It’s becoming a seller’s market.
Yes, that is right; once again it’s becoming a seller’s market here in Miami Florida. As a Buyer’s Realtor it has been very challenging getting offers accepted in today’s market. Properties are being sold at listing price and in an AS-IS condition. When signing a purchase contract make sure that your contract has a clause called (Inspection Period).
The Inspection period allows the buyer to perform a property inspection so that the buyer can know what repairs the property would require before proceeding with the purchase. This clause allows you to exit the contract due to the findings on the property inspection report. If the property has too many repairs and the buyer no longer wishes to continue, this clause would be the best contingency to have on your purchase contract.
Besides the home inspection period, another contingency you might want to add to your contract is an appraisal contingency. The appraisal contingency would allow the buyer to cancel the contract if the property does not appraise at the purchase price.
Miami is a very International city with lots of buyers coming from all over the world to buy properties for investments. Most of these buyers are buying with CASH and are paying full price. Besides paying full price these cash buyers do not add an appraisal contingency on the contract. Making these cash offers more attractive to the sellers.
If you will be financing with a loan, make sure to add an appraisal contingency on the contract to protect yourselves just in case the value of the property does not come in close to the purchase price. The appraisal contingency protects you and allows you to cancel the contract just in case the seller does not agree to lower the price to the appraisal value or at least meet you in the middle.
Now, on the other hand, Cash buyers do not have this contingency on the contract making sellers lean more towards cash offers instead of financing offers. Unfortunately, the sellers in today’s market have options on the table, so when making an offer on a property you like make sure to come in with a strong offer. Try submitting a full price offer and putting down a reasonable escrow deposit to show the seller you are very serious on purchasing their property.
I wish you good luck and if you have any questions, please feel free to email me at email@example.com