The most obvious, common, and costly
detail is the request for the seller to pay some of the buyer's closing costs.
Depending upon the loan program, this could equal as much as 9% of the
purchase price.On a home valued at $300,000, paying buyer's closing costs would mean a $27,000 reduction in proceeds for the seller - and a $27,000 savings for the buyer.
Then there are the inspections and the repair allowances. Buyers usually pay for the inspections, but they can ask the seller to pay these costs. If you request the seller pay for the inspection, the seller may agree but with terms that they (or their agent) choose the inspector.
Sellers usually request offers be
made on the Florida Association of Realtors AS-IS contract. The seller is not responsible for any repairs
in the inspection and therefore usually agreeing to their lowest price. As a
buyer, expect some repairs. If the
repairs are over 1.5% of the contract, the seller may agree to a reduction in
price or credit at closing for a portion of the repairs.
But those aren't the only factors
that can affect the buyers' or the sellers' finances.
Timing can also play a role. If the
buyer is leaving another home or the seller is buying a new home, the
closing/possession date can save or cost them dollars. Think of the cost of
putting your household furnishings into storage and renting temporary shelter
in the interim between closing on one home and moving into another.
Next, look at what's included in the
purchase price. Kitchen and/or laundry appliances may already be included per
the listing. If not, the buyers can ask for them. Inclusion saves the buyers
money, while it may cost the sellers to replace them in their new home. So even
though these items are not given monetary value on the purchase offer, they do
have value that both parties need to consider.
The same is true for items like a
riding lawn mower. The seller may not need one in their next home, but leaving
it behind does add value for the buyer.
Whether you're buying or selling a
home here in Central Florida, before you focus on the stated purchase price,
look at the true price. You'll see it after you make the additions and
subtractions.
If you have questions about these
costs and how they affect your bottom line, call me at 407.274.8476 or drop me
a note at cathy@jerrybarker.com. I'll be happy to speak with you.
And when you're ready to buy or sell
a Central Florida home, it would be my pleasure to guide you through a smooth
transaction. I cover Orange, Osceola,
Polk, Lake and Seminole counties.
A very small section of Orange county is zoned for STR (around Disney and I-Drive/Sea World) and they are typically condo-hotel in nature. There are larger areas zoned for STR in Osceola and Polk county. Be sure to work with an agent who specializes in the STR market. Not all communities which are in the STR zone allow short term rentals. HOA's can have themselves removed from allowing STR's. Long term rentals are 7-12 month leases (and many HOA's require a 12-month lease). Short term does not have a limit on the minimum number of days a guest is allowed. However, most short term rentals prefer a minimum of 3-night stay. If you'd like to know what's available in the STR zone and fits your criteria (size/price/amenities), feel free to reach out to me for assistance.
Listing a home with a Realtor is a better alternative than For Sale By Owner, there are many avenues which Realtors can access to market your home for you which you cannot. Not to mention, a Realtor will ensure a buyers capability to purchase your home when reviewing a contract... ensuring they are pre-approved or show proof of cash funds.