If you need brain surgery, you wouldn't call a family practice doctor to perform the procedure.
They both graduated from medical school, but the key to their relevance in your situation lies in their schooling and individual experience.
Real estate is no different. Every Florida real estate agent has a license - the key to our application in your search has to do with the advanced training we have received.
At True Real Estate, we have gone on to achieve numerous advanced designations. In fact, William True, Broker, holds more professional certifications and designations than any other realtor in the state of Florida. These designations fall into several key categories:
Buyer Agency Management - Accredited Buyer Representive (ABR) , Accredited Buyer Representative Manager (ABRM), Graduate Realtor Institute (GRI), Certified Real Estate Brokerage Manager (CRB), Certified Residential Specialist (CRS)
International Buyers: Certified International Property Specialist (CIPS), Transnational Referral Certification (TRC), At Home with Diversity (AHWD)
Niche Buyers - Senior Real Estate Specialist (SRES), Resort & Second Home Property Specialist (RSPS)
Monday, January 26, 2009
Securing a Good Deal on an REO (Bank Owned Property)
The news this morning reported that the iminent release of REO's will flood an already saturated market with more inventory.
It seems banks are not really all that interested in holding property, which it took them a while to figure out. I guess they didnt expect people to want a DEAL on an REO, not to pay market value. They also arent really all that keen on forgiving principal balances to keep people in their homes, despite some folks best efforts to gain homeowner assistance.
So we will likely see more bank owned properties, and in accordance with the law of supply and demand, they should be well priced. This is it folks - an unprecendented time in history to pick up your Sarasota vacation, beach, retirement home for a song.
Dealing with banks is different than traditional sellers of Sarasota real estate. If you are going to pursue a bank REO, here are some tips:
1) Cash is king and will put your offer on the top of the pile, ahead of other similar offers
2) If you will finance, have your financing in line and documented by your lender at the time of offer
3) The bank will not generally maintain the home nor fix deficiencies. Do not put clauses in your offer that will require them to do either - instead write an offer "as is" with right to inspect. If the inspection reveals a major issue, you can back out
4) Be ready to close quickly. The bank is motivated by serious and ready buyers
5) Hire a lawyer to review the documents. Banks utilize their own contracts and addendums that may not be familiar to your real estate agent. The bank will have a host of lawyers representing them - it is well worth a few hundred dollars to be protected.
REOs can present an excellent opportunity to buy into a neighborhood you might not otherwise be able to afford. But keep in mind you are not dealing with a personal seller; instead we are negotiating with a corporate entity. Aligning your expectations to that reality will make the process more palatable and rewarding.
It seems banks are not really all that interested in holding property, which it took them a while to figure out. I guess they didnt expect people to want a DEAL on an REO, not to pay market value. They also arent really all that keen on forgiving principal balances to keep people in their homes, despite some folks best efforts to gain homeowner assistance.
So we will likely see more bank owned properties, and in accordance with the law of supply and demand, they should be well priced. This is it folks - an unprecendented time in history to pick up your Sarasota vacation, beach, retirement home for a song.
Dealing with banks is different than traditional sellers of Sarasota real estate. If you are going to pursue a bank REO, here are some tips:
1) Cash is king and will put your offer on the top of the pile, ahead of other similar offers
2) If you will finance, have your financing in line and documented by your lender at the time of offer
3) The bank will not generally maintain the home nor fix deficiencies. Do not put clauses in your offer that will require them to do either - instead write an offer "as is" with right to inspect. If the inspection reveals a major issue, you can back out
4) Be ready to close quickly. The bank is motivated by serious and ready buyers
5) Hire a lawyer to review the documents. Banks utilize their own contracts and addendums that may not be familiar to your real estate agent. The bank will have a host of lawyers representing them - it is well worth a few hundred dollars to be protected.
REOs can present an excellent opportunity to buy into a neighborhood you might not otherwise be able to afford. But keep in mind you are not dealing with a personal seller; instead we are negotiating with a corporate entity. Aligning your expectations to that reality will make the process more palatable and rewarding.
Tuesday, January 13, 2009
Determining What to Offer
In this market, no one is willing to offer list price - not that they should be expected to. The sellers know this, and almost always have some padding in their list price to allow for the inevitable "lowball" which will take place in an offer situation.
If you are an investor and have no emotional connection to the property you wish to purchase, perhaps throwing lowball offers at the wall to see what sticks is a valid strategy. A friend of mine once told me that if he gets 1 offer out of 10 accepted, he is doing well.
But most of us in this market are looking for a place to call home. The property we choose, we searched for diligently. We walked in the front door and knew "this is it". We went home mentally firguring out where the furniture would go.
To those folks, making an offer that accomplishes not only getting a good price, but actually GETTING the home, is of paramount importance. How do we go about structuring an offer that is a good deal for us, but still gets us the home we want?
List price can be very deceiving. There are as many strategies for setting list price as there are people selling their home. List price is a guide, a parameter. But there are other factors to look at:
1) Recent comparable sales - Not only do we not want to pay more than the market says the home is worth, but if you are getting financing, the home must appraise at the sales price. The bank determines value by looking at similar homes, within proximity, and what they sold for. We must do the same in determining the properties market value today - not 6 months ago, or a year ago, but today.
2) Assessed value - to a lesser extent, we look at assessed value. This number is generated by the tax authority, and is the number on which property taxes are based. Assessed value is almost always less than market value...so if we see a home selling for less than assessed value, it is probably a steal.
3) What did the seller pay for them home? Do they have equity? How much of a mortgage do they have to cover? - All of these questions speak to not only the Sellers desire to sell the home, but their ability to do so at a lower price. Many people are willing to deal, but are going to have to cover their mortgage, and have a little left over for their next place. Folks with lots of equity are prime candidates for being able to negotiate.
4) Is the home a rental, second home, or already vacated? Vacant properties are often easier to get down on price than an owner occupied home - the owner has generally already moved on and ready to be done with the property.
The more information we have on the property, the situation and the seller, the better we can ascertain what a likely sales price will be - and it is sometimes very different than the list price.
And although people often believe that means ammunition to offer lower than list - it can work in reverse as well. Those numbers often tell us that the property is very undervalued - and we should move - quickly! Those dont last long.
If you are an investor and have no emotional connection to the property you wish to purchase, perhaps throwing lowball offers at the wall to see what sticks is a valid strategy. A friend of mine once told me that if he gets 1 offer out of 10 accepted, he is doing well.
But most of us in this market are looking for a place to call home. The property we choose, we searched for diligently. We walked in the front door and knew "this is it". We went home mentally firguring out where the furniture would go.
To those folks, making an offer that accomplishes not only getting a good price, but actually GETTING the home, is of paramount importance. How do we go about structuring an offer that is a good deal for us, but still gets us the home we want?
List price can be very deceiving. There are as many strategies for setting list price as there are people selling their home. List price is a guide, a parameter. But there are other factors to look at:
1) Recent comparable sales - Not only do we not want to pay more than the market says the home is worth, but if you are getting financing, the home must appraise at the sales price. The bank determines value by looking at similar homes, within proximity, and what they sold for. We must do the same in determining the properties market value today - not 6 months ago, or a year ago, but today.
2) Assessed value - to a lesser extent, we look at assessed value. This number is generated by the tax authority, and is the number on which property taxes are based. Assessed value is almost always less than market value...so if we see a home selling for less than assessed value, it is probably a steal.
3) What did the seller pay for them home? Do they have equity? How much of a mortgage do they have to cover? - All of these questions speak to not only the Sellers desire to sell the home, but their ability to do so at a lower price. Many people are willing to deal, but are going to have to cover their mortgage, and have a little left over for their next place. Folks with lots of equity are prime candidates for being able to negotiate.
4) Is the home a rental, second home, or already vacated? Vacant properties are often easier to get down on price than an owner occupied home - the owner has generally already moved on and ready to be done with the property.
The more information we have on the property, the situation and the seller, the better we can ascertain what a likely sales price will be - and it is sometimes very different than the list price.
And although people often believe that means ammunition to offer lower than list - it can work in reverse as well. Those numbers often tell us that the property is very undervalued - and we should move - quickly! Those dont last long.
Saturday, January 10, 2009
When the Hype becomes Reality
Recently I posted an article on our website -according to the MSN study, the Sarasota-Bradenton area was one of the few places in the country that it now made more sense to BUY real estate vs. RENTING.
Hey! I was only the messenger! But I did get some flack for promoting the "hype" - trying to get people to buy homes was my only motivation, according to the critics.
Well, this week a friend of mine closed on his home. At the closing table, he made a remark that perked up my ears - "The monthly principal and interest on my loan is $150 less than the rent I have been paying!"
What's that? His new, spacious 3 BR home on a lake was going to cost him less per month than his 2 bedroom apartment...and he would be building equity in a long term investment. That is not to say every Sarasota real estate purchase would garner that result - you have to be smart.
But sometimes, hype is not hype at all - simply a voice in the wilderness, going against the grain perhaps, but speaking the truth nonetheless.
Hey! I was only the messenger! But I did get some flack for promoting the "hype" - trying to get people to buy homes was my only motivation, according to the critics.
Well, this week a friend of mine closed on his home. At the closing table, he made a remark that perked up my ears - "The monthly principal and interest on my loan is $150 less than the rent I have been paying!"
What's that? His new, spacious 3 BR home on a lake was going to cost him less per month than his 2 bedroom apartment...and he would be building equity in a long term investment. That is not to say every Sarasota real estate purchase would garner that result - you have to be smart.
But sometimes, hype is not hype at all - simply a voice in the wilderness, going against the grain perhaps, but speaking the truth nonetheless.
Sunday, January 04, 2009
I didn't say it - They Did!
"Unlike the traditional agent who looks out for the seller, a buyer broker acts as your advocate, helping you find the home you want, then negotiating the lowest possible price." -Money Magazine
"We urge consumers who are purchasing a home to first consider an exclusive buyer broker relationship." - Consumer Federation of America
"An exclusive buyer broker - aims for the best deal for the home buyer." -Business Week
"Groups such as the Consumer Federation and the American Association of Retired Persons recommend using buyer's agents...the reason is they work." -Smart Money
"Unless the agent is an exclusive buyer's agent...there is a potential conflict of interest." - Chicago Sun Times
"How can one agent represent the best interest of two opposing sides? -Senior Life Style
"Exclusive buyer agents make every effort to get the lowest possible price for their buyers." -The San Francisco Examiner
"You can't represent the best interest of the buyer or the seller if you are wearing two hats." -The Idaho Statesman
"Exclusive buyer representatives act exclusively on behalf of a buyer...their loyalty to the buyer is never in question." - Fairfield County Examiner
"Buyer's agents focus all their attention on helping buyers find the right house at the best price." - Country Living
"Exclusive buyer's brokers represent you...part of their mandate is to negotiate the best price for you." - The Patriot Ledger (Mass)
"Exclusive Buyer's Agents work only for consumers and often can save them money." - Los Angeles Times
"To protect themselves, buyers can retain their own exclusive representative." - Business Week
"Only by using an exclusive buyer agent can a buyer be sure all information is kept confidential." - Mobility Magazine
"The best buyer brokers are so-called exclusive agents...they represent only buyers, never sellers." -Chicago Tribune
"You can't have partial loyalty; an agent either works for your or works for someone else." - Consumer Reports
"We urge consumers who are purchasing a home to first consider an exclusive buyer broker relationship." - Consumer Federation of America
"An exclusive buyer broker - aims for the best deal for the home buyer." -Business Week
"Groups such as the Consumer Federation and the American Association of Retired Persons recommend using buyer's agents...the reason is they work." -Smart Money
"Unless the agent is an exclusive buyer's agent...there is a potential conflict of interest." - Chicago Sun Times
"How can one agent represent the best interest of two opposing sides? -Senior Life Style
"Exclusive buyer agents make every effort to get the lowest possible price for their buyers." -The San Francisco Examiner
"You can't represent the best interest of the buyer or the seller if you are wearing two hats." -The Idaho Statesman
"Exclusive buyer representatives act exclusively on behalf of a buyer...their loyalty to the buyer is never in question." - Fairfield County Examiner
"Buyer's agents focus all their attention on helping buyers find the right house at the best price." - Country Living
"Exclusive buyer's brokers represent you...part of their mandate is to negotiate the best price for you." - The Patriot Ledger (Mass)
"Exclusive Buyer's Agents work only for consumers and often can save them money." - Los Angeles Times
"To protect themselves, buyers can retain their own exclusive representative." - Business Week
"Only by using an exclusive buyer agent can a buyer be sure all information is kept confidential." - Mobility Magazine
"The best buyer brokers are so-called exclusive agents...they represent only buyers, never sellers." -Chicago Tribune
"You can't have partial loyalty; an agent either works for your or works for someone else." - Consumer Reports
Thursday, January 01, 2009
Not only investors buying
The media has managed to convince everyone that the real estate market is at a standstill. Now, obviously we cannot say that the market is healthy - however, as a foot soldier in the Sarasota real estate market I can say this - alot more people are buying than you may think.
Many of my recent offers have run up against multiple offers - with so many homes on the market this clearly points to the fact that the good homes, the good values, are still generating interest.
A recent buyer quipped that no one else was in the market because "no one can get a mortgage". Another stated that he was probably "the sole buyer in the market." Both statements couldnt be further from the truth - there are many buyers taking advantage of the deals this market can offer.
The obvious problem with thinking that "no one else is buying" is getting nonchalant about making an offer on a home you love, thinking it will be there in a few months. We've seen several heartbroken prospective buyers as they watched their dream house (or plot of land) purchased by someone else.
The principle holds even in this market -if you are truly in the market to buy, and you find the perfect place for you, its best to try to buy it. We can negotiate, we can deal, and we will make sure you never overpay - but we can't guarantee someone else won't steal it from you if you wait too long.
Many of my recent offers have run up against multiple offers - with so many homes on the market this clearly points to the fact that the good homes, the good values, are still generating interest.
A recent buyer quipped that no one else was in the market because "no one can get a mortgage". Another stated that he was probably "the sole buyer in the market." Both statements couldnt be further from the truth - there are many buyers taking advantage of the deals this market can offer.
The obvious problem with thinking that "no one else is buying" is getting nonchalant about making an offer on a home you love, thinking it will be there in a few months. We've seen several heartbroken prospective buyers as they watched their dream house (or plot of land) purchased by someone else.
The principle holds even in this market -if you are truly in the market to buy, and you find the perfect place for you, its best to try to buy it. We can negotiate, we can deal, and we will make sure you never overpay - but we can't guarantee someone else won't steal it from you if you wait too long.
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