LaShawn Norden, REALTOR, (321) 377-0157 Your Real Estate Advocate in Central FL

In Central Florida, there are nearly 10,000 properties under contract each month. While some might say those are “good” numbers to have, in order to get a true picture of the real estate market, it’s best to look at how many closed sales there are each month as well.

The Orlando Regional REALTOR Association distributes a summary of the prior month’s activity called the “Market Pulse” each month which shares the number of active listings, homes under contract, average days on market and the number of closed properties.

While it’s encouraging to see that nearly the same number of homes are “under contract or pending” as are actively on the market, it’s not so encouraging to see that only about 25% of the homes are closing each month.

There are several reasons for this such as buyers submitting multiple offers on homes but only closing on one, or lenders taking months to approve a short sale and then the Buyer’s financing falls apart, but regardless of the reasons, it begs the question: Are there benefits of a back-up offer?

From my point of view (as a Buyer’s Agent), since 3 out of 4 homes are NOT closing each month, why not consider putting in a back-up offer if it’s on a home that the Buyer likes and there is reason to believe it may not close with the first-position Buyer?

While some agents only want to show homes “actively” for sale, there is enough evidence to suggest that there is lots of inventory that may be a better fit for the Buyer and it’s worth pursuing a back-up offer in some cases.

Determining WHEN it’s worth pursuing is for another post! Subscribe here to get the follow up to this topic!

Happy Buying!

When a home is listed, Sellers often ask if they should leave the home when a Buyer is scheduled for a showing. As an experienced REALTOR in Central Florida who has represented hundreds of clients, my answer is always the same...YES!

Sellers often feel the need to stick around to tell the Buyer about the upgraded electrical system or some other improvement they’ve made that they think the Buyer might care about, but what they don’t realize is they may be hurting themselves rather than helping themselves by not leaving when a showing is scheduled.

Here are the 3 reasons that Sellers should leave for a showing:

1. Buyers like to look at the home at their pace, not the Sellers pace. All too often, if Sellers are home for a showing, they feel the need to give the Buyer and their REALTOR a tour of the home. Studies show that Buyers spend more time “looking” at the home when a Seller is not home, which means there is a better chance the Buyer will see what they want (and like) compared to what the Seller thinks is the best selling feature of the property.
2. When Buyers find a home they like, they want to open closets, pantries, attics and other doors in a home and they may feel uncomfortable doing so if the Seller is present. Giving Buyers the privacy to “look” only increases the odds that they will also feel comfortable talking about where to place furniture or what children will be housed in a particular bedroom.
3. Buyers are less likely to make an offer on a home where they have met the Seller. If the listing price is higher than what the Buyer is willing to offer they may not submit it for fear of offending this new person they just met. Most people find it awkward to offer someone less than what they are asking, and home buyers are no different.

Most Buyers know what they want & need in their new home and having a Seller present when they are touring it does nothing but hinder their ability to determine if the home is the right one for them!

So, my advice to Sellers is to leave the home for showings and let the property sell itself.

Happy Selling!

As a listing agent for home sellers in Central Florida, I’m often asked how to best prepare for a showing. Below are the Top 8 things I suggest to our sellers:

1. Cut the grass & pull the weeds: When buyers pull up to a home and get out of their car, the lawn is one of the first things they notice. If the grass is overgrown or there are weeds everywhere, address it. Curb appeal is essential!
2. Turn the lights on in all rooms/make sure bulbs are working: It’s frustrating to a buyer when bulbs are out and they can’t “see” in bedrooms, closets or laundry rooms because there is no light.
3. Open window blinds/shutters/curtains: Natural light is often times an appealing feature to buyers. If you have it, showcase it!
4. Empty the trash cans: It shouldn’t be a surprise, but buyers don’t care to see (or smell) what you had for dinner the night before, or see your bathroom wastebaskets filled with your personal trash.
5. Flush the toilets AND put the toilet seats down: While this may seem like common sense, it’s a total turn-off for the buyer to see a peed-in toilet that hasn’t been flushed.
6. Deodorize: If you have pets or cooked something that may be offensive to a buyer (fish, garlic, curry), use a deodorizing spray to help minimize the smell. Buyers are highly sensitive to smells and sellers need to know it can “make or break” a sale for some buyers.
7. De-personalize as much as possible: Family photos, collectibles, trophies, diplomas and personal mail should be packed up or stored out of sight. Buyers are curious by nature and there is no reason for them to know anything about the seller, but instead, focus on the home itself.
8. Leave!!: When a seller asks if they should leave the home when there is a showing, I always reply with “YES!!” Buyers should be given the freedom to take as much time as they want to look at the home without feeling the pressure from the seller watching over them.

For the past 10 years, I have been helping Central Florida sellers market and sell their homes. When meeting with sellers, I share these tips (along with others) to help them sell their home faster & for more money than their competition. If you are a seller in Central Florida and are in need of a listing agent who knows the market and who will properly advise you, I would welcome the opportunity!

Happy Selling!

Chances are, if you are a buyer and are interested in purchasing a home in Central Florida, you will likely encounter more short sales than traditional or foreclosure listings in your search.

When considering writing an offer on a listing that is a short sale, make sure that your buyer’s agent knows (and is able to explain) the details of the Contract for Sale and Purchase and the required Short Sale Approval Contingency addendum.

If your buyer’s agent is knowledgeable about the short sale process, they can also put a few additional safety measures in place to make sure that if your offer is accepted by the seller, that it is actually submitted to their lender for approval at the price and terms you offered.

A few suggested contingencies/terms that can be added to the Contract:

1) Require the seller/seller’s agent to provide written documentation that the Contract for Sale and Purchase and all supporting documents have been submitted to the seller’s lender within the required timeframe allowed per the Contract. If the seller’s lender is Bank of America, Wells Fargo or another entity that uses a website portal for offer submission, you can ask for copies of the emails showing the short sale process has been initiated.

2) Require the seller/seller’s agent to provide a copy of the preliminary HUD-1 statement (used by the seller’s lender to determine if they will “net” enough money to accept the short sale offer). The purpose of securing a copy of the HUD-1 is to ensure the correct terms have been used when submitted so that no “last minute” surprises come up liked missing seller paid closing costs or an incorrect purchase price.

3) Require that the seller/seller’s agent share correspondence from the seller’s lender that will effect the status of the offer (a counter offer in price, a change of closing date or any other term modifying the terms of the original offer) within 24 hours of receipt from the lender.

Lack of communication regarding the status of the lender’s approval is one of the biggest complaints I hear from buyers who have had a “bad experience” with short sales. By writing in the above terms (along with those already in the Contract for Sale and Purchase & the Short Sale Approval Contingency), the burden of proof is placed on the seller and their agent to fulfill them or the buyer may have cause to cancel their Contract.

For those seeking an experienced Buyer’s Agent in Central Florida who will advocate for your interests every step of the way, I welcome the opportunity to assist you!

Happy Buying!

In early May 2011, the Mid Florida Regional MLS (the source where all homes in Central Florida are listed for sale), changed their rules to allow for homes that are under contract to remain on the market using a new status called “Active with Contract.”

According to the MFRMLS, the definition of “Active with Contract” means “there is a contract on the property with a contingency; however, the MLS Participating Office will continue to market the property.”

This new status will require a Seller to specifically request in writing that their property remain on the market while the contingencies in the Buyer’s contract have been satisfied.

As per MFRMLS, at least one contingency, such as “pending 3rd party approval, financing or inspections (amongst others), must be checked in the MLS data base in order for this new status to be permitted.

If one of the required contingencies is selected, the property will remain in “active” status for export purposes to sites such as REALTOR.com and local IDX websites that pull “active” properties in hopes to capture a Buyer’s interest.

While there are pros and cons to this new status (depending on if you are a Buyer or Seller), it’s certain that this new status may cause a few rumblings in the Orlando & surrounding real estate markets.

What are your thoughts on having this new status available?