Buyers who want a deal need to get ahead of the curve or risk missing great buys. Have your pre-approval letter ready if you are financing or your proof of funds if paying cash. Also, narrow down your options and be clear about what you want to buy ahead of time. Discuss this with your significant other so when you see a home you want to make an offer on, you don’t waste time, not even a second.
Real estate in Florida is extremely fluid. Those hot deals in your favorite target area last days, not weeks, before they are pending (under contract but not closed) and soon gone! Investors, snowbirds, locals and even Realtors are buying up Florida short sales, bank owned properties and straight sales. Flipping is back in full-swing.
The challenge for the professional Florida agent is to motivate and inform the buyer so they understand that seconds do count without coming off as high pressure. Never waste a moment when presenting your offer because if you like the property, there are likely another 2 to 10 buyers that see the same value as you.
Put your best foot forward too. Unless you are a wholesaler or flipper, paying a few thousand more to get your deal is advised.
I have worked with buyer clients in Miami, Tampa Bay, Ft. Myers and Sarasota. My goal is always to get my clients the home they want at the best deal possible but in order to do so, I have to be real with them and in some cases, being a little pushy is necessary in order to not lose the deal.
As a discount MLS broker in Florida, my sellers offer some of the best deals to be had. Since investors and people looking to liquidate property fast use my Florida flat fee MLS service, our listings in Gainesville, Tallahassee and Panama City, Melbourne, St. Augustine, Central FL and South Florida are sometimes under contract within days. Despite the economy and saturation of Short Sale listings and foreclosures, Florida homes that are priced well are still in high demand.
GetMoreOffers tries to find every avenue to help you with all of your real estate needs. In addition to our 7 MLS Flat Fee listing programs, GetMoreOffers searches for ways to help buyers find programs that will assist you in getting that dream home.
In Florida, there is a program that is helping home buyers get the home of their dreams and yet many people know nothing about it. REO's (Real Estate Owned) are the properties to buy these days as the market is still fluid and good for investment buyers. Many REO properties are listed well below the general market price and most of these properties will accept traditional FHA (Federal Housing Administration) financing. The problem with these bank owned properties is that many of properties are in dire need of repair. A buyer approved for a FHA loan may get turned down if the repairs exceed the approved loan price. This is where the 203k Rehabilitation Home Mortgage (Section 203K) comes into play. This program is seldomly used and offers FHA home buyers up to $292,500 to be rolled into their FHA loan for repairs. Section 203K allows more buyers to purchase a home and raises the value of the home from the start.
If a buyer was to purchase a home appraised at $250,000 but the home needed $50,000 in repairs, many buyers were left out in the cold since the FHA loan wouldn't cover the additional $50,000. Section 203K started decades ago. The way it works for the buyer is that the FHA insures not only the loan but also insures the money for renovations and repairs. The extra insurance coming from a government funded loan program allows the lenders to feel more comfortable in allowing a loan to be accepted.
The renovations must meet HUD (Housing and Urban Development) standards for energy improvements like heating and air conditioning, window caulking and weather stripping. Buyers can even use the loans to make cosmetic upgrades, including new floors and appliances. The money is monitored in a FHA escrow account and also gives buyers many finance options depending on what the cost of the repairs might be. The loans require only a 3.5 percent down payment and come with lower income and credit restrictions than conventional loans. The sales price can also exceed the appraisal by 10%.
Eligible properties for Section 203K are one- to four-family residences where construction has been completed for a minimum of one year. All zoning requirements must comply on a state and federal level. If you have units that were built after the original dwelling was constructed, these units must be physically attached to the original dwelling. Co-op units are currently not eligible for Section 203K. If the home you are looking to buy has been demolished or will be razed when you start your own renovations, this home is also eligible for Section 203K as long as the some of the foundation is still there.
There are many options a buyer can use when selecting this rehabilitation loan. Section 203K can be utilized to convert a single family dwelling into a multi-family dwelling as well as changing a multi-family dwelling back into a single family dwelling. Existing homes, modular homes or mobile homes can be transported to the mortgaged property. If a buyer plans to move a home to a mortgaged property, the release of the loan money will not happen until after the inspection of the new foundation and the transfer of the dwelling to the new property.
A Section 203K mortgage can also be taken out on a multi-zoned residential/commercial property, provided that the property is within the percentage guidelines of the floor area storefront to residential purpose (according to the guidelines within Section 203K and FHA), health and safety regulations are followed, and the Section 203K mortgage will only be used for the residential portion of the property and not for any commercial use.
Section 203K also permits the usage of this rehabilitation mortgage to be used for individual condo units that have gone through the approval process with FHA. Section 203K has limitations regarding approval for buyers purchasing an individual condo unit, such as buyers must be a qualified owner/occupant or a non-profit buyer; investors do not qualify, all restoration funds are limited to the interior areas of the individual condo unit and cannot be used for any exterior rehabilitation, only one out of five condo units or 25% of the total units can be going through rehabilitation at the same time, and the mortgage amount cannot be greater than one hundred percent of the improved value of the individual condo unit. The project must also be approved by HUD before the closing of any individual unit mortgage.
Buyers can use the Section 203K to finance such items as painting, room additions, decks and other items even if the home does not need any other improvements. All health, safety and energy conservation items must be addressed prior to completing general home improvements. Section 203K cannot, however be used to purchase luxury items for the home or property.
All improvements must follow HUD's Minimum Property Standards (24 CFR 200.926d and/or HUD Handbook 4905.1) as well as the buyer's own local codes and city ordinances. It is sometimes in the best interest for the buyer to consult an architect or other qualified professional to prepare the proposal as well as providing all necessary documentation to show the scope of the rehabilitation and renovation project.
Cash buyers are not excluded from participating and qualifying for Section 203K. Cash buyers can refinance an already purchased property using Section 203K as long as it is within six months of purchase. All mortgage calculations will be done the same as a purchase transaction. Cash back will be allowed to the borrower in this situation less any down payment and closing cost requirement for Section 203K. A copy of the Sales Contract and the HUD-1 Settlement Statement must be submitted to verify the accepted bid price (as-is value) of the property and the closing date.
While the added paperwork, additional inspections, and possible longer lengths of time from contract to close can be a hassle, home buyers in Florida can finally achieve their goal of purchasing their dream home in a very difficult economic setting, and have the funds to do the necessary renovations to their new home. Section 203K is a great option for Florida home buyers and GetMoreOffers is ready to help you achieve that goal. If you have more questions on Section 203K, a government funded FHA rehabilitation mortgage option, please contact our offices at: 727-942-2929 or 1-877-232-9695. We are open 7 days a week from 8AM-8PM.
The technological age has empowered consumers to demand that industries offer more reasonable prices for services. Real estate is no exception. Thanks to the Internet, home sellers can get exposure for their properties without having to pay huge commissions. Instead of paying 6% to a full service Realtor, flat fee or discount listing services allow sellers to get listed on the MLS and have complete control over the sale of their property. The concept of flat rate MLS listing originated in Florida in the late 1990’s and has grown in popularity in all major cities. Now flat fee MLS in Tampa is widespread, as well as MLS listing in Miami, Orlando, Tallahassee and most other FL cities. Now other states are following suit as more and more home owners learn about this effective and money-saving alternative to selling real estate.
So why doesn’t everyone list a home flat rate in Florida rather than the old school method? There are a few obvious reasons:
1. Not everyone knows about flat fee MLS listing or if they do, they can’t get their minds around the fact that it is real. The concept seems too good to be true.
2. Many home sellers are complacent with the antiquated system and like a herd of cattle just follow along without questioning if there are better alternatives.
3. Everyone knows a real estate agent and odds are that some agent has drilled it into your head that should you ever sell your home, that they are your gal/guy. Many sellers feel disloyal if they don’t list their home with their friend or acquaintance. If flat fee MLS listing is mentioned to most real estate agents, they will (of course) speak negatively of it. Discount real estate threatens the foundation of the traditional Realtor.
4. Home owners don’t realize that they can have a flat fee or discount MLS listing and still receive full contract representation such as the Professional MLS Listing on GetMoreOffers.com.
If you are a home owner thinking about listing your home for sale by owner, also consider that the flat fee option allows you the possibility of selling without paying any commission to a buyer’s agent. There are 2 scenarios to selling when listed through a MLS listing company: 1) (most common) a buyer’s agent brings you a buyer and you pay them the commission you have chosen to offer in the MLS (usually around 3%) or 2) you find a buyer via one of the real estate websites your home is fed to by being in the Multiple Listing Service and that buyer does not have an agent. No commission is due! This is one of the biggest benefits of this listing method.
Property owners beware: if you don’t know how to text or use a digital camera, then you should join the Grandparents of the world and list your property with a 6% agent. Flat fee MLS listing is for those who are savvy and ready to break away from the herd! For more info on how to list your Florida property in the MLS go to getmoreoffers.com. Our Florida flat fee mls listing reviews illustrate how successful and satisfied GetMoreOffers.com sellers are.
Realtors can sign up for a Florida Flat Fee MLS Listing with GetMoreOffers.com and list your properties in other MLS boards throughout Florida. Why would agents use a Flat Fee MLS service like GetMoreOffers? Realtors know that marketing their properties will give them more exposure to sell their homes. Many Real Estate agents are members of their local MLS boards. Other area boards, such as My Florida Regional, cover a broader, much larger region and can promote your property to more agents and more buyers. There are no rules against listing a property in multiple boards as long as you aren’t listing the property in the same board with multiple agents.
GetMoreOffers.com receives about 70,000 website hits per month and sell, on average 10-12 properties each month. Listing with GetMoreOffers will ensure your property has the exposure you want without paying the high costs to join another board.
At GetMoreOffers, we are members of the following boards:
Don’t pay the high board dues; let GetMoreOffers do the hard work for you! As a Realtor, it saves you money and you will get the marketing exposure. At GetMoreOffers, we offer seven flat fee MLS plans. We have our standard “self-representation” flat fee MLS plan called MLS ADDvantage, in which you can list for sale properties or rentals for 6 months. We also have our Renter’s ADDvantage, an inexpensive 3 month rental Flat Fee MLS listing. Our Street Smart ADDvantage offers even more exposure with its bi-monthly eblast (if you list with a 4% commission).
We also offer 2 flat fee plans that are very similar to full-service in that we handle all calls and negotiate all offers right through closing. These 2 plans are called GetMoreOffers Professional ADDvantage and GetMoreOffers Short Sale ADDvantage and our 5-4-3 Full Service plan. Our local agents have the right to sell your home using the buyer leads that come our way and these plans are a “contract-to-close representation” while the seller retains all buyer leads. If you have questions about which flat rate plan is best suited for you, call us anytime 1-877-232-9695 or visit our website at getmoreoffers.com.
Super Hero To The Rescue...I have a CMA to Prove it!
Sellers want offers that make some sense. Truth is, all offers are painful these days to most sellers because we are in our the 5th year of a prolonged downturn in real estate prices in Florida. CMA's (comparable market analysis) don't always tell the real story. They don't take into account where prices are heading (higher or lower) and often fail to accurately compare lots sizes, kitchens, appliances, and other improvements. Homes are not sold by price per square foot alone.
Back in 2006, our flat fee MLS listing company (I am the broker) sold a home in Seminole, Florida. About a month after it closed, an appraiser called me and wanted to know if the sale was a fire-sale because it appeared to him that my seller sold $20,000 under market. Well, smart seller he was because his sale was likely they highest sale in all Seminole after that as the market continued south and hasn't turned back. But, this seller wanted to sell because he had another place to go. Did the appraiser know this?
I love my job as a Professional Realtor Messenger because my business model lends itself to just that role. I work as a transaction flat fee MLS broker most of the time and offer my advice rather freely everyday to even fellow Realtors. I remind them as they are negotiating with me that I am the messenger and so are you...Now, let's go forward.
One thing I find NOT a pleasure is the CMA Super Heroes that make offers based on all closed sales as if this analysis is the holy-grail of how to close a deal. I feel our job is to educate, protect, offer advice and most of all, reassure buyers that it is OK to make an offer that keeps the door open and possibly one that seller may take. Is there any urgency to a sale these days? What if you miss the deal because some other smart Realtor or buyer beat you to punch!
I find Realtors that are too reliant on CMA analysis as their mode of initiating an offer are not in the business of selling homes and closing deals. What happened to the buyer that has their own opinion of value. Once a buyer has seen 5 homes, they do have an idea of what value is and what it is not. What if the buyer says, "based on what I have seen, I feel $430,000 is a good offer." What would you say then? "Well, sounds good but let me do a CMA and see if my Super Hero CMA Report supports your wishes because if we offer too much and the appraisal falls short, we will have to renegotiate with the seller."
Remember the days of paying more the ask price just to get a home. Of course, I know the market was going up then and even if a buyer over-paid a bit prices would soon catch-up and everyone would be happy. Now that prices are in the gutter (and maybe heading lower) because bank-owns and short-sales dictate appraisal, we as Realtors have to low-ball the CMA. Are we over-stepping what we are doing here? Shouldn't the buyer and then the appraiser decide if value is there and if not, the door is still wide-open to renegotiate with the seller. As a bonus, the bad guy is the appraiser and not the buyer!
I guess it's a battle. Value to a buyer is based on perception. The seller is in a life-struggle to re-group and move forward. The Realtor sees value through a CMA and the appraiser is just reporting yesterday's news.
In my last 50 deals representing sellers I have not received one full-price offer. But, when I sold a home last month in Tampa, I suggested to my buyer that this home was worth full-price. I knew the seller was very knowledgeable about value and happened to be a Realtor. But, it was a re-sale from a Realtor that was doing a flip of sorts and wanted out. My analysis was it wasn't worth trying to save $10,000 and miss this home. There were no homes that were comparable and it was priced right based on what we had seen. I was a professional messenger and supported the deal from the perspective of the needs of my buyer and what I (we) felt was a good deal.
Was I wrong? I say if more Realtors talked up Florida real estate and had a little urgency to their story, the Florida real estate market's downturn would end sooner.
I like selling homes. I like buyers and sellers. But, I like being the professional messenger better. Most buyers today are well educated because of the Internet. The last 10 homes I sold were brought to me by buyers on my website getmoreoffers.com. They liked my positive attitude on the phone, my professional demeanor once they meet me and likely appreciated my positive attitude about real estate. Though I have to admit, I am an order taker and tend to be a Realtor Cheerleader more than a Realtor Super CMA Hero. Oh well.
Keith Gordon 1-727 942-2929 or 1-877-232-9695
website: getmoreoffers.com, a Florida Flat Fee MLS Listing Service
Licensed Florida real estate broker (BK 0409442) for GetMoreOffers.com, a state wide Flat Fee MLS service, property management and full service real estate brokerage firm.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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