Hello Friends, It's important for buyers and sellers in this coastal market to work with a Real Estate Agent/Broker who specializes in 'Coastal Homes.' I thought I'd spend a few minutes today describing why a Buyer, in particular, is best served by a Coastal Homes Specialist. First, the specialist is going to add value to the search process itself. He or she is going to bring awareness and attention to neighborhoods that might otherwise get overlooked which have some very interesting benefits. Some areas of the coast which get overlooked are going through changes and development which provide a LOT of upside over the next 5 to 10 years. What might be overlooked today, might be the hot spot in the not too distant future. Combining initial savings with higher appreciation due to changes in the neighborhood can leave a buyer with a lot more equity in their home 5 years later. This translates into the ability to either have a larger down payment for their next purchase, or into the ability to keep that first property and rent it in a situation which is cash positive. There is a certain amount of gamble and speculation in this kind of up and coming neighborhood, so a coastal expert can minimize the gamble and maximize the potential. Does your agent live on the coast? Do they have their ear to the ground and know what is happening in specific neighborhoods over the next 5 years?
A coastal expert also has a very keen sense of coastal issues such as erosion, mold, view ordinances and easements. They will be aware of which HOAs have poor reserves, which complexes are in need of major improvements and thus going to require special assessments. On the coast, where exterior maintenance and corrosion are much larger issues than elsewhere, such HOA fee increases and special assessments can dramatically affect your monthly payment and how much equity you are building into your investment. During escrow, it's imperative that your agent has experience with moisture issues, and issues related to older construction etc. It is important that you work with someone who is looking into such issues with YOUR interests in mind. Which brings me to a very common real estate blunder. It's a very dangerous and expensive idea to allow the listing agent who is representing the seller to also represent you the buyer in the negotiation and transaction. When an agent has an existing relationship with a Seller and their property, it is very difficult for even the most scrupulous agent to be fair to a new-coming buyer who may or may not be in the picture 2 weeks later. In most instances, the seller nets much more, and the buyer almost always loses before escrow even starts, and then loses more during escrow. Even more important, keep in mind that the listing agent has more interest in keeping your particular deal together than they do in exposing potential issues. I take great pride in making sure that my buying clients are well looked after. I work with a network of appraisers, inspectors and contractors who are experts on coastal construction issues. Because the tide of the market has turned and it is in the favor of the seller, it is more important now than it has been in years for coastal buyers to seek out a coastal specialist to represent their interests.
Please let me know if you have questions pertaining to the purchase process, the role of agents/brokers, and some of the common pitfalls to be aware of in this niche coastal market. Have a fantastic day!
