While buying a home is likely the biggest purchase you’ll ever make, you still want to feel like you’re getting a good deal. Most buyers, especially first-time buyers, want to submit an offer that’s under the asking price. There can be many reasons for doing so, and those reasons are often very valid. However, you want to make certain you’re not submitting a low ball offer that the seller will simply dismiss right away. You want to be strategic in crafting your offer. For example, it's unlikely that you'll get any price discount on homes for sale in Charles Cove because they are new vs a resale home in Davenport. Here are some tips for getting the best deal.
Know Exactly What You Can Afford
Before you make any offer or, in fact, even look at homes, you should look at your finances. Know exactly what you can afford to spend on a home. Then go to a lender and get preapproved. This preapproval doesn’t mean you have a mortgage, but it does mean a lender has looked over your finances and has confidence in your ability to purchase a home.
Now if you find your dream home, you will know what you can afford to offer.
Know the Market
Your Davenport real estate agent will be able to help you with understanding the real estate market. If there are many homes for sale, it’s a buyer’s market. This means that, as a buyer, you have so many options that sellers are essentially competing for your money. If it’s a seller’s market, there are very few homes for sale. Homes are getting multiple offers in this market, so you will often have to offer listing price or even above-listing to get a property.
When it’s a buyer’s market, you’re more likely to be able to submit a low offer and have it accepted. In fact, you may be able to submit an offer that’s as much as 20% under the listing price and still walk away with the property!
Look at How Long the House Has Been for Sale
Has the property been on the market for several months? If it has, the seller may be very motivated to sell. This is especially true if they’ve been paying two mortgages or have already moved out of state and want to wrap up the sale quickly. If a property has been on the market for over six months, you can likely get a very good deal on it. Homes in the Florida and surrounding areas are usually on the market for 80 to 90 days. This means if you see a property that has been available for more than three months, the seller may be very open to accepting a low bid.
Consider the Condition of the Property
Before you put in an offer on any home, pay attention to the condition of the home. If you see obvious signs of damage or things that will need repairs, you can absolutely use that as justification for submitting a lower offer. While peeling paint may not give you enough leverage to knock off 20% of the asking price, signs of foundation problems or evidence of water damage can be. If you’ve put in an offer and the home inspection comes back with several major (and expensive) items that will need repairs, you can return to the negotiating table and revise your offer.
You Need a Great Real Estate Agent
Real estate agents do more than just find properties—they’re also outstanding negotiators. The team here at Florida Realty Marketplace is here to help. Contact us today.