Long gone are the days of lowballing in Palm Beach County! We are at at -49% drop of homes on the market in Palm Beach County, from March of last year.
Homes are underpriced on purpose in this market to spurn offers above-asking. Target abobe-asking price is around 15%, meaning that homes are selling for around 15% above asking prices. The number of homes for sale in Palm Beach County is at it’s lowest point in more than 10 years. That’s great news for sellers, however, for buyers, they are bring left out in the cold, battling against cash offers and multiple offers.
Working with a great Realtor to get a high-demand property
Financing – most importantly, the property has to appraise, unless you want to cover the difference in cash. Yes, appraisers are playing nicely, but having recently attended a professional credits course on financing, I have some tips for you.
One of the concerns mentioned during the course was the concern of how rapid the prices are rising. We have a surge of financing in Palm Beach County, and lenders are very cautious of how rapidly these home prices are rising. So appraisers are expected to be more accurate on their pricing.
The last thing they the lender wants is the appraisal review department calling them to ask about comparables and HOW they got to that price. So, of course they are cautious.
Avoid the pressure to lowball. Lowball offers just aren’t cutting it anymore. Sellers know they have the upper hand. If you’re coming in 15% below asking, it’s likely that a cash buyer is coming in 10% below, and you’ve lost. Offer what the home is worth. Now is not the time to scrounge for deals – unfortunately, those days are over.
If financing is not a concern, then look at other factors to determine if the property is overpriced, so you can get the home for a price that’s within your range. The easiest way to do this is to use comparable sales.
Also, don’t be afraid to give some things up. Buyers are having a hard time being picky these days. In a seller’s market, the seller holds the cards. For every seller, there are four or five qualified buyers, so the seller has little incentive to get tied up into a sales contract with you if you are making unreasonable demands.
And my best advice for getting the home you love, that high-demand property with multiple offers?
Hire an excellent Realtor who knows that they are doing in this market!
Call 561-500-LIST (5478) to speak with a Copeland & Co. Realtor today!