More and more we educate our buyers to a new real estate market dynamic – buyer competition. In one of our more recent listings two offers came in and both sets of buyers were surprised to learn they were in competition with each other. My first reaction to all of this is to celebrate, celebrate the return of a stronger real estate market and the trickle down job creation impact. There are a few things to learn however.
Competition among real estate buyers is a national trend. Florida Realtors reported today (http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=2&id=284948) regarding the growing trend of buyer competition. They state “House buyers in a growing number of areas are finding something they haven’t seen in years when house-hunting: Competition. With housing affordability high and mortgage rates low, homebuyers are ready to cash in – but they’re finding a lot of others are as well.Bidding wars are becoming more common, particularly as the inventory of for-sale homes remains constrained across the country.”
Locally in Naples, Florida we see competition in some parts of the residential AND commercial markets. Commercial properties are seeing competitive offers right along side some promising residential properties.
Buyers might consider the following steps when engaging in an environment supporting multiple offers.
1) Put it in writing. Due to statute of frauds in the United States an offer might not be binding unless it is in writing. As a buyer put your offer in writing and get it accepted and countersigned by the seller. If another buyer shows up tough rocks, you have a binding contract you may be able to defend your position.
2) Get your act together. In these competitive environments do all you can to make your offer as clean as possible. By that I mean bid “all cash” or if this is not possible seek pre-approval for financing and have the pre-approved letter submitted with the bid to the seller so they can see it.
3) Be very careful with contingencies and closing dates – keep it easy for the seller.
4) Be careful with counter offers. Once you counter the old written contract is void (no going back) and the seller may just ignore your counter. If you receive a counter form the seller close to what you want – and the market is competitive – you might consider jumping on it.
Now just because the market is heating up in some spots does not mean you should throw caution to the wind! Make sure you this really love the place and make sure you can afford it. Only fools rush in – but if it is right be ready to go.
If you have any questions just contact us and we would be pleased to help you. For National And Naples Fl real estate trends see our YouTube channel http://www.youtube.com/user/naplesbestaddresses?feature=results_main .. or register at http://NaplesBestAddresses.com.
No legal, investment, or tax advice is being given in this Blog. Consult with legal, financial and tax professionals before acting on any real estate transaction. Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
Some of the data relating to real estate for sale on the NaplesBestAddresses.com website comes in part from the Broker reciprocity program of M.L.S. of Naples, Inc. The properties displayed here may not be all the properties available through the MLS reciprocity Program. This information is deemed reliable but is not guaranteed. Buyers and sellers are responsible for verifying all information about their purchase prior to closing.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA REALTOR Coldwell Banker 5th Avenue South Mobile: 239.595.3921 NaplesBestAddresses.com Facebook: NaplesBestAddresses Youtube http://www.youtube.com/user/naplesbestaddresses?feature=results_main