By now you know this but read my new article to find out why this is also a good thing for buyers!
In case you have not heard, we are living in an extreme sellers’ market here
in Jacksonville! In a balanced market, we typically have at least a three-month inventory of homes at this time of year, whereas we currently have less than 3,000 homes listed for sale. This basically equates to less than a
one-month supply with homes selling as fast as they are added, resulting
in acute competition. Multiple buyers looking at the properties, multiple
offers coming in, and as I have said before, everyone doing their best to
have the winning bid. With buyers now being willing to offer above the
asking price, we are needing to take steps to protect sellers from inflated
offers being used just to win the bid. As a measure of serious intent, listing
agents are asking the buyers to sign an appraisal waiver stating that if the
home does not appraise for the price accepted by the seller, the buyer will
bring the difference to the closing in cash in order to honor their offer.
Buyers are also personalizing their offers by sending letters to the sellers,
letting them know how much they love their homes and how they foresee
living there. Some sellers react to the personal touch of a letter like this
while others just want the best net figure. All of this is incredibly stressful
on the buyers, especially those who need to move quickly and, in some
cases, have lost the bid on several homes that they really wanted to
purchase. It is a crazy market!
So, what other options do we have? Enter the world of new construction!
Most builders have been forward-thinking and have started to build
homes that will be ready for faster delivery. These ‘spec homes’ tend to
have all of the upgrades that a current buyer might be looking for in a
popular floorplan and neighborhood. To make them even more
attractive, the builder is often offering an incentive, perhaps some flex
cash or help with closing costs, things that a resale seller usually cannot
compete with. Choosing to purchase new construction has less
competition for a buyer because the builder’s agent knows exactly which
properties are available, which are in the process of being built, and the
approximate delivery date. If those options do not work, we can always
build from scratch.
Now we are into dream home territory!! After all, if a buyer is going to
build a new home and move to temporary accommodations while this
happens, why not build exactly what they would love. Select the finishes,
adapt the floor plans, pick a lot that is perfect for your needs, and even
shop builders to see which one you prefer! This may be the right time to
embrace the moment to go all out, upsize, downsize, move to a
Medical Real Estate
It’s a Sellers’ Market!
beachfront home, the opportunities are endless. Maybe time to get out
of the condo and into a gated residential neighborhood. It is wonderful
to renovate, but perhaps this is now the time to build! There will be less
competition and the result will be yours alone!
We are very fortunate in Jacksonville because we have many top drawer
custom builders, each with their own style and each with their own
ideas to wow you! If this is the route that you decide to take it will be
exciting but it will take time. I always recommend that my customers
make a list of “considerations” before we sit down with the builder. The
consideration list is made up of “must-haves” and “nice to haves” that you
would like in your new home if money were not an object. You would be
surprised what builders and architects can do once they understand
your vision. Small spaces can be made to feel much larger and highly
functional. They can increase the amount of natural light, maximize
those amazing views, as well as hide things less desirable. Yes, it takes
time and effort to build, but the opportunity to have a home that is
perfect for you is very worth it. A final note if you go the construction
route, make sure you take your Realtor along to view the models and
meet with the builders. As with seeing the value in a resale, we have
extensive experience dealing with builders and we can help you see the
quality of the underlying home product through the model home
furnishings designed to capture your attention. Much more importantly
than that, when it is time to make a deal, we are used to negotiating
with builders to your best advantage, providing the combined value of all
previous customers we have brought them and the potential for future
Whichever path you decide, your dream home might be closer
than you think!!
Here is a link to the magazine if you would like to check other wonderful information they’ve included in this month’s issue.