FREQUENTLY ASKED QUESTIONs (FAQs)
Look for my column “ASK BETSY” in the Sunday edition of The Gainesville Sun (page 2).
October 23, 2011
Q. I’m noticing a focus on energy-efficient and zero-energy homes. Do you think buyers are really willing to pay for such features?
A. There is little conclusive data on if a buyer will pay for such features and there are few comparable sales on zero-energy homes. I have not seen local appraisers assigning a value to such features yet, however, they do give value for improvements in general. So, for example, if you replace your windows, an appraiser would value the improvement, similar to say putting granite in your kitchen, but not assign a value to the energy-efficiency component of it. Empirically, I am seeing more buyers requesting to see a home’s utility bills and occasionally have had buyers pass on a house if they deem the bills too high. (By the way, GRU’s records are public so you can call them with any address and they will give you the last 12 months of data for a home.) Currently, energy-efficiency appears to be a “deal breaker” rather than a “deal maker” for buyers. I recommend sellers have GRU/Clay Electric do an energy audit to detect ways to reduce energy usage. Both companies and government offer various rebate programs which are outlined on their respective websites.
October 16, 2011
Q. I’m interested in buying a home that my Realtor has listed. Should I find another agent to write up the offer because she represents the seller?
A. Do not assume that the listing agent represents the seller. Ask the agent what type of relationship the listing broker has with the seller. Unless otherwise stated, in Florida, the assumption is that brokers operate as transaction brokers. This type of agency allows agents within the same brokerage to sell homes listed by that brokerage. Think of this agent as a mediator. Transaction brokers basically represent the transaction, not an individual buyer or seller. Rest assured, they cannot tell the other party how low/high they will offer/accept, they cannot discuss motivations to buy/sell and they must disclose all know facts that may materially affect the value of the home. In addition, they must deal honestly and fairly with all parties. The benefit to the seller is that any agent can sell their home, not just agents outside the brokerage that represents them, thus increasing the chances that their home sells.
May 22, 2011
Q. I’m trying to sell my home and am wondering if I need to do a price reduction. At what point do you typically do one?
A. It depends on how quickly you want to sell your home, how much traffic you have had, what the comparable and new sales are priced at and what the feedback has been. If you have had numerous showings and the feedback has been fairly consistent (for example, the house is dated), either address the issue or do a price reduction that takes into account the issue and the inconvenience of the buyer having to deal with the issue after closing. If your price is in line with comparable’s, do a price reduction to stay ahead of the market. If you have had zero showings and your house has been marketed, do a big price reduction. This is usually an indication that your home is significantly overpriced and buyers don’t want to waste time looking at a home they don’t think they will be able to get at a reasonable price.
