How to Compete in a Spot Market with an Influx of People in Florida
JUPITER, Fla .– Ashlee Zahringer and her family have rented for just under a decade. As her family grows, the need to buy a home also increases.
“We had to look at, I would say, 40 to 50 houses,” she said. “Every day it seemed like we were going to a different house.
But it hasn’t been an easy path to home ownership. At first, they made an offer on a house in Jupiter.
“We bid above the demand, and we offered the seller some extra money, and we were beaten by a cash seller of a snowbird, which was disheartening,” he said. she declared.
Danielle Lawler, real estate agent at Illustrated Properties, said that as a local these days you need to be savvy to compete with the influx of cash buyers in an already competitive market.
“A lot of people who are local right now are just sitting out of this market right now and waiting,” she says.
If you lived in Florida before COVID, we’re kicked out of the market because a lot of people are moving here.
Lawler said that to compete you need to find your lender early, go through the underwriting process ahead of time for pre-approval.
“Go through this subscription process, get them the information they need on the front end, then you can have that conversation with them see how quickly can you close,” she suggested.
Lawler said the faster you can close, the more you can compete with cash buyers. She said they are currently seeing cash closings of 21 days or more. The more contingencies you can remove, the better. Realtors have said that for better or worse, sellers are also unwilling to accept contracts contingent on the sale of the buyer’s current home.
“You have to be ready to move when the property goes on the market,” Lawler said.
Evan McDonough, loan officer and branch manager at Family Mortgage, said the demand for loan processing was unprecedented.
“With COVID rates so low last year, everyone raising their hands to refinance, the lending world is super supported and still is,” he said.
McDonough said to try to narrow your inspection and appraisal window and get your loan at the same time. He said it’s all about turnaround times these days.
“When we are faced with cash offers, most of the time a seller will accept it, if the likelihood of loan approval matches the likelihood of inspection.”
He said that one of the ways people compete is to write their offer in cash, even if they are actually funding. This comes with a caveat.
“They have to be educated, that if the loan doesn’t go through, you have to be prepared to lose your deposit that you put with the seller, or to pay cash, because there is no way out when you write a contract. in cash, “he said.
After being back to square one, the Zahringer family said they had finally found a new place, but it came at a cost.
“It looked like a miracle,” she said. “You’re kind of going to have to get all the tricks out of your bag.”