Combating Low Inventory, Writing Strong Offers, and Cash vs. Financing
The Challenges of Low Inventory
In today’s real estate market, the inventory of available homes in Ponte Vedra Beach and Northeast Florida housing inventory is extremely low. Having a team of Ponte Vedra real estate agents like ours working for you has many advantages. For example, we have great connections with other agents, and a huge sphere of clients, both of which are helpful when trying to make connections between buyers and sellers.
With the short supply of available homes, finding the right house can be challenging. Our team often knows of homes coming on the market and that inside edge gives our buyers an advantage. We can also reach out to homeowners who have a specific style or size of home and inquire about their desire to sell – creating inventory for our buyers.
Right now, homes are selling quickly, sometimes going under contract immediately after being listed. When the market is moving this fast, being an out-of-town buyer can be challenging. Since it’s important for buyers to see homes they’re interested in quickly, we accommodate virtual showings through Facetime and Zoom. We also preview homes for our non-local buyers and make sure they stay up-to-date on any new listings.
The Importance of a Strong Offer
Success in real estate is based on strong relationships. Over the years, our team has built a reputation for integrity and being trustworthy with other agents. Other Realtors know our offers are well written, our buyers are qualified and we are familiar with the selling process. Having a strong reputation with other local agents definitely gives our buyers the edge, especially in situations where there are multiple offers on one property.
An important component of a strong offer is a pre-approval letter. We work with several local lenders who can provide a same-day letter demonstrating our buyer is qualified to purchase the house. A pre-approval letter strengthens the buyer's offer and gives the seller confidence the buyer is qualified for the purchase. When our buyers are paying cash, we ask for a letter from a financial institution, also called a proof of funds.
Strategies for Writing a Strong Offer
When a buyer is purchasing with cash, the risks to the seller are reduced. In today’s supercharged market, buyers who are using a mortgage are often losing the house to a cash buyer. There are some strategies buyers using financing can use to strengthen their offer.
First, buyers might consider waiving the appraisal contingency. Since prices are moving up so rapidly, oftentimes the appraised value is below the agreed-upon offer price. If the buyer waives the appraisal contingency, they are stating they would be willing to bring additional cash to closing to “make up the difference” between the offer price and the appraised price.
Another strategy is to write an “as is” offer, meaning the buyer does not anticipate asking the seller to make any repairs to the home. Submitting an “as is' ' offer does NOT mean the buyer gives up the right to conduct an inspection AND if an unexpected issue is discovered during the inspection process, the buyer has the opportunity to renegotiate the terms of the contract or withdraw their offer.
Need help buying or selling your home?
If you are new to the area and have questions, please don’t hesitate to get in touch. We would be glad to help.
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