Right Of First Refusal Explained

In my 16 years of being an Orlando Realtor, I’ve been asked by dozens of clients to explain what a right of first refusal is and how does it work.

When you are selling a house, you may encounter a situation where the sale is contingent upon the buyer selling the home they live in before buying yours.

So, is it a good idea to accept an offer like this? Accepting an offer such as this is OK as long as you include a “right of first refusal” aka “kick-out clause” contingency in the contract.

It’s pretty rare to get an offer with a home sale contingency, but it does happen occasionally and depending on the situation, sometimes it’s a good alternative.

What’s a right of 1st refusal?

Right Of 1st Refusal Explained

If your Orlando home has been listed for a while with little or no offers, you may be willing to make your terms more attractive to buyers. For instance, if a buyer came along and wanted your house but they can only afford it after they’ve sold their current home. Accepting an offer that includes a home sale contingency involves a bit of risk if you don’t structure the deal correctly.

When one of these offers is presented to one of my clients, I insist on including a right of 1st refusal clause in the contract or we don’t accept it. The purpose of this clause is to allow you to accept an offer like this while continuing to market your home to other interested buyers. You’re telling the buyer that you will continue to actively Market the home until the buyer completes the purchase.

Here’s how it works…

If a different buyer makes an offer on your home while under contract, you have to give the original buyer the option of eliminating the home sale contingency for the sale of their current home and purchasing your home within a pre-determined amount of time, usually between 24 and 72 hrs.

If the original buyer fails to buy your home within that time frame, then you have the right to sell your home to the second buyer.

Working as a top real estate agent in Orlando FL, I’ve closed several of these transactions successfully. Sometimes they worked out and everyone was happy and other times it didn’t work out for the buyer. In every instance, the seller was protected because we used the 1st right of refusal contingency.

What to Look For In A Right of 1st Refusal Clause

If you have your home listed with a realtor and you receive a purchase agreement with a kick-out clause, there are a few things to look for like the following:

  • How much is the buyer offering on your home?
  • How much time are they asking for to complete inspections?
  • How long are they asking for to obtain financing?
  • What is the closing date?
  • How long do they have to respond if you end up getting another offer?
  • Is their current home already being marketed for sale?… It better be!

Why Would A Buyer Accept A Kick-out Clause?

Many of you might be wondering why a buyer would even accept a clause like this when it puts them at a disadvantage. Think about it…anyone who makes an offer that’s contingent on selling their own home first is already in a bad position.

It’s human nature for people to view things from their perspective without thinking about it from the opposite side of the table. Think about it…If you were in a situation where you’re struggling to sell your home, you may get super happy to receive an offer like this one!

Understand, however, that a buyer like this is more than likely facing his or her share of struggles and the road to the closing table will probably be a bumpy one.

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Orlando Realty’s “Easy Exit” listing agreement.

When somebody lists their house with a real estate agent, they always worry that the agent won’t perform as promised and they will be stuck with them until the listing agreement has expired costing your home valuable time and exposure on the market.

Most real estate agents require you to sign listing agreements that have a cancellation fee of several hundred dollars when the homeowner wants to terminate the contract with the agent they hired to represent them.

It’s for this reason that I use an “Easy Exit” listing agreement. This takes the risk out of listing your house and having to worry about us not performing.

When you list your home through our INSTANT AMNESTY Listing Agreement, there’s no risk to the homeowner. We are so confident that you’ll be happy with the results that we get you that you can cancel your listing with us at any time and NO CHARGE! There is NO cancellation fee in our listing agreement.

• You can cancel your listing anytime.

• You can relax, knowing you won’t be locked into a lengthy contract.   

• Enjoy the caliber of service confident enough to make this offer.
   In my 8+ years as an Orlando realtor, the few times that someone has wanted to cancel a listing agreement with me was because they decided to keep the house instead of selling, it has never been for non-performance. When it comes to real estate, my skills and work ethic are among the best in Orlando and I have the track record to prove it. My confidence comes from thousands of successful real estate transactions and thousands of happy clients. The fact that most of our business comes from referrals from past clients says it all.

Whether it’s a traditional listing or an Orlando short sale, I get the job done no matter what.

Tired of your realtor not performing and wasting valuable time on the market? Give us a try, you have absolutely nothing to lose. Visit us at https://orlandorealtyconsultants.com/ or call us at 407-902-7750 so that we can discuss your best options. Jenny Zamora Lic. RE Broker

Orlando Vacation Homes

 

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Should I Stage My Orlando Home Before Selling?


Is it Worth the Hassle to Stage My Orlando Home?

Shakespeare once said that “all the world’s a stage”… this also includes the house you want to sell for top dollar.  As a Realtor in Orlando, I can’t tell you enough how much of a difference it can make to set the stage before revealing your home to the world.

Unless you’re an interior designer, staging a home is not a do-it-yourself type of task. Staging involves hiring professionals with talent and skillsets for interior design. A good stager will give your house a makeover that will make you think twice about selling. By using temporary furnishings and décor, your house will get more than its share of “oohs… and aahs…” from potential buyers doing their walk-through.

Quality staging is not like an insurance policy by any means and there’s no guarantee that your home will sell for more money because of it. However, It is a great and powerful marketing tool. Great staging should present your home in its most flattering light and will keep you at the higher end of the comps in your area. Have you ever heard of the saying “dress for the job you want, not the one you have”? When selling a house… when want it to be dressed to the 9’s to get the price you want.

Staging helps potential buyers to visualize what their life could look like living in such an elegantly decorated home.

Staging Leads to Great Listing Photos

Great photography is a must when marketing your home for sale. By having pics of a staged home instead of an empty or messy home, you’ll increase your chances of finding an online buyer 10 fold. Especially these days the majority of home buyers start their search by looking through online listings before hiring a Realtor in Orlando, FL.

Before Hiring Stagers Consider This

In addition to being Realtors, we are also Orlando real estate investors, we’ve bought and rehabbed many houses over the years. I can tell you from my own experience that staging does help. Like… a lot. There’s always one or two buyers that ask if they can also purchase the furniture and decorations.

But don’t just take our word for it. Recently, a survey from the NATIONAL ASSOCIATION OF REALTORS® revealed that:

Almost 80% of buyers’ agents claimed staging makes it easy for the buyer to imagine the property as their future home. It’s kind of like helping the buyer to dream it to achieve it so your real estate agent can make the sale.

40% of Orlando listing agents say that a staged home spends a lot less time on the market compared to an empty house. For you the seller, time saved could mean more money in your pocket and being able to move out sooner. Listing agents also claimed that staged homes will fetch a higher dollar amount… between 6-10%!

Some listing agents in Orlando will offer staging services to their clients but most of the time you’ll have to hire someone and pay for the staging yourself.

Professional home stagers will usually charge according to how many rooms you want staging. We pay roughly $700 per month when we stage a 3 bedroom 2 bathroom house which includes everything from the furniture to décor.

What about staging the house yourself?

If you’re on a tight budget, then hiring a professional may not be an option for you. If this is the case, check out some Youtube video tutorials on the subject to help guide you. If you have a friend or relative with really nice décor in their house, you may want to ask them for some staging ideas.

Declutter and clean at the very least

No potential buyer is going to enjoy walking through a messy or dirty house. Take the time to declutter and clean it like it’s never been cleaned before. Move some furniture into the garage if you have to, organize household items out of sight, and remove anything that makes a room look smaller. You should also change out any burnt light bulbs and have the carpets shampooed.

Keep the closets neat and organized

Make sure they can see the space, buyers always want to check out the closets. Remove some things if you need to rather than having that “stuffed full” look. Consider putting away personal items like family photos, religious pieces, and maybe some artwork to make the house look more neutral.

Only focus on rooms that count the most

You don’t have to stage your whole house to impress buyers. We find that staging rooms where people spend the most time will make the biggest impression on buyers. Staging the kitchen, Living room, Dining room, bathrooms, and Master bedroom is more than enough to make a buyer take notice.

Don’t forget to stage your yard

Curb appeal is super important for getting potential buyers through the front door. Make sure your yard looks the best it can. A freshly cut yard, manicured bushes, and some colorful plants can make a huge impact on buyers and set the stage for what the inside looks like.

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

7 Reasons Why Now Is A Great Time To Buy A Home in Orlando

Why You Shouldn’t Wait To Buy A Home in Orlando

As a Realtor in Orlando, I’m constantly being asked by potential buyers whether or not they should wait to buy a home in Orlando…They ask me things like “Should I hold out for a great deal?”… “Am I better off renting?”. The truth is that no one can predict what the future holds and all we can do is see what’s happening now and see where things are going. In my opinion, people who are thinking about buying a home in Orlando, FL shouldn’t wait. Here are some reasons why…

1- Higher than normal rent prices- The rent prices in Orlando are getting higher and higher, even faster than median home prices. This is especially true with homes in Orlando and other parts of Central Florida. This means that if you’re able to buy now you’ll probably be paying less on a mortgage payment than you would in rent.

2- Mortgage rates are still low– If you have a decent credit score and a steady job, you’re probably in good shape to get favorable terms on a home mortgage.

3- Cheaper to buy than rent- If you can qualify for a mortgage loan and you can get a payment that’s less than you’re paying in rent, then it’s a no-brainer. This is especially true if you’re a first-time home buyer and can qualify for down payment assistance.

4- Low mortgage rates won’t last– Unfortunately, we are arriving at the end of an era of lower than normal mortgage rates combined with moderate pricing on Orlando homes. Home prices are expected to rise soon as are the mortgage rates.

5- Personal income levels are on the rise– Florida’s economy is strong which means unemployment rates are low and people are making good steady incomes. Studies show that Floridians are staying at their jobs longer which means they understand the importance of holding on to a steady job.

6- Demand still exceeds supply- This means that Orlando home prices will continue to rise. By waiting it will be more difficult to find the ideal home at a price that’s affordable to you.

7- Millennials are arriving at their home-buying years- Millennials represent a huge group of Floridians and now that they are entering their peak home-buying age it will surely tighten the supply of  Orlando homes on the market.

RIGHT NOW THESE ARE SOME OF THE
HOTTEST ZIP CODES BASED
ON SUPPLY AND DEMAND
33778 Largo
32708 Winter Springs
32826 Orlando
32904 Melbourne
33624 Tampa
32828 Orlando
32905 Palm Bay
32765 Oviedo
32907 Palm Bay
32825 Orlando

THESE ZIP CODES ARE PREDICTED TO BE THE
FASTEST GROWING OVER THE NEXT FIVE YEARS
32081 Ponte Vedra 19%
34211 Bradenton 18%
32832 Orlando17%
32163 The Villages 17%
34484 Oxford 16%
32162 The Villages 16%
33473 Boynton Beach 16%
34747 Kissimmee 16%
32227 Jacksonville 16%
32544 Hulbert Field 16%

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

8 Factors That Increase Your Orlando Home Value

 

Are you looking to buy an Orlando home and make a smart investment at the same time? Be aware of these important factors as identified by Realtor.com by analyzing millions of home sales throughout the country.

Having Fewer Bedrooms- As an Orlando realtor, I was surprised when I first read about this. Homes with 1 bedroom experienced an increase in appreciation of over 7% since 2012. Homes with 2 bedrooms have increased by 6.6%, 3 bedroom homes 6.3%, and 4 bedrooms was down to 4.9%. This just goes to show how popular down sizing has become in our country.

Bigger is not always better- especially when it comes to Orlando real estate. past 5 years have been a strong indicator that smaller homes  are more popular than ever among baby boomers as well as first time home buyers. Statistics show that homes smaller than 1,200 square feet have gone up by an average of 7.5% each year and larger homes [ over 2,400 sq ft] have only seen a 3.8% increase.

Open floor layout- These days everyone loves an open floor plan and so the more sought after something becomes, the value it will have. Homes in Orlando with an open floor plan appreciate an average of a whopping 7.4% per year. You can sometimes change your floor plan depending on if the walls you have to remove are load bearing or not. Upgrades such as granite counter tops and stainless appliances only experienced a 2-3% appreciation.

Having a view- Homes with a nice view across the country have increased between 4.9% – 7.9% over the past several years. If your fortunate enough to buy a home with a pretty view, you can always expect to enjoy a bit more appreciation on your home than your neighbor without one.

Modern design- With the exception of a small percentage of buyers who prefer older homes, newer more modern styled homes will always be more desirable for the majority of buyers. As a matter of fact, newer homes with modern designs have been rising an average of 7.7% per year. Bungalows are 2nd at 6.5%, traditional 5.6%, ranch homes 4.5% craftsman 3.7% and victorian at 2.2%.

Homes with 2 car garages-  Orlando homes that have space for 2 vehicles have had an increase of 6.4% per year Vs homes with a one car garage at 6% increase. And believe it or not homes with 3 car garages only saw an increase of 3.8% annually.

Being in the city- This was another one that surprised me a bit, but I guess I’m a little bias. Homes that were in or close to the city near mass transportation had an increase of a whopping 8.4% in value where as homes in the suburbs in good school districts and shopping areas only increased by 7.2%.

 

 

 

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields