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 discussed…

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, 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.

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 strategy/ negotiating with the Seller. 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 has a fiduciary relationship with the Buyer, 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 we are all Transaction Agents unless we disclose otherwise. At Tampa Home Group, we provide this higher level of service to our clients, we choose to act as Single Agents, and we take the time to explain our relationship to you. As Buyer’s Agents, our commission is paid by the Sellers, so you pay us no commission.


Maria Hoffman
John & Maria Hoffman, Realtors
Keller Williams Realty
20701 Bruce B. Downs Blvd. Suite 200
Tampa, FL 33647
Direct line: 813-991-1406
Fax 1-866-897-0571