The Anna Maria Island Sun Newspaper

Vol. 13 No. 51 - October 16, 2013

REAL ESTATE

Strategy helps make the best purchase

 

Every war needs good strategies and the real estate war is no different. Even the definition of strategy - “a high level plan to achieve one or more goals under conditions of uncertainty” - fits real estate purchasing to a tee.

Last week we spoke about pricing strategies for sellers and the effect of potential buyers being “anchored” to a listing price and/or a special feature of the property. This week in fairness we’ll talk about buyer strategies and methods to get a fair price for a piece of property without being outbid.

Buyers have been having a rough time of it - prices are going up, mortgage rates are going up and inventory has been scarce. All of this has resulted in multiple offers on properties and according to Redfin, a real estate website, in June, 69 percent of homes on the market nationally had multiple offers.

So what’s the best strategy for buyers in this market? Some of this may be helpful.

For years, I’ve been preaching that the single most important thing a buyer can do is to get prequalified, and I don’t mean preapproved, I mean prequalified. The difference is that you have essentially made application to a lender, provided them all of your documentation including income, assets and debts and they have told you in writing what size mortgage you qualify for based on the size of your down payment and prevailing interest rate. This gives you the highest level of credibility possible to a seller. Watch the interest rates - if they continue to go up you may need to be prequalified again.

Next, make realistic offers. In an escalating market you can’t afford to feel out the seller and certainly don’t insult them with a low ball offer. Coming in with your maximum or close to maximum offer at the beginning will put you out ahead of other buyers especially if this is the number you already decided you would pay for the property. As part of this strategy you also need to know what your top number is if it wasn’t your opening bid and be willing to walk away. Don’t get caught up in being “anchored” to the property at a number you’re not comfortable with.

Be flexible on terms outside of the sale price. For example, work with the seller on closing dates and other moving arrangements including the possibility of sellers renting back after closing if for some reason they can’t vacate the property. The better you connect with the sellers on a personal level the stronger position you will be in.

It’s also very important not to delay when you find a home you like. Get out in front of the crowd and make an offer quickly and continue negotiating as fast as possible.

Do research in your target area by scrutinizing one of the real estate websites like Realtor.com, Trulia and Zillow to analyze properties in your price range. Many local real estate companies’ websites will also provide access to properties listed on the Multiple Listing Service and municipalities also have online public records where you can check on sold prices.

Finally, make your wishes known either through your broker or directly to the seller that you want to be considered as a backup on a property where you may have been outbid. There are a lot of reasons real estate transactions never come to fruition frequently because of low appraisals in a market that is moving up quickly.

Attempting to purchase real estate for a fair price may seem like you’re in a war, but remember the seller isn’t your enemy. Figure out the best strategy for you and stick to your guns, so to speak.

Real Estate Transactions
Real estate transfers as of May 2013
Sponsored by Alan Galletto Island Real Estate

Sold Date | List Price | Sold Price | Address | Provision | Property Style

Anna Maria

07/01/2013 799,900 757,500 904 N Shore Dr 2205 50x78 4 Br./3 Ba. SFR
07/01/2013 590,000 540,000 307 Hardin Ave 1360 75x139 3 Br./2 Ba. SFR
07/02/2013 1,700,000 1,600,000 704 S Bay Blvd 2700 60x85 4 Br./3 Ba. SFR
07/03/2013 2,450,000 2,300,000 797 N Shore Dr 3684 3 Br./2 Ba. SFR
07/09/2013 539,000 475,000 238 Gladiolus St 2202 102x105 3 Br./2 Ba. SFR
07/10/2013 1,749,000 1,526,750 804 S Bay Blvd 3042 75x121 4 Br./3 Ba. SFR
07/17/2013 625,000 595,000 616 Rose St 1492 50x100 3 Br./2 Ba. SFR 07/18/2013 649,000 615,000 243 Willow Ave 2232 75x148 2 Br./2.5 Ba. SFR
07/19/2013 1,595,000 1,410,000 804 N Shore Dr 5462 100x100 7 Br./4 Ba. SFR
07/19/2013 624,900 580,000 523 South Dr 1736 60x110 3 Br./2 Ba. SFR
07/19/2013 550,000 469,700 520 South Dr 2874 60x110 6 Br./4 Ba. SFR, Short Sale
07/23/2013 799,000 710,000 231 Chilson Ave 1290 56x148 3 Br./2 Ba. SFR
07/23/2013 499,900 480,000 208 Archer Way 1885 80x125 2 Br./2 Ba. SFR
07/24/2013 684,000 676,000 300 North Shore Dr 1680 4 Br./3 Ba. SFR
07/24/2013 699,999 650,000 752 Jacaranda Rd 1300 50x105 3 Br./3 Ba. SFR
07/25/2013 449,900 468,000 521 Spring Ave 1204 52x145 2 Br./2 Ba. SFR
07/26/2013 495,000 425,000 504 Spring Ave 1398 3 Br./2 Ba. SFR
07/26/2013 539,500 500,000 305 Crescent Dr 1640 72x110 3 Br./2 Ba. SFR
07/31/2013 829,000 773,000 105 Pelican Dr 2718 75x100 4 Br./3.5 Ba. SFR

Bradenton Beach

07/31/2013 400,000 300,000 114 3rd S St 1051 50x100 2 Br./1 Ba. SFR
07/15/2013 990,000 850,000 110 10th St S 2037 6 Br./4 Ba. SFR
07/24/2013 239,000 233,000 1801 Gulf N Dr # 280 1080 2 Br./2 Ba. Condo
07/09/2013 350,000 320,000 1000 Gulf Dr # 1 480 1 Br./1 Ba. Condo
07/18/2013 150,000 145,000 611 Gulf N Dr # A27 794 2 Br./1 Ba. Condo
07/31/2013 299,000 250,000 2601 Gulf N Dr # S11 989 2 Br./2 Ba. Mobile
07/17/2013 297,500 295,000 2504 Avenue B # A 1624 25x100 Inc., Bank Owned.
Sold Date List Price Sold Price Property Address SFUA Lot Size Type of Property

Cortez

07/12/2013 299,000 210,000 12414 45 Ave # W 1024 28x82 2 Br./2 Ba. SFR
07/30/2013 375,435 345,000 3045 Mariners Cove Dr # 116 2227 2 Br./2 Ba. Condo, Bank Owned
07/10/2013 225,000 189,500 12507 W Cortez Rd # 64a 1342 2 Br./2 Ba. Mobile

Holmes Beach

07/08/2013 579,000 550,000 205 72nd St 1312 61x105 3 Br./2 Ba. SFR
07/10/2013 2,150,000 1,925,000 693 Key Royale Dr 5025 100x150 4 Br./4 Ba. SFR
07/15/2013 845,000 800,000 4001 5th Ave 2478 65x100 4 Br./3 Ba. SFR
07/15/2013 539,000 512,500 117 51st St 1536 3 Br./2.5 Ba. SFR
07/22/2013 350,000 225,000 212 82nd St 2536 90x90 4 Br./4 Ba. SFR
07/22/2013 418,000 385,000 201 30th St 1500 50x100 3 Br./2 Ba. SFR
07/23/2013 575,000 540,000 8305 Marina Dr 1710 80x100 3 Br./2 Ba. SFR
07/31/2013 499,000 464,000 609 Concord Ln 1464 2 Br./2.5 Ba. SFR
07/31/2013 749,000 700,000 506 67th St 3761 95x111 5 Br./3.5 Ba. SFR
07/01/2013 559,900 525,000 2716 Gulf Dr # 102 1155 2 Br./2 Ba. Condo
07/08/2013 289,900 280,000 6200 Flotilla Dr # 245 985 2 Br./2 Ba. Condo
07/08/2013 524,900 525,000 5806 Gulf Dr # 210 1078 2 Br./2 Ba. Condo
07/10/2013 389,000 372,500 6200 Flotilla Dr # 264 1426 2 Br./2 Ba. Condo
07/12/2013 252,000 238,000 403 39th St # B 750 2 Br./2 Ba. Condo
07/22/2013 369,000 345,000 7100 Gulf Dr # 115 1081 2 Br./2 Ba. Condo
07/23/2013 269,000 255,500 5400 Gulf Dr # 27 968 2 Br./1.5 Ba. Condo
07/31/2013 287,500 282,500 4255 Gulf Dr # 222 1254 2 Br./2 Ba. Condo
07/30/2013 564,900 500,000 303 64th St # B 1316 2 Br./2 Ba. Villa
07/31/2013 389,000 369,000 3007 Avenue E # 1 756 100x105 2 Br./1 Ba. Villa
07/01/2013 449,000 395,000 12 Palm Harbor Dr 100x88 Vac

 

Source: Manatee County Property Appraiser’s Office


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