Hot Market Opportunities – Reunion Villas for Sale

Learn How to Make a Great Investment in a Reunion Villa

At Investments In Sarasota we are continually working behind the scenes to bring our readers the best possible information and opportunities as we identify them. We are constantly communicating with our network of exceptional Realtors, and traveling across the state to find the best Florida property investment opportunities to share.

Recently, we’ve been hearing a lot from our respected colleagues about Reunion, a master planned community in Kissimmee, and we headed over there to check it out. We were really impressed with the resort, it has all that our international buyers are typically looking for, and the potential to tick a lot of buyers’ boxes. Watch our video below to learn more about the best way to invest in Reunion villas for sale.

What Reunion Offers in Terms of Holiday Lifestyle

Reunion is set up on over 2200 acres, they are expected to have roughly 6000 residential units, and 1500 hotel rooms. The resort also boasts three golf courses — designed by none other than golfing legends Arnold Palmer and Jack Nicklaus — its own water park, and award-winning tennis and spa facilities.

For investors, the best part about Reunion’s location is that it’s within 15 minutes of Disney World and other attractions which draw 19 million visitors annually, and 30 minutes from Orlando International Airport.

An important consideration when looking at buying a house in Reunion is that the community offers the opportunity to have short term rentals — which is critical for those looking to make cash flow returns. It’s worth noting that in some districts, such as Orange County in Orlando, short term rentals aren’t allowed, so Kissimmee’s flexible short term rental market is a major plus point since short term rentals offer the greatest cash flow. Overall, we think Reunion’s location, facilities, lifestyle, property values and return rates make it an excellent investment.

The Opportunity – What are Customers Looking For?

Typically most holiday makers are looking to rent 4-5 bedroom homes with at least 2-3 bathrooms so that most of the guests in each bedroom get their own private bathroom. They also want a property with its own private pool. According to our colleague in Reunion who is an excellent rental manager, there are currently properties being managed/rented that are offering up to a 10% return.

To achieve this, single-family homes should be purchased for about £230,000 or less, and rented out weekly. With about 35 weeks rented at the current market rates, it will offer about 10% per year return (£23,000) — and that leaves around 17 weeks open for friends and family to enjoy the home.

We think this is a great balance for most of our clients between making healthy returns, and really getting the personal benefit of a Florida holiday villa. Want to earn even more return? Raise the rents and use it less for personal use.

We always add the caveat that in any investment property it can take some time to build up presence/awareness on the market and thus income stream, so just be aware while cash flow returns can be steady, they’re not always instant. And returns may fluctuate from year-to-year depending on how much you need to invest for capital improvements to the property. As always, how well your property performs will come back to how good the marketing and reviews are, and how well you get the message out and attract customers.

Considering New Construction in Sarasota?

Fueled by demand for the Sarasota lifestyle, there has been a surge of builders and developers bringing new homes and condominiums to the market here. In addition, the healthy economy and recovering real estate market are other factors supporting the growing number of new houses for sale in Sarasota.

buying-off-plan-florida

New homes are an attractive choice. Designed for the modern lifestyle, often featuring the latest innovations and gadgets, all wrapped up in a shiny clean interior. But when considering a new build, while you may be dazzled by the flashy brochures listing a multitude of amenities and features it would be hard not to like, it’s important to remember that there are other factors in play. The amazing simulation of the view from the master bedroom balcony is not necessarily the most important!

What is important is to ask if all this great marketing is just smoke and mirrors? Or can you trust developers to deliver on their promises? The answer is both yes, and no.

couple embracing

As Always, Make Sure You’re Protected First and Foremost

A new build contract usually has significant differences to a regular residential contact. Most standard residential real estate contracts in Florida are designed to protect the interests of both buyer and seller. The contracts used by most developers and builders are designed specifically to protect their interests.

This does not mean you have to accept the first contract presented to you, however. There is plenty of room for negotiation and you can change the contract to one more balanced in your favor. This is where your Realtor comes in.

We believe that it is essential to have an experienced Realtor beside you when signing any new build contract. The developer actually bears the cost of the Realtor — you won’t have to pay anything — and when it comes to ensuring you get a fair deal, you can’t afford not to use one.

In fact, in our experience, using a Realtor not only costs you nothing, in fact it can save you money. Having an experienced Realtor negotiate for you means you will get the benefit of their expertise in securing discounts, or upgraded features and fittings for the same money — ensuring you get better value. And their experience also often means they can negotiate the price down on your behalf, based on their knowledge of the market and the position of the developer.

As a buyer looking for new construction in Sarasota it’s likely that you will be looking at all available developments on the market in your chosen area. Your Realtor should go above and beyond to help you compare specs, to make sure you are comparing like for like at different price points and should help guide you as to which would suit your lifestyle and needs.

3 key things you need to know before buying a new build in Sarasota

1) You have a right to negotiate the contract

Whilst developers will always try to hurry you along, you need to ensure you understand everything you are signing and have requested changes where necessary.

There are laws in Florida that protect the buyer’s right to have enough time to review and negotiate contracts, without losing any deposit paid. There are also laws covering disclosures that must be made by the developers.

2) You can negotiate on a lot more than you think!

You might be surprised at how much room there is for negotiation in the following areas:

The amount of deposit paid
The schedule for subsequent payments
How and when any changes are made during the build process
Finishing and upgrades -it may be more cost-effective to handle any custom finishes yourself
How the snagging list will be handled.

3) Just Because it’s New Doesn’t Mean it’s Fault Free: Get an Inspection

New build houses are only checked to locally inspected building codes. A home inspector will complete a thorough inspection report which will form the basis of the snagging list. Much better to find out the hot tap isn’t working or that the kitchen door is sticking before you move in, and get it sorted from their pocket rather than yours.

An inspection gives the builder or developer time to remedy the fault, and the report will serve as a useful tool to ensure the developer meets all their responsibilities under any warranty. Inspectors can also come out at various stages of the build to inspect the foundations, framework, etc.

Don’t Forget – Choose the Best Realtor you Can to Facilitate the Process

An experienced Realtor will guide you through the contract negotiations, and help you find other good professionals, such as building inspectors, pest inspectors, and appraisers when you need them. It’s easy to get dazzled by the flashy models and presentations, so having a good Realtor by your side when looking at new houses for sale in Sarasota will ensure that you make sound decisions and get the best value you can for your investment.

To schedule a free 20 minute video conference with a new construction specialist, just select a day that fits you in the sidebar.

Unique Miami Beach Condo Opportunity

Miami Beach is one of the most desirable locations in the greater Miami area, offering its 10 million visitors a year great beach and water lifestyle, as well as vibrant nightlife, a few minutes from downtown Miami and less than half an hour from Miami International Airport.

We are constantly on the lookout for excellent investments for our readers, and occasionally like to highlight exceptional properties that we believe would be a wonderful lifestyle and financial investment. Recently our team member in Miami alerted us to this unique condo development and we went to visit to assess its potential. We believe due to its location, sensitive development, high spec interior, and classic Art Deco charm, this is truly an exceptional investment opportunity.

Watch Lee’s video below to see take a look at the condo, neighborhood and characteristics which make it so special.

This brand-new development of renovated one-bedroom flats is in a great section of South Beach. With an enviable position, and slick interior detailing, this is a highly desirable Miami Beach condo for sale, offering a great investment opportunity. Comfortably sleeping four people, the finish on these flats is really excellent.

Priced around £275,000 (depending on floor plan) it is a comfortable price point both for someone looking for a personal pied-à-terre or an investment property. Residential properties that allow weekly rentals offer the highest potential return compared to monthly or annual rentals, and this is an excellent place to buy to let weekly.

Miami Beach condo for sale on a great stretch of beach

An excellent location minutes from the beach

Nearly 10 million people visit Miami Beach every year, it is the number two gateway in the United States for international travelers and is in the top three destinations searched by international buyers on Realtor.com.

In this location, you are close to the three biggest attractions on South Beach, a 10-minute walk to South Beach itself, a five-minute walk to restaurants and coffee shops, and a 20-minute walk to Lincoln Road – one of Miami’s premier shopping destinations.

Miami Beach is the most popular place to stay in Miami and outnumbers the next closest area by more than double. It’s these numbers that show both the popularity and investment potential of this location.

What Could I Be Making with This Property?

One potential scenario would be using the property 15 to 20 weeks a year yourself while renting it out the other 30-25 weeks per year. Rented by the week like this it may be possible to achieve an estimated annual return of about £27,000, which is around 8%.

Buying a Florida Vacation Property for Investment

Florida’s lifestyle is, quite simply, exceptional – with 300 days of sunshine a year, some of the best beaches in the US, crystal clear warm waters, and spectacular natural flora and fauna. It is also one of the best investments you can make; not only providing you access to the vacation lifestyle but giving you solid financial returns on top.

Did you know Florida holiday homes can offer as much as 7-10% cash flow returns while keeping 17 weeks a year free for family and friends? The key to this type of opportunity is to invest in a place that allows for short term rental periods and has strong demand due to great visitor traffic.

For example, if you are drawn to the attractions of the Orlando area, you could own a property that would allow your friends and family several weeks of vacation time per year, and have a management company rent it out for you the rest of the year. We just reviewed an opportunity in a Kissimmee resort complex, for example, that allows buyers a 4-5 bedroom house with a private pool for $350,000.

This property was set to return around $24,000 cash flow — renting 35 weeks of the year. And all within 15 minutes of the famous theme parks that draw millions of visitors each year. It’s worth remembering that in most areas as the market recovers, properties are also appreciating steadily, so you conservatively stand to make 3-4% capital appreciation on top of your cash flow return too.

Our Tips to Choosing a Vacation Home as Investment in Florida:

1) Location, Location, Location

When you’re considering to buy a Florida vacation property as an investment, the location of your property is the most important factor which will determine both the long-term financial potential of your property purchase, as well as your personal enjoyment when using the property. In other words, it is first critical that you choose a place that you really enjoy going to. If that is a beach town, we suggest you go for the best you can possibly afford in terms of proximity to the beach and it will pay off long-term through better occupancy rates, long term appreciation, and your own personal vacation lifestyle. If it’s an inland resort town, make sure the location is a good one for proximity to the major attractions, and in an area that has proven good rental demand. Desirable commands a premium in rental rates.

2) Choose an excellent Realtor

Your Realtor will perhaps be the most important decision you make, other than the home itself. In the U.S., Realtors are compensated from the proceeds of the seller, so it doesn’t cost buyers to have an agent to work for them. However, if that person has the right know-how and experience, they will make sure you have the best protection, information, and outcome.

So, for us, hiring an excellent Realtor is a no-brainer. The right Realtor will help you find your ideal property and do everything in their professional power to get the deal done once you’ve found it. Their expertise, experience, and efficiency will likely define your experience of buying a Florida vacation home.

For example, their knowledge of the micro-markets, rental incomes, and market costs within your chosen area is critical to your decision-making process. Additionally, their advice on how to proceed in every stage of the process, skills in negotiating to your advantage, and responsibility to steward the entire process until the deal closes, are all factors in optimizing a positive buying experience here in Florida.

Finding people you trust is critical to the process. Do your due diligence on them thoroughly, and then follow their advice or guidance. Once you find people you trust, you have to be prepared to defer to their expertise and experience. You need to place your trust in the experts you hire to get the best outcome.

3) Do Your Research

Knowledge of the market, rental markets, communities, and sales data can make all the difference between an investment that works, and one that doesn’t. It is critical that your Realtor is well versed in the areas and opportunities available to you and has all the data on hand to help you make the best choice. They can help you learn about the differences between different zip codes, communities, and even streets.

When you begin looking for holiday homes in Florida to buy you should have this knowledge to hand, so you know if what you’re looking at is over-priced, under-valued, or un-rentable. Your Realtor should provide you with a Competitive Market Analysis (CMA) to make sure you understand the market. You should also be aware of the most desirable properties for rental in the area – typically, we’ve found 4-5 bedroom homes, with private pools and at least 3 baths are at the top of vacationers’ wish lists.

However, one caveat: always remember to trust your gut, too. Even if all the numbers add up if you just feel something’s not right about a home, trust that instinct. No matter the deal or price incentive offered, if it isn’t right for you, it isn’t right. Period!

4) Spend a Bit Up Front for Protection

In our eyes, it’s better to spend a bit of money up front to make sure you are protected in all aspects according to your unique financial situation. A few hundred dollars with a tax accountant and financial adviser you trust — who is impartial — can mean that you know your exact financial, tax, and estate situation, and exactly what you can afford and may be liable for.

We say that with the additional note that Florida has some very favorable income tax laws, and good estate planning can mean your estate remains intact down the road.

Schedule a free 20 minute video conference with Lee to talk about real estate investment opportunities. Just select a day that fits you on the sidebar.

Market Report From Jupiter Florida

On one of our recent many explorations of the state, we decided to visit Jupiter, Florida. We are really passionate about looking beyond the traditional hotspots in order to find the best lifestyle opportunities for our clients. Often, going slightly further afield can help our international buyers find the exceptional lifestyle they’ve been searching for, at a better price point or with a better value proposition.

Jupiter Florida is a good example of this. Located slightly further away from the famous splendor of West Palm Beach, Jupiter is still only 17 miles from West Palm Beach International Airport and offers a great lifestyle, wonderful amenities, and beach living at a lower price point than it’s famous sister.

Indeed, buyers in Jupiter are spoiled for choice when choosing their desired lifestyle. The surrounding area has beaches, hiking trails, nature preserves, and all manner of water-sports including kayaking and paddle-boarding. While nature lovers are a stone’s throw from some spectacular wildlife and flora and fauna, a recent new development, Harbourside Place, provides the high-end shopping, dining, accommodation, and entertaining visitors to the West Palm Beach area demand.

Harbourside Place: Jupiter Florida’s Luxury Downtown Experience

We visited Harbourside Place to get a sense of what’s on offer and were really impressed. Arriving on a Sunday, we were able to enjoy the farmer’s market, with fresh and abundant produce from south Florida farms.

Harbourside Place Group Yoga Event

The development includes waterfront hotels, retail, office and restaurant space, and a marina. There is also a public amphitheater and connection to Riverwalk, a 2.5-mile pathway from Jupiter Inlet to Ocean Way. The amphitheater and outdoor spaces play host to a number of events, designed to make Harbourside the go-to gathering place in Jupiter. Markets, live music, play days, free yoga, and Tai Chi classes are just a few of the regular happenings.

The Harbourside extension offers runners, cyclists, and walkers opportunities to rest and enjoy the beautiful waterfront views. Further features of the Riverwalk extension include a new public access dock, several drinking fountains (including dog water fountains), an abundance of landscaping, as well as nature and wildlife viewing opportunities.

For those who enjoy the boating lifestyle in Florida, the new public dock is designed to give visiting boaters direct access to the Riverwalk, while an adjacent dock has slips for residents and holidaymakers to use.

Eb-5 Investor Visas in Jupiter Florida

We were particularly interested in Harbourside as it’s a great example of the benefits of foreign investment in Florida. This stunning waterfront park has been created through foreign investment and has created at least 2000 new jobs so far.

The developer of Harbourside won federal approval five years ago to develop Harbourside as an EB-5 regional center. Using the EB-5 investor visa program, about 200 foreign residents invested $500,000 each. This raised $100 million of the $150 million project. About 65 percent of the investors are from China. The other investors are from countries such as South Korea, Taiwan, Russia, Brazil, Sweden, Italy, France, and England.

For more information about how investment in projects like Harbourside Place, Jupiter Florida can gain you a visa and lead to permanent citizenship in the US, check out our article on The EB-5 Investor Visa.

The Property Market in Jupiter Florida

There is a wide variety of property available in Jupiter, and many variations in spec, location, and price points. To give a very general indication: a 1 bedroom condo a short walk from the beach in a pool complex will set you back around $180,000. A higher spec sea view 2 bedroom condo will cost in the region of $350,000.

Moving inland, away from the ocean, $830,000 buys an expansive luxury 3 bedroom home with lakeside views, while a more modest $400,000 will buy you a charming 2 bedroom golf course home. At the very top of the market? Inland for around $9 million you can expect a spectacular 6 bedroom home with a 2-3 acre private enclave and direct access to the Intracoastal, or for between $3-6 million a 4 to 6 bedroom home on a smaller lot with ocean views, or direct beach access.

EB-5 Investor Visa

Many global buyers looking to move their families to the U.S are taking the route of the EB-5 Investment Visa. The program allows foreign investors, their spouses, and children under 21 to obtain “Green Card” status through investing money in projects in the United States. This is one of the many ways it is possible for international buyers to come to the US, please see our article Do I need a Visa to Buy Property in the US, to see which others might be right for you.

EB-5 Investor visa requirements

1. Make an investment of at least $900,000 in a Targeted Employment Area (TEA)
2. Provide detailed evidence showing that the money invested was legitimately earned
3. The investment must cause the creation of 10 new jobs in the U.S.

The Green Card Process

immigration stamp in passport via investor visa
EB-5 investors meeting the requirements can apply to obtain a temporary two years conditional Green Card. At the end of the two-year conditional period, investors must file a second application with USCIS to prove that they remain invested in their project and that their investment actually created the 10 new jobs required. Once you have held a Green Card for ten years and fulfilled all the necessary tax requirements, you are eligible to apply for citizenship. The program has a total of 10,000 EB-5 visas available each year and no waiting lists exist at present.

Most EB-5 Investors do so through Immigrant Investor Regional Centers. There are currently 676 regional centers listed across the US, with 72 entries for Florida. Regional Centers have been approved by USCIS (US citizenship and immigration services). But an approved listing with USCIS does not mean that the investment is sound, so always seek professional advice when making any investment decisions.

For an example of an EB-5 funded development, see our article on Harbourside Place in Jupiter, Florida.

So if you are looking to invest from $900,000 upwards and work towards a permanent life in the US, an EB-5 Investor Visa could be a great choice. If you are just looking to invest in a holiday rental or to make an initial visit then check out our article on the Visa Waiver Program.

Schedule a free 20 minute video conference with Investments In Sarasota to answer any of your questions about the Sarasota real estate market in the sidebar.

Why Florida Has 3 of the World’s Top 5 Property Hotspots for British Buyers

There’s no doubt Florida has always been a popular choice for British holidaymakers in search of a break during the grim winter months. But recently there has been a surge of buyers from the UK investing in holiday properties in the sunshine state too, and some in unexpected locations. Savvy British purchasers are not only lapping up the white sands, crystal blue waters, and delights of Disney, but with the strong pound, they are grabbing some incredible properties – offering far superior lifestyle propositions to anything available for the same money in the UK, and with excellent rental and capital returns as well.

British buyers looking for houses to buy in Florida have always favored the traditional tourist mecca of Orlando, which sees 62 million visitors a year keen to enjoy its world-class sports, music and convention venues, and proximity to Disney World and Universal Studios. So Orlando’s appearance at number five on Rightmove.co.uk’s list of the most popular investment destinations worldwide for UK buyers, is perhaps not that surprising. However, recent statistics show that UK buyers in their droves are branching out into other lesser-known communities, and the appearance of one of these, Davenport, at third on the worldwide list is perhaps unexpected.

British Buyers Thinking Outside the Box

What’s drawing UK property hunters to look further afield? Lower price points are the main game-changer. The value our clients are seeing in the communities outside Orlando are pretty incredible when compared with opportunities in the UK. Typically, in a community such Reunion in Kissimmee a chi-chi community with its own golf clubs, water parks and country clubs, lying 15 minutes away from the theme parks — a 4 to 5 bedroom house will set you back around £230,000.

Some of our clients have seen 8 percent returns, occasionally as high as 10 percent, which is £23,000 in your pocket, plus capital appreciation while leaving 17 weeks free for friends and family to use the house. And we are pretty sure there are no property investments in the UK that offer 300 days of sunshine a year!

golf course community in florida

What Can I Get in Davenport Florida?

So how did the little-known (at least on this side of the pond) town Davenport, Florida come in as the third most popular investment destination in the world for Brits? Its status on the global list is perhaps surprising when you look at its stature, with just under 2000 residents. But Davenport is a good example of newer communities offering British buyers exactly what they’re looking for: sun, swim, and rental returns, at a great price, not too far from Orlando and its international airport.

In Davenport itself, buyers who are prepared to drive the extra 5 to 10 minutes to the theme parks can get a decent 4 bedroom home in Calabay with a pool for around £150,000, and expect rental returns of around 8% and capital appreciation of 3-4%. All the while enjoying an enviable holiday home and lifestyle.

By comparison, properties in Orlando proper may often be prohibitive of short-term rentals — something which must be the main focus for UK buyers when looking to make a good return in a quick and hands-off manner.

Repossessed Properties Now Thin on the Ground

Rightmove also stated that UK buyers are focused on bank repossessed properties being sold off cheap — and we also find this to be the case, although we feel this is not a good strategy in the present climate. While this was a popular way for Brits to get properties with extreme discounts a few years ago, this section of the market has virtually dried up as the economy has improved.

To give an example, in Calabay, which has 26 properties for sale as we speak, only 3 are “distressed properties” (as they are called in the American system). And typically, as the market has steadily improved, distressed sales are not offering the headline-worthy 40% discounts they once might have been.

It is also worth noting that the discount you do get on a distressed property sale is often negated by the amount of work needed to bring the property up to rentable standard. This should not deter British buyers though, as their pounds go a hell of lot further in lifestyle and financial returns in the main non-distressed market than they do on their booming home turf.

According to most indicators, time is of the essence when it comes to securing great-value houses in Florida to buy, as the market is rising. The great opportunities available now simply won’t be as attractively priced further down the line. Our final word is that if you think year-round sun, cash flow returns, and incredible lifestyle might be up your street now is the time to act.

REMEMBER THE TOP 5 REASONS TO BUY IN FLORIDA

Lifestyle: 300 days per year of sunshine – crystal clear tropical waters and white sand beaches
Financial: Price points are lower than the UK and rental returns are excellent, also with plenty of potential for capital appreciation
Security: Your home is backed by a cast-iron legal guarantee of ownership and you are protected by a transparent legal system
Stability: Dollar investments are one of the safest and most secure in the world
Ease: A common language, and transparent and smooth buying process makes purchasing a Florida property a dream compared to the rest of the world.

New UK Pension Reforms Help You Retire to Florida

New rules governing pensions in the UK mean that the Florida lifestyle could now become accessible for many more people looking to retire to Florida. Since April this year, UK retirees are able to choose from a range of flexible options, including taking out a number of tax-free lump sums or drawing their whole pension in one go.

Lifestyle and Financial Returns if You Retire to Florida

Investing your pension into Florida property could bring you good returns – our article Why Florida Has 3 of the World’s Top 5 Property Hotspots for British Buyers details how some investors have seen 8-10 percent returns each year on holiday letting — plus capital appreciation — whilst having 17 weeks of the year to use the house for themselves. There are huge benefits to this kind of investment, not only the returns but having a holiday home which allows you to escape the winter once you have the flexibility of retirement.

Some of our featured communities such as Davenport and Reunion offer great deals to retirement investors from the UK we believe. These communities have the plus points which make them desirable rentals – proximity to Disney World, Orlando International Airport, and wonderful facilities including golf courses, tennis courts, water parks, and country clubs. Depending on your circumstances, you can let out your property as little or as much as you like, and decide how often you and your family and friends want to enjoy the Florida lifestyle.

Health & Well Being: Owning a Retirement Home in Florida

Retiring to sunnier climes has always been a popular choice for UK pensioners, as the health and well-being aspects of living in the sunshine state are second-to-none. The warm weather, coupled with the numerous beaches, natural parks, and leisure opportunities means you can easily stay active and the abundance of fresh fruit, vegetables, and seafood available means staying healthy is arguably easier than in a cold English winter too. And there are many travel insurance companies which will give you good rates of cover.

Fair and Flexible Pension Laws for UK Retirees

Drawing a lump sum out of your pension isn’t the only way to retire to Florida – the UK and US have a reciprocal agreement meaning that you can still draw your UK state pension whilst living in Florida and have it rise in line with the cost of living as if you were in the UK. Many other countries allow you to draw your pension but ‘freeze’ it at the rate it was first paid. You can find out more about this from the International Pension Center.

Of course, when considering making any investments overseas, or making any changes to your pension, it is important you seek professional advice and do what is best for your circumstances. The UK has a number of advice services such as Pension Wise.

In addition, we always recommend using the services of a good Realtor to help make informed decisions and guide you through the buying process. There have been some property investment scams profiled recently in the media, all completely avoidable if you use a local, experienced Realtor, which won’t cost you anything. Check out our article here to find out why.

What’s the Difference Between a Realtor, a Real Estate Agent, and a Broker?

We’ve emphasized many times the need to find a Realtor in Sarasota who you can trust to guide you through the real estate buying process. But one of the first questions we are often asked is: what’s the difference between a Realtor, a real estate agent, and a broker?

We’re aware that a lot of other countries in the world don’t necessarily have these distinctions, so we provide a guide to our clients to help them choose the type of professional they need to represent them. You can also read more in-depth information on this topic in our book Your Guide to Florida Property Investment for Global Buyers.

1) Realtor

This term is trademarked by the National Association of Realtors (NAR). This means that only real estate agents registered with NAR are allowed to call themselves Realtors. And only Realtors have access to the MLS, have signed up to the association’s code of ethics, and participate in regular training and continuing education.

The majority of real estate agents in Florida are signed up to the National Association of Realtors. If you find an agent you like who isn’t signed up, we would advise asking them why they are not. Those who are designated Realtors will have access to a wealth of information, support networks, and listings, which those who are not signed up do not.

To become a member of the NAR, you need to join your local real estate board or association. New NAR members must take an online course on the ethics code, and pass an exam. Current members are required to take an online ethics refresher course every four years and adhere to strict standards of practice.

The official ethics code is revised yearly to reflect the latest issues in real estate law and practice, and its core message is to “treat all parties honestly.” We think you’ll agree that this extra training and code of ethics is a major differentiator, and we’d always advise you to choose a Realtor over a real estate agent for this reason.

2)Real Estate Agent

This is a licensed real estate professional who has passed their real estate exam. Their job description is to assist and advise buyers and sellers in marketing and purchasing a property. If they are solely a licensed real estate agent and not a designated Realtor, this person has no access to the MLS, and thus has no more access to information than you do through the internet sources. Since the MLS is the most definitive and comprehensive source of real estate data, this is a big shortcoming in our opinion.

Neither real estate agents nor actual Realtors can accept remuneration in a property deal, i.e., handle the cash, for this, they need to be a licensed broker. Real estate agents facilitate deals on behalf of a broker. Therefore, agents can only sell a property if they work for a real estate broker or brokerage.

Agents cannot list properties for sale, only assist and advise in the buying and marketing of them. An agent’s job includes finding properties, helping to arrange inspections, structuring contracts, and negotiating for your interests, so the agent needs to be experienced and knowledgeable in all these areas.

3) Real Estate Broker

A broker is a licensed professional who is qualified to handle all the elements already discussed above, as well as the additional financial part of real estate transactions. The broker is a real estate agent (in other words also assists in selling and marketing) that has had more formal education and higher-level licensing. Real estate agents and Realtors must work under a broker’s umbrella, and that broker takes legal responsibility for any action by the agent.

Any mistakes or illegality on the agent’s part is the legal responsibility of the broker. Brokers usually earn significantly more money than agents and very often are their own bosses with agents working under them. But also have much more legal liability and responsibility. Again, it is important to articulate here that while all brokers must have their real estate license, they may not necessarily be a realtor. If you choose to work with a broker be sure they are also a Realtor.

Schedule a free 20 minute Sarasota real estate orientation by choosing a date that fits you on the sidebar.