2022 Market, Offers & Appraisals by The Huertas Group

Authored by: Manny & Michelle Huertas

Happy New Year! 🎇

Hope you are having an Amazing January so far! 🎉

🤯2021 was a record-breaking year for Real Estate in South Florida & most Real Estate 🏘️ markets in general & 2022 seems to be headed in the same direction with low rates & inventory fueling demand.​

✅​Having a trusted, knowledgeable & dependable Realtor® by your side can make an enormous difference when navigating these incredible prices.

• Did you know that not all homes appraise to the contracted price? 🤔

As a Buyer, obtaining appointments & making offers in this current market can be incredibly stressful with the amount of competition out there. 

Here are a few things to consider before making an offer:

• Did you look at the market activity surrounding the home?

• Is the home priced to sell and if not, how much over market value is the property listed for?

• Is the seller accepting contingencies like appraisal or inspection contingencies?

• If buying a condominium or townhome with an association, does the association have reserves? Up to a 25% down payment may be needed in most cases if the association doesn't have reserves.

• Should the home not appraise, you will need to bring the difference in cash between the appraised price and contracted price to closing (​FYI: This is aside from your down payment & closing cost).

As a Seller, navigating through multiple offers and ensuring you select the best offer for your situation can be nerve-wracking. 

There are multiple factors to consider when selecting the best offer other than the highest offer amount such as: 

• Buyer qualification: Has the buyer been pre-approved? Have they taken a step further and obtained a DU (Desktop Underwriting)?

• Type of loan: Is the buyer paying cash or are they using a conventional, FHA, or VA loan? Each loan carries its own benefits and obstacles when it comes to closing timelines. Which will most help your current goals?

• Inspection contingencies: Will your home pass an inspection? The inspection is typically the second round of negotiations of a home's price depending on the inspection report. 

• Appraisal contingencies:

  • If appraisal contingency is waived: Is the buyer capable of paying overage of contracted to the appraised price?

• If the contract is contingent on the appraisal, knowing how to further negotiate come appraisal time can save the deal versus having to relist when the buyer walks. Usually, the first offers are the strongest as days on market have a substantial impact on offer amounts.​

• ​Buyer concessions (this is not common in this current market)

Enlisting the services of a Real Estate professional can help you navigate your way through this unpredictable 2022 Real Estate market. 

If you have any questions about today's current market conditions or any other general Real Estate questions, make sure to email or call us directly.