Tuesday, December 23, 2014

How Do Mortgage Buyers Compete with Cash Buyers?

In the past 90 days, just over half the single home sales in Venice were to cash buyers.  Banks that are selling foreclosures prefer cash buyers, as do home owners selling on the open market.  Here's some tips to make sure your purchase offer with a mortgage is as attractive as possible to a seller.

1) Be prepared:  You have to be ready to show the seller you are a serious buyer by having a pre-approval letter from your lender.  Go do it.  Now.

2) Put as much escrow deposit down as possible: The more skin you have in the deal, the better it looks to a seller.  $1000 escrow deposits might work in certain price segments of the market.  But, if you really don't have more than $1000 to put down, are you qualified to buy a home in the first place?

3) Do your inspections quickly: FL contracts allow a 15 day period for home inspections.  You should offer 10 days.  You look like a more eager buyer who doesn't want to use the inspection contingency period to potentially back out of a contract.

4) Don't haggle: I know, your first reaction to reading this is "Wait, don't you work for me?".  According to the MLS, the Venice FL single family median sales price is 3% off the list price.  In other words, you should plan on a final price that is 97% of the list price.  My job as your buyer's agent is to work in your best interest, and your best interest isn't beating up a seller in a negotiation in this market.  Your best interest is in getting in the market now, before prices increase even further.

Every situation is different.  When you are ready to buy a Venice FL home or condo, please contact me to assist you in all your real estate needs.

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