Tips for Buying Your Dream Home

As you navigate through the process of your home purchase, as realtors, we recommend that you consider minimizing contingencies. Contingencies are clauses that allow you to back out of a contract if certain conditions are not met.

The most challenging contingency right now is bank financing. It is challenging because of both rates and timing to close. Just last year, NABOR (Naples Area Board of Realtors) changed their base contracts for 45 day financing contingencies, vs 30 days, because banks just couldn't close that quickly. So, for Sellers, they would have to wait 45 days (or more) to find out if the deal is "real". That's a long time for a Seller to have to wait, which affects their next step planning too.

With that in mind, to make your offer more palatable, how about bypassing this contingency by offering a cash transaction. Or, offer cash, but still finance. Or lastly, if you can offer cash, then refinance immediately after closing (there are multiple banks right now offering great rates and quick refi options under $500k - PNC Bank is one we have personally used a few years ago for our own residence).

Believe it or not, first-time buyers have it easier when it comes to contingencies. Why? The most common contingency is related to the sale of the buyers current home. Of course, first-time buyers don’t have a current home. So, sellers may be willing to entertain more seriously offers from non-contingent first-time buyers, than contingent move-up buyers. In today's Naples market however, Sellers almost never accept a contingency on a home sale, unless the terms are very favorable and the risk is low.

The big picture here however is that buyers can increase the potential of closing on the home of their dreams by minimizing contingencies, especially in highly competitive neighborhoods like west of 41 areas (Pelican Bay, Seagate, Park Shore, Moorings, Coquina Sands, Old Naplesetc). Historically over the past several years, we have found that the majority of the deals in these areas have been cash transactions.

We encourage you to talk to us about how to strengthen your position and put you in the best position to "win" when negotiating on your behalf.


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