**If you have visited my blog before, you can skip to the tip**
Assuming you found me on Google, Yahoo or just by browsing real estate on the internet, let me quickly tell you who I am and why you might continue reading. My name is Paula Barrera and I work in a well established team (The Congdon Connection Team) with EWM Realtors in Miami, FL – just named by the Miami Herald the #1 Real Estate Firm in Miami. Because I am in this business full-time, I see a LOT of the good, the bad and the ugly that goes on in this city. This daily immersion in the Real Estate world provides me with insight on what to do and what NOT to do.
My main reason for blogging tips for the consumer is a genuine desire to serve and educate. I want the consumer to know that we are not these evil, greedy characters we usually seem to be portrayed as. A good Realtor abides by the Realtor code of ethics, and treats his clients’ deals as if they were his own. In addition to this, a great Realtor has a business plan and regular office hours much like a doctor or attorney. There is good and bad in every industry and I am here to say that I care what you think of us.
** Real Estate Tip of the Day**
Tip of the day:
Do not let a seller or agent try to persuade you with what I like to call “bad comps”.
You must consider all the comparable sales prior to making an offer. When purchasing a property, the bank will order an appraisal to make sure the property is worth the amount they are lending or more. I recommend you go about selecting comps much like an appraiser would.
An appraiser usually tries to stick with comparable properties in THE SAME SUBDIVISION. They may use properties within the square mile if there are not at least 3 sales that occurred within the past 6 months in the subdivision.
In a buyers market (such as the one we are currently in), unscrupulous sellers or agents may try to show you closed sales that represent values at the top of the market without showing you the most recent closed sales. The best way for you to avoid this is to either search the tax records yourself at www.miamidade.gov , or work with an honest agent who will search the MLS closed sales & the tax records, will show you all the recent closed sales & all the available competition.
It is important to take into consideration the condition of the recent sales and any possible mortgage fraud, not just the numbers. Part of what created this buyers market was the large number of fraudulent transactions that occured in the past 5 years and are unfortunately, still occurring.
You will know a transaction is fraudulent when you see a sales price that is WAY out of line with the rest of those in the neighborhood. For example, let’s say Key’s Landing Neighborhood has an average sales price of $275,000 for a 3/2. You, a buyer from New Hampshire, fly down and fall in LOVE with a particular 3/2 in that neighborhood. When you look at the comparable sales you see 4 that sold for $265 – $285k. The owner tries to argue that his next door neighbor just sold for $350,000. Usually in a case like this, there is more than just one party involved. Sometimes the appraisal is inflated and a loan is given for WAY above what the actual value should be. The loan then funds and the seller splits the funds with the buyer. The buyer, is most likely someone using a stolen identity. The home is never occupied and usually goes into foreclosure. The FBI produces a pamphlet that shows the sequence of events in a fraudulent transaction such as this one. Beware of the fraudulent comp.
Click here to visit the FBI’s mortgage fraud page – they’ve got some ASTONISHING pictures!
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Click on the thumbnails below for our team information sheet and some of our properties for sale:
Contact Paula at 786-663-4382 or [email protected]
Happy House-Hunting!