With rising interest rates, high home prices, and low inventory, shopping for your first home in today’s real estate market can be challenging to say the least. We’re seeing some of these unprecedented challenges in the DeLand real estate market as well. With so many people looking to move to DeLand every year, we expect this seller’s market to continue for a while.
However, despite these challenges, we can tell you that buying a home in DeLand is certainly achievable. People from all over the world move to DeLand thanks to its great weather, friendly community, and proximity to some of Florida’s best beaches. All it takes is some patience and guidance from an experienced real estate agent.
If you plan on buying a home in DeLand this year, here are a few things you’ll need to know about shopping in this market:
You’ll Want To Give Yourself Time
When buying a home in today’s market, be prepared for bidding wars. Multiple offer scenarios are the standard, not the exception. You may lose several bids before ultimately landing a home. Buying a home can be an emotional rollercoaster under normal circumstances, but this is especially true today. Don’t try to rush the process. Instead, allow yourself time and try not to get too attached to a single property.
Price Is Important, But There Are Other Factors To Consider
If you know a home has multiple offers and there is a request for “highest and best”, you’ll likely need to make your offer as competitive as possible. Here are some factors to consider when drafting an offer in a bidding war:
- Offer Price – It’s obviously the most important. If you know there are multiple offers, you’ll likely need to offer over asking price. You can also consider an escalation clause (ex: adding an extra $1,000 to the highest offer but capping it at a certain amount). When choosing how much to offer, make sure you don’t exceed your budget. Your real estate agent can help guide you on a competitive offer price.
- Financing – Sellers will evaluate the quality of your financing. Using a reputable lender and putting down as much as possible could make a difference
- Inspection Contingencies – Waiving inspection contingencies is a common strategy in today’s market. Just be careful when doing so, especially if you’re a first-time buyer. Waiving the standard home inspection means you’ll likely lose your earnest money if you decide to back out.
- Earnest Money Deposit – This is the total amount you deposit into an escrow account prior to closing in order to signal to the seller you’re serious about the purchase. If you walk away from the deal for a reason not covered in your contract, the seller will likely keep your earnest deposit.
- Offer A Flexible Closing Date – All sellers operate on different timelines. Some are looking to move quickly, while others want to take their time. By offering a flexible closing you give yourself an advantage.
You Might Need To Get Creative
When all else fails, it might be time to think outside of the box. There are a few creative strategies you might consider. First, tell all your friends, family, and coworkers that you’re house hunting. If you can find somebody who is planning to list their home, you could potentially strike a deal before the home hits the market. You’d benefit by eliminating competition and the seller would benefit by not having to go through the hassle of listing the home.
There are also some other things you can do, such as writing letters to homeowners in your ideal neighborhood. You can let them know that you like their property and ask that they give you a call if they ever decide to sell.
You’ll Need A Good Agent
Nobody can help you navigate the complexities of a hot real estate market quite like a good real estate agent. An experienced agent can help you in multiple ways. First, they can let you know as soon as properties hit the market (so you don’t have to constantly Google search “homes for sale near me”. Then, once you find the right home, your agent can also work with you to create a competitive offer that ultimately beats the competition while negotiating the best terms and pricing. They also provide invaluable guidance on what properties make for great investments and neighborhood qualities. Most good real estate agents also have a network of reputable home inspectors and contractors who can help make your new home purchase a success.
If you’re thinking about buying a home in DeLand, Florida, choose a reputable real estate broker that you can trust. Contact Palmetto Realty today to speak with one of our agents.