It's tough when there are many investors and buyers paying all-cash in this real estate market, but there are ways to get an advantage.
In Parkland Florida, cash deals accounted for 26.0% of closed sales in September 2023. This increased to 28.2% in October 2023 — 1 in 3 of which were million-dollar homes. Buyers taking out loans are having a tough time competing when inventory is low, interest rates are high, and prices are high.Parkland homes sold at a median of $1,120,000 in October 2023.
But don't be discouraged — things are starting to change. Single-family homes have been selling at 3% below asking price over the last 6 months and the number of all-cash deals are going down (vs. December 2022 when they accounted for 47.6% of all closed sales.)
Many buyers do not have the same leverage and are having a hard time with high interest rates.
So how can non-cash buyers compete?
Beating All-Cash Buyers
• Get pre-approved for a loan ahead of time.You must have seen this everywhere — getting mortgage pre-approval is important. The sooner you go through the underwriting process with a lender, the faster the homebuying process can be since you're aleady in their system. Submitting your offer with a pre-approval letter gives you an advantage over others that don't have one. It shows the seller that you're financially capable to make the offer.
There's not enough homes for sale in Parkland FL to meet demand so when a home with potential goes up for sale, you have to act quickly.
• Get your downpayment ready. This will be paid at closing as part of the purchase price. Save, save, and save some more. The higher the downpayment, the better. There are various down payment assistance programs in Florida as well like "FL Assist,"" Hometown Heroes," etc. — you can check if you qualify here.
• Consider paying a high "earnest money" deposit (EMD). This is the money that you put down when your offer is accepted to show "good faith" i.e. to show the seller that you're serious in securing the purchase contract. This will be held in an escrow account to be applied to closing costs and purchase price at closing.
Hi there! Should you buy now or wait? There are factors to consider but more importantly, it depends on your finances and personal goals. Glad you're here and doing your due diligence! If you want to discuss this more with an experienced Parkland real estate agent, please get in touch! — Sincerely, Pierre
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How to Compete with Cash Buyers in Parkland Florida | This blog is for informational purposes only and does not constitute legal advice.