Some of us are hesitant to make any decision without knowing all the details. If you happen to be one of those people, I definitely understand where you are coming from, because I’m one of them too.
Sometimes this behavior doesn’t work in our favor though.
How does this apply to the real estate market ?
I sell condos in Miami Beach and specifically South Beach, so I can only speak for this market, but unlike the general mindset that all real estate markets are currently buyer’s markets, there one big exception, that most people overlook.
Since we definitely are in a buyer’s market, everybody is looking to get a best deal possible. Of course the better the deals get, the more scarce they get and the more sought after they are, thus creating a mini seller’s market for these exceptionally good deals. It has become very common for well price Miami Beach condos to sell above list price, after several buyers engage over a bidding war for them.
Please don’t get me wrong. I’m not talking about every condo in Miami Beach, nor am I talking about the majority of them, but only a very small segment of the market.
Since this small segment seems to be what most buyer’s currently looking to acquire a Miami Beach condo seem to be looking for, lots of potential buyer’s end up leaving empty handed.
Often that happens because people are worried about pulling the trigger and submitting an offer on the condo they seem to like and find to be a good deal. This hesitation often comes from a fear of the unknown. What if there is a big lien on the property ? What if it needs a lot of repairs ? What if….what if….what if…. ?
Unfortunately there is generally not enough time to cross all your t’s and dot all your i’s as all the really good deals will be long gone before you and / or your real estate agent have gathered all the details, so here’s my suggestion to you:
MAKE YOUR OFFER ASAP !
By doing so, you drastically decrease your risk of being left out and missing all the good deals.
But what if there’s a problem with the property ?
Here’s the important lesson in this post: In Florida, you are legally entitled to cancel your purchase offer on a condo for up to 3 days after you have received the declaration of condominium (and some other documents) without any ramifications to you.
(I will post an actual paragraph out of one of the addenda on the purchase contract at the end of this post for those of you that want to know all the details) .
Once you’ve made your offer, you then have plenty of time to do all your research (or preferable have your real estate agent do it for you) and if you find anything that you dislike, you simply retract your offer, no harm done, as long as it’s within 3 days of receipt of all necessary paperwork. Since most sellers will never actually supply you with a declaration of condominium until an offer is accepted and signed by both parties, you generally have a lot more than 3 days to conduct your research and see if you want to stick with your offer or not.
So what’s the moral of the story ? If in doubt, make your offer ! There’s always time to clarify some details afterwards.
Here’s what the actual paragraph on the contract reads like:
“THIS AGREEMENT IS VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO CANCELWITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.”
Please note that this is only valid in Florida, so if you are in a different state, please check with a local real estate agent / attorney.