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Florida real estate buyers have unrealistic expectations.  

Real estate buyers are looking at different sites and seeing price evaluations on neighborhoods. 

Buyers may not realize the information is not current or accurate because those prices often incorporate transactions recorded 6 months to a year ago which would not be used by an appraiser.  

Foreclosure Websites list properties not in Foreclosure. 

Some foreclosure databases obtain information from tax assessors.  Real estate buyers make assumptions when viewing internet databases that all delinquencies are foreclosures or pre-foreclosures, which it is not the case.

Real Estate Buyers are looking at sales history as far back as a year.  Property values are changing month by month in many areas.  Sales 6 months ago may not reflect comparable sales in the current month.   

Real estate buyers are making  bids on properties expecting large and unrealistic seller concessions off the listed price.

A buyer may find an online valuation module showing someone paid $50,000 less than the list price, for a similar property.  There are of course price ranges and circumstances that would justify this type of decrease on some occasions.  It is not common for a seller to drop their price $50,000.  If they wanted to take $50,000 less, they would list the property for $50,000 less to attract a buyer. 

There  are many circumstances where a seller has their property significantly over priced.  However, the seller’s agent is not likely to be able to talk them into a price reduction. Because the seller’s agent could not initially negotiate with the seller.  The listing agent is  not likely to be able to negotiate a deal between an overpriced seller and a buyer.   

Logically, if a seller wants to sell their property at a certain price they have it listed at or near the price they expect their listing agent to obtain for the property within a reasonable range.   Most listing agents provide a range of pricing for sellers to choose from.  Most sellers choose they highest price option.  This allows the seller to have a range with which to negotiate their price. 

It makes no sense to finding just one house you really like, which is over your price range and then expect the seller to pay “low ball” with you.   You are likely to go home disappointed. 

Real estate buyers should search for properties in the price range where they can actually afford to purchase.   If the property is priced right, in a desirable location it is still likely to sell at full price or more.  Although, the real estate market is in transition, do not assume any type of negotiations in the Winter in Florida.  Foreign investors are still overpaying for properties with cash and brokers are still buying their own listings and flipping them at higher prices.  The competition for primary and second homeowner’s is fierce for buyers in Florida. 

Be open minded to a bidding war on a great property.

When a property comes on the market and you have already look at 20 homes,  you know it is a great property, make your offer quickly.  There is an advantage to being the first to make an offer.

When you are caught in a bidding war, I have some common sense suggestions to help beat the other buyers.

When it is time to make your offer and negotiate you will receive the most recent comparable sales information available.   Florida Buyer Broker, Beverly Howe will negotiate aggressively to help you obtain the property for the lowest possible price and best terms for you the buyer. 

Real estate buyers looking at maps online, don’t know what it is really like until they visit the community.

TIP – Enter the address in MapQuest or Google Maps and choose an aerial or satellite  view to see what is surrounding the property.  It will soon become evident if there is a major highway in the back yard or if it is located in the middle of nowhere.   

Property Condition 

Typically, when a property is under priced, there are issues that are not readily visible to a buyer who is looking online.  If it seems too good to be true, there is always a reason.

If it’s good it’s gone. 

When a new listing looks good, is priced right, consider it gone, unless you are available for immediate viewing and ready to make an offer.  If you need to get plane tickets to see it, consider it gone before you get to Florida. Make sure you have other properties of interest so you time and money is not wasted trying to purchase one property. 

What real estate buyers don’t see when looking on the internet at homes for sale. 

Many properties buyers see on the internet turn out to be big disappointments.   Buyers arrive to view the inside of homes and condominiums, their vision, noses and hearing tell them most of what they need to know to select the right property.     I advise all buyers not to purchase a property sight unseen via conversations with the seller’s agent, builders or information obtained from the internet.

When there are no photos of the back yard or the verticals are pulled closed in front of the sliders, there is usually a reason why the view is not showing.   

There could be 4 or more air conditioning units outside the master bedroom window next to the screen porch!

Looking on line you can’t smell Chinese drywall, mold, pet odors, nicotine.

TIP – Plan on having some money set aside to make improvements like fresh paint and carpet.  “A little TLC” comment on a listing, usually means thousands of dollars in renovations are needed. If you are financing and qualified to spend more, be prepared to consider spending a little more for a property in better location or condition. 

If you increase your criteria when you increase your price range, you will not get a better property, but just more space to renovate. 

Banks will not finance a condominium for real estate buyers when there are too many owners in default of their fees, or with too many investor units.

This limits the choices offered to buyers who must finance to purchase.   This problem is more common in new developments.  Or areas where there are many foreclosures.  New condominium developments typically have relationships with financial institutions who offer financing to their buyers.   

The sellers agent may not  do not check the homeowners association for numbers of delinquencies or  investors in a community.   The burden is on the buyer, the buyers broker and the lender  to check with the association. 

The government makes an exception, with some of their foreclosures.  If a buyer is getting an FHA loan on a Fannie Mae or Freddie Mac foreclosure.  FHA may allow a one time approval on a condominium with foreclosures or bad financials in order to get rid of the property.  You may have a problem reselling when you obtain an exception for your loan to purchase. 

Real estate buyers need to do not do their homework regarding the cost of ownership prior to their arrival. 

Real estate buyers calculate their cost to own a property based upon information they see online; condominium and homeowner fees, “homestead” taxes assuming their cost will be the same as the current owner.  All the cost for ownership in many communities are not necessarily listed in the seller’s listing information.

A real estate buyer will get “pre-approved” for a mortgage without knowing what their loan cost will be from the lender.  Buyers need to ask for and get the closing cost from a lender before coming to purchase.

Many real estate buyers go home disappointed when they realize they can not afford to buy a property. 

TIP – Calculate your cost on the highest purchase price, fees and taxes you would be willing to pay.  Schedule a no obligation buying consultation with Florida Buyer Broker. 

There are many obstacles when making offers on foreclosure properties.

  Click HERE for more information on FORECLOSURE properties. 

TIP – If you want to contracted to purchase a property on your trip to Florida don’t put all your hopes into one long drawn out foreclosure transaction.  You may be out bid by another buyer while waiting on a response from the lender. 

Listing agents are listing short sales under market value.  Each new short sale listing in a neighborhood is undercutting the already lowest priced property. 

What can a real estate buyer do to make the most of their efforts to purchase in Southwest Florida?

Be sure there are enough properties that appeal to you as regular sales, in your price range, not just foreclosures or short sales.

All buyers become much more “picky” than they expected when they actually begin to view properties.  Expect the selection process to be much more difficult than you anticipate.  Focusing on your major priorities (Have to Haves) and being realistic about what you expect to purchase will help you successfully obtain your piece of paradise.

“The most important thing a buyer can do is first of all work with a buyer broker.”

As stated by AARP and the Consumer Federation of America in REALTOR® NEWS

There is NEVER a conflict of interest between the buyer and the seller when the buyer chooses to work with Florida Buyer Broker.  A single agency buyers ONLY real estate office, serving buyers with integrity, loyalty, honesty, skill and expertise. 

Beverly Howe, buyer broker relationship with buyers is always Single Agency representing buyer’s only.  Her buyer clients receive undivided loyalty throughout the real estate transaction.  See Fiduciary Duties required by Florida Law and Brokerage Relationships , Buyer Agent Disclosure for more information.

Click here for More Information about  Beverly Howe

Beverly Howe, Buyer Broker/Owner, Florida Buyer Broker has an outstanding reputation cooperating with other agents and brokers Florida.

Sellers listing agents  have confidence in buyers who obtain the professional services of  Florida Buyer Broker.

When you are considering making one of the largest investments of your life… call Beverly Howe first! 1-800-283-7393 or 1-239-601-2013

Call NOW to start your buyer consultations. Please leave a message if I miss your call with the best time and day to call you back. I love talking about real estate with buyers.   

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