There’s a saying that a property is worth whatever someone is willing to pay. Here in the South Tampa Real Estate market buyers are willing to pay more. In our capacity as a seller’s agent, we are experiencing multiple offers in all price ranges. People are willing to pay asking, if not above asking price because interest rates have come down so low. From my experience, properties that are priced well aren’t staying on the market more than a week. Sometimes only one day.

If you wait much longer to buy a home, you may wind up paying even more.

How to get your offer accepted.

I wouldn’t be afraid to offer a higher amount than the price a property is listed at, especially if your Realtor says there are multiple offers on the home.

Why would you risk offering more?

First, if the property doesn’t appraise, you’ll be able to renegotiate or back out of the contract.  Just make sure you have an appraisal contingency in the offer, even if you are paying cash.  If it doesn’t appraise, the seller will most likely sell it for the appraised value.

Why has the Tampa Real Estate market become so competitive?

Our inventory is down to five months, which is half of what it was this time last year. What that means is that if no new  homes came on the market, we would sell every home on the market in five months! 

Our average sales price is up by $16,302 as well.  You can see the latest MLS stats here.

How does a seller create a bidding war?

From what we have been seeing, my opinion is that sometimes sellers and their agents are pricing desirable homes on the low side, below market value, to create bidding wars and drive the price up.  Sellers could wind up getting the same, or a little more, as they would have if they’d priced it higher. Seems like a “game,” but this strategy is what’s working at the moment.

What are your thoughts? Are you in the bidding war game?

If you’ve been thinking of selling your house and want to schedule a consultation you can contact me here. 

As a Tampa Realtor one of the most common questions I’m asked by buyers is “who pays the commission?”

A Buyer’s Agent is compensated by splitting the Selling Agent’s commission, so it cost you nothing.

So what does a Buyer’s Agent actually do, and why do I need one?

A well accomplished Realtor will be able to help you purchase a home in many ways you may not have thought about. First, a Buyer’s Agent is working for you and has your best interest in mind. Think of the relationship as having your own personal representation from someone who is going to guide you in the right direction and negotiate the best possible price on your behalf.  While you, as a buyer are looking at all bells and whistles, like granite counter tops and stainless steel appliances, your agent may notice little things that most buyers wouldn’t think of looking for. They will point things out about the home such as: Stains on the ceiling from possible water intrusion, stucco repairs to the outside, or termite damage.  In addition to pointing out defects of a home, a good Buyer’s Agent will be able to explain in detail the terms of the contract and leave you with a “way out” should you decide not to proceed due to a home inspection that revealed issues, or if a home doesn’t appraise for the purchase price.

The Goal of a Listing Agent:

To get the best possible price for the owner in the shortest period of time. A listing agent works for the seller and may not be able to disclose certain pertinent information to you, such as what the seller’s bottom line is, or what their motivation is for selling. A listing agent can also use the information you give them to relay your thoughts and feelings back to the seller. Let’s say you are really excited about a home and disclose this to the listing agent who showed you the home. You then decide to make an offer with the listing agent who knows you love the home. The listing agent will most likely tell the seller that they believe you will come up in price based on your emotional attachment to the house.

Good Questions to Ask a Realtor who is a Buyer’s Agent:

• How much was the home listed for originally and how many price reductions were done?
• How many days the home has been on the market?
• Can you give me any history of the home in (MLS), Multiple Listing Service i.e…. if it was listed prior with another Realtor and how much they were asking at that time?
• Information about property taxes and how much they will go up next year?
• What is Homestead Tax Exemptions and how does it work?
• What is the neighborhoods popularity and where are the good schools?
• What homes sold for in a particular neighborhood, called a Comparable Market Analysis.
• How do short sales work?
• Can I put more than one offer in at the same time?
• Are there any outstanding permits that have not been closed out?

If Real Estate Buyer’s Agents are free to use, why wouldn’t you want to use one?

Don’t pick the first agent you speak with, instead interview at least two agents to determine who is the right fit for you.  You should also ask for recommendations from their past clients , and do a Google search for their name. You’d be surprised at what you can find out.

If you are a thinking of purchasing a home and would like to be referred to a real estate agent in the Tampa Bay area, you can contact us here . 

Here’s 3 key factors to consider when negotiating offers on a foreclosure.

I’ve based this on an example of a condo listed for sale in Tampa, Fl at $149,900. By the way, the unit originally sold for $269,000 back in 2005.

1. In this case the bank has already priced it at the lowest price per sq ft for sold units at $122.00. per sq ft.
2. How long is the bank planning on waiting for other offers to come in?
3. Are there currently other offers on the table?

Driving factors and why you may want to consider offering more:

I just recevied this email from another agent here in our firm.  He’s been working with a client for a couple months and it seems the buyer’s expectations are not inline with our market. “Sean has been frustrated by not being able to buy a foreclosure for less than asking price.”  He’s given up and has not requested any further information”  Looks like Sean has some competition.

.A foreclosure (REO) can close in 30 days or less. That makes it even more enticing because some people can’t wait months for a short sale. The bottom line is that they are willing to pay more instead of paying $1,200 in rent for another 6 months while they are waiting for a short sale. Makes sense.

What’s causing the bidding war? The Tampa Real Estate market’s inventory is down to 5 months, from 22 months 5 years. (You can download the latest housing report here). There’s not much to choose from, especially in the lower-end price ranges, and in desirable areas like South Tampa, where most of my clients are looking to buy at the moment.

Tips on how to deal with multiple offers:

The mentality of buyers when they know another offer exists is something you have to consider. As a general rule in this price range I would suggest bidding about 1K more than what I think someone else will offer. I can only speak from my experience as a Relator. If there are multiple offers most people would go up 5K on a 150K asking price. So an offer of 156K may get you the winning bid. Now, if everyone is thinking like me, why not add another $500.00 to be on the safe side?

We will never know what the other offers are, their financing terms, when the buyer wants to close and so on. My guess is that the bank would like to get it off the books by the end of the year. If someone is financing that most likely won’t happen, so a cash offer may be a more aggressive approach.

Ask yourself how badly do I want the buy this home? A few thousand dollars in the end isn’t going to make much of a difference obviously.

Remember, anyone looking in your price range is thinking the same strategy as you, crunching the numbers and looking at the comparable sales.

Feel free to take my opinion for what it’s worth:) oh, and if you don’t already have a Real Estate Agent that can guide you I’m happy to help.

See Also: Step By Step Process of Making an Offer Q &A

6 Reasons to Own Your Own Home-Still on the fence about buying a home in Tampa? Home prices and interest rates will likely never be this low again. Here are the biggest factors involved when deciding on home ownership.

• Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home.
• Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

• Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
• Predictability. Unlike rent, your mortgage payments don’t go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.
• Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.
• Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Here’s a great example of how much you can save buying vs renting over a 10 year period, based on a $1,200 rent payment, versus purchasing a 150,000 home.

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Thinking of relocating to MacDill AFB in Tampa?  Here’s a great article on the benefits for first time home buyers for military personnel

Armed service, intelligence service and foreign service personnel on active duty and out of the U.S. for 90 days during any part of 2009 get an additional year to buy their homes – to May 1, 2011.
Another benefit is a waiver on the time of occupancy. Most home buyers using the tax credit must use that home as a principal residence for a period of no fewer than three years or forfeit the entire credit. But military, intelligence and foreign service members do not have to repay the credit if they sell their home in less than three years if they move because of official business.

From JerryMooresPhotography

“NAR is the leading advocate for private property and home ownership issues, and firmly believes that those who are in service to their country should be full participants in the home buyer tax credit law,” says NAR President Charles McMillan. “These men and women are often hindered by hardships from full participation in the American dream of home ownership because their duty disrupts them in the buying and selling of a home.” NAR was a main advocate for the home buyer tax credit extension into 2010 and its expansion to include present homeowners.

Under the tax credit extension, eligible first-time home buyers can get a tax credit up to $8,000. Current homeowners are eligible for a $6,500 tax credit, provided they have lived in the home they are selling, or have sold, as their principal residence for five consecutive years in the past eight years.
Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples.

The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

If you are buying or selling a home near MacDill AFB and would like to speak with a Realtor, please feel free to call me (813) 784 7744

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