes in Florida. Many homes only stay on the market for a day or two, and a good percentage go for more than the asking price.

Of course, this puts potential buyers in a difficult - and frustrating - position. Perhaps you’ve had the experience of finding a great property, only to see it sold the next day, before you can even drive over for a showing. Or perhaps you’ve even gotten so far as to put in an offer, only to be outbid by a buyer with more zeal and financing than you can muster.

Well, if you’re looking to buy a home in Florida, while also navigating a competitive or “hot” real estate market, then we have some tips to make sure your homebuying is a success.

1 - Hire an Experienced Venice REALTOR®

Perhaps the most important step to ensuring that you stay competitive in a sellers market is to take on the services of an experienced buyers agent.

Click here for list of some of Venice's Best REALTORS®

There is often a lot of nuance to making sure your bid beats out the rest, and this is where an agent can help, as they likely have the knowledge and connections to get your foot in the door, with the right offer at the right time.

Agents can also clue you in as to exactly how competitive the market is. An experienced agent will have access to inside metrics like the market absorption rate, or average days on market, which could provide you with valuable insight into the market.

As you’ll see, timing and research are two key components of success for buyers in a competitive market, and an experienced agent will be an expert in both.

2 - Money talks. Get your Financing Pre-Approved

And yes, we mean “pre approved”, not just pre-qualified. Financing issues are often the biggest hurdle to completing a real estate deal, and putting your money where your mouth is is a great way to reassure a seller and convince them that you mean business.

Some steps you can take to seal the deal in terms of money are:

• Pay in cash wherever possible
• Make an offer at or above asking
• When applicable, opt for a larger deposit or down payment
• Come with proof of finances and all your documentation ready
• Now exactly how high you’re willing to go

3 - Be Prepared to Act Quickly

In a competitive market, speed and timing are everything. Well... maybe not everything, but homes being sold as soon as they’re listed is one of the defining features of a hot real estate market. You don’t want to be left behind.

So, get your preparation and uncertainty out of the way first. Do your research so you know exactly what you’re looking for and how much you can afford - that way you’ll be willing to take the leap as soon as the opportunity presents itself.

Stay ready to drive out to see a home within 24 hours of the listing coming to your attention. This is another place where having an experienced agent on your side is key. They’ll have the resources and technical tools to find you the home that you’re looking for as soon as it’s available - maybe even before, as agents can help you find homes that aren’t even listed yet.

4 - Make Fewer Demands

It’s standard practice in real estate transactions to add contingencies and terms to agreements or contracts. Remember, the seller’s priority is to get the deal done for the right price - so the less potential “outs” that a buyer has to sink the deal, the better.

While this may come at some risk to you as a buyer, waving certain conditions of the real estate agreement could be the signal to the seller that you mean business, and that they can get their home sold hassle-free.

And, it should go without saying, that bargaining and counter offers are not likely to go over well in a market where sellers are entertaining multiple bids from motivated buyers.

5 - Be Accommodating and Friendly

This one can be a little hard to define, since it covers a lot of the “soft” stuff around the deal, but the basic idea is that people are more likely to sell when they feel like they know you, trust you, and like you.

Some agents even advise that you send the owner a letter telling them, in short and sincere terms, what you like about their property. This can however inadvertently create a potential HUD violation.  If you can meet and chat with the seller - even better.

Also - be accommodating. Ask the home seller what their preferred timeline is, and try to work around it. Let them know that you’re willing to work with them to make the transition as smooth as possible. Giving the impression that you’re working together, rather than against each other, can go a long way to establishing yourself as the kind of person that they’d want to trust their former home to.

How to Know You’re In a Hot Market

While Florida seems to be a perpetually buzzing real estate market, there are still ups and downs. Here are a few factors to let you know that Florida is entering a sellers market.

• Home sellers are entertaining multiple offers
• Homes are selling at or above asking price
• Homes are staying on the market for a short time - less than a week
• Homes are being bought in cash
• Home buyers are waiving purchasing conditions (like home inspections)
• There are relatively few homes on the market

Are you interested in learning more about the city of Venice in beautiful Southwest Florida? Please contact Gulf Shores Realty online or call 941.488.6644 to learn more!