The Ellis Team at RE/MAX Realty Group is holding two open houses this weekend.
Ellis Team Weekend Open Houses July 14-15
2322 SE 8th Street, Cape Coral $165,000
Open Saturday 1PM-4PM
Move-in ready, 3 bedroom, 2 bath canal front home in quiet, well maintained neighborhood. Home features spacious bedrooms, vaulted ceilings, large screened lanai which overlooks dock and canal. All assessments are in and paid.
14091 Oak Hammock Lane $300,000
Paradise for those who love the outdoors and peace and quiet. Spacious family home on 1+acres with 5 bedrooms, 2 baths is surrounded by towering Live Oaks and many tropical plants. Home site borders creek that forms one boundary. Exquisite Brazilian Mesquite floors in the living areas, wood burning fireplace in the family room. Sitting room/den off master bedroom could be used as as office, tv room, nursery, your choice. Large master bath has over sized walk-in shower as well as a jacuzzi tub and dual sinks. Large flagstone patio has a built in fire pit and just a short walk away is a personal putting green. Call today to see this beautiful property. Some furniture available separately.
Our predictions are beginning to sound like a broken record, but they’re not really predictions at all as anybody who can view a chart can easily see what’s going on, and until something changes the trend may continue.
It’s been said if you put 10 economists in a room you’ll get 10 different opinions. I think it’s easy to see we have a supply and demand situation whereby the market is eating up more homes than are coming to the market. For instance, in April 868 homes came on the market while 1,097 sold. Additionally, some homes expire or get foreclosed upon and don’t re-enter the market in a timely fashion, so this impacts the numbers even more.
As you can see by the attached charts, inventory has been going down since January of this year, and is down significantly since January 2011. In fact single family home listing inventory is a mere 55% of what it was back in January of 2011.
Median single family home prices were $88,500 in January of 2011 and today they stand at $132,000, up 49.15% in just less than a year and a half. Prices are up 6.97% since January 2012.
Buyers are increasingly panicking when buying property as they’re often in multiple offer situations. It forces them to carefully consider how important the home is to them. Quite often it depends on how long they’ve been in the home buying process as reality tends to set in after several failed attempts to purchase their home.
Buyers typically look at several homes then rank them in terms of desirability. Quite often a buyer will make an offer on their #1 choice. If they miss out, they may move on to their #2 choice. Some buyers wait for another like kind home to enter the market, but their hope turns to disappointment when that homes doesn’t appear, or if it does it’s priced significantly higher than the one they lost out on.
This whole scenario sets up an unrealistic expectation that future homes will meet their #1 choice criteria in terms of desirability and price but the reality is the next home may be less desirable and more costly in a rising market with limited inventory.
After the buyer loses out on 4-5 homes that reality tends to hit and they reset their expectations. It’s an uncomfortable process and one that each buyer addresses in their own way and in their own time frame. They can fight the market and live in denial and prolong the process and possibly never buy a home, or they can accept the market, educate themselves, and win their 1st choice, or hopefully their 2nd choice.
Sellers go through the same scenario in a buyers market. A seller may require a certain price or terms only to be left at the altar by buyers who liked their home but found a better offer from another home. It really doesn’t matter if the buyer or seller likes the market we’re in. The market just is what it is, and if they want to accomplish their goal it pays to learn the market sooner rather than later. In each case lack of knowledge can cost the buyer or seller significantly in price, desirability, and peace of mind. It pays to work with a professional that can educate you on your options.
Good luck, and Happy House Hunting! We at the Ellis Team at RE/MAX are here to help if you need us.
We’ve recently been testing a concept to gauge consumer interest at a subdivision level. For years agents have been sending out Just Listed or Just Sold postcards, or even market updates to communities. Typically this only reached sellers. This was OK because the target was always the sellers who might list their homes. It’s a practice in the industry known as “Farming.”
We thought buyers might also be interested in similar information, but reaching them in addition to targeted sellers in that area can be dicey. You can’t just mail to a certain area as the buyer could come from anywhere.
We thought “What if we could target both worlds, the buyer and the seller?” One way to target buyers is to reach them on the Internet for specific search items. For instance, let’s say a buyer is looking to buy in Reflection Lakes. If we could somehow provide this list of data when buyers are searching, would buyers find that helpful?
We don’t know, but our hunch says they might. We’ve researched a way to provide a map of an area which shows all the homes available for sale, all closed sales within a certain time frame, and all pending sales and pinpointed them on the map. Additionally, if you click on the pin, you get additional information on the home, like list price, sold price, size, age, pool, waterfront description, bedrooms, bathrooms, and much more. You can customize it to display about anything you want.
We even went so far as to provide links to additional information if available, virtual tours and more. In this way, a buyer or seller can quickly see a homes location on a map and compare it with other like kind homes for sale. It is color coded and sorted by status, so you can look at the solds to get an idea of what homes are selling for or just actives. Perhaps you’re riding down the street and just want to know what it’s on the market for.
The map is set for a particular point in time, however it can be updated at any time. The agent selects the fields to display. The consumer can zoom in or out, as well as click on street view to look up and down the street and view the homes photos, or even take a satellite view to get an idea of the terrain and the surroundings of the community.
We exported all this information into a Google map., so the possibilities are endless on how you can view these homes. It’s really kind of fun. We liked it, so we thought consumers might too,
We selected fields we thought the consumer would be interested in. These fields are flexible and we can add or subtract when building the next map. It took me about an hour to setup this map in Reflection lakes. If you’d like to view it, simply go to www.Reflectionlakes.com
We can setup a map like this for any area and import data from the MLS. If you live in a community you think would benefit from something like this, give us a call at 239-489-4042 or send me an email Brett@topagent.com and I’ll look into it. If you think it’s missing something, or have feedback, we’d like to hear it.
If you think we’re nuts and nobody will use it, you can let us know too. Feel free to email us or comment on our Blog http://blog.topagent.com
We honestly don’t know if the public will use it or like it. We do know it’s cool and useful to us, and we enjoy trying new things if they have the potential to help in the buying or selling process.
Stay tuned for future updates for other areas around Lee County on our website at Topagent.com
The home inspection industry has sure changed in recent years. Not long ago buyers would hire a home inspector to determine if there were issues with a home. If there were, the standard contract called for seller required repairs up to 3% of purchase price for covered items and up to 2% for wood destroying organisms.
Contracts have changed and now seller required repairs are 1.5% for covered repairs if at all, as more and more contracts are now As-Is with right to inspect. The types of inspections have also changed, so we’ll attempt to inform you about the various types of inspections. In any event, we do recommend a buyer have a home inspection regardless of whether the seller agrees to make any repairs just for the education and knowledge about what you’re buying.
First there is the pre-purchase home inspection. Buyers use this to discover items that may not be working properly and educate themselves about the systems of the home. A home inspector is a great resource as to how various systems operate and the proper maintenance of these items. You may or may not be able to use this report to have seller correct deficiencies depending on the contract you used and the items discovered.
There is also a separate 4 point inspection report your insurance company may require, typically on homes older than 20 years. The insurance companies specifically want information on 4 areas, including the HVAC (Heating, Ventilation and Air Conditioning), electrical wiring and panels, plumbing connections and fixtures, and the roof.
Insurance companies have become increasingly reluctant to issue Homeowner Insurance Policies on older homes (usually 25 years old or more). Their common concern is that there may be conditions in an older home that could become a liability to them. For instance; a home with a roof nearing the end of its reliable service life may fail while under the policy and the homeowner may seek reimbursement from their insurance company for damages to the home or its contents.
Similar concerns extend to the condition of the HVAC, electrical and plumbing systems in an older home. If these elements are in poor condition, in need of being updated or replaced or were improperly installed, they may fail and cause fire or water damage to a home.
Newer homes are assumed (by the insurance companies) to not have these problems as frequently as older homes. There is a standard form for this type of inspection that must be filled out by a qualified inspector or contractor.
There is also a Uniform Wind Mitigation Verification Inspection which provides significant discounts to a homeowner if the home qualifies. The state has recently changed the reporting rules this year making it harder to qualify for such discounts. More proof is needed in the report including photos.
There is also a Roof Certification Inspection insurance companies require when the roof is approximately 15 years old. The 4 point inspection report may suffice if your insurance company asks for this inspection. Check with your company.
Lastly, don’t forget the Defective Chinese Drywall, Mold, or Radon reports. Defective drywall was typically found in homes built around 2005-2007 but that’s not absolute. Keep in mind re-modeled homes could be affected as well. The name comes from China as they exported the vast majority, but truth be known there was defective American drywall in the past as well.
Discuss with your inspector which type of reports would benefit you most given the property you are buying. Inspectors tend to cover themselves, so they will notate anything and everything they see as a concern or potential concern. This is good as it educates a buyer who has never lived in the home about what to look for now or in the future.
Buying a home seems like a scary proposition, however it can be fun and enlightening process if you take the time to learn what’s involved with home ownership. It’s not time to freak out just because items show up in the report. Many of these items are to inform you of what to look for in the future. Isn’t it better to purchase knowing what to look out for than being blind-sided later on by unexpected surprises? We think so.
Good luck and happy house hunting. If you need help buying or selling, don’t hesitate to call us. We’re here to help. 239-489-4042
The Ellis Team at RE/MAX Realty Group in Fort Myers has created an interactive map for searching data in Reflection Lakes in South Fort Myers. By clicking on a listing the map will give you detailed information on the property including links to further detailed information. If a virtual tour is available it will link to that as well.
The Ellis Team at RE/MAX is accepting new listings. We’ve sold practically everything and we’re ready to help more people. If you haven’t heard this before, you probably will in the future. It should be a common theme.
Prices have been rising, that’s well documented. Let’s illustrate why. We’ve created a few graphs that show official inventory levels and added a month’s supply of inventory graph.
Last month only 868 new single family listings came to the market compared to 1,413 at this time last year. Fewer listings coming to the market shows why we have fewer listings on the market today than in months past. Officially we’re down to 4,169 single family homes which includes villas and duplexes. It also includes Charlotte, Hendry, Collier, and Glades county properties listed in our MLS. In the coming months those other counties will be dropping out of the official numbers, so look for Lee County numbers to fall even further.
Combining a trend of less properties coming to the market each month is the market’s ability to absorb everything the supply side throws at it. Let’s just say the demand side’s appetite is larger than the supply side’s ability to deliver.
If you’ve ever hear the phrase “Your eyes are bigger than your stomach,” you know the concept. Well, in this case, the eyes aren’t bigger. The stomach is easily devouring everything it sees. Buyers in many cases are in bidding wars. That’s not to say transactions are easy. In fact, perhaps they’re more difficult than ever to close.
This market has a large appetite, but it needs teeth to chew on it and fully digest what it’s about to consume. Some properties have title issues. For instance, we’ve been working to close a file that had an open pool permit from years ago. Another had old code violations that must be cleared up including hearings with the city or county. All these take time, and some buyers aren’t willing to wait.
We’ve seen buyers walk believing they can just go find another great deal. That’s until the realization sinks in that they might want to hang in there on their current deal because the alternatives may not be as nice, and may cost a lot more. And who’s to say the slim pickings left on the market don’t also have unknown issues that need to be worked on. Though frustrating it may be worth it to hang in there.
Professional agents are the teeth that get in there and chew on the issues and get them worked out. In the end, everyone is happy, but it can be frustrating when you’re scheduled to close only to find out a week before closing there are issues that will take some time. We tell our buyers not to get too attached to the closing date on the contract, because issues have been creeping up that must be dealt with.
When you look at the month’s supply of inventory standing at 3.5 months, you quickly realize buyers are not in the driver’s seat right now. Choices are slim, prices are rising, and time is ticking. Buyers want to capitalize on this buying opportunity with lower prices, low rates, etc.
Buyers should realize the seller or the title company isn’t the enemy. The competitor is other buyers. If a buyer opens up that contract even for a second, it gives another buyer the chance to swoop in and take it.
When you find a property you like, ask yourself how much more will this property cost me down the road if I wait? Ask yourself, what if I don’t find something I like as much? Back in 2009 properties were entering the market fast and furious. Times have changed, and the selection just isn’t there.
Don’t be discouraged. There are great properties out there, and more coming. You just have to be educated ahead of time so when that great deal comes, you’re ready to pounce. The time to learn the market isn’t when the property hits the market, it’s before. If you wait to learn, you’ll have your lunch handed to you by another buyer who took the time to seek advice before their desired home hit the market.
And if you encounter a few hiccups, work with an agent who’s used to digging in and getting problems solved. As the market continues to rise in value, you’ll be glad you did.
Good luck and happy house hunting. Call the Ellis Team at 239-489-4042 if you need the assistance of a professional.
For the most part the Lee County market bottomed out in 2009 at the height of the foreclosure boom. We had some fluctuations throughout 2010, however most agree the bottom was in 2009.
It’s important to note that even though we had an influx of high levels of distressed sales back in 2009, the market was able to absorb these properties, illustrating that we have a market, even at reduced prices.
Some markets don’t really have a market at any price. Detroit has been down for years and many properties don’t sell even for $1,000. The banks really can’t give them away, so in some cases they’ve just demolished the home for liability purposes. I haven’t checked on the Detroit market in a little while, but I haven’t heard any differently, although we’re certainly not Detroit experts.
We’ve learned that we do have a market, and that high foreclosure rates wouldn’t last forever. Foreclosures are down significantly and we are seeing traditional sales rise. We know that distressed sales weigh down the market, as evidenced by the median sale prices of distressed homes of about $80,000 compared to the $150,000 median prices for traditional sales. As prices keep rising more sellers who would like to sell will be able to.
Inventory is down to a 3.5 month supply and has been falling steadily. Most people consider a normal market to be somewhere around 6 months supply. Anything too much above that becomes a buyers market and anything much below that becomes a sellers market. There is no question we’re in a sellers market right now as it’s not uncommon to see multiple offers on new properties entering the market that are priced correctly.
Before sellers get too excited reading we have a sellers market, keep in mind general economic conditions still apply. Buyers still must get mortgages in many cases, and the property must appraise. Incomes are not rising substantially, and unemployment is still too high. Buyers have a hard time saving for a down payment in today’s economic climate. Everything just seems to cost so much, from gas, to insurance, to groceries. A young family or single person just has a hard time saving with these conditions.
If the economy were to turn around, prices could probably rise faster. Keep in mind; it’s all supply and demand. We have demand at the right price, and we have limited supply. As prices rise, we expect to see increasing supply as sellers could then afford to sell. Many cannot now because they owe more that house is worth and don’t want to take the hit to their credit report.
Prices are still too low but rising. Inventory is too low and won’t rise overnight which will allow for price appreciation. Many people are upside down in the 6 figure range that a 10k or 20k rise won’t help, but as prices rise it does free up more sellers to enter the market. If our prices suddenly doubled, I assure you we’d see many more homes on the market, which is why it won’t suddenly double.
Conditions today favor a measured approach. Supply and demand are in play, and if ever a student wanted to study the economic forces, the SW Florida real estate market would make for a great example.
We hope this information on the market is helpful, and if you need help buying or selling in today’s market, feel free to give us a call. 239-489-4042
Last week we wrote about the influence of mobile marketing and how it’s influencing real estate buying. We must have touched a nerve because the last portion of the story was about a new mobile app and several people emailed asking for the link for this free tech tool. Mobile Apps For Real Estate!
Because there was so much interest, we decided to do a follow-up and concentrate solely on this new app. Unlike other apps like Zillow, Trulia, Homes.com, Realtor.com, the RE/MAX app doesn’t sell advertising opportunities per zip code to agents from various companies, so there isn’t pressure from agents trying to convert an advertising opportunity.
The RE/MAX app simply puts detailed information in the hands of the consumer and lets the consumer make choices. Most apps let the consumer decide when to request information, but RE/MAX isn’t selling consumer data to companies for profit. This app is solely a benefit to consumers provided by the RE/MAX network, and any consumer info is available only to RE/MAX agents when a consumer decides to reach out and request information.
There are some very cool things you can do with this app. For instance, if you have your GPS on, the app will show where you are on a map and show homes on the market in your area. Users can also enter search criteria such as number of bedrooms, price, location, etc.
The app provides instant access to homes in your search along with listing details and available photos. It also provides turn by turn directions to homes you want to see, interactive maps for navigating neighborhoods, and the ability to save searches.
There is an email option to share properties with your friends and family. There’s even an integrated mortgage calculator for instant calculations on how much the payments would be.
Sellers love the app because they can find out how their neighbors are pricing their homes. If a new home comes on the market, a seller can just look it up instantly. Buyers love it because as they’re driving around they have the power of knowing the price of each home, the details of the home, and pictures right in the palm of their hand.
For years buyers would call about homes they were in front of and be totally surprised at prices in a neighborhood. This free tool is a powerful education technology that will save buyers much time. Buyers still seek out quality, professional agents to answer their specific questions the Internet cannot, but this piece of technology sure empowers the consumer and shortens the learning curve.
Judging by the interest last week, we think you’ll like this tool as well. And best of all it’s Free. Simply email me Brett@topagent.com and I’ll send you the link to get this tool for Free. Good luck and happy surfing!
We’re seeing another shift in buying habits and it’s affecting everything from store coupons to selecting hotels to buying real estate. Yes, we’re talking about mobile marketing. Mobile Marketing Influencing Real Estate Buying.
Years ago the Internet came along and everybody said newspapers and TV stations would no longer be needed. We found this wasn’t true; however the delivery methods have changed a bit since the advent of the Internet.
Ironically now some are saying the Internet isn’t needed because everything is going mobile. I’ve seen reports that there is now more traffic to websites via smart phones than computers. While it is a fact more people have the power of information literally in their hand wherever they go, there is no substitute for wasting time at work on a big screen surfing the Internet, at least for now.
The iPhone was a big player in bringing the mobile world to the consumer, but many would be surprised to know that Android is actually the bigger player today. Android just crossed over the 50% mark in January of this year and market share is still growing. The only thing constant is change. Years ago Netscape was The browser in the industry. Microsoft managed to knock off Netscape with Internet Explorer. Now Google Chrome is making inroads along with Mozilla, Firefox, etc.
Remember when Yahoo was the thing in search engines? Today it’s Google with Microsoft fighting for relevance with Bing. We don’t know what tomorrow will bring, however we do know what works today.
If you’re in real estate, you’d better design your website to work on a mobile phone. If you visit our website Topagent.com from a mobile device it recognizes the mobile device and gives you the option to view on a mobile optimized website. We’ve included a photo example of one of our virtual tours. All our virtual tours are optimized to play on any smart phone or phone capable of viewing the Internet. Of course we still have our full blown feature rich tours available for those old fashioned people viewing tours at work or home on a laptop. That sounds kind of weird talking about people on the Internet as old fashioned, but kind of fun I guess too. My how times are changing!
The point is, if you want to be successful in business, you’ve got to be where the customers are. If a business employs old technologies, they’ll get diminished results and wonder why their leads are falling off. They’ll blame it on the Internet and say things like the Internet just doesn’t work anymore. We heard that about newspapers, yellow pages, and radio advertising in the past. They all still work, but customers buying habits are evolving, and if you want to maximize your success, it pays to find out what the consumers are doing and provide solutions.
We have several websites. Even though Android is now king of the mobile market, we can tell you that the iPad is 74.76% of our mobile users on our Topagent.com site. These numbers change on various sites. As more tablets are released this year featuring Android, perhaps those numbers will change. The key is you have to know your market, design your marketing to work on the various technologies, and be available to answer customers in the fashion they like.
If a customer calls you speaking English, they generally would like to speak to someone in English. If a customer calls speaking German, chances are German is their preferred language and they’d like to speak with someone that speaks German.
The same is true with technology. Many people will contact you from their Smart phone. It doesn’t mean they’re ready to talk to you yet. If they ask you to email or send a text of a home, you’ll probably lose that buyer if you fax it to them because that’s more comfortable to you.
If you want to pick up more German buyers, it might help to learn the German language. If you wish to pickup more buyers today, it might help to learn to speak their tech language. If a customer texts you, I’d respond with a text. If you’re not willing to learn the technologies customers want, the real estate industry will pass you by. But then again, so will most industries.
If you don’t know what a QR code is, how to text, Twitter, Facebook, LinkedIn, Pinterest, provide virtual tours, syndicate your listings, do videos on the market, etc. you might be well served to visit Best Buy and look around at how they market with Bar scans, and what devices will read them. Watch customers compare prices the store is offering versus the Internet, and listen to how these devices are shaping buyers decisions. If you can see all this in half an hour at the electronics store, just imagine what is happening on the street in front of the home.
RE/MAX has launched a mobile app that allows you to search all the homes on a map directly from your mobile phone. You can see what homes sold for, what people are asking, and photos of the home you’re in front of. Talk about changing the dynamic of house shopping. Customers can text, call, or email an agent directly from the street for more information. If you’d like this cool new free mobile app send us your email address and we’ll send you the link. Brett@topagent.com
Have you ever negotiated with someone and felt like you weren’t getting anywhere, or felt like you’d like to ring their neck because they weren’t reasonable. After negotiating thousands of transactions and teaching negotiating sessions for the Council of Residential Specialists and national conventions, we’d like to offer a few tips that may help you in the future. While we could probably write a book, we’ll offer what we can in about negotiating to win.
Some people feel they’re excellent negotiators as evidenced by their ability to out-negotiate anybody and win at someone else’s expense. This rarely works unless one party is all out of options and there are no other interested takers. In this market, there are usually several interested takers. Let’s talk about some tips that may lead you to a successful deal.
Find out what’s most important to the other party and try to give it to them. Most people think it’s all bout price, but sometimes the closing date is important, or the move in date. Maybe it’s the personal items or the furnishings. I’ve seen some people emotionally attached to a washer and dryer a family member gave them as a present. Ask yourself, is that washer/dryer more important than the overall deal? This question could be asked of either side.
One tactic that rarely works is when one side asks to split the difference as a gesture of good will. This works when both sides feel each has negotiated in good faith and you’re close on the deal. This will blow up the deal when this isn’t the case. Here’s an example. Let’s say a seller prices their home at $200,000 and it’s truly worth $200,000. A buyer makes an offer at $150,000 and the seller laughs. Maybe the seller goes to $198,000 and the buyer goes to $160,000. The seller says they’ll go to $195,000 just to keep it going, but they’re about done. Buyer and seller are now $35,000 apart when the buyer says, “let’s split the difference and go to $177,500.” The deal dies.
Splitting the difference is usually the quickest way to death of a transaction. It’s all a function of where you started. Had the buyer started at $190k and they were only a few thousand apart it might work, but using this tactic when the buyer was unrealistic to begin with only exaggerates an unrealistic deal.
You might save a little bit on price if you give the seller something they want. Maybe the seller has kids and doesn’t want to move them until the end of the school year. They might sacrifice a little bit of money knowing they have their house sold but occupancy until the end of the year for the kids. If that works for the buyer, it’s win/win for both buyer and seller, and buyer saves a little bit of money while helping out the seller.
Another tip is research the market and offer fairly upfront. I’ve seen buyers get better deals by making a fair offer upfront rather than insulting the seller and offering far below market value. Everyone wants to get the best deal they can. This includes buyer and seller. If a buyer insults the seller, the seller is on guard and subsequent dealings tend to be contentious, so the seller counters higher to a buyer they don’t like than a buyer that was fair to begin with.
Don’t use gimmicks and deceit. Make your offer clear and complete. If you try to back-end your way into a negotiation the seller or seller’s agent will sniff that out and it will usually backfire. If you’re clear upfront with your intentions, contingencies, etc. you’ll build trust and perhaps you can get what you’d like. When trust is broken on the front end, it’s very difficult to get what you want through trickery and deceit. I don’t have room for examples and we could list plenty.
Work with an agent that listens and will guide you. Listen to your agent. Agents work with people all day long, every day for their job. Experienced agents who are successful have learned a thing or two about dealing with people and negotiating for success. If you find yourself out-negotiating the market but never ending up with a purchase or a sale, you might be out-negotiating yourself. It pays to seek the advice of a negotiating pro. It pays even more when you listen and act upon it.
If you’re a buyer, your success could very well be getting your first choice or moving on to your 4th or 5th favorite home. If you’re a seller, your success could very well be negotiating to close with your first buyer or waiting months and several price reductions later to close with your 4th or 5th buyer.
Your agent’s marketing brings buyers to the table. What you do with it can make those efforts worthwhile or futile.