My Listing Has Expired…Now What?

Sellers find it difficult to be optimistic after a listing has expired. Most are excited and nervous when that listing agreement is first signed, hoping that the home sells quickly and for a big profit. It's frustrating to wait week after week for a purchase offer when that offer never arrives.

Regardless of the length of listing, when the listing has expired, the broker / seller relationship has come to an end (more or less) and the home is no longer visible to potential buyers. This is when sellers often ask whose fault is it that the home isn't selling?

Check Motivation
The first step is to review your reasons to sell. In other words, maybe you don't have a reason to sell. Perhaps you should temporarily take your home off the market.  If you are not motivated to sell, you are not a seller. You're a home owner with a sign in the yard.

Review Marketing
Where is the business plan to sell your home? Review the marketing plan with your agent, step-by-step. Did your agent drop the ball? Did you? What worked, what didn't?  Did you do a virtual tour, send out direct mail, put a lockbox on the property?

Consider Condition
Go out and look at other homes on the market to determine if your home is in the same condition as those actively for sale. Perhaps you need to do repairs before selling. Maybe your home needs to be staged. Does your home scream curb appeal? Have you followed the top 10 home showing tips?

Look Again at Buyer Objections
What have buyers said about your home? Review buyer feedback, which your agent should have obtained for you when your home first went on the market and after every subsequent showing. Is there validity to what buyers were saying? How can you compensate for those objections?

Talk to Your Existing Agent About Why the Listing Expired
If your agent has fulfilled the marketing plan, worked diligently to sell your home, and the market is not answering the ring to your dinner bell, then you might need to conform to the market. This means a price reduction. Ask your existing agent to prepare another comparative market analysis to determine if your home is priced to sell.

If you respect and value your agent, relist with that agent. Adjust your price accordingly and follow your agent's suggestions, even if it means making repairs or improvements you'd rather not do. If your agent is spending money on your listing through advertising, aggressive marketing and networking that listing, that agent deserves your loyalty.


How Team Johnson of Watson Realty Corp Can Help
However, if you feel your agent is not giving you the service you require, interview other agents to find out what they might do differently.  Team Johnson of Watson Realty would welcome the opportunity to discuss marketing your home.  We have a written marketing plan complete with timetable that gets results.  We list more homes in this area than any other agent or team of agents in our company.  For the last 3 years we have also led our office in sales.  We list an average of 1 home every 3 days and most importantly, in 20 years of existence, we have never had an expired listing! For more information, call Team Johnson of Watson Realty Corp. at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com

Team JohnsonWatson Realty Corp
St. Augustine, FL 32086
904-495-0146
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Florida Homestead Exemption

One of the many benefits to living in the state of Florida is our tax laws.  Florida is relatively unique when it comes to real estate and tax laws. Homestead Exemption is a very crucial part of owning a home and can provide many benefits to homeowners. However it is not as straightforward as one may think.

Benefits of a Homestead Exemption

As a Florida resident and homeowner, a property owner is entitled to a Homestead Exemption. Essentially, this is the act of registering your primary residence with the state government for tax purposes. After registering, the benefits of homesteading are numerous.

On the most basic level, a homestead exemption entitles homeowners to a deduction of $25,000 off of their property’s assessed value. This in turn lowers the tax burden of the home and results in tax savings.

If one’s home is worth at least $75,000, he or she will receive an additional $25,000 deduction from the assessed value of the home, further increasing tax savings. This additional deduction, however, does not apply to school tax levies.

Additionally, pursuant to the Save Our Homes Amendment to the Florida Constitution, the assessed value of one’s homestead property cannot increase more than 3% per year.

What Qualifies as a Homestead Property?

Pursuant to Florida law, the definition of a homestead property is very specific.

1.   Owner must hold the legal or beneficial title

a.   Note: Can be owned by a trust, but not a corporation

2.   Must be the permanent residence of the owner. This is defined as “that place where a person has his or her true, fixed, and permanent home and principal establishment to which, whenever absent, he or she has the intention of returning.”

3.   Only applies to the portion of property that is classified and assessed as owner-occupied

a.   Note: Mixed-use properties only receive exemption on occupied portion

4.   Applies to ONE property

How to Apply for Homestead Exemption

To apply for Homestead Exemption, it is fairly simple. Essentially, you must bring the homestead exemption application to the county Property Appraiser by March 1st of the tax year for which the exemption is sought.  For example, to receive a 2014 homestead exemption, you must have filed by March 1st, 2014.

If one moves into a new home after January 1st, then one would have to wait until the following tax year for exemption.

The renewal process is generally automatic and you do not need to reapply on an annual basis, unless relocated.

If no longer entitled for exemption, it is the responsibility of the filer to notify the Property Appraiser’s office and notify them of his or her change.

All members of Team Johnson of Watson Realty Corp are true Florida residents.  We each own our own homes and understand the real estate law both from a professional and a personal standpoint.  Who better to help you than your soon to be neighbors.  Give us a call to get the ball rolling.  We would welcome an opportunity to be your real estate resource and not just be your real estate agents for the sale but rather your real estate agents for life.  Give us a call at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com

Team JohnsonWatson Realty Corp
St. Augustine, FL 32086
904-495-0146
Click Here to Search the MLS Like an Agent
View My Website
Click Here to Email Me

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Deciding on a Real Estate Agent

Many smart consumers interview potential real estate agents before deciding on one to hire.  Likewise, many of the most successful real estate agents will also be interviewing you to make sure they can work with you.   Both sellers and agents should be selective about who they work with.  The following blog contains sample questions to ask any real estate professional that you are considering hiring.

1. HOW LONG HAVE YOU BEEN IN THE BUSINESS?

Experience does not always mean expertise and a lack of experience does not always mean a lack of ability.  Even the most experienced agents will and should tell you they do not know everything.  Much depends on whether the agent has access to competent mentors and the level of their training. Ask them about their team, company, etc.

2. WHAT IS YOUR AVERAGE LIST-PRICE-TO-SALES-PRICE RATIO?

Knowing the agent's average ratio speaks volumes. A competent listing agent should hold a track record for negotiating sales prices that are close to list prices. Therefore, listing agents should have higher ratios closer to 100%.

3. WHAT IS YOUR BEST MARKETING PLAN OR STRATEGY FOR MY NEEDS?

As a seller, you will need to know exactly where and how your property will be marketed.  More exposure can mean more offers. More offers can mean better "termed" deals and potential higher prices.  Ask the real estate agent how they market their homes.  Better yet, ask if they can provide you with a written marketing plan and/or examples of their marketing.

4. WILL YOU PLEASE PROVIDE REFERENCES?

Everybody has references. Even new agents have references from previous employers. Testimonials from former customers can be very helpful.  Ask the agent to provide you with these.

5. WHAT ARE THE TOP THREE THINGS THAT SEPARATE YOU FROM YOUR COMPETITION?

A good agent won't hesitate to answer this question and will be ready to fire off why he or she is best suited for the job. Everyone has their own standards, but most consumers say they are looking for agents who say they are:

·        Honest and trustworthy

·        Assertive

·        Excellent negotiators

·        Available by phone or e-mail

·        Good communicators

·        Friendly

·        Analytical

·        Able to maintain a good sense of humor under trying circumstances

6. MAY I REVIEW DOCUMENTS BEFOREHAND THAT I WILL BE ASKED TO SIGN?

A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront.  Ask to see forms such as listing agreement, seller’s disclosures, etc.

7. HOW WILL YOU HELP ME FIND OTHER PROFESSIONALS?

Let the real estate agent explain to you who they work with and why they choose these professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors and title companies. Ask for an explanation if you see the term "affiliated" because it could mean that the agent and their broker are receiving compensation from one or all of vendors, and you could be paying a premium for the service.

8. HOW MUCH DO YOU CHARGE?

Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically, real estate agents charge a percentage, from 2% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3.5% for herself and another 3.5% for the buyer's agent, for a total of 7%.

9. WHAT KIND OF GUARANTEE DO YOU OFFER?

If you sign a listing or buying agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? Will the agent stand behind their service to you? What is the agent’s company policy about canceled agreements? Has anybody ever canceled an agreement with them before?

10. WHAT HAVEN'T I ASKED YOU THAT I NEED TO KNOW?

Pay close attention to how the real estate agent answers this question because there is always something you need to know, always. You want an agent to take their time with you -- to make sure you feel comfortable and secure with their knowledge and experience. The agent should know how to listen and how to counsel you, how to ask the right questions to find out what they need to know to better serve you.

Team Johnson of Watson Realty Corp prides ourselves on our success as listing agents.  For the past 3 years we have led our region in listings.  We were awarded “Highest Number of Listings Taken” and “Highest Number of Listings Sold” for 2011, 2012, and 2013.  We would welcome an opportunity to interview to list and sell your home too.  Give us a call at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com

Team JohnsonWatson Realty Corp
St. Augustine, FL 32086
904-495-0146
Click Here to Search the MLS Like an Agent
View My Website
Click Here to Email Me

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What Are CDD Fees?

Whenever people start looking for a home to buy, they usually remember to ask about the fees associated with the property like Homeowner’s Association Fees and taxes.  The fees buyers usually forget to ask about are the Community Development Districts (CDD).  Many of the newer communities in Florida have CDD fees.  These fees can have an impact on how much home you can afford.  This week’s blog article is all about CDD fees.

WHAT IS A CDD FEE?
Municipal governments are reluctant to provide the infrastructure required for new neighborhoods.  As a result, land developers are responsible for installing utilities, roads, water, waste/sewer, schools, conservation areas, streetlights, and bridges.  To curtail upfront costs and offer homes at a lower price, developers takeout bonds to fund these improvements.  CDD fees also go towards funding neighborhood amenities such as parks, clubhouses, swimming pools, tennis courts, trails, golf courses, security gates, etc.  The initial construction cost is covered by the initial CDD bond.

WHEN DO YOU PAY YOUR CDD FEES
CDD bonds are repaid through an annual property tax assessment divided amongst the residents of a community, usually over 20-30 year period.  If you pay taxes as part of the mortgage payment, then the CDD fees will be included in the mortgage payment (accumulated in the escrow account).  If your mortgage payment is not escrowed, you pay your CDD fees at the same time you pay your property taxes.

WHAT ARE THE AVERAGE COSTS OF A CDD FEE? CAN IT CHANGE?
The CDD fee varies from community to community and can even vary from house to house within the same community.  Typical fees can range from $900-$4000 a year.  To verify the amount of the annual CDD payment for a home, look up the home on the county tax website ad examine the non-ad velorum taxes.  If you are looking at tax costs on a REALTOR listing, be sure to clarify if the CDD fee amount is included in the overall tax amount, listed separately, or included in both places on the listing.  The bond portion of the CDD payment usually remains fixed; however the maintenance portion could increase if the community decides to take on additional expenses.  The largest portion of the fee goes toward repaying the initial bond.

HOW LONG WILL THE CDD FEE LAST?The CDD bond will eventually be paid off after 15-30 years. There may be a small fee that continues to cover maintenance after the bond is paid, depending upon what expenses are covered by the Home Owner Association.

Many people want to stay away from CDD fees altogether but that can be difficult if looking for new or newer homes.  If the buyer is financing the amount of the CDD does go into consideration so it is not a number that can be ignored when looking for a home.  For more information on CDD fees or real estate in general call Team Johnson of Watson Realty Corp.  Our office number is 904-495-0146 and our email address isteamjohnson@watsonrealtycorp.com

Team JohnsonWatson Realty Corp
St. Augustine, FL 32086
904-495-0146
Click Here to Search the MLS Like an Agent
View My Website
Click Here to Email Me

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Everything You Wanted to Know About Short Sales

It has become a term that has been tossed around a lot in recent years. but what exactly is a short sale? What is involved? How does it differ from a regular sale? Short sales can be a daunting experience but if you have the right people involved and the right information it is not as bad. This week’s blog post is all about short sales.

What Is a Short Sale
Basically, a short sale is a property that sells for less than the balance owed on the mortgage. In other words, if there is a mortgage balance that is greater than the market value of the home, that property is a short sale. It can also be a short sale in the accepted sales price is higher than the mortgage but not high enough to pay all the closing costs and commissions. The term “short sale” comes from the balance needed to pay off the bank being short. It is by no means or terms a quick or short process.

Are You Guaranteed a Short Sale
Not every property qualifies as a potential short sale. Not every person or family qualifies as a candidate for a short sale. The lien holding bank must agree to grant a short sale and are under no obligation to approve a short sale. A bank will grant a short sale if the bank feels it is in the bank’s best interest to approve the short sale. It is in the bank’s best interest to approve the short sale if the bank will make more money through the short sale process than through foreclosure. It is estimated that banks might save 25% to 30% on foreclosure costs to grand a short sale over a foreclosure, but some investor guidelines make it more profitable for the bank to foreclose.

What Is Necessary for a Short Sale

Most short sale transactions are handled by real estate agents who specialize in short sales. Some agents choose to negotiate with the bank holding the mortgage themselves. Other agents will team up with an attorney and let them negotiate the short sale with the bank. There are 4 essential ingredients to a short sale; however, strategic short sales (those without a hardship) are also possible. If initiating a short sale you will need the following:
     • An underwater home
     • A willing short sale bank
     • A seller with a hardship
     • A buyer willing to purchase the home

What Role Do Real Estate Agents Play in a Short Sale

You should always make sure that your real estate agent knows what they are doing and have experience with short sales. Some aspects of the process are very similar to general real estate sales but it can vary drastically in other aspects. If a short sale is not successful you can lose your home to foreclosure. This processes should not be handled by a novice agent.

Some real estate agents throw homes on the market that will never close as a short short sale. That’s because the agents do not always qualify the short sale sellers. Some agents will place unrealistic price tags on the short sale, which the bank will never accept. Also, many agents will take the first offer that comes in whether it will close or not.


The following is what the agent does in the short sale process:
     • Gather the required paperwork and submit the short sale package to the bank. Sometimes agents hire a third party to negotiate the short sale.
     • Help the seller to price the short sale home. The price needs to be attractive enough to entice a buyer to wait for short sale approval but high enough to satisfy the bank’s payoff of the outstanding mortgage.
     • Put the home on the market. The agent must submit all offers received to the seller. Some offers will be lowball offers.
     • Negotiate the short sale. Sometimes sellers/agents will hire a lawyer to do the short sale.
     • Submits the short sale approval letter to the seller. Most sellers want a release of liability and no deficiency to do a short sale.

A short sale is one of the most important task a real estate agent can take on. If the process is not handled properly the seller can lose their home to foreclosure. We at Team Johnson take this responsibility entrusted to us very seriously and work very hard to make this process as easy as possible for our sellers. We have successfully negotiated and closed many short sale transactions in the past year. We have never failed to successfully negotiate this process. If we can be of any help please give us a call at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com

Team JohnsonWatson Realty Corp
St. Augustine, FL 32086
904-495-0146
Click Here to Search the MLS Like an Agent
View My Website
Click Here to Email Me

FIND US ON THE WEB