It's a hot seller's market, not just in Miami but all over the country. And not just your regular seller's market, but the most aggressive I've seen in my real estate career. Simple micro-economics factors determine what type of real estate market we are in: very low inventory, very high demand >>> full-blown seller's market where bidding wars are common and buyers need to be ready to battle.
Just yesterday, some news went viral where a home outside of DC received 88 offers, 76 of which were cash and sold $200,000 above asking. That's not just crazy but can also be disheartening to many buyers that are losing bid after bid and cannot get into a new home.
But what exactly does this mean if you are a buyer in today's market? What do you have to do differently in order to have a chance at winning a bidding war?
1. It's not enough to get pre-approved in this market. You better make sure you speak to your lender and strengthen your pre-approval. Sometimes a lender can provide a stronger approval like a DU (desktop underwriting). And if you really trust your lender, you can even place a cash offer and still get a loan but know this is a dangerous game and you and your agent need to know what you are doing.
2. Consider waiving contingencies - not just financing but even inspections and appraisal contingency. Again, this is risky but may make the difference.
3. This is the time for you to be flexible with wants and needs. You may not get your perfect dream home and will need to reassess what's important to you.
4. Time frames - forget your regular 30-45 day closings, we are seeing 15 day closings but it's key to check with lender and title company to make sure title searches and loan commitment deadlines are met.
5. Tuck emotions away. This is tough because real estate is emotional, but this is the time to work with a real estate professional that will be a true guide.
6. Work with an astute REALTOR that knows what they are doing. The real estate industry is about relationships and this is when it counts. A buyer's agent that can ask the right questions and create the right strategy for you is key - from escalation clauses, to knowing how the other agent negotiates, and even knowing when a property will go on the market before it hits the MLS.
We are in an incredibly fast-paced housing market, it’s essential to be a competitive homebuyer, but it's even more essential to work with a real estate agent that has your back. Contact the Miamism Sales Team to see how we can help.