Category Archives: Cape Coral

Cape Coral Florida news and information.

Appraisals an Issue Once Again

Posted on by

Real estate agents have been complaining that appraisers have been under-valuing property again. Recently the National Association of Realtors listed the Cape Coral – Fort Myers real estate market as the #3 fastest rising home price markets in the country. Appraisals an Issue Once Again!

Appraisals an Issue Once Again

Appraisals are one person’s opinion of value based upon recent sold data.  The problem is in an upward rising market, past sales are yesterday’s news and today’s values are higher then a few months ago.

In a declining market appraisers are quick to make a time value adjustment as sales from 3-4 months ago would be worth more than today’s market.  Appraisers aren’t as quick in a rising market if you ask many real estate agents, and therein lay the problem.

Buyers and sellers quite often sweat out the appraisal which unfortunately doesn’t always occur right after the contract.  Many sellers are requiring the appraisal number to come in within 15 days of contract acceptance to remove this obstacle.

Typically a buyer gets pre-qualified for a loan and then goes out shopping for a home.  With inventory so limited in SW Florida it’s getting hard to find suitable homes in a buyer’s price range, and when you do find a home for the buyer the buyer isn’t holding all the cards.  The sellers are pretty much able to dictate certain terms as there are several buyers looking at the limited inventory in some price ranges.

The banks usually order the appraisal from an appraisal management company who hires the appraiser.  The management company serves as a middle man to keep the lender from influencing values.  A problem is if the appraiser is not local or is unfamiliar with the area, or simply chooses bad comparables, there isn’t a good way to fix a bad appraisal.  The bank is typically stuck with that number, so the buyer is stuck, unless they’re willing to switch lenders.

We work with one local lender who has access to 3 appraisal management companies, so if we get a bad appraisal from one company they can seek another opinion without being stuck.  This does add time to the process though and isn’t ideal.

This forces sellers to take the best possible buyer, and price isn’t always the most important issue.  True enough, in a tight supply market, all buyers are going to be at a high price, but what really makes a buyer stand out from another buyer are the “Other” terms, like closing date, and amount in escrow.

If you have a buyer putting 20% down but only putting $1,000 in escrow it looks suspicious to a seller.  The escrow money is counted towards the down payment money anyway, and it is refundable if the buyer cannot get their financing assuming the contract is written properly, so sellers ask themselves, “Why isn’t this buyer putting more money down upfront?”

If a seller has 2 or more offers and one has $10,000 in escrow and one only has $1,000 down, which offer sounds better?  Even if there isn’t another offer Yet it still screams weak offer and throws up a red flag.  In a competitive market where a buyer isn’t in competition with the seller but rather with others buyers, it pays to make your offer look strong anyway you can.  If you’re financing there is a limit to how high you can go because it has to appraise.  Do the other things to make your offer stand out.

Listening to your agent will help.  If you don’t make your offer stand out, you’ll be on your 4th or 5th favorite home instead of your 1st, and in this market many times there aren’t more than 3 to choose from.

If you do run into an appraisal problem, there are things you can do.  Perhaps the seller may consider pre-paying the mortgage insurance which might eliminate the need for the property to appraise.  Speak with your agent and lender about these options.  Don’t let a bad appraisal Kill your sale.

Good luck and Happy House Hunting!!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

Listing Inventory in Southwest Florida Down Again

Posted on by

A few weeks ago we did a story called “Riding Low” about real estate listing inventory falling is SW Florida. We had May data to work with and at that time listings were lower than they were all last year and we speculated based upon pending sales they would most likely go lower when June data was released.

Listing Inventory in Southwest Florida Down

Well, June data was just released and indeed listing inventory fell again to its lowest level in quite awhile. Last year agents from Cape Coral to Fort Myers to Bonita Springs to Naples were all complaining about lack of inventory. It is putting pressure on buyers in 3 ways.

Prices are going up rapidly. Median prices are up about 30% over last year. This doesn’t mean all homes are up in price as some ranges have lots more inventory than others. Buyers today are being squeezed by rising prices, that’s for sure.

Secondly, interest rates are going up and this is causing the cost of ownership to rise. It’s a double whammy. Prices are going up and so is the cost to finance. Throw in some insurance rate increases and even a tax millage increase and you’ll see that some buyers are quickly being priced out of the market.

Lastly, when there is a shortage of homes on the market buyers are in fierce competition with other buyers. It’s very frustrating to look at homes and select a favorite only to find out the seller just accepted another offer, or worse is in a multiple offer situation and a bidding war ensues.

We just listed a short sale that had interest from several buyers because it has been kept up very well. We had to wait 5 day including a weekend because the seller’s loan was a FNMA loan and they now require a waiting period before signing contracts. We did that and a few buyers were very disappointed. We see this quite frequently on our listings and our buyer agents deal with this on a daily basis with our buyers.

This is the market we are given. It does no good to complain, although complaining sometimes makes us feel better. The best solution to having success in a market like this is accepting the market we’re given and educating our customers on how to succeed in this market.

Setting reasonable expectations upfront means educating our customers with facts, data, and logic. Facts help overcome emotional objections and get us in the mindset to make an informed and intelligent decision rather than a seat of the pants knee jerk reaction.

Women might appreciate and notice that they’re male significant other will study their fantasy football team until the cows come home but when it comes to using that same diligence on studying the housing market the motivation isn’t there. Some people are into fantasy football and some people are into studying the market, and neither way is right or wrong. I’m just saying as a buyer or seller it pays to either study the market as if you want to win your league or hire someone who knows.

Buyers and sellers who try to go it alone sometimes make some costly mistakes. Real estate is a complex transaction. Pricing is just one component. Taxing, deed restrictions, title, survey, financing, transfer protocols, HOA and condo associations all play into things you need to know about, and this is just the tip of the iceberg.

If you’ve got questions on buying or selling real estate in SW Florida, don’t hesitate to call someone who can guide you. If you’d like to search the MLS and have a look around, feel free to do so on our website www.Topagent.com If you’d like to get a valuation on your property go to www.SWFLhomevalues.com

Good luck and Happy Buying/Selling!!! Listing Inventory in Southwest Florida Down.

 

Riding Low

Posted on by

Listing inventory is riding low as it usually does this time of year.  If it seems lower this year, you may be right.  I spoke with a Realtor this week who usually carries 30 listings and they’re down to 6.

Fort Myers Cape Coral real estate inventory Riding Low
Single Family Home Inventory

 

As you can see by the graph, official numbers from Florida Realtors bear this out.  We’re still waiting for the June numbers to come out.  May’s numbers showed a decrease from 2012 inventory levels by 372 homes.

Last year inventory levels reached their lows in July but we’ve already surpassed those numbers with May numbers, so we’ll be watching June and July numbers when they come out.

Ellis Team at RE/MAX buyer specialists were busy this past weekend, and showings seem to have picked up a dramatically in the past week too.  Showings on our listings increased.  I checked with our listing coordinator and he said this past week was very busy and the week before wasn’t.  Of course, the week before was July 4th week so people tend to concentrate on outdoors and fun that week anyway.

Several of our listings have been receiving previews and showing for some of the Hertz relocation employees.  A few weeks ago I was quoted in a News Press article and while the article never said who had the Hertz account people inferred that the Ellis Team did so we’ve been flooded with people calling and emailing asking us to show their rental or home to Hertz employees.

We don’t have the Hertz account.  I had people argue with me and tell me we did because they thought they read it in paper.  These people weren’t looking to list their rental or home for sale, they just want employees to know about it.

The fact is, no matter who has the Hertz account those employees will know about it if the property is listed.  I assure you many of our listings have had interest from Hertz agents.

Every year I go on listing appointments and some sellers will say we’d like to sell to the Germans, or the Canadians or whoever else they perceive are buying this year.  It’s almost as if they want top dollar and they think the Germans will overpay for US homes because they don’t know better.

I assure you, nobody likes to overpay for a home no matter where they come from.  We work with many International customers and they all do their homework.  Hertz employees are no different.

And really, does it matter where the buyer is from or who they work for when they’re buying your house?  Money is money and most sellers we meet with want top dollar.  There’s nothing wrong with that.  We believe everyone should receive what the market is willing to pay.

When we list your home your home is exposed to buyers locally and internationally.  We use traditional print marketing as well as advanced online techniques that gets your home noticed.  Your buyer could be from Hertz or Intel, from Florida or Switzerland.

With inventory levels at lows this year it may be a good time to start thinking about selling.  Interest rates are rising, so if you’ll be getting a mortgage on your next home it could really cost you to wait.  See our last few articles at Blog.TopAgent.com to read about how rising rates are costing home buyers.

The market is rarely constant.  It is always changing.  If you’re interested in making a move, call us to find out where you stand in today’s market. 239-489-4042. Our office address is 7910 Summerlin Lakes Dr Fort Myers, FL 33907

Good luck, and Happy Selling/Buying!!!!!

Visit our Google+ Business Page

 

Realtors Using Video Revisited

Posted on by

Last year we did an article about Realtors using video in their business.  Back then about 14% of Realtors were using video.  We suspect today that number has grown a bit as more and more people are watching videos in their travel time and in between moments of their life on their smart phones and tablet devices. Today we’d like to update that story with Realtors Using Video Revisited

 

Realtors Using Video Revisited
Ellis Team YouTube Channel

Last month alone our YouTube channel www.Youtube.com/brettellisfl  viewers watched 11,792 minutes of video.  That’s over 196 hours of video.  Of that traffic, mobile apps and direct traffic accounted for 51% of that activity. Germany was the leading country after the United States to watch our videos.  Brazilians watched for the longest average duration followed by the Netherlands, Switzerland, and Austria.

While it helps to have professional video and audio it isn’t required.  Putting something at least decent up is better than nothing as long as the content is compelling and informative.

One thing you’ll notice about our YouTube channel is that we’ve updated the skin to YouTube’s standards.  This is a recent change Google has adopted.  They want pages to look similar across platforms and devices.  We created the beach graphics that have a similar theme to our Google+ Business Page. You can find a link to our Google+ page from Topagent.com if you’d like to see an example.  They also requested different sizes so they’ll look good on a desktop computer, a tablet or iPad, and a Smartphone.

Google is rewarding those who adopt their standards in local searches.  For instance, if you search Fort Myers Real Estate on Google the Ellis Team at RE/MAX Realty Group comes up in their listed map search as well on various pages.  The results in the various pages change all the time, but the map listings have stayed fairly constant.

We believe using video heavily has helped how Google rates websites.  We still do many other things as Google doesn’t rely on any one thing.  However, by doing many things and using video helps raise the bar and in Google’s algorithms separates serious Realtors from less than serious.  Google’s term is authority.  They are trying to identify authority and reward websites that provide authority.

In addition to SW Florida real estate updates published on our YouTube channel, we have a separate YouTube source where we post our property videos.  Video is playing an increasingly larger role in real estate searches.  Some buyers are searching for agents and properties on YouTube and skipping the search engine process altogether.

Look no further than teenagers today.  They don’t search on computers much.  They do search YouTube videos all day long, or do mobile searches on the phone.

Agents today must change they way they market to reach today’s buyers.  If you think teenagers are the only ones searching on mobile devices, just look around and watch people.  Our analytics tell us who is searching, from where, and how long on our websites.  The results will astonish.

Our advice would be, if you want to attract more customers for your listings, step outside the box and try new things.  Ask successful agents where they’re finding buyers today.  Look around and observe people yourself, and if you see a niche, jump on it.  We’re always looking for new ways to reach buyers and sellers, and if the market shifts in the future, (and it will) we’ll be searching for ways to capture that demand.

So get out there and take some video and post it online.  If it has decent audio and video, you’ll be glad you did.

Good luck and Happy House Hunting/Selling!!!!

Visit our Google+ Business Page

 

What Do Buyers and Sellers need to Know Now About Rising Interest Rates?

Posted on by

What Do Buyers and Sellers need to Know Now About Rising Interest RatesInterest rates have been rising, and we expect they could rise further. The primary reason is the Fed has indicated it will raise rates by scaling back or ending the quantitative easing as the economy improves. We’re not there yet, but writing from the Fed is on the wall and it’s spooked the bond markets. What Do Buyers and Sellers need to Know Now About Rising Interest Rates?

30 year mortgage rates have risen over 1% in the past 7 weeks. You’ve probably heard Realtors say “Now is a great time to buy with rates so low.” Here’s what you need to know about rising rates as a buyer or a seller.

Buyers, in the past month or two you just lost about 10% purchasing power. Your income won’t buy as much as it did back in May. Did you get a 10% raise this year? Most people didn’t, but the cost of buying a home is going up.

For most buyers the increase in rates means they’ll have to buy less home. Their income didn’t go up, so they either have to put more money down or borrow less on the same income. This isn’t a pleasing thought to many homebuyers as inventory levels have been low and prices have risen about 20% over last year. Buyers are getting squeezed at both ends, and rates may get worse.

If you’re living in an apartment or renting a home, now may be a time to get serious about your options. Prices usually stagnate this time of year. See last week’s article. However, SW Florida is adding two new companies with employees who will either be looking to rent or buy, so this will add to the pressure on the inventory. Who knows how this will affect prices. There are several variables in play for our local market.

Construction has been picking up to help with the shortage of resale homes but that takes time. Waiting to buy a home in today’s market has cost buyers dearly. They either have to pony up more money or accept that they’ll have to sacrifice the location they desire or features in the home. Of course, expectations are all relative. A buyer will afford less than a few months ago, but considerably more than back in 2005, so it’s all relative.

Sellers, don’t get too confident here either. Yes, prices have been rising, but they typically do during season. See last week’s article (June SW Florida Real Estate Market Update), or visit our Blog at http://blog.topagent.com

Buyers have just lost 10% purchasing power. Even though we have low inventory levels this means that fewer buyers now qualify for your home. They may still qualify, but for lesser homes. If rising rates knock enough buyers down the ladder it can affect the market. Our market has been doing well the past few years and prices have risen. We’ve had low rates the entire time and now that rates are rising, it will damper further increases. Until we get this economy humming like it should there is a cap to how fast prices will climb.

Nobody knows the future on the speed of prices. We do know 2 companies are coming, and many up North are buying for retirement or enjoyment. We also know rates are rising. How these positive and negative forces counter balance each other will be interesting to watch.

Our advice would be: Buyers, get your ducks in order and call us soon. Even if prices stay where they are for awhile, rising rates will hurt you.

Sellers, don’t get too cocky. Rising rates will hurt buyers, and if it hurts buyers, it could eventually hurt you as the seller. Plus, if you’re selling and buying another home, waiting to sell could cost you if you’ll be getting a mortgage on your next home.

If you’re thinking about your options, it would probably pay to sit down with us and discuss it. This is one of those times when waiting to see what happens may cost you. Or feel free to search the MLS at www.Topagent.com to see what’s out there.

Good luck and happy buying/selling!!!

Visit our Google+ Business Page

 

June SW Florida Real Estate Market Update

Posted on by

Official housing numbers for May are in and both the median and average sales price are up over 20% over last year.  The results are noteworthy and we expect the market to ride similar margins throughout the year, but the big gain in prices may have subsided for a bit. June SW Florida Real Estate Market Update.

June SW Florida Real Estate Market Update
SW Florida Home Prices

A few months ago we warned that prices were rising steadily however this is a trend we’ve seen repeat over the past several years only to watch the market cap out for the year around April-May.  In several past articles we pointed out that beginning in May we’ll be watching the month over month prices to see how the market is faring in real time.

This month we decided to post a historical price graph dating back to January 2009 illustrating the median single family home in Lee County Florida. Sometimes agents will make predictions based upon gut feelings on what they perceive is going on in the market.  While this gut feeling can be a useful tool, it can also be deceiving.  In the past I’ve spoken with different agents in a given month.  One would be super busy and another would be having a lull, for whatever reasons.  You can just guess which agent was more optimistic and which was more pessimistic that month.

We prefer to make predictions based on facts, data, and logic.  Yes we’ll throw in a feeling from the street if we hear changes in buyer’s or lending activity, but it has to be founded on some mathematical data to be meaningful.  We try to pull out numbers that are meaningful and not just stats, because as you know, anyone can make stats say about anything.

May numbers are in and they’re actually down from April’s numbers.  May’s median price was $176,330 compared to April’s $182,000.  May’s average price was $288,547 compared to April’s $292,201.  If you look at the graph you’ll see this trend has occurred each year beginning about May for the past 3 years.  Back in 2008 we predicted 2009 would be a year of bouncing along the bottom and that’s what it did.  There just wasn’t a lot of price swings.

January of 2011 was the beginning of the breakout in prices.  Listing inventory fell again in May and pending sales are up, so why didn’t prices increase?  The answer is our more expensive properties sell when we have the most affluent buyers here which is in season.  We still have strong sales all year round, but not as many higher end sales.  New pending sales have ranged from 1,465 to 1,485 from March through May.  It’d probably be higher if we had more inventory, but not necessarily the prices.

Remember, all real estate is local.  This means that even though the market may plateau for awhile, there can still be pockets where prices increase.  The whole market doesn’t march in unison.  The low end could be appreciating while the high end is suffering.  We’ve seen instances where prices get a little ahead of themselves in Cape Coral so people started buying in Lehigh because it offered more value.  Sure, Cape Coral off water has always held a premium over Lehigh, but there are limits and we saw those back in the big buildup in 2004 and 2005.

The same can be true with any area.  If waterfront prices shot up instantly in Fort Myers at some point buyers would move over to waterfront in Cape Coral.  Fort Myers may hold a premium, but there is a limit.

Next month will be most interesting to see how the numbers fare.  It really sets us up for the balance of the year if recent history has anything to say.  of course, we all know recent history can be trumped by future news, so we’re also keeping our eye on the bond markets and how that will affect interest rates, the economy, taxes, etc.

Stay tuned.  If you’re in the market to buy, heed the warnings!  Interest rates are on the rise.  Waiting will cost you money.  A month or so ago we posted on our Blog how the Fed’s pullback of QE (Quantitative Easing) may impact the stock market and affect interest rates.  You may want to check out that article (May 23) at Is Stock Market Ready to Make a Move?

Visit our Google+ Business Page

 

How to Interview an Agent to Sell Your Home

Posted on by

The past few weeks we’ve gone on several listing appointments.  We’ve got some great new listings coming to the market in the next few weeks by the way, so stay tuned.  We don’t take every listing for a variety of reasons.  Sometimes the seller is upside down on the mortgage and they don’t want to short sale, or perhaps the market isn’t quite where the seller wants it to be so they wait.  Each seller has his or her own reasons for deciding if and when to sell, and we merely help them in the process on their schedule. How to Interview an Agent to Sell Your Home.

 

How to Interview an Agent to Sell Your Home
Tips on Interviewing Agents

One trend we have been seeing is sellers asking a lot of questions.  Some have a pre-printed list of questions and others are asking questions based upon ideas that came about from interviews with other agents.  If you’re unsure of which questions to ask, our website www.TopAgent.com has a list of 49 questions to ask before hiring a real estate professional.

Our list has been online for over a decade. While it could probably use a little freshening up  there are still some good ideas in there. As we freshen it up the number of questions could change.  One question on that list is How Many Listings Did Your Team Sell Last Year?  This is a much different question than how many homes did you sell last year.

Recently we went on an interview and the seller had interviewed several agents.  The first agent came in about 20% higher than we were.  I had never heard of the agent they were interviewing.  She worked for a company with little market share so I looked her up in MLS and found that she had Zero listings sales.  The seller interviewed another agent who had 5 listing sales.  While not a lot, that’s a lot better than Zero.  The agent with 5 sales came out similar to our numbers.

The first agent either doesn’t know the market, or needs a listing.  Listings generate buyers, so if you take an over-priced listing it may not sell, but the listing agent may gain some buyers from it.  We call this buying a listing in the industry.  We don’t like to do this as we want to help each seller, not use them.  I’m not saying this agent was buying the listing, they just may not have known better.

Working with a seller is much different than a buyer. Buyers are the easiest part of the business.  Working with a seller requires more training and knowledge. Sellers have been known to eat and spit out newer, inexperienced agents.  They need to know if their home is priced correctly in the market, if any new listings have entered the market that is competition, how each showing went, where the home is being marketed, open houses, and what type of calls the agent is getting.  Sellers want to know all about the home up the street, and why Fred the neighbor says they priced their home too cheap.  They want to know why all the cars are stopping at their neighbor’s home.  They’ll have 3 people from work who say they want to buy the home and ask agent to follow up with them.

When a contract comes in it gets interesting.  Since they just had 4 showings they’re convinced all 4 will be writing full price offers and follow up with each of them.  Once a contract is accepted it gets really interesting and all the anxieties about inspections and contingencies come out.  It takes an agent who can handle a seller’s emotions.  An agent with a lot of experience working with seller sis preferable.

Asking the right questions before hiring someone to list your home will prevent this frustration later.  The solution is simple. Interview more agents until satisfied with the answers.  Hiring the right agent is perhaps the most critical decision you will make in the entire process.  Spend the time upfront and it will save you in the long run.

Good luck and Happy Selling!

Visit our Google+ Business Page

 

Brett Ellis Bio

Is Now the Time to Buy?

Posted on by

Last year we said it was a good time to buy because prices were heading up and interest rates would eventually rise. Is Now the Time to Buy?

Is Now the Time to Buy
Payment on Median Priced Home

4 things affect the cost of owning a home, not counting maintenance of course.  Those 4 things are debt, interest, taxes, and insurance.   Last year prices were rising and they still are.

Interest rates are rising now too.  Interest rates were artificially low because the Fed has been buying down rates by purchasing bonds to stimulate the economy.  They’ve been purchasing about $85-billion-a-month in Treasury and mortgage bond purchases however a few fed governors have hinted that they’re ready to vote to discontinue buying down rates as soon as the economy shows signs of recovery.

Wall Street immediately sold off stock a few weeks ago in anticipation of this.  Fed Chairman Bernanke later said they’re not stopping the program now although nobody knows for certain when the program could end.

Here’s what we know.  SW Florida real estate prices were artificially too low after the real estate bust.  They were so far below replacement cost as we worked through thousands of foreclosures and short sales.  It was only a matter of time until the market recovered.

With inventory on the decrease and foreclosures down drastically from their peak, prices have been rising.  After the bust we had two artificial moments that created an absolute buying bonanza for investors and buyers.  Investors were the first to pick up on the opportunity as regular buyers were afraid the market could fall further.  Regular buyers tend to follow the herd and react.

The artificial low prices are wearing off and soon the artificially low rates will too.  This does nothing but add to the cost of home ownership.  For the past several years we’ve pointed out what rising interest rates and rising prices could do, but sometimes it’s easier to see in graph format before it makes sense.

I always get a kick out of radio show call in listeners or people on TV that think Realtors just say “now is the time to buy” because they want a sale.  While I’m sure every Realtor would like a sale today, there is just no way of getting around the facts.  Last year was a better time to buy a home than today, and today may be better than next year.

We’re not saying to follow the herd.  We told people in 2009 it was the year of bouncing along the bottom and it was.  We told people back in 2005 prices were high and not sustainable.  We’re not afraid to tell it like it is because we study market indicators.

Successful Realtors sell properties in up, down, and sideways markets.  Our job is to educate the community on what’s going on today, and we feel like that’s what we do,  Some people like what we have to say and others don’t.  As consumers we don’t always get to choose the market, only how we react to the market we’re given.  Realtors don’t control the market.  If we did the market would have recovered much faster.

We’ll keep informing you what we’re seeing based on the data we look at.  If you’re considering buying, we think now is a good time as you’ll be able to afford more home today for the same payment than you will next year.

If you’re thinking of selling consider two things.  Prices are going up.  When interest rates go up too it cuts into buyers’ potential, thereby limiting how many buyers can afford your home.  Rising rates can stifle demand, which can hold back prices.  It won’t help the buyer when rates go up, and it doesn’t help the seller either.  Until the economy definitively turns around, nobody knows exactly what prices will do.  All we can say is your options are better today than they will be next year.

Good luck and happy buying/selling!

Visit our Google+ Business Page

 

Listing Inventory Down-Good Time to Sell

Posted on by

Last week we wrote about home prices climbing this season and how it’s getting harder to find homes in certain price ranges.  Active single family home inventory is down to 5,476 in April, down from 5,900 in March.  Pending sales are up too, so our market has been doing very well.  Inventory typically falls this time of year and starts picking up again about October.  If you’re a home seller, beating other sellers to the market might help you sell before the rush in the Fall.

Good Time to Sell Fort Myers Cape Coral Florida home inventory
Listing Inventory in SW Florida

Last week we ran a line in our ad that read “Your home might be worth more than you think. Find out at SWFLHomevalues.com” We were surprised that with that one little line 8 people responded and filled out their information to find out.  Once we receive the information our team runs a computer report that is several pages long and provides an online computer estimate of value.

Online computer home value report SW Florida
Online Home Value Report presented by the Ellis Team at RE/MAX Realty Group

People can select to receive an online evaluation only, or a more accurate evaluation whereby we come to the property and look at various characteristics like features, condition, view, etc.  For those just looking to get a pretty good idea the online computer analysis works very well.

Keep in mind the computer has never been inside your home and doesn’t necessarily know about some of the upgrades you’ve put in.  It also can’t see the condition or other attributes buyers may like, or certain objections a buyer may not like.

The market has been moving so fast sometimes the computers have a hard time keeping up.  In a rising market, sometimes appraisers go through the same issues. The computers go off recent sold sales and may not reflect a lack of inventory in a certain price range that might warrant an increase in price.

The computers have been doing a pretty good job of getting sellers in the ballpark, but if you’re going to sell it doesn’t do any good to sell a home for $200,000 because the computer says so if it’s really worth $218,000.  You’re just giving $18,000 equity away to the buyer if you do.

If you have an interest in selling, feel free to check out www.SWFLHomeValues.com If you’re a buyer and would like to search the MLS, check out www.Topagent.com It’s simply amazing today what you can find online.

We’ll be happy to send you your online report.  If it looks good and you’d like to consider selling, you can call us to schedule a more detailed appointment to go over how we market homes and how our marketing works to sells homes quickly and for today’s true market value.

Perhaps you’re looking to trade-up or down before interest rates make a move.  Waiting for you home’s value to go up even $10,000 may cost you money.  The home you’re looking for could not only rise in value, but the cost of financing could blow any savings with just a ¼% rise in rates.  Interest rates are expected to rise because the Fed wants to refrain from buying interest rates down as soon as the economy gets stronger.  Several Fed governors have hinted they’re ready now to begin raising rates.

If you’re unsure what to do, give us a call at 239-489-4042.  We’re easy to talk to and we never pressure.  We simply give you your options and let you decide.  When you decide to sell, you’ll have the best and most aggressive team working for you.

Good luck, and Happy House Selling!

Visit our Google+ Business Page

 

SW Florida Real Estate Market Continues Its Upward Trend

Posted on by

Official real estate sales numbers were recently released by Florida Realtors and as expected, median and average prices for single family homes rose again in April.

SW Florida Real Estate Market Continues Its Upward Trend
Median Sale Prices 2012-Present

The median sale price rose 29.8% over last year from $140,199 to $182,000 this year.  The average sale price rose 23.1% from $237,281 last April to $292,201 this year.  Prices have definitely risen this season; however they typically do this time of year.  We are comparing numbers of last year at same time, so it’s a legitimate 30% increase over last year.

SW Florida Real Estate Market Continues Its Upward Trend

April 2013 prices are up over March numbers which is also typical.  April’s $182,000 was up over March’s $168,000.  Going forward we’ll have to watch as last year prices hit their plateau before steadying out the rest of the year.

 

Home prices by price category in SW Florida
SW Florida Home sales by price category April 2013

When analyzing by price range again we see a drop in closed sales below $100,000 simply because there isn’t much inventory there as home prices have graduated higher.  Those some entry level or investment homes are just higher in price again this year.  Finding sub $100k priced homes is difficult at best.

When prices are rising people automatically assume it’s across the board and they can add 30% to last year’s home value regardless of what price range their home is in.  This simply is not true, although we have seen increased sales in almost every category.  The over $1 Million category continues to struggle.  The SW Florida real estate market is on the rise, but the overall economy may be holding back super premium prices combined with excess inventory in the $ 1Million+ category.

We’re really seeing excellent sales in the $200,000-$400,000 range.  That’s the sweet spot right now in Southwest Florida.  This may change in time, but right now that’s it.  With companies like Hertz moving to Estero and another company I’m hearing rumors about, this sweet spot could do very well for years to come.

Eventually the over $400,000 range will pick up more as well.  It’s doing OK, but if you remember back to the hay days, it seemed any new home in South Fort Myers was $400,000 and up.  Now you can get a pretty nice home for $400k.

The financial markets were spooked last week Fed reports that some Fed governors support raising interest rates by ending the government bond buying spree if we see continued economic development.  This would essentially raise rates.  While this will happen one day, I doubt there’s enough support to do it now.  This will eventually cut into buyer’s buying power when that happens.

Nationally home prices were up 10.2%.  SW Florida is absolutely leading the nation right now.  We did so back in the run-up.  The difference today is its sustainable and we’re still at or near replacement costs.  Back in the upswing in 2005 we were so far over replacement cost.  We were artificially too low in price for the last 7 years and the market has been correcting the past 3-4 years now.  Look for continued strength as we have positive economic news locally.  Keep your eye on national economic news and interest rates and we’ll let you know if we hear more details about landing another big company.  It really makes no sense to report on that unless and until it happens.  As you might have read, the Hertz deal almost didn’t happen, so we never believe anything until the ink is on the paper.

To find out what your home is worth online visit www.SWFLHomeValues.com  To search the MLS, visit www.LeeCountyOnline.com

Good luck and happy house hunting.

Visit our Google+ Business Page