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|Posted on March 14, 2013 at 3:34 PM|
Buyers, Be Aware
Yes, it happened… throughout 2012 the signs became more and more prevalent, the “buyers-market party” was coming to an end, house lights came on and the music died.
Well, it’s official, the sellers have now hired their own DJ and hit the dance floor, prices are rising and inventory is exceptionally low. Economics 101: demand exceeds supply.
As we are about to enter the second quarter of 2013, there is no denying that the South Florida real estate market is now in favor of the sellers. With home inventories down throughout South Florida by amounts as significant as 50% over last year, there is less inventory to choose from and sellers are taking full advantage of demand outweighing supply. It is not uncommon to see “cash only” on our MLS listings and not surprising to see homes sell above list price.
So what does this mean for buyers? It means, as buyers you’ll be paying closer to list price than you have for quite a few years on most of the accurately priced homes throughout South Florida. Buyers also face a high probability of having offers rejected if they muddy contracts with frivolous contingencies, unreasonable credit demands or attempting to have the seller pick up closing costs.
This does not mean as a buyer, you are getting “ripped off.” It merely indicates home values are recovering and the likelihood of a low ball offer getting accepted is unlikely as the ball has now been lobbed into the sellers court. It also means, pre-approval letters or proof of funds accompanying any offer are part and parcel of having a fair shot at swift and successful acceptance of your contract.
As a buyer, I suggest if you like a home you see, ask your REALTOR® to prepare a realistic offer, immediately. In this market most accurately priced homes will move quickly and if you genuinely believe you found your next home sweet home, make a serious offer, as soon as possible. Otherwise, the home may be sold to another buyer if you fail to act fast.
Perhaps you are thinking … Typical REALTOR®, of course she is recommending to offer list price or close to it as soon as possible. However, my advice is not self-serving, it is merely what the market dictates. As REALTOR®, if I fail to apprise my clients of the market, I waste their time, my time and the selling agent‘s time, not to mention allowing clients to set themselves up for disappointment.
I enjoy the privilege of helping people find their new home, prepare a successful offer and ultimately shake hands with them after closing. However, I must be forthright and dissuade buyers from thinking there is a 2008 Time Machine we‘re going to jump eagerly into and buy a home far below list price. Like my buyers, I am excited to get to that joyful hand shake after closing and to do so, we have to start with realistic expectations and submit market-appropriate offers.
Buyers, be aware; It is a sellers market in South Florida.
Sellers you have a few things to be aware of, as well. Find out what they are in my next blog.
Copyright 2013: Valerie Anne Martinetti
Categories: Real Estate Pulse for 2013