|
|
|||||||||||||||||||||||||||||||||
Full Service Exclusively Buyer Brokerage Free Service a Clear Choice for Today's Sophisticated Buyer
Waterfront Home Prices
The above 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. Florida.. Looking out for Home Buyers ?
Looking out for the BuyerIn 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 the legal requirements of "agency representation", a Real Estate agent must negotiate in the best interest of their client. This requires 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. Consequently, laws requiring disclosing representation were passed all over the country... Enter the "exclusive buyer agent", an agent that does not have a conflict of interest since he/she only represents the buyer in a transaction. An Exclusive buyer agent works in the Buyer's best interest getting back to the legal definition of "Agency Representation". Florida’s Dual Agency Solution ?Florida is now a "Transaction Brokerage" state. Due to the FTC finding 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 had to deal with. Todays Transaction Brokers must walk a tightrope between the Buyer and the Seller. The Transaction Broker can't provide Full Disclosure or Fiduciary Representation to either the Buyer or Seller (some would call this leveling the field). In fact, They can't represent either one. They are simply "Facilitators". That's why they are called Transaction brokers. Now why would an agent choose to be a Transaction broker ? Simply, they are able to collect both commissions, the same as a Dual agent. Some argue that there is little difference. About Face….Some insist that today, Florida Law protects the Buyer's interest from a Seller orientated Real Estate industry and Dual agency. However, in 2008 the state of Florida DROPPED the long standing requirement that a Real Estate Agent must identify who he/she was working for or representing 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. Since then there has been a rush to "Buyer Brokerages" and the Exclusive Buyer Agent. The Informed Home BuyerLast 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." Reprint with permission from FAEBA.org blog
HUD looking out for BuyersHUD released its new Home Buyers Handbook and noted the following: "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."
Why the odds are Against Home Buyers in Florida !The deck is stacked against you.... In Real Estate, the norm is that the Seller of the property pays a fee for selling his/her property. This FEE is most always based on a percentage of the Final Sales Price. This creates an natural incentive for the Listing Agent to sell the property for the highest possible price. The higher the price the Higher his/her commission. It also creates an incentive for the Listing Agent to display and promote the property in the most favorable light. This is how the industry as a whole functions and why it has always been a Seller Orientated Market. All the incentives are in the Sellers favor. As a BUYER, the incentives still work, but they always work AGAINST you. If you are using a traditional Buyers Agent or a "Transaction Broker" the incentive is to get the Highest Price. It's the commission thing again. With an Exclusive Buyer Agent you have an agent that never works for sellers, will work directly for you and provides you the option of work on a Flat-Fee basis. This is a paradigm shift and creates a Buyer Orientated Marketplace. Because Exclusive Buyer Brokerages and Exclusive Buyer Agents work exclusively with buyers, they provide Fiduciary Representation and Full Disclosure to their Buyers. |
|||||||||||||||||||||||||||||||||