Inside the Mind of a Residential Appraiser and Accredited Buyer Representative in Florida

David P. Bouverat has been active in Sarasota real estate since 1972 as an agent and also a state certified residential appraiser.

In 1992, he opened a brokerage firm and went on to achieve the Accredited Buyer Representative designation, a benchmark of excellence in buyer representation. It is awarded to practitioners by the National Association of Realtors after the recipient meets specified educational and practical experience criteria. Bouverat’s company, David P. Bouverat, Inc., and website keep him in the mix of the Southwest Florida housing market.

But in the face of a slowing market with few buyers and an increasingly long list of would-be sellers, Bouverat has been forced to rethink his business model of representing only buyers. He has been accepting side assignments for sellers as well, many former buyers he represented.
Stephen Frater of the Sarasota Herald-Tribune caught up with Bouverat recently and his interview is detailed below.

~~~~~~~~~~~~~~~~~~~~~~~~

HERALD-TRIBUNE: The headline in your ad in the 2006 New Homes edition of Homes and Land of Sarasota read “I don’t sell Real Estate, I help you buy it.” Can you please explain your business model and how it has changed recently?

BOUVERAT: My approach to working with a real estate client has always been one of a consultant as opposed to a sales person. Part of my professional training as an appraiser is that of a consultant. My objective is to find the best property for my client at the best price.

HERALD-TRIBUNE: Please describe your marketing strategy to attract buyers.

BOUVERAT: I like to point out to buyers the difference between a transaction broker (one who represents both the buyer and seller in the transaction) and a single agent (one who only represents one party in the transaction, such as the buyer in this case).

Both types of agents have what Florida real estate law defines as duties to their client. A single agent has the duties of confidentiality and loyalty, whereas, the transaction broker has limited confidentiality and not loyalty. Who would you rather have represent you when buying real estate?

HERALD-TRIBUNE: Please describe your fee structure.

BOUVERAT: My compensation as a buyer’s broker is no different than that of a transaction broker. Typically, the commission on the sale of real estate listed in MLS is split between the listing agent and the selling agent.

HERALD-TRIBUNE: Is an appraisal part of the deal? If not, what is the cost of that service?

BOUVERAT: Although I am a state-certified residential real estate appraiser, I do not perform an appraisal on a property that I am involved as an agent on. To do so would be a violation of USPAP (Uniform Standards of Professional Appraisal Practice). As a real estate broker, I do discuss comparable sales data with my client and help them form their own opinion of the property’s value. USPAP does not allow appraisal fees to be contingent on a property’s value.

HERALD-TRIBUNE: Are buyers asked to commit to any agreement to have your assistance?

BOUVERAT: I do ask my clients to sign an agreement. I make a commitment to my buyers and ask them to do the same to me. The agreement allows my clients to cancel the agreement if they are not satisfied with me or have a change of plans. I am happy to say that I have never had a client cancel because of dissatisfaction.

HERALD-TRIBUNE: How large is your operation in terms of human resources?

BOUVERAT: I purposely have a small operation in order to give my full attention to clients. My team includes a full-time assistant and an associate appraiser.

HERALD-TRIBUNE: During the height of the South Florida real estate boom, how many buyers did you represent at any one time?

BOUVERAT: An average of six serious clients in various stages of the process.

HERALD-TRIBUNE: What is the average price point of your buyers for residential properties?

BOUVERAT: The average is around $600,000.

HERALD-TRIBUNE: In dollar volume, how many transactions did you close in 2003, 2004, 2005 ?

BOUVERAT: It is my policy not to disclose confidential information; however, I can tell you that the volume of buyers is down since last fall.

HERALD-TRIBUNE: How is 2006 looking so far with the explosion of listed properties?

BOUVERAT: Well, the tables have certainly turned from a seller’s market to a buyer’s market.

HERALD-TRIBUNE: Does the buyer’s market make your job more difficult?

BOUVERAT: As a buyer’s broker, the high inventory actually makes my job easier because I have options for my buyers, and there is more possibility in negotiating the price. In a seller’s market, it was more difficult because there often was little to choose from, and the price was almost never negotiable.

For a listing agent, this market is tough. It requires much more time and expense devoted to marketing a listing. As an appraiser, both the previous “seller’s” market and the current market have been difficult to work in. It was hard to support values in a rapidly appreciating market, and now it is difficult to find recent comparable sales data for an appraisal.

HERALD-TRIBUNE: Since you have focused on the buy side for so long, is this a challenge for your operation?

BOUVERAT: Taking listings in this market is challenging. I am doing it primarily because former buyer clients have asked me to help them sell their property. I think my expertise as an appraiser comes into play here. A property has to be realistically priced to sell in this market.

HERALD-TRIBUNE: Are there other “buy side” real estate agents you are aware of?

BOUVERAT: There are other buyer’s brokers in this area; however, I really don’t know what their approach will be in a market with so few buyers.