In Florida, real estate agents have a legal obligation to disclose their relationship to you before you enter into real estate transactions. Most often, although the terminology may be different, these agents are "dual agents". Dual agents represent both sellers and buyers. There’s one clear way to prevent representation from a dual agent: Assume most real estate agents are dual agents, then ask them.
However, there is more to the issue than simply asking, “Are you a dual agent?”
The problem is that this question doesn’t get to the heart of the matter, leaving a little too much room for interpretation. For instance, an agent assigned solely to representing that firm’s home buyers could reasonably answer, “Of course not.” Meanwhile, his or her colleagues are actively adding listings for sale on the multiple listing service.
Here’s the question that gets right to it, leaving no room for creative interpretation: “Do you, or anyone in your firm ever list homes for sale?”
Some agencies might reassure saying the two functions are kept completely separate, with different agents representing buyers and sellers. But remember, when a house sells, real estate agencies split a commission of the purchase price. When an agency represents both seller and buyer, it also splits the commission—and then gets to keep both halves!
So ask yourself, what is the true reality that there will not be an implied incentive to sell the company's own listings? And that you will be presented, up front, with ALL the properties that match your requirements, regardless of who listed them?
The biggest issue that has bothered me is this - when you work with a real estate agent, you are actually represented by the brokerage firm. If this firm has entered into an agreement to get the highest and best fair offer for their seller's home - how can the same brokerage effectively negotiate the LOWEST fair price for the buyer?
If you want true, unadulterated buyer representation, and there’s any company connection to homes listed for sale, that’s your cue to move on. You will meet resistance from the traditional real estate model, because that's the way it was always done. But this is a challenging market, and you need someone representing your interests - and yours alone.
Postscript - I am continually alarmed in speaking with people that have been out with agents and have not been presented with a representation disclosure. It is Florida law that we present you with a Brokerage Relationship Disclosure. Ask for it!
Friday, September 25, 2009
Tuesday, September 22, 2009
The View from Down Here
"Success is simple. Do what is right, the right way, at the right time." Arnold Glasgow
Oh that we could guarantee every move we made was the right one. As Sarasota buyer agents we are continually asked the "crystal ball" questions that all come down to this one sentiment -
"Is it safe to buy now?"
I can rattle off numbers at you. I can give you statistics. I can show you trends. Actually, I have done all that...read through the posts! Yes, it seems that in most cases, it is safe to buy right now. But you need to know what your goal is, and do the right thing to attain what you want.
If you are moving here to live indefinitely (once you get here, I predict you'll want to stay), now is a fantastic time to buy. Although the experts may disagree as to when the actual bottom will be - or already was - they do agree we are pretty darn close. As long as you have good information regarding neighborhood values, you will be just fine in the long run.
If you want to live by water or the beach, now is a fantastic time to buy. Can you get in for $200K? Probably not. But property that was listed for $1m just three years ago is now listed for $400K...this is a fire sale if ever there was one. Beach and waterfront have not lost their inherent value - we simply lost our buyers. But with so little true beach available, it will always - always - retain value. Investment 101- buy low!
If you want to buy and flip property, I would strongly caution you. I understand the draw. Prices in some cases are SO low that it seems like a no brainer. But the market is still not healthy enough to guarantee you can flip a property in a timely manner, especially after you sink money into renovation and upgrades. And even the aforementioned beach and waterfront property is a gamble - high end properties have not been moving the way people expected them to, even at deeply discounted rates.
What it comes down to is this - if a property will make you happy...if it will provide years of enjoyment...if you have always dreamed of sunsets over the bay - this is one of the best times in decades to buy a Sarasota home. If its strictly business, I recommend you build in a good amount of time needed to re-sell the property.
Overall, the view from down here - is looking up.
Oh that we could guarantee every move we made was the right one. As Sarasota buyer agents we are continually asked the "crystal ball" questions that all come down to this one sentiment -
"Is it safe to buy now?"
I can rattle off numbers at you. I can give you statistics. I can show you trends. Actually, I have done all that...read through the posts! Yes, it seems that in most cases, it is safe to buy right now. But you need to know what your goal is, and do the right thing to attain what you want.
If you are moving here to live indefinitely (once you get here, I predict you'll want to stay), now is a fantastic time to buy. Although the experts may disagree as to when the actual bottom will be - or already was - they do agree we are pretty darn close. As long as you have good information regarding neighborhood values, you will be just fine in the long run.
If you want to live by water or the beach, now is a fantastic time to buy. Can you get in for $200K? Probably not. But property that was listed for $1m just three years ago is now listed for $400K...this is a fire sale if ever there was one. Beach and waterfront have not lost their inherent value - we simply lost our buyers. But with so little true beach available, it will always - always - retain value. Investment 101- buy low!
If you want to buy and flip property, I would strongly caution you. I understand the draw. Prices in some cases are SO low that it seems like a no brainer. But the market is still not healthy enough to guarantee you can flip a property in a timely manner, especially after you sink money into renovation and upgrades. And even the aforementioned beach and waterfront property is a gamble - high end properties have not been moving the way people expected them to, even at deeply discounted rates.
What it comes down to is this - if a property will make you happy...if it will provide years of enjoyment...if you have always dreamed of sunsets over the bay - this is one of the best times in decades to buy a Sarasota home. If its strictly business, I recommend you build in a good amount of time needed to re-sell the property.
Overall, the view from down here - is looking up.
Monday, September 21, 2009
Forest - Meet Trees
You've heard the saying "you can't see the forest for the trees". Simply put, sometimes we get so hung up on details, that we fail to see the big picture.
In this real estate market, we see it alot. Caught up in the negotiation game, buyers walk away from a GREAT deal because the seller wouldn't give "just a little more". People pass on an incredible deal because the home needs new carpets...or a new roof...or an updated kitchen. But when a home is priced at 50% of market value, adding in the cost of these upgrades still makes it a steal.
Every day new clients tell us that they want "alot of house, a little bit of money". Of course they do, that's what everyone wants. But in the quest for the needle in the haystack, the deal of a lifetime, they often overlook opportunities that are, quite frankly, disappearing quickly.
As unfair as it may seem to everyone else, the incredible steals are sold to Sarasota area locals within hours of listing. The good news is, though, that with a qualified local professional sorting through the opportunity, we can still get you a fantastic deal before the window closes...
In this real estate market, we see it alot. Caught up in the negotiation game, buyers walk away from a GREAT deal because the seller wouldn't give "just a little more". People pass on an incredible deal because the home needs new carpets...or a new roof...or an updated kitchen. But when a home is priced at 50% of market value, adding in the cost of these upgrades still makes it a steal.
Every day new clients tell us that they want "alot of house, a little bit of money". Of course they do, that's what everyone wants. But in the quest for the needle in the haystack, the deal of a lifetime, they often overlook opportunities that are, quite frankly, disappearing quickly.
As unfair as it may seem to everyone else, the incredible steals are sold to Sarasota area locals within hours of listing. The good news is, though, that with a qualified local professional sorting through the opportunity, we can still get you a fantastic deal before the window closes...
Thursday, September 10, 2009
It's Not a Lowball Offer if its Accurate
I can't believe its still happening.
A seller puts a list price on their home. Apparently, they either have a misguided agent, or they choose not to listen to them. Granted - its a great house! But the home is grossly overpriced based on current market value and comparable sales. With the neighborhood knowledge we have, we can spot them immediately as overpriced for that area. I understand the psychology in play, but this market demands reality.
When our clients make an offer on a property, they do so with every bit of information we could find on value, comparables, upgrades, upcoming assessments...and we make FAIR OFFERS. Now, if someone has overpriced their home by $100K, and I make an offer $100K under their asking price, its not a lowball offer. It's a realistic offer. A market offer.
My home is worth about $400K in todays market. I can put a list price on the home of $750K if I want to, there is nothing to stop me. So does that mean if someone offers me $450K, that they are "low-balling" me?
No.
Sellers need to be open to hearing about the reality of market value, and realistically price the home. Then they, like other well priced properties, will likely experience multiple offers as the market improves. But getting offended because someone undercut your inflated price is not going to sell the home.
By the way, the elephant in the room is this - no matter what the agreed upon contract value, the home has to appraise. These days, getting a generous appraisal is unlikely at best. If you truly want to sell your home, take a deep breath, and find out what its worth and price it accordingly. Then my offer will be right in line with your price, and the deal will get done.
A seller puts a list price on their home. Apparently, they either have a misguided agent, or they choose not to listen to them. Granted - its a great house! But the home is grossly overpriced based on current market value and comparable sales. With the neighborhood knowledge we have, we can spot them immediately as overpriced for that area. I understand the psychology in play, but this market demands reality.
When our clients make an offer on a property, they do so with every bit of information we could find on value, comparables, upgrades, upcoming assessments...and we make FAIR OFFERS. Now, if someone has overpriced their home by $100K, and I make an offer $100K under their asking price, its not a lowball offer. It's a realistic offer. A market offer.
My home is worth about $400K in todays market. I can put a list price on the home of $750K if I want to, there is nothing to stop me. So does that mean if someone offers me $450K, that they are "low-balling" me?
No.
Sellers need to be open to hearing about the reality of market value, and realistically price the home. Then they, like other well priced properties, will likely experience multiple offers as the market improves. But getting offended because someone undercut your inflated price is not going to sell the home.
By the way, the elephant in the room is this - no matter what the agreed upon contract value, the home has to appraise. These days, getting a generous appraisal is unlikely at best. If you truly want to sell your home, take a deep breath, and find out what its worth and price it accordingly. Then my offer will be right in line with your price, and the deal will get done.
Thursday, September 03, 2009
Follow this Blog
Like what we have to say? We have added a feature where you can now follow this blog and be notified of new posts - simply scroll down and click the box!
New features also allow you to search the archives by keyword (also below) and easily leave comments, as well as email a post to a friend. Enjoy!
New features also allow you to search the archives by keyword (also below) and easily leave comments, as well as email a post to a friend. Enjoy!
Why Buy Before Season in Sarasota?
"Season" - Sarasota residents have a love/hate relationship with this time of year. Officially November through May, the real brunt of season is New Year's through Easter.
What is "season", exactly? Sarasota is a town with a growing residential population, but given our gulfside location, fantastic beaches and year round golf - we also have a huge popualtion of "snowbirds" and part-time residents. Add to those numbers the influx of tourists and vacationers, and the Sarasota population swells to twice its normal size.
While it can get a bit more crowded, season is a boon to local businesses, who often rely on seasonal visitors to sustain their business for the rest of the year.
With experts coming to a consensus that the overall market is heading for recovery, we have our own indicators. Sarasota's sales numbers are up, and our inventory is decreasing. Prospective buyers are reporting that their favorite "Watch properties" are being sold, and we are beginning to see multiple offer situations again on well priced property. US News and World Report says we are the 2nd most undervalued market in the country. Sales are expected to tick up as the first time home buyer credit program expires in November, further depleting inventory.
How does this tie to season? In Sarasota real estate, season has traditionally brought an upswing in prices as sellers anticiapte the influx of prospective buyers. While in recent years sellers weren't quite so optimistic, this year we are already seeing increases. With all the positive news, and homes selling better than they have in years, there is a real possibility that the months prior to season are a closing window to the best deals.
Besides, if you own property during season, you can rent it out ! We are, after all, a seasonal town. And traffic aside, for the most part, we love it.
What is "season", exactly? Sarasota is a town with a growing residential population, but given our gulfside location, fantastic beaches and year round golf - we also have a huge popualtion of "snowbirds" and part-time residents. Add to those numbers the influx of tourists and vacationers, and the Sarasota population swells to twice its normal size.
While it can get a bit more crowded, season is a boon to local businesses, who often rely on seasonal visitors to sustain their business for the rest of the year.
With experts coming to a consensus that the overall market is heading for recovery, we have our own indicators. Sarasota's sales numbers are up, and our inventory is decreasing. Prospective buyers are reporting that their favorite "Watch properties" are being sold, and we are beginning to see multiple offer situations again on well priced property. US News and World Report says we are the 2nd most undervalued market in the country. Sales are expected to tick up as the first time home buyer credit program expires in November, further depleting inventory.
How does this tie to season? In Sarasota real estate, season has traditionally brought an upswing in prices as sellers anticiapte the influx of prospective buyers. While in recent years sellers weren't quite so optimistic, this year we are already seeing increases. With all the positive news, and homes selling better than they have in years, there is a real possibility that the months prior to season are a closing window to the best deals.
Besides, if you own property during season, you can rent it out ! We are, after all, a seasonal town. And traffic aside, for the most part, we love it.
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