The Danger Of Setting The Wrong Purchase Price
Most people know if their Realtor® doesn’t know the market in the area they are selling your home, they may not sell your home for the highest price possible in the shortest amount of time.
Also, on the buyer side, you may make the mistake of submitting an offer to purchase a home that is too low, costing you time, or even worse- submitting an offer that is too high. In that case you might woefully end up paying for the appraisal only to find out the home won’t appraise, giving the option to the seller to decline to sell, thereby losing time and money.
As if that isn’t bad enough, here are a few other dangers to avoid by making sure your Realtor® knows your market.
Purchase Contract Details Vary By Location
When you are buying a home and you are submitting a purchase contract, you need to specify how much money you are willing to put into escrow. If you are selling a home in Pompano Beach, FL, for instance, the expected/standard escrow amounts for our market are different than say, if you are selling a home in New York City.
If your Realtor doesn’t know your market then he or she may either accept a contract from a buyer with too low an escrow, or submit an offer to a seller with too low (or too high) an escrow amount.
Setting an escrow that is too low gives an impression of lacking funds. Setting an escrow that is too high opens you up to unnecessary financial loss should the funds be legally allocated away from you. The escrow amounts should be proportionate to the purchase price and significant enough to show your commitment to the purchase.
Also, the expected escrow amounts for non-distressed homes are different than for distressed properties, ie: REOs and Short Sales.
Inspection Periods Vary By Market
If you are buying a home in a low competition, low movement market you would expect to see much longer inspection periods submitted with offers. In a fast paced market like South Florida, and specifically in niche beach and coastal communities like Pompano Beach, Fl. where properties are going under contract within a matter of days and weeks, the inspection periods are much shorter.
In South Florida most inspection companies can inspect and deliver a report within 3-4 days. If your offer asks for a 14 day inspection period, the seller and seller’s agent may perceive your real estate agent as inexperienced or you as unmotivated and sluggish.
Acceptance Dates Vary By Market
There is a fine line between giving a seller a push to sign your offer quickly before another one comes in, and being an overbearing and overly aggressive buyer.
How long you give the seller to accept your offer depends greatly on market. How soon are homes in this community selling? How long is long enough to give the seller to review my offer? These are questions that come into play when submitting a finely tuned, smart, and competitive offer.
You want to give the seller enough time to review and sign comfortably but not give so much time as to allow another buyer to come in and scoop up the house of your dreams.
Remember, these days eSignatures are commonplace and if your real estate agent isn’t using the latest technology then they’re not being competitive. Buyers and sellers however, can sometimes be the reason the agent isn’t eSigning. Some sellers and buyers prefer pen to paper. While pen and paper is lovely, eSignatures expedite real estate transactions, plain and simple.
Selling or Buying A Home In Pompano Beach, South Florida
I know this market like the back of my hand and I will extend to you my 15+ years of real estate appraisal and sales experience.
Let’s discuss the inner workings of your real estate goals and I’ll get to work on helping you meet them.
As always, if you or anyone you know is in need of a great Realtor® in Pompano Beach, Fl, please consider calling me. It would really make my day!