Buying a Home in a Multiple Offer Situation in Florida

The laws of conduct regarding the handling of multiple offer situations vary from state to state and ultimately it is the sellers decision not the listing Brokers decision on how to handle the multiple offer situation.  The listing Broker or their agent can only disclose the terms of the other offers to a buyer if the seller has given express permission to do so. Often times the listing Broker will ask the seller to put this request in an email or text message so they have a written consent. You may never know the terms of the other offers as a buyer which means you will want to present your highest and best offer.

Lets say you are pre-approved for a home loan for $225,000. and you cannot go above the purchase price already offered. You can make your offer "better" by having a shorter inspection period in the contract. You can also offer a larger escrow deposit or "good faith deposit" if you have the funds to do so. Lowering the amount agreed upon for repairs found during the home inspection is another way you can make your offer "better" without raising the purchase price. 

When deciding upon raising your purchase price be sure to have your Realtor review the recent sales of comparable homes most similar to the one you want to buy.  You want to make sure that the purchase price agreed upon in your real estate contract will meet appraisal value. If the appraisal is lower than the sales price or loan amount, you may not get financed and you will be unable to buy the home unless the seller agrees to lower the purchase price.  That can mean that you paid for home inspections and an appraisal and you don't get the home. 

A heartfelt letter to the seller may improve your chances of having your offer accepted. You can write a note to the seller explaining how much you love their home and wish to raise your family in the house. Compliment the home and let them know how much you appreciate the care and love they have put into their home over they years. 

The real estate market in New Port Richey and Port Richey Florida is a "Sellers Market" right now.  There are fewer homes available for purchase and many buyers actively looking for  home with puts the seller in a better position than in recent years. You will want to be as aggressive as possible to get the home you want.

You will want an experienced and knowledgable Realtor to assist you in today's market. Always remember, Your Agent Matters. 

Florida Contracts - Your Inspection Period and Right to Cancel

When buying a home in Florida, you have the right to

obtain inspections on the home you are buying even with an "As-Is" contract for purchase.  You have the option to chose how long of an inspection period you have. Often times we see an inspection period of 14 or 15 days but during negotiations on the purchase you may agree to make your inspection period shorter and only have 7 or 10 days.  No matter what your inspection period is, you  must adhere to that time frame or you may be putting your escrow or "good faith" deposit in jeopardy.

There are many inspections you may want to perform when buying a home.  Your insurance company will require a 4 point home inspection and a wind mitigation or roof certification to secure your homeowners insurance.  You may also want to have the pool inspected, air conditioning inspected, mold inspection, lead based paint inspection and a wood destroying organism inspection. Your home inspection is a general inspection and I advise you to have a pool professional or an a/c professional inspect those items if you think there may be an issue. The Wood Destroying Organism or "WDO" inspection checks for termites and other insects that eat wood.  I advise every home buyer in Florida to have a WDO inspection performed on any home they buy.

You can have all the inspections you want BUT if you

decide to cancel the contract based on the inspection reports, you must notify the seller in writing before the expiration of your inspection period.  Should you decide not to buy the home after the inspection period has ended, the person selling the home may keep your escrow deposit.  Your real estate professional should do everything in their power to keep you to the time frame as set forth in the contract and if you need more time you can request an extension of the inspection period from the seller.  The extension of the inspection period must be agreed upon and signed by all parties to the contract. Should you not adhere to the inspection time frame or written notification, it is not your real estate agent or brokers responsibility. 

Knowing your contract is important. You need a real estate professional who knows the contracts and has the experience and knowledge to provide you with the service you want when selling or buying a home in Trinity, New Port Richey or Hudson Florida.  Contact me online to discuss your real estate needs.

written by Michael J. Gallo

Florida Real Estate - The "As-Is" Contract

Florida real estate contracts may sound intimidating when selling or buying a home in Florida. This is why you are always advised to hire a Florida Realtor® to assist you in any real estate transaction you are initiating.  One of the most commonly used Florida real estate contracts is the Far-Bar "As-Is" contract.  This contract was written by the Florida Bar Association in collaboration with The Florida Realtors® Association.  Real estate contracts in Florida are pre-written contracts where your Realtor® fills in the blanks under certain provisions in accordance with what you are offering for the home.  Florida contracts are written to protect both the Seller and the Buyer and the contracts perform in the best interest of both parties.  Many Florida Realtors® act as "Transaction Brokers" who represent either the seller or the buyer but have no fiduciary responsibility to their customers. You can read more about "Transaction Brokerage Relationships" here.

The Far-Bar "As-Is" Contract is widely used in our local market today.  Here are some clarifications about the perception of an "As-Is" contract:

As-Is Does NOT necessarily mean the home has a major defect or issue.

As-Is Does allow the buyer to perform a home inspection and decide whether or not to proceed with the purchase based on the findings in the home inspectors report.

As-Is Does mean you can ask for repairs based on the findings in the home inspection report.  **Provided the repairs are necessary to facilitate the sale and are deemed necessary by the inspector** (i.e. a pipe leak or hazardous electrical issues)

As-Is Does mean that the seller must maintain the property in the same condition it is in at the time the contract to purchase was executed. (if the a/c breaks before closing, seller fixes it)

As-Is is not considered to allow for beautification of the home as a contingency of the contract.  You can always ask, but seldom will the seller agree. This pertains to things like painting a bedroom a different color or having carpeting replaced. 

Often times your Realtor® may say "this home is being sold "as-is" for Sellers convenience". Generally it is the sellers way of saying that barring any major defect that must be addressed or repaired, what you see is what you get and we will not remove the duck wallpaper border from the kitchen.   When buying a home there is no need to be overly concerned with a home being sold "As-Is" and I suggest you rely on your inspection and the information provided by your real estate professional.  If you are selling a home, I suggest you consult with your Realtor® about how you want to market your home. "As-Is" or Not?

I recommend you consult with your attorney prior to selling or buying a home to get full legal understanding of the Florida Real Estate Contracts. I am not an attorney and the information provided is not to be considered as legal advice.

Written by, Michael J. Gallo