Sarasota Real Estate News

Sellers Beware!

I just heard a television commercial where a gentleman saved $20,000 selling his home and paid a 2% commission. This is advertising  a real estate "referral company" in Tampa, Florida. In this case, Seller pays at least 2% if he or she sells the home themselves or as much as 4.5% commission if there is a buyer's agent involved (co-broker).  Sellers are matched with only one agent, so there is not an interview/selection process. After the home is sold, the listing agent pays 25% to 35% referral fee from their 2% commission to the referral company. I was glad to know that this Tampa company uses local real estate agents and the agents' own managing brokers are responsible for overseeing each transaction. This company seeks top-producing agents who have closed a minimum of 50 deals in the past 12 months.  I don't see it. The top-producing agents I know would never give away 25% - 35% of their commission. They don't have to.

Buyers Beware!

I am seeing more homes on the market that are investor-owned renovations. What you'll see in the public remarks of the listing: UPDATED RENOVATION!  What is the definition of updated and renovation? Perhaps new laminate flooring and painting the interior of the home. One of my out-of-state clients from up north wanted to buy a home without seeing it in person. A home we put under contract had new kitchen cabinets, appliances, flooring, and bathroom vanities. The home inspection revealed a rat infestation in the attic, the pool deck was sloping, the pool may have been leaking causing the deck to fail, and the concrete had been cleverly patched. Most of the windows did not operate properly, several sprinkler heads were broken outside, the electrical panel was decades old. Although a dishwasher was a listed appliance,  there wasn't one and there was no room for one. Buyer smartly terminated the contract during his due diligence period. The home was originally trashed, renovated by an out-of-town investor, and purchased by another out-of-town investment company that  was trying to make a profit. It was seriously overpriced. Two investors tried to make a profit from this renovated home.

This Buyer said to me, "I want a home in a good area and am depending on your for your advice." Wrong! We agents don't steer our customers/clients away from any area. I told him that he needed to contact the local Sheriff's Department for a crime report. 

 I previously showed this buyer another home via FaceTime that he found online and at the end of the showing, he said, "That's my home. Your job is to get it for me. No inspection period, no contingencies," he said. So I spent more time there, pulled back the pool cover and  the pool needed to be resurfaced. He backed away. This multiple offer bidding frenzy is making people crazy. 

A different investor I was with this week buys, renovates, and flips.  We looked at several "renovated" single family homes in Venice listed in the $300's. His term for the homes was "half-*ss renovations." It's fun going through properties with experienced contractors who know in five minutes if the home is a good deal or a money pit. I research properties before taking buyers out looking for the age of the roof and AC--big ticket items in Florida with our summer heat. Two of the homes we were scheduled to see had been cited by Sarasota County for doing work without a permit.  It's usually neighbors who turn contractors in for not getting the required permits and the contractors are  fined or face other penalties. It's easy to spot permits for homes that are being built or renovated. There is a permit box placed on a 5' sign in front of the property or posted on the front door. Can't miss it. Just know that Sarasota County does not play around with people who do work without permits (electrical, plumbing, windows, roofs).

So Buyers, always, ALWAYS get home inspected. Don't be so eager to put in offers thinking that waiving inspections will give you a competitive edge in multiple offer situations. That's like meeting your blind date at the alter. Think about it....buying a home  will give you a return on your investment and many happy years, or you could be stuck with a property that will take years and maybe tens of thousands of dollars to repair.  Buyers remorse is not fun and very fattening for those of us who turn to carbs for comfort.

In conclusion, interview local agents and choose one you like who has a good track record. Look at the resume, testimonials, and listen to them. Does it matter who your agent works for? Maybe....if they are inexperienced, they should have their license with a large real estate brokerage that offers agent training. If an agent is experienced and the training wheels came off, the company brand is not important. Many experienced, well-trained agents (like me) moved on from a large brokerage to a "100% commission brokerage," because it's more financially advantageous. Most "100% commission brokerages" do not take on new agents because they want an experienced team.

See my blog from last week about General Colin Powell. The success and integrity of your agent is what matters, so check him or her out and if you're not happy, don't hesitate to terminate your relationship and move on.

Praying for the unfortunate citizens of Ukraine.

Linda Holley, Realtor, GRI, SRES, Fine Properties, Lakewood Ranch and Venice, Florida. Here to serve your real estate needs. www.LindaHRealtor.com 941-914-4914