Great Britain’s vote to leave the European Union, also known as Brexit, shook financial markets to the core leaving investors scrambling.  There was a definite flight to quality into US Treasuries as the 10 Yr note yield fell instantly as the vote was announced.  We answer the question, “Could Brexit benefit Southwest Florida home buyers?”

Brexit Benefit Southwest Florida Home Buyers

Could Brexit Benefit Southwest Florida Home Buyers?

The answer is yes, it is already benefiting many borrowers.  Since Brexit rates are down about 1/4% to ½%. This works out to about 6% more purchasing power for the same payment in one week’s time.  In other words, a buyer has two choices.  They can either step up about 6% in purchase price and not have the payment cost them any more, or they can purchase the same amount and spend less per month doing it.

This helps more buyers qualify, so it can help sellers too.  We have a listing in Bella Casa that has Open House Friday 5:30-7:30 and Saturday 5:30-7:30 July 8th and 9th.  It is 3 bedrooms and 2 baths and is listed at $185,000.  Before Brexit we needed a buyer that qualified for the full $185,000.  Today we could find a buyer that qualified for a maximum $174,000 just last week and make that deal happen and it wouldn’t cost the buyer any more.

In the higher price ranges it’s even more dramatic.  Essentially borrowers just got either a financing discount or a purchasing boost for the same money.  The buyer definitely wins, and one could argue sellers do too because now there are more available buyers for their home.

When times are uncertain investors flock to tangible assets or quality.  Good examples of tangible assets are gold and real estate.  Both can fluctuate in value but real estate can be rented out.  It’s hard to do that with gold.  The EU may not be done losing participants either, and if anyone else bows out like Great Britain did it could spell more uncertainty for the markets.

Gold rose and oil fell after Brexit.  Gold was considered a flight to quality while oil fell because people feared a business slowdown.  Sometimes the markets are fueled by consumer confidence while other times they’re fueled by opportunities.

We could have fewer British and European buyers in the US market which could hurt some local markets while at the same time helping many buyers.  Many times there are competing forces at work and so it is difficult for anyone to accurately predict which force wins out and who the winners and losers will actually be.  Just keep in mind there are opportunities in situations like these and the news isn’t always grim.

If you’re thinking about buying in this very low interest rate market we’ve got the website for you.  www.LeeCountyOnline.com  We think you’ll like it because it is updated with all the listings every 5 minutes.  Most of the other sites take days and still don’t always get it right.

Sometimes days is too long.  The best properties go fast.  Timing is critical.  If you’d like to take advantage of this financial situation, give us a call at 239-489-4042 or register on our site.  We can get you in touch with a lender who has rates below 3% as of the time we’re writing this article.

If you’re a seller, we have lots of buyers and may have a buyer that’s looking for a home like yours.  You can call us too.  If we don’t currently have a buyer, we have marketing that attracts buyers.  Give us a call and let’s see if we can get you to your next goal.

Good luck and Happy House Hunting!

Next weekend we’ll feature an Open House Extravaganza, so stay tuned.

 

Welcome to the Ellis Team Seller’s Club.  Each month we inform sellers in Southwest Florida trends and data to make the best decisions.  E-Mail us if you’d like to be included in our Seller’s Club.

Official numbers were released for March single family home sales and it’s no surprise that March SW Florida closed sales fall as prices rise slightly.

March SW Florida Closed Sales Fall as Prices Rise Slightly Home Prices

Home sales were down 13.2% in March while median home prices were up 4.2%.  This could have been worse except for the fact that numbers last year were revised down.  As you can see from the attached sales prices chart we’ve been bouncing around close to a recent high which was set in January.  Each year median prices tend to top out in April so we’ll be watching next month’s numbers to see what the trend is for the balance of 2016.

March SW Florida Closed Sales Fall as Prices Rise Slightly

Closed home sales tend to top out in March/April or May so we’ll be watching closed sales over the next few months to see how that trend scores as well.

Active inventory has risen 8.4% over last year at a time when closed sales are falling which has led to an increase in months supply of inventory, which is up to 5.4 months, up from 5.1 months last year.

All in all we have a fairly stable market.  Sellers have gotten used to the new normal for the most part.  It’s been the hardest on sellers who listed last Fall as they were expecting prices to continue rising.  Sellers listing today look at the facts and realize prices aren’t rising like they were.

Buyers are under tremendous pressure and it’s going to get much worse.  Prices have risen, but so have rents.  In fact, you could argue rents have risen at a faster rate than prices have.  What have saved home buyers are ridiculously low interest rates.  Low rates have contributed to affordability.  Rising prices lowers affordability as does rising rates.  If you have both, you’ve got real problems for buyers.  Rising home affordability only pushes rents higher too as landlords know buyers can’t afford homes.

Really, now is the time to make the move.  Whether you’re considering replacing your current home or buying your 1st home, now is the time as rates are low.  You’ve still got affordability on your side, but not for long.

Ellis Team Moves to Keller Williams

Speaking of moving, in case you haven’t heard, the Ellis Team has moved to Keller Williams after nearly 30 years with RE/MAX.  Our team, phone numbers, and websites all stay the same.  Simply go to www.LeeCountyOnline.com to search the MLS, view market reports, or find out what your home is worth.  You can always call us at 239-489-4042.

Our team is growing.  We now have new opportunities to grow with our team we didn’t have before.  The future has never been brighter.  If you’ve got a property to sell, you should definitely give us a call.  We’re experts at selling homes in any kind of market, and we’ve got a good market right now.  Just because it isn’t appreciating at double digits doesn’t mean it’s not good.  That kind of market is unsustainable and invariably runs out of gas.

I’ll take a steady slow growth kind of market any day.  It’s what we used to have back in the 80’s and 90’s.

Always Call the Ellis Team 239-489-4042, we’ll handle you with care.

 

Good luck and Happy House Hunting!

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The Ellis team is proud to re-introduce our Ellis Team Buyer’s Advantage Program. This is a program we used many years ago when we were the first agents to put the MLS on our website.  We’re bringing it back and adding some valuable features we think you’ll find useful.

  1. How would you like to be notified about upcoming listings Before they come on the market?  The Ellis Team lists and sells a lot of property because our marketing works.  Sande and Brett go on a lot of listing appointments each week.  We don’t take them all.  Some sellers aren’t ready yet, or they simply aren’t willing to price their home at today’s market value.  We only bring listings that will sell to the market.  We’ve created a private website for buyers in our Buyer Advantage Program™ that will post the listing appointments we’re going on.  Literally you’ll find out about upcoming listings even before we list them.  If one meets your criteria, you can contact us and we’ll arrange for one of our buyer specialists to show it to you.
  1. Our website is up to date so you’ll be able to search for Hot new listings in real-time. Many national websites have outdated or incorrect data which can be frustrating for a buyer.  It’s terrible to find a home online only to find out it closed 2 months ago. Our website is tied into the MLS. As agents we have that privilege that national sites don’t always receive. We’re in a tight inventory market so every advantage helps.
  1. Open House Pass- Have you ever visited open houses and been hounded by agents asking you to register?  Of course that agent wants to follow-up with you about the open house. They’re just doing their job.  If you don’t buy the open house they want to show you others.  If you find an agent that’s friendly to work with this is all fine and good.  The problem comes in when you visit several open houses in a day or month.  Now you have several agents contacting yEllis Team Buyer Advantage Program Open House Passou and hounding you to shop with them.  This can get quite frustrating.  We’ve solved that problem.  We provide you with an Open House Pass that puts other agents on notice that you’re working with the Ellis Team at RE/MAX.  Now you only have to forge one relationship with a great Realtor and you won’t have pesky agents hounding you for contact information.  Your life will be simpler and your agent can listen to your needs and hone in on the property you’re looking for.  In a low-inventory market it pays to not waste time starting that process all over again and again.
  1. Free Reports- We’ve complied a series of buyer reports we’re getting ready to release. Members in the Buyer Advantage Program will have access to all of these reports and valuable information. Our reports cover things like how to make an offer when there are multiple offers on the property, how to best structure your offer, and what to look out for in the inspection process.  Many buyers have mortgage questions as the process has changed in the past few years.  We have Free reports for that.

 

The Ellis Team at RE/MAX takes buying and selling real estate seriously.  It pays to work with a serious Realtor.  Simply go to Ellis Team Buyer Advantage Program and sign up and we’ll add you to our Buyer Advantage Program as an added bonus.  You’ll also gain access to the pre-listed property information, the Free reports, and the Open House pass along with future benefits we’ll be unveiling soon! You can always call us at 239-489-4042

Always call the Ellis Team, we’ll handle you with care!

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SW Florida Real Estate Market Update

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By Brett Ellis

RE/MAX Realty Group – Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042

If you recall back in March and early April we reported that preliminary March Sales weren’t as strong as hoped and indeed the official numbers confirmed that prices weren’t rising in March at a time when they typically do.

Sales numbers in SW Florida real estate

Strong April Sales Numbers in SW Florida

We are happy to report that April numbers appear to be coming in a bit stronger.  Official numbers won’t be reported until later in the month and agents are still changing pending sales to closed and adding final sales prices to the MLS, so it’s impossible to gauge for sure.  As of May 6 we are seeing median sales prices rising to $191,950, up from $185,000 in March and up from last year’s April figure of $182,000.

Now here’s where it really gets interesting.  Our phones and Internet leads have blown up the last week of April and first week of May.  Contracts are coming in very strong and buyers are buying. It’s stronger now than all of season was.  Many have speculated this could happen.

Here’s the buzz we were hearing from buyers all season.  The weather up North was terrible.  In fact, it was so terrible many couldn’t get here.  Many waited for the weather to improve and now they’re making the trip to purchase.  Many who did make it down are returning.  I don’t think we can underestimate how impactful this past winter has been, but it isn’t the sole reason we’re strong.

The economy is improving some.  Interest rates have risen and are expected to go higher.  Many people have been locked in their homes for so long due to negative equity and when they’re finally able to break out it’s like a jail break.  We’re seeing locals moving up, down, and laterally.  We’re finally returning to a healthy market after years of healing.

Are we completely healed yet?  That depends on your situation.  Some are still in negative equity so they would say no.  For many the answer would be yes.  In any event, opportunities have opened for those in a position to take advantage, and this is the way it always is.  The market doesn’t care what you owe or what you need out of the property.  It never has.  The market only cares about what a home is worth today.  Markets are always on the move and rarely stay constant.

The good news is we have a market, and it’s a vibrant flowing market with money on the move.  This beats a market where homes just don’t move.  If you price your home correctly, there is a market.  If you over price it, chances are it will not sell, and that is true in an up, down, and sideways market.  It’s always true.  It is perhaps the only constant in real estate.

Some say it’s all about location, and I won’t argue that.  I will say it’s all about Price.  A home with a better location will fetch a better price.  If you over price the best location, it will sit.  Conversely, the worst location will sell too, at the correct price.  So, location is secondary to pricing.

If sales like this keep up we may head back to a market where the summer months are the best months for single family home sales.  In the old days Season was best for condos and the summer months best for single family homes.  SW Florida used to be a year round market and we may be returning to that.  Summer sales never left, but they may actually rise going forward.

We’ll keep our eye on it.  By the way, if you’re considering selling, we’ll be introducing a new way to market homes in SW Florida.  We’re pretty excited about it, and we think you will be too.  Don’t list your home until you talk to us. 239-489-4042

Good luck and Happy Selling!

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Fort Myers Real Estate Agent

Is the SW Florida Real Estate Market Changing? Listing inventory rose slightly in Fort Myers and Cape Coral real estate markets in February from 6,192 single family homes on the market in January to 6,271 last month. Listing inventory typically peaks in January and declines slightly in February before Declining rapidly in March due to so many seasonal sales occurring. This year inventory actually rose in February and internal numbers we’re tracking in March show they’ve risen slightly again.

SW Florida real estate market single family home inventory

This may be a sign that sellers have been a little too ambitious pricing their home and buyers have backed off bidding up prices. Prices typically peak in season then level off or decline a little bit the rest of the year. This is because most of the higher priced sales occur when we have the most visitors, but if that trend is peaking it will be interesting to see where the market heads from here. New pending sales in February are down 10.6% from last year. New listings are up 5.4% over last year. So we have increasing inventory and declining pending sales in the height of season. We’ll be tracking March numbers very carefully. It’s still possible March and April could be great as Easter is late this year but the pending numbers we’re looking at don’t bear that out plus we see rising inventory.

SW Florida real estate market new pending sales and Cape Coral, Estero, Fort Myers Beach single family

SW Florida Real Estate Market Prices

Prices did rise in February up to a median price of $185,000 from $180,000 in January. Average prices rose from $301,035 in January to $311,536 Has the market peaked? Markets rarely stay constant. It’s possible the market is taking a break until it figures out where it wants to go. Properties in the $250,000 or less range are still flying off the market. Homes priced higher than $400,000 really need to make sure they’re priced competitively in the market as inventory begins to build the higher the price. Interest rates are rising again and it has put pressure on buyers. We just received some good news on flood insurance which will help the SW Florida real estate market compared to what we could have seen had the President not signed HR 3370 into law this week. New buyers will receive the same flood rates as existing homeowners do. Rates may still climb, but there are caps to how much and how fast, and before the new law was signed, there was no grandfather clause when a purchaser bought a property. This should provide some stability to costs for buyers which does affect their purchasing power. We’ve had some excellent weather down here and the weather up North has been dreadful. 2014 might be the year many will vacation down here and put plans into place to move here in the coming months. A few companies are also bringing jobs to SW Florida in the next few years. If the economy improves, our real estate market has more room to grow. If it doesn’t, our market may stagnate and remain at these levels. Like I said, the market rarely stands still. Forces affect the real estate market. Rising interest rates affect it negatively. Jobs and the economy do affect the market as well. We’re not sounding the alarm that we’re at risk of a downturn. We are saying we’re watching the numbers and we have a few things to keep our eye on going forward. The continued trend of rising prices may still occur, or it may subside and take a breather.  If your plans depend on one outcome or the other this is information that may be useful to you. Nobody knows where the market is going exactly, or exactly when it will get there. If you’ve got a property to sell, give us a call and we’ll guide you through the market. If you’re a buyer, it pays to know what areas are hot and where inventory is building. We have the information. Let it work for you. 239-489-4042 or search the MLS at www.swfloridamls.Topagent.com Good luck and Happy Selling/Buying! If you’re considering buying or selling in Fort Myers, Cape Coral, Estero, Ft Myers Beach or anywhere in Lee County Florida, give us a call. 239-489-4042 or visit our website www.Topagent.com Search the MLS View Larger Map Feel free to view our Virtual Tours . Visit our Google+ Business Page  

Everyone always asks where are prices headed in the new year?  Buyers and sellers read the headlines and hear prices are up 13.03% over last year, but what does that mean?  Are all prices up 13%?  Is that the average price or the median price?  If prices are going up, how much more will my home be worth next year?

We’ll attempt to answer some of these questions.  Prices vary by month.  It is true the median price of a home is 13.03% higher this October ($157,000) vs. last October ($138,900)

As you can see by the attached graph home prices maxed out this year around April.  The average sales prices maxed out at $292,201 in April while the median sale price maxed out in June at $185,000, although April was a close second at $182,000.  Prices have gone down regularly since April, so some might conclude that prices are actually falling, not rising.

This isn’t true either.  If you go back and look at 2012 the same pricing phenomenon was reached with prices maxing out in May before falling a bit later in the year.  The difference is prices leveled out in the 3rd and 4th quarters of 2012.  We have seen a leveling out in 2013 until the dip in October prices.  We’ll be watching November and December data when it’s released to see which trend evolves.

We don’t get too wrapped up in any one month’s data as certain sales can slip into the next month which can skew one month’s data up or down.

For the past few years season has dictated where prices will go for the following year.  By season I mean sales occurring in Jan-April and closing into May.  We do have a bit more inventory to sell this year, and our inventory prices are higher than they were last year, so logic would dictate as long as the market responds with sales at those prices we should have a pretty good season.

Some economists are expressing concerns over interest rates and how an anticipated rise next year could affect real estate purchases.  A 1% increase in interest rates decreases buyer’s buying power by about 9%. Flood insurance has been another concern for Realtors.  As of now, flood insurance rates are going up when you buy certain properties.  Congress may delay the rate hikes for up to 4 years but all proposals are stalled at this time, so rate hikes are in effect.  We’re talking about some significant hikes, and this could weigh on real estate prices for affected homes.

All in all we’re confident and hopeful heading into 2014.  There are some wild cards in the forecast as there is every year. The bottom line is a recovering economy can cure an awful lot of wild cards, so we’ll continue to track the economy, interest rates, flood insurance, health care costs, and any other issues that impact buyers purchasing ability and jobs.

If you’d like to search the MLS, visit www.TopAgent.com and find your place in paradise today before interest rates go up.  Good luck and Happy House Hunting!

If you’d like to search the market as either a buyer or seller, visit www.Topagent.com If you need extra help we’re always available to talk to you and help you make better decisions. Our phone number is 239-489-4042 Good luck and Happy House Hunting!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

We’ve been waiting on inventory levels to rise so that sales can pick up and as is traditional for this time of year, the market has responded. Single family home inventory rose over 400 units from September. Last year inventory rose almost 300 units in October.

Listing Inventory on the Rise Fort Myers Cape Coral

Listing Inventory on the Rise

Inventory levels peaked this January and then began to fall as we outsold inventory as it came to the market. Hopefully our inventory will continue to increase heading into season so we have enough to sell this season.

Median prices are up about 12% over last year. In recent years most of our big price gains have occurred February though May, so we’ll be watching to see this year how season affects prices. We expect to see higher prices this season which sets the bar for the rest of the year. In season we tend to have more cash sales which are less affected neither by appraisal issues nor from changes in interest rates.

Fort Myers real estate sold

The economy seems to be improving which could lead to more market strength; however there are some wildcards on the horizon that could temper market gains.

No one knows what affect ObamaCare will have on disposable income. If people end up saving money on the exchanges they’ll have more to spend on other things, which could help the economy and housing. However, if as is being reported insurance costs rise for a great number of people, this could have an adverse affect on the economy and housing. If more of people’s income goes to health insurance then they have less to spend on house payments or other things. If it adversely affects the economy, this slows down people’s disposable income as well.

If employers either drop coverage altogether after 2014, or cut back on full time employees, this could definitively adversely impact the real estate market. It would also affect the stock market, business, and the economy as well.

Interest rates are set to rise at some point as the government phases out buying treasuries to keep interest rates low in a down economy. The Fed’s have signaled the will end this buyback soon, and the question is simply a matter of when and how they will taper.

If the economy takes off perhaps it can weather these two wildcards. People think the real estate market is either set by Realtors or happens in a vacuum, but the reality is it is influenced by many market forces and Realtors have little to do with prices. Realtors simply help buyers and sellers interpret the market based upon facts and data, and ultimately buyers and sellers make decisions about what they buy and sell.

It’s kind of like walking into a store. If a product presents as a good value, buyers will purchase. If a product is inferior or over-priced, buyers will walk. Buyers today shop many stores and look things up on the Internet. A Realtor or seller can’t just set a price and expect the market to respond. It has to be based off of data and logic.

If you’d like to search the market as either a buyer or seller, visit www.Topagent.com If you need extra help we’re always available to talk to you and help you make better decisions. Our phone number is 239-489-4042 Good luck and Happy House Hunting!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

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Last week we reported that home prices were down the past few months but not to get too concerned as they were expected. This week we provide a graph that illustrate median home prices and average mean home prices so you can see what we’re talking about. What Price Ranges are Hot?

What Price Ranges are Hot Median and Average Fort Myers Cape Coral Florida home sales

Each year our home prices increase in season because we have more affluent buyers here purchasing more higher end properties than we do other parts of the year, and this pulls the averages up and sets the tone for the year. When we have bad seasons we really have to watch the summer months to spot any meaningful trends. Last season was another good one, so we’ve had a few good ones in a row,

It’s not unusual for prices to retreat after the season, so we look at year over year prices out of season and we see prices are still up over last year by the same percentages as they were in season, so we’re fine.

Now let’s delve into which price ranges are hot. As you can see from the price range chart, the $400,000 $599,999 range is the hottest with a 82.5% gain. This is not only true for the July 2013 data but also many months prior, so we can definitely say the $400-600k range is doing well. Really all the price ranges except for maybe the $300,000-$399,999 range is doing particularly well. This could be for the same reasons the less than $100,000 range isn’t doing well. We have little to no inventory anymore at the lower price range. They’ve graduated up, so those same sales are occurring in the higher ranges. It’s entirely possible many of the $300k+ range homes have graduated into the $400k= range and thus more homes are selling in that range.

Fort Myers real estate sales by price range Cape Coral

I tend to think some of that is possible, but more likely we’re seeing strength at the bottom of the market and the upper middle of the market as those that can afford $400-600k either have local businesses on the mend in SW Florida or they are out of town buyers buying second home and retirement homes.

We are also seeing some relocations coming into the market and buying property, although companies like Hertz are recognizing that fewer existing employees took the relocation offer and instead their recruiting and hiring more outside employees to take jobs here in SW Florida.

Hertz will hire some locally, however many are coming here and being recruited from other companies with certain specialty education and job history in the field. It doesn’t really change how many people Hertz brings in but it does change from where they bring them. Less of these employees coming to Hertz are actually from Hertz.

Last November we started seeing spikes in the average sale price in Lee County Florida and it wasn’t until February of 2013 before we saw significant price swings here in SW Florida, so we may have a few months more to go before we start seeing if a new price trend emerges for next year. Inventory is still tight, so with any economic luck we’ll be in for another good season, assuming we have enough inventory to sell this upcoming season. Feel free to search the MLS at TopAgent.com. Good luck and Happy House Hunting!!!

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Yes, we said it, and don’t be alarmed as we’ve said for months we wouldn’t be surprised to see prices pull back a bit due to seasonality.  Median sale prices are still up 20.7% over last year.  As you can see from the single family homes median price chart, most of our gains occur in season January through April.  That’s because more of the expensive homes sell that time of year pulling the median price up. SW Florida Sale Prices Retreat.

SW Florida Sale Prices Retreat

We’re still receiving multiple offers on many properties and inventory is as low as ever.  Last year there were 5,668 active homes on the market and this year there is only 4,924.  Closed sales are up 6.8% over last year and they’d be much higher if we had more inventory to sell.

Cash sales accounted for 51.7% of all single family home MLS sales which is really helping with appraisals.  In a rising market it’s sometimes difficult on appraisers because they’re using comparable sales from the past even though the market is rising now.  Cash sales typically aren’t subject to appraisal, so as they close they provide fresh new sales data that is sometimes more indicative of the market.

In July 1,466 new listings came on the market.  Some of these aren’t actually new listings as they could have been withdrawn or expired and re-listed.  July also saw 1,149 listings go pending, so approximately 78.4% of the new listings went pending.  In reality it wasn’t because some of the pendings would have been on properties listed before July, but it does show that the market is turning over at a high rate.

Average days on market are falling to 49 days now, down from 57 in June and 60 in May.  This is a result of buyers having fewer choices when searching for homes.  Buyers are really surprised when they find out there are only a few homes on the market that match their criteria.

If you’re considering selling now may be a good time to research your options.  Inventory is critically low and we’ve been selling our listing inventory to the point we have few listings left.  We’re selling them as fast as or faster than we can list them.

Just because it’s a seller’s market it isn’t a license to get crazy on pricing.  Prices are going up however we don’t have runaway prices as the overall economy still limits how fast and how far prices will rise.  If we had a great economy prices could be much higher, although we would see more sellers entering the market which would add supply.

Builders are building again which is helping pick up the slack as today’s market just can’t fill the demand.  Buyers are often left scratching their heads wondering how they’re losing homes to other buyers.

If you’re a buyer and you want the house, don’t leave the door open for the seller to entertain other offers.  If you’re offering below asking price and the home is priced fairly, expect that someone else will offer full price or more.  More buyers are losing their first or second choice by leaving the door open.

Price isn’t the only way to make your offer look good to the seller.  Offer friendly terms, larger escrow deposit, and position yourself from strength.  Sellers not only look at price but how likely the buyer is to actually being able to perform.  If your offer is light on down payment, has contingencies, or other outs the seller may question your ability compared to other buyers.

Ask your Realtor to make your offer look good to the seller.  If you need help, feel free to call the Ellis Team.  We’re here to help. 239-489-4042

Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page