Some Jewel Advice

KNOW THE MARKET

The Florida real estate market is unique and robust. While the real estate market may have begun to level off in other parts of the country, Florida remains a seller's market. The influx of

people moving to Florida and homeowner's cashing in on their unexpected gain in equity, are

finally able to move on to the next stage of their life.

What does that mean? A Seller’s Market? It means that there are not enough homes for sale to satisfy the consumer demand, (the desire or need), causing a shortage of homes available, and consequently the sales price goes up. The buyer’s must “out-bid” one another, in a bidding competition, or bidding war as they are sometimes known. This causes home prices to increase quickly, and dramatically.

HIRE A REAL ESTATE ATTORNEY

Consulting an attorney is highly recommended, especially if you are not using a real estate agent. However, it should be noted, a real estate agent is never a replacement for an attorney. It is advisable to consult an attorney for any transaction of this magnitude, and complexity. In some states, an attorney is mandatory in all real estate transactions.

PRE-APPROVAL WITH MORTGAGE LENDER

Find a banker you are comfortable with or get a recommendation from a Realtor. Ask them to

do pre-approvals on buyers that come through your house. Meet the Buyers at the door Meet them at the door, introduce yourself and ask that they sign in, before you show them the home. At the same time, let them know a mortgage pre-approved letter must accompany all offers.

COMPARATIVE MARKET ANALYSIS (CMA)

Realtors prepare a Comparative Market Analysis for their clients. This involves a thorough study of the recently sold and active listings of homes in the community most like their customer's property. An examination of the pictures is helpful to determine how the property compares to the competition. This analysis should also include examining the county property appraiser's site for any sales not on the MLS (Multiple Listing Service).

PRICING YOUR HOME - DON'T OVERPRICE!

Naturally, homeowner's will want to gain the most equity possible from the sale of their home, while taking care not to overprice the home. Overpricing will have some very real and negative consequences. Overpriced homes typically stay on the market longer, and when the homeowner finally accepts that they must lower the price, buyers will now wonder and believe there is something wrong with the house. Some buyers may even avoid looking at the home altogether, while the buyer's that do make an offer, often offer 15% - 20% less than even the newly lowered price. Still other buyers won't make an offer at all because they don't want to insult the seller by giving a low-ball offer. On the flip side, DON'T UNDERPRICE! Ironically, the same thing happens!

SELLER PRE-INSPECTION

The condition of the home compared with other similar homes is another indication of where and how to price your home. The buyer will have the right to an inspection, and they may ask for a reduction in price, or some other concession for defects noted on their inspection report. Therefore, I recommend the seller have their own inspection prior to pricing, to be aware of any defects that may come up and cause an unnecessary, adverse effect on the price. A negative buyer experience is very costly to the Seller, pricing the property lower so you don't have to bother with the repairs, can reduce the price of your property, the this market by a remarkable rate. Always think with a "Buyer's Mind". Their faith that these are the "only problems" the property has, is ZERO.

PRE-INSPECTION REPAIRS

The minor repairs should be corrected, however the seller may also note the necessary repairs and let any prospective buyers know well in advance, that the price has been adjusted accordingly. I do not recommend this approach. Or Sellers can offer the buyer a credit for said repairs by offering to pay for some amount of the closing costs. Buyers with a limited amount of cash after their down-payment will love this! And, the Buyer will have a choice where and how to spend the money. If the Buyer is financing the purchase, the bank will order an appraisal of the property.

Once all repairs have been completed, I would suggest to a Seller to get an appraisal before coming to a firm price decision. if the buyer is financing, their lender will require an appraisal. But this appraisal is to avoid pricing problems. In this market, seller's may be pleasantly surprised by the appraisal, once all the cleaning and repairs have been completed. In any case, it will add confidence when deciding on the best price to sell the home. In addition, a seller's appraisal is an excellent negotiating tool, and should help with the buyer's confidence in their offer as well. Jewels of Florida includes an Inspection and an Appraisal.

BUYER'S INSPECTION PHASE

The buyer has a right to order inspections during a certain period to complete any chosen due diligence inspections, usually within 7 - 10 days. While inspections are not required, for a cash sale for instance. The buyer may or may not wish to pass on the inspection. However, a buyer’s lender will most certainly require a basic home inspection, (in addition to the one Jewels of Florida provides). These inspections should include a termite inspection, and a 4-point wind mitigation inspection. The 4-point mitigation inspection is an additional charge and covers the roof inspection, including the strapping at the roof-truss, the garage, outside doors, windows and/or shutters. The buyer has a right to these inspections, whether the contract is, As-Is, or not. However, the cost of these inspections is customarily the buyer's responsibility.

MANDATORY FULL DISCLOSURE STATEMENT

Florida State laws require mandatory full disclosure by the Owner to the Buyer, with some exceptions, making known all facts or conditions which may adversely affect the value, or the desirability of the property. So, if the rug covers an unsightly stain, the buyer should be made aware of what is underneath the rug. Additionally, should the property inspection fail to reveal a known deficiency, it is still the owner's responsibility to disclose. Err on the safe side. It is much better to over-disclose than under-disclose. The owner's failure to disclose may very well lead to costly legal problems. It should be noted that major items, such as the age and/or condition of the roof, and defective structural components can effectively negate some mortgage loan approvals.

SHOWING YOUR HOME

Buyers want to be able to comfortably view your home and be able to openly communicate without judgement. This is one way we go about resolving objections. Many like to work their objections out aloud, with a partner to get important input. Without the freedom to go through

this process, the buyer is left with a less than optimal experience. We want potential buyers to have a great experience! Treat them like Royalty! A Realtor should be present when showing the property to potential buyers and their agents. As a Realtor I will be there to represent you and answer any questions the buyer or their agent may have. This lets the buyer and their agent comfortably view the home, providing a more private showing experience as well as being able to provide valuable feedback.

SELLER’S NET SHEET

A Net Sheet will be provided, showing an estimate of the costs involved in selling a property, and a fair estimate of the profit to expect at closing. Some of these costs include an appraisal, title search, doc stamps, and closing costs. However, there may be other costs incurred, such as inspections, repairs, and attorney fees.

BUYER’S GOOD FAITH ESTIMATE

Buyers will receive a Good Faith Estimate of closing costs, within three days of submitting your loan application. The estimate is based on the loan officer’s prior experience, and is required to be within a reasonable range, so you’re not astonished when you arrive at the closing table. I will be happy to go through the GFE with you, answering your questions you may have. It is always a good idea to go over these before closing with someone knowledgeable in title closings.