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Multiple Offers

A multiple offer situation arises when a seller receives competing offers from two or more prospective buyers to purchase the listed property. The market conditions for multiple offers generally occur when there is a high demand for properties and a low inventory of listings or when the property is being sold by auction or a similar process sometimes referred to as an “Immediate Sale”. The primary objectives at all times are to represent your customer’s/client’s interest in the transaction and comply with the requirements of the Code of Ethics, the MLS rules, and the Company’s best practices. Multiple offers can be confusing for the seller, the prospective buyers, and even Realtors® if they do not understand the process and what obligations and options come into play for each person in the transaction.

Timely and honest communications reduce the stress for everyone while ensuring each offer is presented in an objective manner.

While a Realtor’s® primary duty is to protect and promote the interests of the client/customer, Realtors® are not relieved of their obligation to treat all parties honestly. Honest is not the same as fair. Sellers alone make the ultimate decision about what is in the seller’s best interest and how the seller wants to process the multiple offers received. Prospective buyers need to know: sellers do not have to treat the competing buyers fairly when negotiating with them nor must the offers be negotiated in the order they are received.

Seller Options: The seller has several options in responding to the multiple offers submitted. The seller decides on how to proceed and the listing agent’s duty is to provide counsel and explain the process to help the seller make an informed decision in the seller’s best interest. Seller’s options: 1) Accept one offer and reject the others; 2) Reject all the offers; 3) Work with just one of the prospective offers and counter that offer and reject the others; 4) Allow all of the prospective buyers the opportunity to improve their offers and present their “highest and best” offer by a set deadline. Upon receipt of the offers, the seller would then make a decision.

For more details and information, talk to your licensed real estate professional.

Longboat Key Condo

Located in Sarasota and Manatee Counties of Florida is the coastal town of Longboat Key. Famous for its white sandy beaches, tons of palm trees, refreshing sea breeze, and fantastic weather conditions all year round, Longboat Key is considered a highly desirable place to live in Florida. Longboat key is both a town and a barrier island, south of Anna Maria Island between the Gulf of Mexico and Sarasota Bay.

The main attraction of Longboat Key is Gulf of Mexico Drive, a long and winding road that is bordered by dozens of shops and restaurants on both sides. This road is surrounded by beautiful landscape that includes huge expanses of water and hidden driveways. You will find a series of clubs starting from the southern tip of this barrier island in between many gated communities that reflect the elegant and relaxed condominium lifestyle of the residents living here. There are many Longboat Key condos for sale in these communities that are perfect for a dream life in this tropical paradise.

Median home value in Longboat Key is upwards of $700,000. but the cost of living is still affordable as median household income in this beach town is more than $100,000. It has a population of only 7000 and most of the homeowners live here only for a certain time period in a year. They enjoy a decent median monthly rent of close to $2500 from their investment.

Longboat Key is regarded as a luxury Gulf Coast golf resort community because of some world-class gold courses and 12 miles of stunning beaches. Waterfront properties offer residents a chance to enjoy golf and world-class shopping and dining facilities. The cool and relaxed lifestyle of Longboat Key attracts large numbers of retirees who come here to enjoy the scenic beauty and the warm and sunny weather conditions. However, it is a good place to live for families with kids too. You will find some very high-quality public schools in Longboat Key serving the educational requirements of the parents.

As far as Longboat Key real estate is concerned, it offers multiple options to you depending upon your budget and liking. These include wonderful estates, townhomes, and Longboat key condos for sale. No matter what your choice, you will enjoy living along the majestic Gulf Coast in this tourist beach town.

Take a look at the example below and imagine yourself here!

 

 

 

 

 

The Bay

The Bay has raised $8m in funding for the first phase of the new public park that is slated for Sarasota’s bayfront area.  The area encompasses 53 acres of prime waterfront grounds.  The first phase will create a 10-acre park starting at Hwy 41 and continuing along Boulevard of the Arts to the bayfront.  The Paterson Foundation has already donated $3m to the worthy cause and another $5m has been collected in private donations.

A sunset boardwalk on the bay is part of phase 1, along with the restoration of mangroves, and a public event area.  Groundbreaking is slated for the end of 2020, and a 20 year build-out is expected.

For up to date information, check out “The Bay Sarasota

Sarasota Parking Meter

Pay to park is now in Sarasota, so I thought I’d try it out because I needed a few pictures of the new Streetscape on Lemon Ave (and wow, is it going to be nice).  The metered spaces are designed to give you 10 minutes for free (not the pole meters), however I needed a little more time and bought 15 minutes for 25c.  There is also a phone app that you can use, ParkMobile, and you can extend time from your phone if you are not back to your car in time.  Check out the locations and rules here and don’t be fooled into paying during free time.  Parking rules are enforced Monday – Saturday from 10:00 am to 8:00 pm, free on city holidays and Sundays.

 

ABC7 Mark Boehmig

The effect of interest rates on Real Estate

Interest rates are still relatively low compared to the last 40 years.  In 1980 we purchased our first home and paid 15% interest on our mortgage, and as I look back at that purchase I’m still amazed. Our only concern at that time were the monthly payments;  that purchase was the perfect starter home for us.

My how times have changed…  Fast Forward 39 years to 2019 and interest rates are between  4.5 and 5% depending on several qualifying factors such as credit score, debt to income ratio, purchase price, and type of property (Condo, Single Family etc.).

Now that interest rates appear to have reached their low point in this cycle, the topic of rising interest rates is in the news again.

I was invited to a round table discussion at the local ABC News station, ABC7.  The expert panel consisted of  Richard Stern, Financial AdviserJerry Zivic, Consumer ReporterLeslie Swart, Mortgage Lender and myself, Mark Boehmig, a local Realtor with Michael Saunders & Company.

The topic of discussion, as you can guess, was about rising interest rates and the effect on the local real estate market.  So what are the actual effects of the rise in the interest rates?

This is the way I see it:

  • housing prices have been steadily rising for the past 8 years
  • mortgages have been tougher to qualify for
  • the government rules in place for mortgages have made the market more secure
  • interest rates have been very low for the past 8 years

With low rates and increasing housing prices, the federal government is slowly increasing the 10 year treasury bond yield, which increases the rate on money loaned to banks.  This will slow down the rise in home pricing, which keeps inflation in check.

What part of the sales cycle are we in?

Another thing to keep in mind, a 1% increase in interest rates equals a 10% decline in borrowing power.  To put this in monetary terms, if a buyer could previously qualify for a mortgage on a home with a value of $200,000. their borrowing power has now been reduced to $178000.

Real estate will adjust to these new parameters, therefore slowing the rise in housing prices.  As more inventory comes on the market the supply will increase, shifting the market from a sellers market, to equilibrium, then perhaps a buyers market.

As far as the Manatee and Sarasota counties of Florida are concerned, our market is a little different.  45-50% of our sales are cash.  How can this be?  Many people retire here.  They have sold their homes in other places and come here with cash!  Others come here buying second or third homes, and a majority of those sales are cash as well.

Keep these factors in mind if you are in the market to buy or sell property in the near future.  Having the knowledge of market conditions is important when the time comes.

The full panel discussion can be viewed here.