Florida buyer beware licensees who say they can be your buyer’s agent when their broker is a transaction broker not a “single agency” broker. Just because an agent has an ABR, Accredited Buyers’ Representative designation, does not mean they and their office does not take listings. Should a buyer become interested in a property listed by the agents real estate office; the law says there is a conflict of interest between the buyer and the seller. These brokers or agents will ask the real estate buyer to let them change their status from buyers agent or buyer broker to transaction broker who can no longer give the buyer full representation. Finding out your agent doesn’t represent you is like finding out there is not Santa Claus!
Cash only real estate listings or properties put up for auction are likely to have big issues. The property may be in very bad condition, involved in fraud or have some adverse problem like property liens or Chinese drywall.
A condominium community may have too many investors in the development. Banks will not finance in condo communities with too many investors therefore, resale opportunities are often limited to cash only buyers.
So, they won’t know if the property will qualify for financing, whether it is in a flood zones, or ask the seller simple things like age of roof and a/c systems. They tell the buyer the can have a home inspection after they have a contract, which cost hundreds of dollars. The buyer might make an offer for thousands of dollars more than the buyer might have offered had they known a few simple property condition questions. The property condition always influences whether the buyer makes an offer and how much they think a property is worth. In Florida there is no legal requirement for a seller to complete a property disclosure from in writing for the buyers.
Some foreclosure property sellers will not allow the sellers listing agent to disclose known defects to buyers. Foreclosure institutions require the buyer to use their title companies. Much caution is recommended in reviewing any exceptions to title insurance policies provided by foreclosure institutions.
There are any number of reasons why this can happen. It is not always because the buyer did not qualify for a mortgage. It could be any kind of adverse property condition, like toxic Chinese drywall or a short sale heading toward foreclosure. The seller’s agent may not disclose the reason to the next buyer.
Some agents take short sale listings and use fictitious buyers or investors to flip the property. Then they sell the property to another buyer at a higher price as soon as they close the short sale. This is type of fraud is cheating the seller and the bank out of the additional money made by the agent and or investor.
Between 2008 and 2010 many large builders left developments with partially build homes. Sometimes no clubhouses were built for the existing homeowners. Investors have been buying the left over inventory in some bankrupt communities and offering it for sale to buyers. Sometimes they hold the vacant land until the prices come back or until they can resell their interest to another developer. That developer may or may not build the club house promised to those owners already living in the development. Be sure the clubhouse is at least under construction and close to completion before purchasing in a new development.
Investors are competing with banks buying their properties when auctioned at the courthouse. These investors do not pay off the mortgages or obtain title insurance. They flip the property to an unsuspecting buyer who pays cash and who does not realize the property may still have outstanding debts.
It is not uncommon to hear a buyer say to an agent, “if you find a good deal, I’ll get on a plane and fly down.” Buyer beware, another buyer might make an offer while you are on the plane coming to see a property! The seller does not have to wait to see if you will make an offer when you arrive. It is the listing agents job to talk you into coming down to buy their sellers listing. Whether it is really what you want or not. Once you arrive they will show you anything else they think they can sell you. Whether it is something you really want or not!
I am Beverly Howe, the original Florida Buyer Broker. I have a proven proven track record of assisting buyers with honesty, integrity, negotiating skill, loyalty and professional experience. I only represent you, the buyer and will never ask you to let me switch to a transaction broker. I am a buyer broker you can trust to provide you with the best real estate buying expertise available. You will be confident you have made the best buying decision possible.
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