We’ve noticed a trend developing this year with more home sales in the $500k-$1 Million price range in 2013.  In fact, within the past month or so the Ellis Team has sold and closed 2 homes in this range that were previously on the market and didn’t sell before.

High End Market Heating Up in Fort Myers-Cape Coral-Estero Real Estate Markets

The first home was located in Carillon Woods and had been on the market previously with another agent.  They had several offers but just couldn’t come to any agreements.  We listed the home and raised the price a little and sold it within 20 days.

 

33 Timberland Cir Fort Myers, FL 33919 Market Heating Up in Fort Myers-Cape Coral-Estero Real Estate Markets
Carillon Woods Sold in 19 Days $565,000

 

The second home was located in Belle Meade and had also been listed with another agent.

The first home in Carillon Woods was listed at the correct price but just needed a little negotiation help.  The second home may have been priced a little high in the beginning and needed help finding where the true market was for that home.  The previous Realtor had lots of expensive brochures at the home for the buyer viewing the home but that marketing didn’t necessarily drive buyers to the home.  Even if an agent spent a million dollars marketing the home it still wouldn’t sell if it was over-priced.

8510 Belle Meade Dr Fort Myers FL 33908
Belle Meade Sold $635,000 Nov 8, 2013

 

In both events, the sellers needed guidance and market advice.  Yes, our marketing brought buyers to the table.  In the end, it was the advice and guidance we provided that closed the sale.  Neither sale was a particularly easy deal.  Both buyers were concerned about inspection items and negotiating the best deal they could.  The expertise of the agents involved, for both buyer and seller made these two transactions successfully come together.  These two deals are similar to sales across SW Florida in this price range.

Many people believe the value of a Realtor is the marketing.  Others believe it’s pricing.  Others believe it’s just handling paperwork.  It’s all those things, but it’s a lot more.  A good Realtor handles the emotions, the objections, and the road blocks that are put up as a transaction unfolds and knocks them down.  A good Realtor advises their client on how to act, how to respond, and what to do when difficulties arise.  Experience is the key! Sometimes what a client says isn’t what they mean.  Sometimes what the other side says isn’t what they’re really asking for.  An experienced agent provides the wisdom and can be the difference between listing a home and actually selling one.

Buyers in this price range shop and make sure they get a fair deal.  In fact, they’ll take a bargain if they can find it like any other buyer, but they want to make sure they’re getting a good deal.  Buyers in this range tend to be selective, and why not because they are investing a good amount of money on their home.

Sales in this price range are up 28.4% over last year.  MLS shows 624 single family home sales YTD this year in Lee County versus 486 same time last year.  We’ve definitely seen an increase in higher priced properties this year, and the past month is a perfect example.

If you’re a buyer, you can search for properties in MLS right on our website www.TopAgent.com  If you’re a seller, it pays to consult a Realtor with experience who can properly guide you from A-Z, not stop at C or D.  You don’t pocket the cash until you complete all steps.  Many sellers think steps 1-3 are good enough and they find out later on they either didn’t get the offers they wanted, or they couldn’t get it closed.  It’s usually best to find out your options upfront rather than find out later on.  Call us at 239-489-4042 and we’ll be happy to discuss your situation.

If you’d like to search the MLS, visit our website at www.Topagent.com  If you’re considering selling and would like the Ellis Team to show you what we think we can get for your home, go to www.SWFLHomevalues.com or call us at 239-489-4042  Good luck and Happy Selling!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

SW Florida real estate market continues recovery. Many would say our market is Hot, and compared to 2006-2009 it’d be pretty hard to disagree with that statement. While we are seeing some nice gains, our market is healing, which is a good thing.

SW Florida Real Estate Market Continues Recovery

A couple of things we look for are the percentage of cash vs. financing to identify the liquidity in the market as well as the percentage of traditional sales vs distressed sales. Our market has good volume now and would be higher if we had more inventory to sell.

We’ll come back to inventory in a moment. As you can see from the attached graph, traditional sales are above 70% of the total sales. Back in 2009 they were close to 20%, so that’s a big swing.

Cash sales are dropping as a percentage of total sales. Many would say that’s a bad sign, but it’s actually a good sign. Banks add money to the market. For awhile banks weren’t lending much. There is a cap on cash sales and the amount cash buyers will pay, but not so much on financing. Buyers will use leverage to purchase more, so it helps add liquidity to the market. Cash is always good, and having cash buyers is a good thing, but relying on them is a sure fire way to a stagnant market. Infusing capital into the market helps pull the market higher, and we’re seeing definite trends in financing. Banks have finally made it possible to borrow again, and that will help us continue this recovery.

I recently had a potential seller ask me why I didn’t say the market has fully recovered and that we were in full blown market mania. When I showed the seller how much his home value had increased from 2009 he was impressed, but he had refinanced his house during the boom and owed more today than it’s worth. Had he not taken money out at the height of the market he would have had equity, but since he did, he was still underwater. He chose not to sell today but we’d revisit the issue next year.

This is exactly why I say we’re still recovering. Back in 2005 we had artificial influences affecting the market, and we still do today. Today the artificial influences are the fact that some sellers still owe more than their property is worth today. If we didn’t have upside down sellers we’d have more inventory, and if we had more inventory we’d have more sales.

Short sales, foreclosures, and traditional sales in Fort Myers Cape Coral Florida real estate market

Some sellers are above water but just don’t like their equity position because it doesn’t leave them much down payment for the next home. In any event, equity positions are holding back many sellers who’d otherwise like to sell but are still trapped in their homes. This is perhaps one of the last barriers to calling this a full blown market recovery.

When the economy finally takes off, we could move closer to that point. Signs point to a recovering economy, but things like ObamaCare could stall that if companies cut back to stay afloat. We’re also hearing from small business owners who are facing large premium increases, so this cuts into their disposable income and their real estate purchasing power. Something tells me that when fully implemented, the public will turn to their congressmen and demand some changes, and they’ll make some changes to lessen the effects.

In the meantime, let’s keep this economy rolling, and keep the banks lending. We’re doing our jobs in the trenches and we’ve got this market heading in the right direction. If the banks and Washington all play nice, 2014 is going to be a great year. To search the MLS go to www.TopAgent.com You can always call us at 238-489-4042

If you’d like to search the MLS, visit our website at www.Topagent.com  If you’re considering selling and would like the Ellis Team to show you what we think we can get for your home, go to www.SWFLHomevalues.com or call us at 239-489-4042  Good luck and Happy Selling!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

Battling low appraisals.  In the past few months I’ve had agents call me from all over the country asking how we’re handling properties that sell for more than the appraisal.  We’re tied into dozens of private Realtor discussion boards, Realtor networks, and organizations and this topic has been popping up frequently, so we thought we’d take a moment to help those in SW Florida with some tips we’ve learned over the years to combat this problem.

Battling Low Appraisals

Let’s identify the problem.  Appraisers are looking in the past for data that supports today’s value, but the problem in a rising market is that the data in the past is lower by definition because prices have been rising.  When a market is on the move appraisers can make a time value adjustment but it seems they’re quicker to make adjustments in a declining market than they are in a rising market.

Here are some tips for agents to get appraisals up to market value:

  1. Once property goes pending make showings by appt only.  When appraiser calls meet them out there with comparables you used to value the property.  Appraisers have a difficult job.  They’re underpaid and expected to turn these around within a day or two.  If you have legitimate information that may help them it is usually welcomed.  If you go in with an attitude and trying to persuade them to come in with a value just because you need a sale at a certain price it won’t work.  Appraisers legitimately want to get it right; they just need facts that fall within accepted guidelines to backup the value they issue.
  2. If the loan was placed with a mortgage broker and not a direct lender and you feel the appraisal is bad, the mortgage broker can request an appraisal from a separate appraisal management company if the lender they’re brokering it to accepts from more than one management company.
  3. Since HVCC (Home Valuation Code of Conduct) went into effect May 1, 2009 lenders can no longer work directly with appraisers.  This is why agents may only get one chance to talk to the appraiser at the time they inspect the home.
  4. FHA appraisals are good for 6 months, so once it’s completed you’re pretty much stuck with that value.  You can dispute a FHA appraisal and provide documentation and it can be amended, but this is not guaranteed.
  5. The seller can pre-pay the mortgage insurance which might eliminate the need for the property to appraise
  6. If an out of town appraiser calls with an order to appraise the home, don’t let them in.  Call the lender and tell them you want an in-town lender and to re-order with another appraiser.  Over the years out of town appraisers unfamiliar with the local market have wrecked many deals.

 

Remember one thing about the new HVCC.  They have cut what they pay the appraisers and shortened the time the need results.  When you call an appraisal management company to ask for business the typical question is what is your cheapest price and fastest turnaround.  This isn’t always conducive to an appropriate value on the home.  Perhaps one day somebody in authority will re-work this process as it can hold back the real estate market.  Thank Goodness we have cash deals bolstering the market.

If you’d like to search the MLS, visit our website at www.Topagent.com  If you’re considering selling and would like the Ellis Team to show you what we think we can get for your home, go to www.SWFLHomevalues.com or call us at 239-489-4042  Good luck and Happy Selling!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page