We don’t hear the term “bidding wars” in relation to homes for sale as much as we did in the late 1990’s. Back then, Realtors were serving sellers offers on silver platters topped with juicy mortgage prequalification letters; but here in Palm Beach County…bidding wars are making a comeback.
As of this writing, 50% of our transactions are the subject of multiple offers. Great for our local market, yes; but it’s even better for our clients.
Opportunities are only realized in the hands of skillful negotiators. In this market rife with unknowns, curve balls can be thrown at a deal by everyone from an underwriter to an appraiser. The art of the deal is therefore controlled by having a plan and structuring contracts in the client’s best interests:
° Pull all the elements together
° Align them with client goals
° Have every possible document and financial record at the ready
° Anticipate maneuvers
° Know that certain concessions carry monetary value
° Approach the transaction as a project acknowledging multiple timelines and participants
° Stay on task and on schedule
° Remain proactively ahead to work from a position of strength
The individual Realtors and their buyers and sellers who have flourished in this market are the ones who understand that the market dictates the price; but knowing how to win dictates success.
Numbers and their negotiation are everything in real estate. They’ll eventually add up if accurately assessed at the start:
° How realistic are the sellers?
° How unrealistic are the buyers?
° How much will they accept?
° What is the property’s condition?
° How much is allowed for repairs?
° How much can we afford?
° Besides the offer price, what are the terms of the deal? Cash? Can close in 30 days?
° How much do we need to make on this property?
° What is the valuation based on the comps?
° How long do we plan on living here?
Whether you’re a buyer or a seller, a customized strategy and an expert Realtor will make any market work in your favor.