How Do I Go About Negotiating A Good, Fair Deal On A Waterfront Home?
When deciding to look at waterfront homes in southwest Florida you are talking about making a move to the live the dream! If you are from up north, you have had it with winters and have dreamed of living on the waterfront, owning a boat and having it reside at your own dock. Making a decision to come look at waterfront property is an exciting yet daunting task. I am speaking from experience even though it was 16 years ago. I still remember to this day about the excitement and uncertainties.
Finding the right realtor is not really that easy because most realtors don’t really know or understand the complexities of what house is right for what person, what house for what type of boat and/or how to fit the needs of the husband that only cares about the boat and the wife that cares most about the house and the pool. Yes, I lived this part of the dream in the beginning as well. Most realtors just want to sell you a house. For sure, you don’t need that kind of service.
Coming to Florida, you want to be able to find a house that you really like and fits your boating needs. Next, you want to feel like you are making a good deal. The next question is; how do I make a good deal or at least a fair deal? To start with you need to know if the house you are interested in, is priced fairly.
Many think the place to start with is Zillow, Realtor.com, etc. I can tell you it is not the best source of information by far and with certainly is inaccurate for waterfront homes. Each waterfront house in Charlotte County has a distinct set of features that many are not considered in the generic approach that online home value calculators work from. Price per square foot is often misleading as well. For example: A home that has 180 feet of waterfront versus 35 feet of waterfront are very different in value. Its all about location and waterfrontage dictates value. Homes that have a 5 minute boat ride versus a 1 hours boat ride are not factored into the online home calculators and the list goes on. There is value in comparing homes that have sold to ones currently on the market but you must consider all the parameters that truly affect value.
In essence, a realtor that really knows the market, characteristics of the waterfront, water depths, boat ride times, tide fluctuations, seasonal water height swings, etc. and of course, the intricacies of waterfront homes themselves is where you will find true value and how to consider an offer to purchase the home.
How Do I Know If A House Is Priced Correctly?
In general I would say that 60% of homes are over-priced. That leaves 40% of the home inventory to consider for inspection and possible offering on. As a long standing realtor here, I know which agents historically over price homes and some that actually under price. It is my job to find the background out on any home considered to make an offer on. Being a deal maker means knowing all aspects of the deal, the persons involved in the sale and purchase and working with all points to negotiate a great deal. Most of the time I can tell if a house is over priced just from the MLS listing, but not always. Just because a house is over priced does not mean we will rule it out if I think there is negotiation room to bring it to a fair deal. There really is no substitution for 16 years of selling waterfront real estate and the experience and wisdom it brings.
How Much Negotiation Room Is There On A Waterfront Home?
In general, 3-6% if a home is priced competitively for today’s market. If a home is over-priced then we hope to negotiate a larger price drop to get to a fair price.
Is There Every A Time When You Should Pay Full Price For A House?
The short answer is ABSOLUTELY. However, this does not happen all too often. Occasionally, a realtor that does not know his/her job under prices a property. Or its an out of the area realtor that doesn’t know the market. Either way, if the house is really good, a great price from the get-go and your realtor realizes that there will be plenty of offers, then a full price offer might be a smart move. My goal is to make you the best deal and sometimes the best deal is full price. I have had customers tell me that they have never heard of paying full price and they won’t do it. They compare to buying a car and walking in a paying sticker price and of course, would never do that so why would you do that on a house. The answer to this scenario is car dealers prices are always jacked way up so you have to negotiate down. Houses are altogether different. If you and your agent are working in harmony you will know if the house is worth your offering price regardless of full price or 10% off list.
