Save Time and Money: How to Arrive at the Perfect Florida Home Loan Offer

As you consider an offer for a Florida home loan purchase, there are many issues to consider. For example, should your first be your best? Deciding how much to actually offer a seller for a home you love to own is rarely easy. It’s a balancing act.

How to arrive at the ideal number on your Florida mortgage loan

Arriving at that perfect price is harder in some markets than others. For example, in buyers’ markets - such as most sectors of the current Florida housing market - where there is a lot of inventory, you may find more realistic sellers who understand they need to be flexible if they want to sell.

The first step to arriving at an effective offer price is to find out how much properties similar to the one you’re interested in have been selling for recently. Look at the relationship between the list and sale prices of each listing. Did they sell for more or less than the asking price? How long did it take them to sell? Look at comparable sales around you.

Then ask your Florida real estate agent to talk to the listing agent and find out how much attention the listing is receiving. Are there any other buyers serious about writing offers? If so, you’ll have to offer more than you will if there is no other serious interest.

How much you need to offer to peak the seller’s interest will depend a lot on how long the listing has been on the market. If the listing is weeks old and there are plenty of new listings coming on the market each week, you may be successful with an offer for less than asking. In other words: final Florida home loans are often dependant on the inventory in the area.

Will the seller negotiate?

How much a seller will negotiate usually depends on several factors:

• How long the property has been on the market
• Whether the seller is motivated to be rid of it
• How realistic the seller is about the current value of his home

You can save yourself a lot of time and aggravation by asking your agent to have a heart-to-heart talk with the listing agent before you make an offer, particularly if you intend to offer significantly less than the list price. If the seller is adamant about his price, and there are plenty of other similar listings on the market, devote your energies to a seller who is willing to sell at market value.

Some buyers wonder if they should pay over asking in a strong market that could lose steam over the next year as interest rates rise. If the property will suit your long-term needs, it may be reasonable to pay more on a Florida home mortgage loan than the list price as long as it’s not more than you can afford now and for the long term. You won’t lose money unless you have to sell during a down market.

Good luck. We know the mortgage process can seem overwhelming, but take it step by step and remember that ball is very much in the buyer’s court right now.