Florida’s Homebuying Bidding War

The housing market is sizzling! Redfin, a national real estate company, announced that 55.9% of their homes were involved in bidding wars in January. Historically, bidding wars have been more prevalent at the mid to higher price points in the market. Today, while they are more likely to occur in homes that cost over $600,000, they are still a prominent feature at all price points – 42.5% of homes priced under $200,000 even experienced them. This is great news for sellers, but anxiety-inducing to prospective buyers. It’s more important than ever for homebuyers to be prepared when they are ready to make an offer.[1]

Secure Financing Now

The most aggressive homebuyers are able to make all-cash offers on homes. Since that is not an option available to most buyers, the next best choice is to include a mortgage pre-qualification letter with your offer. This proves that you can afford to purchase the house. Before you start your search for a new home, contact Choice Mortgage Group to be pre-qualified for a loan. An additional benefit of pre-qualification is that you have a clear idea of how much home you can afford. It’s easy to fall in love with a home and offer to pay escalating prices to win the bidding war. Being pre-qualified for a mortgage helps keep you grounded by giving you a specific budget that you cannot exceed.

Offer Flexibility on Closing

For some sellers, the closing date can be as significant as the price. For example, if the seller has already purchased another home and wants to avoid a double mortgage payment themselves, they may want to close as soon as possible. Conversely, if the seller has children, they may want to wait until the end of the school year to close. If you can offer a closing date that will meet their needs, that can help your offer rise to the top of the pile.

Work with an Experienced Real Estate Agent

A top-producing real estate agent stays abreast of when new homes come on the market. When possible, visit homes the first day they are available and make an offer immediately. The real estate agent can advise you how much to offer so that your offer is competitive. They also can help you locate nearby areas that provide most of the amenities you are seeking, but offer better pricing and less competition. Choice Mortgage Group works with experienced real estate agents throughout Florida and we would be happy to refer you to one in your area.

It is more challenging to purchase a home now than in the past. But it’s absolutely possible – thousands of people sign contracts to purchase new homes every day. With preparation, patience, and your finances in order you too will be able to purchase a new home.

Since 1995, Choice Mortgage Group has been providing homeowners with the best real estate financing programs available. As a licensed lender, we offer a wide variety of services and programs that satisfy the unique needs of each of our clients.

Specializing in residential mortgage lending for over 25 years, our programs include conventional and government lending, purchases, and refinances. We also offer portfolio lending for self-employed borrowers and borrowers with complicated tax situations. South Florida is where Choice Mortgage Group started, and we like to call it home. We are devoted Florida Atlantic University Owls fans and are proud to be the official mortgage lender of FAU Athletics. We also support numerous other local organizations. For more information about Choice Mortgage Group, visit www.choicemortgage.com.

Choice Mortgage Group

40 SE 5^th Street, Suite 502

Boca Raton, FL 33432

(561) 709-5151

info@choicemtg.com

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[1] Redfin. 56% of Redfin Home Offers Faced Competition in January, the 9th-Straight Month of a 50%-Plus Bidding-War Rate. Accessed February 11, 2022.