The importance of deciding on the Representation

Customary Contract Terms for offer

Dealing with builders or developers for the purchase of new properties

A free Guide for anyone who wants to convert Real Estate into cash!

 

The importance of deciding on the Representation

by Leo Rebholz-GRI

Only Sales Associates with a valid Florida Real Estate License are by law allowed to give price information on properties for sale and show properties.
The word “Realtor®” means that the Licensee is an active member of the National Association of Realtors. Realtors have to adhere to additional codes of ethics beyond and above what is required by law. Florida Law requires every Real Estate Agent to inform a prospective client of the choices of Relationships available. The choices are:

No Representation:

This is a lawful relationship, which requires only minimal duties by the Licensee and is not in the interest of the Buyer.

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Single Agent

This is the most complete and exclusive form of Representation for a prospective client and requires the most duties by the Licensee.

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Transaction Broker Relationship

This form of Representation is required when a Real Estate Agent represents both the buyer and the seller and the duties are limited because of the dual relationship. Florida Law requires that a Licensee give to the prospective client the respective Brokerage Relationship Disclosure Form at the beginning of their relationship. The receipt should be acknowledged with a signature. None of the above named disclosure forms oblige or bind a prospective client to use this Licensee for any length of time. It is not a contract but a disclosure of what to expect from the relationship.

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The Relationship with your Realtor

If you are working with a Licensee who is a Realtor® you are assured of an ethical treatment. Additional designations behind the Realtor’s name mean that he or she has received additional qualifications through additional studies and official tests. Buying Real Property is first of all a matter trust. You have to feel comfortable with your Realtor® and trust him or her. The easiest way to establish a new relationship is when your Realtor® has already done a good job for somebody you know and has been recommended to you. Every Realtor® has access to all the properties in the MLS –System if he is a subscribed member. There is no need to change Realtors after establishing a comfortable working relationship since every Realtor® has access to all the properties on the market.

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Realtors Compensation

In SWFL the seller pays the commission for using the services of a Real Estate Company. Buyers pay no commissions. Only licensed brokers are allowed to receive commissions from the sellers. Realtor Salespersons receive their commission from their broker after the broker has taken his part. Realtor Salespersons pay all their expenses, like car expenses, advertising and promotion for a listed property, insurance, postage and phone expenses etc.
On a Re-Sale the commission is paid to the Salesperson’s office at closing when he had the listing and / or found the buyer and wrote the contract.
When dealing with New Properties and the Seller is the builder or Developer, a buyer’s agent only gets a commission if he accompanies the buyer on his first visit to the Seller’s Sales Office. The actual commission payment is also at closing. If the Buyer visits the office alone, his Realtor gets nothing! This is very unfair to a Realtor®, especially when he or she has already spent time and effort with the prospective client or suggested the new property to the prospective client.
EXIT Gulder Real Estate will always give you a copy of every paper you sign!

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Customary Contract Terms for offer

by Leo Rebholz-GRI

EXIT Gulder Real Estate always uses a Contract for Sale and Purchase approved by the Florida Bar Association and the Florida Association of Realtors, which contain amongst many other details the following major points:

Deposit to be held in Escrow by an impartial third party (Title Company)

It is customary to put between $ 500 and $ 1000 down with the offer. If the seller does not accept your offer your deposit will be returned to you!

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Additional Escrow Deposit

10 days after Effective Date (when all parties have agreed in writing to all contract points) an additional Escrow Deposit to complete 10% down should be made. If special financing programs are used this may be different!

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Financing

  • Total down payment (depending on requirements of Mortgage Company)
  • Type of mortgages (fixed, adjustable, seller financing etc.)

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Closing Date

If no financing is involved and the title is clear, closing can be done within one week after Effective Date. It should however not be stretched longer than 2 to 3 months after the Effective Date. (Exceptions may be made depending on the seller’s situation and willingness) If financing is involved a minimum of 30 to 45 days should be allowed.

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Home Inspections and Survey

It is always recommendable to use the services of a qualified inspector for the general home inspection and a specialist for a termite inspection. Lately also mold inspections have become recommendable. Also a registered and licensed surveyor should carry out a survey. (excluding Condos) These fees are payable by the buyer. The seller usually agrees to remedy defects found during these inspections at his expense up to the customary percentages of the selling price spelled out in the Contract for Sale and Purchase.

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Title Insurance

It is customary in Lee County that the seller pays for the title insurance.
In Collier County the seller only contributes with usually $ 150 to the cost of Title Insurance.

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Place of Closing

It is customary that the party paying for the title insurance selects the place of closing. This can be done at a Title Company or in an Attorney’s Office.
Closing can be done by mail if desired, but preferably all parties should be present at the date established in the contract. Fax offers are legal in Florida.

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Dealing with builders or developers for the purchase of new properties

by Leo Rebholz-GRI

Who represents the buyer?

When you enter the sales office of a new development you will be greeted by a friendly salesperson who will tell you all the good things and advantages of their product. This is their job. This is what they get paid for. If the salesperson works on salary basis no Florida Real Estate License is required. Only if they are paid on a commission basis do they need a State License.
The just mentioned circumstances already explain which party to a sale they represent. Their obligation is primarily to the seller.

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The Contracts

Sales Contracts for new developments are not statewide standard forms like for re-sales contracts. Each development has their attorneys draw up contracts that are most favorable for them. Most new construction contracts allow the builder to delay completion up to two years. New construction under normal circumstances takes from 6 months to one year, but labor or material shortages, financial or environmental problems can cause unexpected delays.

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Financing

  • Total down payment (depending on requirements of Mortgage Company)
  • Type of mortgages (fixed, adjustable, seller financing etc.)

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Get your own free representation

This is why you should choose a local General Realtor® who is constantly dealing with properties in the entire area to represent and advise you. Especially if he or she has already lived in the area for some time, he or she will be able to tell you about the reputation and history of such a development in the area. Not all builders are good builders. No new development sales person will tell you the negatives or disadvantages.

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Situations to consider

If circumstances force you to sell early while there are still plenty of new properties available in your development you will have to sell considerably below the new price. If the development is not as successful as expected this situation could exist for quite a while. There may be an exception to this rule if your property is very unique in the development and no similar property is available any more. If the development takes too long you may be confronted with construction trucks traveling through your neighborhood longer than necessary.
Another item to consider is that new construction seldom has attractive trees and vegetation in place. The place may look a kind of “naked” till your trees and plants have grown.
A mature community with no new construction going on any longer is like buying a good used car, where the quality and value development are readily obtainable.
New developments usually have obligatory Associations with monthly or quarterly fees. At the beginning, when the builder or developer controls (subsidizes) these association fees, they are kept very low for promotion purposes. When the association is turned over to the new owners, usually fees have to be increased considerably to cover real costs.

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A free Guide for anyone who wants to convert Real Estate into cash!

by Leo Rebholz-GRI

If you are thinking about engaging a Realtor you should be aware of the following: 

Factors which will help selling your property:

  • Pricing it at a fair market value
  • Property is in a spotless appearance condition inside and out
  • Property is easy to show for co-operating Realtors
  • Sellers do not interfere with the buyers by leaving the property before it is shown by a Realtor
  • If the property is offered with furniture, items, which are not for sale, should be out of sight in order to avoid unnecessary confusions.
  • Fair Market Value and Market Situation:

A professional Real Estate Agent will present you with a CMA (Comparative Market Analysis). In this CMA he will list at least 3 other properties similar to yours which have been sold over the last 6 months to a year in your neighborhood. If there have not been any sales within this frame of reference, then larger parameters will have to be found. Your asking price can be slightly above these prices, because buyers will always want to negotiate. If your property has amenities and upgrades the other homes do not have, this should be taken into consideration. Age and demand for these items will be important. Location within a community is very important. Good locations appreciate buildings depreciate.

Comparing other properties for sale and properties that have been on the market but did not sell will give an indication of the present market situation in your neighborhood. The number of days properties need to sell in your neighborhood is a further market indicator. If there are still new homes for sale in your community they can be your biggest competitor.

A look into the public record for your subdivision will show a trend in which direction prices have moved over the last years. A desirable neighborhood will show steady climbing prices.

A professional Real Estate Agent representing a buyer will also look at these facts for the buyer. The market will soon ignore overpriced properties.

Real Estate Agents are paid a certain percentage (approximately 1.5% to 1.75%) of the price the property is sold for. If a real estate agent recommends a lower price than what you have in mind, he does it not in order to earn less money, but to have a fair chance to market your property without wasting your or his time.

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Appearance of Property

Appealing properties sell first. Buyers always look for excuses to reduce the price. Don’t give them any. Soap and paint are the best and the smallest investment in your selling efforts.

Make sure that the lawn is always trimmed neatly and that your landscaping looks attractive. Even when you don’t sell your home with furniture, leave it there for the showings. Empty houses don’t look as good. Don’t clutter any room with too many things.

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Easy Showing Access to your property

There are approximately 10,000 properties for sale at all times in Southwest Florida. Realtors, through the MLS system (Multi Listing System), make the majority of sales. Many times this is not the listing Realtor. Looking for a property usually starts with a search by the buyer’s Realtor with the following basic criteria: Price range, number of bedrooms, number of bathrooms and waterfront or non-waterfront.

With each search a certain number of properties will appear on the computer screen. The properties which will be shown first, are the ones that are easy to show for the co-operating Realtor.

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What makes a property easy to show?

  • Key in an Electronic Lock Box
  • None or only short appointment periods
  • Normal climate in the property
  • No distraction during the showing

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Factors hindering sales

Realtors rarely have the time to drive to the listing agency to pick up a key and return it afterwards. This is time lost for them. Properties with Electronic Lock Boxes will get the first shot. If the waiting period for a showing appointment is too long, other properties will get preferred showings. Domestic animals roaming free in the house can be very sales hindering. Loose personal clothing and expensive personal items should not be in the view of the prospective homebuyer. Renters may not be too happy about having to leave the property after a sale. They very often work against a sale.

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Lock Box Security

Realtors have the obligation to call the listing agency before showing a property on an Electronic Lock Box. Owner or tenant occupancy is always listed in the MLS showing instruction. Previous appointments for these properties are standard. The Electronic Lock Box has an access code, which is changed monthly. The system records who entered the property at what time. Licensed Realtors loose their license and livelihood if they fail to respect a property on lock box. Professional Realtors don’t show properties after sunset.

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What are the absolute no-nos for showings?

  1. The listing agent has to accompany the buyer’s agent for the showings.
  2. The listing agency is given no key for the property.
  3. Seller does not want a yard sign to be placed on his property. (except gated communities which don’t allow signs)
  4. The seller or renters requests more than 24 hrs notice before showing

If you think that you have to insist on any of the 4 no-nos, only desperate real estate agents will want your listing.

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Which documents will you need to have ready for a listing or a sale?

  • A copy of the Deed

  • A copy of the Title Insurance

  • Any Power of Attorney applicable to the sale

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Which documents are helpful?

  • A Layout plan

  • A Survey

  • An Elevation Certificate

  • A Home Insurance Policy

  • An Appraisal

Copies of warranties that still are still valid 

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What can EXIT Gulder Real Estate, Inc. do for you?

  • EXIT Gulder Real Estate, Inc. is located on the most strategic location in Bonita Springs, on Bonita Beach Rd., the only connection from Bonita Springs to the Beaches of the Gulf of Mexico. All visitors and residents, who want to go to the beach, have to pass EXIT Gulder. EXIT Gulder is recognized by the many international flags always displayed in front of the company. Because of this strategic location, EXIT Gulder gets a lot of walk-in traffic. There is convenient parking space in front of the company and many people who just stopped in out of curiosity and convenience ended up buying, without having had any such prior intentions. When you are in Bonita you drive to the beach, for what other reason would you have come here in the first place?

  • Gulder has been around in Bonita Springs for the last 25 years as a family operated business with a very personal service. By joining the international EXIT franchise at the beginning of 2001, the international exposure was very much enlarged.

  • EXIT Gulder is open all week and has a voice mail system after hours.
  • EXIT Gulder has agents from all over the world with eleven foreign languages being spoken. Foreign buyers are many times cash buyers!
  • EXIT Gulder has toll free phone lines from many foreign countries.
  • EXIT Gulder is equipped with the latest technology and is present on the World Wide Web (EXIT01.com)
  • EXIT Gulder produces high grade color brochures of your property and distributes them
  • EXIT Gulder puts many of their listings on TV (channel 9) and in local newspapers
  • Due to its unique location on the border between Lee and Collier County, EXIT Gulder is a member of both MLS systems. All our listings are placed in both MLS systems and will therefore get double exposure.
  • Properties in the upper price range may get special exposure through virtual reality shows and aerial view photos
  • EXIT Gulder has a reputation of dealing fair and square with both, sellers and buyers. Our business is built on referrals and repeat business.

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What can I do for you?

During my business careers I have been exposed to many different cultures in many different countries. I have lived in Germany, England, Austria, East Africa, Mexico, Puerto Rico, the Bahamas and Colorado before moving to Florida in 1996. Besides English with a European accent I speak German, Spanish and understand some Italian. I have earned a living as a worker, a Department Manager, a Corporate Executive and as partner and owner of various businesses. Most of my earlier careers centered on cars and travel.

I have chosen Bonita Springs not as matter of necessity, but because I think it is one of the nicest places on this globe to live. This conviction makes me a good salesman of our area and everything that goes with it. We still have friends and acquaintances in many parts of the world who love visiting us and quite often end up buying properties here.

I treat my clients with respect and earn their trust not through promises, but through deeds. Real Estate in SW Florida is very competitive and demanding and I am willing to compete. I am honest and hard working and will protect your interest through my careful attention to detail. I am a good negotiator and can bring people together. I don’t guess, I know or I will find out.

I have been in Real Estate since 1997. I am Realtor® and member of The National Association of Realtors, the Florida Association of Realtors and the Bonita Springs Board of Realtors. I have been awarded with the Service Excellence Award for 1998 and I have sold real estate exceeding 1 Million $ in 1999 and 2000. I graduated in 2000 from the Graduate Realtor Institute, which allows me the carry the professional designation “GRI”. I work with the latest technologies for Real Estate. I gladly provide buyers’ and sellers’ references upon request.

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Leo Rebholz - Realtor® -GRI

EXIT Gulder Real Estate, Inc.