Orlando Homeowners Beware of These Buyers!

If you’re currently selling your Orlando home, you should be aware of the different types of buyers you can expect to be dealing with. An experienced Orlando listing agent can be extremely valuable to you in detecting what buyers are for real and worth negotiating with and which ones are just out to waste your time and stress you out. Buyers will typically fall into one of the following categories listed below.

Dream home buyers

These are buyers that are looking for their dream home with plans of living there for the rest of their lives. These buyers are more concerned with the quality of the schools in the area, the crime rate, and neighborhood amenities rather than the price. Dream home buyers have no problem paying full price but the home must be move-in ready and the neighborhood must meet their family’s needs.

 Fair price buyers

This category of buyers isn’t concerned with finding a home to raise a family because they are either single or married with no kids and may even be retired. With no kids to worry about, they don’t care about good schools or youth sports programs. No… these buyers are just looking for a good deal on a great home. A few minor repairs aren’t usually a deal killer as long as the price makes sense. They won’t pay full price but they will pay a fair price.

Bargain hunters

Bargain hunters are usually investors looking for their next re-hab project to either flip or rent out. If your home is in decent shape and is priced accurately, you probably won’t even be approached by any investors. Bargain hunters typically target fixer-uppers because they know that’s usually where the best deals can be found.

Buyers with contingencies

Sometimes you will encounter a buyer that absolutely loves your house and wants to give you the full asking amount, there’s only one catch… They have to sell their house first before they can afford to buy your house. Your first reaction may be to immediately dismiss this buyer as being a waste of your time, but wait… this may be your buyer.

Como un Agente inmobiliario en Orlando, I’ve been able to make several of these deals go through. It’s perfectly fine to accept an offer like this as long as there’s a “kick-out-clause” in the contract. This clause allows the seller to continue to keep the house on the market while the buyer sells theirs. If the seller receives another offer that they would like to accept, they just have to inform the original buyer. Then the original buyer would have a period of time [usually 3 days] to either close on the property or cancel the contract.

Bully Buyers

This type of buyer will find something wrong with your house before they even get out of their car.  They will immediately start picking the house apart by claiming that everything is wrong and needs to be fixed even when it really doesn’t. Bully buyers use this technique with the intention of beating you up on the price and are an absolute nightmare to deal with. My suggestion is to stay clear of this type of buyer, you’ll be glad you did.

Phantom Buyers

Sometimes you may encounter a buyer who claims to live out of state, but they want to buy you house just from seeing the photos. Although this may be true sometimes, it can also mean that the buyer just wants to tie your house up so they can buy some time and look for an exit strategy. Don’t even consider an offer like this unless you’re able to collect a substantial and non-refundable deposit from them.  

As you can see from this article, there are many things to be aware of when dealing with potential buyers for your house. Selling a home will be one of the most important decisions of your lifetime. If you need help or just some friendly advice about buying or selling a home in Orlando, feel free to call me at 407-902-7750. I’m happy to help!

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TOR 013: Orlando Short Sales, Who Pays The Realtor?

Hello and Welcome to the Los mejores agentes inmobiliarios de Orlando podcast, where we answer questions from consumers and talk about all things real estate.

 I’m your host John Conde and I hope everyone is doing well. In today’s episode, I’ll be discussing how Orlando real estate agents get paid in a short-sale scenario that is different from a traditional listing. Here are some highlights from today’s show.

How Does The Realtor Get Paid When It’s An Orlando Short Sale?

  • Realtors are not allowed to charge an upfront fee to do your short sale
  • Typically, short sale candidates are upside down on their mortgage
  • The short sale lender ends up paying the realtor commissions
  • Sellers can get thousands back in relocation assistance from the lender
  • A short sale on your home should be recorded as a full payoff.
  • Hire an Orlando short sale expert to ensure you have the best chance at short-selling your home.

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5 Tips For Buying An Orlando Foreclosure

By buying an Orlando foreclosure property aka REO [real estate owned] property, home shoppers can potentially get the deal of a lifetime.

Lenders that have taken a property back after going through the foreclosure process are often eager to unload these properties and are willing to take a significant loss to do so. It’s important to know that buying a foreclosure home works a bit differently than buying a home through a traditional listing.

The following are some things that home shoppers should consider before making an offer on a foreclosure property.

1- Buying “As-Is”

Distressed homeowners that are about to be foreclosed on are sometimes disgruntled with the bank and feel like they want revenge against the bank. They may even strip the home of anything of value like the central AC unit, appliances, fixtures, etc. In my experience as a realtor in Orlando, I’ve seen foreclosure properties that have been vandalized to the point where the homeowner has destroyed windows, and walls and even filled the toilets with cement!

However, if the price is right, don’t let these things discourage you. Anything can be fixed or replaced. Before making your offer, find out how much a contractor would charge to make the necessary repairs.

2- Know What You’re Up Against

When you buy a home from a homeowner through a traditional listing, you’ll probably get some helpful advice about the home like a loose door handle or leaky faucet that needs replacing. However, with a foreclosure property the homeowners won’t be around to give you any advice or history about the home. The lender that now owns the property won’t be able to provide you with this type of information because they’re not familiar with the home.

That’s why it’s so important to have a thorough inspection done on the home or you could end up with a money pit on your hands.

3- Don’t Low Ball The Bank

While it is true that you can get a heck of a deal buying a foreclosure property, don’t think that the lender will accept any offer that you submit to them. As opposed to individual homeowners, lenders can afford to keep the property until they feel that the price is right to sell it. The best practice is to get an estimate for all the necessary repairs and make your offer based on other comparable properties minus the cost of repairs. This number should get you into the ballpark.

If you choose to send in a low ball offer to the bank, they may not even consider your offer and you could end up losing the deal.

4- Be Patient

Buying an REO property usually takes a lot more time than buying a home the traditional way from a homeowner. These lenders have thousands of foreclosure homes to deal with which means it takes quite a bit longer to get around to looking at your offer and deciding whether to accept it or not. If you want to be in the foreclosure buying market, patience is not a virtue, it’s a necessity.

5- Hire An Orlando Realtor Buy A home in Orlando, FL

Lenders have procedures and systems set up specifically for selling foreclosure properties in Orlando. This can make inexperienced home shoppers feel like fish out of water. That’s why it’s crucial to enlist the help of an experienced Orlando Realtor to help you on your quest to buy a foreclosure at a great price. If you rely on the listing agent that was hired by the bank to help you with everything, you may be setting yourself up for disappointment.  

The agent that was hired by the lender is probably dealing with dozens of foreclosure properties at the same time which means that you won’t get the attention that you deserve. By working with a top Orlando Realtor, you can have the confidence of knowing that you’re in good hands and you won’t have to worry about having to contact the listing agent about anything.

Your Orlando realtor will also be able to provide you with a list of recommended home inspectors and contractors in the area so you don’t have to spend your time researching them yourself.

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8 Things Not To Do When Selling Your Orlando Home

If want to sell your Orlando home fast for top dollar, there are many things to consider before putting it on the market. Working with sellers and buyers as an Orlando real estate agent since 2005, I’ve experienced firsthand what works and what could cost you the sale. These days home shoppers expect to get a good deal no matter what market conditions are. Here is a list of common mistakes made by homeowners when trying to sell their Orlando home

1- I’ll price my home high then lower it gradually until it sells.

I see this mistake all the time with Orlando homes listed on the MLS. For some reason, some homeowners have a tendency to believe that their home is somehow worth more than every other home in the neighborhood and then the price is higher than all the others.

By pricing it higher you’re missing out on buyers looking for homes in the price range where your home should be. The end result is that the home takes much longer to sell and ends up selling at the price that it should have been listed at in the first place… or even lower.

Your Orlando realtor should provide you with a comparative market analysis [CMA]. This is a report that shows you all of the comparable homes in the neighborhood that are for sale or have been sold. Use the CMA to help you determine what price to list your home for.

2- Whoever buys my house can worry about the minor repairs.

Home shoppers are looking for a deal and they will look for any excuse to try to discount the price. Some buyers won’t even submit an offer if the home needs repairs, no matter how minor they may seem to you. Fix anything that needs to be fixed, including the small things that you may think, are no big deal.

3- Curb appeal is no big deal, wait until they see the inside!

Big mistake!…and guess what? Most buyers won’t even bother to go inside your house if it looks run down on the outside. Trim the trees, cut the grass, touch up the paint and plant a few flowers by the entrance. You only get one shot to impress them as they drive up, don’t blow it!

4- I have to do some serious upgrading to get my house sold.

Don’t make any major improvements to your home for the sole purpose of getting it sold. Homeowners sometimes make the mistake of thinking that if they do major upgrades like building a pool or adding a bedroom that they will automatically get a return on their investment. Not true, especially if your house is the only one in the neighborhood with a pool because there won’t be any comparable properties to yours to justify the significant increase in price that you’re looking for.

5- Buyers aren’t swayed by small incentives

What you may consider being no big deal might be a huge deal in the eyes of an interested buyer. Believe it or not, offering something as simple as a 1 year home warranty that only costs a few hundred bucks could be the difference between the buyer submitting an offer or not. Speak to your Orlando real estate agent about what incentives you can offer to sweeten the deal.

6- By not hiring an agente inmobiliario en Orlando, I can save money by selling on my own

Selling a home will be one of the biggest decisions of your lifetime. You can lose valuable time and money by not enlisting the help of an experienced real estate agent. Real estate agents will not only take care of marketing your home and reviewing offers, but they will walk you through the home selling process from the beginning all the way to the closing of the transaction.

Most homeowners that start out by trying to sell their home on their own ultimately end up hiring a listing agent after they get little or no results.

7- I want to be there for all showings because no one knows my house better than me

Don’t do this! Let your real estate agent do what you hired them to do…sell your house. Buyers can sometimes feel uncomfortable when the homeowners are present and this prevents them from visualizing the home as if it were theirs. Try making it a point to not be there when your house is being shown. This will allow the potential buyers to move throughout the home freely while envisioning it as their own.

8- It’s my way or the highway!

Don’t approach the sale of your home as if the buyer were your enemy. Remember, the goal here is to get sell your house so be open to some negotiating. Again… let your Orlando realtor do their job by handling the negotiations. Never try negotiating directly with the buyer as emotions and opinions will certainly get in the way of what both of you are trying to accomplish… to sell a house and buy a house.

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TOR 012: Who Pays The Realtor’s Commission?

Hello and Welcome to the Top Orlando Realtor podcast, if you’ve been here before, we are happy to have you back 

I’m your host John Conde with ORC and today we’ll be talking about how real estate agents get paid on a traditional real estate transaction. 

How Orlando Real Estate Agents Get Paid

  • Real estate agents aren’t like other professionals who bill for their time hourly or present an invoice at the end of a project. If a Realtor doesn’t produce, they don’t get paid.
  • Realtors should never charge an upfront fee.
  • Real estate commission is based on the sale price of the home.
  • Everything in real estate is negotiable… including realtors commissions.
  • Commission usually gets paid by the seller.
  • Orlando short sale transactions are different than traditional transactions

Thanks for listening!

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