Did you know that the PropertyKey’s IMAPP platform now features “Code Violations” details that can be found in the IMAPP property profiles? This information can be valuable to building your knowledge of a property, help with your prospecting and marketing campaigns, prevent closing delays, and more. The importance of code violation information can be valuable for several reasons.
RISK ASSESSMENT
Liability Awareness: Knowing code violations helps real estate agents assess the potential liabilities of the property. For instance, unpermitted work or safety issues may pose risks that scare off buyers or require costly fixes.
Marketability: Properties with significant code violations can be more challenging to sell, as they might deter buyers concerned about additional costs or legal implications. This information can help agents better gauge the property’s marketability.
TIME MANGAGEMENT/PRODUCTIVITY
Closing Delays: Code violations can cause delays in the closing process. For example, lenders might require that violations be resolved before approving a loan. Being aware of these issues early on helps agents manage timelines more effectively.
Prioritization: If the violations are severe or extensive, an agent may prioritize other properties or allocate additional resources to deal with the problematic property.
TRANSPARENCY AND TRUST
Building Trust with Clients: Providing potential buyers with information about code violations can build trust, showing that the agent is transparent and looking out for their best interests.
Avoiding Future Disputes: Disclosing code violations early in the buying and selling process can prevent future disputes between the buyer and seller, avoiding issues that might arise during inspections or after closing.
INVESTMENT POTENTIAL
Opportunities for Investors: Some investors actively seek properties with code violations because they may be able to be purchased at a discount. Agents can market such properties to investors specializing in fixing, flipping, or renovating properties for rental income.
Upside Potential: By resolving code violations, there may be potential to increase the property’s value significantly or reduce the prices for those buyers looking for a project.
NEGOTIATION POWER
Price Adjustments: A property with existing code violations can be used as a bargaining tool to negotiate a lower purchase price. The buyer might ask for a discount to cover the costs of addressing the violations.
Seller Concessions: The seller might be more willing to offer concessions, such as covering closing costs or performing repairs, to close the deal.
REGULATORY COMPLIANCE
Guiding Clients: Agents can help their clients navigate the process of resolving code violations, including working with contractors, inspectors, and local government officials. This can be a valuable service for clients unfamiliar with property ownership’s legal or construction aspects.
Overall, code violation information is an essential factor that can influence a property’s pricing, marketability, and transaction process, making it a valuable asset for a real estate agent. PropertyKey’s IMAPP platform is featured in the tools section offered by Florida MLS. Access IMAPP by going to your MLS Dashboard, clicking on the IMAPP icon, and accessing the information that helps give you the competitive edge to build your book of business and close more deals.
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