Does the Buyer or the Seller Pay an Agent’s Commission?

We’re back for another edition of “You’ve Got Questions, We’ve Got Answers.” Today’s question is: Who pays the commission in a real estate transaction?

Many buyer’s agents lead people to believe that because the seller is offering the commission amount, the seller is paying the commission. Then, the listing agent says that because the buyer is bringing the money to the table, it’s really them that is paying the commission. So, which one is it really?

If you think of a transaction as a pie, there’s a sliver of that pie that goes to the listing agent and listing company. There’s also a sliver that goes to the buyer’s agent and the buyer’s broker. That money comes funded from the transaction of the sale, so it ends up being the buyer who is actually paying for it. 

In effect, the buyer who brings the money to the table exchanges money for the property and that's where the commission comes from. However, the seller does technically offer the amount to the agent who brings the buyer, so it’s a little bit of both.

If you have any other questions, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

Looking to sell your home? Get a FREE home value report
Looking to buy a home? Search all homes on the MLS

Interested in a career in real estate? Let's meet!

Got a Cell Phone You No Longer Use? Here Are 5 Ways to Repurpose It

Do you have an old cell phone you’re no longer using? Today I’ll be sharing five easy ways to repurpose it. 

Looking to sell your home? Get a FREE home value report
Looking to buy a home? Search all homes on the MLS

Interested in a career in real estate? Let's meet!

Do you have an old phone you no longer use? If so, don’t just throw it out. Besides simply trading it in, there are many other ways you can put old pieces of technology to good use.

Today we’ll be sharing five clever ways you can repurpose an old cell phone:

1. Use it as a glorified alarm clock. Even after you remove the SIM card, most cell phones still have the capacity to connect to Wi-Fi. So, using that Wi-Fi connection, there are two alarm clock apps I recommend for those who need a little extra help getting up in the morning. The first is called “CARROT Alarm” and the second is “Pzizz.”
2. Use it as an E-reader. Old cell phones can easily be used to read e-books or listen to audiobooks through platforms like Audible.
3. Use it for home security. There are a number of cool apps that will help you monitor your house while you’re away. Whether you want to keep an eye on your pets, your front door, or your baby’s room, an old cell phone can be an easy and inexpensive security solution.
4. Use it as a backup. Keeping your old cell phone charged and in a convenient place could save you a lot of trouble in case your current phone stops working. Having a backup phone can be very useful in a pinch.
5. Donate it. There are a number of charities that refurbish and distribute old cell phones to those in need.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

 

How Can You Protect Yourself Against Home Repair Fraud?

If you don’t want to fall prey to home repair fraud, there are three common red flags you need to watch out for.

Looking to sell your home? Get a FREE home value report
Looking to buy a home? Search all homes on the MLS

Interested in a career in real estate? Let's meet!

Whether you’re facing a summer hurricane or a winter storm, we homeowners all have to deal with damage being done to the exterior of our homes at some point in our lives. In today’s episode of “Keeping In Tune With the Market,” I want to share a story about home repair fraud that happened to a client of mine and give you a few tips on how to prevent the same thing from happening to you. 

This client was an elderly lady whose roof was damaged in a storm. When a roofer came by and offered to fix the damage for a ridiculously low price, she of course agreed and signed a contract. In return, her insurance company gave her a check that was written out to both her and the roofer. She signed the check over to the roofer, but she never got her roof fixed.

To prevent this kind of home repair fraud from happening to you, there are three red flags you need to watch out for.

First, if a contractor comes into your neighborhood and makes a “now-or-never” offer to make a repair at a reduced price while they’re in the area, don’t fall for it.

Second, if you hire a contractor to make a repair on your home and your insurance company issues a check that’s written out to the both of you, don’t sign the check over to the contractor until the repair has been made and it’s been inspected by another licensed contractor.

“

Don’t sign your insurance carrier’s check over to the contractor until the repair has been made.

”

Third, if the contractor had materials they needed for your job, make sure they show you a paid receipt for those materials so you don’t get stuck with a lien on your house because they took off and took your money without paying for them.

If you have any questions about this topic or you have any other real estate needs I can help you with, feel free to call or email me anytime. I’d be happy to help you.

As always, remember to keep in tune with the market. Until next time, make it a great day!

What Happens When the Market Favors Sellers?

What exactly is a seller’s market? Let’s find out.

Looking to sell your home? Get a FREE home value report
Looking to buy a home? Search all homes on the MLS
Interested in a career in real estate? Let's meet!

What is a seller’s market? This is a question I’m commonly asked, so I’m going to address it today. Contrary to how the name may make it sound, a seller’s market actually means that there are more buyers than sellers. A seller’s market is one that favors sellers. Let me give you an example. Imagine a town with 10,000 households and 300 houses for sale. Not many people move in this town, but there are a couple of new businesses in town, and these businesses are drawing in new employees. All of these buyers are competing over the same 300 houses.

When the market is in the seller’s favor, they can sell quickly and for top dollar.

According to the laws of supply and demand, this sets sellers up for success. When there is a limited supply of a product, the people who are selling it can take advantage of the increased demand. This applies to real estate as well. When the market is in the seller’s favor, they can sell quickly and for top dollar. However, buyers in a seller’s market are not necessarily at a loss. There are some tips and tricks you can use as a buyer to still get a good deal. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Property Taxes Can Have a Big Impact on Value

One aspect of home value that buyers and sellers tend to ignore is the property tax bill. It can actually cause huge problems when it comes time to move on.

Looking to sell your home? Get a FREE home value report
Looking to buy a home? Search all homes on the MLS

In this episode of “Keeping in Tune With the Market,” we’re taking a closer look at property taxes and how they affect home value. We decided on this topic after receiving a great question from Gary, which went like this:

“How do property taxes affect Tampa home values when buying or selling?”

To illustrate our point, we’d like to tell you a true story. This occurred recently with two different homeowners who decided to list their properties. We’ll call them Homeowner One and Homeowner Two. Both of these homeowners owned 3-bedroom, 2-bathroom homes with garages and backyards. However, these homes ended up being very different in the eyes of buyers. Why? They had different property taxes, with Homeowner One’s property having an assessed value that was 25% lower.
 
How did one homeowner’s property taxes get so much higher? There were a number of factors. Homeowner One had a lower tax rate and millage rate than Homeowner Two because they were in different districts. Homeowner One also kept track of any improvements or updates she made to the home. She was also able to protest her assessment because she had the numbers to back up her arguments. She also made sure to register for a homestead exemption, which further lowered her taxes.

Pay attention to your property taxes.

Homeowner Two was located in a different district where property taxes and the millage rate were a little higher and there was nothing she could have done about that. However, she could have monitored the improvements she made and made sure she was being correctly assessed. After taking a closer look, we found that she was being assessed for a fireplace despite the fact she didn’t have one. She didn’t apply for her homestead exemption either.

What happened when these homes were listed? As you can probably guess, Homeowner One had a quick, profitable sale while Homeowner Two had to languish on the market and eventually reduce the price to get the property sold. The bottom line is that property taxes make a huge difference whether you are buying or selling and you want to be as informed about them as possible if you are a homeowner looking to make a move.

Thanks again to Gary for the question. We’ll be sending you a $25 Panera gift card. Remember, if we answer one of your questions on our videos, we’ll send you a gift card as well.

If you have any other real estate comments, questions, or concerns about the Tampa market in the meantime, give us a call or send us an email.

Avoid Major Mortgage Mistakes When Buying in Tampa Bay

I recently had a buyer whose lease was up. This buyer had been in the army and felt that he “hadn’t had a place to call home since.” He was about to close on the property when the lender sent an email requesting more paperwork, pushing the closing back another month.

The buyer had sent in his application on time and paid for inspections and appraisals. Unfortunately, the lender never sent the application to underwriting. When the buyer asked why everything took so long, the lender cited staffing issues. Because of this, the buyer didn’t have a home to move into when his lease was up. As the buyer said, this finance company failed.

When you buy a home, there are certain things you can do to avoid major mortgage heartbreak like this. First of all, make sure you work with a local, reputable lender. Get recommendations from friends and colleagues. Hire someone who has done many transactions. 

“

Work with a local, reputable lender.

”

Please, don’t search online for lenders and hire one from a different state. They won’t know any appraisers in our area, and that can only lead to headaches.

You should also make sure that you have money in the bank to close. That means you should have enough for your down payments and closing costs. Don’t run up any additional debts by purchasing something like a car or furniture between contract and closing; doing so will also cause trouble with your mortgage.

Finally, make sure that you call your lender with any questions. Make sure you are pre-approved, not just pre-qualified.

If you have any questions, give us a call or send us an email. We would be happy to help you!

How to Avoid Common Home Inspection Mistakes When Buying & Selling

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Value Report

I wanted to touch on five common mistakes that I often see buyers and sellers make with home inspections in the Tampa area.

1. Not researching the home inspector. Some people hire purely on price, and we all know what happens. Many certified home inspectors belong to the Association of Certified Home Inspectors. Ask the inspector to provide their credentials before you hire them.
2. Not attending the inspection or getting too involved in the inspection. Yes, you should be there for the inspection if you’re the buyer; they will explain little things that will help you when you own the home, and it’s not as scary as reading a long report. From a seller’s point of view, the inspection is very invasive, and most of the time it’s best to meet the inspector, give them your cell number, and leave.
   “
   

   With a pre-inspection,
   you can get ahead of issues.

   
   ”
3. Reviewing the inspection from an emotional standpoint. From a buyer’s standpoint, read the items that need to be fixed and what needs to be done to get them up to standard. As a seller, don’t take offense because you’ve been told things are wrong with your house. Look at them as things that need to be corrected.
4. Not obtaining a pre-listing inspection. This is for sellers only. With a pre-inspection, you can get out ahead of issues that can be easily fixed before putting the home on the market.
5. Not preparing for the inspection. As a seller, you need to make sure all areas of the home are accessible. Can the inspector get into the garage and the attic? Are all the utilities turned on? Buyers should check with their agent to make sure the power, water, and all utilities are on, so when the inspector does their job, they can get access to everything they need.

I hope you find these tips helpful. If you’d like to have a detailed report on mistakes that buyers and sellers make with inspection, click here or call me at 1-800-822-1222 and we’ll happily send you one!

How to E-Sign a Document Via Email

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Value Report

Whether you’re 18 or 80 years old, there will be some point where you will sign a document via email. This tool saves a lot of time, especially in the real estate industry.

It’s incredibly simple. Let’s review a brief demo. First, fill in your personal information. Next, review and act on these documents. You’re already at the point where you need to sign once you read everything over. At the bottom of the page, you sign to agree to the document’s conditions. You can see I’ve already chosen a signature that reflects my own handwriting. Lastly, click finish.

It’s that easy! Now you know how to sign a document electronically, in case you’re ever asked to. If you have any questions about this topic or more, please contact me. I’m available by both phone and email! I look forward to hearing your questions, suggestions for future topics, feedback, and more.