As a real estate professional in the Orlando real estate market, I can tell you that it is a great time to sell your home! However, many first time home buyers may not share the same feelings towards trying to get their offers accepted! Many cities and neighborhoods across the country are experiencing a shift in the real estate world from a buyer's market to a seller's market. In Orlando, FL, this change has been underway for the past year, and is evident in the many frustrated home buyers that decide its time to stop renting and attempt to buy a house in Orlando.
In Orlando, the number of homes for sale has dramatically decreased to extremely low levels. According to the Orlando Regional Realtor Association, there was a total inventory of 9,258 homes available for sale in Orlando in January 2012. As of January 2013, there were only 7,336 homes for sale in Orlando. That is a 20% percent drop in inventory for one year. Since interest rates are so low, more and more buyers are entering the playing field as rents become increasingly more expensive than your typical 30 year fixed rate mortgage.
Only realistic and motivated buyers will have success in purchasing their dream homes in many real estate markets across the country. Here are 4 simple and easy ways to get an offer accepted in a seller's market:
1) Be realistic! It is no longer 2009, and any buyer that expects to be able to negotiate their way into a "good deal" will be blind sided. If your max purchase price is $150,000, look at homes that are listed at $140,000 and under.Â Chances are that you will have to come in over the list price of the home in order to beat out other home buyers. Your Realtor should be able to show you which houses are priced fairly, and which ones are over priced. This is why working with someone your trust is very important. Remember that if you are excited about a particular home, their are tens, if not hundreds, of other buyers that feel the same way you do!
2) Be ready! Get pre-approved for a mortgage, before you begin looking at homes. When you find your dream home,Â you won't have to watch someone else buy it while you are still getting your financing in order. It usually does not cost any money to get the home financing process started and your Realtor should be able to point you in the direction of a good lender that won't drop the ball. A pre-approval letter is good for 30-60 days, and if it expires, a quick call to your lender should be enough to get an updated one faxed or emailed to you.
3) Be aggressive! Most listings will have get multiple offers, depending on whether or not it was priced right from the start. If you see a home that has 90% of what you are looking for, make an offer on it quick! If you wait to see what else is available, you won't find anything that else that compares, and you will lose out on the home to another buyer. A technique that I have used successfully is called an escalation clause. Figure out the maximum price you would pay for the homeÂ and ask your Realtor to write the contract using an escalation clause with your maximum price as a cap.
4) Be quick to close! Eliminate as many contingencies from the contract as possible. The longer it takes for the seller to get their money, the less of a chance that you have to get your offer accepted. Use a mortgage lender that can get the process done quickly and efficiently. 10 days is more than enough time for you to get a general home inspection, and any specialized home inspections to go along with it. Your Realtor should be able to assist with this process, so again, make sure you hire someone that is knowledgeable and trust worthy!
These steps will not guarantee that you will get your next offer accepted, but they will most definitely set you apart from the majority of buyers out there who have not realized that we are living in a seller's market. Persistence, patience, and determination are key in the competitive real estate market most buyers will find themselves in throughout the rest of 2013 and beyond.
Francisco Orchilles, RealtorÂ®| First Time Home Buyer Specialist | firstname.lastname@example.org | 407-925-4552 | www.orlandorealtylist.com | www.orlandohouseprices.com | Keller Williams Classic Realty | 5979 Vineland Rd. Orlando, FL 32819
Francisco Orchilles is a RealtorÂ® who specializes in Orlando Short Sales with Keller Williams Classic Realty in Orlando, FL. Ask Frank a real estate question. You can also find Frank on Trulia and Zillow!
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