00:00 Speaker A
It’s housing week on wealth, and we have the home buyers playbook with everything that you need to know about every step of the home buying process from the planning stages to the closing process, to the first year of homeownership. And today, we’re diving deep into the process of making an offer on a home. Joining me now, we’ve got Melanie Atkinson, realtor with Compass. Great to have you here with us. So what do prospective home buyers need to know about working with a realtor? Walk us through their role throughout the home buying process.
00:42 Melanie Atkinson
Yeah, well, we know that 88% of home buyers use a realtor because the process can be confusing for people. So what they need to know is that their realtor is going to work with them to be their home buying project manager. They’re going to help them get access to houses. They’re going to help them do research on the homes, even off market listings. They’re going to help put the team together that will help them through the home buying process, like lenders, insurance agents, inspectors. They’re also going to help you understand your contract and negotiate it, and they’re going to navigate the inspection and repairs process, everything that needs to be done to get you to the closing table.
01:40 Speaker A
So explain how a buyer broker agreement works.
01:46 Melanie Atkinson
Yeah, so that’s been a big change in our industry in the last year. So buyers are now required to sign a buyer broker agreement with their broker agent that specifies the duties of the buyer broker. It also specifies compensation. And a lot of buyers can get nervous about signing a contract that says they have to compensate their buyers agent a certain amount, but a good agent will be able to use that as part of the negotiation of the house itself. It is not unusual for sellers to still contribute to the buyer’s agent compensation, and in Florida where I work, we still have a lot of sellers that are outwardly offering a buyer’s agent compensation. So we don’t want buyers to be afraid of it, but we want you to get an agent that understands it and can explain it to you and negotiate it properly.
02:58 Speaker A
So what do prospective home buyers need to do as they get ready to make an offer?
03:14 Melanie Atkinson
Oh, sorry, I thought you had more to the question. Uh, so whenever they’re ready to make an offer, uh, they want to make sure that they have, uh, their pre-approval letter ready. They, uh, want to make sure that they’re going over all the disclosures, uh, that the seller is providing. So homeowners association, condo associations, they definitely do not want to get stuck in a situation where there’s some special assessment that they didn’t know about. So check those disclosures. You also want to have your agent look at recent sales and pendings, so you can make an educated offer. And then really important is to consider all the costs of homeownership from a monthly budget perspective. Don’t just look at your mortgage payment. Make sure you’re paying attention to insurances and, um, extra homeowners association fees and of course taxes.
04:36 Speaker A
Now, you also have some tips to help prospective home buyers and get their offers selected. What are those tips?
04:47 Melanie Atkinson
Yes, so it’s not all about money all the time. Obviously, that’s the best way to get your offer, uh, to stand out is to offer more, but really finding out what the seller’s motivation is. Maybe they need a long or short closing. Maybe they need a lease back, uh, where they are getting out of the house over a month and allows them an easier transition. Um, there’s a lot of different, um, things that you can do with your lender. You can have the lender call the agent and the listing agent and explain that you are a well-qualified buyer, so the sellers aren’t nervous about your ability to get the loan. Um, one thing that we do here in Florida is we have shorter contingency periods, uh, which tightens up the contract and makes it more desirable.
06:01 Speaker A
I was going to wager a guess that you were in Florida based on the Tampa Bay Buccaneers paraphernalia behind you as well. Yes. Yes, Lightning and Tampa Bay Buccaneers.
06:46 Melanie Atkinson
Yes.
06:57 Speaker A
Yes, yes, indeed. And so all those things considered, as you’re looking at the Florida market versus what we’ve seen perhaps down payments more broadly on an aggregate scale. You know, what is the comparison that you’re seeing and and how hot is the market down there?
07:20 Melanie Atkinson
Well, the market has definitely, uh, cooled off a little bit from the COVID years. It was crazy here in Florida during the COVID years. So we are more, um, working towards a balanced market and even a seller’s market, or I’m sorry, a buyer’s market in some situations, especially condos. We have a lot of inventory of condos. Um, it’s a very complicated, uh, uh, situation with with the condo market down here. Um, but in general, we don’t have the same amount of people coming down here. It doesn’t mean that the market is distressed. It just means that it’s slowed down and it is a little bit more balanced, which is really great for buyers because they have a lot more leverage now than they used to a couple years ago.
08:29 Speaker A
Melanie, thanks so much for taking the time here and breaking down some of the expert tips for folks who are getting out there and perhaps doing some shopping this weekend. Appreciate it.
08:43 Melanie Atkinson
You’re welcome. Thank you.