Aug. 24, 2007 - Letting Buyers in BEFORE You Close...

I recently had a seller who insisted on speaking directly with the buyer about the real estate "deal".  I advised my client that is was not a good practice to create a friendly relationship with the buyer before the closing.  I explained to my seller that she might unknowingly say something that could set the buyer off.  My seller didn't head my advice.

I found out by driving by the house after all inspections, etc were completed that the seller had even gone so far as to allow the buyers to move their items into the house.  When I saw this, I called her and she admitted that she had agreed to allow the buyers to place their furniture in the house before closing.  Once again, I advised her that she would be responsible for any damages and any liability that might occur.  I explained that if for some reason, the property didn't close that there could be a problem getting the buyers to remove their items.  I put this in writing at the advice of a Real Estate attorney.  He told me at this point, I had to just leave it alone and wash my hands of it and hope for the best.

All contingencies, including the financing contingency had been met.  During negotiations, I had insisted that the buyer lay down 5% ($30,000) instead of the $5,000 he proposed.  He agreed.

Closing day came and the buyer walked.  He did not want to close because the deal on HIS house had fallen through.  He gave up his $30,000 deposit.  I gave the entire amount to the Seller although we had agreed (in the listing agreement) to split it 50/50 between broker and seller. The seller agreed to sign a 6-month listing with me.

Since the buyer's stuff was in the garage and in the house, the Seller had to supervise the removal of the items.  She was very upset about this and began speaking to me in an angry tone.  I reminded her that it was NONE of my doing and I vehemently opposed it from the beginning.  She spent 3 days at the house supervising the removal as they were removing items themselves using a van.  Then she spent another 3 days cleaning up their mess.

From now on, when I take a listing, I'm going to have the seller sign an agreement that they will not allow buyers access to their homes before the closing date.  It's heartache for everyone. 

My hope is that everyone who reads this will learn from it.

Aug. 8, 2007 - Sarasota Buyers: How Much Escrow Do You Need?

I've been asked this a lot lately.  Just how much Escrow do you need to put down when making an offer for a home in Sarasota?  My feeling is this: 

You can put an initial $1,000 in Escrow when you write the Purchase and Sale Agreement with your Realtor.  Then an additional 5% of the purchase price when the offer is accepted.  So, a 500,000 home would have a total Escrow deposit of $25,000.

I've seen many folks lay down only $5,000 on a purchase offer for a $500,000 home.  When these offers come to my sellers, I always insist on the 5%.  The reason?  It's a lot easier to walk away from $5,000 than $25,000.   When making an offer in a buyer's real estate market, where the buyer is making a low-ball offer, having a sufficient escrow amount makes for a stronger offer.  It's important to view all the elements of your offer, not just the offering price. 

Good luck with your home purchase!

Aug. 8, 2007 - July Real Estate Market Statistics for Sarasota

July 2007 Real Estate Statistics for the Greater Sarasota Area

While these numbers don't seem to be that great, there is good news within them.  In July of 2006, there were a total of 5684 active listings on the market in Sarasota Florida, so it appears we are eating through some of that inventory.  The amount of new listings in July of '07 was 733, yet in July of '06, there was a whopping 1,070 new listings.

Now we have an 18 month supply of real estate inventory in Sarasota.  But the good news is, much of that inventory is now priced  at 2003 and 2004 levels. 

Many buyers ask me if it's a good time to buy in this area.  I think the real question is, "What IS the best Real Estate buy?". Then buy it!