Davidson Realty, Inc.

Best Strategies to Win a Bidding War

June 2, 2022

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Posted by in News, Northeast Florida Market Trends

When buying a home in today’s real estate market, be prepared to pull out every weapon in your arsenal. Most agents are dusting off strategies and techniques they haven’t used since the early 2000s to compete in this competitive seller’s market. “Homes are selling fast and for thousands over list price. Homebuyers need to be ready to move quickly and aggressively when they find a home they love,” shares Davidson Realty President, Sherry Davidson. 

 

Putting together an offer to sellers? Make it strong! With only a month’s worth of inventory up for sale, more and more buyers are making all-cash offers. Cash sales are attractive because the seller has seemingly no risk of financing problems and they save time with the elimination of the underwriting process. 

 

Opt for a shorter inspection period or no inspection. Make an estimate of how much necessary improvements will cost and consider them in your offer. For newer homes, waiving the inspection could be a valid tactic, but the buyer must truly understand and be comfortable with it as it could be extremely risky. 

 

Allowing the seller to rent back the home for a short time is another way to appeal to the seller’s needs. If the seller needs time to find or move into their next home, the buyer can allow the seller to stay for a set period of time and pay rent, usually the mortgage payment, or stay rent-free as the buyer would begin paying the mortgage. Being flexible could be what helps you win a bidding war!

 

Waive the appraisal contingency. The appraisal contingency allows a buyer to get out of a pending sale if the appraised market value of the home is less than the agreed upon contract price. If the contingency is waived, the buyer agrees to pay the difference between what the bank is willing to lend on the appraised value and the contract price. Waiving the appraisal contingency is clearly an attractive strategy, however, the buyer needs to be aware of the risk. 

 

A tool many agents are recommending to buyers to win bidding wars is an escalation or escalator clause which states the buyer will pay a certain amount above the highest bid. This clause makes the offer more attractive because it guarantees it will beat the highest bid. Usually, a limit is set on the clause to avoid the buyer overspending.

 

Footing the bill for closing costs and paying the commission for both sides of the transaction is another way to sweeten the deal for the seller. Additionally, writing a “love” letter could appeal to the emotions of the seller. Trusting your agent to help you select the strategies that work best for your situation is key. 

 

In this real estate market, be ready and act fast! For expert advice on strategies to catch the seller’s attention and put your offer at the top of the list, contact Davidson Realty today at (904) 940-5000. 

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4 Ways to Sweeten the Deal When Buying a Home

May 5, 2021

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Posted by in News, Northeast Florida Market Trends

The real estate market is unlike anything we’ve seen before. Inventory is low, demand is high, and homes are flying off the market! “With the current market conditions, listings are receiving multiple offers and buyers need to be ready to act fast with their best offer when they see a listing they love,” shares Davidson Realty President, Sherry Davidson. In such an intensely competitive market, trust the real estate experts at Davidson Realty to help you put your best foot forward with these strategies. 

 

Get Pre-Approved for a Mortgage

The first thing you should do when you decide to purchase a home is obtain a pre-approval letter. A pre-approval letter not only states what a lender is willing to lend to you but shows the seller you are serious and prepared to purchase a home. A pre-approval letter shows legitimacy and a sign of good faith that they can afford to buy the home. Sellers are more likely to select an offer that is pre-approved than one that is not. 

 

Eliminate Contingencies

A clean offer is extremely attractive to sellers. “Any contingencies you have in your offer could be a negative to the seller. Sellers want a low risk and speedy closing,” shares Sherry. Appraisals are often a major cause of home sales falling through. Eliminating this step allows for a smooth sale process with minimal chance of things going wrong. As the buyer, you are effectively taking the risk off the home seller and putting it on to yourself. 

 

Make an All-Cash Offer

All-Cash offers provide the unique opportunity of keeping the sale primarily between the buyer and the seller. Cash offers tend to be stronger than offers utilizing traditional financing because they are less risky for the seller. With a cash sale, no appraisal is necessary since there is no mortgage lender involved. The absence of a mortgage lender also allows for a quicker closing. A fast timeline is advantageous for sellers because the sooner they close, the sooner they get paid.  

 

Be Flexible

Including a flexible timeline in your offer can go a long way with sellers. Depending on the sellers’ situation they may need more or less time in the home than the traditional 30-day closing period. If you are not in a hurry to move, being as adaptable as possible will be to your advantage as the sellers will then be able to decide what works best for them. This can go a long way, especially if competing offers come with strict deadlines. 

 

If you are ready to begin the search for your next home, call Davidson Realty today to help you get started. 

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First-Time Homebuyer? Call Davidson Realty. 

March 12, 2021

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Posted by in News, Northeast Florida Market Trends

Life is full of firsts. First car. First job. First child. First home. They are all memorable milestones that come with time and planning at various stages in life. Each first is unique and special in its own way. If buying your first home is a goal for you this year, Davidson Realty will be there. 

 

Like any first, you rely on the support and experience of friends, family, and industry experts. The same is true when buying a new home, especially with the current state of the real estate market, it is essential that a trusted real estate expert is by your side to help you navigate the process of buying a home. Davidson Realty has a team of real estate experts ready to educate and prepare you for what is to come. Davidson Realty Agents have the support and network that will give you a leg up when searching for your first home and sealing the deal. “With Davidson Realty, you have an ally in your corner and a real estate advisor for life to help and offer suggestions, repair vendors, community resources, and anything you need along your homeowners journey,” shares Davidson Realty President, Sherry Davidson. 

 

Preparation is key in the real estate market. “Buyers have to be ready to make an offer quickly in this market. Establishing a budget, type of loan you will use, how much of a down payment you are prepared for, and how much escrow deposit you have available is critical when you begin looking for a home,” continues Sherry. The state of the real estate market may present some advantages to home buyers as interest rates are some of the lowest seen in years which means lower monthly mortgage payments and bigger home-buying budgets. However, low interest rates have created a fiercely competitive market. “Buyers must be prepared to make aggressive offers within days of the home hitting the market. Sellers are receiving multiple offers often at list price or above. It’s a seller’s market, buyers need to be ready to bring their best offer to the table,” shares Sherry. 

 

With the market this competitive, it’s important to not only know what you can afford but what features and areas you are looking for. Whether you are looking for a starter home or your forever home, spending time deciding what is on your wishlist is critical so when a home that fits your criteria comes on the market you can act quickly. “Davidson Realty’s knowledge of the Northeast Florida communities, builders, schools, and entertainment options are invaluable.  Your Davidson Realtor ®  will take the time to understand the needs of your family and what you need in a home,” continues Sherry.  

 

Whether your first home is your one and only or the first of many, Davidson Realty will be your real estate partner for life. If you are ready to purchase your first home, call the real estate experts at Davidson Realty at (904) 940-5000.

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Joining The Boomerang Boom? How To Know When You’re Ready To Buy (Again)

March 11, 2016

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Posted by in Distressed Properties, News

It’s hard to believe that the American housing market began its rapid decent almost ten years ago. Back in 2007, millions of Americans saw their home values take a dive and many of them found themselves in the midst of foreclosure.

As a result, lots of homeowners turned into renters, relocating to rental houses, condos and apartments as they repaired their credit and waited out the economic recession. Read more

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