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 Buyer
In 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 Buyer
Last 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 Buyers
HUD 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."
My Question is..... are there still Buyers that will knowingly pay a Dual Agent or a Transaction Broker a 3% commission for NOT providing them the Fiduciary Representation they deserve?
Go To Home Searching HERE
National Association of Exclusive Buyers Agents...
Push for "Full Disclosuer" for Buyers on Home Purchases
WASHINGTON (MarketWatch) -- Question: I'm a very concerned buyer. Recently I placed an offer on a house and was turned away by the selling agent, who claimed he had too many offers. To make a long story short, he was not taking anymore offers due to the fact that he wanted to collect the maximum commission by representing the seller and buyer. ( this is known as a "Transaction Broker" in Florida )
If other potential buyers were interested in the house, he would say 'we already accepted an offer' reducing or eliminating others from the American dream of purchasing a home. This information was leaked to me by a close friend of mine who works in the same office as the agent. Even if other offers were higher, or the buyers were better qualified, he wouldn't accept them. He was only taking the offer from the buyer that he was representing to max out his commission. NOT FAIR!!!
Still Calling on Realtor Yard Signes ? What you should Know.
Read complete article HERE
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Bathroom Break in your own Pool?
Dual Agency Costing Buyers Thousands!
"An article on MarketWatch today described how a Realtor® was refusing additional offers on a property because he wanted to maintain his “dual agency” and the higher commission that would result if his buyer made the deal." This is a lucrative practice because it doubles an agents commission. It also deprives the Buyer from obtaining his/her own fiduciary representation in the transaction. Buyers that go to Open Houses or call the phone number on yard signs are especially at risk of this tactic.
The article pointed out that many consumers truly don’t understand how “agency” works and are unsure who their agent is representing. National Association of Realtor studies support this finding. Surveys have shown that 2/3 of buyers were not told who their agent represented during the first meeting, an oversight with the potential to cost a buyer thousands.
Finally, the article portrayers this as "one rotten apple" however, it is far more common then one might expect. It's not hard to figure out where the extreme distrust of Realtors® comes from. The public comments made also expressed the belief that even those agents who are reported to the National Association of Realtors for unethical behavior.. are rarely punished. http://activerain.com/blogsview/1186227/realtor-criticisms-bum-rap-or-real-bums-
This is why Buyers are turning to Exclusive Buyers Agents. An Exclusive Buyers Agent, as opposed to the traditional "Buyers Agent", NEVER take Listings or represent sellers. Additionally, the Exclusive Buyers Agent's Brokerage NEVER take listings or works with Sellers to further eliminate any "Confect of Interest". The Exclusive Buyers Agent works 100% with Buyers and has a fiduciary representation to his Buyer only. The problem of "Double Dipping" and Dual Agency or Transaction Representation is eliminated. In Florida, as of 2008 a Realtor does NOT have to identify who he is working for or representing. For more information on Buyer Representation go HERE.
Market Shift: More Houses Get Multiple Offers
Julie Holt of Tarpon Springs, Fla.-based Anclote Title Services says 10 percent of the homes for sale are generating more than one bid.
Experts say markets hit hard by foreclosure are seeing more multiple offers, as residential price declines make homes more affordable and banks low-ball asking prices on distressed properties.
"If a house is in a good neighborhood, is maintained and is a good value, it'll get multiple offers," says Holt.
Although many markets are far from fully shaking off the downturn, the pick-up in multiple offers is a reason for optimism.
"When you begin to see people willing to fight for a property, that's a good sign," says Beth Peerce, treasurer of the CALIFORNIA ASSOCIATION OF REALTORS®. "We are beginning to see the beginning of the end of a disaster time."
Source: USA Today, Julie Schmit (5/6/09)
Bargains Hard to Find In Attractive Areas
Potential buyers in areas that were hard hit by the housing downturn have read about bargains, but only find it disappointing when they go shopping.
"Every open house I've been to has been a zoo," says first-time home buyer Sam Rivero, who has looked at 35 properties during the last three months. "If you follow what the media say, you'd think sellers are desperate to sell a house, but when you get there it's totally the opposite."
When the real estate bubble burst, it didn’t affect the mid-priced market, said real estate information firm MDA DataQuick. Instead, it created opportunities in troubled neighborhoods and slowed sales in the market of homes priced above $1 million. But in areas where most of the homes sell for $400,000 to $800,000, there are few discounts to be found.
Even the foreclosure market has slowed, says University of Southern California Professor of Real Estate Tracey Seslen. Seslen said lenders with foreclosures are supporting market stabilization and releasing only a few homes at a time to avoid flooding the markets.
"The biggest problem," says Phyllis Harb, an associate with RE/Max Tri City in La Canada, Calif., "is that people are overreacting to housing statistics, thinking they can come in and make an offer 20 percent below price."
Source: Los Angeles Times, Chip Jacobs
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