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ARE YOUR LOOKING TO PURCHASE
Pre- and New Construction in South Florida?
CHOOSE YOUR REAL ESTATE BROKER CAREFULLY
◊
The Role
of Real Estate Brokers - Buyers Beware
◊
The benefit of working with an Honest Real Estate Broker
◊ Knowledge
◊ Honesty
◊ Compliance with
State and Federal Regulations
◊ Service
◊ The Questions You Should Always Ask!
◊
Disclaimer
THE BENEFIT OF WORKING WITH REAL ESTATE BROKER
As in any service related industry, finding the right person to work
with is key.
What to expect of your broker?
-
Knowledge
- Honesty
-
Compliance with State and Federal Regulations
- Service
KNOWLEDGE: In pre- and new construction, knowledgeable brokers advise
their clients of upcoming buying opportunities and enable them to
purchase early during the "Pre-Construction" phase, often saving them
thousands of dollars. Some well connected brokers have
access to pre-sales events and can secure units in
desirable properties, a major benefit to their clients.
HONESTY: Real estate professionals are often looked upon with
suspicion. Sadly, this reputation is often deserved. Truth
telling and direct honesty are not associated with our profession
as many brokers in an effort to make sales, deliberately "mislead" the public.
Here is are select examples copied directly from competitor
websites (more examples are kept in our files):
Example 1:
Copied September 9th, 2004
50 Biscayne
is having an exclusive VIP sales event August 25th. Buy before the
general public. This is a gorgeous 54-story waterfront tower with
magnificent bay views in Downtown Miami. Get ready for another quick
sell out.
This project opened to exclusive brokers
on Wednesday, August 25th. Due to the overwhelming
demand for 50 Biscayne, this event is by appointment only...
Buy before the general public when the sales office is expected to
open in mid September!.
Here are the facts: 50 Biscayne OPENED TO THE PUBLIC before it opened to BROKERS.
This is precisely why Mazor Realty, LLC did not advertise this
building, although we were invited by the developer to do so. As we were not able to secure FIRST
PHASE pricing for our clients, how can we present it as such? Mazor Realty advised clients interested in
this complex to go directly
to developer's representative, before August 25th!
Example 2:
Copied September 9th, 2004
FREE PRIVATE TOUR OF NEW COMMUNITIES AND RESALE HOMES
You'll be driven to all new home communities and resale
homes in Dade, Broward, Palm Beach, and St. Lucie Counties in south Florida by a
new home specialist who utilizes real estate internet sites, [NAME OF REAL
ESTATE AGENCY] exclusive databases, MLS, builder network and pre-owned
homes to make sure that 100% of the housing market is
covered.
100% of the market is not covered by brokers at all.
1.
Real Estate companies are in business to make money. Real estate
agents only assist buyers when they can earn a commission. Since
some builders and developers do not cooperate with real estate brokers,
and there is no commission to be earned, it is MISLEADING to
claim that 100% of the market is covered!
2.
Think about it. In pre-owned homes, For-Sale-By-Owner homes
are NOT promoted by real estate agencies, are they? In pre- and
new construction, brokers only promote properties built by developers
who cooperate with brokers. In other words, to claim coverage of
100% of the market is FRAUDULENT!
COMPLIANCE WITH REGULATIONS :
Florida has a murky past in its real estate dealings. Stories
from the 1980s abound about swamp land sales and multiple buyers for
single properties. The State of Florida government is working
hard to make sure these problems are corrected and has instituted laws
to protect buyers.
-
Know your rights. Seek "Buyer's Agent"
representation.
Did your real estate agent provide you with Agency Relationship Form,
advising you of their obligations to you before introducing you to
properties?
- Beware of real estate agents who "Collect Checks" for "upcoming
opportunities." It is ILLEGAL!
Neither developers nor real estate agents are permitted to collect
checks other than at reservation or contract time. FREC (The
Florida Real Estate Commission) requires
real estate AGENTS to deliver checks to their broker within one
business day, and REAL ESTATE agencies to DEPOSIT IN BANK or DELIVER TO
DEVELOPER ALL CHECKS RECEIVED FROM BUYERS within three business days, unless
checks are post-dated.
- Beware of real estate agents who provide you with INVESTMENT advice.
It is illegal and unethical. Even professional investment
consultants who are SEC (Securities and Exchange Commission) licensed
are not at liberty to forecast future earnings.
Remember, real estate brokers are not investment consultants.
What you should expect is knowledge of the market, inventory, price
per square foot, and comparables. NO FUTURE TELLING!
SERVICE: Both knowledge of market, and
honest dealings should be basic requirements of your real estate
professionals. Once narrowed down to real estate professionals who
subscribe to the above, how do you choose the ones to work with?
Easy. Go with your gut. If it feels good, do it.
QUESTIONS YOU SHOULD ASK WHEN BUYING
PRE-CONSTRUCTION!
- Who is the developer? Reputation, Past performance.
- Area information, school information (when applicable), etc.
- When did sales begin?
- Have there been price increases? How many? How much?
- Comparables. What other pre- and new construction are planned for
the area, and how are they priced/selling?
- Will deposit be held in escrow account?
- When will construction begin?
- Are assignments of contract allowed?
- Will simultaneous closings be allowed?
- Can property be sold immediately after closing?
- What are the Rental Policies?
- What are the Pet Policies?
- What will Maintenance Fees amount to?
- What Amenities Will be Offered to Residents?
- Is there any information that is not OBVIOUS that may impact the buying
decision? (Example: train tracks near by, proximity to school
(may be noisy), environmental, etc.)
DISCLAIMER
Mazor Realty, LLC is a Florida licensed real estate broker and is competent only to provide information of a factual nature concerning properties for sale. Nothing in this document or website is intended as investment, legal, or accounting advice, nor should the information contained herein be construed or understood as such. Only professionals licensed as investment counselors, accountants, and attorneys are qualified to provide counsel with regard to these other areas.
CLICK HERE AND READ ABOUT:
Buying Pre-Construction.
The Process and the Pitfalls
IF YOU ARE NOT YET WORKING WITH A MAZOR AGENT
PLEASE CONTACT
Mazor Realty, LLC
Boca Raton, FL 33432
Office: 561-998-9500
Fax: 561-892-2406
Email: Sarah@MazorRealty.com
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