Preparation For A Multiple Offer Situation
The buying market is extremely hot at the moment. It is being driven by a number of factors: low mortgage rates, low supply of home sellers, an awakening for many after COVID of what life means, folks from other states relocating to Florida, investing in property due to the uncertainty of some financial markets. This has led to homes selling in days with multiple offers placed on it.
How can your offer stand out to the seller amongst his confusion of deciding which one of many is best? One way to do this is to (assuming the home is priced correctly) offer asking price with an Escalation Clause attached with the offer. This clause tells the seller that you will pay say $500-$1000 more than his highest offer with a limit on the top price that we decide is suitable.
As an example: a home for sale you really want to have is $300,000, we offer $301,000 with the escalation clause that will read as such:-
“Buyer agrees to pay $500 more than the next highest offer, not to exceed a final purchase price of $330,000.” It does also include that with the acceptance of the escalatory clause, that the seller is obligated to show the buyer a copy of the next highest offer, that was used to achieve the final purchase price. If an offer came in at $305,000 in this example, your offer would still succeed and the purchase price would be at $305,500.
Once it is accepted, you are heading to own your own little piece of Florida that we can manage and rent for you during your absence. With so many vacation homes being purchased now by residents, central Florida is losing so many vacation homes to residents and so much fewer vacation rental homes left for the guests that are still coming in their droves to rent a place and enjoy Florida.
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Licensed Florida Real Estate Broker