Category Archives: Southwest Florida Real Estate

Market updates and news and information about the SW Florida real estate market

Two Local SW Florida Beaches Ranked as Top Beaches By US News World Report

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Fort Myers Beach Spring Break
Fort Myers Beach

Last weekend I was down at Fort Myers Beach with my friend from Simba Sea Trips Phuket Boat Tours, taking pictures for our Pinterest site.  I was amazed at how many people from all over were enjoying our beautiful beaches.  Traffic wasn’t too bad, although practically every car had out of state license plates.  This past weekend most seemed to be from Indiana, although there were plates from Kentucky, Ohio, Canada, and many Sunshine State plates as well.

Many were enjoying Easter break.  There were many college aged people, but also many families.  What’s not to love about our beaches?  SW Florida boasts some of the best beaches, and certainly the best weather in the country this time of year.  In fact, Fort Myers was on the map as the warmest city in the country this past week.

Best Florida Beaches
Best Florida Beaches – US News & World report

Two Local SW Florida Beaches Ranked as Top Beaches By US News World Report

In fact, US News and World Report ranked Fort Myers Beach as the 8th best beach in Florida, and ranked Sanibel Island as the #1 best beach in Florida due to its laid back atmosphere, art galleries, quaint eateries and supreme shelling.

Fort Myers Beach made the list for its small town feel.  I really like the wide beach with all the new sand since they’ve completed the beach re-nourishment project. People from all over the world travel here for our beaches and it’s a shame local residents get so busy working and tending to their families that not all get out to enjoy the beauty that SW Florida has to offer.

I know having lived in SW Florida for years there were long periods of time I didn’t make it to the beach.  It seemed like such a bother to pack up the car, go look for a place to park, find a spot on the beach, not to mention cleaning up all the sand that would inevitably find its way home with me.  In the past few years I’ve made getting to the beach a priority recognizing the sand, sun, and water are so relaxing and truly a natural wonder.

Perhaps the thing that makes SW Florida so unique is the small town feel, and the beach is no exception.  All are welcome here as practically everyone down here in SW Florida is from somewhere else.  SW Florida is truly a melting pot.  We’ve always attracted people from the Midwest, and in the last decade or so it’s seems we’re attracting more from the Northeast.  This could be the natural migration of people coming from the East coast of Florida who have always attracted people from the Northeast, or perhaps it could be the influence of ball teams like the Red Sox.

Whatever the reason people visit and enjoy SW Florida, few could argue an area has more to offer than right here.  We have world class fishing as many consider us the tarpon fishing capital of the world, top rated beaches, outstanding year round golf, and we’re home to influential innovators like Edison, Firestone, and Ford.  Even Al Capone called SW Florida home.

Whether you’re looking for a waterfront home where you can park your boat in your backyard, a golf course home, or a condo in a gated community, SW Florida has it all.  We even have vacant lots for you to build your life-long dream home.

This is the last weekend of season.  If you’d like to explore your options on how you could join the party and call the Fort Myers/Cape Coral area home, give us a call or send us a note and we’ll be glad to go over your options and answer your questions.  We too moved here years ago and remember what it’s like to have a dream and wonder what’s the best way to make it happen.  Once that dream becomes a reality you’ll be telling all your friends how you made it to paradise.

If we can help make that dream a reality, then you’ll help us with our dream which is helping others making their dreams happen.  Call the Ellis Team at 239-489-4042 or visit our website at Topagent.com

 

SW Florida on Foreign Buyers Top List

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A new study just released shows International buyers chose SW Florida over other top destination when purchasing real estate in the United States.  The study researched 97 metropolitan markets and was conducted by DataQuick and Inman News.

SW Florida Top 10 Market For Foreign Buyers
Top 10 Real Estate Markets For Foreign Buyers

Lakeland-Winterhaven scored #1 followed by Cape Coral-Fort Myers and #2  Phoenix came in at #6, New York City #7, and Honolulu at #8, so SW Florida edged out some pretty nifty places.

SW Florida Median List Vs Sale Price
Median List/Sold Price

For the past few years we’ve been reporting that International buyers have been buying here locally because Florida is on Sale and they know it.  Our prices were too high in 2005 and needed to come down, but they over-corrected in the correction and became artificially too low.  Most pros knew back in 2005 prices were too high and not sustainable, and almost everyone in the business recognized a few years ago that prices were too low.  In fact, they were so low builders couldn’t compete, so they didn’t.  Builders sat on the sidelines for a few years, but they are coming out of their shell now.  While everyone agreed prices were too low, nobody really knew exactly when those prices would begin to rise.

We predicted 2009 would see bottom, but that the bottom wouldn’t be a nice curvy slope back up, but rather a rocky bottom filled with ups and downs.  We did manage to bounce along the bottom, but in the past year we’ve seen evidence of some nice increases.

In fact our median prices are up about 30% over last year.  Inventory is declining, and builders are building again.  Construction adds jobs to the economy, which also fuels the housing market.  Nationally real estate accounts for 32% of the nation’s GDP.  Each new construction adds 3 jobs to the economy and adds about $90,000 in wages to the economy.

While our recovery won’t happen overnight, it is underway and a welcomed sight.  Foreign buyers will continue to invest here until prices rise so much that our normal economy sustains itself.  At that point, we won’t need foreign investors.

We are seeing many baby boomers investing in SW Florida as well.  Many would like to retire here and are buying property at today’s low prices so they can afford to live here down the road.  We’re also a pretty nice place to visit, both in the winter and year round.  SW Florida is certainly warmer in the winter, and we also boast year round boating, fishing, beaches, golf, and more.  You can fish year round up north, but you might need a snow blower, chains on your tires, and an ice cutter to do it.

Retired folks love riding bikes, taking walks, or enjoying bocce ball or horseshoes year round, and this is one reason SW Florida will always be a top destination.  People who live down here are generally healthier and fitter as they can exercise year round and aren’t shut in.

If this article sounds like a chamber of commerce letter it’s because it’s all true.  We live here and love it, and apparently people from all over the world do to.  As the world discovers our beauty and our bargains, simple supply and demand takes over.  Our prices are rising, our inventory is shrinking, and our roads have been busy.  Now that season is almost over, we can all take a deep breath and enjoy our roads until the summer tourist season begins, and be thankful SW Florida is back on the map for good things instead of the bust that followed the frenzy.

Here’s to good times, rising values, and better fortune ahead.  Throw in some low interest rates, and the only thing we could ask for is lower gas prices.  Hey, 4 out of 5 isn’t bad.

 

SW Florida Real Estate Market Firing on All Cylinders

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It seems like everyone is reporting that prices are up in SW Florida, but prices only tell part of the story.  Supply and demand usually influence prices.  Even then there can be variables to this equation.

Here’s a little story that illustrates the public’s perception about how Hot a neighborhood is.  There is a golf course community in South Fort Myers called Eagle Ridge.  I remember back in the late 80’s people commenting that it seemed like the whole neighborhood was for sale.  It seemed that way, when in reality about every third home was on the market.  33% of homes in a neighborhood on the market at one time is a big number, and homes weren’t particularly selling well at that time in Eagle Ridge either.  It was just a lot to absorb, and 1989-1991 was a different market.

Fast forward to several years later, exact date unknown.  Another consumer was questioning why they should buy a home in Eagle Ridge when there were very few sales in the past year to compare to.  The buyer questioned why nobody wanted to purchase in there and if they were making the right decision.

The answer was many people wanted to buy in Eagle Ridge at that time.  It just so happened that very few sellers wanted to sell at that time so there were no sales, simply because inventory wasn’t available to sell.  We had a good market at that time and Eagle Ridge was desirable.  In both instances buyers were questioning a neighborhood’s desirability.  In both instances there were very few sales, and yet the reality of the situation was diametrically opposed.

Single Family Home Listing Inventory
SW Florida Residential Listing Inventory

While statistics can sometimes be deceiving, we try to provide pertinent stats and describe what is actually going on and what they mean.  Aside from a few blips, listing inventory has been going down.  This is due to the market absorbing and buying up available inventory so it doesn’t stay on the market long, assuming it’s priced correctly, and the lack of enough new foreclosures entering the market.

Just as the first waves of foreclosures drove prices down in SW Florida, the lack of foreclosures entering the market combined with a healthy appetite from buyers has propelled prices higher.  Just reporting prices without going in depth doesn’t explain to a buyer or seller what’s really influencing the market.

Single Family Home Sales in SW Florida
SW Florida Residential Sales

Of course all real estate is local.  What’s going on nationally doesn’t necessarily affect what’s happening here.  The national market was doing OK back in 2006 while we began flat lining.  Flat lining would actually have been good; however our prices were headed for more like a cliff.  We’ve talked about those reasons in the past at length, and in fact many people on the ball who study the market were warning about what would someday happen with prices.  We don’t see those factors in play today, so we believe we can be in for sustainable price increases going forward.  In fact, our market may have over-adjusted to the downside as prices were artificially too low for awhile.  Our market is correcting those errors now.

The market eventually gets it right.  The real estate market isn’t as efficient as the stock market, but it does work over time.  As prices rise we’ll begin to see more building and we’re already seeing signs of that.  Builders have been able to cut costs to compete, as long as they are into the land at decent prices.

Closed sales are on their annual march upward.  March and April tend to culminate in finishing of a strong season.  By all accounts we’ve had a strong season so far, and when we look at pending sales we can see that March/April closed sales will be better.

We continue to look for higher prices than last year.  Sales numbers would actually be higher if only we had more inventory to sell.  The trend is the same even if the numbers of sales are down.  This could put more upward pressure on prices going forward.  We’ll report soon on pricing trends, and now you have the context ahead of those reports as to what’s moving the markets.

 

Fenway South a Big Hit With Baseball Fans

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You can’t turn on the TV without getting daily updates from Fort Myers on the state of the Major League baseball teams.  TV networks love to use the new JetBlue Park, affectionately nicknamed Fenway South as the backdrop.  It’s named Fenway South because the field is designed to look like Fenway Park in Boston.  There is the green monster in left field baseball fans from all over will remember.  The designers took note to match the exact dimensions of Fenway Park when building this new stadium. Fenway South a Big Hit With Baseball Fans.
Fenway South a Big Hit With Baseball Fans
Fenway South-JetBlue Park
Some Lee County residents weren’t happy the county invested $80 million for a stadium that is in use one month of the year when we have such other pressing needs, and there is an argument for that.  The stadium was paid for by the bed tax, which is a tourist and development tax.  I think it’s fair to say this new stadium has caught the eye of baseball enthusiasts everywhere, and hopefully this translates into tourism dollars coming back to the area.
It’s hard to put a price tag on the free publicity our area is getting.  On a recent trip to a night game, I noticed the satellite trucks beaming the game up to folks in the New England area.  Combine that with ESPN broadcasting games and the daily baseball newscasts from Fort Myers, and you begin to realize this free publicity is worth something.
How many people from New England came this year or will in future years?  That’s hard to tell.  We can say that the real estate market got hot back in October, a full 3-4 months earlier this year.  We noticed many northerners buying, and that trend continues to this day.  I think people are also intrigued that we have two major league teams here, so maybe there’s something special and worth looking into in SW Florida.
Now there’s talk a 3rd team, the Washington Nationals may be interested in relocating here and taking over the old Red Sox stadium.  This would come with a price tag as the Nationals would want some of the very same things the Red Sox asked for, like practice fields closer to the stadium.  I’m not sure how much more money Lee County has to spend on baseball, especially in light of the fact the Twins are now asking for renovations to their stadium to the tune of about $60 million.  They won’t get anywhere near that, but they’ve asked.  Their contract says the stadium must be looked at every 5 years, and must be kept up with a certain percentage of the top spring training stadiums.
So the Red Sox stadium not only cost Lee County $80 million, but potentially lots more with upgrades to Hammond Stadium.  Politics aside, this is a time to revel in the fact that this new stadium has put SW Florida on the map, in a positive light, and after 6 years of making news for a housing crash, it’s nice to make the news for something good.  Our housing market is getting much better by the way.  All this leads to economic recovery and dollars being spent here locally.
While locals hate the traffic, keep in mind season only last a few more weeks, and we certainly enjoy the money spent all year long.  I’d say the 1st year of the new stadium was a success, and let’s hope it inspires more people to come here next year.  All the visitors bring money to the area, which spurs local jobs, and local jobs lead to economic recovery.  It’s all related, and each feeds off the other.  We’ve spent the money for the stadium.  That argument is over.  Let’s reap the benefits, enjoy some popcorn, peanuts, and Cracker Jacks, and cherish the sound of “Play Ball”.
Buyers and sellers have decided to Play Ball too.  Houses are flying off the market.  Let’s root, root, root for the home team and for our good fortune to continue.
Happy St Patricks Day to all, and may the luck of the Irish be with you.

Season Off to Fabulous Start

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What a difference a year makes. As you can see from the 2010-2012 Single Family Median Price Comparison chart, January 2012 prices are up 30.86% over last year’s numbers.

Lee County Florida Single Family Price Comparison Chart
SW Florida Single Family Median Price Comparison Chart

We’ve been reporting that prices have been on the rise for months and that we thought we could be in for a strong selling season and the numbers are bearing witness to those sentiments.

Inventory levels are down which is affecting sales.  There are fewer transactions because there is less to sell, which is causing prices to go up.  Word is spreading up North too, as snowbirds and baby boomers are looking to buy now before prices go higher.

Don’t worry; it’s still a very healthy market.  We still have buyers offering $10,000 less on bank owned properties even though there are more than 10 offers on the property and the bank is countering at highest and best.  Some buyers just have to try even though their Realtor is advising and educating them on the market.  I always get a kick out of buyers that call me because they’re disgusted with their Realtor.  Upon asking a few questions inevitably the buyer tells me they’ve made offers on several properties but they never win any of the bids.

Usually the buyer isn’t following the advice of their Realtor.  If they are, perhaps the buyer just isn’t strong enough to compete with other buyers in that price range.  If the buyer feels they’re strong, ie. Writing cash offers, decent money in escrow, few contingencies, and offering above asking price and still not getting the properties, perhaps they need an experienced agent who knows how to structure offer to compete.  We’ve written many articles in the past that may help your agent understand what a seller considers when looking at multiple offers.  Check out our Blog archives at http://blog.topagent.com

Lee County Homes Sold by Price Points
SW Florida Homes Sold by Price Points

Look at the price point’s chart. Foreclosure sales are down across the board as foreclosure inventory is down significantly. Conventional sales are up as prices have risen since 2009.  Many more sellers can afford to sell today than 3 years ago.

You’ll also notice more sales in the higher price ranges.  This is because there is less inventory to sell in the under $100,000 range, so those sales are off.  That’s pushing buyers into higher price ranges.  Additionally, the economy is faring just a little better in some places.  Buyer sentiment is stronger, and buyers in the higher price ranges realize if they want an investment or place to eventually retire, buying sooner rather than later may be their least expensive option.  These higher priced homes seem like such a bargain compared to 6 years ago, and who doesn’t enjoy a good bargain, even if you’re rich?

We look forward to reviewing the February numbers once they’re out.  We think February will be another strong month, and already March has been super busy.  It should be, as March is the height of season.  It’s also the month of St Paddy’s day, so with a little luck of the Irish, our market might just end the season in fine shape.

 

Follow-Up on SW Florida Military Veterans Article

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Last week’s article drew much attention from readers all over the country. The article’s intent was to create interest and educate the public about military veterans’ issues, and from the feedback it worked. Follow-Up on SW Florida Military Veterans.

Follow-Up on SW Florida Military Veterans Miltary Residential Specialist Certification
Brigadier General Earl Jakes

We have limited space, so it’s impossible to clarify every detail, but there are a few points worth mentioning. Last week we said ” People don’t realize that if a veteran or active duty military is foreclosed upon, or does a short sale, they lose their military benefits forever. That’s a pretty steep price to pay. Remember, we, the United States, are the ones moving them around. They don’t have a say, and yet they suffer all the consequences.”

We should clarify this. If a veteran has a VA loan and has a short sale or foreclosure on that loan, they will lose their ability to get another VA loan. If they are foreclosed or do a short sale on a conventional loan this will not affect their certificate of eligibility. They are still entitled to their other military benefits.

This week we’ll touch on some new items as they pertain to real estate. Did you know that per the Servicemembers Civil Relief Act (SCRA) active duty military and their families are protected from eviction if they lease a house or apartment and cannot make rent. Service members also have the right to terminate a housing lease when they receive Permanent Change of Station orders or when they are deployed to a new location for 90  days or more.

There is also protection against default judgments against anyone in the military. This is especially important in SW Florida. Often I am asked to attend evictions and lockout proceedings against former owners or tenants on behalf of a bank foreclosing on the property. Before a court can enter a default judgment against a military member for not responding to a lawsuit or appearing at trial, the plaintiff who is suing the Service member must provide the court with an affidavit stating the defendant is not in military service.

Imagine someone working here in SW Florida and being called up to serve and being deployed overseas to Afghanistan or anywhere else the military needs them. They receive regular military pay during that time, not the regular pay they might be accustomed to. Just imagine if they came home and the landlord or bank evicted them while they were gone. How would you feel if this happened to you? For the privilege of serving our country, many service members returned home only to find their houses were foreclosed upon and sold to someone else. That’s quite a kick in the pants.

The SCRA creates rights for our Service members, like the right to terminate a lease if they are called, protection against foreclosure, health insurance protection, motor vehicle lease protection, and so on. There are many details that cannot be explained in a short article like this. I would highly recommend Service members contact their local AFLA office or visit http://legalassistance.law.af.mil A quick and easy way to read up on this act is go to www.Military.com and type SCRA in the search box. From there you’ll be able to read up on the entire act. This information is important to Service members, landlords, real estate agents, and the public in general.

I’d also highly recommend agents and lenders take the Military Residential Specialist course. There is so much more information you’ll learn that will not only help your business, but will also help educate the public and Service members as to options in dealing with military and their benefits. If you’d like more information on this course, feel free to contact me at Brett@Topagent.com

A few weeks ago I met with several military leaders including Brigadier General Earl Jakes pictured above, the civilian assistant to the Secretary of the Army from Texas, and others as we talked about the course and ways to improve the education of agents and loan officers. We hope industry has a better understanding of protecting and meeting Service members needs, because I can assure you, our military is protecting and meeting our needs.

SW Florida a Hot Bed for Military Veterans

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SW Florida a Hot Bed for Military Veterans
SW Florida Military Veterans and Active Duty

Recently I had the opportunity to attend the Military Residential Specialist Program and I learned some very interesting things all agents should know in learning how to better assist our veterans.

I must admit, even though several members of our family served in the military, I didn’t have a full understanding of the needs of veterans because I personally didn’t lead that life.  This class has helped shed a light on some of those things.

I’ll share a few facts many people may not know.  When someone is active duty military, they tend to get moved around quite a bit.  Each member must find housing.  Some rent, some buy.  They get orders for periods of time, but you can just imagine how up in the air their life is.  Many have a family behind they care about deeply, so housing is important.

Because they never really know where they’ll be for great periods of time, making housing decisions can be difficult.  If they buy today, they may need to sell in 2 years.  What if the market declines due to base cutbacks or other economic factors in a community?  We don’t pay them a lot for their service, and they may not be able to afford the loss.  Many around here in SW Florida understand what it’s like to be stuck with a property that isn’t worth what you paid or what you owe.

People don’t realize that if a veteran or active duty military is foreclosed upon, or does a short sale, they lose their military benefits forever.  That’s a pretty steep price to pay.  Remember, we, the United States, are the ones moving them around.  They don’t have a say, and yet they suffer all the consequences.

Here’s another scenario.  Let’s say a doctor, lawyer, pharmacist; anybody really is now in the Reserves.  A Reservist can get called up for duty, just like many were for the Iraq wars.  When you get called up you leave behind the pay you were making and only get the pay the military pays you.  People tend to live a lifestyle depending on their job, so if you’re a doctor making a certain amount, and all of a sudden you get called up your pay may be cut 50% or more.  Your bills don’t go down 50%, they remain the same.

People need to understand the burden placed upon our military.  Not only do the serve our country, but they risk their life, and do so many times for less money than they could make back home.  Unemployment is 7% higher for veterans returning home than it is for the general population, and we all know unemployment is too high anyway.

The largest employer of veterans is the postal service.  What is the number one thing our government is trying to cut right now?  You got it.  In addition to cutting the military, we’re cutting the postal service.  Somehow we’ve got to do a better job protecting our vets.

As a real estate professional, we need to encourage a vet to use their benefits.  Several agents shudder when they see a buyer come in with an offer with VA financing.  Actually, VA loans are easy to do if you know what you’re doing.  An offer with a VA loan shouldn’t be looked down upon; it should be treated equally with other financed offers.  I understand cash is king and the seller only cares about their own sale, I just think we can portray these offers in a more positive light.

SW Florida a Hot Bed for Military Veterans

SW Florida has in excess of 250,000 veterans living among us.  Veterans are 9.5% of Florida’s population.  They served our country well.  The freedoms we have today can be directly linked to their efforts. Some of our military were spit upon when they returned.  The public has turned off on them in the past, and will in the future.

They may not be a cash buyer.  They have certain needs other buyers may not have.  Let’s at least try to give them a level playing ground and an opportunity to enjoy the good life SW Florida has to offer.  They’ve earned it.

If you’d like more information on the Military Specialist Certification, give me a call.  I’d love to share with you how you can learn to better serve this segment. Call Brett Ellis 239-489-4042 or email Brett@TopAgent.com

 

2012 State of the Market Report-SW Florida Real Estate

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The past two weeks we’ve written Top Tips of Selling Your Home and Buying a Home. This week we thought we’d focus on where the market is headed as so many have asked for an update on the market.

Prices in 2011 were up all year since February and never looked back. Most buyers realized the bottom of our market was back in 2009 at the height of the foreclosure crisis. Inventory has fallen dramatically although it has risen again which is a surprise to many.

Fort Myers - Cape Coral Pending Home Sales Chart
Pending Home Sales in Fort Myers- Cape Coral

Attached is the pending sales chart. As you can see, pending sales are up 15.44% over the previous month. Looking back, February always sees a jump in pending sales as the Northern Snowbirds are here in mass every year when our weather is beautiful and it’s cold up North. This year, we started noticing seasonal visitors back in October which was an early start.

While the pending sales chart doesn’t show it, people have been here looking for months. We believe they realize Florida is still relatively inexpensive compared to 2005 levels, but prices are rising and nobody wants to miss out on a good deal. Unfortunately, we have less inventory to sell, so not all are leaving with a deal. In fact, several commented they wished they would have bought last year as prices are definitely higher and selection is definitely less.

SW Florida Distressed Sales
SW Florida Real Estate Distressed Sales

We still get calls from buyers looking for $25,000 properties 3 blocks from the beach. We’re not quite sure which website they’re looking at. The only thing we can guess is maybe it’s a 2008 or 2009 version that hasn’t been updated. Maybe they’re reading old headlines, or headlines about falling prices up North. Whatever the case, they’re convinced our agents are holding out on them and they move on to call other agents who they think will have those old deals for them.

The reality is the market moved on. The market rarely stays in one place, it is always in flux. Look at the Lee County Total Distressed Sales Chart. Last month only 44.84% of all single family home sales in Lee County were distressed compared to 71.86% back in June 2009. We have seen a rise in traditional sales combined with a fall in foreclosures available to sell which has contributed to higher prices.

We’ve actually seen more homes being built because of higher price points, declining inventory, and builders have been able to cut costs from suppliers and workers looking for work. While building activity has increased, it’s still a far cry from where it was back in the prime of the market.

We’ve got dozens more charts we could share but only so many would fit in a one page article. Suffice it to say that SW Florida is looking up a bit in housing. Our economy seems to be doing mildly better as well, which we ultimately need to fuel and sustain any housing run-up.

We know more foreclosures are on the way, but nothing like what we saw back in 2009. We have a slight backlog due to legal slowdowns because of the robo-signing issue. The market is easily absorbing all new foreclosures we bring to market and in fact has a thirst for more. We don’t believe this thirst will be quenched. We believe this year will produce a good season and hopefully things will continue on.

This is an election year, and the unknowns are always tax laws, gas prices, instability overseas, and the future of our economy. Absent the wild cards, our market looks in good shape and is healing in a positive way. This healing may be slow for some sellers, and fast for some of those buyers looking at outdated headlines or websites, however it is occurring at a healthy and sustainable pace. It is a process that had to occur, and thank God it is occurring.

Whether you’re buying or selling, it pays to get the facts. A mistake will cost you. Each neighborhood can be different, so be careful about relying on countywide information. It may or may not apply to the home you’re considering buying or selling.

Good luck and happy house hunting.

Top 10 Tips for Buying a Home in Today’s Market

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Last week’s tips on selling a home was such a hit we decided to write an article on home buying tips to help buyers.

Top 10 Tips For Buying a Home in Today's SW Florida Real Estate Market

  1. Shop in Your Price Range– One of the more frustrating things a buyer can do is shop in the wrong price range.  If you shop in a higher range than you can afford, the homes in your range won’t seem as acceptable and will feel like a let-down
  2. Get Pre-Qualified– You’ll be competing with other buyers for the best homes on the market.  By being pre-qualified you appear more like a cash buyer than someone who has not even spoken with the bank yet
  3. Home Inspection– We recommend home inspections as the inspector may point out items that are covered under the purchase contract, as well as helpful hints on maintaining your home.  Home inspectors are very helpful in educating you on what you’re buying and best maintenance practices going forward
  4. Survey– Banks don’t always require one and title companies don’t always offer insurance in certain cases when a survey wasn’t done.  It’s best to provide that survey to the title company and let them insure the property with the full survey
  5. Competition With Other Buyers– Remember, the best properties go quickly in any market.  Rarely do we hear a buyer say they want to look at the worst homes on the market.  Because you’ll be competing with other buyers for the best properties, you’ll want to put your best foot forward with your offer. As a buyer, you don’t always hold all the cards.  For instance, you may be a finance buyer competing against cash buyers.  The seller may wonder if your bank will appraise the home at the contract price.  They may wonder if your bank will close on time, if at all
  6. Escrow Deposit– Putting a larger escrow deposit down shows you’re serious.  This is a helpful technique when competing against other buyers.  It usually amazes a seller when a cash buyer won’t put much in escrow.  If they won’t put it in escrow, will they ever come through at closing?
  7. Price– Research the market and determine if the property is priced correctly.  If it is, offer accordingly or you could wake up to see a Sold sign on the home and the seller didn’t take your offer.  Always ask yourself, “If I wake up tomorrow and see the property is sold to someone else, how will I feel?”
  8. Terms– Remember if you’re asking a seller to pay buyer closing costs, it essentially reduces your offer.  Another buyer may offer the same amount as you without asking seller to pay closing costs and you’ll lose out.  Many buyers increase their offer to cover seller paying buyers closing costs, if the property is priced correctly to begin with
  9. Out Clauses– Only use out clauses if you need to, and remember they do weaken your offer.  If a buyer can cancel a contract the seller will wonder why they should take the property off the market for you versus waiting for a more serious buyer
  10. Title– Be sure to look at title policy, especially if it is a foreclosure.  Ask the title company what policy covers and what it does not.  Look at the title exceptions page carefully.  Consider hiring a real estate attorney to review your policy if you have any questions whatsoever.  Eliminating mistakes now can save you lots of time and money later

There is no substitute for working with a good Realtor. Full time Realtors not only know the area, they also assist you with many of the pitfalls you may encounter.  If you need assistance, feel free to call our office at 239-489-4042 and ask for a buyer specialist.

 

 

Top 10 Tips on Selling Your Home in Today’s Market

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Top 10 Tips for Selling Your Home by a Real Estate Expert
Yesterday another agent called me wondering why his 3 listings in Lehigh Acres weren’t selling. After offering some tips to help out, I thought an article on the subject might help others as well.

  1. Curb Appeal– Buyers judge the quality of the home by what they can see.  You will never get to the home inspection stage if the buyer never offers.  Look at your yard, landscaping, outside paint, roof, gutters, etc.  If the outside looks bad, buyers judge the inside probably looks just as bad and they don’t schedule appointments to view.
  2. De-Clutter Inside– If a room has too many things in it, it make the room look smaller.  Additionally, buyers have a harder time envisioning their personals in your home when all they see is stuff.  Take out as much as you can.
  3. Be sure to remove Personal Photos– Buyers always stop and look at the pictures on the wall, and if there are too many the home feels like it’s someone else’s and they have a hard time picturing themselves in your home.  Knick knacks and photos subconsciously turn off buyers.  A few are OK, but too many can be a turn-off.
  4. If a Buyer Can Smell It, We Can’t Sell It– Cigarette odor and pet odors are the #1 turn offs for buyers today. We would suggest smoking outside and removing pets as best you can during the sales process, and hiring someone to remove any smells.  Some breeds emit more odor than others.
  5. Remove Pets For Showings– Buyers love pets, and the problem is many times they walk away remembering how cute your pet was, but they remember next to nothing about your home. Your home is in competition with other homes, and you want your home to be remembered and stand out against all others.  You don’t want your buyer’s time distracted by your pet.  Buyers will not buy your home because you have an adorable pet, but they may buy another if they don’t remember your home.
  6. Be Gone For Showings-We have a saying that every word a seller says to a buyer costs the seller $1,000.  Sellers think they know they’re home better than anybody and therefore they’re the most qualified to sell it.  Buyers typically feel uncomfortable talking with the seller, and usually give feedback the seller wants to hear.  The best and true feedback is a good offer, not meaningless words to appease the seller.  Some buyers like talking to sellers because they glean information they’ll use against the seller in negotiations.  Best advice is to be gone for showings.
  7. Price-Overpricing a home is a sure fire way to make it sit.  After your home is on the market awhile, buyers begin to wonder what’s wrong with it.  After awhile fear kicks in and buyers don’t want to offer too much on a home nobody else wants to buy either.  While the market is Hot today, it is a price sensitive market.  Overpricing is a good way to ward off potential offers.  Many buyers don’t want to insult the seller, so they just offer on another home that is priced where it should be.  Sellers usually think the buyer can always make an offer, and of course nobody ever offers full price anyway so we’ll build in some negotiating room.  This is a myth and statistically it’s proven that seller’s that overprice end up taking less later than sellers who price correctly upfront.  Many homes in the market today sell at or near full price, and some sell for over asking price.
  8. Marketing– Times have changed.  Some agents employ the 3 P’s.  Put a sign up in front yard, place it in MLS, and pray someone else sells it. Successful agents today rely on newspaper advertising, radio, TV, social media like Twitter, Linked In, Facebook Fan pages, YouTube, virtual tours, as well as mobile technology and much more.  Ask to see how your home will be marketed and which national sites it will be syndicated to when interviewing agents.
  9. If You Owe More Than Home is Worth, Select a CDPE-44% of homeowners in Florida are underwater on their mortgages.  It takes a certain expertise to work with the banks on short sales.  Buyers and sellers need lots of education attempting to close a short sale. A Certified Distressed Property Expert can help.
  10. Select the Right Offer-Don’t just take any offer. Many times it pays to wait for the right one.  Why waste time with a buyer that doesn’t qualify, or the loan program they’re pre-qualified for will present issues for your home or association.  Knowledge is power and can save you from many bad transactions.  If you don’t have time to do it right the first time, when in the world will you find the time to do it over?

Be sure to check out our 2012 State of the Market Report