Category: News and Information

Orlando Realtor Explains The Kick-Out Clause

Posted on by Jenny Zamora

Orlando Realtors are highly aware that no homeowner likes to sign a contract that’s contingent on a potential buyer selling their primary residence. Most homeowners won’t be approved by any lender to purchase a new home without first selling the one that they live in anyway.

Many people that are planning a move like to know where they’re going to live before they put their own residence up for sale. This can be tricky because no homeowner in their right mind will want to take their home off the market to wait and see if the interested buyer is able to sell their home first.

Enter the “kick-out” clause

A “kick-out” clause is a contingency that allows a buyer to terminate the contract if they aren’t able to sell their primary residence first. This contingency also entitles them to get their deposit fully refunded. However, the “kick-out clause also benefits the seller.

Sellers don’t want to take their homes off the market only to be stuck waiting around for a buyer that may or may not close. It’s because of this reason that under the “kick-out” clause, sellers are allowed to continue marketing their property for sale while the potential buyer tries to sell his or her primary residence.

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The “kick-out” clause from the seller’s side allows the seller to continue marketing the property and if another qualified buyer steps up, the sellers are required to give the original buyers a certain period of time [usually 3 days] to either remove the contingency [proceed with the contract] or they must withdraw themselves from the contract.
Read the fine print

Even if the potential buyers are faced with the three-day kick-out period and decide to proceed with the contract anyway, they may still be able to get out of it because they can’t get financing for the purchase. Most all standard contracts include a contingency that allows the buyer to terminate the contract if they can’t get a loan to purchase the home.

This can get kind of messy for both buyer and seller. Even if the buyer removes the sale contingency and wants to proceed with the purchase, it’s highly unlikely that a lender will approve a home loan until their primary home gets sold first. In a sense, the seller gets the short end of the stick because the potential buyer can still walk and keep their deposit and everything has been a waste of time.

Sellers Beware!

If a seller finds themselves in a situation like this they should include some very specific language to protect themselves. Something if the buyers are presented with the 3-day kick-out period and wish to delete the contingency and proceed with the original contract, they must demonstrate to the sellers [to the satisfaction of the sellers] that they are able to qualify for the loan. In most cases, the buyers don’t have the funds to proceed with the purchase.

Fair to Buyers and Sellers

If you look at it from the buyer’s point of view this agreement is fair as long as the seller doesn’t abuse it, like by using the agreement to get out of the contract because they received a higher offer from a third party.

For sellers, it’s also a fair agreement because even though they have a signed contract, they can continue to market the house. They even have the right to take back up contracts when offered. Sellers should make sure that their real estate agent continues to go full speed on the marketing of the property even after you’ve signed the first contract.

If you need help buying or selling a home in Orlando call us today at 407.902.7750

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Orlando Resale Homes Compete With New Homes

Posted on by Jenny Zamora

When putting your Orlando home on the market, be sure to research your competition to establish an accurate listing price. Some homeowners are discovering that even if they have a relatively “newer” home, the brand new homes in the area are creating some serious unwanted competition for their pre-owned homes.

The Pointe in Hunters Creek is a perfect example of this. While all the other homes located in Hunters Creek are not exactly old, they are having to compete with brand new homes that haven’t even been built yet. Not only that but with a new home, buyers can choose the model, layout, colors, etc. which is a huge bonus because homeowners won’t have to do a single thing once they move in, except go grocery shopping.

Homeowners in Hunters Creek that were planning to sell and move away are now having to lower their listing price in some cases in order to sell. Sellers that find themselves in this situation would be wise to research what’s going on around them with new homes as well as resale homes before determining a listing price.

It’s just human nature that someone would prefer to live in a brand new home over one that’s been previously lived in. If you had a choice of buying a used car or a brand new car of the same model for exactly the same price, which would you choose? [oooh… and that new car smell!] It’s a no-brainer!

If you find yourself in a situation where you’re competing with newer homes check these tips to help you maximize your possibilities of selling for the highest amount.

Go do a walk of one of the new home models. I should warn you that when you walk through a new home to compare it to your own home, you will either get depressed or motivated. You’ll find that everything looks and smells brand new and the decoration of the home is exquisite. Now go home and see what you can do to make your house look and feel “brand new”. Initially, you may feel overwhelmed and not know where to start,… just relax and keep reading.

Begin by cleaning and de-cluttering. I’ve found that less is more when you want to make a house feel bigger. Next, you should paint the interior, and keep it simple and elegant. I recommend off-white on the walls and bright white on the trim, stay away from dark colors. Finally, change out your floors if needed or shampoo them at the very least. By providing a clean slate, you can allow potential buyers to visualize the house and how they would decorate it.

Find out what incentives the builder is offering. Is the builder offering custom paint choices or a free deck? Now, I don’t recommend offering to paint the house with their custom colors or build them a deck, but you might consider offering a $3,000 allowance for decorating. It’s just another option in lieu of just dropping the price outright.

Don’t blame your Orlando real estate agent!

Think of the Orlando real estate market like any other market. The agents don’t control the price of the homes, the sellers and the buyers do. Even though your home might be the nicest one on the whole block because of all your time and effort, it doesn’t necessarily mean that you’ll see a return on that investment. A house is only worth what a buyer is willing to pay for it. Regardless of upgrades and amenities.

Maximize your curb appeal. See what you can do to make the front of your house look the best that it can. Sometimes it’s just a matter of cutting the grass, trimming the trees, and adding a few flowers with fresh mulch. Many buyers won’t even go in the house if they don’t like the way it looks from the outside.

Give the buyers what they want. Buyers are expecting that clean, new and fresh feeling when they walk in, not the lived-in feeling. If your goal is to sell your Orlando home for the highest price, give the people what they want!

For more helpful advice on how to compete with new homes when you’re selling your home, visit us at https://orlandorealtyconsultants.com/sellers/  or call 407.902.7750 to speak with an Orlando listing specialist.

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You Sold Your Orlando Home, Now What?

Posted on by Jenny Zamora

Congratulations! After months of having strangers walk through your home with your Orlando listing agent, you finally got the offer that you wanted and the closing went off without a hitch. No, it’s just a matter of handing over the keys to the new owner and turning the page on this chapter of your life…or is it? Hold your horses for a minute. There are some things you need to do to avoid any potential problems that may arise from the sale of your house down the line.

1-   Make copies of ALL the paperwork that was related to the closing, especially the docs that you signed. You may be tempted to toss this stuff in the trash to avoid more clutter, don’t do it! Not yet anyway… Once tax season comes around, your accountant will need these papers to document the expenses as well the proceeds of the sale. Even after tax time, you should save these docs somewhere just in case you get audited.

2- If your property was sold via short sale, hopefully, your Orlando short sale realtor was able to get any deficiencies waved and even get you some money back from the bank for relocation costs. Either way, it went down, keep records of these papers as well.

3- Keep a record of improvements and repairs that you’ve made to your home. If you did the work yourself, don’t forget to add the cost of your time. No one is expected to work for free, not even in their own home. The IRS will allow you to factor in what you’ve spent on your home however, you need to supply the receipts on everything you’ve spent on the home in order to use this tax provision.

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4- Keep up with local tax laws. Tax laws are always changing and if you’re aware of them, you can avoid losing money. Recently, a new tax law passed that allows you to….never mind, it just changed. You get the point.

5- Take your time in buying your next home. Depending on what your situation is you should take your time in finding your next home. Make sure that the home and the location that you choose, meet your family’s needs. Many people choose to rent for a few months so that they don’t feel pressured into buying. This also allows them to see if the area they choose is everything they need it to be.

6- Keep your current financial situation in mind. Are you able to downsize? Is there a baby on the way? Did you get a promotion? Did you get a divorce? Be realistic with your situation, selling a home is an opportunity for a new beginning. Don’t start off by buying a house that will be constantly struggling to afford.

7- Think about the Realtor you will hire. Your Orlando listing agent did a great job in getting your house sold. That doesn’t mean that you should hire the same realtor to help you buy, especially if you’re looking to buy in a different area. The best real estate agents specialize in a specific niche or area of the industry.

Real estate agents like myself are listing agents in Orlando. We specialize in getting the highest dollar amount for Orlando homes in the shortest amount of time. Orlando short sale specialists, however, specialize in doing short sales and know everything there is to know about short sales. They also have to stay on top of the latest changes when it comes to the short sale industry. Finally, there are buyer agents. These agents specialize in finding the right home for potential home buyers. Their job is to find you a home based on the criteria that you give them.

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Will Online Search Tools Make Realtors Obsolete?

Posted on by Jenny Zamora

Free online home search tools have completely changed the way that Americans search for a place to call home. In the not-so-distant past, you would have to contact a local real estate agent in the area where you wanted to buy and wait for them to send you a list of homes for sale.

Top real estate brokerages know that providing great customers these days means incorporating the latest home search technology in addition to everything else expected from a real estate professional. That’s why more and more brokerages provide their website visitors with the freedom and power to search the MLS from the comfort of their own homes without having to contact an agent first.

Today people are much more tech-savvy than was the case just 5 or 6 years ago. The average American prefers to research whatever product they’re looking for online without having to speak to a sales rep first, searching for a home is no different.

MLS home search tools allow the user to look for homes based on a wide range of criteria such as price, number of bedrooms, square footage, school zones, etc. with just a few clicks of their mouse.

Most real estate websites will even allow home shoppers to register so that they will receive an email alert whenever a new listing comes on to the market that matches their criteria.

The home search tool has become so popular that buyers will usually start communicating with an agent by providing them with a list of homes they would like to see instead of the other way around.

Trulia and Zillow vs. Local Real Estate Professionals

Nationwide companies like Trulia and Zillow provide MLS access throughout the entire country.  However, many home shoppers prefer to use home search tools through a local real estate professional’s website. The best approach is to use multiple sites for finding homes as some websites are more user-friendly than others in addition to providing valuable information that others may not.

Another advantage to using some of the larger companies like Zillow and Trulia is that they also have “for sale by owner” listings whereas the MLS will only have homes listed by real estate agents. Buyers should be aware that sites like Trulia and Zillow tend to lag behind local MLS integrated sites when new listings are submitted.

Independent brokerage websites that are tied to their local MLS are updated every 10 minutes whereas Trulia and Zillow can sometimes take several hours to update new listings.

Does this mean the end of real estate agents?

Despite all the online resources available directly to the consumer, these days, real estate agents can breathe easy knowing that they still play an essential role in the buying and selling of homes.

Although potential buyers can search for homes in their desired area, the homes they find are all listed with real estate agents, with the exception of a few FSBOs [for sale by owner]. So in order to see the home, they will have to either contact the listing agent of the home they wish to see or enlist the help of a buyer’s agent.

If a potential buyer goes to see a home without the representation of a buyer’s agent and then wishes to submit a contract on that home, then they’ve just hired the listing agent to represent them as well.

Although agents representing both seller and buyer are legally obligated to look out for the best interest of both parties, it’s highly advisable to research and hire your own buyer’s agent to represent you.

Hiring a buyers agent

Once you’ve compiled a list of a few homes that meet your criteria, it’s time to enlist the help of a good buyer’s agent.

It’s important to know that agents which show up next to the listings of sites like Trulia and Zillow are paying to have their ad displayed and are most likely not the best fit for you.

The best way to determine which agent is a good fit for you is to start with some online research. Type in terms like “buyers agents” or “buy a home” into the search bar.

The first page of the search results will provide you with a list of the top agents in the area. You should interview 2 or 3 agents before choosing the one you feel would best meet your needs.

Once you’ve hired a buyer’s agent, establishing an open line of communication is key. In addition to showing you the homes that you found through your own search efforts, your agent should actively be looking for homes that meet your criteria.

The more details you provide, the better chance they will have at finding the perfect home for you. Working together with your agent on the home search will give you the best chance of finding the right home sooner than later.

A good buyer’s agent can make finding your home an easier, less stressful, and even a pleasurable experience. Happy home shopping!

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A Happy Home And A Good Investment

Posted on by Jenny Zamora

Living in a home that is both a good investment and the home you’ve always dreamed of is the ultimate goal for just about every homeowner. If your home is an older home then you probably have to work a bit harder to keep it maintained as opposed to a newer home. If you’re the kind of person that likes to constantly make improvements to your home to maintain or even increase its value. The good news is that the process of increasing the property value of any home isn’t all that difficult. 

Happy Home = Happy Life

People can sense when other people are happy as well as when they’re not happy. If you’re happy in your living space, it tends to be contagious to people that visit your home. Furnish your home with items that fit your taste and interests and no one else’s. Don’t worry so much about what the latest trends in home design if they really don’t appeal to you. If want to change things up a bit and need some ideas, you may want to consult with an interior designer that can work with you on making a few changes that will not only make you happy but also your guests.

 You can also get help from a real estate agent. Experienced realtors can be very helpful when it comes to making recommendations that will add true value to your home. Even if you feel that you will never sell your house, sometimes things change that are beyond your control and if your house’s design is appealing to both you and everyone else, it will be much easier to sell for the highest price.

Use Quality Materials Or Nothing

Whether your home needs a quick facelift or major surgery it’s important that you use quality materials. This is not only about you being happy while you live there but you should also consider that every penny you spend on your home should be an investment. You should make an effort to use designs and materials that increase your home’s value and ensure that your choices will last for generations to come.

Don’t Forget The Exterior
Creating a consistent look between the exterior and the interior of a home is a must. Having a nice front and backyard really enhances the overall feeling of a home and your guests will notice right away. Consider planting a few flowers near the front entrance for a splash of color.

Get Ideas From The Internet

If you don’t really trust your sense of style and you don’t want to spend money on a professional designer then Google it! The internet can be helpful in many ways to a homeowner searching for ideas. You can view countless images of every home design known to man to see what appeals to you and your sense of style.

 Once you have some ideas about how you would like to decorate your home, you don’t even need to leave your chair for the next step. You can do most or even all of your home furnishings shopping online. Great deals are available from private sellers as well as sites like Amazon, eBay, etc. at a fraction of the cost of the major retailers.

 Finding the right design and decor for your property shouldn’t be frustrating or difficult. It should be fun! Especially if you’re creating the look you’ve always dreamed of. If you enjoy the process, it will be easy and rewarding when you’re done. If you need help or ideas on making your home a happy one, call me. I’m here to help!

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