The Florida Association of Realtors published an article recently about the bidding wars that we have seen on some low priced homes in the Florida market.  It is an interesting phenomenon - many people expect to be able to get homes at far less than the asking price, but we are now seeing cases of homes selling for MORE than the asking price.

In this kind of economy, that is certainly not what you'd expect!  But there are underlying reasons behind this situation.  These "bidding wars" are not breaking out on every property - in fact, the reason this is happening is because these properties are a rarity.  In a market filled with foreclosures and short sale properties, many in disrepair and banks taking months to even respond to offers, a home in good shape with a standard sale procedure in a good area is a hot commodity.  The old rules are still in play - location, location, location - with a new twist: priced right, priced right, priced right!

So how can you get that perfect property?  First off, it is important to act quickly.  Offers will be coming in rapidly, and you want to be sure to get yours in and have a chance to respond to other offers if necessary. 

Second, cash offers are greatly preferred at the moment.  If you can place a cash offer, you may be able to beat out some higher offers that require financing and waiting time for the seller.

Finally, have representation!  An exclusive buyer's agent can help you structure your offer to be most attractive while ensuring that you are still protected.  We offer advice and opinions based on our past experience in these kinds of situations. We can help you control the emotion of the situation - and warn you if you are overpaying. 

In my last blog, I discussed For Sale By Owner properties and the issues surrounding purchasing a property directly from a seller as opposed to from a seller's agent.

This time, I want to discuss are the issues with pricing a For Sale By Owner property.  For Sale By Owner.com's tips for FSBO sellers claims that "over-pricing" is one of the major reasons that these properties don't sell, and suggests that these sellers price their properties 5 to 10 percent above the normal market price.

This is not necessarily an attempt to make as much as possible by the seller.  Many sellers do not have the tools necessary to price a property correctly.  They may be basing their asking price on another sale in the neighborhood that they heard about a year ago, or on a price that they saw in another area, or any other number of factors.  And of course we all know the market has changed in the last year or two!

The rules for bank appraisals are tougher than ever these days.  An improperly priced For Sale By Owner property will likely not appraise if the owner has set the asking price above the normal market price.  So do you want to overpay for the property?  This also becomes an emotional issue for the seller - "My house is worth more!" is a common refrain.

This is why it is so important to research a For Sale By Owner property before purchasing it.  An Exclusive Buyer Agent can prepare a comparative market analysis to help determine the proper price for a property.  Your agent can buffer the emotions and help the seller see reality...based on the facts. 

A For Sale By Owner property may indeed be the right property for you - but an Exclusive Buyer Agent can ensure that the property is the "great deal" you are looking for.

In the any marketplace, most buyers are interested in "a deal" - a good property at a good price.  One place that buyers often turn to are "For Sale By Owner" properties.  These properties can indeed be a "great deal," but it is important to understand the issues surrounding them before you decide that this is the right kind of property for you.

One of the most important facts to consider is that real estate selling agents are legally obligated to make sure that their seller discloses any problems with the property that he knows about.  If a seller is found to be trying to hide defects in his or her property, the contract can immediately be cancelled by the buyer.

For Sale By Owner properties are not sold by real estate professionals and are not governed by the same rules - the owner of the property is not required to disclose these defects.   As a buyer, you are not nearly as well protected when purchasing such a property.  In many ways, purchasing a For Sale By Owner property functions under the "caveat emptor" principle - let the buyer beware!

If a for sale by owner property is indeed the property for you, having an exclusive buyer's agent ensures that you have the maximum amount of protection when you buy.  Having a real estate professional involved in the transaction also helps should any legal issues arise - an exclusive buyer's agent can write a contract that helps avoid such issues so that you don't have to risk going to court!

In part two, I will discuss for sale by owner properties and how they relate to the current market - find out how they setting their prices!

It's been awhile since I have been able to update my blog - I have been very busy with launching my new website at www.yourspecialagent.com, and I wanted to "relaunch" my blog in order to go with my new website.  It is amazing how much work and time go into creating a website and it gave me a new level of respect for the people that design and build them.

If you have any feedback about our new website, feel free to contact me or leave a note here in the comments.  I'd love to hear what you have to say!

I should be updating this blog at least once a week with information about the real estate market and my own personal thoughts and experiences.  I have a link on the website to bring you here, so check back from time to time to see my new updates.

If you have any particular subject you'd like to see me write about, you can leave a comment here on the blog or just contact me at paula@yourspecialagent.com

The Central Florida real estate market is full of great opportunites for the smart homebuyer.  If prepared, a buyer is in the driver's seat and can negotiate the lowest price and best terms.  Of course, you must do your research and make sure you don't pay too much for a home. 

But before you spend hours browsing the internet and driving around looking at homes, you must know how much you can afford.  Don't get "pre-qualified" online and assume the payment you see on your screen is what your total monthly payment will be. 

Find a reputable, experienced lender who is located in the area you want to buy, talk to the lender personally and get "pre-approved" - not "pre-qualified" for a mortgage.  Find out what your monthly principal, interest,taxes and insurance - called P.I.T.I. - is going to be.   This is your TOTAL monthly payment.  If you are putting less than 20% down, you will also have a fifth amount in your monthly payment called PMI (private mortgage insurance).  If you are buying through the FHA program, instead of PMI insurance in your total monthly payment, you will have an FHA insurance premium.

Also, ask the lender to give you a GFE - a Good Faith Estimate of your closing costs.  In addition to closing costs, you will need money for a home inspection, termite inspection and any other inspections that might be prudent for the particular home you are buying (mold, septic tank, well, etc.)

A pre-approval from a lender puts you in an excellent negotiating position and it's your green light to begin your home search.   Once your financing is in place, you are in the driver's seat!

A resounding yes! I am shocked at the great buys in the Orlando area.  Gorgeous homes only a few years old in great areas are available for extremely low prices.  Buyers must seek and identify an exclusive buyer agent - an agent that works for a company that does not take listings - that knows how to negotiate the lowest price and best terms for the buyer.  It's imperative that a potential buyer team up with an agent that is only looking out for the buyer side. 

I have been a realtor for over 33 years and have seen many buyer and seller markets.  I admit I'm one of the many people that said "There was this great house I should have bought in ____ but I was waiting for the prices to go down".  If you can buy now, hire an exclusive buyer agent that knows what they are doing, has good references and interview that person!  Ask for references and call at least three.  Better yet, call five or six.  It's that important.

Paula J. Howard - Broker/Owner

YOUR SPECIAL AGENT, LLC

These are the first two questions I'm asked when I tell someone about my company and what we do.   So let's start with the first question:  What is a Buyer Agent?

A Buyer Agent is a real estate agent who represents the Buyer in a real estate transaction.  A Buyer Agent's job is to help with all aspects of the purchasing process:  locating properties, helping in the negotiation process with the Seller, making sure that the proper inspections are taken care of, preparing contracts and other documents and much more.

However, it's important to keep in mind that not all Buyer  Agents are Exclusive - many work for a company selling its own properties.  While a Buyer Agent is not trying to sell you properties, they may be inclined to push properties that their parent company is selling.

Exclusive Buyer Agents, on the other hand, do not take listings.  They do not work for Sellers.  There is no potential conflict of interest when working with an Exclusive Buyer Agent since they have no properties to sell.   They focus solely on finding the best property for their Buyer clients.

I think that in answering the first question, I somewhat answered the second.  Using the services of a Buyer Agent is important to put you on equal footing with the Seller:  the Seller has a real estate professional working on his or her side, so you should have one on yours as well.  An Exclusive Buyer Agent is even better, because you don't have to worry about any ulterior motives. 

I like to think of it this way:  If you are going to court, you hire you own lawyer.   But you wouldn't use the same lawyer as the opposing side.  So why would you use the same real estate agent the Seller is using?

If you are looking for the services of an Exclusive Buyer's Agent in or around the Greater Orlando area or simply want some more information about Exclusive Buyer's Agency and my company Your Special Agent, feel free to contact me at paula@yourspecialagent.com or by phone at 407-351-7672.  You can visit my website at www.yourspecialagent.com.