We often hear stories about buyers defaulting on contracts to purchase real estate.  They “walk”, they don’t deposit their earnest money, they don’t apply for their mortgage on time, they don’t close by the closing date.  But how often do you hear about SELLERS defaulting?

First, let’s get the definition of default. According to the Florida Association of Realtors Residential Sale and Purchase Contract, Default is: “Seller fails, refuses or neglects to perform this contract”.

I am not an attorney, but some examples of what seller default might be:   failing to act on a required repair item, neglecting to remove tenants if specified in the contract, refusing to close. 

Well, I had two cases in the last week.  One example: I represent the buyer and the seller has decided not to do a required wood rot repair.  The seller claims “he has done enough improvements” and is not doing any others.  “The buyer should be happy.” 

According to the Florida contract, in the case of seller default, the buyer may “choose to receive a refund of buyer’s deposit, without waiving the right to seek damages, or to seek specific performance”.  The contract goes on to outline the methods of dispute resolution.

The question is, with such a “minor” default, who would bother?  If the wood rot is $100, should the buyer delay the closing to go through mediation, especially when he needs a home?  If the seller did not leave the house broom-clean, if he failed to remove tenants on time, if he removed a small “attachment”, should the buyer go to arbitration?  If the closing were delayed a few days, and their is no per diem penalty paid, oh well?

In Florida, on both the buyer and seller side, these are not uncommon occurences.  The problem is, if no one enforces the contract, nothing will change.  You see, it is not normal custom in Northwest Florida to have individual attorney representation for our closings, like many other states.  Thus, in the case of a default, the buyer or seller would have to spend extra monies to hire an attorney.  They usually won’t.

That is why Florida real estate transactions tend to have many of these nuisance defaults, and no one bothers. What say you?

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Destin Florida Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy’s Destin Real Estate Blog

Yesterday I received this email from a potential Rosemary Beach, Florida real estate buyer.

Dear Wendy Rulnick:

 We found you on the web. We were set on looking for a home between Rosemary Beach and Grayton Beach south of 30A. Our question is, how do you feel the long term impact of the oil spill will affect the area? 

 Thank you, ”Unsure”

Dear “Unsure”,

I sincerely think it is a big unknown.  Obviously, there will be knee-jerk reactions at first should the oil hit our area on the Florida Panhandle.  Buyers will be concerned because there is no definitive answer, and may put off real estate purchases.  Thus, it might create more downward pressure on pricing.  I think those who really love the 30-A, Rosemary Beach area in South Walton County, Florida, will still seek those communities. There are economic and area improvements coming due to the new Northwest Florida Beaches International Airport in Panama City.  Another area-wide community-booster is Eglin Air Force Base’s new F35 Joint Strike Fighter training program.

 Meanwhile, BP tells us they will do whatever they need to keep our beaches beautiful.  It is a top priority locally and at the state level.  Governor Crist is fully involved.  Walton County has both a protection and restoration plan.

Let me know if you want to find a home in Rosemary Beach, Grayton Beach or 30-A.  I have a team of highly trained buyer specialists, and will put you in good hands.

Sincerely yours,
Wendy Rulnick, Broker

Rulnick Realty, Inc.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Rosemary Beach Florida Real Estate

Rosemary Beach Short Sales & Pre Foreclosure Help.

Read Wendy’s Grayton Beach Real Estate Blog

I have been negotiating a short sale offer for a Destin Florida condo for about a week.  Today I received the following email from the buyer’s agent:

“Here is my buyer’s final offer for the condo.  Purchase Price – $150,000

 $50,000 at closing, $50,000 in 12 months and the other $50,000 in 24 months.

 Seller to pay all closing costs 

 Seller to pay 6 months of condo dues

He would like an answer by 2pm on Monday.”

Enough said.

  Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

 Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help. 

Read Wendy’s Destin Real Estate Blog 

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204 Email Wendy: itswendy@rulnickrealty.com

Are you considering building a new home in Crestview, Freeport, Navarre, Rosemary Beach, Watercolor or Niceville Florida?  Consider these questions in your search for that fantastic home of your dreams.

1.  Is the builder licensed?  This may seem like a basic assumption, but always verify his current active license and possible compaints .  Go to the Florida Division of Business and Professional Reguation website and you can check.  Even if you’ve had a friend use the contractor, he might not be legitimate.  If the builder has already commenced work, go to the online Clerk of Court records in your county to see if permits were pulled in his name.  You may research Okaloosa County, Santa Rosa County or Walton County records.

2.  Will you be able to see other homes the builder has completed?  If your contractor is a custom-home builder, he should be happy to send you to see a past customer’s house to view his workmanship.  Talk to the customer, too, and find out what his experience was with the builder and during construction. That way, you may have more reasonable expectations about the building process.

3.  Will you be able to review the contract before signing?  Some national builders will not release their purchase and sale agreement for you to take home to review.  They will state it is not their policy.  Insist on it, especially if you are not comfortable turning over a deposit and signing under pressure in the on-site salesperson’s office.

4.  Does your building plan comply with association restrictions or covenants?  Do not assume that the builder and your local building inspector will check your covenants for you.  The building inspector may only check for compliance with building codes.  Don’t risk a lawsuit from the community association because you have installed the wrong roof type, used unapproved materials, built an unacceptable style of home, etc.  You could be sued, and it could be costly.

5.  Does the builder offer a warranty?  The State of Florida does not require the builder to warrant their work for any period of time.  Check your state laws.  Ask if the builder will provide a policy for defects.  An example of a reputable warranty company is Bonded Builders.  Coverage will be for up to ten years for major structural items, which is transferable to a new buyer of your home.

6.  Who will be your main point of contact during construction?  Will it be the salesperson, the construction supervisor or the builder?  Find out how communication works with your contractor.  If it is a large national company, with many layers of management, be proactive and follow up with any questions, don’t assume your issue will be taken care of.  Remember, if the builder has a 100 lot subdivision and dozens of homes under construction, information can get lost that might affect the completion of your house.  I know a couple who recently bought a new home from a national builder in Crestview Florida.  The home needed a variance because it was built over the setback line.  The variance would take 30 days before it was approved.  The builder did not notify the buyers until four days before the closing that there would be a delay because of the variance.  Why?  It seems that no one at the company was responsible for the “overall” construction picture. 

7.  I don’t need a “home inspection” on a new home, right?  Not necessarily.  Great builders are not afraid of home inspectors.  Home inspectors may be the objective third party who will guide you through to reasonable expectations from the builder.

8.  Don’t expect the house to be “perfect” at your punch-list walk-through.  Homes are built by human hands.  Expect dozens of items needing correction, such as paint, scuffs, trim work, landscaping, etc.  Your builder should have a system to finish the home to your complete satisfaction, however, in writing.

9.  When should I worry?  Red flags are when the contractor asks you for more money outside the terms of your contract.  Certainly, if it is a “change” during construction, you might have to pay for it at the time depending on your agreement.  But if the request is for moneys to “continue” work that is not specified in your contract, seek legal counsel.  Also, if the builder stops construction without a reasonable explanation for days or even weeks, you may need an attorney.

10.  Should I use my own Realtor?  If it is a national builder represented by an on-site salesperson, you should strongly consider bringing in your own Emerald Coast real estate agent.  On-site salespeople can be great and knowledgeable, but they represent the builder, and may not bring up any of the items in this list.

Finally, buying and building a new home in Crestview, Freeport, Navarre, Rosemary Beach, Watercolor or Niceville Florida is very exciting.  Expectations are high, and emotions follow, because new construction can fulfill your lifetime dreams.   Educate yourself, research, and interview your builder.  And consider hiring an experienced real estate agent to guide you along the way.

It’s Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy’s Destin Real Estate Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

As a short sale listing agent in the Destin Florida area, I tend to get the same type of offer again and again.  The buyer asks for all closing costs to be paid by the short sale lender.  So, on the most recent offer on one of my short sale listings, of course the buyer’s agent pressed for having Countrywide, now Bank of America, pay all the closing costs.  I have been through this numerous times before.  The agent tells me they “had one case” where all the costs were paid.  Or they say they “heard” the short sale lenders would cover all the costs if the offer price was raised.  I have to always leave the final decision to my seller, but I recommend against going down this path. 

To placate this agent, I emailed my favorite Bank of America negotiator, specifically asking what closing costs would be paid.  This is her response:

“We pay all outstanding property taxes, commission (amount depends on loss and investor), $3,000 to any outside 2nd lien, settlement or escrow fee, title insurance, doc stamps. We typically do not pay any miscellaneous type fees (wire, courier, admin, doc prep, notary, home warranty, etc.). All fees are negotiable depending on the loss and investor and is up to each individual negotiator as to what fees will be paid.  It is also at management’s discretion when a decision is made.”

At the insistance of the buyer’s agent, who asked if the buyer could increase his offer price to “cover” more closing costs, the Bank of America negotiator said: “No, they usually still will not pay those items.”

99% of the time, if you submit a short sale offer asking for all the closing costs to be paid, you will get rejected or countered.  Why waste sixty to ninety days for nothing?  Submit a good offer, one that you know can get approved, and increase your chances of short sale success.

It’s Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Destin Florida Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Destin Real Estate Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com

Call Wendy Rulnick, Destin real estate agent, to list and sell your home or condo or help you buy a home or rental property on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.   Wendy is a short sale and pre-foreclosure specialist and can help you sell or buy a short sale property in and around Destin Florida and the Emerald Coast.

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