Buyers Tips
TOP TEN QUESTIONS BUYERS SHOULD ASK THEIR REALTOR and might not know to ask.
1. How many years of education and experience do you have? Do you sell real estate full time? How long have you been licensed as an agent or broker?
Answer: Check that the real estate agent currently has a license in good standing and ask him about his/her professional experience. Look for a real estate agent who has been in the business for at least five years as experience is one of the critical factors in choosing an agent. Ask him or her about their work schedule and how they want to be contacted. Ideally, your agent is a full-time realtor who is easily accessible by email, cell phone, and in person.
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2. Do you have a good reputation locally? Do you have any references?
Answer: Ideally, your agent should be active in local Boards of Realtors and have access to ALL relevant Multiple Listing Services in your area. Any agent should be able to happily provide with several contacts who can provide references.
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3. How often will you communicate with me and how will you do it?
Answer: The success of your transaction depends on regular communication. You should agree to the frequency of contacts and the method of communication upfront: contact is vital, even when nothing is happening!
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4. If buying a home within a Home Owners Association or Condominium Association, there are many important questions regarding the building that should be asked, i.e… Are there any assessments pending or expected? What are the maintenance fees? What is the budget and financial status of the Association? Does the Association have money in reserves?
Answer: The State of Florida has a Comprehensive Rider to the Contract for Purchase and Sale regarding Association Disclosures. This disclosure is completed by the Seller covering fees and assessments. When the written Purchase Contract is completed, this disclosure requests copies of the financial statements, rules & regulations and/or and condominium documents. All contracts are voidable by delivering written notice of intent to cancel the contract within three (3) days, excluding weekends, and holidays, after receipt of a current copy of the above-cited documents. This gives the buyers ample time to review, or have legal counsel review the documents to be sure they are comfortable with the rules, regulations,and financial status of the condominium.
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5. If you want to buy a condominium or co-op, you should ask if the building allows pets, and if the unit is allowed to be leased.
Answer: Many buildings do not allow pets. If this is important to you as a buyer, don’t try to “sneak in a pet”. This is a big mistake. Rely on your Realtor to show you only the buildings that accept the type of pet that you own. The first thing to discuss with your Realtor is the type and size of your pet. It saves time for everyone.
The same is true about leasing. If your goal is to lease out your condominium or co-op rather than to live in it personally, you must advise us. All buildings have leasing regulations. Many buildings allow leasing one time a year, others don’t allow leasing at all, and some allow leasing once every 2 or 3 years. It saves a lot of time if you immediately disclose your goals regarding your purchase.
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6. Can you , as my Realtor, help me with referrals for specialists or sub contractors to help me with my purchase during and after escrow?
Answer: The Realtor should be able to provide a list of extremely competent and well respected specialists to assist in the smooth purchase transaction. This could include a referral to a loan agent, mortgage broker, or bank to assist in getting you approved for a loan. It would also include hiring a competent attorney to review the Contract, survey, and elevation certificate, and in the case of a condo, the condominium documents and financial statements. A Florida Certified Real Estate Attorney is suggested.
A buyer should also have a competent inspector. All properties should be inspected during the specified inspection period typically (7 to 10 days). This includes, but is not limited to: termites, roof, plumbing, electrical, appliances, etc.
Lastly, you may require an estate manager, a handyman, an architect, builder, contractor,or even a housekeeper.
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7. If a buyer is purchasing a single family house during the inspection period you should always request a survey and an elevation certificate?
Answer: When we find the right home for you, I would highly suggest that you hire an expert to obtain your own survey and elevation certificate during the inspection period, particularly if you intend to build. In my experience, I have found that the survey of the current owner was incorrect. It is always in your best interest to be sure the dimensions of the lot on the survey is correct, as you are sometimes buying according to square footage, and if you plan to tear the existing home down and rebuild the size of the home you are allowed to build would change if the lot size were inconsistent.
The elevation certificate relates to height above sea level. FEMA and the Town of Palm Beach have rules and regulations relating to building and renovating properties and those rules are based on the elevation of the property. It is always best to learn the elevation prior to purchasing a home, particularly if you are planning to build or renovate. Better to be safe than sorry!
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8. You should ask about the location of the property they are interested in. For example, does this area typically flood during a hurricane? What is the Realtor’s opinion as to the best location for resale? Which properties typically sell best in a down market and retain their value?
Answer: As a town resident and a Realtor in Palm Beach for over twenty years, I am pleased to readily give my opinion and personal knowledge as to these important questions. In addition, we review all comparable sales in the neighborhood of interest through the information available to us through the Board of Realtors and public records. We present the current home owner with a Seller’s Disclosure Statement so that we may learn what the homeowner already knows about the property.
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9. A buyer should ask the history of a listing and a how long has it been on the market? Have there been any price adjustments? Why are the current owner’s selling? What are the other recent comparable sales in the in the area?
Answer: We have the complete history of a listing including price adjustments and recent sales at our finger tips. As members of the Multiple Listing Services, through the Palm Beach and Regional Boards of Realtors, this information is readily available to be printed or e-mailed to a potential buyer. We have excellent relationships with all the listing agents and learn the reasons for selling and other pertinent information concerning the condominium or home in question.
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10. A buyer should ask questions regarding the potential fees to be expected at closing, the expected real estate taxes, maintenance fees, and insurance costs. Regarding insurance, it is important to learn if the property has hurricane windows and doors or shutters.
Answer: As your Realtor, we can provide you with an estimate of the closing costs. In the State of Florida, in the county of Palm Beach, the Seller typically pays the bulk of the closing costs i.e.., Document Stamps on the Deed, Commission to Realtors, and Title Insurance. The buyer’s fees are minimal.
In a condominium, the quarterly maintenance fees typically do not include the annual real estate taxes. The taxes are billed each year by the County, and are generally assessed at an estimated 2% of the purchase price, although this could change by the taxing authorities at any given time. Regarding insurance, we suggest you contact an expert in this field, by referring to you a few qualified insurance brokers, who are committed to the area, and are happy to assist you in obtaining the proper insurance for your new real estate investment.
