Category Archives: Fort Myers

Fort Myers Florida news and information.

National Housing Market

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Lately we’ve been focusing on the local real estate market as we know all real estate is local.  However, sometimes the national market helps us spot trends that may affect us in the future. National Housing Market Update.

National Housing Market

When Northern markets have struggled in past years it made it difficult for some buyers to purchase down here because they no longer had the equity they used to have in their current home or they just couldn’t sell their home to make the move down here.

RE/MAX International releases a national monthly housing report which is a survey of 52 metropolitan areas. The latest report released in July shows transactions were up 4.1% over last year even though they dipped from May 2013 levels.

This dip could be due to limited inventory nationwide.  This year there are 23.9% less homes on the market. This would explain why we have only 3.0 months supply of inventory nationwide.  This low supply typically indicates a sellers market.

Rising rates may curtail transactions somewhat as less people qualify for what they used to just a few short months ago.  Fannie Mae did a study that said this theory isn’t true.  Sometimes rising rates act as a motivator.  Inventory levels are probably the biggest threats to transaction volume right now.

Local numbers haven’t been released at the time this article is written.  Our internal analysis suggests a 30%+ rise in price over last year with all price ranges except for $100k and under posting fair to large sales gains.  The reason the under $100k market is posting losses in sales is because with recent price gains there are fewer lower priced homes to sell.  We saw exceptional strength in the $600-1 Million price range as well as the $250k-$400k range.

We have 14% fewer active listings and a 17% rise in new pending sales locally.  This too should drive prices higher going forward.

To relieve some of this pressure builders are seeing more activity.  Going forward building will become a viable option.  The only downfall to building is locking in the interest rates.  If it takes 6-9 months to build a home there is a significant amount of time rates could rise.  Remember, a 1% increase in rates takes away about 9% purchasing power, so a buyer has to be careful when they select their home today that they can afford it when the home is completed.  Locking in rates that long is almost impossible and costly if more than 45 days out.

Perhaps builders will offer interest rate protection one day but either way it’s built into the price of the home.

More than 800,000 homeowners regained positive equity in their home in the 1st qtr of 2013.  This could spur more sellers to enter the market.  Many homeowners have been trapped in their home and can now afford to make the move.  Many are motivated to beat the interest rate hikes.  Even if they wait for their home to go up a little bit more in value it still costs them to wait as the home they’re buying is also going up as are the rates to finance it.  Waiting is a double whammy for a seller right now.

If you’re thinking about making a move in today’s market, give us a call at 239-489-4042 We’ll show you your options and you can decide if a move makes sense for you right now.  It always helps to get the facts before deciding one way or the other.

Good luck and Happy Selling/Buying!!!

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Riding Low

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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!!!!!

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Realtors Using Video Revisited

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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!!!!

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

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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!!!

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June SW Florida Real Estate Market Update

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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?

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How to Interview an Agent to Sell Your Home

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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!

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Brett Ellis Bio

Is Now the Time to Buy?

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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!

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Listing Inventory Down-Good Time to Sell

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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!

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SW Florida Real Estate Market Continues Its Upward Trend

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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.

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Hertz Deal Underscores Importance of Confidentiality

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If you haven’t read the News Press story “Anatomy of the Deal” about Hertz selecting Lee County Florida to relocate its world headquarters to you’re missing out on some fascinating behind the scenes tales full on mystery, intrigue, and suspense as if it was right out of a top selling suspense novel.  Hertz Deal Underscores Importance of Confidentiality.Hertz Deal Underscores Importance of Confidentiality

It was fascinating to read about how that deal transpired from beginning to end.  It further underscores why confidentiality is a requirement in deals like this.

In the past we’ve worked with professional athletes, movie stars, and other famous people so we’ll shed a little light on some things people don’t always think about confidentiality.

We had two athletes who played in many Super Bowls interested in buying property in SW Florida.  They both purchased and one bought multiple properties because of the confidentiality extended to them.  One man was rather large and tall, in excess of 340 lbs.  Before he came to SW Florida we sent him video tapes of selected properties that met his needs.  We’d go out and video the properties on his behalf.

At one SW Florida community the salesperson stopped us and said they would do the taping for us, that we were not good enough and they wanted to show their product in the Best possible way.  We’re sure they would have done a marvelous job, but what they didn’t realize who the client was and what they were looking for.

We were videoing entrances to the closet so he could tell if he would fit.  The same was true with doorways and bathrooms.  The salesperson thought we were nuts and not very good, but we knew what was important to him.  He knew we selected nice properties, but they were no good to him if he couldn’t enjoy life within the property.  That’s what he wanted to see.

We couldn’t disclose who the buyers were as they were fairly well known and they valued their privacy.  They wanted to come down to SW Florida and enjoy it, not be mobbed by fans or interested onlookers.

A few years ago I heard a rumor that Kenny Chesney was looking at property in Key West but nixed the deal when word got out he was buying.  I have no idea how true this rumor was but it could be as famous people like to keep secret what they’re doing for as long as possible.

I remember negotiating land deals and in many cases the original contract was an unnamed buyer.  Sellers don’t like this but there were reasons.  Children’s Miracle Network wanted to build a facility but needed confidentiality.  We met with company representatives out of state and began the process.  They knew that we were contributors to the network as we had contributed money from every Ellis Team closing to CMN for years.  We still do today.  Sande is a CCIM so they wanted local expertise and someone they could trust. They knew we believed in them and they believed in us.  Their facility now sits on Colonial Blvd and helps children from all over SW Florida and reduces many trips to Tampa.

We worked with builders who were competing with other builders for communities so they didn’t want it known which land parcels they were bidding on.  If word got out, prices could go up or another builder could speed up a development order and take away chances another community would be allowed given the existing road and water resources.

In the case of Hertz, employees back home hadn’t been told yet.  Tulsa was a competitor to SW Florida.  I can just imagine many from NJ wouldn’t move to Oklahoma, and many from Oklahoma wouldn’t go to NJ.  SW Florida just seems like a nice place key employees from either might go to, and we agree.

In the end, it all worked out for SW Florida.  We weren’t in the know in this deal, and that’s OK.  We didn’t need to be, and neither did anybody who wasn’t closely involved.  Companies choose locations for their reasons.  The fact that we all found out who the mystery company was the day it was announced served everyone well, and that’s the way it should be.  Relocation is a stressful thing and involves a lot of people so it wouldn’t do a lot of good getting people riled up about various locations.  7 sites were considered locally for Hertz.  Imagine the public interest had Hertz been revealed and speculation as to which location was selected.

Welcome to Southwest Florida Hertz.  We think you’re going to like it here.  I know I’m joining the Hertz #1 Club.  We hope everyone here does too.