So how can you stand out from the crowd and increase your chances of getting your offer accepted?
One strategy is to offer over the asking price from the start.
Here are five good reasons why this may be a smart move in today’s market.
5 Reasons to Bid Over Asking Price
Low inventory: As briefly stated above, competition for houses right now is fierce, despite the higher interest rates and inflation.
The most recent report from Existing Home Sales shows that the existing inventory of available homes is very low – less than 1 million homes – and some of these are already under contract!
And this inventory issue is not going to improve for two main reasons:
First, as inflation trends slow and interest rates start to come back down, there will be more people able to buy.
Second, in general, the U.S. population is increasing by leaps and bounds. And if you are thinking about buying a home in Florida, then you know our population is on a constant growth trajectory.
There are more buyers every day with fewer available homes. Competition is only going to get tougher. You have to bid over asking price out of the gate to set yourself apart from the competition.
Avoid a bidding war. A bidding war is when two or more buyers compete for the same property by raising their offers until one of them wins. Bidding wars can drive up the price of a home and cause a lot of stress and uncertainty for buyers.
By offering over the asking price from the start, you show the seller that you are serious and motivated, and that you are willing to pay a premium for their home.
This may convince them to accept your offer right away, or at least give you priority over other buyers.
Show your love for the home. Sometimes, sellers are motivated by emotion and not just money. They may have a sentimental attachment to their home and want to sell it to someone who will appreciate it and take good care of it.
By offering over the asking price, you demonstrate that you love and highly value their home. This may appeal to the seller’s emotions and make them favor you over other buyers.
Compensate for a lower appraisal. An appraisal is an estimate of the home’s value by a professional appraiser. It is usually required by lenders to ensure that they are not lending more money than the home is worth.
However, in a hot market, appraisals may not keep up with the rising prices and may come in lower than the agreed-upon sale price. This can create a problem for buyers who need a mortgage, as they may have to come up with extra cash to cover the difference or renegotiate with the seller.
By bidding over the asking price, you can anticipate this scenario and show the seller that you are prepared to pay more than the appraised value if necessary.
Potentially beat cash offers. Cash offers are offers that do not depend on financing from a lender.
Cash offers are attractive to sellers because they eliminate the risk of financing falling through and speed up the closing process. However, cash offers are not always the highest, and they may not reflect the true market value of the home.
By offering over the asking price, you can compete with cash offers and show the seller that you are willing to pay more than what cash buyers are offering.
Of course, offering over the asking price is not always the best strategy for every buyer and every situation. You should always consult with your real estate agent and your lender before making an offer, and stick to your budget and your goals.
At Gulfside Mortgage Services in Venice, FL, we are available to help you navigate this process and develop a strategy that will work for you or your clients.
Why You Should Not Wait to Buy
Despite higher interest rates and inflation, if you are teetering on the fence – STOP. Now is the time to buy in Venice, Florida and not wait for a few very good reasons:
Historical data shows that housing prices will not go back down but will continue to increase. Stop hoping that you can get a house you love for less than current prices.
As explained above, inventory will not get better, so stop waiting for that.
Interest rates, however, will get better, at which time you can refinance. Go after your dream house now before it goes up in price and out of your range. You can refinance later for a better interest rate.
In a landmark move aimed at addressing housing affordability and accessibility issues, Florida Governor Ron DeSantis has signed Senate Bill 102 into law. Known as the Live Local Act, this legislation is set to profoundly impact new home buyers in Florida. With an impressive allocation of $711 million toward housing programs, this bill signifies a firm commitment from the Florida government to provide support and opportunities for individuals and families in search of their dream homes.
Increasing Housing Affordability and Accessibility
The Live Local Act is a groundbreaking measure designed to make housing more affordable and accessible for residents of Florida. By earmarking a significant amount of funding, this legislation addresses home buyers’ challenges in a market where prices have steadily risen. Providing financial assistance can make a substantial difference in housing affordability, particularly for those with limited resources.
Tax Incentives for Developers
One of the most exciting aspects of the Live Local Act is the introduction of significant tax breaks for developers. By offering these incentives, the government encourages developers to invest in creating new housing projects in the region, including Venice. This approach is expected to stimulate the construction of additional housing units, effectively increasing the supply in the market.
The Impact on Home Buyers
The signing of Senate Bill 102 brings many benefits for new home buyers in Florida. Let’s explore some of how this legislation is poised to make a positive impact:
Increased Housing Options
With the influx of funding and incentives for developers, the Live Local Act is expected to increase housing options for prospective buyers. The construction of new housing projects will provide a broader range of choices, allowing buyers to find properties that suit their needs, preferences, and budgets.
Potential Financial Incentives
The tax breaks offered to developers under the Live Local Act have the potential to trickle down to home buyers. As developers benefit from reduced tax burdens, they may pass on some savings to buyers through more competitive pricing or attractive financing options. This can significantly enhance the affordability of homes in Venice, making it easier for individuals and families to realize their dreams of homeownership.
Government Commitment to Housing Affordability
The signing of Senate Bill 102 showcases the Florida government’s dedication to addressing housing affordability issues and promoting homeownership opportunities. By proactively taking steps to increase the housing supply and provide financial incentives to developers, the government is actively working towards creating a favorable environment for both buyers and sellers.
The Live Local Act, signed into law by Governor Ron DeSantis, represents a monumental step towards improving housing affordability and accessibility for new home buyers in Florida. With its substantial funding allocation and tax incentives for developers, this legislation is poised to make a significant impact on the local housing market. As a result, prospective buyers can look forward to a broader range of housing options and potential financial incentives to help them secure their dream homes.
Gulfside Mortgage Services was established by Laura Dorsey & Doug Bolling and opened on April 1st, 2003 with approximately 10 team members. They eventually grew and added two more branches one in North Port and one in Lakewood Ranch. Michelle Moore was the Manager of the North Port location and Tony Moore was the manager of the Lakewood Ranch location with over 30 team members combined with all three locations. After the great recession in 2007-2009 Doug & Laura had to make some tough decisions and closed both the North Port and Lakewood Ranch locations and kept only the Venice location open and had to downsize to approximately a 10-person team.Tony and Michelle became the best of friends in this journey and in 2007 they fell in love while on a cruise for Doug Bolling’s 50th birthday!In 2010 Doug and Laura had come to Tony and Michelle and presented them with a great opportunity and on December 10, 2010, Tony and Michelle officially took over Gulfside Mortgage Services. When they took over, they had to make many changes including downsizing to just 3 team members that included Tony and Michelle. They decided to go to Las Vegas for a big coaching conference and they signed up for coaching within 1 year they grew to about 15 team members! Over the last 12 years, Gulfside Mortgage Services had about 27 team members but with the market shift this year, they had to make some tough decisions and downsize, and currently have 15 team members. To have more opportunities to help more families, they recently have also obtained licenses in 3 additional states! So, now they are licensed in Florida, Ohio, Kentucky, and Indiana!Tony and Michelle are the sole individuals at Gulfside Mortgage Services who have been present since its establishment on 04/01/2003, and they take immense pride in that fact. Despite various tumultuous events over the years, they prefer not to delve into them.Sometimes, people may question what drives Loan Originators to do their job. This is a common sentiment shared not only by the writer but by many MLOs as well. What often goes unnoticed is that 70% of their 40-to-50-hour work week is not compensated. To be clear, this is not untrue. While this topic could be discussed for hours, the reason Tony and Michelle persist is due to the indescribable satisfaction they get from helping a first-time home buyer. The gratitude received from these individuals is unparalleled and it serves as a reminder of their mission. Similarly, when a borrower wants to refinance, the feeling they get when they can save hundreds or even thousands of dollars monthly is incredible. The weight is lifted from the borrower’s chest, giving them the ability to either relax or invest more in their future. It’s difficult to put into words – but the joy experienced from making a positive impact in their lives is addicting, and it motivates Tony, Michelle, and all their team at Gulfside Mortgage Services, to help more people.
Buying a home is an exciting process, but it can also be intimidating. One of the most important steps in the process is obtaining a mortgage loan, which requires navigating complex calculations and paperwork. Fortunately, having the help of a professional mortgage lender can make this daunting task much easier. Here’s how working with a mortgage lender can ease the home-buying process.
Understanding Your Financial Situation
A mortgage lender will work with you to understand your financial situation and determine what kind of loan you qualify for. This includes looking at factors such as your credit score, income, debt-to-income ratios, and current financial obligations. The lender can then help you choose the best type of loan for your needs, such as fixed or adjustable rate mortgages or government-backed loans like VA, FHA or USDA loans. Furthermore, they will provide guidance on how much house you can afford based on your individual financial situation.
Organizing Paperwork
The paperwork involved in applying for a mortgage loan can be overwhelming—especially if you’re not familiar with the process or have never done it before. That’s why working with a mortgage lender makes good sense; they are experienced in dealing with all kinds of documents related to mortgages and can help put together everything from tax returns to pay stubs to credit reports so that your application is accurate and complete. They will also review the paperwork for accuracy and completeness before submitting it to ensure that nothing is missing or incorrect, helping speed up the approval process.
Securing Financing
Once your application has been approved by the lender and all necessary documents have been submitted, it’s time to secure financing for your new home purchase. A mortgage lender will work closely with you throughout this step of the process as well; they will review all available options so that you get the best terms possible on your loan—including competitive interest rates and favorable repayment terms—and guide you through signing any necessary contracts or agreements associated with the loan.
Giving Peace of Mind
Other than offering competitive loan products, mortgage lenders also provide other types of security. Many lenders will offer protection against things like job loss or disability, which can help relieve some of the stress associated with paying a mortgage every month. Additionally, many lenders will also carry insurance in case something happens and you’re unable to make payments on your loan. This coverage is often included in most loans so you can rest easy knowing there is someone else looking out for your best interests should something happen.
Mortgage lenders also provide ongoing support throughout the life of the loan as well. They often provide helpful advice regarding managing money and credit as well as providing resources such as budgeting tools or even counseling services if needed. If a borrower is ever behind on their payments or facing foreclosure due to a financial hardship, many lenders will work out repayment plans or even loan modifications which can help avoid foreclosure altogether and give borrowers more flexibility when it comes to managing their finances effectively.
Working with a professional mortgage lender can make buying a home easier by providing guidance throughout each step of the process—from understanding your financial situation to securing financing for your new home purchase. If you’re considering buying property soon, partnering with an experienced mortgage lender like Gulfside is one of the smartest decisions you could make!
Buying a home is one of the biggest and most exciting financial decisions you’ll make in your life, so it’s important to be choosy when selecting a mortgage company. While there are many lenders to choose from, not all of them are created equal. Choosing the right mortgage company can be the difference between a smooth and successful buying experience, or one filled with stress and delays. Let’s take a closer look at how to find the right lender for you.
Do Your Research
Doing your research is key to finding the right mortgage company. Start by investigating reviews online and asking friends and family for referrals. Once you’ve narrowed down your list, ask potential lenders about their rates, terms, fees, and loan types available. Ask about their experience in working with programs like FHA or VA loans as well as conventional loans if that applies to your situation. Also inquire about any additional services or advice they provide such as debt consolidation or credit counseling services if needed.
Check Their Reputation & License
Checking the credentials of potential lenders is an important step in the process before making a decision. Make sure the company has undergone background checks and licensing requirements, which should be easily accessible online or through state agencies. Also, find out if there are any complaints against them or if they are accredited by any organizations such as Better Business Bureau (BBB).
Personalized Service
Finally, when it comes time to pick your mortgage lender, it’s best to go with someone who provides personalized service specific to your needs rather than just going with the lowest rate or most convenient option available. A good mortgage professional will take the time to get to know you and understand what you are looking for in terms of financing options and services. In addition, they should be able to provide helpful advice tailored specifically for your situation without pressuring or pushing you into anything that isn’t right for you.
Be Open & Honest With Your Lender
Choosing a reputable lender is just one part of getting approved for a mortgage loan; being open and honest with your lender is essential too. This means providing all necessary documents up front such as tax returns, pay stubs, bank statements, W-2s etc., so that your lender can get an accurate picture of your financial situation when considering you for approval on a loan request. Providing this information upfront helps lenders assess whether you can afford the home you’re interested in buying so that they can approve or deny your application quickly and efficiently.
Choosing the right mortgage company can be daunting but understanding what options are out there and doing some research beforehand can help ensure that you get the best rate possible on your loan while also receiving exceptional customer service throughout the process from start to finish! An experienced real estate professional can also be a great resource when looking for reliable lenders who will work hard on behalf of their customers to get them approved quickly without sacrificing quality of service along the way!
