A buyer wanting an affordable, move-in ready home in east Orlando can expect to write numerous offers due to strong demand & competition particularly from first-time homebuyers. The competition for affordable homes in move-in ready condition is so strong, buyers are finding themselves in bidding wars, driving up the sales price over asking & still losing out on their first choice of home.
Successful home bidding is more than just price…it’s an art & a science to bid on & land the home you want. Here are five critical components of bidding on a home.
Realtor I would advise any buyer – experienced or not – to work with a licensed realtor. A buyer’s agent represents a buyer’s best interests throughout the entire transaction – from showing prospective homes, writing an offer & completing the closing process. Best of all, there is no cost to a buyer to work with a realtor – all commission is paid by the seller.
Price Come out swinging hard by writing a strong, supported offer from the start (low ball offers will get you no where). You may (or may not) even receive a counter offer from the seller, so make your opening offer count. Be knowledgeable about recent sales & homes currently under contract (prices of ‘active’ inventory mean nothing in writing an offer – only sold & under contract). Your offer should be solidly supported using up-to-date ‘comparables’ (anything older than 60 days is stale).
Time Nearly as important as price, time is of essence for all sellers – they want to close yesterday. New requirements & processes for lenders now require several additional days to close, so a 30 day close are history. Today, typical closing time on normal & bank-owned homes is 35 to 45 days. Your offer should state the soonest date you are able to close in (such as 11/25/2010)…don’t list a completely unrealistic closing date of 12 days from now, then not be able to perform - you would be out of contract & would likely lose your deposit.
Concessions Seller-paid closing costs & seller-paid home repairs are a thing of the past. Writing an offer today with any kind of seller-paid concession is likely to turn the seller off. With home prices at rock bottom levels, sellers have no room to give the buyer another dollar on the transaction. However, as the largest home seller in the country today, Fannie & Freddie are providing up to 3% seller-paid closing costs on certain homes (along with a free home warranty) – great incentives to watch for.
Standard Contingencies Your offer should be written using Florida’s standard residential real estate contract paperwork, which contains standard contingencies that serve to protect you, the buyer. This paperwork will include buyer contingencies for financing, appraisal, general home inspection, termite inspection & mold inspection. These contingencies are in place to protect the buyer & to get your deposit back in the case of financing not being approved, the home not appraising for purchase price or major inspection discoveries that are over the agreed upon repair ‘budget’.
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