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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4 EASY WAYS TO INCREASE THE VALUE OF YOUR HOME

April 14, 2021

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Posted by in News

Increasing the value of your home is ALWAYS a good idea. Staying on top of home maintenance and projects will ultimately allow you to get top dollar for your home when the time is right for you to sell. “Homebuyers will appreciate that you took good care of the home and will happily pay more for a home when they don’t have to make major changes themselves,” shares Davidson Realty President, Sherry Davidson. 

 

Curb Appeal

First impressions are important! Continually spending time on your landscaping and the outward appearance of your home will enhance your curb appeal. Luckily, yard care is relatively inexpensive and depending on the current state of your yard, could be tackled simply with fresh mulch or a few new flower beds. Walkway lighting is another easy and affordable way to elevate your curb appeal while providing a functional illuminated path to safely use your walkway at night. Additionally, routinely walk around the exterior of your home and look for any cracks or damage that needs repair. 

 

Fresh Paint

A fresh coat of paint can truly transform a home. Whether you are interested in selling your home this year or in ten years, routinely examining and updating the interior can make your home more attractive to potential buyers. When selecting a paint color that will appeal to an extensive audience, pale gray, oatmeal, and other cool, natural tones are current fan favorites because of their adaptable nature and ability to enlarge and brighten spaces. Some of our favorite paint colors include Snowbound and Passive from Sherwin Williams. 

 

Energy Savings 

Energy-efficient upgrades not only help the environment but save homeowners money and time by requiring less maintenance. Consider switching to energy-efficient light bulbs or installing a smart thermostat that will learn your preferences and automatically adjust the temperature to save energy. Adding more insulation is another way to improve energy efficiency in your home. Good insulation will keep your home warm in the winter and cool in the summer while using less energy. 

 

Cosmetic Touch-Ups 

If you make repairs and improvements as needed, you will avoid bigger, more expensive projects and ensure your home is well maintained. “Your home is one of your most expensive assets. When buyers see items that need to be repaired or maintained, they question if the home has been well cared for. Buyers will pay retail versus wholesale prices for an updated and well-maintained home,” shares Sherry.  Patching up holes and dents in walls or moldings, fixing a squeaky door, or repairing a running toilet are easy DIY repairs that will refresh your home.  Replacing the hardware in your kitchen or updating ceiling fans or light fixtures are small updates that will make a HUGE impact. 

 

If you are interested in learning more about the value of your home or are interested in selling your home, trust the real estate experts at Davidson Realty.

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The Home Searching Process and Top 10 Mistakes Buyers Make by Realtor Loreal Greathouse

April 20, 2015

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Posted by in News

Now that you’ve been preapproved and found a great Realtor, it’s time to start shopping for a home! Of course in this day and age it’s not surprising to hear that over 90% of home buyers start their search online. With so many real estate websites it’s easy to stay up late at night searching for your dream home. Be aware though, many of those sites take 24-48 hours or longer to update the status of the home. The best place to find up to date listings is through your Realtor. Ask your Realtor to set you up on a daily automated email, so any new listings come right to you the day they are posted. Read more

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