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5 Mistakes Home Buyers Are Making
Dated: June 28 2021
Hey, Janice here, top Miami Real Estate agent, popping in to give you the low down on locking in your dream home.
The 2021 housing market is a beast for buyers right now. Fatigue sets in, frustration and hopelessness can creep in as we navigate historically low supply and record high demand. I could give you countless stories from the field about buyers winning and losing homes in this market, instead I want to share with you the 5 mistakes you should avoid when buying a home in Miami, FL.
HERE ARE 5 MISTAKES BUYERS ARE MAKING WHEN BUYING A HOME IN MIAMI
1. Not hiring a local agent.
Connections are everything in a competitive market. Not only will a local agent know what it’s like to live on that street but a full-time local agent will have personal/professional relationships that can help get you that extra bit of information to win in a heated multiple offer situation that we so commonly see right now when buying a home in Miami. Plus, they will be able to give you insider knowledge on the area. In addition, you might find you have to compromise and get a home that needs a little work, a local connected agent will put you at ease because they have an arsenal of amazing local contractors, vendors, and professionals to tie you into getting what you need. And if that’s not enough, they might even have connections to the coveted preschool lists.
PRO TIP: make sure you hire an agent who has time to serve your price point and/or financial situation. If they are on a large team and buying leads, they might not have time to help you get to the finish line. A good question to ask is “how many buyers are you working with in X price range at the moment”
2. Not having their finances lined up.
When you are purchasing a home in a HOT market like it is now in Miami, FL you better have had your numbers crunched, finances in order and be aligned with a local lender with a rock-solid reputation. Two of my favorite lenders include Alfonso Rojas with Luxe Home Lending and Nicky Almeida with Caliber Home Loans, both are dedicated to their clients and work tirelessly to get their home buyers fully underwritten so that you are a worthy contender in a multiple offer situation.
NOTE: Being fully underwritten is the HOLY GRAIL of lending, it means you are FULLY APPROVED for a home loan, it’s better than “pre-approved” it literally means, you can have the cash, just let us know what home you want to buy. You will likely still need an appraisal as well but when you are fully approved you can compete with cash buyers. The bank has already vetted your financial borrowing status. So, call Alfonso or Nicky and tell them to get you fully underwritten, it takes about 10 days and it is well worth it.
3) Not having a local, full-time, guide to help you craft the best offer.
It’s one thing to have a local Miami agent on your team, it’s another to make sure they are actively working in the market. The Miami market has shifted so dramatically in the last 12 months, if an agent hasn’t been working and competing in the field, they likely with have issues crafting a winning contract for you. Hire an agent who is ACTIVELY winning homes for their buyers. There are nuances in the contract that can win a home based on the smallest of margins, you need a master at the contracts on your team.
4) Not understanding the market conditions.
It’s a jungle out there. You want an agent that is going to be honest, almost brutally honest so you know how to prepare yourself emotionally for ups and downs of writing offers. The 2021 Miami housing market is not for the risk adverse. You want an agent who gives it to you straight and tells you what it’s going to take to win so you don’t waste precious time…with interest rates expected to rise, now is not the time to hire a part-time, out of area agent or a discount agent- there’s no discount if you don’t win.
5) Not having patience.
If you hire smart, we will find you a house. Local connected agents can source off-market opportunities and/or get you into homes before they hit the market, so you have the time you need to process the purchase. They will give you hope and keep you focused. I love writing letters to homeowners when we spot a home that a buyer loves, and I am known to walk or drive down streets to ask a neighbor to send an email to an HOA list-serve to source a home for a dedicated buyer. Make sure you have a buyer agency agreement with the agent, it keeps them accountable to you and having that documented relationship will encourage them to work harder for you.
This market is fast moving, requires power connections to get information, and the most prepared buyers are winning. It’s not for the faint of heart, both for buyers and agents. I for one am enjoying finding the openings to win, discovering the homes that are overpriced and being ignored and because of that I am winning more than loosing. When our buyers gear up for battle we know the playing field, we anticipate the competition and go in with clear eyes and full hearts…we almost can’t lose, if we do I’ll send you a kitten Gif to cheer us up.