Waterfront In Florida

Can We See the Wizard of Oz's castle?

2012-01-29T08:55:00.000-08:00

Buyer Agent -Dorothy as she wonders through the forest of homes for sale....

Guard Dogs, Angry Tenants, Missing Keys

Oh MY!!

Buyers ... did you ever wonder what it takes to get you into that beautiful house you see glamorously portrayed on the internet? It isn't easy!!

Part of the service that your Buyer Agent provides is to get showing appointments SCHEDULED . Easy, you say, you just call the number for the Listing Agent and voila, I'm in!

Not so fast - there are: Call Centers to get through, unanswered voice mails to busy Listing Agents, harried secretaries that put you on hold and drop you. Lots of time - lots of organization and re-organization after the fifth appointment calls you back and insists you change your scheduled time completely because the baby is sleeping at noon....
messing up your carefully choreographed property production!

Then there are the "showing" requirements...

"24 hours appointment required - Guard Dog! Owner MUST be present" Yikes

"Showings only on odd Monday's when there is a full moon and you must take your shoes
off ". Okay the first part a bit exaggerated, the second, not so much.

"Tenant requires you not go into garage" hmmm...!

Because of reality shows like House Hunters Buyers believe that getting into that home they looked at on the web is a breeze. The real Reality is that it takes your Buyer Agent a lot of time and planning to pull off an efficient tour of homes. We don't reveal much about this part of the job because, well it is just not fun - necessary, but definitely not fun.

So next time you are thinking of hiring a Buyer Agent you can ask all the "Standard" questions like:

How many homes have you closed in the past year?
How many times have you represented the buyer only in a home sale over the past year?
What area do you work the most?
Do you have a network of contacts that I can use to make the buying process easier?
How quickly can I expect a response from you?

Perhaps the most important question should be.... how persistent are you?

Real Estate Teams - Do Buyers want to Play?

2012-01-21T05:32:00.000-08:00

Real Estate Teams are growing in popularity and size. It used to be a Team was two maybe three people; today some Teams can have 30 or more members! Many of these Teams may be "Top Producers", meaning they close a lot of deals - great for real estate companies!

The book The Millionaire Real Estate Agent, by Keller Williams founder Gary Keller and co-authors Dave Jenks and Jay Papasan has been instrumental in promoting the Real Estate Team concept. A "Team" typically divides it's members; some work with Sellers, some with Buyers. The Team usually works out of a larger real estate office/company (Brokerage). The key is cordinating all the different members of the Team to maximize the number of closed deals so that the Team makes enough money to support all it's members. Closing the deal, making the sale is the driving force in this form of Sales Organization.

The foundation of the Team is based on the typical Real Estate model of "Dual Agency". Dual agency is where the same real estate Brokerage represents both Buyers and Sellers. Part of the Team focuses on getting listings contracts - contracts to sell property for a property owner. These contracts create an obligation for the Brokerage as well as the Team to market, promote, display the Seller's property in the most favorable light and sell for the highest price possible. Another part of the Team works with Buyers.

From a Buyer's perspective how does this Team concept benefit the Buyer? The Buyer's main objective is to find the best property for the lowest price. A Team member will want to show and sell one of the Team's property listings - first. Buyers often complain that Team/Brokerage properties get "talked up" while other properties get "talked down" or are just not shown at all. Why? Because by selling a property the Team has listed the Team could double it's commission.

Can you imagine your Buyer Agent Team member "fighting" fellow Team mates to get the Buyer the best deal?

While many professions do have team concepts: surgeons, contractors, sports, etc.; these team members typically do not serve clients that have opposing objectives.

Housing Crystal Ball 2012

2012-01-05T14:02:00.000-08:00

With a new year at hand the crystal ball has been pulled out to see what is in the future for the housing market in 2010

Some good news was recently revealed at the end of 2011 from NAR. Their Pending Homes Sales Index increased 7.3% in November - put that in relation to where it was in November 2010 at 5.9%, and that is positive news indeed.

According to NAR the index has not been this high since April 2010 when buyers were rushing to beat the deadline for the homebuyer tax credit. One caveat to the data is that it reflects contracts that are in play, not closed. Which brings us to what clouds the picture in our crystal ball, homes not closing because of lending issues.

But wait... there does appear to be some good news regarding mortages as we peer deeper into the crystal. One of the wizards of banking at Freddie Mac (FrankNothaft, VP and chief conomist) indicates that mortgage rates are projected to remain at record low levels, at least until the middle of 2012. BUT (ahh more murkiness) credit is expected to remain tight - for most home buyers getting a loan will require the persistence of a long distance runner.

Trying to get a prediction from housing market experts as to what to expect in 2012 is just like relying on a crystal ball - there will be much that is open to interpretation and debate. If you need to answer the question if this is the "right" time for you to buy, look inward towards your own financial goals and situation - that is where the real answer lies.

Real Estate Representation de-Mystified?

2011-11-05T08:28:00.000-07:00

For the most part when Buyers start to look for a property to buy they don’t think about who they are going to be working with, they pretty much assume all Realtors© are the same, an assumption that could cost them cash.

To set the stage we need to define what an “agent” is. An agent is defined as a person or business authorized to act on another’s behalf. A real estate agent is a person who works for you to effect a successful real estate purchase.

Unfortunately when it comes to who represents you – the Buyer – in the purchase process State laws and regulations are not uniform; rather a mishmash of methods to avoid litigation and ensure the most profit for real estate franchises and brokerages.

For years a form of buyer representation known as sub-agency was widely practiced. Many multiple listing services required that the brokers listing property in their service offer compensation to “co-operating” brokers only if the co-operating broker acted as a “sub-agent” of the listing broker. What that meant was that buyers were not really represented. The agent they thought was working for them had a contract with the seller to get the seller the best price for the property since as a “sub-agent” they were working under the direction of the listing agent.

Sub-agency proved a legal nightmare so in the early 90’s ways were sought to allow real estate brokerages to keep the commissions from both sides of the transaction and avoid getting sued for misrepresenting who was working for whom.

The result is a host of “relationships”; from dual agency – where one “agent” works for both parties in the transaction to “non-agency” relationships (Transaction Brokers) which does away with agency relationships altogether. Even though the National Association of Realtors© has never endorsed transaction brokerage, Florida and 24 other states allow Realtors© to act simply as “facilitators”, providing services to Buyers without representing them as their agent.

In Florida it is assumed that all real estate sales associates are acting as Transaction Brokers (non-agency). Florida law changed in 2006 and with that change sales associates do not have to provide consumers with disclosures letting them know that they are working as non-agents (Transaction Brokers).

Interestingly according to a survey conducted by the National Association of Realtors© only 10% of Realtors© said they practiced Exclusive Buyer Agency; working exclusively in the Buyer’s interest.

For a more in-depth discussion visit this Inman News story.

Attention Baby Boomers, we are getting ready to Land!

2011-01-21T09:09:00.000-08:00

When you consider life after the 9-5, the commute, the office politics perhaps you dream of sleeping in every day, not getting out of your pj’s until noon and just piddling around the house for the rest of the day. Ah, sounds like heaven – for a month. . . maybe!

Baby Boomers are not a passive generation so planning a passive retirement does not seem in synch with all that we know about Boomers. They have been the movers and shakers - trend makers for a long time; don’t think that is going to change. Therefore it is essential to look at what you want to do with those well earned years ahead and where.

Location, location, location has always been the mantra of real estate. Why you buy a second home is important but perhaps not as important as WHERE you buy your second home. You should work with your buyer’s agent to investigate the communities you are considering. There should be things that make sense for you on a financial, physical, emotional and yes, even spiritual level.

The financial side is obvious; you need to consider the cost of living of the area. That not only means investigating how much it will cost to purchase groceries and gas, but are there opportunities for jobs? Yes, jobs! Most boomers will not want to completely exit the work force (or won’t be able to) so you should look at sources of potential employment for something you may want to do (a dream job you have never tried because of responsibilities) or something you already know how to do.

Physical considerations are also obvious; will the weather/climate support all the activities you plan on trying now that you have the time. Are there parks and recreational areas nearby that will satisfy your yen to try out tai chi or yoga? A shopaholic, make sure there are plenty of malls close by… you get the idea!

Emotional level may be a little harder to pin down, since it is very individual. Perhaps you want to go back to college, or get better at sailing, maybe volunteer work is something you have always wanted to do but never had the time. To stay vital this area also needs “exercise”.

Spiritual health is also very personal; investigating your new destination for outlets that will nourish you spiritually should not be overlooked.

Making good choices on where you land for the next phase of your life entails exploring all the aspects, get help at the start of the process so you can kick back and really enjoy the rest of the ride!

Good Reasons to Buy a Second Home

2011-01-17T12:52:00.000-08:00

With the real estate market in the dumpster there are some terrific opportunities for second home buyers. Other than the possible tax benefits some other good reasons include:

Building equity using an alternative source. Yes prices are down all over but that also means homes are affordable that will appreciate again once the market returns. Homes that are located in desirable locations, especially waterfront properties, will always be well….desirable! With the stock market ups and downs being controlled by large investment computers, real estate still looks like a smart investment for the individual investor.

Test drive a retirement location before you retire. Maybe your lifelong retirement dream has always been to live on/near a world class golf course. Purchasing a second home before you really need to live the dream might just save you a lot of disappointment. If you find the reality of your dream lifestyle does not work for you, purchasing the home before you retire can allow you to build equity (see above) so you can move on to your true dream.

Loosen the ties that bind. One of the hardest things about moving after you retire is leaving behind all you have built in your current home (family memories). This is not a bad thing and staying put after you retire may just be the right decision for you, however, if you have a dream you would like to realize (see above) then having a second home where your family spends time together before you make that big change will give you the opportunity to build new attachments and memories in your next home.

Legacy building. It is a rare parent who does not want to leave a legacy for their children. Money is nice - but does not have the special value of a home where you spent time together building family stories. A second home can be a wonderful memory filled gift you leave for your children to enjoy with their children as well.

Buying a second home is not for everyone, but if you are well positioned and considering the idea, these benefits may help make that decision a little easier.

The New FAHP (Florida Affordable Home Program)

2011-01-10T09:02:00.000-08:00

Okay, I am sure by now you have all heard of the HAFA (Home Affordable Foreclosure Alternative) program and HAMP (Home Affordable Modification Program) But I bet you have not heard of “FAHP” – Florida Affordable Home Program. It is a brand new “program” that has happened by accident (hmmm?) through the failure of the other programs. As many news pundits have pointed out these Government programs have not been stellar in providing the much needed relief they were supposed to. That, unfortunately, has led to downward spiraling home prices, stalled short sales and a slew of foreclosed homes in Florida.

“FAHP” is for buyers looking for an affordable new home, a second home, or just a place to escape the crazy winter weather!

Sound like it will work for you? Consider these numbers, home prices are now at the levels they were at in 2003 (and in some areas of Florida prices not seen since the late 90’s) but mortgage rates are at 2010 levels (4.8%-5.25%), not at the 2003 rates (5.8%-6.5%) so you will realize the additional savings of historically low mortgage rates AND low home prices. And what a selection! Want a condo/townhouse? There are 9,216 available right now in the Tampa area. Single family home – you can probably find something you will like in the inventory of 20,035 that are available to choose from -and that's just the Tampa area!

Even if you are looking from an investment point of view and do not plan to use your new Florida retreat right away think of this information from Hotpads.com; economic uncertainly and a growing number of people losing homes to foreclosure in 2010 drove rent rates up as prices for homes for sale dropped. Median rents in Florida between January and December 2010 were up 17%.

Florida homes ARE affordable for buyers who are ready and able to go, but one catch (isn’t there always a catch?) prices have started to go up in the many Florida areas. In Tampa, for example, home prices have increased 2.2% from December 2009 to December 2010 and the inventory of available homes has dropped from a 10.9 month supply in December 2009 to an 8.2 month supply in December 2010. This bargain basement sale will not last forever. Your Buyer’s Agent is a good resource to determine if this “FAHP” program is right for you!

What's Wrong with Real Estate Today

2010-04-20T14:08:00.000-07:00

How to handle Buyers Remorse by Loren Keim C21 Realty

“Ultimately, there is no single answer for how to handle buyer’s remorse when it appears. Just be aware of the potential for a buyer to panic. If it happens, the buyer may try to withdraw from the agreement, or he or she may begin nitpicking the home because he or she is frustrated. Do not become emotional. If you are representing the buyer, simply respond the best you can and if you’re representing the seller, you may have to use the (escrow) deposit as leverage to keep the buyer from withdrawing from the purchase.”

After reading this I asked myself…. Are these the kind of Agent’s I want working for me? Loren Keim wrote the above article – as part of a C21 agent-training program.

Here is a perfect example of what is wrong with today’s Seller orientated Real Estate Industry.

If the Buyers Agent has done his/her job, Buyers Remorse is not an issue. The property has been thoroughly researched, the market has been correctly identified, property values have been established, and with a thorough inspection, the Buyer knows EXACTLY what they are buying. The Buyers Remorse, if any, takes place before the offer is made. The Buyers Agent and the Buyer have discussed the offer in detail, all the negatives as well as positives have been weighed and the buyer can make the purchase decision with Full Disclosure and eyes open.

This is called "Fiduciary Representation", placing the buyers best interest first. This means providing the Buyer Full Disclosure and all the information needed to make the very best possible decision. It's about the Buyer feeling Good about his/her decision whether to buy or not.

"Buyer Panic" is simply the result of the lack of knowledge.

It's a Buyers Market ...But,

2010-04-13T11:55:00.000-07:00

It is a buyer's market due to the influx of homes on the market because of the increase in foreclosures. According to US News, this gap between the buyers' and sellers' markets is expected to narrow later in 2010.

In the Florida Waterfront Home market the inventory is very low. Over the past 6 months the number of waterfront Florida homes in the short-sale and foreclosure market have also diminished. Good waterfront foreclosures are hard to find in the Tampa Bay area. Overall, waterfront in Florida prices have firmed up.

Also, It may become harder to secure a loan. Mortgage delinquencies are up, which will likely result in the FHA tightening their belts on lending standards. Changes may include, "raising up-front cash requirements, boosting minimum credit scores, and perhaps charging more for insurance premiums" said US News.

The Fed's program to buy Real Estate backed securities to prop up the low interest rates has ended and interest rates have already began to rise.

Home Buyer Tax Credit Might Change

2010-03-18T05:35:00.000-07:00

The Worker, Homeownership, and Business Assistance Act of 2009 provides a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence and a tax credit of up to $6500 for repeat home buyers who have owned a home for five consecutive years out of the prior eight years. The tax credit is available for eligible purchasers who are in contract by April 30, 2010 and close by June 30, 2010.

H.R. 4701, introduced by Representative Eliot Engel (D-NY17), would provide relief to certain married couples who would otherwise be ineligible for the first-time homebuyer credit. The bill provides that married individuals filing a joint return would qualify for the appropriate credit even where one spouse is ineligible. For example, if one spouse is a first-time homebuyer and the other is ineligible, the couple would be treated as first-time homebuyers. However, such a couple could qualify for up to $4,000.00, as opposed to the full $8,000.00 tax credit had both spouses been first time homebuyers. The bill has recently been introduced in the House.

Realtors Must Divulge Commissions

2010-02-27T19:14:00.000-08:00

Realtors Must Divulge Commissions

If a builder offers a real estate company a bonus for selling its homes, that company could theoretically direct its agents to show those homes first. If those companies were exempted from providing full disclosure of their compensation, those incentives could be hidden from consumers

In North Carolina a 2008 court ruling requires agents and brokerages to disclose the compensations offered on properties shown to Home Buyers. This was a result of Real Estate Agents not showings properties with Low commissions in favor of Higher commissions and Bonus on another property. Realtors in Florida are NOT required to make this disclosure.

It is not uncommon for a listing agent that has found a buyer for his listing to refuse to take Higher offers from other Buyers. Why, even though his client would benefit from a higher price the Listing Agent would lose half the commission he would otherwise make.

Exclusive Buyer Brokerages provide Full Disclosure to their Home Buyers because they work directly for the Home Buyer. They have no obligations to the Seller so their is never a confect of interest. The entire buying process is completely open including individual home commissions and bonus.

Home Buyers are paid the Buyers Agent Commission which is offered by the Seller. We negotiate a mutually agreed Flat-Fee with our Buyers and are paid directly from our Buyer at Closing. In most cases the difference between the commission our Buyer receives from the Seller at closing and the Flat Fee, net our Buyers an additional savings.

Valentine’s Day message for Short Sale Sellers

2010-02-11T07:58:00.000-08:00

I work exclusively with buyers, so as such it may seem odd that I am sending a Valentine's message out to sellers, but in real estate there are always two sides to the deal, two sides to the story.

Invariably while working with buyers I have to show them a short sale property or two or more since right now the inventory of homes is flush with short sales. Foreclosures are actually rare because they come and go off the market very quickly; short sales languish. Many of my buyers ask me in an honestly surprised way how these short sale sellers could get into this terrible situation. Of course every story is a little different but most short sale sellers are there because something went really really wrong in their lives. Perhaps illness, job loss, reduction in hours, investment losses, lots and lots of reasons but all leading back to the same place, a place that feels and looks like failure.

Let’s flash back a few years, back to the early 60s. The economy in the US was booming. The children of that time are not called boomers without reason! Business was expanding, people wanted bigger homes for their bigger families, they were moving to a new place, the “suburbs” Track houses ruled. I was part of that history. In the early 60s my father decided that all of his children deserved bedrooms, so we moved to a much larger home. We all had our own bedrooms in a new home in a new development in the “burbs”. My Dad was commuting two hours each way each day so his family could have it better than he did. But things changed as we started to approach the 70s; war expenses, too much debt, recession loomed. My Father lost his job, we lost our home, he filed for bankruptcy. My Father never really recovered from the shame of that failure, even though he went on to re-establish himself and our family, the scar of that “failure” was always with him.

Flash forward to 2010, the US economy is reeling from some pretty devastating blows after a very frothy “boom”. I don’t need to list them since we are all living with them every day, but the end result is that many people are in trouble. Short sales are just one facet of the harsh life changes that this economic downturn has created in our lives. I truly do not believe that the majority of people struggling with foreclosure, with short sales are there because they want to be. As a people Americans do not like to fail, it is just not part of our national psyche. So this Valentine’s day I would like to ask that we look at the people and not the event. Can we all be a little more sympathetic to those short sale “deadbeats” – most of them really do not want to be there.

Waterfront Home Prices UP

2010-01-30T13:06:00.001-08:00

The below chart shows the Median Home Prices of Waterfront Homes in the Greater Tampa Bay area buy quarter in 2008 and in 2009. Price have adjusted from a high of $507k in the 1 st. qtr. of 2008, down to $366k in the 4th qtr. and then rebounding in the 1st qtr of 2009 to $449k. There was a big dip in the 2nd qtr. of 2009 coinciding with the Global Economic picture followed by a steady increase back to the $449k level.

The target properties are residential singld family homes with 3 bedrooms and 2 bathrooms that have direct Gulf Access. In 2008 there were a total of 300 of these properties Sold. In 2009 there were a total of 344 of these homes sold. This equates to a 14.6% increase in waterfront home sales.

Currently, an interesting trend has developed with DOM or Days On Market or the average number of days it takes for the subject property to Close. In 2008 the average DOM was 90 days. In 2009 the average DOM was 91 days however during the last quarter of 2009 the DOM dropped to 66 days. This is a significant change reflecting buyer demand.

Does a Seller Orientated Industry Look out for the Buyer….YES!

2010-01-21T12:02:00.000-08:00

In 1983, a Federal Trade Commission study revealed that over 72% of all home buyers mistakenly believed that they were represented by the agent who was showing them homes. The fact was that most agents showing homes were representing sellers. And by legal requirements of agency representation, agents must negotiate in the best interest of their clients (the sellers) by not withholding any information from them (possibly meaning they would reveal such important information as buyer's motivation, financial qualification etc.) and presenting their property in most favorable way. When consumers became aware of this, they demanded their own representation, and as a result, laws requiring disclosing representation were passed all over the country... An exclusive buyer agent does not have a conflict of interest since he or she only represents the buyer in a transaction. Exclusive buyer agents represent the buyer's best interest.

Florida is a "Transaction Brokerage" state. Due to the FTC and the widespread practice of "Dual Agency", where the seller's agent would represent both the Seller and the Buyer, Conflict of Interest was a legal problem that more and more brokerages were having to deal with. A Transaction broker walks a tightrope between the Buyer and the Seller. He can't provide Full Disclosure or Fiduciary Representation to either the Buyer or Seller. In fact, he doesn't represent either one. He is a "Facilitator" only. Why would an agent choose to operate in this fashion.... ? Because he/she is able to collect the commission from the seller (which he was originally entitled to as the Listing Agent), as well as the commission a Buyers agent would get to represent the Best Interest of the Buyer.

Some will argue that today, Florida Law protects the Buyer's interest from a Seller orientated Real Estate industry. However, in 2008, the state dropped the standing requirement that an Agent identify whom he/she was working for or represented at the very first meeting with a new client. This law was originally written to protect buyers from agents not disclosing they were really working for the seller.

Last month the department of Housing and Urban Development (HUD.gov) added the following statement to their “Home Buyers Handbook”, “It is your responsibility to search for an agent who will represent your interests in the real estate transaction. If you want someone to represent only your interests, consider hiring an “exclusive buyer’s agent”, who will be working for you.”

Exclusively Buyers Realty.com

GOOD Real Estate News

2010-01-20T13:46:00.000-08:00

It’s only the middle of January in a new year, and I am tired already… tired of all of the bad news. Okay I know that it is not politically correct to play “Pollyanna” and keep looking for the sunny side of foreclosures, shorts sales, high unemployment, a lousy economy… but as a break from all of the bad stuff I went searching for good news today. Here is what I found:

From the Associated Press January 20, 2010:
"Applications for new building permits, a gauge of future activity, rose 11 percent to an annual rate of 653,000, a far stronger showing than economists had predicted and the highest level of activity since October 2008."

FHA has temporarily dropped it 90 day “seasoning” requirement.
When an investor purchased a distressed property and re-habbed the house it could not be eligible for an FHA loan until 90 days had passed. This rule was put in place to protect buyers from “flipped” homes that may not be as valuable as the sales price would suggest. The only problem with this rule; homes were sitting on the market ready for sale and buyers could not get an FHA loan to purchase since the owner had not owned it for more than 90 days. This relaxing of the 90 day rule has a few strings attached, but for most home buyers, especially first home buyers, this will open up a lot of move-in ready homes in the price range they can afford. In time for them to use that “stimulating” first time home buyer credit!

Jan. 13, 2010 - Home sales rose 17.1 percent across the nation in December 2009 compared to the same month in 2008, according to the REAL Trends Housing Market Report. This gain came despite the loss of urgency from first-time homebuyers since the related tax credit that was set to expire at the end of November was extended through April 2010. More surprising is that the average price of homes sold rose 0.6 percent -- the first gain in over 4 years. Every region of the country showed gains in home sales with the Northeast leading with an increase of 29.8 percent in units. The Midwest was next with unit sales up 19.2 percent over the same month a year ago.

Of course the news is not overwhelming rosy, but even a little bit of sunshine helps warm a weary world.

Profit is Made the Day You Buy

2010-01-16T08:31:00.000-08:00

Have you heard of the old property buying adage, “the day you make your profit is the day you buy”? Most home buyers do not think about the profit their home can make them when buying; all they can focus on is the large chunk of change they are laying out in the form of down payments, closing costs and mortgages. But it pays for a buyer to look into the future. Perhaps you feel this is your “forever” home, that you will never be moving, but one thing recent history has certainly taught us… things change. Home buyers today need to plan for the future and that means thinking about the eventual resale of their new home. The most important key is to buy it right. That will mean doing your homework looking at today’s market and forecasting out to see what kind of appreciation you can expect. Not an exact science since there are tons of variables, but having an exclusive buyer agent working for you can help. When you hire your own buyer agent they will help you not only navigate your new home purchase, they will also help you look forward to the time when you will be selling. If you get the right deal on the front end, you will make money on the back-end. But you need an agent who is working for you, not the seller.

I was chatting with a neighbor recently. She purchased her home at the end of 2008. It was a bank owned sale and she used the listing agent to represent her. She ended up paying $200 more than the asking price. I knew this property, there was no bidding war going on and had been on the market for over 100 days; I had even advised my buyer client to come in 12% below asking since the market trends all pointed to price drops. My client opted for another property that better fit his needs, but my new neighbor bought this home over asking price during the downward slide of the market. Because she did not have someone in her corner she paid too much. When she goes to sell she will not realize the profit she could have made by buying right. The message – the agent you choose to work for you IS important. An agent listing a home is working for the seller; an exclusive buyer agent is working exclusively for you.

How Not to Buy a Foreclosure

2010-01-04T13:08:00.000-08:00

Foreclosed properties go by lots of names; bank owned, real estate owned, REO’s. Foreclosures are the topic de jour almost every evening on the news. There are websites, seminars, books and gurus providing information on the “how to” of buying these properties. Many stress that you do not need a real estate agent to achieve your goal, and that is true, you don’t need an agent to:

Find the foreclosure property
Determine the home’s true market value
Negotiate with the bank (owner)
Inspect the home
Determine if the property has any liens, county violations, outstanding utility bills, overdue home owner’s fees, non-paid maintenance fees, judgments, etc., etc.

The buyer can do all of this on their own, but unless you have a lot of experience dealing with the issues that usually surround a foreclosed home hiring an agent to help you purchase a foreclosure is good idea. Your agent, a buyer’s agent, should be ready to work for you 100%. If the agent you choose is actually listing the foreclosed property, he/she has signed a contract with the owner (bank) to sell the home for them, and to get the bank the best price. Even if the agent can legally “serve two masters” and theoretically not put one client’s needs about the others, in actuality, this is a tough role to play. To make sure you have the right buyer’s agent working for you, look for an agent who will work exclusively for you, an exclusive buyer agent. An exclusive buyer agent never takes a property listing to sell; they are totally in the buyer's corner. Buying a foreclosed home can be one of the best deals you make or one of the worst; having the right agent with the right knowledge and experience will ensure you get a dream deal, not a nightmare.

Buyers Agents Without Bias... EBA's

2009-12-31T07:27:00.000-08:00

Because we don't take Listings, we can show you ALL properties...
Without Bias ! We never have Listings or properties to PUSH.

Have you ever spent a day looking at properties with a "Buyers Agent" and none of the properties you were shown meant your requirements?

As Exclusive Buyers Agents our goal is to show you properties that meet your requirements. We have access to all properties in the MLS as well as FISBO's and un-listed properties. Our Buyers Brokerage and EBA's have no obligation to show any particular property. Our obligation is to show ALL properties that meet our clients requirements regardless of who has the listing. We'll find you the properties worth looking at.... we promise.

What HUD.gov say's about Realtor Representation

2009-12-18T06:08:00.000-08:00

Here's what HUD says, "It is your responsibility to search for an agent who will represent your interests in the real estate transaction. If you want someone to represent only your interests, consider hiring an “exclusive buyer’s agent”, who will be working for you."

Because 98% of all Real Estate Brokerages are Seller orientated, that is they sign a contract with the Seller, they can not provide Buyers Fiduciary Representation. Fiduciary Representation means Full Disclosure, Complete Confidentiality, seeing ALL properties meeting your requirements and putting the Buyers Best Interest First.

An Exclusive Buyer Agent can be found at brokerages that do NOT contract with Sellers. These Exclusively Buyers Brokerages never list properties for sale and work directly for the Buyer, usually on a Flat-Fee basis with the Buyer Agent commission going directly to the Buyer at closing.

A directory of Exclusive Buyer Agents in the US can be found at ExclusiveBuyerAgent.US or ExclusivelyBuyersRealty.com

FLORIDA - a Transaction Agent State - What does it Mean?

2009-12-13T14:02:00.000-08:00

Understanding “Transaction Brokerages”..

A Transaction Broker, in some state referred to as a Dual Agency, provide limited representation to clients. Their primary function is to FACILITATE a transaction between a Seller, usually their client and a Buyer. Florida is by statute a “Transaction Brokerage” State. Prior to 2008, an Agent was required to advise his prospective client who he represented. Today, that is not required. His representation roll has been reduced to that of a mediator.

a Transaction Broker can not provide these Critical Buyer services:

1… Be an advocate for you.
2… Negotiate the best price for you.
3… Negotiate the best terms for you.
4… Suggest an appropriate offering price.
5… Research on your behalf and bring to your attention, defects and/or problems.
6… Provide information about the seller motivation and position.
7… What the Seller paid for the property and his mortgage.
8… Research previous attempts to Sell the property.
9… Provide Fiduciary Representation.

Transaction (Agents) Brokers can and usually do switch from Transaction Broker to “Buyer’s Agent” to “Seller’s Agent”, back to Transaction (Agent) Broker.

The Question is: Who do these Agents really work for?

Answer…The Brokerage. All agents have employment contracts with the Brokerage they work for.

Ok, The Question to follow would be…

Who does the Brokerage work for?

Answer…If the Brokerage Lists properties for Sale, they have Legal Contracts with Property Owners to Market, Advertise, and Sell the owners property at the Price and Terms the Seller wants.

The Agents working for the Brokerage secure these Listings however, the Brokerage owns these Listing Contracts, Not the Agent.

All the Agents working for the Brokerage are obligated under these Listing Contracts and their Contractual Relationship with the Brokerage to Sell these Listings.

Now, the Obvious Question is…

How can the Brokerage’s Agents provide Buyers “Fiduciary Representation” ?

Answer… They Can’t. There is an inherent “Conflict of Interest” that prevents brokerages Contracting with Sellers from providing Buyers, “Fiduciary Representation“. It’s questionable that they can provide it to their Listing Clients.

The Solution…

Has been to choose up sides. Either you work with Sellers or work exclusively with Buyers! To this end, enter the Buyers Brokerage and Exclusive Buyer Agents. Because they do not take Listings or ever work with Sellers, they can provide Buyers Fiduciary Representation from Start to Finish. Finding an Exclusive Buyers Agent to work with may be more of a challenge then a traditional Listing Agent however. Searches on Exclusively Buyers Realty or FAEBA.org (newly formed Florida Association of Exclusive Buyers Agents) can get you to the right Exclusive Buyers Agent. “a Clear Choice for Today’s Sophisticated Buyer"

Waterfront In Florida's, Exclusive Buyer Agents

2009-12-11T05:41:00.000-08:00

"Aileen gave us hope.. "

We were very lucky to have found Aileen. She was knowledgeable, professional, easy to talk to and an all over great Realtor. Most importunately she made herself available to us and always returned calls and emails very quickly. She is the type to think outside the box in trying to find you your dream home. We had been disappointed in the past with the Realtors we had worked with, but Aileen gave us hope that there are still great ones working out there everyday, you just have to find them.

Sincerely,

Mr. & Mrs. Pat Crocket