The most common question we get from buyers is what should I offer on this home? The most common question we get from sellers is what price do you think I should list my home for? In May, 55% of Florida homes sold above asking price.
In some price ranges as many as 70% are selling above asking price in Florida. Even the luxury market saw as much as 40% selling over asking price in May. The numbers are rising. As you can tell by the graph, there is about a 20% gain in percentage of Florida homes sold above asking price. Those numbers are progressively growing each month. This means the market is still gaining momentum.
The numbers are telling buyers that if they want to score a home, they cannot mess around. This is not the market to negotiate or nickel and dime a seller. The sellers have the upper hand. Ignoring reality will be a big waste of time.
Top Agents Leave a Blueprint for Buyers
As a top listing agent, we see many offers on our listings. We give clear instructions on what the seller is looking for and the kinds of things we will be evaluating. When the offers come piling in, it is almost as if the buyer agents did not read any of the instructions. These instructions provide a blueprint for writing a competitive offer. Unfortunately for these buyers, they will probably miss out because their offer is not competitive.
An offer is judged by how well it is written. A buyer’s ability to close is judged not only by the financial terms, but the language in the contract. We have talked about how relationships matter in this market. They absolutely do, and so does the competency of the language in the contract.
If the offer is written sloppily, it is fair to assume that is how the whole transaction is going to go. If a buyer’s agent does not understand the contract, how are they going to counsel their buyer. A purchase agreement is like a test. It is a snapshot. The offer tells a story. If the story is sloppy, ambiguous, and does not add up, a top listing agent will sniff that out and the deal will likely go to a better offer.
Best Means Most Likely to Close Near Top End of Value
You have heard of the term Highest and Best. Highest means highest price, but best to me means most favorable terms and most likely to close. Best equals confidence. Am I as the listing agent confident this deal will close?
For instance, it does no good for an FHA buyer to offer above list price with minimal down just to win the bid. If the buyer cannot cover an appraisal deficiency, they are just trying to score the deal on price alone. The listing agent should know the price will get kicked back down to appraisal value, which is not always actual value.
Why not take the best offer upfront? Experience matters! Experience matters when you hire a listing agent, and it matters when you hire a buyer’s agent.
For a seller, taking the wrong offer can cost you tens of thousands of dollars. Many sellers sell their home 3-4 times because they take the wrong offer.
For a buyer, writing the wrong offer will cost you a sale. There are buyers out there that have lost out on 30+ offers, and you must wonder if they wrote a better offer if they might have scored one of those deals.
Strategy Session Important for Buyers
Our team has a buyer consultation with each buyer followed by a strategy session. We educate our buyers on how to score a home, and it is not just on price. We have our ducks in a row. Our offers make sense, and they often get accepted.
If you want a Top agent to sell your home, call Brett or Sande at 239-310-6500 or visit www.SWFLhomevalues.com to get an instant home value of your home.
If you are looking to buy in this market, call one of our buyer agents at 239-489-4042 or visit www.LeeCountyOnline.com.
Experience matters. Call the Best, expect the best!
See latest home price data “Southwest Florida Home Sales Prices Rise Whopping 38.7% in May“
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