TAMPA REAL ESTATE MARKET BULLETIN
2010 is upon us and it promises to be another INTENSE year for Real Estate in the Tampa Bay area. There are a few preconceptions that today’s Buyers have, that need to be addressed.…
BELIEF #1: Finding a home to buy is going to be a fun, easy process of selecting from a large inventory of homes.
REALITY: The inventory of non-short sale homes is VERY low. In some price ranges, especially entry-level homes, the ones that come on the market priced right go under contract in 3 to 5 days. Buyers need to be able to react very quickly to new listings entering the market. As of year end, inventory was around the 13,000 home level—while this sounds like a lot, we’ve had several years of enormous inventory levels….we’ve had many months with over 20,000 active listings. Last time the inventory was this low was in March 2006. If you are "going it alone" trying to buy a home without an agent to help you, don't be surprised if it is a tough, frustrating process.
NOTE TO SELLERS: If you, or anyone you care about, is on the fence about when to enter the market, please do not wait! Contact us right away to discuss your options.
BELIEF #2: Buyers think that they have two years to find a home because pricing will continue to drop for the next year or two.
REALITY: While prices will drop from 5-7% in 2010, interest rates will rise to at least 6% by the end of the year, and should be pushing 8% by the end of 2012. Waiting will cost thousands of dollars in the mid to long term.
BELIEF #3: All Realtors acting as Buyer’s Agents act in the same capacity.
REALITY: Nothing can be further from the truth. Most Realtors today act as Transaction Agents, meaning that they are agents of the transaction, having no fiduciary relationship to the Buyer. Transaction agents do not operate in a capacity to talk value, pricing, or buying/negotiating strategy. On the other hand, a Realtor acting as a Single Agent has a fiduciary relationship with the buyer, has all the duties of a Transaction Agent with some important additions: Loyalty, Confidentiality, Obedience, and Full Disclosure.
A Single Agent for a Buyer has a fiduciary relationship with the client, and has the right to talk about the value of home before an offer is written, having input on the buyer strategy, and can let the Buyer know if they are overpaying. Did you know this? Did you even know what your agency relationship is with your listing or buying agent? Florida Law presumes that all agents are Transaction Agents unless we disclose otherwise. At Tampa Home Group, we provide the highest level of service possible to our clients...we choose to act as Single Agents when we represent our Buyers and Sellers, and we take the time to explain our relationship to you.
We're here to help you and anyone you care about take advantage of the market. Please feel free to pass this on to anyone who needs our help. In the meantime, we'll continue to keep you updated on our market throughout the year.
