Have you been frustrated lately while currently looking for your home? You are not ALONE! Customers, and Realtors are both frustrated. My goal is to help someone find a place to call home. I don’t just want to sell you a house, I want to help find you a HOME. Yes, I get paid when I make a sale, but sales are not enough to keep me in business. My lifeline is word of mouth and fulfilling my customers want’s and need’s.
This hasn’t been easy in this current market. I meet people from all over the country that are moving to Florida, leaving their current housing situation. They have realized that they want more out of life than to just have that corporate job that pays the bill’s. This pandemic definitely put life in prospective for all ages of people. People are wanting to truly live now. Get outdoors, enjoy their friends and family, especially since we have come from such isolation these past 2 or so year’s.
What I see when meeting new people is that they think that moving to Florida will be cheaper and that it shouldn’t be so hard to find a place because where they came from was certainly hugely populated. That used to be true. The reality is that so many people are moving to this great state, that we are in a severe housing deficit. People are leaving their over taxed states and moving to Florida in record numbers. In all honesty, I do not think people have a realistic view on what Florida is and has to offer. They know that we have amazing beaches, that goes without saying, but because they come from such a different environment, what I see is that they think that is has to be better here. The real deal is that home prices are up by 20%. With almost a thousand people moving here each day, we cannot build or nor do we have enough homes available to house this many additional people. We don’t even have the infrastructure to facilitate this many homes.
At this point in this housing market, we don’t have the traditional STARTER homes here anymore. We have livable homes that are pretty much starting in the $400,000.00’s. I don’t know about you, but that is not a starter home buyer price that people think of when buying their first home. The cost for rent has almost doubled and triples if not quadruples during our season, which is from Late December to Easter. The people that live here and work here are having difficulty affording to rent let alone buy a home. This is a true state of supply and demand. Therefore our local businesses are short staffed and having difficulty doing their jobs efficiently and as customers expect.
In a nut shell, if you are thinking of moving to Florida, you must be realistic. Firstly, you must find a Realtor that you trust and believe in. I always tell my customers the truth in their standing. I inform my customers and give them the honest market conditions. If you truly want to buy a home in this area, you must here what your Realtor is telling you. Remember, we want to make a sale, we also want to win offers. Sometimes the truth hurts, but having unrealistic expectations will get you no where fast. Learning what needs to be done in order to get under contract in this demanding market is crucial.
First, you must have proof that you can afford the home you are looking at. This will either entail a proof of funds letter or a pre approval from a mortgage broker or bank. A bank approval is even better.
You must be able to present a strong security deposit. This deposit shows the seller that you are a serious buyer. You have more skin in the game.
The type of loan that you use will effect a sellers decision on which buyer they decide on. There are Conventional loans that require 20% down usually, unless you have excellent credit you can find a bank that has a different option that the norm. FHA is a loan that the government backs. The down payment is usually 3-5% of the purchase price of the home. There are other fee’s too to consider, like closing costs. If all of this sounds foreign to you, I would advise to meet with a mortgage broker and discuss all the options, fee’s and cost’s associated with buying a home. They will be able to figure out how much home you can afford, what you can afford for payments and this includes taxes and insurance for the home and a possible PMI payment. PMI is a mortgage insurance the bank may require if you have not been able to put 20% down payment into the loan that you are taking. Again, best to speak to a professional who only does mortgages all day, every day.
When your Realtor tells you that homes are selling above asking price, believe them. Presenting a low ball offer just will waste your and your Realtors time, just to be told NO. If you want to play the game, you have to believe in your Realtor and trust that she or he has the knowledge to help you get the home you are bidding on, that is if you have the means to do so. That is where you must be realistic. Depending on your own personal financial situation, you will need to look at this logically and understand what is up against you. While, buying a home is an emotional issue for people, while presenting offers, it is safe to say that unless you are pulling out all the punches, you must be able to lose some before you win one. This is not uncommon in this current market and you must not take it personally. You must keep your chin up and persevere forward. What is meant for you will appear, I truly believe that.
I hope this article can help someone and remember that what’s meant to be, will be yours if you go after what you want, just duck and weave and we can and will get through this.
Gulf Coast of Florida Realtor 