Tuesday, April 11, 2017

Buying a Home in Florida: Will a "Dear John" Letter Help?

Anyone who has researched home prices and the Florida real estate market is aware of the tight inventory.  Current inventory in Brevard County, Florida is about 90 days within median days on the market around 30 days.

Median days on the market means half the homes that list for sale are gone within 30 days - very often just days!

It also means that quite often there are multiple offers.  What makes the difference when sellers have multiple offers from which to choose?

So what should a buyer do when presented with a multiple offer situation?  

Seriously consider offer price.   No, it is not always the highest price but the price must be reasonable, realistic and reflect a buyer's level of real interest.

What is a realistic offer?

A realistic offer has many components including reasonable price, only contingencies necessary, appropriate time line and appropriate documentation.

What are the necessary contingencies?  

Every situation is different but my opinion is every offer should include these three contingencies: inspection, financing and appraisal.

The first one, property inspection, is what I like to call a get out of jail free card.  There is no pass or fail with inspections. If a buyer does not like the results, cancellation is easy as long as time frame and procedure is followed. Remember, with real estate contracts time is of the essence.

The financing contingency is common sense - if no loan approval, no purchase.

While the appraisal is usually part of the loan process in the case of a cash buyer it is always prudent to have an appraisal performed.  What buyer wants to pay more for the property than it is worth in the opinion of an independent appraiser?

What is meant by the appropriate documentation?

Besides the usual contract and addenda for the offer there are additional supporting documents such as the mortgage pre-approval.  In the case of a cash buyer it would be proof of funds. 

Lastly, in the case of multiple offers it could include something as simple as a letter to the seller.   I have had clients use this on occasion and it has worked.  Sellers have told me that the reason the buyer was chosen was the letter.

Will a "Dear Seller" letter seal the deal 

While there is no guarantee you never know. Sometimes an honest, open letter to a seller may be more valuable than a few more thousand in the price.  You never know!

The key to buying a home in Florida (or any other place) is having a local, knowledgeable, experienced real estate agent in your corner.

Considering buying a home in Viera, Florida?  Call or text me at 321-693-3850 for assistance.  Just have questions about the area?  I will help!