What is a Buyer Broker Agreement and Why Do I Have to Sign One?

Q: My agent wants me to sign something called a buyer broker agreement. What is this and why should I sign one? A: The buyer broker agreement is a contract that clearly outlines both the buyer’s and the agent’s expectations and helps to ensure that each party does what they say they will do. It is now required for your agent to receive a commission when they help you buy a house. Because of a recent law-suit settlement, the landscape of real estate has changed in ways that will affect buyers and sellers. Although the buyer broker agreement is not new, it has not been widely used until now. If you want your agent to receive a commission for helping you buy a house, you will be required to sign a buyer brokerage agreement before you ever look at a house. The buyer broker agreement  is a contract between the buyer and their agent stating that 1) the agent will represent the best interests of the buyer and will be compensated for their work. 2) The buyer will commit to working with that agent only and will work to accomplish the objectives of the agreement. Without a signed agreement, you are saying you’re not loyal to your agent, and they, in turn, don’t have to be loyal to you. Are you willing to take that risk with such an important purchase? Additionally, agents will not be able to receive a commission unless they have a signed buyer broker agreement showing that they represent you. Buyers who refuse to sign the agreement may have a hard time getting any reputable agent to work with them. A word of caution; the buyer broker agreement should not be taken lightly. Make sure you understand the terms of the agreement and that you’re serious about purchasing real estate before you sign one. This is not for tire-kickers or looky-loos. Monetary penalties can apply if either party breaks the contract. Also, shop around before signing with an agent, just like you would shop for a lawyer or an accountant. It’s important to find someone you like and trust. You know the one! Call me today for a no-obligation buyer consultation!  

Why Isn't My House Selling?

Q: My house has been on the market for more than a year. Why isn’t it selling? A: At the end of the day, there is really only one reason a house doesn’t sell: THE PRICE. The trick to getting the best price for your house is to show potential buyers it’s VALUE. Now, I’m not suggesting that you lower the price until somebody buys it. I’m also not advising you to make costly repairs to make the house more attractive. What I am saying is that you can add value to a house and make buyers take notice by taking control of a few simple things. Clean, Clean, Clean. This is probably the most important indication of value you can control. A clean, uncluttered house and yard are the clearest, most resounding indication of value you can make. If you do nothing else, CLEAN! Properly staging a home for marketing can be a huge help. While it is an option, you don’t have to have the house professionally staged. A few well-placed items of furniture and art you already have can make a big difference. Also, when it comes to staging, less is more. Curb appeal goes a very long way towards attracting potential buyers. It doesn’t have to be fancy, but it does have to be neat and well maintained. Mowed grass, free of trash and debris, a little edging, maybe a well-placed splash of mulch can do wonders. Work within your budget, no matter how small the budget (or the yard) is. These elements may not make your house more valuable, but they will certainly make it more MARKETABLE and that gives you the best chance of getting a fair price for your property. There may be other problems that you can’t control. Outdated features, an old roof or AC system, the messy neighbor next door. These are things you may not have the resources or power to change. That’s okay, there’s still a buyer out there for your house. If you’ve done all that you can do and you’re still not getting the offers you were hoping for, then the market has spoken. Your only other option is to lower the price. The right agent can help you boost your marketability and maybe even have a chat with that messy neighbor… You know the one! Call me today to learn how I can help balance value against price for the best sale price possible!  

Easing Interest Rates Prompt Homeowner Refinances

As mortgage interest rates have eased over the past few weeks, more and more homeowners are taking the opportunity to refinance their mortgages and lower their monthly payments.  According to a report from The Mortgage Bankers Association, refinance applications were up nearly 60% compared to the same week last year. Signs of lower inflation and a cooling job market forecast another interest rate cut by the Federal Reserve next month. “If the recent drop in longer-term rates is sustained, then we expect to see another uptick in refinance applications and subsequent refinance mortgage volumes this week,” said Doug Duncan, chief economist at Fannie Mae. Even with the lower rates, the MBA says applications for home purchases rose by less than 1% from the previous week and were actually down 11% from the prior year. For many would-be buyers the mortgage interest rates are still too high. Record-high prices and a persistent lack of available inventory continue to hamper affordable home ownership. The average rate on a 30 year mortgage fell to 6.47%, which is the lowest level we’ve seen in over a year. While the lower rate is a welcome sign of an improving economy, it’s still not much lower than the average of 7% where rates have hovered all year. Says Joel Kan, chief economist for the MBA, “For-sale inventory is beginning to increase gradually in some parts of the country and homebuyers might be biding their time to enter the market given the prospect of lower rates.” This is NOT the case, however, here in Central Florida. According to the latest report from the Orlando Association of Realtors, the inventory of single-family homes, condos, and townhouses have all decreased week-over-week as the number of sales have continued to increase. Still, rates will need to come way down for more homeowners to refinance their mortgages. Realtor.com estimates that 86% of all outstanding home mortgages have a current rate under 6%. More than 75% have a current rate under 5%. Homeowners are biding their time for a better offer. Source: https://www.floridarealtors.org/news-media/news-articles/2024/08/homeowners-race-refinance-home-loans  

New Laws that Help Florida Homeowners Effective July 1, 2024

The latest legislative session brings a slew of new laws that will affect homeowners here in Central Florida and across the state. These laws are design to help and protect property owners and to make housing more affordable. Here are some of the highlights: The Hometown Heroes Housing Program has been replenished with $100M to aid first-time homebuyers with down-payment and closing money. The My Safe Florida Home Program has been funded an additional $200M in grant money for home inspections and retrofits that protect the homes of low-income owners from storm damage. My Safe Florida Condominium Pilot Program extends the My Safe Florida Home Program to condominiums with $30M allocated to help condos that are within 15 miles of the coast re-enforce roofs and openings against storms. Protecting Private Property Rights enables property owners to have anyone unlawfully occupying a residence (squatter) removed immediately. Violators will be subject to charges and fines. Funding for State and Local Affordable Housing Programs was replenished by $408M to include grants for home buyers’ down payments and closing costs, and loans for builders of affordable apartment dwellings. Property Insurance Cost Reductions requires insurers to give a 1.75% discount on premiums on owners’ homestead property. Increased Transparency of Condo Documents will require condo association with 25 or more units to post digital copies of official condo documents on their websites. The Everglades and Water Quality initiative has been allocated $1.2B for various water programs across the state. Other important new laws that are coming into effect soon include: Seller Flood Disclosure Makes it mandatory for sellers to disclose flood information in writing when they list their house for sale. Annual Adjustment for Homestead Exemption Value and Exemption of Homesteads says that the $25,000 of assessed value that is exempt from certain property taxes be adjusted annually for inflation. The current exemption has been the same since 1980. Source: https://www.floridarealtors.org/news-media/news-articles/2024/06/new-florida-laws-go-effect-july-1