Let me see if I can describe what finding a house in Florida feels and looks like in 2022. Remember during the height of the pandemic you couldn’t find toilet paper????? Well, that’s what it is like in the South Florida housing market you have to really hunt to find a home. In this video I am going to discuss why it is so difficult to find a home with the housing numbers, what it really feels like being in the market as a buyer, 5 things to do to prepare to make the win on a home. You don’t want to miss this video if you are in the market for looking for a home
1. Know the market and that means the housing number
Where I live on the Treasure Co of Florida our housing numbers were just released and in Martin County, the numbers are compared year to year so for instance February of 2022 would be compared to February of 2021, you never compare to the previous month as there are lots of reasons why that would give you an inaccurate snapshot of the market. Now listen to this, in comparing numbers just released in the first quarter of 2022, our sales of single family homes were down almost 20%, while the median price increased by 24% and ……..the inventory has shrunk to less than a month which means there are 46% fewer homes to purchase now….. than there were the same time last year. You heard me, sales are down, prices are up and there are less homes out there to purchase!!!!!!
For condos and townhouses, the numbers vary a little but it’s pretty much the same story.
Now I can look at my neighboring areas of Port St. Lucie where sales increased by 22%, prices increased by 27% and inventory is low like everywhere else. And in Palm Beach sales were unchanged, again prices up almost 20% and inventory is the same sad story. Are you getting the trend????? Prices are up by over 20% and inventory is down by at least 40%. This is why it is difficult to secure a home. Inventory is down to less than a month, that means……. if no other homes come on the market it would only take 1 month to sell everything available.
I’m telling you this because you need to KNOW THE MARKET. Time and time again I explain to the great people like you who want to move here and I don’t think it sets in until they arrive because after I go through all of this they say ….I want to come to Florida and look at properties. Even after explaining over and over about our inventory, when they arrive many times there may be nothing for you to look at however, all is not lost as we can look at areas to drill down to what area you really want so when the right property comes on the market you will be ready.
You need to be prepared in everything this is a marathon not a sprint. I’m not going to get into the basics such as getting pre-qualified and have your financing in order as you already know that what I’m telling you is how to win the marathon of procuring a home. It is better to start this process a few months before you are looking so you are set up for success. After all, you don’t wake up one day to run a marathon having done no training!
2. Hire the right Realtor
One that will make the difference in finding the right home and getting you to the closing table. Without this key piece, you are going to be floundering on so many levels.
There are questions you should ask when hiring a Realtor and If you like the first one then use them, you don’t have to interview a lot of Realtors, stop when you find one you like
Do you work full time? I’m sure they will say yes so dig a little further, ask are they available at all times during this search
Find out how well they communicate – Do. You like how they sound on the phone, do they get right back to you
Ask why should I hire you – If they answer I’m passionate about helping people or I like looking at houses – run. They should be telling you about their experience and how well they work in the market to get the job done.
Look at what they have done in the profession or if they work for a broker who is highly skilled. Typically the apple won’t fall far from the tree if they have good support
Two tips:
- How are you at negotiations? There are three times a Realtor will negotiate: The beginning of the offer, after inspections and the appraisal. Listen to the answer, they should be able to turn a negative into a positive
- Where do you get your business: If they say most of their business is referrals then you know their clients love them. If they say they work referrals that come in, that means they typically don’t know how to get business and keep it unless they are just starting out and are new.
I know you are anxious to get a home but do not call other Realtors who just listed a property! Stick with the agent you chose, the listing agent typically is not going to look out for you. The Realtor you have been working with is invested in finding you the right home. Remember we don’t get paid until you close on a home. There is a lot of work we do in faith to get a paycheck in the end.
The same holds true for any questions you may have, some buyer’s want to do the “legwork” for their agent, so they call other agents trying to obtain answers, but once again your agent should be able to answer any questions you have and if they don’t know the answer they should be able to find the answer. By calling the other agent you jeopardize working with the Realtor you carefully selected by making these calls.
Now that you have a Realtor and they will be sending you properties to look at so you will be ready to jump when the right listing comes on the market. Gone are the days of not putting an offer in on the first home you see. If you have done your homework, you will know when the right property comes on the market, now you just need to go see it. Nothing can replace going inside a home, pictures can really fool you. You may want to see this video (point up) on buying a home remotely just in case this may work for you.
3. You need to be physically ready
and have a schedule you can modify if a property that meets your needs comes on the market. You literally need to drop what you are doing and see how fast you can get in to see it. If a home hits the market, you need to see it asap (meaning that day) because if it is a good property, it will be gone fast. This is why having the right full time Realtor will allow you to get in quickly, Even if you have something very special planned it may mean postponing that event until you can see the property. I know this is going to sound like I’m making it up but be prepared for lines outside the home and cars lined up down the street to see this one property. Remember the toilet paper story.
4. You’re going to have to compromise on what you want in a home
in this market with so little inventory. You may get 3 of the 5 things you would like but as long as the items you don’t find in a home can be done later, that’s a win.
5. What are your expectations?
What kind of home do you want where do you want to live what things are on your must have list that you will not compromise and please make them as few as possible and then what things are you willing to fix or repair . Do you want a single-family home ….do you want a condo are you OK with a ah building that doesn’t have an elevator that you will have to climb stairs are you OK with entering into a building where you walk down the hall to enter your home sort of like an apartment or are you OK with living on the first floor with somebody overhead on the second floor do you have to have a garage are you OK with the amount of storage that you require, you get it, really think about your wants and you are really clear with what you must have in your expectations
6. You need to understand what housing is available in the price range you are looking in.
I have worked with buyers who know exactly what they want but its not available in the price range they need to be in. That means you have set yourself up for failure. You must be realistic with expectations and price. Its great to say the right home will come available but if you want a home that will never come on the market in your price range, you are missing opportunities.
7. Don’t get discouraged.
If you don’t get the first offer, discuss your marathon strategy with your Realtor to hopefully make the next offer your win.
Buying a home in today’s market is tough and not for the weak at heart. If you prepare, you will win but it may take a while for either the right home to come on the market or to win the bid. Keep sharpening your skills and this video may help you in the quest for a home
