by Jon Lyons
on Thursday, October 15th, 2020 at 4:49pm.
The 30A Real Estate Market Is HOT.
You're A Buyer. You Have Questions, Concerns, etc. Live 30A is here to help. Keep Reading.
When the 30A real estate market is moving fast and is hot, there's a few things you as a buyer can be doing to make sure you're offer is a good and you'll be able to get the property that you've been dreaming about for family get togethers, financial reasons, and extra beach vacation time. Here's our quick list of a few things you can do. Oh and PS - there's a Realtor saying that stands mostly true... sometimes a buyer needs to "miss out" on a few homes before they "get serious". That's happening all the time now.
#1.) Be Extra Prepared.
- One of the big factors in making an offer is timing. When you have a pre-qualification or, even better, pre-approval letter in hand, this gives sellers the confidence that your offer is more "solid" and more likely to go through to closing. Connecting with a lender is key. I'd recommend connecting with a local lender who is familiar with our market, vacation rentals, etc.
#2.) Be Clean and Precise.
- In a market where the most beautiful things are going quickly, it's best to not lose a property over asking for the small things when competing offers are on the table. Asking for things like the golf cart, extra furnishings, extra closing costs, or money back could cause a deal to be lost. Offering "clean" with minimal contingencies, or extras can make or break a deal sometimes.
#3.) Be Realistic.
- Offering 3-7% less than asking price for a home is fine, if the market is "normal" is totally cool. Offering a good bit less than asking price when multiple offers could be coming in will likely not get you anywhere. If the home looks great, fits your family, and seems to be priced somewhat right - you might want to offer even a little above asking price. If multiple offers are coming in and they give you a "highest and best" offer situation -- at this point it's time to get together, think how much you want it and if a handful of extra cash is worth it to secure the property. Obviously, this won't guarantee you get the property - but will put you in a great position.
Real Life Example From Last Month on 30A...
I listed a property at lunchtime. It was in the right price range, looked great, and people liked it. By 1pm Realtors were calling me back to back and one had even knocked on the door already. By the end of the day, I had 6 offers in hand. One of the buyers offered $50k less than asking while all of the others were at least full price. We responded to all for a "highest and best" offer by 5pm the next day. Ultimately the sellers DID NOT choose the highest offer, but the next highest offer with the cleanest terms - which was best for them. The property ended up closing for $11,000 over asking price.
#4.) Be Flexible.
- Right now it's a sellers market, and they are a bit more in the drivers seal. You might need to be flexible on closing dates, a bit on the price, and any extras that you try and ask for. To be able to make a property purchase work, you might need to delay or expedite closing. Also, speaking of closing -- plan on 45-60 days to close right now. After we start getting into November, don't be surprised if a closing date in 2021 is selected.
#5.) Be Patient and Graceful.
- Home are selling fast, and sometimes someone else wants a house more than you. Others will come on the market, and with a little preparation you'll be able to jump on it if it's the right deal. Lenders are stretched to their limits, appraisers are backed up, closing companies are working hard, and some sellers might be a little unrealistic -- and you might be too. Give a little grace to everyone and to yourself too -- Buying right now is definitely a time to be on top of your things and ducks in a row, but it's also time to be patient and have grace... everyone involved in these purchases are real people who are doing their best - your Realtors, the lenders, the sellers, and everyone else.