What is happening with real estate commissions in Parrish, Florida?

As of August 17, 2024, a new rule has come into play in the real estate world. Sellers are no longer automatically required to pay the commission for the buyer’s agent in a real estate transaction.

Buyers now need formal agreements with their agents that outline the maximum compensation the agent can receive and specify who will cover the cost. These agreements must be signed and in writing before viewing any property—whether in person or virtually.

The new agreements are a positive change. They provide clarity for buyers by outlining the exact costs upfront, ensuring there are no hidden fees. Buyers can feel more confident knowing what they will owe and who is responsible for covering it. Additionally, buyers remain in control throughout the entire process. Remember, commissions are never set in stone and can always be negotiated.

The agreement can be tailored to a specific property, area, or time period. It can also be exclusive, meaning the buyer agrees to work solely with this broker during the specified timeframe, or non-exclusive, which allows buyers the freedom to work with other agents while ensuring that the broker who assists with the purchase still receives the commission.

Buyers Have Four Options for Compensating Their Buyer Broker:

1. Limit Property Showings:

Buyers can instruct their broker to only show properties where the seller offers compensation to the buyer’s broker. This means any listings where the seller isn’t covering the broker’s commission won’t be shown. While this may be appealing to buyers not used to paying agent fees, it could limit their home options and result in fewer offers for sellers.

2. Pay the Broker Directly

Buyers can choose to pay their broker directly for any home they purchase, regardless of the seller’s compensation. While this lowers the seller’s closing costs, it’s likely to be the least popular option. Buyers who select this route often factor the broker’s fee into their offer and negotiations.

3. Include Compensation in the Contract

Buyers can request their broker to include a clause in the sales contract that requires the seller to cover the broker’s commission if it’s not already offered. This option maintains the traditional setup where sellers pay the buyer’s broker.

4. Split the Compensation

Buyers and sellers can split the broker’s fee. Buyers agree to cover the difference between the maximum compensation stated in the buyer-broker agreement and the amount the seller is offering. This ensures the broker is fully compensated while sharing the cost.

Current Trend in Real Estate Commissions

The majority of buyers are still opting for sellers to cover the buyer broker commission, and what we’ve seen in the market is that most sellers are agreeing to this arrangement. Even with the recent changes in commission rules, about 99% of sellers continue to offer compensation to buyer brokers.

This is also true with new construction developments in Parrish, Florida. Most developers are still offering buyer broker commissions as part of their incentive packages to attract buyers and their agents. For buyers, this means they can still benefit from having professional representation without having to pay the broker directly out of pocket.

In fact, working with a buyer broker during the purchase of new construction can be especially valuable because the broker can help navigate contracts, negotiate upgrades, and ensure that the buyer is fully informed about warranties, inspections, and potential closing costs.

Developers understand the value of buyer brokers in facilitating a smooth transaction, which is why many continue to offer commissions as a standard practice.

While it’s no longer mandatory for sellers to pay the buyer broker commission, the market trends show that offering compensation typically leads to more showings and competitive offers, benefiting both parties.

Conclusion

Understanding buyer broker agreements and commissions is key to navigating the real estate market in Parrish, Florida.

At Keys to the Coast Real Estate, we strive to empower our clients with the knowledge they need. We want you to feel confident and informed every step of the way. Our goal is to provide you with a seamless experience as you search for your perfect home.

Don’t forget to check out our buyers page, where we go over all the top buyer concerns for homes in Parrish, FL!

Meet the Team

Amy Prumo

Amy Prumo is an Elite agent with extensive experience and deep local expertise, known for delivering outstanding results in the Parrish real estate market. Amy’s attention to detail, strong communication skills, and unwavering commitment to excellence have made her one of the most sought-after agents in the business. 

Thomas Carden

Thomas Carden brings a wealth of knowledge from his background in building, planning, zoning, and development. With over 20 certifications from the International Code Council, including Planner Review and Certified Building Official, he is a recognized expert in his field and an expert legal witness in construction. 

A Buyer’s Guide to New Home Construction Contracts in Parrish, FL

So, you’re thinking about buying a new construction home in one of Parrish, FL’s many exciting developments. If you haven’t done so already, be sure to check out our new construction page, where we take a deep dive into all the exciting projects available in the area. 

Buying a new construction home is quite different from purchasing a resale property, so it’s crucial to understand what you’re getting into. In this blog post, we’ll break down the essential sections of the builder’s contract you need to know when looking at houses for sale in Parrish, FL.

Builder Contract Vs. As-Is Contract for Houses for Sale in Parrish, FL

With new construction homes in Parrish, FL, be prepared to put down a larger deposit than you would for resale properties. The builder will want you to have “skin in the game” since you won’t close and pay for the home until it’s fully completed. If you’re considering new houses for sale in Parrish, FL, make sure your budget accounts for this larger upfront cost.

(We also have a post on the As-Is Contract if you’re looking for more information on that.)

No Inspection Period (Due Diligence Period)
When you enter into a contract with a builder, there’s no inspection period. This means there’s no escape clause to back out of the agreement. Once you sign, you’re committed, and if you decide to cancel, you risk losing your deposit.

In contrast, the Florida “As-Is” contract usually includes a 15-day inspection period. During this time, you have the option to back out and receive your deposit back if things don’t pan out.

Bigger Deposit Amounts for Parrish, FL New Construction Homes
When you sign a contract with a builder, be prepared to put down a bigger deposit than you would with an As-Is contract. Since you won’t close and pay for the home until it’s fully completed, the builder wants you to have some skin in the game. This ensures that you’re committed to the process and the home, giving them confidence to move forward with the build.

Buyer Pays the Document Stamps
In Florida, document stamps are taxes imposed on specific documents recorded in the public records, like deeds and mortgage documents. The amount you pay varies based on the sales price of the property. This can add up quickly, especially with new construction homes in Parrish, FL.

Unlike resale transactions, where it’s common for sellers to cover many closing costs, buyers usually bear the responsibility for document stamps in new construction deals. This means that as you prepare to close on your brand-new home, it’s crucial to budget for this additional expense.

Closing Date

In new construction contracts in Parrish, FL, the closing date is usually determined by the builder and their timeline. In contrast, resale properties in the area typically have a more defined closing date that both parties agree on, often within 30 to 60 days of signing the purchase agreement.

The Fine Print in Parrish, FL Builder Contracts

Builder contracts in Parrish, Florida, are way more detailed than your average real estate purchase agreement. These contracts cover a ton of important details! They lay out all the options for your new home, from floor plans to finishes. You’ll find clear timelines for making changes, so you know when to make those big decisions. Plus, they specify the expected timeframe for building your home, so you can get a better idea of when you’ll be moving in.

These contracts also outline how you’ll communicate with the builder, including scheduled meetings and site visits. You’ll definitely want to check in regularly to see how your home is coming along! The plans and drawings will show you what your home will look like, while the materials section breaks down what’s being used in construction.

And don’t forget about warranties! Builder contracts usually include details about warranties, so you’re covered if any issues pop up after closing. With all these moving parts, it’s clear that builder contracts are designed to protect both you and the builder. So, it’s super important to read them carefully and understand every detail before you sign on the dotted line.

Final Thoughts

When it comes to buying new construction homes in Parrish, FL, being informed and proactive is key. Builder contracts are full of important details, so it’s essential to understand what you’re signing. Don’t be afraid to ask questions and stay involved throughout the building process.

If you need guidance or have any questions, We are here to help at Keys to the Coast Real Estate.  We can assist you in navigating the new home construction process in Parrish, FL, ensuring a smooth and confident home buying experience.

Don’t forget to check out our buyers page, where we go over all the top buyer concerns for homes in Parrish, FL!

Florida’s As-Is Contract: A Guide for Buyers of Houses for Sale in Parrish, FL

Buying a home in Parrish, FL, can be exciting, especially with so many houses for sale in Parrish, FL. However, it’s important to understand the As-Is Contract. Knowing the details will help you make smart decisions and protect yourself.

In this post, we’ll cover the key points every homebuyer in Parrish, FL should know.

Note: The As-Is Contract is typically not used for brand-new construction when purchasing through a builder. Instead, when you buy a home from a builder, you must use their specific contract. For more information on new construction contracts, check out our post on builder contracts.

Buyer-Friendly

First off, it’s important to know that the Florida As-Is Contract is considered very buyer-friendly compared to other states. It’s designed with built-in protections that give buyers outs if unexpected issues come up during the process.

Deposits for houses for sale in Parrish, FL

In the Parrish real estate market, it’s common for buyers not to provide a deposit right away. Instead, agents and buyers usually negotiate and finalize the contract first. This way, both sides can agree on the key terms before any money is involved.

Once the seller accepts the buyer’s offer, the buyer typically has around 3 days to submit the deposit, also called the earnest money deposit. This shows the buyer’s good faith and commitment to moving forward with the purchase.

If the buyer doesn’t submit the deposit on time, the seller can cancel the contract, leaving the buyer without a claim on the property. Once the deposit is submitted, it’s usually held in an escrow account until closing. If the sale is completed, the deposit goes toward the purchase price. However, if the buyer backs out during the inspection period for a valid reason, they may get their deposit refunded, depending on the contract terms.

Inspection Period

In Parrish, the Inspection Period is a key part of buying a home. It usually lasts 15 days from the date the contract is signed, giving the buyer time to check out the property. During this time, buyers can hire a home inspector to assess the home’s condition and look for any issues that may not have been obvious during the initial walkthrough. If the inspection finds serious problems, the buyer has options. They can ask the seller to make repairs, request a price reduction, or—if the issues are too big—walk away from the deal and get their deposit back.

The Inspection Period is also a good time to research insurance costs, which can help determine if the home is affordable in the long run. It’s important for buyers to use this period wisely. Get all the necessary information and make sure the property is in good shape. This time is limited, so it’s best to act quickly and gather all the details needed to make a smart decision.

Financing Contingency on Houses for Sale in Parrish, FL

In a typical Florida’s As-Is Contract, if you’re getting a loan to buy a property in Parrish, FL, a financing contingency is usually included. This contingency gives you about 30 days from the contract date to secure loan approval from your lender.

During this time, you’ll work with your chosen lender to complete the loan application and submit all necessary documents. The lender will review your financial information, credit history, and other details to see if you qualify for the loan.

You’ll also need to get the property appraised within this timeframe. The lender typically orders this appraisal to determine the home’s fair market value. It’s a crucial step to ensure the home’s value matches the purchase price. If the appraisal comes back lower than expected, it could affect your financing. You might need to renegotiate with the seller or bring extra cash to cover the difference.

Having a financing contingency in your Florida’s As-Is Contract is important for your protection as a homebuyer in Parrish, FL. If you can’t secure loan approval within the specified time, you can back out of the contract without losing your earnest money deposit. This gives you peace of mind and an option if you face challenges with financing or if the appraisal isn’t in line with your purchase price.

As you explore houses for sale in Parrish, FL, understanding these financing details will help you make informed decisions and enhance your home buying experience.

Effective Date

In a real estate transaction in Parrish, FL, the effective date of the contract is when all parties have signed and the contract is delivered to everyone involved. At this moment, the contract becomes legally binding, and the timeline for various important dates begins.

For instance, as we discussed earlier, both the Inspection Period and the Financing Contingency Period start counting down from the effective date. Other key deadlines, such as the closing date, the deadline for completing repairs (if any), and other negotiated terms, will also be based on this date.

Since the effective date marks the start of everyone’s obligations under the contract, it’s crucial for all parties in Parrish to keep track of this date and the deadlines that follow. Understanding these timelines will help ensure a smooth and successful transaction in the vibrant Parrish real estate market.

Closing Date

The closing date is a key part of any real estate transaction. It’s when the sale officially closes and ownership of the property is transferred from the seller to the buyer. It’s important for both sides to agree on a realistic closing date during negotiations.

In the Parrish real estate market, agents often include phrases like “on or before” a certain date in the contract. This allows for some flexibility, so the closing can happen earlier if everyone is ready. As a buyer, make sure to give yourself enough time to avoid feeling rushed or stressed during the closing process.

Think about your situation and any upcoming commitments before settling on a closing date. If you think you’ll need more time for things like securing financing, moving, or personal matters, bring this up early in the negotiations. Asking for a closing date that allows for enough time can help reduce pressure and avoid complications later.

Keep in mind that unforeseen delays can happen during the closing process, such as last-minute documentation issues or title concerns. Having a bit of buffer time is helpful for both buyers and sellers. This extra time ensures all necessary steps—like inspections, appraisals, and loan approvals—can be completed thoroughly and without unnecessary stress.

Keys to the Coast in Parrish, FL

In conclusion, navigating the real estate process in Parrish, FL, involves understanding key elements like the effective date, inspection period, financing contingency, and closing date. Each of these aspects plays a vital role in ensuring a smooth transaction for both buyers and sellers. By staying informed and proactive, you can make confident decisions that lead to a successful home purchase.

At Keys to the Coast Real Estate, we’re here to support you every step of the way.

Don’t forget to check out our buyers page, where we go over all the top buyer concerns for homes in Parrish, FL!

Meet the Team

Amy Prumo

Amy Prumo is an Elite agent with extensive experience and deep local expertise, known for delivering outstanding results in the Parrish real estate market. Amy’s attention to detail, strong communication skills, and unwavering commitment to excellence have made her one of the most sought-after agents in the business. 

Thomas Carden

Thomas Carden brings a wealth of knowledge from his background in building, planning, zoning, and development. With over 20 certifications from the International Code Council, including Planner Review and Certified Building Official, he is a recognized expert in his field and an expert legal witness in construction. 

What Home Insurance do I need? – Homes in Parrish

If you’re buying a home in Florida, especially in Parrish, it’s essential to understand the insurance you’ll need. Coastal areas, like much of Florida, come with extra risks—meaning more insurance coverage might be required.

Homes near the coast are more vulnerable to hurricanes, flooding, and wind damage, which can drive up insurance costs. For instance, in Parrish, you may need flood insurance in addition to regular homeowners’ insurance, even if you’re not directly on the water. Knowing what coverage you need will help protect your investment.

3 Types of Insurance: Homeowners, Flood, and Wind Insurance

If you’re buying a home with a mortgage in Parrish, Florida, you will likely need both homeowners and wind insurance. The requirement for flood insurance depends on the flood zone of the property. Many areas in Parrish are classified as Zone X, which means flood insurance is not required. However, you can still opt for flood insurance if you wish to have extra protection for your home.

Homeowners Insurance: The Basics

Homeowners insurance is your safety net for your house and belongings. It helps protect you from unexpected events like fires, theft, or storms. If something happens, this insurance can help pay for repairs or replacements.

If you buy a home in Parrish, Florida, homeowners insurance is usually a must, especially with a mortgage. Here’s what it covers:

Dwelling Coverage: Pays for repairs to your home due to damage from events like fires or storms.

Personal Property: Covers your belongings, like furniture and electronics, if they are stolen or damaged.

Liability Protection: Helps cover medical bills or legal fees if someone gets hurt on your property.

Additional Living Expenses: Assists with temporary living costs if you can’t stay in your home due to damage.

Wind Insurance: What You Should Know

Wind insurance is a special type of coverage that protects your home from damage caused by strong winds, like those from hurricanes or tropical storms. In Florida, where storms can be a big concern, having wind insurance is especially important.

The cost of wind insurance, or premiums, depends on several factors, including the type of roof you have, the strapping used, and the coverings on your doors and windows. For example, some homes in Parrish, FL, may have impact windows and doors, while others do not. These features can affect the level of protection and, ultimately, the insurance costs.

Flood Insurance: What You Need to Know for homes in Parrish, Fl

Flood insurance is a type of coverage that protects your home and belongings from damage caused by flooding. Flood damage is not typically covered under standard home insurance, so having a separate flood insurance policy is crucial to protect your home and belongings from the devastating effects of flooding.

In Parrish, Florida, there are four flood zones: A, AE, VE, and X. The best flood zone to be in is Zone X, as it’s the least likely to experience flooding. Next are Zones A and AE, with VE being the highest risk zone, typically located right by the water. We sometimes joke that VE stands for “Very Expensive” because the more prone an area is to flooding, the higher your flood insurance costs will be.

If you’re buying a home in Parrish and it’s in a flood zone, and the seller has flood insurance, you can assume the seller’s policy as a buyer. This means you can get the same rate as the seller, which will likely be much cheaper than writing a brand new policy.

So, how do you know what flood zone you’re in? Don’t worry—we’ve got you covered in our blog right here for you to read!

Understanding your flood zone is crucial for making informed decisions about your property in Parrish, Florida. Whether you’re buying a home, considering flood insurance, or simply wanting to stay informed, knowing your flood zone can help you protect your investment and ensure your safety.

Don’t forget to check out our buyers page, where we go over all the top buyer concerns for homes in Parrish, FL!

Meet the Team

Amy Prumo

Amy Prumo is an Elite agent with extensive experience and deep local expertise, known for delivering outstanding results in the Parrish real estate market. Amy’s attention to detail, strong communication skills, and unwavering commitment to excellence have made her one of the most sought-after agents in the business. 

Thomas Carden

Thomas Carden brings a wealth of knowledge from his background in building, planning, zoning, and development. With over 20 certifications from the International Code Council, including Planner Review and Certified Building Official, he is a recognized expert in his field and an expert legal witness in construction. 

Parrish, FL – Flooding

If you plan to live in Parrish, Florida, you’ll need to be prepared for hurricanes—it’s part of life in Florida. Knowing if your home is in a flood zone is crucial for understanding the risk of Parrish, Florida flooding. You should know what you’re getting into when you move to this sunny state.

So, is Parrish, Florida, in a flood zone?

Well, that answer depends on your specific location in Parrish, Florida. 

Federal Emergency Management Agency (FEMA) has updated the County’s flood zones effective August 10, 2021.

To find out if you’re in a flood zone, there’s an easy way to check.

Simply visit the Resident Information Tool website and enter the address you’re curious about. This will give you the information you need! 

What are the flood zones in Parrish, Florida?

Flood zones are areas marked by their risk of flooding. These zones help guide city planning, building rules, and insurance needs. Knowing your flood zone is important for homeowners, builders, and local governments to reduce Parrish, Florida flooding risks, follow building codes, and make smart choices about where to build or buy property.

Flood zones are related to the risk of flooding due to rain, rivers, or other freshwater sources. They are important year-round because they indicate areas prone to Parrish, Florida flooding during heavy rain or storms.

In Parrish, Florida there are basically 4 Flood Zones:

Zone A: This is a high-risk flood zone where flood insurance is usually required, but no base flood elevation (BFE) has been determined. That means there’s no exact measurement of how high floodwaters might rise.

Zone AE: Also a high-risk zone, but it does have a base flood elevation (BFE) established. This tells you how high the water is expected to rise during a flood, and helps set building standards and insurance rates.

VE Flood Zone – VE stands for “Velocity Zone.” This designation indicates areas at high risk for flooding, particularly due to wave action. These zones are typically located in coastal regions where wave heights can be significant during storm events.

X Flood Zone – This area is considered to be outside of the flood zone, meaning the likelihood of flooding is very low, typically below the 500-year flood level.

What’s the difference between a flood zone and an evacuation zone?

As mentioned above, flood zones are areas marked by their risk of flooding year-round. Evacuation zones, on the other hand, are only relevant during major storms like hurricanes. These zones focus on areas where ocean or gulf waters might be pushed onto dry land by strong winds during these events.

In Parrish, Florida, evacuation levels are categorized from A to E. Areas not included in these levels are labeled as “not in the evacuation area” or N/A. Keep in mind that evacuation levels differ from flood zones and aren’t tied to hurricane categories.

Level A is the first to evacuate, while higher levels indicate a greater risk. If your property falls within two levels, you should follow the guidelines for the lower level.

All residents and visitors in mobile homes, RVs, or travel trailers must evacuate when Level A is declared, no matter their location.

It’s important for residents to know their evacuation zone before hurricane season starts.

For More information on Evacuation Zones check the website here.

Stay Safe: Utilize the Extreme Weather Dashboard for Flood Zone Awareness

The Extreme Weather Dashboard for Manatee County is your go-to resource for real-time weather updates. It features interactive maps and visuals to track hurricanes, evacuations, shelter information, road closures, and sandbag locations. This tool is designed for residents and local agencies to stay informed and prepared during extreme weather events. Check it out to better understand the risks in your area!

For more details, visit the Extreme Weather Dashboard.

Parrish Florida Flooding

Understanding the flood zones in Parrish, Florida, is essential for residents and prospective homeowners. By knowing whether your property is in a flood zone, you can take proactive steps to mitigate the risks associated with Parrish, Florida flooding.

This knowledge not only helps you comply with local building regulations but also aids in making informed decisions about insurance and property investments.

Stay informed and prepared to protect your home and community from the impacts of flooding.

Don’t forget to check out our buyers page, where we go over all the top buyer concerns for homes in Parrish, FL!

Meet the Team

Amy Prumo

Amy Prumo is an Elite agent with extensive experience and deep local expertise, known for delivering outstanding results in the Parrish real estate market. Amy’s attention to detail, strong communication skills, and unwavering commitment to excellence have made her one of the most sought-after agents in the business. 

Thomas Carden

Thomas Carden brings a wealth of knowledge from his background in building, planning, zoning, and development. With over 20 certifications from the International Code Council, including Planner Review and Certified Building Official, he is a recognized expert in his field and an expert legal witness in construction. 

Navigating HOA Responsibilities for Homes in Parrish, FL

You’ve got CDDs and HOAs in Parrish, Florida, and we know it can be confusing. In this blog post, we’re going to cover what an HOA does, especially for those looking at homes in Parrish, FL. If you’re curious about what a CDD is, take a look at our blog on CDDs here.

So, what’s an HOA?

An HOA stands for Homeowners Association. It’s a group that manages the common areas, sets rules for the community, and ensures everyone follows them. The goal is to keep the neighborhood looking great and protect property values for homes in Parrish, FL.

What does the HOA do?

An HOA is responsible for maintaining the common areas like landscaping, amenities (such as pools and clubhouses), and sometimes even exterior home maintenance. Their goal is to keep the neighborhood looking nice and protect property values. Typically you will find a property manager at the community in Parrish.

How are the HOA fess paid in Parrish, FL?

Homeowners pay HOA dues, typically monthly or quarterly, which cover the costs of upkeep and management.  Most communities in Parrish have an online system where you cna pay online. 

Who controls the HOA?

HOAs are usually run by a board of residents or a management company. They set community rules, such as landscaping guidelines and parking restrictions, to maintain consistency throughout the neighborhood, especially for homes in Parrish, FL. In the early stages of a community, the developer controls the HOA. As more of the community gets developed, developer board members gradually step down, and local residents replace them. Eventually, all developers will leave the board, giving full control to the homeowners.

Can the HOA give violations?

Yes, HOAs have the authority to enforce community rules and regulations. They can issue fines for violations, such as unkempt lawns or unauthorized modifications to homes, ensuring that standards are maintained.

Don’t forget to check out our buyers page, where we go over all the top buyer concerns for homes in Parrish, FL!

Meet the Team

Amy Prumo

Amy Prumo is an Elite agent with extensive experience and deep local expertise, known for delivering outstanding results in the Parrish real estate market. Amy’s attention to detail, strong communication skills, and unwavering commitment to excellence have made her one of the most sought-after agents in the business. 

Thomas Carden

Thomas Carden brings a wealth of knowledge from his background in building, planning, zoning, and development. With over 20 certifications from the International Code Council, including Planner Review and Certified Building Official, he is a recognized expert in his field and an expert legal witness in construction.