In today’s Sarasota market, a significant number of buyers pay for their properties with cash - it is in excess of 60% of purchases.  

You might wonder what is the significant difference between cash and a financed transaction? The biggest difference between the two from a seller's point of view is the potential risk of losing a buyer.  In a cash transaction, typically there may be a "due diligence" period in which the buyer can cancel the contract and in most cases will be able to get his/her deposit back.  That period is generally 15 days or less.  After which, if the buyer cancels, the seller likely has a claim to the deposit.  In a financed transaction, the buyer may not only has that same potential "due diligence" period up front, but will likely have a finance contingency that is typically 30 days in which, should the buyer have an issue with finalizing their financing, they likely will be able to cancel the contract and get their deposit back.  The potential loss of time is the real driving issue that make cash offers more attractive in most cases.  

And a cash offer can potentially provide the seller with a quicker, or more convenient time frame for closing because they are not bound by the lenders underwriting process.

If a financed buyer  wants to increase his/her odds of getting a contract, here are some things to consider:

        Get preapproved and provide a copy of the preapproval letter.

       Work with a good lender.  We recommend a local lender.  Most listing agents recognize that a lender who is not familiar with the local market and Florida transactions can slow down the process. Sometimes the bigger financial institutions are not the best for this market.

        A larger down payment or deposit sometimes can influence a seller's perception of a financed deal.

There are other nuances and issues that may impact the seller's willingness to work with a financed transaction. We have a lot of experience with both buyers and sellers and can help you navigate the transaction process.  

So you decided to pursue a new construction home or condo.  You might wonder if it is beneficial to register an agent as your buyer's agent with the developer, or, more importantly, is there any downside to registering someone.  

Here is a detailed list of the potential negative things that can occur by registering a buyer's agent:

1.  (None)

And here is a detailed list of the positive things that can benefit you by registering an agent:

1.  No cost to buyer.  The developer's in Sarasota area market very heavily to realtors and pay them a commission directly.  That commission has already been budgeted in the project and the buyer does not realize any reduction in negotiating power or what they get for their purchase price.  

2. Buyer representation.  Keep in mind the on-site rep works for the developer.  A good agent can help in negotiating acceptable terms and incentives while limiting risks.  

3. For out of the area buyers, the agent can be the eyes and the ears for the buyer during the build process. 

Don't go it alone, let us help.  

Real Estate Taxes in the Sarasota and Surrounding Areas

Generally, in the current market, we are seeing the annual real estate taxes are running between 1.2% and 1.5% of the homes market value.  That obviously can vary based on several factors, but overall, Florida has much cheaper Real Estate taxes as a percentage of home values than most other states.  

When looking at the Real Estate Taxes for specific listings, it is a good idea to keep in mind a few factors including;

1. Was the home homesteaded?  If so, are you going to homestead the property as your primary residence?
2. There are other tax exemptions available in Florida that you my not be entitled to.  We always look at tax records to see what if any exemptions they are taking.
3. Are there CDD fees included in that tax listed?
4. In Florida, we pay the taxes in arrears so that tax amount is based on previous market information which may increase or decrease (depending on the market) in coming years.