Why do homes with the same number of bedrooms but more square footage sell for less per square foot than smaller homes?

Great question — this is a classic real estate puzzle, here’s a clear explanation.

When you look at price per square foot, smaller homes (even with the same number of bedrooms) almost always have a higher price per square foot than larger homes. Why? Here’s what’s going on:

1. Base Costs and Features: Every home, no matter the size, needs a kitchen, bathrooms, HVAC, and other expensive features. These “fixed costs” are spread over fewer square feet in a small house, so the price per square foot is higher. In a larger house, those expensive features are “diluted” over more space, often with extra square footage going to things like larger living rooms or bonus rooms that aren’t as expensive per foot to build or as highly valued by buyers.

2. Market Demand: Many buyers are more interested in total price than price per square foot. Smaller homes appeal to buyers with lower budgets, so they’re often priced at a premium per foot simply because there’s more competition for homes below a certain price threshold.

3. Diminishing Returns on Size: Once a home reaches a certain size — say, three bedrooms and plenty of living space — adding more square footage doesn’t increase the value as much. People only need so much space, so the extra square footage in a larger 3-bedroom home is often less valuable on a per-foot basis.

4. Lot Size and Neighborhood Factors: Communities where the lot sizes and amenities are often similar, so the main variable is the house itself. If both a 1,800 sq ft and a 2,400 sq ft home have 3 bedrooms and similar upgrades, most buyers won’t pay proportionally more for the extra space — so the bigger house sells for a lower price per foot.

In summary:
Larger homes sell for less per square foot because the most expensive parts of the house (kitchen, bathrooms, etc.) are already included in smaller homes, and extra space isn’t valued as highly by buyers. Plus, more buyers are competing for smaller, more affordable homes, driving up their price per square foot.

Understanding the EBBA: What Every Home Buyer Should Know

 

If you're starting your home search, there's a good chance you'll hear your agent mention the EBBA — the Exclusive Buyer Brokerage Agreement. Another form, I know. But this one is actually worth understanding, because it works in your favor just as much as your agent's.

Here's the short version: the EBBA is a written agreement between you and your agent's brokerage that spells out exactly what they'll do for you, how they get paid, and how long you'll work together. No surprises, no fine print traps — just clarity from day one.

Why Does This Form Exist?

Following the National Association of Realtors settlement that took effect in August 2024, agents are now legally required to have a signed written buyer agreement in place before taking you on any physical property tour. The goal was simple: make sure buyers know exactly what they're agreeing to before the process begins.

What the Agreement Actually Covers

Exclusivity — During the term of the agreement, you're working with one agent and their brokerage to purchase a home. If your agent finds a property for you, you can't loop in a different agent to write the offer on it.

The Timeline Is Flexible — This is one most people don't realize. Per Florida Realtors guidelines, the duration can range from a single property showing all the way to a full year. Not ready to commit long-term? You can start with a short window — even a single day — just to see how you work together.

Compensation Is Spelled Out Clearly — By law, the form must list a specific dollar amount or percentage for the agent's commission. Nothing vague, nothing open-ended. The NAR settlement terms specifically require that buyer broker fees be "objectively ascertainable." You'll know the number before you sign.

Who Actually Pays — This is the part most buyers worry about. It is still standard practice to ask the seller to cover the buyer's agent fee out of their sale proceeds — and in most cases, that's exactly what happens. If the seller declines, you would be responsible for covering the difference at closing. Your agent is required to let you know about this before touring any property.

The Sections Worth Reading Carefully

The Protection Period — Once the agreement ends, there's typically a 30-day window (the Florida Realtors standard form defaults to 30 days if left blank) during which, if you purchase a home your agent originally introduced to you, their commission still applies. This protects the work they've already done on your behalf.

Single Agent vs. Transaction Broker — The agreement defines the type of relationship you have with your agent. A Single Agent owes you full loyalty — their job is to look out for you and only you. A Transaction Broker acts as a neutral facilitator for both the buyer and seller. Make sure you understand which one applies before signing.

How to Cancel — Depending on the agreement, cancellation may be as simple as a text or email, or it may require mutual written consent. Read this section carefully so you always know your options.

Not Ready to Commit? That's Okay Too

If you want to explore before signing a full EBBA, ask your agent about a Showing Agreement. It's a non-exclusive form that satisfies the legal requirement so you can tour a specific home without locking into a longer commitment — a great way to get a feel for working with an agent before anything more formal.

Should I ask an Realtor to show me a home if I've signed an EBBA with someone else? Read more here and VIEW the EBBA form...

The Housing Market Is Looking Positive For Home Buyers

Buyers, the ball is back in your court—and you’re starting to see it in the numbers. Gone are the days when every listing sparked a bidding war that left you dizzy. As sales slow down this winter, sellers are getting serious about making deals—and that means more price drops, sweet upgrades, and incentives you don’t want to miss.

If you’re shopping for a new build, the discounts are everywhere. Builders are offering bigger price cuts and extras, more than we’ve seen in years. According to the National Association of Home Builders, more than a third of builders trimmed their prices this February, averaging a 6% reduction. That’s not all: nearly two-thirds are tossing in bonuses like help with closing costs, lower interest rates, or design upgrades to help buyers stretch their budget further.

Some builders are stacking the perks. Highland Homes, for example, is slashing up to half off on design upgrades—think $100,000 in value—and tossing in $10,000 for closing costs on select homes through March. Over at David Weekley Homes, you might snag a mortgage rate as low as 4.99% if you go with their preferred lender. If you’ve been waiting for a sign to jump in, this is it.

And it’s not just the new-home market feeling the pressure. Sellers of existing homes are having to step it up, too. By late 2025, nearly 1 in 5 resale listings had been discounted, and some homes had seen three or more price cuts before finding a buyer. In places like Austin, Texas, that number is even more dramatic—22% of listings had multiple reductions, which is double the national rate.

The message for sellers? Price it right from the get-go. Your home is worth what someone will pay for it—not what you wish it was worth. Overpricing means your home could get ignored altogether, and you’ll end up chasing the market down instead of getting ahead of it. If you’ve already bought your next place or need to move fast, realistic pricing is your best friend. Overpricing and price reductions later, making the home equivalent to the actual value - buyers to wonder... "What is wrong with this home? Why hasn't it sold?" But sellers, don’t panic. Even with all the markdowns, most homeowners are sitting on a mountain of equity. Since early 2020, the typical homeowner has gained about $130,000 in home value. Yes, competition is steeper now, especially in cities with plenty of homes for sale, but most sellers are still ahead.

For buyers, this is good news—affordability is finally improving. Wages are rising faster than home prices, and mortgage rates have dropped to their lowest level in three years. According to Lawrence Yun, chief economist at the National Association of REALTORS®, homes are now the most affordable they’ve been since early 2022.

And for anyone worried about a housing crash, the data just doesn’t support it. Distressed sales like foreclosures are at historic lows, making up just 2% of all sales in January. The market is adjusting, not collapsing.

So whether you’re buying or selling, there’s opportunity out there—you just need to know where to look, price smart, and be ready to move when the timing feels right. The market’s shifting, and both sides have a chance to win.

All year, we’ve been told the housing market is “cooling.” That’s not quite right..

Markets cool down when things slow, prices shift, and everyone adjusts. What we’re seeing isn’t a slow fade—it’s a full stop. This kind of standstill is riskier than a hot market ever was. 

Right now, few homes are changing hands. Buyers are priced out. Homeowners with low rates won’t sell and take on much higher payments. Inventory’s ticking up, but hardly anything is moving... Pressure is mounting under the surface.

 

Here’s the thing: normal markets need action—people buying and selling, prices finding their level. Frozen markets just jam up. No one knows what anything’s actually worth, sellers hang onto yesterday’s price, and buyers disappear. The system gets fragile fast.

 

Homeowners can’t sell without a payment shock. Buyers can’t stretch to today’s numbers at these rates. Builders are stuck with more homes and less demand. This isn’t “normal,” whatever you’re hearing. It’s tense.

 

Yes, inventory is creeping higher. And yes, everyone says “low inventory keeps prices up.” That only works when people want to buy. Now, listings are up but few are selling, price cuts are common, and new homes just sit.

 

The problem isn’t a sudden flood of sellers. The real trouble is rising inventory and barely any buyers for the long haul.

 

Affordability is worse than ever—monthly payments on even modest homes are up, wage growth isn’t keeping pace, and most people aren’t willing to strain themselves forever. Volume matters more than price; if deals don’t happen, the market can’t fix itself.

 

Jobs are the last prop holding this up. So far, unemployment is low, but hiring’s slowing and confidence is dropping. As soon as the job market cracks, the freeze breaks—some folks will have to sell, and prices will fall not because they want to, but because they’re forced to.

 

2026 isn’t about “when does it rebound?” It’s about what happens when this frozen market gets jolted—by layoffs, credit troubles, or simple fatigue.

 

The Fed will almost certainly act. We’re already seeing signs: Fannie Mae and Freddie Mac are buying mortgage bonds, and there’s a push for lower rates this year to get things moving. That could mean more deals, even as prices fall—a necessary reset.

 

Falling prices and more activity actually help the market—and anyone in real estate—recover. If you’re in the game to buy or sell, don’t just read the headlines. Understand why this freeze is happening and what could break it open this year. Stay tuned for more posts on the market. Email, call or text with questions - Cathystarkweather@gmail.com; +01.407.274.8476.

#FrozenMarket #HousingFreeze #RealEstateReality #MarketStandstill #HousingCrisis2026 #NoMoreCooldown #HousingUpdate #RealEstateTrends #MarketShift #InventoryGlut

Understanding Short Sales: A Guide for Home Buyers

 

Let's talk about short sales. If you're house hunting, you've probably seen this term pop up and wondered if it might be your ticket to a great deal. But before you dive in, you should know what you're getting into.

First, what exactly is a short sale? It's when a homeowner sells their house for less than they owe on their mortgage, with the bank's permission. For example, if someone owes $300,000 on their mortgage but can only sell their house for $250,000, that's a short sale.

The Good Stuff

The biggest draw is pretty obvious: the price. You can often get a property below market value because the bank is trying to avoid a costly foreclosure. These discounts can be significant – sometimes 10% to 20% below market value.

Another important consideration: While we mentioned these homes can be in better shape than foreclosures, that's not always the case. Many short sale properties have deferred maintenance issues because the owners who fell behind on mortgage payments often couldn't afford proper upkeep either. You might find issues like outdated HVAC systems, worn-out appliances, or neglected yard maintenance. This makes that thorough inspection even more crucial – you need to know exactly what you're getting into and budget accordingly.

Another plus? You're dealing with a real person (the current homeowner), not a bank's REO department. This can make the inspection process smoother and give you better access to information about the property's history.

The Not-So-Good Stuff

Now for the reality check – and it's a big one. That amazing deal you're hoping for? It might not be so amazing after all, and you could waste months of your life finding that out.

Short sales can be painfully slow. The term "short" refers to the bank taking a loss, not the timeline. You might wait 3-6 months (or even longer) for an answer on your offer because the bank, the seller, and sometimes multiple lien-holders all need to approve the deal. During this time, you're stuck in limbo – can't make firm plans to move, might miss out on other properties, and you're spending money on inspections with no guarantee of success.

Speaking of wasted money – you'll need to pay for inspections upfront, often before knowing if the bank will even accept your offer. If the deal falls through (and many do), that's money you won't get back. You could easily spend $500-1,000 on inspections and walk away empty-handed.

The paperwork is intense. You'll need patience and a strong stomach for bureaucracy. Banks often have their own lengthy forms and processes, and they're not known for moving quickly. Each round of negotiations can add weeks or months to the process.

Here's something that surprises many buyers: You might not get as good a deal as you expect. Banks aren't stupid – they do their homework on property values. If your offer is too low, they'll reject it, no matter how much the seller wants to accept. You could wait months only to find out the bank won't budge on price, putting you right back at square one.

You'll also need to buy the home "as-is" in most cases. While you can (and should) get an inspection, the bank probably won't pay for repairs. That perfect-looking house might need a new roof, and that cost is on you.

Another important consideration: While these homes can sometimes be in better shape than foreclosures, that's not always the case. Many short sale properties have deferred maintenance issues because the owners who fell behind on mortgage payments often couldn't afford proper upkeep either. You might find issues like outdated HVAC systems, worn-out appliances, or neglected yard maintenance. This makes that thorough inspection even more crucial – you need to know exactly what you're getting into and budget accordingly.

If you're still interested in pursuing a short sale, here's how to improve your chances of success:

Get pre-approved for a mortgage. Cash offers are even better. Banks love certainty, and a strong financial position makes you more attractive.

Work with professionals who know short sales. Find a real estate agent and a lawyer who have done this before. Their experience can be invaluable in navigating the process.

Do your homework. Get a thorough inspection and research the property's value. Know your maximum price and stick to it. Factor in repair costs when making your offer.

The Bottom Line

Short sales can be a good way to get a deal on a house, but they're not for everyone. If you need to move quickly or don't have the patience for a lengthy, uncertain process, you might want to stick with traditional sales. But if you've got time, patience, and a good team behind you, a short sale could be your path to homeownership at a discount.

Just remember: "short" sale is one of real estate's great ironies. There's nothing short about it except the bank's end of the deal.

A LOT OF CONDO AND TOWNHOME COMMUNITIES IN FLORIDA HAVE ISSUES WITH FINANCING, WHY?

A LOT OF CONDO AND TOWNHOME COMMUNITIES HAVE ISSUES WITH FINANCING, WHY?  

Some communities are classified as 'non-warrantable' which means it doesn't meet the standard guidelines set by the Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac). These entities buy, package and resell mortgages, often repackaged as mortgage-backed securities. In this case, these two enterprises do not back the community.

Consequently, a buyer's lender must independently approve the condo building. Banks will have their own standards and criteria to establish if they're comfortable lending in non-warrantable communities. Typically, they scrutinize things like fiscal health of an HOA accounts/dues being up-to-date along with occupancy among other factors before approval.

WHAT MAKES SOME CONDOS NON-WARRANTABLE?

A condo can be considered non-warrantable for several reasons, typically based on the criteria set by Fannie Mae and Freddie Mac. Here are some common factors that could make a condo non-warrantable:

• High Investor Concentration: If a large percentage of units in the building are owned by investors rather than owner-occupants.
• Commercial Space: If a significant portion of the project's square footage is designated for commercial use.
• Low Occupancy Rate: If fewer than a certain percentage (commonly less than 50%) of units are sold or under contract to owner-occupant buyers.
• Lawsuits Against HOA: If there are pending legal actions involving the condominium association or homeowners association (HOA).
• Dues Delinquency Rate: If more than a certain percentage (commonly over 15%) of units are behind on their HOA dues.
• Amenity Ownership and Usage Restrictions:If amenities such as pools, gyms, or parking space ownership rights do not conform to specific guidelines.

If you're interested in purchasing or selling within a non-warrantable condo community, its advisable to work closely with your real estate agent and lender. They can help navigate financing options since traditional lenders might have stricter requirements or offer fewer loan products for such properties.