Hi Everyone!
I only have a few minutes, but I wanted to catch everyone up whats going on in our housing market. Foreclosures at every price range has become the norm. About 30% of our current listings are foreclosures. Almost every transaction we do right now has multiple offers. The people buying homes right now are getting amazing deals which are sometimes more than 50% of our markets peak prices a few years ago.
The biggest question I get is about consumers having a home to sell. What I tell them is that it is all relative. This means that sure you won't get what you would have received in 2004 for a home, but the buying opportunity right now is so good it makes sense to make your move now. Of course, you won't get what you want for your home right now, but this is probably your best chance to move up in your home and it might be the best chance of our lifetime! Houses that were selling over $1 million are now selling around $700k or so. Some are even selling at a higher discount.
I'm in CA right now for the holidays spending time playing with my Granddaughter until Jan. 2. We are coming into 2009 and between the Interest rates and low housing prices, this is the year. By the way, if you are a first time homebuyer...don't less this time pass you by. It might be more difficult to get a loan these days, but if you have good credit and have been thinking about it, take advantage of this once in a lifetime opportunity.
My Granddaughter is pulling at my leg right now...gotta go!
Happy New Year!
Mitch
Sunday, December 28, 2008
Saturday, November 22, 2008
Something has happened since the election in Brevard County Florida!
Hi Everyone!
Wow! It's like almost as soon as the election was over, the buyers started coming out in force! That's a good thing for us in the Real Estate industry. The best part for our buyers...the prices are very low! So far this month we have 23 new contracts with 11 of them being under $100k. Personally I never thought that the prices would come down this low again. We are pretty much at 2002-2003 pricing on almost every home. Crazy!
The foreclosure market, as we have all heard, is dominating our sales. We have become quite the experts on foreclosures and short sales. I'm still not a big fan of short sales for our buyers unless you have a lot of time to kill and don't need to make any plans. They are still taking 3+ months most of the time for the banks to respond. However, foreclosures are abundant in every price range. We are even doing a Luxury Foreclosure Open House shortly (contact debbie@mitchrealty.com for dates) and featuring homes in Brevard over $500k that are in foreclosure. One interesting note on foreclosures that is different from 2001 when I sold many of these to investors. Most of these are in pretty good shape. Of course when you get down in the $50k range the choices are in usually rough shape. This past month though, we closed on a home for one of our buyers that was 2100 square feet built in 2006 for $124,000 and it was in great shape. This home in 2005 would have easily sold for $250,000.
There is a down side to foreclosures. When buying these, you are at the mercy of the bank. They dictate the rules of how the transaction is going to go. It's one of the reasons you should be using a Realtor who is experienced in how to work these deals. They can be tricky. With that said, if you are using one of my Agents at Tropical Realty, you can be sure that they are experienced with these. You can also be sure that our Agents are working full time. Unlike most Real Estate Companies, we have continued to grow even in this down time and our Agents are busy. When many Agencies are packing it in and about 25% of Realtors have left the business or taken full time jobs, our Agents continue to work hard and full time taking care of our buyers.
The one other point I want to make on the foreclosure market is that fact of multiple offers. Almost every good deal has multiple offers...just like 2004 when things were crazy. Let's face it, those who have been watching our market the past couple of years know this is about as low as we can go on some of these homes. We had a couple in today from Canada who is also a Realtor there. She was shocked when she put an offer on a home and found out it was a multiple offer situation. I talked with a foreclosure company the other day and they said that on some properties they are receiving up to 30 offers.
With that said, if you are making an offer on a foreclosed property and you really want it, don't try to bargain for it. You most likely will not win. We recommend offering full price (which is very low anyway) and if the house is excellent, you might want to go $5k above full price. To the banks, it's all about the highest offer. Even on the homes that are not so great, the banks are only coming down 5% and sometimes 10% from their listings prices. These homes are already extremely low priced and the banks have lost so much money. They are going to try to get as much as possible.
So, it's time to get to bed because I need to get up at 5am to get ready for my every Saturday morning golf. It's going to be a little chilly this morning...I think it's in the 40's. Yikes! However, it will be in the high 60's this afternoon and absolutely beautiful! As always, if you need anything, we are here to help. Don't hesitate to call or email us.
Have a fun weekend!
Mitch
Wow! It's like almost as soon as the election was over, the buyers started coming out in force! That's a good thing for us in the Real Estate industry. The best part for our buyers...the prices are very low! So far this month we have 23 new contracts with 11 of them being under $100k. Personally I never thought that the prices would come down this low again. We are pretty much at 2002-2003 pricing on almost every home. Crazy!
The foreclosure market, as we have all heard, is dominating our sales. We have become quite the experts on foreclosures and short sales. I'm still not a big fan of short sales for our buyers unless you have a lot of time to kill and don't need to make any plans. They are still taking 3+ months most of the time for the banks to respond. However, foreclosures are abundant in every price range. We are even doing a Luxury Foreclosure Open House shortly (contact debbie@mitchrealty.com for dates) and featuring homes in Brevard over $500k that are in foreclosure. One interesting note on foreclosures that is different from 2001 when I sold many of these to investors. Most of these are in pretty good shape. Of course when you get down in the $50k range the choices are in usually rough shape. This past month though, we closed on a home for one of our buyers that was 2100 square feet built in 2006 for $124,000 and it was in great shape. This home in 2005 would have easily sold for $250,000.
There is a down side to foreclosures. When buying these, you are at the mercy of the bank. They dictate the rules of how the transaction is going to go. It's one of the reasons you should be using a Realtor who is experienced in how to work these deals. They can be tricky. With that said, if you are using one of my Agents at Tropical Realty, you can be sure that they are experienced with these. You can also be sure that our Agents are working full time. Unlike most Real Estate Companies, we have continued to grow even in this down time and our Agents are busy. When many Agencies are packing it in and about 25% of Realtors have left the business or taken full time jobs, our Agents continue to work hard and full time taking care of our buyers.
The one other point I want to make on the foreclosure market is that fact of multiple offers. Almost every good deal has multiple offers...just like 2004 when things were crazy. Let's face it, those who have been watching our market the past couple of years know this is about as low as we can go on some of these homes. We had a couple in today from Canada who is also a Realtor there. She was shocked when she put an offer on a home and found out it was a multiple offer situation. I talked with a foreclosure company the other day and they said that on some properties they are receiving up to 30 offers.
With that said, if you are making an offer on a foreclosed property and you really want it, don't try to bargain for it. You most likely will not win. We recommend offering full price (which is very low anyway) and if the house is excellent, you might want to go $5k above full price. To the banks, it's all about the highest offer. Even on the homes that are not so great, the banks are only coming down 5% and sometimes 10% from their listings prices. These homes are already extremely low priced and the banks have lost so much money. They are going to try to get as much as possible.
So, it's time to get to bed because I need to get up at 5am to get ready for my every Saturday morning golf. It's going to be a little chilly this morning...I think it's in the 40's. Yikes! However, it will be in the high 60's this afternoon and absolutely beautiful! As always, if you need anything, we are here to help. Don't hesitate to call or email us.
Have a fun weekend!
Mitch
Thursday, November 6, 2008
Just got back from a Tony Robbins Seminar!
Hi Everyone!
So yes, when I decided to take the plunge and go to a Tony Robbins Seminar, I couldn't believe I was wasting $500 to go to a rah rah session. However, when I left the Seminar on Monday, I couldn't believe it was ONLY $500!
Not only did I learn a lot about myself and learn certain things that were holding me back, but I walked on Fire on Friday night. It was quite amazing. Here I am, along with 3,500 of my new friends, steering down a 10 foot path of 2,000 degree embers. And then, without hesitation, you just walk through it as if you were walking through the shoreline of the beach. The only damage to my feet was the black soot that I had to wash when I got home on Friday night.
So now my thoughts are, if I can walk on fire, what can't I do! I did not go alone, 5 of my Agents also went with me and had the same awesome experience. In just the last few days since we have all returned to our daily lives of work and family, the energy these Agents, and myself have, is amazing. Basically you learn to put yourself into a "Peak State" which allows you to do anything. I did have someone tell me that 2,000 degree embers are not really hot...that's why they use them they said. However, I can tell you that when you see someone in front of you throw down fresh toasty flaming embers, it's hot has heck!
It will be interesting over the next few months to see how my agents and myself utilize and gain momentum with these new tools...or will they just disipate? I'm very confident in myself but can't speak for my Agents. If you have Sammi, Julie Cambe, Melissa, Charlies or Nick as your Agent, you might just see them float on air when you are with them. They are all excited as I am too!
One thing that Tony Robbins did say though is very important for our business and just as important for you, the consumer, is that this is the time to make money in Real Estate. Any good investor will tell you that you make your money on a home when you buy it. If you have been on the fence of whether or not you should buy, then it's time to drop those fears and jump in. Let us help you find some of the best deals that we haven't seen in years!
If you would like a current list of foreclosures, please just click on here and we will gladly send you a list of all the foreclosures...there are a lot and set you up in our automated listings update system so you get first shot at the great deals! Just go to:
http://www.melbournehomesearch.com/index.cfm/Foreclosure_Property_List
As always, we look forward to helping you!
Mitch
So yes, when I decided to take the plunge and go to a Tony Robbins Seminar, I couldn't believe I was wasting $500 to go to a rah rah session. However, when I left the Seminar on Monday, I couldn't believe it was ONLY $500!
Not only did I learn a lot about myself and learn certain things that were holding me back, but I walked on Fire on Friday night. It was quite amazing. Here I am, along with 3,500 of my new friends, steering down a 10 foot path of 2,000 degree embers. And then, without hesitation, you just walk through it as if you were walking through the shoreline of the beach. The only damage to my feet was the black soot that I had to wash when I got home on Friday night.
So now my thoughts are, if I can walk on fire, what can't I do! I did not go alone, 5 of my Agents also went with me and had the same awesome experience. In just the last few days since we have all returned to our daily lives of work and family, the energy these Agents, and myself have, is amazing. Basically you learn to put yourself into a "Peak State" which allows you to do anything. I did have someone tell me that 2,000 degree embers are not really hot...that's why they use them they said. However, I can tell you that when you see someone in front of you throw down fresh toasty flaming embers, it's hot has heck!
It will be interesting over the next few months to see how my agents and myself utilize and gain momentum with these new tools...or will they just disipate? I'm very confident in myself but can't speak for my Agents. If you have Sammi, Julie Cambe, Melissa, Charlies or Nick as your Agent, you might just see them float on air when you are with them. They are all excited as I am too!
One thing that Tony Robbins did say though is very important for our business and just as important for you, the consumer, is that this is the time to make money in Real Estate. Any good investor will tell you that you make your money on a home when you buy it. If you have been on the fence of whether or not you should buy, then it's time to drop those fears and jump in. Let us help you find some of the best deals that we haven't seen in years!
If you would like a current list of foreclosures, please just click on here and we will gladly send you a list of all the foreclosures...there are a lot and set you up in our automated listings update system so you get first shot at the great deals! Just go to:
http://www.melbournehomesearch.com/index.cfm/Foreclosure_Property_List
As always, we look forward to helping you!
Mitch
Sunday, October 12, 2008
Brevard County Real Estate Investments and more...
Hi Everyone!
Well it was a tough week on Wall Street. For those of you who have most of your investments in stocks, you lost a large percentage of your portfolio. I'm not an expert in stocks by any means, but I would imagine, if the companies you are invested in are solid, then you should just hold on to your stocks and wait for them to come back. Unlike 2000 when the stock market crashed with the Internet Bubble Burst (I was a victim both in my stock portfolio and in my Internet company) the stock market is still built on a lot of solid companies. In fact, it would make sense that after a week like last week, this might be a good time to buy up stocks. You know when a stock like GM is down to the lowest it has been since 1949, then it probably is a safe buy. However, like I said, I'm not an expert in stocks by any means so don't take my advice unless you talk to a professional.
What I am though, is a professional in the Real Estate field. If you are or have taken your money out of the stock market, this is a great time to invest in Real Estate. As you probably know, the Real Estate Market has crashed for almost 3 years now. Home prices are back to 2002 and 2003 pricing which was right at the beginning of the boom. You can now buy a home and actually have a positive cash flow for your rental in most cases. Finally, the people who are either not taking advantage of this market or have lost their homes to short sales or foreclosures still need a place to live...therefore, the rental market is pretty good. Of course it is still price driven and many people, including myself, are upside down in our investments and must try to get a higher rent.
So what does this mean to you? It depends on your goals. If you have thought about investing in Real Estate, this is probably a great time to do so. Currently you can buy new construction homes for as low as $120k (1200 sq. ft.) on a lot. We haven't seen that for quite some time. You can also buy homes that are just a couple of years old and up to 2000 sq. f. for the same price. It certainly is a great time to buy. The only problem that may arise for you is the financing. Currently the loan market is totally credit driven. This means the better your credit, the better your interest rate.
If you are buying a primary home, then this might be the chance of your lifetime to grab a piece of paradise at an awesome price. The way things were going there up until 2005, I didn't think my children would ever be able to buy a home in their lifetime. However, like always, the market corrected itself and home prices are now affordable again! I don't know that I would wait to long to buy a home as prices and interest rates are bound to rise again at some point. After all, Brevard County is the least expensive Waterfront Community in Florida. Over the next 10 year period, pending they can sell their homes, the 77 Million Baby Boomers will be heading for retirement. Florida will always remain one of the top destinations for retirees. With Brevard County being so affordable, you can be sure that this market will increase in value once things normalize! Of course I have no crystal ball to tell you when that will be, but it seems to me that prices can't go much lower making Brevard County's losses, your opportunities!
If you would like to search for a home or investments in Brevard County, just go to:
http://www.melbournehomesearch.com/index.cfm/Search_MLS
Here you will have access to every listing in Brevard County Florida. Whether you are looking for a tropical home, a waterfront home or a condo, you can find it all right here.
As aways, I look forward to helping you. Have a fun Sunday!
Mitch
Well it was a tough week on Wall Street. For those of you who have most of your investments in stocks, you lost a large percentage of your portfolio. I'm not an expert in stocks by any means, but I would imagine, if the companies you are invested in are solid, then you should just hold on to your stocks and wait for them to come back. Unlike 2000 when the stock market crashed with the Internet Bubble Burst (I was a victim both in my stock portfolio and in my Internet company) the stock market is still built on a lot of solid companies. In fact, it would make sense that after a week like last week, this might be a good time to buy up stocks. You know when a stock like GM is down to the lowest it has been since 1949, then it probably is a safe buy. However, like I said, I'm not an expert in stocks by any means so don't take my advice unless you talk to a professional.
What I am though, is a professional in the Real Estate field. If you are or have taken your money out of the stock market, this is a great time to invest in Real Estate. As you probably know, the Real Estate Market has crashed for almost 3 years now. Home prices are back to 2002 and 2003 pricing which was right at the beginning of the boom. You can now buy a home and actually have a positive cash flow for your rental in most cases. Finally, the people who are either not taking advantage of this market or have lost their homes to short sales or foreclosures still need a place to live...therefore, the rental market is pretty good. Of course it is still price driven and many people, including myself, are upside down in our investments and must try to get a higher rent.
So what does this mean to you? It depends on your goals. If you have thought about investing in Real Estate, this is probably a great time to do so. Currently you can buy new construction homes for as low as $120k (1200 sq. ft.) on a lot. We haven't seen that for quite some time. You can also buy homes that are just a couple of years old and up to 2000 sq. f. for the same price. It certainly is a great time to buy. The only problem that may arise for you is the financing. Currently the loan market is totally credit driven. This means the better your credit, the better your interest rate.
If you are buying a primary home, then this might be the chance of your lifetime to grab a piece of paradise at an awesome price. The way things were going there up until 2005, I didn't think my children would ever be able to buy a home in their lifetime. However, like always, the market corrected itself and home prices are now affordable again! I don't know that I would wait to long to buy a home as prices and interest rates are bound to rise again at some point. After all, Brevard County is the least expensive Waterfront Community in Florida. Over the next 10 year period, pending they can sell their homes, the 77 Million Baby Boomers will be heading for retirement. Florida will always remain one of the top destinations for retirees. With Brevard County being so affordable, you can be sure that this market will increase in value once things normalize! Of course I have no crystal ball to tell you when that will be, but it seems to me that prices can't go much lower making Brevard County's losses, your opportunities!
If you would like to search for a home or investments in Brevard County, just go to:
http://www.melbournehomesearch.com/index.cfm/Search_MLS
Here you will have access to every listing in Brevard County Florida. Whether you are looking for a tropical home, a waterfront home or a condo, you can find it all right here.
As aways, I look forward to helping you. Have a fun Sunday!
Mitch
Monday, October 6, 2008
It's an interesting time in Real Estate right now.
So here we are, the Monday after the "big" bailout. The stock market crashed again but did make a comeback to lose only -369.88 . Some would say this is a pretty scary time! However, others are looking at this as a great opportunity. The question is how do you look at it?
The unfortunate part here, and I won't get political, is that the real problems are the Media driving this frenzy, and our government running around with their heads cut off trying to fix it. The reality is, as it always does, the market will fix itself. The market is made to have companies do bad business, go down, and have another company seizing the opportunity. Our country has done just great the past 50 years or so following our founding fathers guidance. My belief is if we took the media out of the equation then we wouldn't be even close to having this meltdown. They have been non stop being the barers of doom and gloom. I guess that's one negative to free speech. Anyone can say anything without being held accountable. It's amazing what the media will do for ratings and to get their candidate, Mr. Obama, into office. But we won't go there either!
So here I am sitting at my desk probably wondering where my future lies as most small business people are doing right about now. I know I have to go home and have dinner, but I feel the urge to sit at my desk and try to figure out the worlds problems. The good news is we are still doing fine as a company and our customers are still buying homes. They are certainly taking advantage of the buyers market right now. In the end, no matter what I do, or how much I complain about the additional $150 Billion in pork added to the useless bailout, it will be what it will be. I personally think that every congressman that asked for their portion of the pork bill should be impeached from office. As much as I don't agree with the bailout, they put their personal pet projects ahead of taking care of America. They are traitors in my book whether they are democrat or republican.
Here we are with the same question we have had for quite some time now. Is it a good time to buy? I believe it is. I believe this is just a blip on the screen and after the election the markets will mysteriously become stable again and things will be on track. If you are smart right now you will take advantage of the situation. I wish I had more cash available so I could buy property. In the end our property values will come back. Our property values will increase and things will be normal.
That's my point of view on all of this. I just want to assure you that we are here to stay and we are helping buyers and sellers every single day!
As always, if you need anything please let me know. I'm always here to help.
Mitch
The unfortunate part here, and I won't get political, is that the real problems are the Media driving this frenzy, and our government running around with their heads cut off trying to fix it. The reality is, as it always does, the market will fix itself. The market is made to have companies do bad business, go down, and have another company seizing the opportunity. Our country has done just great the past 50 years or so following our founding fathers guidance. My belief is if we took the media out of the equation then we wouldn't be even close to having this meltdown. They have been non stop being the barers of doom and gloom. I guess that's one negative to free speech. Anyone can say anything without being held accountable. It's amazing what the media will do for ratings and to get their candidate, Mr. Obama, into office. But we won't go there either!
So here I am sitting at my desk probably wondering where my future lies as most small business people are doing right about now. I know I have to go home and have dinner, but I feel the urge to sit at my desk and try to figure out the worlds problems. The good news is we are still doing fine as a company and our customers are still buying homes. They are certainly taking advantage of the buyers market right now. In the end, no matter what I do, or how much I complain about the additional $150 Billion in pork added to the useless bailout, it will be what it will be. I personally think that every congressman that asked for their portion of the pork bill should be impeached from office. As much as I don't agree with the bailout, they put their personal pet projects ahead of taking care of America. They are traitors in my book whether they are democrat or republican.
Here we are with the same question we have had for quite some time now. Is it a good time to buy? I believe it is. I believe this is just a blip on the screen and after the election the markets will mysteriously become stable again and things will be on track. If you are smart right now you will take advantage of the situation. I wish I had more cash available so I could buy property. In the end our property values will come back. Our property values will increase and things will be normal.
That's my point of view on all of this. I just want to assure you that we are here to stay and we are helping buyers and sellers every single day!
As always, if you need anything please let me know. I'm always here to help.
Mitch
Saturday, September 20, 2008
So what does it all mean?
With the government bailing out the financial companies of our country, what does this all mean to us? Actually, I wish I had the answer. To me this is probably a mistake as we have become a reactionary counry versus a country of sound principles. I'm a big believer in less government. I believe that captialism will provide most of the answers as it usually does. I know that if my company is having financial trouble nobody is going to come and save me. I'm going to drown with all my other small business comrades!
These companies are failing because they got greedy and corrupt. Should they be saved? The problem is that they control so much of our citizens retirement accounts and that's where the issue lies. That is why the government is bailing out these companies. However, if this has to be, then the people who run these companies should be held accountable for all the bad investments they made with our money. It was these people, out of greed, that made the decisions to make these dumb investments. Are they going to be able to continue to run these companies with no consequence?
As I said, I'm not a big believer in bailing out these companies but we are in a tough place. If we don't do it, millions of people are going to be financially ruined. If we do it we are saying it's ok to take risks that are going to hurt these same millions of people.
It's the same with all these investors who decided to walk away from their obligations because of their greed...but that's another story for another day!
These companies are failing because they got greedy and corrupt. Should they be saved? The problem is that they control so much of our citizens retirement accounts and that's where the issue lies. That is why the government is bailing out these companies. However, if this has to be, then the people who run these companies should be held accountable for all the bad investments they made with our money. It was these people, out of greed, that made the decisions to make these dumb investments. Are they going to be able to continue to run these companies with no consequence?
As I said, I'm not a big believer in bailing out these companies but we are in a tough place. If we don't do it, millions of people are going to be financially ruined. If we do it we are saying it's ok to take risks that are going to hurt these same millions of people.
It's the same with all these investors who decided to walk away from their obligations because of their greed...but that's another story for another day!
Wednesday, August 27, 2008
Brevard County Real Estate - Finally some great news!
Well it's about time the News Media has said something positive about the Real Estate market. Home sales for July were up 2.5%! That may not be the gigantic gain, but it's on the plus side versus the negative side!
Currently we have under 6800 single family homes on the market. We are down from over 7000 homes on the market just two months ago. It's a sure sign that the market is starting to turn around.
The only thing getting in the way of a great rebound right now might be the Internet Rates. There are signs that the rates may go up after the first of the year. So, if you are on the fence about buying, this is probably one of the best times to purchase that home you have been waiting to buy.
There is one line that I love for those who are waiting for the market to reach the bottom. "You will never know when we hit bottom until the market starts to go back up."
As always, if there is anything we can do for you, that's what we are here for!
Have a fun night!
Mitch
Currently we have under 6800 single family homes on the market. We are down from over 7000 homes on the market just two months ago. It's a sure sign that the market is starting to turn around.
The only thing getting in the way of a great rebound right now might be the Internet Rates. There are signs that the rates may go up after the first of the year. So, if you are on the fence about buying, this is probably one of the best times to purchase that home you have been waiting to buy.
There is one line that I love for those who are waiting for the market to reach the bottom. "You will never know when we hit bottom until the market starts to go back up."
As always, if there is anything we can do for you, that's what we are here for!
Have a fun night!
Mitch
Saturday, August 23, 2008
Everything is fine in Brevard County after Tropical Storm Fay!
I must have received 50 calls from our customers who are looking to mover to Brevard County. They are all fearing the worst that might have happened to us sitting here in the eye of the storm. I just wanted to let everyone know that we are fine and in most areas the water has gone down tremendously. I was away when I got my first call from my wife. She was frantic because we were getting water coming into our bathroom. I thought the worst, but it really wasn't to bad. What really happened is we had some plumbing issues fixed a couple of years ago and the people that did it, didn't do a great job sealing the block. So the water just kept coming in. Of course listening to my wife panic while I was in Denver was pretty scary.
It was a relief to know that it was really ok when I got home. I just had to take the baseboards off, dry it out, and once dry I will put the boards back on. I probably have about an inch of sheetrock to cut off. Not bad.Yes, we were lucky. There were a few homes around the county that didn't fair so well. This was the most rain, up to 30 inches, that this area has ever seen.
So I started wondering how people would react to this storm. Luckily, it really hasn't made any difference. We are still busy showing homes this weekend and life goes on. Let's face it, no matter where you live you have something to deal with from Mother Nature. We deal with hurricanes and tropical storms. The north deals with blizzards. California deals with earthquakes. The midwest deals with tornados. In the end, if the good Mother wants to get you, she will!Anyway, I just wanted to give you a quick update of our situation here.
For some it has been really tough but for most of us it's what we deal with to live in paradise! I wouldn't change a thing!
It was a relief to know that it was really ok when I got home. I just had to take the baseboards off, dry it out, and once dry I will put the boards back on. I probably have about an inch of sheetrock to cut off. Not bad.Yes, we were lucky. There were a few homes around the county that didn't fair so well. This was the most rain, up to 30 inches, that this area has ever seen.
So I started wondering how people would react to this storm. Luckily, it really hasn't made any difference. We are still busy showing homes this weekend and life goes on. Let's face it, no matter where you live you have something to deal with from Mother Nature. We deal with hurricanes and tropical storms. The north deals with blizzards. California deals with earthquakes. The midwest deals with tornados. In the end, if the good Mother wants to get you, she will!Anyway, I just wanted to give you a quick update of our situation here.
For some it has been really tough but for most of us it's what we deal with to live in paradise! I wouldn't change a thing!
Tuesday, August 5, 2008
Brevard County July Stats
Hi Everyone!
It certainly appears that home sales are holding steady. Our inventory is at a new low with 6860 single family homes on the market. Currently there are only 2454 townhomes and condos on the market and 3445 lots for sale.
July Sales were:
Single Family Homes - 439 sales
Condos and Townhomes - 97 sales
Land - 36 sales
June Sales were:
Single Family Homes - 456 sales
Condos and Townhomes - 117 sales
Land - 41 sales
As you can see, sales remain steady and based on the number of people contacting us daily, it appears the market should remain steady in the near future. Prices seem to be stable and homes that are priced correctly are selling in quick fashion. We have had many listings selling within 30-45 days as long as they are willing to listen to us on our pricing to sell. We tell all sellers you can either be in the market or on the market. We are not interested in listings homes for the sake of listings homes. We will only list homes that are "in" the market! Last month only 439 homes were in the market.
The foreclosure market has definitely affected the resales of non foreclosures. With so many foreclosures (494) and short sales (1513) on the market, sellers are going to either not sell their homes or sell them competitively with these bank related properties.
Short sales remain a pain in the neck to deal with and time frames have not increased to get answers from the banks. Many times we are waiting 3 or more months for an answer and still less than 35% of these homes are actually going forward to closing. Our advice is still to stay clear of short sales. You are better off going after foreclosures or other resales. Of course if you have plenty of time to kill and are not in any hurry, short sales can be a good deal. Remember though, the listing price of a short sale is not necessarily the price the bank will take on the property. We still receive many banks countering our offers much higher than the asking price.
Interest rates are remaining stable also. It's just a matter of time until the rates start to go up, but for now, it still remains a great time to buy a home. As I have said many times, the only thing we know for sure right now are the prices and the interest rates. Even if prices stay the same or go down a little, interest rates have no where to go but up. Buy now and don't wait for the unknown. Keep in mind, we won't know that we are really at the bottom until the prices start going up again.
Hopefully you can see a snapshot of Brevard County Florida. If you have any questions or would like to see any properties, don't hesitate to contact us. Have a great night and good luck in your home search!
Mitch
It certainly appears that home sales are holding steady. Our inventory is at a new low with 6860 single family homes on the market. Currently there are only 2454 townhomes and condos on the market and 3445 lots for sale.
July Sales were:
Single Family Homes - 439 sales
Condos and Townhomes - 97 sales
Land - 36 sales
June Sales were:
Single Family Homes - 456 sales
Condos and Townhomes - 117 sales
Land - 41 sales
As you can see, sales remain steady and based on the number of people contacting us daily, it appears the market should remain steady in the near future. Prices seem to be stable and homes that are priced correctly are selling in quick fashion. We have had many listings selling within 30-45 days as long as they are willing to listen to us on our pricing to sell. We tell all sellers you can either be in the market or on the market. We are not interested in listings homes for the sake of listings homes. We will only list homes that are "in" the market! Last month only 439 homes were in the market.
The foreclosure market has definitely affected the resales of non foreclosures. With so many foreclosures (494) and short sales (1513) on the market, sellers are going to either not sell their homes or sell them competitively with these bank related properties.
Short sales remain a pain in the neck to deal with and time frames have not increased to get answers from the banks. Many times we are waiting 3 or more months for an answer and still less than 35% of these homes are actually going forward to closing. Our advice is still to stay clear of short sales. You are better off going after foreclosures or other resales. Of course if you have plenty of time to kill and are not in any hurry, short sales can be a good deal. Remember though, the listing price of a short sale is not necessarily the price the bank will take on the property. We still receive many banks countering our offers much higher than the asking price.
Interest rates are remaining stable also. It's just a matter of time until the rates start to go up, but for now, it still remains a great time to buy a home. As I have said many times, the only thing we know for sure right now are the prices and the interest rates. Even if prices stay the same or go down a little, interest rates have no where to go but up. Buy now and don't wait for the unknown. Keep in mind, we won't know that we are really at the bottom until the prices start going up again.
Hopefully you can see a snapshot of Brevard County Florida. If you have any questions or would like to see any properties, don't hesitate to contact us. Have a great night and good luck in your home search!
Mitch
Wednesday, July 2, 2008
Happy 4th of July!
I can't believe it's the 4th of July already! I remember my parents telling me that when you get older the time flies by! I really didn't buy it as I knew how long a school year seemed to last. Now my oldest son is telling me he can't believe he has been out of high school for 11 years and just turned 29 years old. Crazy!
When I think of the 4th of July and the memories this holiday conjures up, I mostly think of the American Flag, Fireworks, Family, Friends and of course our young men and women in harms way far away from their country. Their 4th of July is about staying alive and protecting their mothers, fathers, sisters, brothers, aunts, uncles and friends back home. If it wasn't for our soldiers over the past 200 years or so, we wouldn't have the opportunity to enjoy this coming weekend like we do.
The 4th of July should be our most patriotic day of the year. Without getting totally political here, I think over the past few years, and especially this year, many Americans are losing their patriotism. I talk with so many people that seem to not like the country we live in right now. Let's keep something perfectly clear though, our country is made up of you and I. Our country does not belong to politicians, it belongs to us. If we are to preserve what our current and past soldiers have died for, we are going to have to become more involved in what the politicians are doing to our country. I just read an email that stated that Pepsi has a new can of soda with the flag and the Pledge of Allegience. In the Pledge they left out Under God. Is this really happening to us. Are we so afraid of hurting someones feelings that we are going against the fiber and blood that our country was built upon. If this doesn't scare you, it should. It should scare you that our world is changing quickly before our eyes and our country is being negatively affected because of our lack of unity as a nation.
Let's all remember that when push comes to shove, we are all neighbors and we all need to learn to compromise. If for a moment, we the people, can bring back our patriotism, then we will have the ability to work together to solve some of our pressing issues. However, if we choose to continue to fight each other verbally to the point of hatred amongst Liberals and Conservatives, we will soon lose our country. We will go the way of all the Empires prior to The United States of America. I don't want that for my grand children, do you.
Unfortunately, if you are my age (47) or so, it is left upon us to straighten out this mess. We do not have the luxury and we have the moral obligation, to make our country whole again. Let's face it, our parents generation did a heck of a bad job over the past 30 years. Most of todays problems could have been resolved years ago if they actually acted on the problems of the day. I think back to 1974 and pumping gas at my friends dads gas station with huge lines. I remember the talk of not being held hostage by the Middle East and the need for alternative energy. Unfortunately it was just talk and nobody did anything. After all, the future problems would be the future...it's so far away. Well here we are 30 years later and the future is now.
Ok, I'm done ranting. I love our country. I love the people. I even love New Yorkers which is tough for me being a Boston Red Sox fan! I love what we stand for. I love the fact that when anyone in our country or around the world is suffereing from devestation, that we are the first ones to give. Not just from the government, but from you and I. We are America. Please help us protect our country and get involved. Remember, all the politicians are our employees. It's time to fire our staff and get a new one! Unfortunately we don't have that option this election, but we have 4 more years to really make a difference in the next election in 2012. Let's not let our grand children down, they are depending on us.
With all that said, I hope that you all have a Happy 4th of July weekend. I hope you reflect on what I have said here and what you can do for your country. I think one of our Presidents said "Ask not what your country can do for you, but what you can do for your country. It's time!
Happy 4th of July!
When I think of the 4th of July and the memories this holiday conjures up, I mostly think of the American Flag, Fireworks, Family, Friends and of course our young men and women in harms way far away from their country. Their 4th of July is about staying alive and protecting their mothers, fathers, sisters, brothers, aunts, uncles and friends back home. If it wasn't for our soldiers over the past 200 years or so, we wouldn't have the opportunity to enjoy this coming weekend like we do.
The 4th of July should be our most patriotic day of the year. Without getting totally political here, I think over the past few years, and especially this year, many Americans are losing their patriotism. I talk with so many people that seem to not like the country we live in right now. Let's keep something perfectly clear though, our country is made up of you and I. Our country does not belong to politicians, it belongs to us. If we are to preserve what our current and past soldiers have died for, we are going to have to become more involved in what the politicians are doing to our country. I just read an email that stated that Pepsi has a new can of soda with the flag and the Pledge of Allegience. In the Pledge they left out Under God. Is this really happening to us. Are we so afraid of hurting someones feelings that we are going against the fiber and blood that our country was built upon. If this doesn't scare you, it should. It should scare you that our world is changing quickly before our eyes and our country is being negatively affected because of our lack of unity as a nation.
Let's all remember that when push comes to shove, we are all neighbors and we all need to learn to compromise. If for a moment, we the people, can bring back our patriotism, then we will have the ability to work together to solve some of our pressing issues. However, if we choose to continue to fight each other verbally to the point of hatred amongst Liberals and Conservatives, we will soon lose our country. We will go the way of all the Empires prior to The United States of America. I don't want that for my grand children, do you.
Unfortunately, if you are my age (47) or so, it is left upon us to straighten out this mess. We do not have the luxury and we have the moral obligation, to make our country whole again. Let's face it, our parents generation did a heck of a bad job over the past 30 years. Most of todays problems could have been resolved years ago if they actually acted on the problems of the day. I think back to 1974 and pumping gas at my friends dads gas station with huge lines. I remember the talk of not being held hostage by the Middle East and the need for alternative energy. Unfortunately it was just talk and nobody did anything. After all, the future problems would be the future...it's so far away. Well here we are 30 years later and the future is now.
Ok, I'm done ranting. I love our country. I love the people. I even love New Yorkers which is tough for me being a Boston Red Sox fan! I love what we stand for. I love the fact that when anyone in our country or around the world is suffereing from devestation, that we are the first ones to give. Not just from the government, but from you and I. We are America. Please help us protect our country and get involved. Remember, all the politicians are our employees. It's time to fire our staff and get a new one! Unfortunately we don't have that option this election, but we have 4 more years to really make a difference in the next election in 2012. Let's not let our grand children down, they are depending on us.
With all that said, I hope that you all have a Happy 4th of July weekend. I hope you reflect on what I have said here and what you can do for your country. I think one of our Presidents said "Ask not what your country can do for you, but what you can do for your country. It's time!
Happy 4th of July!
Saturday, June 21, 2008
Don't let the Media fool you?
Hi Everyone!
I'm going to do my best not to get political during this blog. I will tell you that I"m not a big fan of the Media and I believe they are the largest contributing factor for our country going down the tubes. I believe the last two and a half years of the home price tumble was and is all media related. They have an agenda as they always do and the American people just line up and read their stuff whether it's true or not.
So how is the media fooling you? They are still telling you this is a bad time to buy. We have a customer last week who had wanted to do a short sale offer. It took months before we finally heard and during that time the Interest rates went from 5.875% to 6.5%. The prices hadn't changed in the past few months as they waited for an answer on their short sale offer, but look what happened to the cost of buying the home!
Price is important, but it's not the most important factor when buying a home. Our interest rates are going to go up and they need to go up for the economy's sake. We have all gotten used to the great rates of the past 5 years or so, but I fear that this is about to end. If so, many of you will have missed out on the best buying opportunity we have had here since 2003.
Once these rates go up, like gasoline, I will be very surprised to see the Interest rates come down below 6% or even 7% soon. My guess is once the election is over, it may get worse and we could see our interest rates back up over 8% like they were in 2001 and 2002. It wasn't that long ago ya know!
Why did the Media work so hard to kill the Real Estate market? To me it's very simple. Aside from the Iraq wore, the country as a whole was running fairly good. Most consumers were feeling pretty secure in our economy. After all, there can be a ton of things going on in the world, but as long as the individual is getting by ok and securing a good life for their family, then things are relatively good! If you remember, it was May of 2005 when the Media started on their rush to destroy the economy. The bubble was going to burst and don't get caught with your pants down! As they continued this throughout the rest of 2005 they started making a dent. Low and behold, just in time for the election in 2006, the Media convinced the masses that the housing bubble was done and foreclosures, inflation, home prices and more have destroyed our country's economy and of course it was the Republicans that did all this. It was very political.
Would we have had a bubble burst? I believe we were actually getting pretty close back in May 2005 for our prices to start adjusting. I think we probably would have had a 15% maybe 20% correction which is fairly normal. However with the Media harping on everyone, the drop was closer to 35% or more in some areas of Florida.
The moral of the story is don't wait to much longer to buy your home. If you are serious about buying, it will be come more and more difficult. Home prices are low but with Interest rates fast approaching 7% or more, you will not be able to buy the home you want as the payment will be too high.
As always, if you have any questions, please don't hesitate to ask or call. Thanks for using www.melbournehomesearch.com and www.mitchrealty.com .
Have a great night!
Mitch
I'm going to do my best not to get political during this blog. I will tell you that I"m not a big fan of the Media and I believe they are the largest contributing factor for our country going down the tubes. I believe the last two and a half years of the home price tumble was and is all media related. They have an agenda as they always do and the American people just line up and read their stuff whether it's true or not.
So how is the media fooling you? They are still telling you this is a bad time to buy. We have a customer last week who had wanted to do a short sale offer. It took months before we finally heard and during that time the Interest rates went from 5.875% to 6.5%. The prices hadn't changed in the past few months as they waited for an answer on their short sale offer, but look what happened to the cost of buying the home!
Price is important, but it's not the most important factor when buying a home. Our interest rates are going to go up and they need to go up for the economy's sake. We have all gotten used to the great rates of the past 5 years or so, but I fear that this is about to end. If so, many of you will have missed out on the best buying opportunity we have had here since 2003.
Once these rates go up, like gasoline, I will be very surprised to see the Interest rates come down below 6% or even 7% soon. My guess is once the election is over, it may get worse and we could see our interest rates back up over 8% like they were in 2001 and 2002. It wasn't that long ago ya know!
Why did the Media work so hard to kill the Real Estate market? To me it's very simple. Aside from the Iraq wore, the country as a whole was running fairly good. Most consumers were feeling pretty secure in our economy. After all, there can be a ton of things going on in the world, but as long as the individual is getting by ok and securing a good life for their family, then things are relatively good! If you remember, it was May of 2005 when the Media started on their rush to destroy the economy. The bubble was going to burst and don't get caught with your pants down! As they continued this throughout the rest of 2005 they started making a dent. Low and behold, just in time for the election in 2006, the Media convinced the masses that the housing bubble was done and foreclosures, inflation, home prices and more have destroyed our country's economy and of course it was the Republicans that did all this. It was very political.
Would we have had a bubble burst? I believe we were actually getting pretty close back in May 2005 for our prices to start adjusting. I think we probably would have had a 15% maybe 20% correction which is fairly normal. However with the Media harping on everyone, the drop was closer to 35% or more in some areas of Florida.
The moral of the story is don't wait to much longer to buy your home. If you are serious about buying, it will be come more and more difficult. Home prices are low but with Interest rates fast approaching 7% or more, you will not be able to buy the home you want as the payment will be too high.
As always, if you have any questions, please don't hesitate to ask or call. Thanks for using www.melbournehomesearch.com and www.mitchrealty.com .
Have a great night!
Mitch
Wednesday, June 4, 2008
Housing Inventory is starting to go down!
Hey Everyone!
Finally, after two years of rising inventories, our inventory for single family homes in brevard is down under 7,000 homes for sale to 6940 and condos and townhomes are down from 3500 to 2504.
This is extremely good news for our market. To me, it means we are pretty much at the bottom of the market and that as each month that goes by our lower priced homes will hold firm. Homes that are still over priced will still sit on the market a long time and will probably not sell until they become realistic.
So what does this all mean to you, our home buying customer? It means that if you have been waiting to pull the the trigger on buying a home, this might be the time. As inventory eases over the next several months, the prices will flatten and then start to rise again. My belief is by the end of this year we should be starting to see an uptick in pricing as the inventory will be low. According to our Supply and Demand Curve, lower inventories mean higher prices.
That's all for now, I just noticed this today and thought it was important enough to share with you. Remember, nobody really knows when the bottom of the market is, until it starts going up...by then you have missed it!
If you are thinking about when is the right time to buy, this is it!
Call or email if you have any questions.
Finally, after two years of rising inventories, our inventory for single family homes in brevard is down under 7,000 homes for sale to 6940 and condos and townhomes are down from 3500 to 2504.
This is extremely good news for our market. To me, it means we are pretty much at the bottom of the market and that as each month that goes by our lower priced homes will hold firm. Homes that are still over priced will still sit on the market a long time and will probably not sell until they become realistic.
So what does this all mean to you, our home buying customer? It means that if you have been waiting to pull the the trigger on buying a home, this might be the time. As inventory eases over the next several months, the prices will flatten and then start to rise again. My belief is by the end of this year we should be starting to see an uptick in pricing as the inventory will be low. According to our Supply and Demand Curve, lower inventories mean higher prices.
That's all for now, I just noticed this today and thought it was important enough to share with you. Remember, nobody really knows when the bottom of the market is, until it starts going up...by then you have missed it!
If you are thinking about when is the right time to buy, this is it!
Call or email if you have any questions.
Saturday, May 24, 2008
Memorial Day Weekend
Hi Everyone!
I just wanted to take a moment and give thanks to our men and women in the armed services. My son in law just got back today from Iraq. It seems lately we are hearing less and less about what is going on in Iraq. It's a shame the media doesn't cover the good things happening that every soldier I have spoken to about Iraq has mentioned.
My goal isn't to make a political statement. For those of you who know me, you know that I could write a book on the subject!
Please take a moment and reflect on the men and women over the past century or so that have fought for your freedom. You have the right to buy a home, sell a home, start a business, travel, and the list goes on and on. The reason is because of these brave young soldiers. Many have died for the cause of freedom and many have come back home with severe permanent injuries. I personally want to thank each and everyone of them for making the sacrifice they have made for my personal freedom. I also want to take a moment and thank the wives, husbands, mothers, fathers and children of these fine young adults.
If you see a soldier, even if you don't know him or her, walk up him or her and thank them for their service. In a day when politics gets in the way of our kids fighting the war they need to win we need to spend more time thanking them.
Have a wonderful weekend and don't forget the soldiers. Don't ever forget.
Mitch
I just wanted to take a moment and give thanks to our men and women in the armed services. My son in law just got back today from Iraq. It seems lately we are hearing less and less about what is going on in Iraq. It's a shame the media doesn't cover the good things happening that every soldier I have spoken to about Iraq has mentioned.
My goal isn't to make a political statement. For those of you who know me, you know that I could write a book on the subject!
Please take a moment and reflect on the men and women over the past century or so that have fought for your freedom. You have the right to buy a home, sell a home, start a business, travel, and the list goes on and on. The reason is because of these brave young soldiers. Many have died for the cause of freedom and many have come back home with severe permanent injuries. I personally want to thank each and everyone of them for making the sacrifice they have made for my personal freedom. I also want to take a moment and thank the wives, husbands, mothers, fathers and children of these fine young adults.
If you see a soldier, even if you don't know him or her, walk up him or her and thank them for their service. In a day when politics gets in the way of our kids fighting the war they need to win we need to spend more time thanking them.
Have a wonderful weekend and don't forget the soldiers. Don't ever forget.
Mitch
Sunday, May 18, 2008
It's been a while since we talked stats!
Hi Everyone!
It's been a while since I posted stats. Below are the stats from the first of year (Jan 1 2008) to today May 18, 2008. If you have any questions about these stats, please don't hesitate to contact me at mitch@mitchrealty.com.
Brevard County Resale Stats Single Family - Average Active Listings Per Month - 7127
January - 253 Sold
February - 340 Sold
March - 417 Sold
April - 451 Sold
May (Through May 17) - 157 Sold
Brevard County Resale Stats - Condo/Townhomes - Average Active Listings Per Month - 2585
January - 68 Sold
February - 104 Sold
March - 97 Sold
April - 111 Sold
May (Through May 17) - 50 Sold
Brevard County Resale Stats - Land - Average Active Listings Per Month - 3529
January - 36 Sold
February - 48 Sold
March - 71 Sold
April - 51 Sold
May (Through May 17) - 16 Sold
These are pretty amazing numbers don't ya think? I think so! What does it tells us? Not much actually except that sales are still very slow and if you are thinking about selling your home, you better be "in" the market versus "on" the market.
However if you are a buyer... let the fun begin! With so few homes selling, terms and prices are negotiable. It's a great time to buy for the first time home buyer, for relocations, and for investors. In fact, I played golf the other day with an investor friend of mine and he bought 8 homes in the past 2 weeks. He told me that he isn't going to wait for the media to tell him it's the right time to buy, just look at the numbers he says!
Yes, the numbers say that selling your home is a bad idea. It is truly a buyers market. This is great for all of our buyers who have been waiting to buy. It's very true that we never know when the market reaches the true bottom, because at that point, we are already on the way back up. Right now, according to most of the professionals that I speak with, we believe we are at the bottom. Does that mean that some homes are still over priced? Of course it does. Do you remember three years ago you couldn't buy a brand new home in Palm Bay for under $200k? I do, currently there are 92 Brand New Homes in Palm Bay under $200k. You heard me right, you can buy a brand new home in Palm Bay for under $200k. In fact, 22 of those brand new homes you can buy for under $150k. Yes, it's a great time to be a buyer.
So what's the key here? The key firstly is not to miss the boat. If you are going to wait until the media tells you it's a great time to buy, then chances are you will miss the boat. Let's look at the worst case scenario in my opinion. Worst case is the market comes down another 5%...let's even say 10% which I very much doubt. That means a $200k home will be valued at $180 when the market hits bottom. (Even the media is predicting some time next year). If you are buying a home to live in for the next 4 years or more, then this will not affect you. You will still retain your value and have a small increase in value over the next 4 years.
The one main factor we don't know about waiting to buy is the lenders. Right now they have tightened their belts. The guidelines to buy are a little tougher and with the exception of FHA, all loans start around 5% down or more. The interest rates are still right around 6%. Given all this info, we know what your home is going to cost you today. Fast forward a year or so and what do we know? Firstly, we don't know if the market is going to come down anymore...that's just speculation (which is why we are in this position in the first place) it may stay exactly where we are at. We also don't know what the interest rates and terms will be next year. Today we know these factors and these factors are telling us it's a great time to buy!
Hopefully I have answered some of your questions in this blog about our market. If you have any other questions, please don't hesitate to contact me as I am always here to help.
Have a great Sunday!
Mitch
It's been a while since I posted stats. Below are the stats from the first of year (Jan 1 2008) to today May 18, 2008. If you have any questions about these stats, please don't hesitate to contact me at mitch@mitchrealty.com.
Brevard County Resale Stats Single Family - Average Active Listings Per Month - 7127
January - 253 Sold
February - 340 Sold
March - 417 Sold
April - 451 Sold
May (Through May 17) - 157 Sold
Brevard County Resale Stats - Condo/Townhomes - Average Active Listings Per Month - 2585
January - 68 Sold
February - 104 Sold
March - 97 Sold
April - 111 Sold
May (Through May 17) - 50 Sold
Brevard County Resale Stats - Land - Average Active Listings Per Month - 3529
January - 36 Sold
February - 48 Sold
March - 71 Sold
April - 51 Sold
May (Through May 17) - 16 Sold
These are pretty amazing numbers don't ya think? I think so! What does it tells us? Not much actually except that sales are still very slow and if you are thinking about selling your home, you better be "in" the market versus "on" the market.
However if you are a buyer... let the fun begin! With so few homes selling, terms and prices are negotiable. It's a great time to buy for the first time home buyer, for relocations, and for investors. In fact, I played golf the other day with an investor friend of mine and he bought 8 homes in the past 2 weeks. He told me that he isn't going to wait for the media to tell him it's the right time to buy, just look at the numbers he says!
Yes, the numbers say that selling your home is a bad idea. It is truly a buyers market. This is great for all of our buyers who have been waiting to buy. It's very true that we never know when the market reaches the true bottom, because at that point, we are already on the way back up. Right now, according to most of the professionals that I speak with, we believe we are at the bottom. Does that mean that some homes are still over priced? Of course it does. Do you remember three years ago you couldn't buy a brand new home in Palm Bay for under $200k? I do, currently there are 92 Brand New Homes in Palm Bay under $200k. You heard me right, you can buy a brand new home in Palm Bay for under $200k. In fact, 22 of those brand new homes you can buy for under $150k. Yes, it's a great time to be a buyer.
So what's the key here? The key firstly is not to miss the boat. If you are going to wait until the media tells you it's a great time to buy, then chances are you will miss the boat. Let's look at the worst case scenario in my opinion. Worst case is the market comes down another 5%...let's even say 10% which I very much doubt. That means a $200k home will be valued at $180 when the market hits bottom. (Even the media is predicting some time next year). If you are buying a home to live in for the next 4 years or more, then this will not affect you. You will still retain your value and have a small increase in value over the next 4 years.
The one main factor we don't know about waiting to buy is the lenders. Right now they have tightened their belts. The guidelines to buy are a little tougher and with the exception of FHA, all loans start around 5% down or more. The interest rates are still right around 6%. Given all this info, we know what your home is going to cost you today. Fast forward a year or so and what do we know? Firstly, we don't know if the market is going to come down anymore...that's just speculation (which is why we are in this position in the first place) it may stay exactly where we are at. We also don't know what the interest rates and terms will be next year. Today we know these factors and these factors are telling us it's a great time to buy!
Hopefully I have answered some of your questions in this blog about our market. If you have any other questions, please don't hesitate to contact me as I am always here to help.
Have a great Sunday!
Mitch
Monday, May 12, 2008
Are we at the bottom?
Hi Everyone!
Are you thinking about buying?
So here we are, mid May 2008 and we are hearing rumblings saying that we are at the bottom! I think I'm starting to believe it too. To me one of the big signs that the market is starting to turn is the amount of offers on contracts. More and more these days we are seeing multiple offers on many properties. Ok, now those properties are listed below everyone else in the market, but they are selling and lots of buyers want them!
So what does it mean to you? I don't know! If you have been waiting for the bottom, this may be it. This may be the best possible time to ever buy a home again. I do know that Interest rates are still hovering around 6%. How do you know if you are buying at the bottom? You don't! Well you do actually, it's when the market is going back up. Yes, the only time you can be for sure that we are at the bottom, it will be to late because we will be on the way up. They say that you never really buy at the bottom. You either buy on the way down or on the way up.
Here is the reality. If you are looking to buy a home that you plan on living in for an extended time period (more than 5 years), then we are close enough to the bottom that it shouldn't matter. If you are looking for investment, there are tons of homes that are great prices and won't last long! Either way, this is a great time to buy a home and actually if you need to sell, price it right and it will sell!
Do you need to sell?
Right now there are only two aspects of selling a home. First and foremost is price. Second is exposure. If you are listings your home, price it right and make sure that your Agent (Hopefully a Tropical Realty Agent), is using the best tools available to market. If your Agent isn't using the Internet in a big way, you are not getting maximum exposure. A well marketed website is going to get your home exposed more than anything. We tell all our customers to price their home at least 5% lower than the competition. Of course many don't want to hear that, but then they can't really want to sell their homes.
I do want to spend a second talking about price. For each month that your home is on the market, it becomes more difficult to sell. Therefore if you price your home to high to begin with, it may not receive any traffic from potential buyers and you will waste valuable time. If your Realtor shows you comps that your home is worth $200k and you need to sell it, don't tell your Agent that it's worth $240k. It's not. In fact, if your Realtor says $200k, you should list for $190k. As I said, we suggest 5% below the market.
We are averaging less than 5% of the single family homes on the market selling per month and even less condos selling. The ones that sell are "IN" the market. The ones that don't are "ON" the market. If you are going to sell your home, it's imperative that you are "IN" the market. Don't fool yourself that your home is so much better than your neighbor who sold his house in 2005 for $295,000. That was then...this is now. I don't like being so blunt, but I have found that their really isn't any other way to be when talking with our customers. Fortunately I"m not a Broker that is willing to inflate the price to you so we can get your listing and then have it sit there without any action. Thirty to forty-five days later that Realtor is going to be asking you to reduce your price if you want to sell. That's the most important selling days you have just thrown away. Price it right to start and sell it quickly!
That's it for now. As always, if you need anything please let us know. Have a great week!
Mitch
Are you thinking about buying?
So here we are, mid May 2008 and we are hearing rumblings saying that we are at the bottom! I think I'm starting to believe it too. To me one of the big signs that the market is starting to turn is the amount of offers on contracts. More and more these days we are seeing multiple offers on many properties. Ok, now those properties are listed below everyone else in the market, but they are selling and lots of buyers want them!
So what does it mean to you? I don't know! If you have been waiting for the bottom, this may be it. This may be the best possible time to ever buy a home again. I do know that Interest rates are still hovering around 6%. How do you know if you are buying at the bottom? You don't! Well you do actually, it's when the market is going back up. Yes, the only time you can be for sure that we are at the bottom, it will be to late because we will be on the way up. They say that you never really buy at the bottom. You either buy on the way down or on the way up.
Here is the reality. If you are looking to buy a home that you plan on living in for an extended time period (more than 5 years), then we are close enough to the bottom that it shouldn't matter. If you are looking for investment, there are tons of homes that are great prices and won't last long! Either way, this is a great time to buy a home and actually if you need to sell, price it right and it will sell!
Do you need to sell?
Right now there are only two aspects of selling a home. First and foremost is price. Second is exposure. If you are listings your home, price it right and make sure that your Agent (Hopefully a Tropical Realty Agent), is using the best tools available to market. If your Agent isn't using the Internet in a big way, you are not getting maximum exposure. A well marketed website is going to get your home exposed more than anything. We tell all our customers to price their home at least 5% lower than the competition. Of course many don't want to hear that, but then they can't really want to sell their homes.
I do want to spend a second talking about price. For each month that your home is on the market, it becomes more difficult to sell. Therefore if you price your home to high to begin with, it may not receive any traffic from potential buyers and you will waste valuable time. If your Realtor shows you comps that your home is worth $200k and you need to sell it, don't tell your Agent that it's worth $240k. It's not. In fact, if your Realtor says $200k, you should list for $190k. As I said, we suggest 5% below the market.
We are averaging less than 5% of the single family homes on the market selling per month and even less condos selling. The ones that sell are "IN" the market. The ones that don't are "ON" the market. If you are going to sell your home, it's imperative that you are "IN" the market. Don't fool yourself that your home is so much better than your neighbor who sold his house in 2005 for $295,000. That was then...this is now. I don't like being so blunt, but I have found that their really isn't any other way to be when talking with our customers. Fortunately I"m not a Broker that is willing to inflate the price to you so we can get your listing and then have it sit there without any action. Thirty to forty-five days later that Realtor is going to be asking you to reduce your price if you want to sell. That's the most important selling days you have just thrown away. Price it right to start and sell it quickly!
That's it for now. As always, if you need anything please let us know. Have a great week!
Mitch
Monday, April 28, 2008
Another Successful Tropical Realty Charity Golf Tournament!
Hi Everyone!
Sorry I haven't been writing lately as things have been extremely busy at the office and in putting on our 4th annual Charity Golf Tournament. First the tournament:
Every year we seem to get a little better at running these tournaments. This year was very smooth and we had so much fun. We will have pictures on the site shortly from the tournament.
As you may or may not know, this year our tournament is supporting Sturge-Weber Syndrome (SWS). SWS is a very rare disease that can be noticed by the port wine stain on its victims. Unfortunately, my granddaughter, Lola, is one of its victims. In very rare cases, the stain gets into the brain and begins to calcify. At that point, the child will develop seizures (Lola has had two in her two years of life) and possibly learning disabilities, mental retardation, stroke and possibly death. The hardest part for my family is the fact that there is no diagnosis. There is no way to know what and when this will attack Lola.
We have been blessed that so far Lola's two seizures were not damaging at all. She is and will always be on anti seizure medicine twice a day, every day. We pray daily as do many of our friends that when she does have another seizure, it's not her last.
So the tournament this year is very personal to me. Lola is the light of my life and is always smiling and laughing. She is great! Our tournament this year had a record 112 players from all over the area and even my closest friend of 40 years from Boston. Everyone had a great time and everyone was very generous. We haven't figured out the totals yet but we are sure that we are around $11,000 in donations. My wife has also raised an additional $2,000 or so. Lola spent her day running around the golf course smiling and laughing and warming the hearts of everyone there. It's hard to believe when looking at her that there is anything wrong with her. She is the perfect two year old!
Business
Business has been great! Buyers are finally realizing that this IS the best time to buy a home. The prices are amazing. I just sold a home to one of my long time customers that would have been over $500k two years ago for $325k. It's an amazing house at an amazing price. There are so many opportunities for the buyer. Of course that is one of the downfalls for us too. There are so many great deals out there right that everyone is having a hard time making decisions on which great house to buy!
Are we at the bottom? I believe so, but you know that it's impossible to know until we start going up. At that point you have missed the bottom. That is why I tell everyone that if you wait to see where the bottom is, you will have missed the bottom. The only thing I know for sure is, right now you can buy a home with a 6% mortgage. If you wait until homes appear to be at the bottom, usually on the way up, we don't know what the mortgage rate is going to be.
If you have been on the fence, this is the time! If you have wanted to invest in real estate, this is the time! If you are thinking about buying your first home, this is the time! If you are moving to Florida to retire, this is the time! If you are looking for a vacation home, this is the time. Finally, if you are thinking about a condo, it's even better...this is the time!
From time to time I like to tell you a little about my thoughts in business. It is amazing to me that most Real Estate Brokers are not really business people. They were great at selling houses, but selling homes and running a company with employees, mass marketing and Agents is not the same. For that reason I will be starting a new company called eHomes Realty. Originally I was going to use this company to franchise my Real Estate company. After a lot of thinking and talking to advisers, I have decided to create a membership company that will allow independent Brokerages who are not affiliated with a franchise to reap some of the franchise benefits. So far the response from chatting with people has been great.
As with everything I do, by building this company will allow our customers to have a better opportunity to seek out Real Estate in different areas. Currently we have a good amount Brokerages to help our customers that would like to live out of the area. eHomes Realty will expand our network of reputable Agents that we would feel comfortable allowing our customers to use.
I'll keep you posted on the new business as I get closer to launch date. The beauty of it, is that it will be almost all online and can grow online. I will also be appointing one of my experienced Agents to be my team leader and assist me in managing the staff while I am out of town on my business travels. One thing for sure you can know is my Real Estate customers will always be my main priority and their success in finding or selling their home will be my first and foremost goal!
That's it for tonight. I'll try to write more but you know how life gets in the way!
Have a great day and take care!
Mitch
Sorry I haven't been writing lately as things have been extremely busy at the office and in putting on our 4th annual Charity Golf Tournament. First the tournament:
Every year we seem to get a little better at running these tournaments. This year was very smooth and we had so much fun. We will have pictures on the site shortly from the tournament.
As you may or may not know, this year our tournament is supporting Sturge-Weber Syndrome (SWS). SWS is a very rare disease that can be noticed by the port wine stain on its victims. Unfortunately, my granddaughter, Lola, is one of its victims. In very rare cases, the stain gets into the brain and begins to calcify. At that point, the child will develop seizures (Lola has had two in her two years of life) and possibly learning disabilities, mental retardation, stroke and possibly death. The hardest part for my family is the fact that there is no diagnosis. There is no way to know what and when this will attack Lola.
We have been blessed that so far Lola's two seizures were not damaging at all. She is and will always be on anti seizure medicine twice a day, every day. We pray daily as do many of our friends that when she does have another seizure, it's not her last.
So the tournament this year is very personal to me. Lola is the light of my life and is always smiling and laughing. She is great! Our tournament this year had a record 112 players from all over the area and even my closest friend of 40 years from Boston. Everyone had a great time and everyone was very generous. We haven't figured out the totals yet but we are sure that we are around $11,000 in donations. My wife has also raised an additional $2,000 or so. Lola spent her day running around the golf course smiling and laughing and warming the hearts of everyone there. It's hard to believe when looking at her that there is anything wrong with her. She is the perfect two year old!
Business
Business has been great! Buyers are finally realizing that this IS the best time to buy a home. The prices are amazing. I just sold a home to one of my long time customers that would have been over $500k two years ago for $325k. It's an amazing house at an amazing price. There are so many opportunities for the buyer. Of course that is one of the downfalls for us too. There are so many great deals out there right that everyone is having a hard time making decisions on which great house to buy!
Are we at the bottom? I believe so, but you know that it's impossible to know until we start going up. At that point you have missed the bottom. That is why I tell everyone that if you wait to see where the bottom is, you will have missed the bottom. The only thing I know for sure is, right now you can buy a home with a 6% mortgage. If you wait until homes appear to be at the bottom, usually on the way up, we don't know what the mortgage rate is going to be.
If you have been on the fence, this is the time! If you have wanted to invest in real estate, this is the time! If you are thinking about buying your first home, this is the time! If you are moving to Florida to retire, this is the time! If you are looking for a vacation home, this is the time. Finally, if you are thinking about a condo, it's even better...this is the time!
From time to time I like to tell you a little about my thoughts in business. It is amazing to me that most Real Estate Brokers are not really business people. They were great at selling houses, but selling homes and running a company with employees, mass marketing and Agents is not the same. For that reason I will be starting a new company called eHomes Realty. Originally I was going to use this company to franchise my Real Estate company. After a lot of thinking and talking to advisers, I have decided to create a membership company that will allow independent Brokerages who are not affiliated with a franchise to reap some of the franchise benefits. So far the response from chatting with people has been great.
As with everything I do, by building this company will allow our customers to have a better opportunity to seek out Real Estate in different areas. Currently we have a good amount Brokerages to help our customers that would like to live out of the area. eHomes Realty will expand our network of reputable Agents that we would feel comfortable allowing our customers to use.
I'll keep you posted on the new business as I get closer to launch date. The beauty of it, is that it will be almost all online and can grow online. I will also be appointing one of my experienced Agents to be my team leader and assist me in managing the staff while I am out of town on my business travels. One thing for sure you can know is my Real Estate customers will always be my main priority and their success in finding or selling their home will be my first and foremost goal!
That's it for tonight. I'll try to write more but you know how life gets in the way!
Have a great day and take care!
Mitch
Sunday, April 6, 2008
Golf Tournament and a Great Conversation I had with a customer
Hi Everyone!
We are a few weeks away from our Golf Tournament so if you are going to play please call Debbie at 321-749-7786. We are on pace to have our largest tournament yet and I can't thank all of you enough for signing up this year. My granddaughter will be at the tournament so you will be able to see why you are actually playing golf on April 26th.
So I had a great conversation the other day. One of the most frustrating part of being in Real Estate is the fact that some people think that we work as hard as we do just for fun. Don't get me wrong. We do have a lot of fun and probably more fun than most. If you remember in one of my past blogs, when I hire Agents one of my rules is they must be fun! However, this business is very hard and sometimes grueling. We shoulder most of the stress of the transaction so the consumer can have a smooth and painless transaction. If people actually knew how many times we saved their opportunity to buy a new home they would be amazed. As I was saying, one of the most frustrating things about being in Real Estate is that some consumers have no loyalty and don't think what we do is work. Let me say again, it's some of our customers. The majority of our customers are very respectful and loyal to us.
The other day I was talking with one of our customers. He is working with Charlie and he wanted to let me know that Charlie is doing a great job for him. He also let me know that he went to a builder that morning without Charlie. As soon as we hear that, our hearts usually sink. Many times our Realtors will show a customer multitudes of homes only to have the customer call us (sometimes they call) to let us know they either went to an open house, called a listing sign, stopped by a FSBO or dropped in on a builder and bought a home. This happens all the time and it's very tough on our Agent who has put so much work into helping the customer find and buy a home. All of the sudden, we are out of the transaction and our relationship ends. Of course the customer expects us to be very happy about this. We do put on the "that's great!" face but inside the Agent is struggling with what they may have done wrong do be so disrespected by the customer. If you put yourself in the Agents shoes, I'm sure you can appreciate the pain. Not to mention the cost it takes these days to drive people all around our county at $3.30 per gallon!
Ok, let's get back to the great conversation. Charlies customer went to a builder and before he even talked about buying their home, he let them know that he has a Realtor and he was not prepared to cut Charlie out of the deal. The builder was very happy to include Charlie which they all do. As with all builders, the Realtor commission or marketing fee as they may call it, is already built into the price. There are no special deals if you don't use a Realtor. In reality, most people who bypass their Realtor thinking they will get a better deal never do, they actually pay more for the home than if they were with their Realtor. Remember that the employee at the builder is legally bound to work in the Builders best interest and is legally not allowed to represent you at all in the transaction. There is nobody on your side when you don't use your Realtor. While talking to Charlies customer he told me how hard Charlie has worked for him and that they had been in touch for many months prior to them coming down to buy a home. He would have felt terrible having Charlie do all the work he has done and not get paid for all his efforts. It was very refreshing to hear. After all, when you cut your Realtor out of a the transaction they do not get paid for any of the job they had done for you. It's very disheartening when this happens. However, when I talk to people like Charlie's customer, it makes me feel good that someone respects and understands the amount of work we do for our customers. Can you imagine working 40 hours at your job and your boss decided to give your check to someone else?
In closing, our Realtors are going to give you 150% effort in buying or selling your home. We all work extremely long hours and are accessible to you any time and day of the week. All we ask from our customers is the same respect and loyalty that they expect from us.
As always, I'm here to help you in any way I can. If you live in Brevard County or are going to be in the area on April 26th, please give us a call about playing in the golf tournament. If you don't play, please pass the info along to someone you know that plays.
Take care and have a great night!
Mitch
We are a few weeks away from our Golf Tournament so if you are going to play please call Debbie at 321-749-7786. We are on pace to have our largest tournament yet and I can't thank all of you enough for signing up this year. My granddaughter will be at the tournament so you will be able to see why you are actually playing golf on April 26th.
So I had a great conversation the other day. One of the most frustrating part of being in Real Estate is the fact that some people think that we work as hard as we do just for fun. Don't get me wrong. We do have a lot of fun and probably more fun than most. If you remember in one of my past blogs, when I hire Agents one of my rules is they must be fun! However, this business is very hard and sometimes grueling. We shoulder most of the stress of the transaction so the consumer can have a smooth and painless transaction. If people actually knew how many times we saved their opportunity to buy a new home they would be amazed. As I was saying, one of the most frustrating things about being in Real Estate is that some consumers have no loyalty and don't think what we do is work. Let me say again, it's some of our customers. The majority of our customers are very respectful and loyal to us.
The other day I was talking with one of our customers. He is working with Charlie and he wanted to let me know that Charlie is doing a great job for him. He also let me know that he went to a builder that morning without Charlie. As soon as we hear that, our hearts usually sink. Many times our Realtors will show a customer multitudes of homes only to have the customer call us (sometimes they call) to let us know they either went to an open house, called a listing sign, stopped by a FSBO or dropped in on a builder and bought a home. This happens all the time and it's very tough on our Agent who has put so much work into helping the customer find and buy a home. All of the sudden, we are out of the transaction and our relationship ends. Of course the customer expects us to be very happy about this. We do put on the "that's great!" face but inside the Agent is struggling with what they may have done wrong do be so disrespected by the customer. If you put yourself in the Agents shoes, I'm sure you can appreciate the pain. Not to mention the cost it takes these days to drive people all around our county at $3.30 per gallon!
Ok, let's get back to the great conversation. Charlies customer went to a builder and before he even talked about buying their home, he let them know that he has a Realtor and he was not prepared to cut Charlie out of the deal. The builder was very happy to include Charlie which they all do. As with all builders, the Realtor commission or marketing fee as they may call it, is already built into the price. There are no special deals if you don't use a Realtor. In reality, most people who bypass their Realtor thinking they will get a better deal never do, they actually pay more for the home than if they were with their Realtor. Remember that the employee at the builder is legally bound to work in the Builders best interest and is legally not allowed to represent you at all in the transaction. There is nobody on your side when you don't use your Realtor. While talking to Charlies customer he told me how hard Charlie has worked for him and that they had been in touch for many months prior to them coming down to buy a home. He would have felt terrible having Charlie do all the work he has done and not get paid for all his efforts. It was very refreshing to hear. After all, when you cut your Realtor out of a the transaction they do not get paid for any of the job they had done for you. It's very disheartening when this happens. However, when I talk to people like Charlie's customer, it makes me feel good that someone respects and understands the amount of work we do for our customers. Can you imagine working 40 hours at your job and your boss decided to give your check to someone else?
In closing, our Realtors are going to give you 150% effort in buying or selling your home. We all work extremely long hours and are accessible to you any time and day of the week. All we ask from our customers is the same respect and loyalty that they expect from us.
As always, I'm here to help you in any way I can. If you live in Brevard County or are going to be in the area on April 26th, please give us a call about playing in the golf tournament. If you don't play, please pass the info along to someone you know that plays.
Take care and have a great night!
Mitch
Monday, March 17, 2008
It's that Time! Tropical Realty Annual Charity Golf Tournament
Hi Everyone!
So for all of you that know me, you know that I run my business on my sleeve. What do I mean by that? I'm a pretty emotional guy that likes to have fun and help people. If I accomplish both those things, then I feel that life is pretty good. It's basically my definition of success!
Every year we have had the pleasure of running our annual charity golf tournament. The response we get is always exceptional and the support of our sponsors is excellent. The past three years we have raised approximately $30,000 for MS.
This year we are supporting a charity that is very close to my heart. My two year old granddaughter has been diagnosed with a very rare disease called Sturge-Weber. The most notable sign of Sturge-Weber is a Port Wine stain on the child's head and face. In very rare cases, 1 out of 20,000, this stain results in Sturge-Weber.
Sturge-Weber can be devastating. In most cases it causes learning disabilities and a lifetime of seizures. In some cases it can cause mental retardation, paralysis and even death. The hardest part for the family is that there is no way to know what is going to happen in the future. We had thought after we got through Lola's first birthday that we had a good chance of dodging the bullet. Unfortunately a few days after her first birthday she had her first seizure. It was extremely tough to see. This past Christmas she had her second seizure while out with her mom and dad looking at Christmas lights. She is currently on anti-seizure medication, twice a day, and will be for life. Luckily neither seizure brought on any permanent damage. We are hoping, because her birthday is today, St. Patricks Day, she has a little luck of the Irish!
This year our tournament is on April 26th at Savannahs Golf Club in North Merritt Island. Our goal is to sell out at 144 players. Our average has been around 120 players so this year I'm looking to raise a little more cash. For more information, go to: http://melbournehomesearch.com/index.cfm/Charity_Golf_Tournament
All the proceeds will go for research on Sturge-Weber. The top researcher in the country, Dr. Comi, has been a great resource and we want to do all we can to help her efforts. She is the specialist we use for Lola and she is always there when we need her. As you can see, we love her!
Thank you as always for reading my blog. I really appreciate all the support our customers and friends have given both professionally and personally. You guys are great!
Have a great week!
Mitch
So for all of you that know me, you know that I run my business on my sleeve. What do I mean by that? I'm a pretty emotional guy that likes to have fun and help people. If I accomplish both those things, then I feel that life is pretty good. It's basically my definition of success!
Every year we have had the pleasure of running our annual charity golf tournament. The response we get is always exceptional and the support of our sponsors is excellent. The past three years we have raised approximately $30,000 for MS.
This year we are supporting a charity that is very close to my heart. My two year old granddaughter has been diagnosed with a very rare disease called Sturge-Weber. The most notable sign of Sturge-Weber is a Port Wine stain on the child's head and face. In very rare cases, 1 out of 20,000, this stain results in Sturge-Weber.
Sturge-Weber can be devastating. In most cases it causes learning disabilities and a lifetime of seizures. In some cases it can cause mental retardation, paralysis and even death. The hardest part for the family is that there is no way to know what is going to happen in the future. We had thought after we got through Lola's first birthday that we had a good chance of dodging the bullet. Unfortunately a few days after her first birthday she had her first seizure. It was extremely tough to see. This past Christmas she had her second seizure while out with her mom and dad looking at Christmas lights. She is currently on anti-seizure medication, twice a day, and will be for life. Luckily neither seizure brought on any permanent damage. We are hoping, because her birthday is today, St. Patricks Day, she has a little luck of the Irish!
This year our tournament is on April 26th at Savannahs Golf Club in North Merritt Island. Our goal is to sell out at 144 players. Our average has been around 120 players so this year I'm looking to raise a little more cash. For more information, go to: http://melbournehomesearch.com/index.cfm/Charity_Golf_Tournament
All the proceeds will go for research on Sturge-Weber. The top researcher in the country, Dr. Comi, has been a great resource and we want to do all we can to help her efforts. She is the specialist we use for Lola and she is always there when we need her. As you can see, we love her!
Thank you as always for reading my blog. I really appreciate all the support our customers and friends have given both professionally and personally. You guys are great!
Have a great week!
Mitch
Thursday, March 13, 2008
More on Short Sales!
Hi Everyone!
Well the short sale market is in session and there are a lot of buyers getting very frustrated. It seems no matter what I say, people are still listening to the media telling them to buy foreclosures or shortsales.
My goal is not to tell you to avoid shortsales like the plague, but to make sure you understand the negatives to the short sale.
First, based on last month sales, short sales are only about 3%-5% lower than regular sales. They are not really much of a bargain. Basically they are selling at market rate. Based on the amount of time involved and the frustration, that savings can quickly be lost.
So why am I so down on Short Sales. The biggest issue is that they are an unknown. I will point out the issues below:
1. In most cases the soonest you will hear if your offer was accepted is 45 days or more.
2. The listing price has nothing to do with the actual price that the bank will accept. The bank does not give Realtors a price that they will accept when the Realtor accepts the listing. The Bank will not give out a price until they have received offers.
3. Many people are offering the bank much lower than the listed price. The reality is, the bank will be selling that home at very close to market rate. They will do an appraisal on the property prior to accepting any offer.
4. While you are waiting for an answer on your offer, the listing remains active and the bank is usually receiving multiple offers.
5. When the bank finally does come back with an answer, there usually is no chance for a counter offer, they usually accept the best offer. (that is if any are acceptable at all)
6. The bank will usually turn down most offers that are asking them to pay anything toward closing costs.
7. The bank will usually not do any repairs on the property...they are mostly "as is" contracts.
8. The bank still may require the seller to sign a promissory note to pay the difference. So after all this time and even potentially at the closing table (read last months blog), the seller walked away from the deal and it fell apart after almost 6 months.
I don't know about you, but this is no way to buy a home!
Before I run off to a Real Estate Board of Directors meeting, I wanted to share a short sale experience from the selling side. An Agent in the office recently took a short sale listing. We talked with the bank and submitted all the sellers paperwork to the lender and then we waited. After a week and a half we finally got hold of someone at the bank and they told us it would be at least another month before it was assigned to a loan negotiator. Once assigned, it would most likely be another month or so before we are contacted by that loan negotiator. They also threw in that if we didn't answer the phone when they called, it could be another month before they got back to us. We are not allowed to contact the loan negotiator. By the way, this is just to see if the bank will accept the sellers request to do a short sale. Meanwhile, the property is listed and when we get offers, the buyers will be waiting several months to see if they will accept the seller doing a short sale, and then the buyers offer.
Point of this story. Short sales aren't just bad for buyers, they are also quite the pain for the seller. Ok, I have to run but please remember this information when you are out with your Realtor. Be prepared for the long haul if you want to buy a home through short sale. I have seen so many buyers get emotionally beat up over these things and I really feel bad, but there isn't anything I can do if you don't listen to me.
As always, if there is anything I can do for you, please don't hesitate to call or email me. My email is mitch@mitchrealty.com.
Have a great day!
Mitch
Well the short sale market is in session and there are a lot of buyers getting very frustrated. It seems no matter what I say, people are still listening to the media telling them to buy foreclosures or shortsales.
My goal is not to tell you to avoid shortsales like the plague, but to make sure you understand the negatives to the short sale.
First, based on last month sales, short sales are only about 3%-5% lower than regular sales. They are not really much of a bargain. Basically they are selling at market rate. Based on the amount of time involved and the frustration, that savings can quickly be lost.
So why am I so down on Short Sales. The biggest issue is that they are an unknown. I will point out the issues below:
1. In most cases the soonest you will hear if your offer was accepted is 45 days or more.
2. The listing price has nothing to do with the actual price that the bank will accept. The bank does not give Realtors a price that they will accept when the Realtor accepts the listing. The Bank will not give out a price until they have received offers.
3. Many people are offering the bank much lower than the listed price. The reality is, the bank will be selling that home at very close to market rate. They will do an appraisal on the property prior to accepting any offer.
4. While you are waiting for an answer on your offer, the listing remains active and the bank is usually receiving multiple offers.
5. When the bank finally does come back with an answer, there usually is no chance for a counter offer, they usually accept the best offer. (that is if any are acceptable at all)
6. The bank will usually turn down most offers that are asking them to pay anything toward closing costs.
7. The bank will usually not do any repairs on the property...they are mostly "as is" contracts.
8. The bank still may require the seller to sign a promissory note to pay the difference. So after all this time and even potentially at the closing table (read last months blog), the seller walked away from the deal and it fell apart after almost 6 months.
I don't know about you, but this is no way to buy a home!
Before I run off to a Real Estate Board of Directors meeting, I wanted to share a short sale experience from the selling side. An Agent in the office recently took a short sale listing. We talked with the bank and submitted all the sellers paperwork to the lender and then we waited. After a week and a half we finally got hold of someone at the bank and they told us it would be at least another month before it was assigned to a loan negotiator. Once assigned, it would most likely be another month or so before we are contacted by that loan negotiator. They also threw in that if we didn't answer the phone when they called, it could be another month before they got back to us. We are not allowed to contact the loan negotiator. By the way, this is just to see if the bank will accept the sellers request to do a short sale. Meanwhile, the property is listed and when we get offers, the buyers will be waiting several months to see if they will accept the seller doing a short sale, and then the buyers offer.
Point of this story. Short sales aren't just bad for buyers, they are also quite the pain for the seller. Ok, I have to run but please remember this information when you are out with your Realtor. Be prepared for the long haul if you want to buy a home through short sale. I have seen so many buyers get emotionally beat up over these things and I really feel bad, but there isn't anything I can do if you don't listen to me.
As always, if there is anything I can do for you, please don't hesitate to call or email me. My email is mitch@mitchrealty.com.
Have a great day!
Mitch
Monday, February 25, 2008
Tropical Realty's Marketing Stats
Hi Everyone!
Now that we have decided to actually start taking listings again, I thought I would share with you some of the stats that help us to sell homes. Firstly though, it is important to know that there are really only two things that will help sell a home in a slow market....price and exposure.
Price
We have been very selective about the homes we choose to list. Unlike most Real Estate companies, we will not take every listing that presents itself to us. Don't get me wrong, I used to do that like everyone else. It was then, while sitting on 50 listings or so, getting yelled at by every owner, that I realized I need to change our philosophy on Listings.
As most of you know, we do things quite differently at Tropical Realty. Over the past few years we have spent all our efforts on helping buyers buy homes. Because of the scenario above, it just wasn't worth it to carry listings. Besides that, it just wasn't fun. I'm a firm believer that if my customer and I are not having fun, I really don't want to be involved!
I heard a saying a few months ago that I truly love. "Do you want to be IN the market or ON the market". With less than 250 homes selling out of 7200 homes on the market in January, you can see that only a few sellers choose to be IN the market. Since our goal is always to help our customer, we will only take listings of customers who want to be IN the market. So how do you become IN the market?
In this market, it's really all about price. We have been testing our marketing and have found that if a home is priced at 5% below everyone else in their market, the home should sell within 90 days or less. We have seen that a few of the homes we listed in January are now under contract using this rule. The others are getting showings and it's just a matter of time before we should get offers. It's actually very exciting and our customers love us!
One problem with our Industry is that many Realtors will tell you what you want to hear. Fortunately we don't fit into that mold. We are going to be upfront and honest every time. Unfortunately most sellers do not want to hear what we have say! We are not going to list a home for $250k when we know that it is going to get $200k at the most. In fact most Agents will tell you that you should be able to get $250k and they are the first ones to call you in 30 days or less letting you know that you have to lower the price. They are not doing any type of service for their customers. Price your home right and it will sell...it really is that simple!
Exposure
Most Agents will put your home in a magazine and list your home in the MLS...and then what....they just sit back and wait for another Agent to sell the home or for someone to call off the sign in the front yard of the home.
Tropical Realty of Suntree owns and operates two websites currently with two more in the works. The stats I am going to give are a combination of both sites.
Now that we have decided to actually start taking listings again, I thought I would share with you some of the stats that help us to sell homes. Firstly though, it is important to know that there are really only two things that will help sell a home in a slow market....price and exposure.
Price
We have been very selective about the homes we choose to list. Unlike most Real Estate companies, we will not take every listing that presents itself to us. Don't get me wrong, I used to do that like everyone else. It was then, while sitting on 50 listings or so, getting yelled at by every owner, that I realized I need to change our philosophy on Listings.
As most of you know, we do things quite differently at Tropical Realty. Over the past few years we have spent all our efforts on helping buyers buy homes. Because of the scenario above, it just wasn't worth it to carry listings. Besides that, it just wasn't fun. I'm a firm believer that if my customer and I are not having fun, I really don't want to be involved!
I heard a saying a few months ago that I truly love. "Do you want to be IN the market or ON the market". With less than 250 homes selling out of 7200 homes on the market in January, you can see that only a few sellers choose to be IN the market. Since our goal is always to help our customer, we will only take listings of customers who want to be IN the market. So how do you become IN the market?
In this market, it's really all about price. We have been testing our marketing and have found that if a home is priced at 5% below everyone else in their market, the home should sell within 90 days or less. We have seen that a few of the homes we listed in January are now under contract using this rule. The others are getting showings and it's just a matter of time before we should get offers. It's actually very exciting and our customers love us!
One problem with our Industry is that many Realtors will tell you what you want to hear. Fortunately we don't fit into that mold. We are going to be upfront and honest every time. Unfortunately most sellers do not want to hear what we have say! We are not going to list a home for $250k when we know that it is going to get $200k at the most. In fact most Agents will tell you that you should be able to get $250k and they are the first ones to call you in 30 days or less letting you know that you have to lower the price. They are not doing any type of service for their customers. Price your home right and it will sell...it really is that simple!
Exposure
Most Agents will put your home in a magazine and list your home in the MLS...and then what....they just sit back and wait for another Agent to sell the home or for someone to call off the sign in the front yard of the home.
Tropical Realty of Suntree owns and operates two websites currently with two more in the works. The stats I am going to give are a combination of both sites.
Tropical Realty of Suntree – Quick Facts
Did you know that over 80% of homebuyers start their search on the Internet?
Tropical Realty of Suntree is the leader in Brevard County for Internet Traffic and Buyers.
Currently Tropical Realty websites receive approximately 55,000 visitors each month.
www.MitchRealty.com is ranked 14th in the nation for Real Estate websites according to Ranking.com.
Tropical Realty of Suntree was the Number 1 office in Brevard County in closed transactions with buyers in 2007.
There are over 500 registered Real Estate companies in Brevard County
Tropical Realty currently has over 25,000 people in our database with approximately 10,000 buyers actively looking to buy within the next year.
Tropical Realty spends more money on Internet Advertising than most companies spend on print Advertising.
All our listings are found on Google, Yahoo, Homegain, Craigslist, Trulia, Lycos, AOL, Zillow and many more sites with a total of over
Our goal is to have 100,000 visits per month by the end of 2008 with an additional 20,000 new customers in our database.
As you can see there is a lot of great stuff here ! I have more stats but don't want to put to much writing on here as I try to keep these blogs to a reasonable length. As always, let me know if there is anything I can do to help.
Have a great night!
Mitch
Sunday, February 10, 2008
Short Sales - Are they worth the wait?
Hi Everyone!
It's Sunday night and I should be sleeping, but there is so much happening in the Real Estate world right now it's hard to go to sleep. As most of you have seen, Short Sales have now become very popular. Currently about 25% of all our listings are Short Sales.
First, let's spend a minute and explain exactly what is a Short Sale? Let's say you bought your home in 2005 for $300k. Three years later the market has crashed and the home you went out on the limb to buy is now worth $200k. To make matters worse, you may have bought your home with zero money down and an adjustable rate mortgage to boot. Your rate has gone up and that hope of your home going up in value $100k like your friends did only a couple of years ago is gone. You now qualify as so many do these days, to ask the bank to let you sell the home for the current market value of $200k. Once approved by the bank, you can now list your property to sell. So, a short sale is selling a home for less than what you owe on it. The seller has to prove to the bank they are a hardship case.
The benefit as a seller is they have the opportunity to get themselves out of their bad investment. It will still hurt their credit, but not quite as much as a foreclosure. In many cases the bank will not let you out of the home unless you sign a note saying you will pay the difference back to the bank. Most of the people put in this situation will choose to foreclose because they don't have the money to pay the bank. However, most banks are not asking for a note and they realize, in hind sight of course, that they should have been a little more conservative when deciding who they should or shouldn't give loans.
The benefit to the buyer, or at least the perceived benefit, is they will get a great deal on a property. Granted, there are some great deals to be had through Short Sales. However, most of the banks are not going to take much of a hit below current market values. Many times the bank will receive offers, then do an appraisal on the property to determine if they will accept any offers.
The Problem
It all sounds so simple doesn't it? Well it isn't! Short Sales have proven to cause a lot of heart break and distress. Let me tell you about a couple that we have dealt with recently.
The first couple put an offer of the home of their dreams. They fell in love with this home from the moment they walked through the front door. Their offer was full price based on the advertised listing price. They were very excited. The offer was submitted to the bank the following day. At this point we hadn't done many Short Sales and when we had, they were handled within a few days at most. So we waited for the banks answer....and waitied....and waited. Six months later we finally heard that the bank would not accept the offer. Yes, you read correctly, six months later. After some quick thinking from my Agent, she was able to convince the bank to take the offer. Our customers were full of emotions going from depressed to very excited again. Everything from there until closing went great. Our customers had their home inspection ($300), Termite Inspection ($75), appraisal ($300) and survey ($350). The got to closing and the seller found out she was going to have to sign a note for the difference in the short sale...around $57k. She refused and walked out of the closing room leaving our customers with their mouths hanging down and the tears flowing. They were devastated. To make things even a little worse, the next day the seller said she would sign. Our customers emotions were doing what you would expect by now. The got to closing and the seller again refused to sign. They were destroyed. Don't worry, there was a very happy ending to the story. We found them another house they loved even more and they closed in 10 days through our mortgage company. Everyone was happy in the end.
The second story won't be as long. It's basically the same as the first story in the beginning. They fell in love with the home and put an offer $3k above the asking price. We thought for sure they would get this home. After waiting for about three weeks, the bank came back and said they wanted $265k. This is $8,000 higher than our customers offer and $11,000 that the other Realtor had it listed in the MLS. Our customer was extremely upset and thought it was a bait and switch by the listing Realtor. The reality is the banks will not give us the dollar figure that they will take until we bring them an offer. Realtors can only do their best at guessing what the bank will take and list it around that price. It's really a mess.
The point I"m trying to make here is that Short Sales sound good on the outside but you have to be prepared to wait a very long time and possibly not get the home or pay more than you had offered. The banks are understaffed trying to handle an ever growing number of homes coming to them for Short Sales.
Now let's go back to the beginning of the conversation when we talked about the situation inwhich one can try to sell as a Short Sale. The reality is that the bank is not going to take less than market value in most cases. You are going to pay the same price for this home as you might with a regular resale with no issues.
My Advice
So what happens if you fall for a Short Sale home? Keep looking is what I've told most of our customers. You can put an offer on the Short Sale home, but you should keep looking for your perfect home while waiting for the answer from the bank. Chances are, with the amount of homes on the market, you will find another home with not so much baggage as the Short Sale home. In the end you will pay approximately the same amount of money for either home.
I know that everyone wants to get the best deal they can get. That is human nature and the American way! However, there are better ways to get good deals then doing a Short Sale. For instance, there are so many builders who have homes for sales less expensively than most resale homes. Also, look at homes where the owner has bought their home before 2002. Chances are they didn't pay much for their home and even wtih the market crash, they still have plenty of equity. The more equity they have, the better chance you have of buying the home at a better price. Of course if they don't have to move, they won't be going down to much either. But if the do have to sell, they have the flexibility to lower than price.
Hopefully that will clear up any thoughts and or questions that you may have had on Short Sales. I know it can get quite confusing out there. Believe me, when this first started happening we were all confused and we sell houses for a living. Now that we have done so many of them, we can help you though with ease. However that doesn't make the bank go any faster. We can just prepare you better for the possible heartache you might feel. So take my advice...Make your Short Sale offer if you want, but keep looking for your ferfect home. I know we have one available for you right now.
As always, feel free to call the office at 321-259-9115 or email me to answer any questions you might still have on Short Sales or anything else that I can do for you.
Have a great night!
Mitch
It's Sunday night and I should be sleeping, but there is so much happening in the Real Estate world right now it's hard to go to sleep. As most of you have seen, Short Sales have now become very popular. Currently about 25% of all our listings are Short Sales.
First, let's spend a minute and explain exactly what is a Short Sale? Let's say you bought your home in 2005 for $300k. Three years later the market has crashed and the home you went out on the limb to buy is now worth $200k. To make matters worse, you may have bought your home with zero money down and an adjustable rate mortgage to boot. Your rate has gone up and that hope of your home going up in value $100k like your friends did only a couple of years ago is gone. You now qualify as so many do these days, to ask the bank to let you sell the home for the current market value of $200k. Once approved by the bank, you can now list your property to sell. So, a short sale is selling a home for less than what you owe on it. The seller has to prove to the bank they are a hardship case.
The benefit as a seller is they have the opportunity to get themselves out of their bad investment. It will still hurt their credit, but not quite as much as a foreclosure. In many cases the bank will not let you out of the home unless you sign a note saying you will pay the difference back to the bank. Most of the people put in this situation will choose to foreclose because they don't have the money to pay the bank. However, most banks are not asking for a note and they realize, in hind sight of course, that they should have been a little more conservative when deciding who they should or shouldn't give loans.
The benefit to the buyer, or at least the perceived benefit, is they will get a great deal on a property. Granted, there are some great deals to be had through Short Sales. However, most of the banks are not going to take much of a hit below current market values. Many times the bank will receive offers, then do an appraisal on the property to determine if they will accept any offers.
The Problem
It all sounds so simple doesn't it? Well it isn't! Short Sales have proven to cause a lot of heart break and distress. Let me tell you about a couple that we have dealt with recently.
The first couple put an offer of the home of their dreams. They fell in love with this home from the moment they walked through the front door. Their offer was full price based on the advertised listing price. They were very excited. The offer was submitted to the bank the following day. At this point we hadn't done many Short Sales and when we had, they were handled within a few days at most. So we waited for the banks answer....and waitied....and waited. Six months later we finally heard that the bank would not accept the offer. Yes, you read correctly, six months later. After some quick thinking from my Agent, she was able to convince the bank to take the offer. Our customers were full of emotions going from depressed to very excited again. Everything from there until closing went great. Our customers had their home inspection ($300), Termite Inspection ($75), appraisal ($300) and survey ($350). The got to closing and the seller found out she was going to have to sign a note for the difference in the short sale...around $57k. She refused and walked out of the closing room leaving our customers with their mouths hanging down and the tears flowing. They were devastated. To make things even a little worse, the next day the seller said she would sign. Our customers emotions were doing what you would expect by now. The got to closing and the seller again refused to sign. They were destroyed. Don't worry, there was a very happy ending to the story. We found them another house they loved even more and they closed in 10 days through our mortgage company. Everyone was happy in the end.
The second story won't be as long. It's basically the same as the first story in the beginning. They fell in love with the home and put an offer $3k above the asking price. We thought for sure they would get this home. After waiting for about three weeks, the bank came back and said they wanted $265k. This is $8,000 higher than our customers offer and $11,000 that the other Realtor had it listed in the MLS. Our customer was extremely upset and thought it was a bait and switch by the listing Realtor. The reality is the banks will not give us the dollar figure that they will take until we bring them an offer. Realtors can only do their best at guessing what the bank will take and list it around that price. It's really a mess.
The point I"m trying to make here is that Short Sales sound good on the outside but you have to be prepared to wait a very long time and possibly not get the home or pay more than you had offered. The banks are understaffed trying to handle an ever growing number of homes coming to them for Short Sales.
Now let's go back to the beginning of the conversation when we talked about the situation inwhich one can try to sell as a Short Sale. The reality is that the bank is not going to take less than market value in most cases. You are going to pay the same price for this home as you might with a regular resale with no issues.
My Advice
So what happens if you fall for a Short Sale home? Keep looking is what I've told most of our customers. You can put an offer on the Short Sale home, but you should keep looking for your perfect home while waiting for the answer from the bank. Chances are, with the amount of homes on the market, you will find another home with not so much baggage as the Short Sale home. In the end you will pay approximately the same amount of money for either home.
I know that everyone wants to get the best deal they can get. That is human nature and the American way! However, there are better ways to get good deals then doing a Short Sale. For instance, there are so many builders who have homes for sales less expensively than most resale homes. Also, look at homes where the owner has bought their home before 2002. Chances are they didn't pay much for their home and even wtih the market crash, they still have plenty of equity. The more equity they have, the better chance you have of buying the home at a better price. Of course if they don't have to move, they won't be going down to much either. But if the do have to sell, they have the flexibility to lower than price.
Hopefully that will clear up any thoughts and or questions that you may have had on Short Sales. I know it can get quite confusing out there. Believe me, when this first started happening we were all confused and we sell houses for a living. Now that we have done so many of them, we can help you though with ease. However that doesn't make the bank go any faster. We can just prepare you better for the possible heartache you might feel. So take my advice...Make your Short Sale offer if you want, but keep looking for your ferfect home. I know we have one available for you right now.
As always, feel free to call the office at 321-259-9115 or email me to answer any questions you might still have on Short Sales or anything else that I can do for you.
Have a great night!
Mitch
Monday, January 28, 2008
And the year has begun!
Hi Everyone!
Sorry it's been a while since I wrote. I have been extremely busy working on new programs to better help my Agents help our customers.
Last year ended up a little slower than normal but still we had a great year. Our business was up a little over 60% over the year before and we ended up the Number 1 Real Estate office in Brevard County in working with buyers. It's pretty amazing since we are really a small company compared to many of the over 500 companies located in our county. We are expecting to increase another 50% of so this year if the market stays the way it is. Hopefully the market will get a little better and we will grow even more.
So what can we attribute our 2007 success to?
I believe that in building a world class company, you must hire great people. Most of our Agents had little or no sales experience when I hired them. That was one of the reasons I hired them! When someone comes from a sales background, especially in Real Estate, they might bring with them the bad qualities they learned from their previous organization. By hiring people with less sales experience, I am able to hire people that truly care about our customer and don't worry about commissions. That doesn't mean they don't want to be paid well for their work, it just means that our customers always come first! I am blessed to have a great staff of Realtors and Admin people. Truly blessed!
Secondly, to be successful you need to have great relationships with your customers. We send out surveys after each closing to our customers. We receive about 90% of these surveys back and thankfully they are all beaming with accolades from our customers about my Agents. There is nothing better than having a customer tell you what a great time they had as well as how smooth the transaction went from start to end. I get a big smile on my face every time I read those responses. I'm just tickled that we get 90% back, I think that is awesome!
Finally, we need to have customers. Without you, our customer, we don't have a growing company. We are all very aware of that and work hard to ensure you are and stay happy. There really isn't anything we wouldn't do for our customers (legally of course) to help them in any way. Our goal is very simple; to help our customers have no headaches and have fun while working with Tropical Realty. Even when we have difficult transactions, and you know we do, my Agents handle it so well that our customer will very seldomly notice!
As we move through this year, if there is anything questions or anything I can do for you. Please don't hesitate to email me. I'm always here, we are all always here!
Take Care and have a fun day!
Mitch
Sorry it's been a while since I wrote. I have been extremely busy working on new programs to better help my Agents help our customers.
Last year ended up a little slower than normal but still we had a great year. Our business was up a little over 60% over the year before and we ended up the Number 1 Real Estate office in Brevard County in working with buyers. It's pretty amazing since we are really a small company compared to many of the over 500 companies located in our county. We are expecting to increase another 50% of so this year if the market stays the way it is. Hopefully the market will get a little better and we will grow even more.
So what can we attribute our 2007 success to?
I believe that in building a world class company, you must hire great people. Most of our Agents had little or no sales experience when I hired them. That was one of the reasons I hired them! When someone comes from a sales background, especially in Real Estate, they might bring with them the bad qualities they learned from their previous organization. By hiring people with less sales experience, I am able to hire people that truly care about our customer and don't worry about commissions. That doesn't mean they don't want to be paid well for their work, it just means that our customers always come first! I am blessed to have a great staff of Realtors and Admin people. Truly blessed!
Secondly, to be successful you need to have great relationships with your customers. We send out surveys after each closing to our customers. We receive about 90% of these surveys back and thankfully they are all beaming with accolades from our customers about my Agents. There is nothing better than having a customer tell you what a great time they had as well as how smooth the transaction went from start to end. I get a big smile on my face every time I read those responses. I'm just tickled that we get 90% back, I think that is awesome!
Finally, we need to have customers. Without you, our customer, we don't have a growing company. We are all very aware of that and work hard to ensure you are and stay happy. There really isn't anything we wouldn't do for our customers (legally of course) to help them in any way. Our goal is very simple; to help our customers have no headaches and have fun while working with Tropical Realty. Even when we have difficult transactions, and you know we do, my Agents handle it so well that our customer will very seldomly notice!
As we move through this year, if there is anything questions or anything I can do for you. Please don't hesitate to email me. I'm always here, we are all always here!
Take Care and have a fun day!
Mitch
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