It seems like it was only 6 months ago, when buyers still had ultimate power when it came to a real estate residential transaction in Parkland and the rest of South Florida. Well, now it’s advantage sellers! Finally, sellers are taking back some of the power when it comes to real estate negotiations due to the decrease in available home inventory and record low mortgage interest rates. Now, sellers’ real estate listing agents have more leverage when helping to negotiate not only the highest prices for the sales but also the best contract terms in order to achieve the smoothest transactions for their clients. I was quoted in the Sun-Sentinel’s recent article, South Florida home sellers driving hard bargains, where I stated that I am “asking for blood” from potential buyers and buyers’ agents.
When I list a home that I know will draw a lot of interest and multiple offers, I make sure to advise my sellers that I will use my expert negotiating skills in order to get them the best prices and terms. For example, in the Sentinel article, I recently listed a single family home in Coral Springs, Florida which resulted in multiple offers. I was able to get many buyers to pay above asking price and even waive their appraisal contingency. I even was able to tighten up the time frame for inspections, appraisals, and the loan commitment from the mortgage professional, who I also made sure to speak with in order to know for sure that loan process would go very smoothly with the buyer’s exceptional qualification.
The important things that I asked the buyers to do was the following:
More money in escrow – I ask for buyers to put more money down in escrow. As a result, the buyer has “more skin in the game.” With more money in escrow from the buyer, they will be less likely to walk away from the deal, and it shows their true motivation to buy the home. The larger the escrow deposit (I try to get 5-10% of the purchase price at a minimum), the less likely the buyer will back out of the deal.
Short inspection periods and quick closings – On typical purchase agreements, the buyers ask for 15 days from the time of contract acceptance to perform their inspections on the home. But, in today’s market, I ask for 5-7 days for the inspection in order to get the inspection done quickly in order to move to the next phase of the purchase. I like to tighten all dates including the inspection, appraisal, and loan commitment period. The faster the buyer, and their lender, can get the inspection and loan completed, the faster the sellers will know that they have a firm deal.
Upgraded financing – Federal Housing Administration (FHA) loans are popular financing options for potential buyers as they only require buyers to put 3.5% of the purchase price out of their pockets for the loans. But, FHA loan have more requirements and sometimes their stringent terms can pose problems for sellers during the loan process, especially for the appraisal.
Waiver of the appraisal contingency – If the buyers truly love the homes and do not want to loose the house to another aggressive buyer, then it may be best for the sellers to ask the buyers to waive their appraisal contingency and pay the difference between the appraisal price and the agreed-upon sales price. Or, you can ask the buyers to agree to pay a certain amount of money above appraised value. As a result, again, we are looking to have the buyers “put more skin in the game” and show their true motivation. In the Sun-Sentinel article, the buyers of my listing did agree to waive their appraisal contingency entirely.
In today’s market, it is essential to align yourself with an expert, local real estate professional who will market your home to the masses and create a buzz on your home. It is also very important to hire a Realtor who has these exact expert negotiating skills to get you the best price and terms. There is no worse feeling then finding out your real estate deal feel apart a week or so before closing because your Realtor did not do his/her job! Make sure to hire the best Realtor for the job of selling your home.
My team and I have sold over 35 homes in the past year and are top 1% Nationwide Realtors. We would love the opportunity to show you our unique marketing plan and comparative market analysis. Please give us a call today at: 954-609-0591. We look forward to earning your business and trust. To read the full Sentinel article that Real Estate Agent Michael Citron was featured in, please click: South Florida home sellers driving hard bargains
I am a Parkland real estate specialist and Parkland resident. Over the past few years, I have earned the distinction of being one of the top real estate selling and buying agents in the City of Parkland and in West Broward County and a top 1% Nationwide Realtor. If you would like to schedule a buyer or seller meeting with me, please feel free to call me directly at 954-609-0591 or send me a note here.
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