We’ve been warning all year that rates are set to rise.  The fed has signaled that it was ready to raise rates at their December meeting after the election.  The markets didn’t wait, and rising interest rates affecting borrowers has risen faster than people expected.  Since the election rates have risen about .6%.

Rising Interest Rates Affecting Borrowers

It’s complicated, so let’s just say the Fed sets short term rates and rates banks use to borrow from each other.  The mortgage market works off the 10 Year treasury note, and that is market driven.  The price for 10 year treasury notes has fallen, meaning the yield is going up.

Rising Interest Rates Affecting Borrowers

What does rising rates mean for the SW Florida real estate market?  We’ve mentioned ad nauseam that a 1% rise in rates robs a buyer of 11% purchasing power.  Since the election rising rates have made the average home price about $16,400 more expensive.  Unfortunately for sellers this won’t be going in their pocket. If the market would have beared $16,400 more for each home it would have already done so.  Rising rates just stole $16,400 from the seller.

The question now becomes, can the buyer afford that?  If they can’t, it will cut demand.  If the buyer was maxed out before, they will have to pay $16,400 less today for the same home they could have paid more for a few weeks ago.  The only thing that changed was interest rates.

Rising rates may spur the market to move.  It should.  Buyers who were on the fence should buy now!  We’ve been warning them and this day has finally come.  It costs buyers to wait.

We may see more sellers enter the market as well.  Sellers are getting hit at both ends.  Not only are buyers losing purchasing power to buy their home, the seller is also losing purchasing power on the next home they buy if they’re getting a mortgage.  Waiting has cost sellers, and when they realize this day is finally here more will act.  As more homes enter the market, there will be more competition amongst sellers for buyers.  It becomes a triple whammy for sellers.

Hire Experience

What can sellers do?  I wouldn’t wait for all the other sellers to figure this out.  I’d get my home on the market now before rates go higher and before listing inventory increases.  Inventory has already been increasing this past year, and it could increase.  Getting ahead of this is always better.

Hire the Top Marketer in Your Area

Secondly, I’d hire the best agent I could who advertises a lot.  Some agents have gotten by without a lot of advertising, but that all changes in a rising interest rate environment and increasing inventory. With rising interest rates affecting borrowers like it is today, time is of the essence.  You need an aggressive agent who’s been through a changing market before.  Some of the newer agents haven’t.

Call the Ellis Team 239-489-4042 and Sande or I will be happy to determine your market value and discuss your options.  Or, you can go on our website www.LeeCounyOnline.com and search the MLS or get an idea what you home might be worth with our Free online home estimator.

Rising rates isn’t all bad.  It’s a sign the economy may heat up.  Wall St is bullish on a better economy and better jobs here in the US.  I stopped in an investment house the other day and asked them their outlook.  They are bullish in 2017.

Many Realtors are bullish too.  We think we’ll see more transactions as more sellers decide to sell.  A good economy fuels more buyers, even if rising rates tempers price gains.  We could still see rising prices, or stable prices.  The jury is still out.  For the past 11 months prices have not risen a dime.

2017 will bring change.  Buyers and sellers need to know what that means for them.  Unfortunately, plan on increased borrowing costs.  Expect to see increased inventory, and more sales.  Sales have been off this year, and with increased inventory comes more opportunity.

Buyers, now is the time to talk with your Realtor and your lender.  You can call us at 239-489-4042 and we can help you with both.

Good luck and Happy House Hunting!

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Watch our December 2016 Seller’s Club Video

Recently the Ellis Team has sold a few For Sale By Owners in addition to our normal sales and it got us to thinking.  What if we could help more For Sale By Owners sell their home?  We thought about it and we came up with the Ellis Team For Sale By Owner Assisted Listing Program.

We’re creating a special website of For Sale By Owner listings.  Sellers  can still market their property on their own and if they find a buyer, great.  They also get some additional marketing by the Ellis Team and a chance to open their home to a larger audience.

For Sale By Owner Assisted Listing Program

Sometimes For Sale By Owners just want to try selling their home themselves.  They want to save the commission, and they don’t personally know a great Realtor, so why not try selling themselves first?

If I had a house to sell and didn’t know the real estate business like I do, I’d probably try to sell my home on my own too.  Who can blame an owner from trying to put the most money in their pocket from the sale of their own home?

We’ll put the For Sale By Owner in a special section of our website. This informs our database of buyers that we have other listings not in MLS that might suit the buyer.  Many buyers are leery of working with a FSBO because they feel at a disadvantage. Buyers don’t have someone guiding them through the process, writing the contract, organizing inspections, financing, etc.

All of the listings in the For Sale By Owner Assisted Listing Program offer guidance to the buyer so they can feel more comfortable purchasing one of these homes.  It also opens up the inventory to homes they might not have seen otherwise.  Most For Sale By Owners are hard to find and not well advertised.  They rely on for sale signs and inexpensive websites and social media to sell their home, so buyers could miss out on opportunities.

For Sale By Owner Assisted Listing Program

All listings in the For Sale By Owner Assisted Listing Program have agreed to work with an Ellis Team agent should we find a buyer.  This is a win/win for the seller and buyer. The owner can still attempt to sell on their own and they receive benefit of working with us to an expanded group of buyers.

Statistics show over 90% of For Sale By Owners give up and hire a Realtor.  All we ask is that if the owner gives up and later on decides to hire a Realtor, they agree to interview the Ellis Team for the job at that time.  They don’t have to hire us, just give us a shot.

The Ellis Team has brought thousands of buyers and sellers together over the years and this program just expands on that.  We can even work out a program if the seller finds the buyer we’ll help for a nominal fee.

Check out the Ellis Team For Sale By Owner Assisted Listing Program online.  We’ll be adding For Sale By Owners and information to the website in the coming weeks.  Buyers can check out these upcoming by owner listings too in case it meets their criteria.

We Find the Buyers

This new program is in addition to our full blown, cutting edge marketing system of our listings.  The Ellis Team sells homes 19.7% faster than the average agent and we sell our homes for more money.  Our marketing goes out and finds the buyer instead of waiting for the buyer to find your home.  We put more money in our seller’s pockets, and isn’t that what it’s all about?

If you’re thinking of selling, give the Ellis Team a call.  We’d love to sit down with you and interview for the job.  And if you’d like to try it yourself first, give us a call anyway.  We can be your backup plan if the home doesn’t sell.  As long as you’re interviewing Realtors, you might as well interview the best!

Feel free to search the MLS, get neighborhood market reports, and find out what your home is worth at www.LeeCountyOnline.com  Or call us at 239-489-4042.  Ask for Sande or Brett.

Good luck and Happy House Hunting!

SW Florida Real Estate Market Update December 2016

Check out Ellis Team Featured Listings

 

Related For Sale By Owner Articles

For Sale By Owner Sales at All-Time Low  Nov 2016

For Sale By Owner Pitfalls  July 2014

By the time you read this article Thanksgiving will be a distant memory as attention turns to holiday shopping, upcoming family get togethers, office parties, etc.  We thought it might be an appropriate time to give thanks in SW Florida before the holiday rush.

Give Thanks in SW Florida

Give Thanks in SW Florida

I’m thankful the election is over.  I was over it months ago really and Election Day couldn’t get here soon enough.  Now that the election is over, we can reflect on what the results might mean for our real estate market.

Interest rates are rising.  This was the case regardless of who was elected president, so we have some headwind there that doesn’t help.  However, rates are still very low and shouldn’t pose a big problem anytime soon.

We are hopeful parts of Dodd-Frank will be repealed.  This would help the financing market as onerous regulations have made lenders cautious about lending.  The finance industry was to loose before the run-up and they’ve been too tight since.

Appraisal regulations are terrible.  We’d like to see these revamped as they don’t serve the buyers or the banks well.  They’re forcing buyers to lose homes to cash buyers or put more money down when the home doesn’t appraise.  It’s a shame because if the buyer loses out because the home doesn’t appraise and a cash buyer comes in and pays what the previous buyer contracted to pay, it proves the home was really worth it.  New regulations within the last few years prevent appraisers from reaching actual value, especially on homes that are highest in the neighborhood.  Just because there are not comps at that higher price doesn’t mean home isn’t worth it.  It just means a home that size perhaps hadn’t come on the market until now.

We’re already hearing Apple and Ford may build products in the US that were previously slated to be built out of the country.  This is good news.  We need manufacturing jobs to come back to the US.  Lowering corporate income taxes raises the tax base as more companies do business here, and they hire US job seekers versus lower paying jobs somewhere else.  It’s a win-win for the US.  More jobs mean a healthier real estate market.

We’d like to see the Affordable Care Act reworked so the coverage is actually affordable.  We talk to buyers who cannot afford to purchase a home because health care costs have gone up so much.  The Affordable Care Act didn’t do much to contain costs, only premiums on those that qualify for subsidies.  This didn’t address the problem.  We need to control costs, deliver a better product, and make it affordable to more people.  It is our hope that the president and congress can work together to solve this issue.

Right now many employers will not hire full-time workers.  Some small businesses cannot afford to pay under Obama Care either, so it’s a double-whammy.  Repealing and replacing that law could fix this and allow businesses to hire full-time people, which will help the economy and real estate markets across the country.

We’re not here to argue who would have made a better president, or whether the popular vote or Electoral College is best.  Now that we have a president, our focus is on what we can do to get the economy going again.  We’ve basically had free money for the last 8 years and that didn’t help like you would think.  Change is required, and change is on the way.

We think we have the potential to kick-start this real estate market.  It will only happen if the economy takes off.  Be thankful change is coming, and let’s all hope and pray that change will kick-start this economy.

You can search our website at www.LeeCountyOnline.com for some great bargains in SW Florida.  You can also find out what your home is worth online for Free!  If you’d like to talk to us, we can be reached at 239-489-4042

Don’t forget about our Ready For a Yeti promotion.  Enter to win a Yeti cooler.  Details available on our Ellis Team Facebook Page

SW Florida Real Estate Market Update December 2016

Only 8% of recent home sales were FSBO sales which indicates for sale by owner sales at all-time low for the 2nd straight year.

For Sale By Owner Sales at All-Time Low

Most for sale by owners want to try and see if they can save the commission, and who could blame them.  Everyone wants to save money. What matters most is how much is in your pocket at closing.

The average FSBO gives up after 2-3 weeks when they get no showings or so many showings and no offers that they get tired of the process.  They don’t know who they are letting in their home and what their motivation is.  If it’s risky for real estate agents’ security, just imagine how risky it is for a sale by owner.

We know that 92% of all sales go through an agent.  Most sellers don’t realize that only 4% of buyers viewing their home are qualified to buy it.  Some don’t have the income.  Others don’t have the credit necessary to purchase.  A large percentage has locked equity, meaning they must sell something before they can purchase.  This requires an agent to solve that problem.  It is very frightening to sell and buy simultaneously and to coordinate financing on both properties and all the closing details when you don’t know what you’re doing.

Buyers and sellers have fears and all these must be met.  A for sale by owner can’t do it.  Buyers don’t trust sellers because they have fears, just like the seller does.  Somebody with knowledge and people skills must manage all this.

Quite often we get sellers who contact us telling us they’ll pay us a certain percent to sell their home.  They mistakenly believe they’ll save part of the commission doing this, essentially becoming their own listing agent.

First off, they won’t have an agent representing them.  Secondly, they won’t have an agent marketing their home.  We go out and create buyers for each of our listings.  We target buyers online by the inventory we have.  When we don’t have the sale by owner in inventory, we aren’t out creating buyers for that home.

Real estate today isn’t like the old days where you put up a sign, placed it in MLS, maybe took out a generic ad in paper, and hoped someone else would sell it.

We Target the Buyers

Reaching buyers today is more sophisticated.  We buy the data and target the buyers.  We have the ability to search for buyers based upon their income, age group, lifestyle, whether they’re likely to make a move, etc.

Let’s say we list a property in a 55+ community.  It would do no good to target 30 year olds when they can’t live there.  We can target 55+ yr old buyers.  Or perhaps we list a property with tennis courts.  We can target buyers who are interested in playing tennis.  The same is true for waterfront homes, golf course homes, gated communities, etc.

We go out and find buyers based upon our seller’s needs.  If a for sale by owner thinks they’re going to save part of the commission by offering all agents a fee to sell their home, they’ll be missing  on the prime benefit of listing with an agent.

For Sale By Owner Sales at All-Time Low

Two separate studies show for sale by owners receive 16% less than properties sold with an agent.  By giving away 16% are they really saving anything?  No, it’s costing them not to use an agent.

If you doubt us, go ahead and try it for a few weeks.  Then call us at 239-489-4042.  Or just call us upfront.  If we put a lot more money in your pocket at closing because we attract more buyers, we don’t cost you anything.  Imagine selling in an online auction.  Do you think you’ll receive more if you have 1,000 qualified buyers versus only 1?  Let us open the door to finding good qualified buyers for you.

Visit our website and search for your dream home www.LeeCountyOnline.com or find out what your property is worth.  Good luck and Happy Home Selling!

See Also:  FSBO and Discount Broker Sales at Record Lows

The Ellis Team now marketing Useppa Island Homes

The last few weeks we’ve been bringing readers up to speed on prices and where they’re headed as well as closings for 2016.  This week we decided to focus on listings.  We’ve been reporting that listing inventory rises slightly for months and here is the latest graph to illustrate that.

Listing inventory is seasonal.  For some reason, more sellers decide to list in season than other times.  I don’t know if they perceive there are more buyers here in season or perhaps they come back to SW Florida and decide to list.  For whatever reason is does go up in season which makes using the trend line a little complicated.

Listing Inventory Rises Slightly

We did add the trend line which does show a rise in inventory going forward.  Year over year numbers are up each month so this is accurate.  The real question is going to be, with slowing sales, rising rates, and stagnant home prices, what will happen in 2017?

Listing Inventory Rises Slightly

The amount of inventory in 2017 will most likely affect home prices as much as interest rates do.  We’ve seen rising prices up until this year partly because listing inventory has been so low for so many years.  As new construction and existing home inventory begins to rise, we’re seeing prices level off. We’re not sure if it’s the chicken or the egg.  Does listing inventory rise because prices stagnate or do prices stagnate because inventory is rising?

We think they go hand in hand and affect each other.  The SW Florida real estate market is totally balanced right now.  You might say it’s a perfectly healthy market.  Buyers and sellers are at an equal advantage right now.  In the lower price ranges, it’s a seller’s market and in the upper ranges it’s a buyer’s market.  The mid-market is balanced.

Buyers, sellers, and agents alike complain when the market is skewed too far in any one direction.  It is not often we can say the market is perfectly balanced, but at the end of 2016 I think we can.  Our market is like a teeter totter and it is straight right now.

As you know, it doesn’t take much to alter a teeter totter and they don’t stay straight for long.  Our market has been slowly moving from a seller’s market to balanced.  It could go either way from here.  It depends on interest rates, consumer confidence, and the economy.

We think the election results will go a long way to resolving some of this.  Interest rates will probably rise in 2017.  Consumer confidence will be swayed by the economy and confidence in the election results.

Who holds the presidency?  Who controls the Senate, and the House?  Is the election in dispute?  Is the winner under investigation and facing indictment?  We don’t know how the election will turn out.  We don’t know how the winner and loser will react.  We don’t know who will control congress.  This election season is the craziest we’ve ever seen.

All we do know is we have uncertainty.  Uncertainty may hold back interest rates for a while, but it may also hold back the economy.  We don’t control any of this.  All we can do is advise our clients and help them make the best real estate decisions for their family.

If you’re thinking of buying or selling, call the SW Florida real estate authority, the Ellis Team, 239-489-4042  or visit our MLS website.  While we may not be able to tell you who will win the election, we can advise you on your real estate decisions.  Use our website to find out how much your home is worth for Free or search the MLS.  You can also do neighborhood market reports for neighborhoods you’re interested in.

And be sure to buy some popcorn this weekend because next Tuesday will be must-see TV.  Good luck and Happy House Hunting!

Open House this Weekend

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Real estate shifts are the natural ebb and flow of the market.  The real estate market never stays constant.  It is affected by supply and demand, employment, the economy, interest rates, weather, political forces, and more.  Our world is in a constant state of shift, so why would the real estate market be any different? We’ll show you why the SW Florida real estate shift is real and it is in effect.

Nobody would expect the stock market to stay the same each day.  People know that it goes up and down, and many times it does so in the same day.

Currently the SW Florida real estate shift is on.  Last week we reported that sales prices have been flat all year.  Some prices ranges have gone up and some have gone down, and overall the market is flat.  If you didn’t read last week’s article on about SW Florida home sellers  we’d encourage you to go back and read it as the graphs show perfectly what is going on with prices.

SW Florida Real Estate Shift is On

SW Florida Real Estate Shift

Today we’d like to focus on closed sales.  As you can see from the chart, closed sales are down in Lee County versus last year.  In fact, they’re down 9.04% year over year.

We have rising inventory, declining sales, and stagnant home prices.  I’d call that a shift.  It’s nothing to worry about or blatant in the numbers, but something to be aware of going forward.

In a shifting market, marketing is more important than ever.  To get top dollar your home must compete and stand out.  It must do so in three ways.

Everyone knows if they wish to sell something it pays to have interest from more than just one party.  Imagine selling an item online.  Would you rather have 1,000 bidders or just 1 bidder for your item?  Of course, everyone would choose multiple bidders when selling.  The same is true in real estate.  You don’t necessarily need multiple bidders; however, you better expose the home to multiple parties.  Everyone would agree that 100% exposure equals top dollar.  Anything less may net you less than top dollar.

Secondly, while marketing is most important, no amount of marketing will sell an overpriced home.  We could spend a million dollars marketing a property.  If it is worth $500,000 and we price it at $1 million will it sell?  Of course not.

Thirdly, the agent you choose may be the most important factor of all.  You want an agent that will give your home the most exposure.  You want an agent with experience to know what price it should start at, and the wisdom and courage to tell you when it’s time to adjust.  Inexperienced agents may not know how to price, and they may not have the courage or confidence to tell you an adjustment is needed.

When I go to the doctor because I fear something is wrong I don’t want a doctor who will tell me what I want to hear.  Of course, I hope its good news and nothing to worry about.  However, if it isn’t I want a doctor to tell me straight-up so I can make quick decisions and rectify the bad situation.  The sooner you deal with a medical issue the less pain you may feel on the back end.  In life, the sooner you deal with issues the quicker they are resolved and the sooner you get back to living life.

The same is true in real estate.  When making a real estate move, don’t call that friend who just got their license or that family member who needs help.  You want the best, and your financial success depends on it.  Especially in a shifting market.

When financial markets shift, you’ll hear the term “Flight to quality.”  This means a movement towards safety and dependability.  In real estate, sellers move towards experienced agents who can guide them through the shifting maze.  Now is when experience counts, and your future depends on the advice, expertise, and marketing from agents who can guide you.

If you go on a swamp buggy tour, you’ll know what I mean.  You want a tour guide who’s done this a time or two and won’t tip the buggy over in alligator infested swamp water.  We’ve done this a time or two, so feel free to call us if you’d like to buy or sell in SW Florida.  Visit our website at www.LeeCountyOnline.com to see all properties in the MLS or find out what your home is worth.

Watch our SW Florida Real Estate Shift Predictions Back in February 2016

Thank goodness we’ve been busy listing and selling a lot of property lately.  The 360-degree home tours and advanced marketing we’re employing to go out and create buyers for our listings is working.  We have noticed a trend recently we thought we’d try to clear up.  SW Florida home sellers are confused when they read headlines that home prices were up 11.3% in August.  They’re interviewing agents and they aren’t hearing the higher prices they were expecting, so they’ve called us out to verify what’s really going on in the market.

SW Florida Home Sellers Confused

We decided to present the chart in a different way.  Agents have been telling sellers there’s been a shift since we reported on it back on February 16th.  Sellers aren’t seeing it though because they read the headlines.  It is true, median prices are up 11.3% over last year.  However, they are down $5,000 from last month and down $2,000 from where they were last November.

Unless home prices rise in the next few months, we’ll be looking at essentially a flat line since last November.  In other words, home prices aren’t statistically rising right now.  The rise occurred last year up until November, so when you read that home prices are up over last year, they are until we get to November.  They are actually down month over month as much as they are up which is creating the flat line.

It is possible prices could start rising again.  Perhaps after the election consumer confidence will grow.  I think everyone can agree they’re tired of the political season and just want it over with as soon as possible so we can move on with our lives.

We see the Fed raising rates at their December meeting.  Interest rates have been quietly rising the past few weeks and we see more of that in 2017.  Rising rates typically do not help home prices rise because it steals affordability from the buyer.  Basically, when rates move up 1% it robs the buyer of about 11% purchasing power.

In other words, a $400,000 buyer putting 10% down could finance $360,000.  If they lose 11% purchasing power, for the same payment they can now finance 320,400.  They lose $39,600 in purchasing power.  Their payment remains the same as if they were financing $360,000 and paying $400,000 earlier before rates went up.

This is why rising rates does not help home prices.  Rising rates can spur home buyers who have been on the fence to buy now so they will save money on payments, but it doesn’t help prices long-term.

This is one reason choosing the right Realtor to list your home will become even more important.   You need a Realtor who has sold during a rising rate environment.  I venture to guess that over 80% of agents today have not been in business long enough to experience that.

How you sell in a rising rate environment is vastly different than in a stable or lowering interest rate environment.  Marketing becomes more critical as well.

If you’re a buyer, I would seriously consider buying now.  It will cost you to wait.  Prices may still rise, just not as fast.  Or they may remain stable.  The only advantage to you might be more inventory to choose from.  The disadvantage will be that it will cost you more to buy the same house next year, simply because of rising rates.

If you’d like to search the market, check out www.LeeCountyOnline.com  You can beat out other buyers to hot new listings as our database is updated every 5 minutes directly from the MLS.

SW Florida home sellers, if you’re  considering making a move, you should call us now.  239-489-4042.  Or visit LeeCountyOnline.com and get a free computerized estimate of your home’s value.

Please call us if we can help.  Good luck and Happy Home Buying!

Our Paint the Town Red event was a success.  We had over 35 properties open in one day and produced several interested buyers for our properties.  Be on the lookout for our next open house extravaganza.

Don’t forget to enter our contest so you can win a Yeti Cooler.

Dear Ellis Team:

Dear Ellis Team - Your Real Estate Questions Answered

Q: I’ve been paying my mortgage but slipped behind on my HOA fees. I didn’t want the bank to foreclose. I was surprised to learn that my homeowner’s association filed foreclosure on me. Is this normal? Alex

A: Alex, sorry to hear about your dilemma. This however is a great question. We have been seeing more and more condo and homeowner’s associations foreclosing for non-payment. We always tell people, pay your HOA first as some of them will foreclosure faster than a bank will.

Q: My home has been on the market for 4 months and we haven’t had a single showing. Are agents lazy? How come nobody wants to show my home? I didn’t want to pay a commission in the first place and I didn’t like my agent’s price. I told her if she wanted that much we’d have to raise the price for her to get it. I guess she didn’t want it that bad! Anonymous

A: Well anonymous, where to begin? The seller sets the price and the market determines the value. If you’ve priced your home above where the market is, you may not receive any showings. Why would a Realtor deliberately show an over-priced home when they can show other homes a buyer might actually buy? Sellers often believe they can always come down but you can’t go up. This isn’t even true as we have several homes that sell above asking price. It sounds like you wanted what you wanted for the home regardless of what the market was bearing. The market doesn’t care what you want or need. The market only cares about value.I’m also concerned about 2 other things. You’re blaming your agent for your mistake. The agent isn’t to blame for you wanting more than the market will bear. I do blame your agent for taking the listing in the first place. Sometimes a home has few comparable sales to value properly, and sometimes you just have to bring it to the market and see how market responds. Your agent should be communicating with you about re-positioning your home in the marketplace. Your question doesn’t tell us anything about that. If she has, she’s doing her job. We really need more facts to answer this any better.

Q: I went on abc.com (we blanked out the actual website) and it said my home was worth $412,000. I go on every day and it changes wildly. One day it said $350,000 and another it was up to $475,000. How can the market vary that much in such a short time?

A: The site you are talking about is historically unreliable. In fact, in the fine print it used to say their data was intentionally off. I guess this made online viewers have to check back often, which increased viewership, and thus advertising rates. Some of those national sites are filled with bad data. To get a more accurate and reliable estimate, go to our site www.LeeCountyOnline.com Even then it is just a computer. For the most accurate, call us and have Sande or myself evaluate your property if you’re thinking of selling. 239-489-4042

Q: What are the qualifications to becoming an agent? Can anybody do it?

A: Just about anybody can. You must not have a felony. You do not need to be a college graduate at this time. Anybody can do it, but not everybody is the same. Anybody can play baseball, but it doesn’t mean everybody is good at it. The best practice every day, learn, take classes, and work all day at it. Real estate takes work, and for those that are prepared to out-work everybody else, you can do it. You can do real estate part-time, but you won’t be great at it. It takes years of learning about property, people and situations. There’s always a place for great people in real estate, and yet about 80% fail within a year. It’s all about you and what you’re willing to put into it.
If you have more questions, give Sande or myself a call. 239-489-4042. We love helping people.
Good luck and Happy Selling!

We hope you enjoyed our answer.  If you’d like to ask more questions, simply write Dear Ellis Team and we’ll be glad to answer your questions.

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Paint the Town Red Open Houses this weekend:  Coming Soon

Perhaps you’ve been reading about the shift in the local and national real estate market. Some experts haven’t noticed a shift while others have predicted dire results because they have noticed. The real experts are aware of the shift and realize this appears to be a minor correction as the market just got ahead of itself. Markets often chug along until one day it does get ahead of itself, both on the way up and the way down. Today we talk about how the market responds as sellers heed advice from agents.

Back in 2009 we said the market had over-corrected and was due for gains. It did. This past February we sounded the alarm and said the market may be ahead of itself, and it was. Sellers have heeded the advice of agents and are actually selling homes.

You see, homes will always sell, even in up, down, and sideways markets. It’s a matter of marketing and price, and the sellers that market properly and price properly win the selling game. Owners that fail at either of the above may not win. Sometimes the best team on the field doesn’t win the game. Sometimes the best home on the block doesn’t sell. You have to be the best today to sell today. It’s not enough to be the best 6 months ago.

Buyers judge houses on features, size, location, age, and price among others. If you’re great in all areas except price, buyers will reject your home. You’re not the best today if your home is overpriced.

Market Responds as Sellers Heed Advice

We have good news to present however. In fact, I had to double check the numbers because I didn’t believe the numbers. Month’s supply of inventory is down to 5.07 months by my numbers. Official numbers by Florida Realtors shows 4.5 months however they calculate slightly differently than we do. In any event, and by any measure, we both have inventory coming down.

Market Responds as Sellers Heed Advice

You can see by the graph that inventory levels have come down in virtually all price ranges. This is because sellers have taken their agent’s advice and reacted to the shift in the market. The sellers who have not repositioned their home in the marketplace are still on the market or their listing has expired.

Selling your home is a pretty easy math equation. mm x cp = ss Mass Marketing times Correct Pricing equals Successful Sale. If your home isn’t marketed to the entire market it may not sell. I’ve seen homes priced correctly that have not sold. We’ve come in and upped the marketing and watch them sell.

An overpriced home will not sell. No amount of marketing can cure an overpriced listing. If you’re willing to follow the formula, success will follow. If you deviate from the formula, you won’t get your desired result, so you have to ask yourself the question, “Which is most important? Selling my home or staying because I want or need too much money?”

Unfortunately, the market doesn’t care what you need, and Mick Jagger explains beautifully that you can’t always get what you want. The answer lies with you. Are you willing to price your home where the market is? Are you willing to hire the best agent to sell your home?

Owners mistakenly believe all Realtors are the same and MLS will sell the home. It doesn’t work that way. There is a lot of expertise that goes into negotiations and the best way to present a property to the market. Some Realtors don’t know these tips because they’re not experienced enough. If Realtors in the business don’t all know, how is a seller supposed to know?

You have to interview agents with experience and a track record. If you’re thinking about selling, or perhaps have tried it yourself to no avail, give us a call. We’ve got some new ways to reach buyers we think you’re going to like. Call the Ellis Team 239-489-4042 and find out what’s new and how we’re reaching today’s buyers. We think you’ll be amazed, and most importantly, on to your next home. Feel free to search the MLS at  and get an automated free estimate of your home’s value.

Good luck and Happy Selling!

Open House Saturday and Sunday 1-4 PM

waterfront home whiskey creek open houose
Whiskey Creek Open House

Open Saturday and Sunday 1-4 PM

1388 Landmark Ct

Waterfront Gulf Access

Stop by and pickup your Ellis Team Koozie and chance to win a Yeti

 

 

Are You Ready For a Yeti?

Are You Ready For a Yeti
Ready For a Yeti?

All you have to do is like our Ellis Team Facebook page and post a picture of our koozie with your favorte beverage online with the hashtags #ellisteam and #readyforayeti The most creative picture wins.  You can post online at Twitter, Instagram, Facebook, and Google +

Ready for a Yeti
Post our Ellis Team Koozie Photo Online

Stop by our open house and pickup your koozie, or stop by our office.  You can always call us at 239-489-4042 to see where we’re going o be.  Some lucky winner is going to win a Yeti 45 and it might as well be you.  Contest ends November 30, so you’ve got some time.

Suffice it to say marketing real estate has come a long way in the last decade or so.   Gone are the days when you could just put a sign out front, an ad in the paper, and upload it to MLS and expect it to sell.  Oh sure, it might sell, but what if that doesn’t work?  The Ellis Team and other top agents are finding SW Florida real estate buyers using advanced marketing techniques.

Finding SW Florida Real Estate Buyers Using Advanced Marketing Facebook Audiences
Online Audience Demographics

Sure, we still use the newspaper, signs, and the MLS.  All marketing works to a degree, and any one of them could sell the home.  We can’t just sit back and hope the buyer finds us.  We have to go out and find the buyer, and that’s exactly what we do.

Finding SW Florida Real Estate Buyers Using Advanced Marketing

Through the power of Google, Bing, Yahoo, and Facebook we’re able to lock in on the buyer and bring a home to them, instead of praying the buyer finds us.  We can search for buyers who are likely to move, who make a certain amount of money, have a certain degree of education, just entered new relationship, or have a level of equity in their current home.

Finding SW Florida Real Estate Buyers Using Advanced Marketing Facebook Behaviors
Behaviors Likely to Move
Finding SW Florida Real Estate Buyers Using Advanced Marketing Income
Online Lead Income Level Selection

 

Home Ownership Characteristics Finding SW Florida Real Estate Buyers Using Advanced Marketing
Home Ownership Characteristics

We can drill even further.  We can target doctors, people up north, and hundreds of other attributes.  Real estate is a people business.  The best agents learn a lot about their clients because they ask questions.

Today there is a database that has all this information.  When you put a sign in the yard you’re limited to just those that drive by the property, and you have no idea if they need a home or could even afford one.  When you know which people make a certain amount and are likely to move and are looking for a 2nd home in SW Florida it makes it easy.  Sure, you have to know what you’re doing and how to reach these people, but the time invested in targeting the right people more than offsets targeting the wrong people.

When we list a $1 Million property, we want to find million dollar buyers.  It does us no good to find $100,000 buyers for that Million-dollar home.  And vice versa.  When we list a $200,000 home, it doesn’t matter how many $5 million buyers we have.

We sell what we list.  Sometimes sellers will ask how many homes have you sold in his price range, and that might be the wrong question.  The best question is how will you reach qualified buyers for my home?

We’ve sold properties in our career anywhere from about $5,000 to over $15 Million.  Of course we need to price the property correctly because no amount of marketing will sell an over-priced listing.  Proper pricing isn’t enough however.  We’ve got to go out and find the buyer, we can’t expect the buyer to find us without proper marketing.

We not only have a database of buyers in all price ranges ready to make a move, we go out and look for more buyers as we list each property.  This expands our database, so it’s quite possible we already have the buyer for your home.  When new properties hit the market, our buyers are alerted each day of new listings that match their criteria.

If you’re thinking of selling and not sure how an agent will find a buyer for your home, give us a call.  239-489-4042.  Ask for Sande or Brett.  We’ll be glad to show some advanced marketing techniques we’re using to sell our listings.  It not only works, it’s kind of fun.  Feel free to use our website to search the MLS or find out what your property is worth.  www.LeeCountyOnline.com Always call the Ellis Team at Keller Williams.

 

Good Luck and Happy House Hunting!

New Listing Coming Soon

1338 Landmark Ct-Whiskey Creek Waterfront Pool Home