2012 seems to be bringing a much more stable real estate market. Prices are low and will continue to be low, and demand is there. This all leads to market trends emerging and those trends seem to pointing in the direction that markets will develop for many years to come.
The financial markets have made it more difficult to obtain financing, which means more money down, making homeownership more difficult for working families, singles, and first time home buyers. The new generation of home buyers is lookig at small-scale, affordable, walkable, urban communities. This is at the same time that baby-boomers are looking to down-size and also move to smaller scale, and more walkable communities. Both groups of buyers want smaller, higher quality, lower-maintenance homes in settings in which they easily know their neighbors.
This trend is evident in the direction that many developers and architects are taking as they design new developments. The communities are higher-quality and walkable with housing that requires less maintenace and is more energy efficient.
The dialoge of smart growth and issues around food supply and organic gardening are collectivley pushing toward these unique projects that orient toward collective parkspace or a shared garden with walkablity and community as key elements.
How will these trends affect Jacksonville's local markets? Outside of the urban core, new developments will be smaller and designed to mimic properties of urban core development: walkablity, park and shared garden space, small-scale. Many of Jacksonville's intown communities were developed prior to the automobile and are already walkable with parkland woven in. Community gardens have been popping up and will continue. There is also a srong push for urban ag policies, which many cities have already adopted. Buyer demand will remain strong here as long as affordablity remains low. The interest in energy-efficiency will continue to grow and could give certain properties an edge, as long as costs remain reasonable too (building green and building smart are often the same thing and can save a lot of money).
Looking to the future, our intown neighborhoods can only grow stronger if we push our communities to develop more progressive policies toward sustainable development, supporting local food movements, and to remain affordable with mixed use. This is what the next several years of buyers want and we can provide that.
Saturday, December 31, 2011
Thursday, December 29, 2011
First House in Jax to Receive Mothballing COA OPEN HOUSE
The legislation that created a Mothballing COA is a huge win for Jacksonville's historic districts. The COA allows owners a way to properly board and secure vacant homes that they cannot afford to renovate at this time. If properly boarded and secured, these homes can last many years until the market comes back.
Previously code enforcement was declaring these structures unsafe and having them torn down - yes, in National Historic Districts. Many of these homes were not structurally unsound as code enforcement claimed and many engineers were brought in to counter code enforcements claims (code enforcement officers are not engineers).
The house on Walnut was structurally sound. In fact the owner was meticulously restoring it. He salvaged all the doors and had taken the house down to the studs and removed ALL the nails - NOT an easy task as wood that old tends to begin petirfying. He had taken all the trim off and marked each one so that he could put it back in the right spot. This attention to detail isn't something that can de done overnight and code had given him half a mil. in fines. Restoring the house no longer made economic sense and code was going to force him to have the house torn down - even though it was in a National Historic District and structually sound.
So, he donated the house. The new owners applied for the first mothballing COA under the new legislation. They are going to hold an open house on January 8, from 3-4:40. Please stop by, the house in on Walnut Court. Just off of Walnut Street between 7th and 8th. There will be wine and cheese and you can take a look at what one of these old beauties looks like inside when it is well cared for and before it has been renovated.
Previously code enforcement was declaring these structures unsafe and having them torn down - yes, in National Historic Districts. Many of these homes were not structurally unsound as code enforcement claimed and many engineers were brought in to counter code enforcements claims (code enforcement officers are not engineers).
The house on Walnut was structurally sound. In fact the owner was meticulously restoring it. He salvaged all the doors and had taken the house down to the studs and removed ALL the nails - NOT an easy task as wood that old tends to begin petirfying. He had taken all the trim off and marked each one so that he could put it back in the right spot. This attention to detail isn't something that can de done overnight and code had given him half a mil. in fines. Restoring the house no longer made economic sense and code was going to force him to have the house torn down - even though it was in a National Historic District and structually sound.
So, he donated the house. The new owners applied for the first mothballing COA under the new legislation. They are going to hold an open house on January 8, from 3-4:40. Please stop by, the house in on Walnut Court. Just off of Walnut Street between 7th and 8th. There will be wine and cheese and you can take a look at what one of these old beauties looks like inside when it is well cared for and before it has been renovated.
Thursday, December 1, 2011
Exploring the Historic Districts During the Hoidays
This weekend kicks off the Holiday Home Tours season in Jacksonville's historic districts. This Saturday and Sunday will be the 21st Holiday Tour of Homes in San Marco. With up to 9 stops and a luminaria, it is always a lot of fun. If you go on Sunday, I will be at one of the houses on River Road. More information can be found here
The Springfield Christmas Home Tour is the next weekend, December 9th and 10th. On the 10th, there will also be a neighborhood Springfield luminaria. You can find more information here
If you are a runner, a fun 5K is the Holiday Magic and Festival of Lights Run on December 10th. It is an evening run and the route is lit up by luminarias - a different and fun way to do a 5K.
This year marks the 28th anniversary of Riverside Avondale’s beloved Luminaria celebration. The traditional lighting of the lanterns at sundown will occur Sunday, December 18th. The ever-popular Luminaria Bike Ride will leave from City Cycle on Park Street at 6 pm near European Street. More information can be found here
Whatever your fancy, there's lots to do to kick off the holidays
The Springfield Christmas Home Tour is the next weekend, December 9th and 10th. On the 10th, there will also be a neighborhood Springfield luminaria. You can find more information here
If you are a runner, a fun 5K is the Holiday Magic and Festival of Lights Run on December 10th. It is an evening run and the route is lit up by luminarias - a different and fun way to do a 5K.
This year marks the 28th anniversary of Riverside Avondale’s beloved Luminaria celebration. The traditional lighting of the lanterns at sundown will occur Sunday, December 18th. The ever-popular Luminaria Bike Ride will leave from City Cycle on Park Street at 6 pm near European Street. More information can be found here
Whatever your fancy, there's lots to do to kick off the holidays
Wednesday, November 30, 2011
Thank God for the Fall Real Estate Season
I always come out of the summer real estate season worried and anxious. Summer is the slow season for real estate intown. I have seen sales drop consistently the 8 years I have been in real estate during the summer months. But then there is always Fall. Things pick up again and are pretty steady into Spring.
Going into this Fall I was concerned about general market conditions and would it pick up like it always does? It did. In a crazy way. This November has been my most productive month ever. Ever. I have been analyzing the stats all month trying to figure it out. I think it is an indication that the intown real estate markets maybe hitting bottom? Dare I say it? I certainly hope so.
If buyer demand continues and we don't get a new surplus of supply (i.e foreclousres) then supply and demand may actually meet each other.
Of course, only time will tell, but I am certainly hoping so.
Going into this Fall I was concerned about general market conditions and would it pick up like it always does? It did. In a crazy way. This November has been my most productive month ever. Ever. I have been analyzing the stats all month trying to figure it out. I think it is an indication that the intown real estate markets maybe hitting bottom? Dare I say it? I certainly hope so.
If buyer demand continues and we don't get a new surplus of supply (i.e foreclousres) then supply and demand may actually meet each other.
Of course, only time will tell, but I am certainly hoping so.
Monday, November 28, 2011
Welcome back from a Thanksgiving weekend. Here are the latest real estate headlines to start your week!
Welcome back from your Thanksgiving/Black Friday/Football Overload weekend. It’s Cyber Monday and the start of the last week in November. The holidays are almost upon us and to add to your festive spirits, here are some real estate headlines for this week:
•KCM Blog shares some research on the age old question Rent or Buy?
•The Wall Street Journal reports on the strong conditions for luring home buyers, but warns of some obstacles.
•Realty Times takes a stab at answering the timely question, should I take my home off the market for the holidays? •And finally, Curbed.com has one of the most unique properties I’ve seen in a while. It’s a home located at the top of a volcano and inspired by a nuclear power plant.
•KCM Blog shares some research on the age old question Rent or Buy?
•The Wall Street Journal reports on the strong conditions for luring home buyers, but warns of some obstacles.
•Realty Times takes a stab at answering the timely question, should I take my home off the market for the holidays? •And finally, Curbed.com has one of the most unique properties I’ve seen in a while. It’s a home located at the top of a volcano and inspired by a nuclear power plant.
Tuesday, November 15, 2011
The Top 10 + 1 Questions Sellers Should Ask an Agent
WHAT are the characteristics of the real estate sales agent most suitable for the job of marketing your property? A large portion of this decision is based on your own personality. Do you want an agent who does high volume but who will have a staff of assistants handle most aspects of your sale? Or would you prefer an agent who is more devoted to meeting your personal needs? Does the agent have a specific plan for marketing your property? Does the agent have a proven track record? Does the agent's company have a plan for helping you to avoid litigation? Does the agent take extra care in preparing disclosure documents since inadequate disclosure is the source of 95% of real estate litigation? The guidelines below are designed to assist you in making a decision based upon your individual needs.
1. Do you want an agent who does a very high volume of transactions?
ANSWER: Agents who do high volume have lots of signs in the community and usually generate a large number of calls from those signs. Typically they are busy and well organized. Agents who do high volume will encourage you to price your house at or slightly below the market. Although at first glance this may appear to make their job easier, it is actually the best strategy for achieving not only a quick sale, but the best price for you was well. High volume agents will be present at your listing presentation and when there is an offer presentation. The balance of the time you will be dealing with an assistant who may or may not be licensed. Typically, high volume agents do not sit their own open houses or broker's caravan because they cannot adequately cover A large inventory alone. Consequently, they must rely on their assistants, loan agents, and title representatives to cover their opens, if they hold them at all.
2. Do you prefer an agent who will give your personal attention or who approaches the real estate business as a numbers game?
ANSWER: If you are the type of person who prefers a "more personal touch," you will not want a "numbers game" agent. An agent who is focused on personal service does fewer transactions, but is personally available to handle problems as they occur. They will also be more likely to be present at open houses and broker caravans. Agents who provide their clients with personal attention do not list and sell as much property as those individuals who are "doing the numbers." Be especially aware of agents who are doing only a few transactions a year. These individuals are not actively negotiating on a regular basis and may not be able to represent you as well as someone who is actively involved with clients.
3. What kind of support do you provide that will help me sell my home faster?
Answer: The best agents will have a ninety-day marketing plan that will include dates for broker caravan, "circle" prospecting time, open houses etc. They will also have a specific plan on how to reach the top brokers in your service area. All agents will run your property in the Multiple Listing Service and advertise in the newspaper. Do not be taken in, however, by the notion that print advertising works. Only 8% of the Buyers come from print advertising. 15% come from the sign in your yard and a whopping 64% come from other agents. Rather than relying on print advertising and the Multiple Listing Service, the best agents spend two to three hours per day door knocking and/or telephone calling to locate buyers for your property.
4. Do you have a written commitment of the services you will provide for me during the marketing and during the escrow on my property?
Answer: Ask them for their "Marketing Pledge" which will include the services they will provide including reports on showing activity, reports on the changes in the market place, progress during negotiations, regular updates throughout the course of escrow, as well as coordination of events at closing. If they are unwilling to commit in writing to what they will do, look for an agent who will give you a written commitment and then follow it.
5. Would you mind giving me the names, addresses, and telephone numbers of the last three (five) Sellers you have represented?
Answer: Call and ask the past clients the following questions: (a) Was the agent accessible to you when you felt you needed their attention? (b) Was the final selling price of your home close to the original price the agent suggested that you list at (this question probes whether the agent was realistic in presenting the facts about the market). (c) Did the agent live up to their marketing pledge and did they follow their ninety-day marketing plan? (d) Did you feel that this agent was a strong negotiator? (e) Did your agent listen to your concerns and do their best to address them? (f) Would you recommend this person to your friends?
6. How can I know for sure that the price the agent gives me is correct?
Answer: To have an accurate answer, well prepared agents will provide you with what is known as a "Square Footage Competitive Market Analysis." From this, the agent will be able to tell you how much your house should bring based upon the other square footage sales data available from the Multiple Listing Service. Also ask for exact information as to whether or not homes in your area are decreasing, staying static, or increasing in price. Ask for the supporting data in writing. Furthermore, ask exactly how much it will cost you to hold your present property considering the present market conditions. Finally, ask them to describe the present "rate of absorption." This figure describes the probability of selling in any given month based upon current market conditions.
Regardless of who you select to represent you on the sale of your property, pricing it correctly is critical. If you are serious about selling your home, carefully evaluate the comparable sales information. Since the showing activity on your home is the greatest between the second and eighth week of the listing, you are most likely to achieve your best price within the first few weeks of the listing period. "Testing" the market by overpricing will only cause you to lose money.
7. I understand that commissions are negotiable. Why shouldn't I list my property at 5%?
Answer: Ask each agent you interview this question since it will give you an idea about their negotiation style. Does the agent provide you with hard data as to why this is a bad idea? Does the agent give in without an argument? If so, how strong will they be at the negotiation table on your behalf? Does the agent refuse to discuss it and threaten to walk out? If so, they may not be able to successfully persuade a buyer because they lack negotiation skills. Listing your property at 6% or more is critical in this marketplace. Properties listed at less that 6% are not shown as frequently, take longer to sell, and consequently, may actually sell for less due to less market exposure. Evaluate your agent's answer to this question to determine how effective they will be in negotiation on your behalf.
8. What kind of support does your company provide that will help me sell my home faster?
Answer: As a Seller, you deserve the best brokerage service available. Full service brokerage should include the following:
a. Dominant market share. Companies that do high volume achieve that volume by providing high levels of service that results in repeat business.
b. Innovative marketing techniques: Does the company provide a "Buyer's Line," a service that allows clients to call and obtain information on a listing from the sign in front of your property? Does the company have programs that identify well-priced properties and provide special marketing for those properties?
c. A national referral network that serves virtually every city in the United States and provides relocation services for companies throughout the country.
d. A world-wide international affiliates network that services Buyers from around the world.
e. Superior financial, title, and escrow services.
f. An REO, foreclosure, or institutional services division that provides special guidance for those Sellers experiencing difficult financial situations.
9. Is having a large market share important?
ANSWER: YES! Selecting a company with a large market share in your area is important. First, these companies have large numbers of agents who are actively moving property all the time. Second, brokers will usually show listings within their own office due to familiarity as well as ease of scheduling. Third, a company with large market share typically has more programs and better sales support for their clients. If you select an agent who does lots of business individually, but whose company does not have substantial market share, you are severely limiting your exposure by relying on a single individual to sell your home rather than utilizing the power that comes from marketing through a large number of successful agents.
10. Does your company have a plan for helping me to avoid litigation?
Answer: You should only consider listing with companies who have a specific risk management program. Have each agent describe their company's program. In addition, since 95% of the litigation is over disclosure, ask each agent about the specific disclosure requirements in your state. If the agent is required to make a written disclosure, ask to see a copy of the last disclosure they completed. A disclosure statement that is extremely detailed shows that the agent is focused on providing you with the highest level of protection possible. A short statement demonstrates that the agent is either careless or inadequately trained.
11. Should I sell my property "AS IS"?
Answer: This depends on the condition of your property as well as the practices in your area. Ask your agent if it is an advantage or disadvantage to sell your property "AS-IS". Be especially careful about personally warranting (or providing a "seller warranty" on the property). Look for the agent who encourages you to disclose everything you know about the property to the buyer. Any attempt to cover up can result in serious financial loss to you. To make sure that you have the maximum protection, require your Buyer to conduct adequate inspections of all aspects of your property. Also, to provide an additional degree of protection, purchase a home warranty policy for the new buyer.
1. Do you want an agent who does a very high volume of transactions?
ANSWER: Agents who do high volume have lots of signs in the community and usually generate a large number of calls from those signs. Typically they are busy and well organized. Agents who do high volume will encourage you to price your house at or slightly below the market. Although at first glance this may appear to make their job easier, it is actually the best strategy for achieving not only a quick sale, but the best price for you was well. High volume agents will be present at your listing presentation and when there is an offer presentation. The balance of the time you will be dealing with an assistant who may or may not be licensed. Typically, high volume agents do not sit their own open houses or broker's caravan because they cannot adequately cover A large inventory alone. Consequently, they must rely on their assistants, loan agents, and title representatives to cover their opens, if they hold them at all.
2. Do you prefer an agent who will give your personal attention or who approaches the real estate business as a numbers game?
ANSWER: If you are the type of person who prefers a "more personal touch," you will not want a "numbers game" agent. An agent who is focused on personal service does fewer transactions, but is personally available to handle problems as they occur. They will also be more likely to be present at open houses and broker caravans. Agents who provide their clients with personal attention do not list and sell as much property as those individuals who are "doing the numbers." Be especially aware of agents who are doing only a few transactions a year. These individuals are not actively negotiating on a regular basis and may not be able to represent you as well as someone who is actively involved with clients.
3. What kind of support do you provide that will help me sell my home faster?
Answer: The best agents will have a ninety-day marketing plan that will include dates for broker caravan, "circle" prospecting time, open houses etc. They will also have a specific plan on how to reach the top brokers in your service area. All agents will run your property in the Multiple Listing Service and advertise in the newspaper. Do not be taken in, however, by the notion that print advertising works. Only 8% of the Buyers come from print advertising. 15% come from the sign in your yard and a whopping 64% come from other agents. Rather than relying on print advertising and the Multiple Listing Service, the best agents spend two to three hours per day door knocking and/or telephone calling to locate buyers for your property.
4. Do you have a written commitment of the services you will provide for me during the marketing and during the escrow on my property?
Answer: Ask them for their "Marketing Pledge" which will include the services they will provide including reports on showing activity, reports on the changes in the market place, progress during negotiations, regular updates throughout the course of escrow, as well as coordination of events at closing. If they are unwilling to commit in writing to what they will do, look for an agent who will give you a written commitment and then follow it.
5. Would you mind giving me the names, addresses, and telephone numbers of the last three (five) Sellers you have represented?
Answer: Call and ask the past clients the following questions: (a) Was the agent accessible to you when you felt you needed their attention? (b) Was the final selling price of your home close to the original price the agent suggested that you list at (this question probes whether the agent was realistic in presenting the facts about the market). (c) Did the agent live up to their marketing pledge and did they follow their ninety-day marketing plan? (d) Did you feel that this agent was a strong negotiator? (e) Did your agent listen to your concerns and do their best to address them? (f) Would you recommend this person to your friends?
6. How can I know for sure that the price the agent gives me is correct?
Answer: To have an accurate answer, well prepared agents will provide you with what is known as a "Square Footage Competitive Market Analysis." From this, the agent will be able to tell you how much your house should bring based upon the other square footage sales data available from the Multiple Listing Service. Also ask for exact information as to whether or not homes in your area are decreasing, staying static, or increasing in price. Ask for the supporting data in writing. Furthermore, ask exactly how much it will cost you to hold your present property considering the present market conditions. Finally, ask them to describe the present "rate of absorption." This figure describes the probability of selling in any given month based upon current market conditions.
Regardless of who you select to represent you on the sale of your property, pricing it correctly is critical. If you are serious about selling your home, carefully evaluate the comparable sales information. Since the showing activity on your home is the greatest between the second and eighth week of the listing, you are most likely to achieve your best price within the first few weeks of the listing period. "Testing" the market by overpricing will only cause you to lose money.
7. I understand that commissions are negotiable. Why shouldn't I list my property at 5%?
Answer: Ask each agent you interview this question since it will give you an idea about their negotiation style. Does the agent provide you with hard data as to why this is a bad idea? Does the agent give in without an argument? If so, how strong will they be at the negotiation table on your behalf? Does the agent refuse to discuss it and threaten to walk out? If so, they may not be able to successfully persuade a buyer because they lack negotiation skills. Listing your property at 6% or more is critical in this marketplace. Properties listed at less that 6% are not shown as frequently, take longer to sell, and consequently, may actually sell for less due to less market exposure. Evaluate your agent's answer to this question to determine how effective they will be in negotiation on your behalf.
8. What kind of support does your company provide that will help me sell my home faster?
Answer: As a Seller, you deserve the best brokerage service available. Full service brokerage should include the following:
a. Dominant market share. Companies that do high volume achieve that volume by providing high levels of service that results in repeat business.
b. Innovative marketing techniques: Does the company provide a "Buyer's Line," a service that allows clients to call and obtain information on a listing from the sign in front of your property? Does the company have programs that identify well-priced properties and provide special marketing for those properties?
c. A national referral network that serves virtually every city in the United States and provides relocation services for companies throughout the country.
d. A world-wide international affiliates network that services Buyers from around the world.
e. Superior financial, title, and escrow services.
f. An REO, foreclosure, or institutional services division that provides special guidance for those Sellers experiencing difficult financial situations.
9. Is having a large market share important?
ANSWER: YES! Selecting a company with a large market share in your area is important. First, these companies have large numbers of agents who are actively moving property all the time. Second, brokers will usually show listings within their own office due to familiarity as well as ease of scheduling. Third, a company with large market share typically has more programs and better sales support for their clients. If you select an agent who does lots of business individually, but whose company does not have substantial market share, you are severely limiting your exposure by relying on a single individual to sell your home rather than utilizing the power that comes from marketing through a large number of successful agents.
10. Does your company have a plan for helping me to avoid litigation?
Answer: You should only consider listing with companies who have a specific risk management program. Have each agent describe their company's program. In addition, since 95% of the litigation is over disclosure, ask each agent about the specific disclosure requirements in your state. If the agent is required to make a written disclosure, ask to see a copy of the last disclosure they completed. A disclosure statement that is extremely detailed shows that the agent is focused on providing you with the highest level of protection possible. A short statement demonstrates that the agent is either careless or inadequately trained.
11. Should I sell my property "AS IS"?
Answer: This depends on the condition of your property as well as the practices in your area. Ask your agent if it is an advantage or disadvantage to sell your property "AS-IS". Be especially careful about personally warranting (or providing a "seller warranty" on the property). Look for the agent who encourages you to disclose everything you know about the property to the buyer. Any attempt to cover up can result in serious financial loss to you. To make sure that you have the maximum protection, require your Buyer to conduct adequate inspections of all aspects of your property. Also, to provide an additional degree of protection, purchase a home warranty policy for the new buyer.
Friday, November 11, 2011
5 Ways to Course-Correct When Your House Hunt Takes Too Long
Some people have home-finding stories that are the real estate equivalent of the skywritten marriage proposal tales. They drove by their dream home, knocked on the front door and the elderly owner offered it to them for a song. However, most recent home buyers have tales on the other end of the charming-and-easy spectrum; tales of year-long house hunts and fruitless offer after fruitless offer, followed by a nerve-wracking, hair-pulling, interminable negotiation with the bank are much more typical.
If you've been in the market for a home for what seems like a very long time to no avail, here are five strategies for getting things back on track.
1. Know how long is (truly) too long. If you've been saving up, primping your credit and fantasizing about your dream home for 5 years, then waiting for exact right moment in your life and the market to pull the trigger for 4, viewing 15 houses over 3 weeks might seem like an interminable amount of time.
And if you make an offer that is rejected? The agony of that defeat is outweighed only by the pain of your dream (home) being deferred.
Be aware that today's market is a very slow-moving one. It's completely normal in some areas for buyers to view dozens of homes over as many months, and have several offers rejected before getting into contract. Talk with your agent about how long local buyers normally have to prowl today's market before getting some home buying satisfaction.
2. Identify where your process is breaking down. In order to course-correct your wayward house hunt, you first have to figure out what the problem actually is. If you're looking at lots of homes, but not finding anything that suits you, you might have an expectation issue. These range from having champagne tastes on a beer budget to being part of a pair of buyers with conflicting expectations that no home will ever be able to satisfy (e.g., husband wants a fixer, wife wants move-in ready).
If you're finding places you like, but your offers are consistently being shot down, you might need to work on bringing your home picks into alignment with your budget by increasing your price range, decreasing your wish list, or looking at a lower price range and making higher, more competitive offers.
Fact: an experienced buyer's agent is an expert diagnostician of house hunt ailments. If your agent told you 7 months, 43 prospective homes and 9 offers ago that your expectations are out of whack or that you need to consider some compromises, you might circle back to that advice - and consider taking it.
3. Remember how many houses are in the world, but don't try to see them all. It's easy - but unproductive - to get upset about "the one that got away;" counter that frustration by reminding yourself that you are house hunting in a market relatively flooded with housing inventory. On the other end of the getting-out-of-your-own-way spectrum, if you do find a home that really works for you in your price range, get over the idea that you have to see everything in town before you make an offer.
One more mindset reset along these lines: understand that the *perfect* house does not exist - at any price range. Petra Ecclestone just dropped $80 million in cash to buy Candy Spelling's Hollywood home and reportedly had the whole place gutted because the decor was not to her taste. In the same way people with curly hair wish they had straight and vice versa, people who have hilltop vistas wish they lived nearer to the grocery store and people who can walk to the store wish they had better views. No single home will ever satisfy every single one of your preferences, so don't hold out waiting for one that will.
4. Rethink your deal-breakers. The greater the number of absolute deal-breakers you've communicated to your agent, the fewer prospective homes you'll see. And the more flexible you can be about which listings you'll look at, the higher the chances you'll find something you like. I recently read an article in an architectural magazine about a woman who house hunted ad nauseum in a very small neighborhood she needed to be in, only finding success when her agent showed her a fourplex she could convert into the single family home she was looking for.
If you think your agent simply doesn't understand what you want, ask them to remove all pricing filters and send you homes that reflect what they think your dream house really is. Alternatively, drive around and find homes for sale or visit Open Houses that you think are closer to what you want - then investigate their list prices, or send the addresses of "suitable" homes that aren't for sale to your agent to find out what that house would go for today.
These exercises will get you and your agent communicating on the same page; will help you understand tradeoffs, wants and needs more concretely; and will very likely flick some of your mental switches around what you can expect from a property at various price ranges. This strategy is especially useful for reality-checking the expectation of home buyers relocating to a town with a higher cost of living than their current hometown.
5. Ignore the peanut gallery. People who have not bought a home in your town, your desired neighborhood and your price range at the same moment in time you find yourself house hunting are not authorities on any of the following:
(a) how dirt cheap 'those foreclosures' are,
(b) how much of a discount you should be able to negotiate,
(c) how much is too much for you to pay, or
(d) how desperate the banks or sellers are to sell.
That lack of authority, though, will not stop your family members, friends and neighbors from chiming in and offering their own critiques, exasperation, suggestions, or "what I would do if I were you is. . ."-style analyses of your own home buying strategies. Many a would-be homeowner has remained just that - a would-be homeowner - by following the advice or suggestions of someone who read a headline but has no idea of the real market dynamics you face.
Depending on where you're buying, those dynamics might include:
•banks that refuse to do repairs and may take 6 months to green-light a short sale,
•sellers who are so upside down they can barely afford to sell for the list price -- and certainly can't afford to sell for less, and
•areas in which the norm is for foreclosed homes to sell above asking after receiving multiple offers.
So, check your own references - double and triple check where you are getting your information about what homes should cost and what you should offer, and make sure that the sources are expert and up-to-date, like the experienced local agents who answer questions on Trulia Voices. Don't let your home buying efforts be foiled by relying on the inaccurate advice of well-meaning loved ones.
Source: Trulia
If you've been in the market for a home for what seems like a very long time to no avail, here are five strategies for getting things back on track.
1. Know how long is (truly) too long. If you've been saving up, primping your credit and fantasizing about your dream home for 5 years, then waiting for exact right moment in your life and the market to pull the trigger for 4, viewing 15 houses over 3 weeks might seem like an interminable amount of time.
And if you make an offer that is rejected? The agony of that defeat is outweighed only by the pain of your dream (home) being deferred.
Be aware that today's market is a very slow-moving one. It's completely normal in some areas for buyers to view dozens of homes over as many months, and have several offers rejected before getting into contract. Talk with your agent about how long local buyers normally have to prowl today's market before getting some home buying satisfaction.
2. Identify where your process is breaking down. In order to course-correct your wayward house hunt, you first have to figure out what the problem actually is. If you're looking at lots of homes, but not finding anything that suits you, you might have an expectation issue. These range from having champagne tastes on a beer budget to being part of a pair of buyers with conflicting expectations that no home will ever be able to satisfy (e.g., husband wants a fixer, wife wants move-in ready).
If you're finding places you like, but your offers are consistently being shot down, you might need to work on bringing your home picks into alignment with your budget by increasing your price range, decreasing your wish list, or looking at a lower price range and making higher, more competitive offers.
Fact: an experienced buyer's agent is an expert diagnostician of house hunt ailments. If your agent told you 7 months, 43 prospective homes and 9 offers ago that your expectations are out of whack or that you need to consider some compromises, you might circle back to that advice - and consider taking it.
3. Remember how many houses are in the world, but don't try to see them all. It's easy - but unproductive - to get upset about "the one that got away;" counter that frustration by reminding yourself that you are house hunting in a market relatively flooded with housing inventory. On the other end of the getting-out-of-your-own-way spectrum, if you do find a home that really works for you in your price range, get over the idea that you have to see everything in town before you make an offer.
One more mindset reset along these lines: understand that the *perfect* house does not exist - at any price range. Petra Ecclestone just dropped $80 million in cash to buy Candy Spelling's Hollywood home and reportedly had the whole place gutted because the decor was not to her taste. In the same way people with curly hair wish they had straight and vice versa, people who have hilltop vistas wish they lived nearer to the grocery store and people who can walk to the store wish they had better views. No single home will ever satisfy every single one of your preferences, so don't hold out waiting for one that will.
4. Rethink your deal-breakers. The greater the number of absolute deal-breakers you've communicated to your agent, the fewer prospective homes you'll see. And the more flexible you can be about which listings you'll look at, the higher the chances you'll find something you like. I recently read an article in an architectural magazine about a woman who house hunted ad nauseum in a very small neighborhood she needed to be in, only finding success when her agent showed her a fourplex she could convert into the single family home she was looking for.
If you think your agent simply doesn't understand what you want, ask them to remove all pricing filters and send you homes that reflect what they think your dream house really is. Alternatively, drive around and find homes for sale or visit Open Houses that you think are closer to what you want - then investigate their list prices, or send the addresses of "suitable" homes that aren't for sale to your agent to find out what that house would go for today.
These exercises will get you and your agent communicating on the same page; will help you understand tradeoffs, wants and needs more concretely; and will very likely flick some of your mental switches around what you can expect from a property at various price ranges. This strategy is especially useful for reality-checking the expectation of home buyers relocating to a town with a higher cost of living than their current hometown.
5. Ignore the peanut gallery. People who have not bought a home in your town, your desired neighborhood and your price range at the same moment in time you find yourself house hunting are not authorities on any of the following:
(a) how dirt cheap 'those foreclosures' are,
(b) how much of a discount you should be able to negotiate,
(c) how much is too much for you to pay, or
(d) how desperate the banks or sellers are to sell.
That lack of authority, though, will not stop your family members, friends and neighbors from chiming in and offering their own critiques, exasperation, suggestions, or "what I would do if I were you is. . ."-style analyses of your own home buying strategies. Many a would-be homeowner has remained just that - a would-be homeowner - by following the advice or suggestions of someone who read a headline but has no idea of the real market dynamics you face.
Depending on where you're buying, those dynamics might include:
•banks that refuse to do repairs and may take 6 months to green-light a short sale,
•sellers who are so upside down they can barely afford to sell for the list price -- and certainly can't afford to sell for less, and
•areas in which the norm is for foreclosed homes to sell above asking after receiving multiple offers.
So, check your own references - double and triple check where you are getting your information about what homes should cost and what you should offer, and make sure that the sources are expert and up-to-date, like the experienced local agents who answer questions on Trulia Voices. Don't let your home buying efforts be foiled by relying on the inaccurate advice of well-meaning loved ones.
Source: Trulia
Friday, November 4, 2011
Monday, October 31, 2011
Springfield Value: New vs. Old
Because of the deterioration of the Springfield neighborhood over many decades there have been many historic homes torn down for various reasons. This means that there have been/are numerous vacant lots in Springfield. Several builders have developed those lots over the past 10-15 years into infill, new construction housing complementing the historic styles. This has made new construction homes in the historic district a very real option for home buyers. As such, Springfield has seen basically two types of homebuyers over the past decade: those who want a historic home and those who move to Springfield for its urban vibe but prefer newer construction.
Recently, people have been asking me which I think will hold value in the future. While it is difficult to predict the future, looking back this is what I am seeing.
With the housing bubble, Springfield, like most neighborhoods in the US has seen a decline in value. Although all homes in Springfield have been impacted, over the past several years it seems that the new construction has taken the biggest decline, and I am seeing this in new buyer offers that are pushing value of new construction even further down.
Comparing value over the past decade in Springfield indicates that new construction value has declined about 42% whereas the renovated historic homes have declined about 20%. Why is this? Value always goes back to buyer demand. This indicates that buyers really will pay more for the craftmanship and detail work that simply cannot be replicated today at comparable prices.
So, if you are thinking of buying in Springfield and are comparing the newer construction with a historic property and are wondering which will hold its value over time, the past is a good indicator that the better investment is the historic home. You may have to make compromises, such as 2 full baths but no master bath, but you can't repicate the detail work that will help your home hold its value over time.
Recently, people have been asking me which I think will hold value in the future. While it is difficult to predict the future, looking back this is what I am seeing.
With the housing bubble, Springfield, like most neighborhoods in the US has seen a decline in value. Although all homes in Springfield have been impacted, over the past several years it seems that the new construction has taken the biggest decline, and I am seeing this in new buyer offers that are pushing value of new construction even further down.
Comparing value over the past decade in Springfield indicates that new construction value has declined about 42% whereas the renovated historic homes have declined about 20%. Why is this? Value always goes back to buyer demand. This indicates that buyers really will pay more for the craftmanship and detail work that simply cannot be replicated today at comparable prices.
So, if you are thinking of buying in Springfield and are comparing the newer construction with a historic property and are wondering which will hold its value over time, the past is a good indicator that the better investment is the historic home. You may have to make compromises, such as 2 full baths but no master bath, but you can't repicate the detail work that will help your home hold its value over time.
Tuesday, October 11, 2011
Housing Price Projections for 2012
Although home prices in the 3rd Quarter are up (email me for the 3rd quarter market update), industry analysts are predicting declines in 2012. If you have been considering putting your house on the market now maybe the best time to do it. Analysts at JP Morgan Chase are anticipating more foreclosures will hit the market in 2012 and that will drive prices down another 6%-7%, making 2012 the rock bottom year in housing prices.
In addition, the state of Florida is considering expediting the foreclosure process. Legislators are considering proposals that would divert noncontested foreclosures from the courts, allowing banks to handle them in much the same way they repossess cars. If such a measure became law, it would likely affect houses entering foreclosure after June 2012. This means falling prices could continue into 2013.
In addition, the state of Florida is considering expediting the foreclosure process. Legislators are considering proposals that would divert noncontested foreclosures from the courts, allowing banks to handle them in much the same way they repossess cars. If such a measure became law, it would likely affect houses entering foreclosure after June 2012. This means falling prices could continue into 2013.
Thursday, September 29, 2011
Does Moving Up Make Sense?
With prices and interest rates at the lowest we are likely to ever see, many of my past customers are asking me if now is a good time to sell and move into a larger home. It really depends on your personal situation.
These questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.
1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.
2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.
3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.
4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.
5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.
6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.
These questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.
1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.
2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.
3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.
4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.
5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.
6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.
Tuesday, September 27, 2011
Is it Cheaper to Rent than to Buy in Jacksonville's Intown Neighborhoods?
In many cities in the US the answer to that question is "no." Jacksonville's Intown Neighborhoods are definately still buyer's markets so I decided to check our housing stock prices against the rental sales to see if a nice decent home can be purchased for what the median rental rate was in each of the neighborhoods.
In Springfield, Riverside, Avondale, St. Nicholas, and Murray Hill the median rental price is between $800-$1000. This would be the equivalent of about a $100,000 home purchase (depending on down payment, interest rate, etc). In San Marco the median rental rate is around $1200, the equivalent of around a $120,000 home purchase. I have to admit I was skpetical on what each neighborhood has to offer under $100,000 and $120,000, but I was very pleasantly surprised. There are many great homes on the market that do not appear to need a lot of fixing up, which can be overwhelming for a first time home buyer. Many of these homes, in fact, have already been renovated and updated and would be great starter homes.
This is just one of about a million indicators suggesting that you should be buying a home if you have the credit score necessary to get a mortgage. Other indicators include: interest rates for home loans are down across the board, and adjustable-rate mortgages in particular are looking very attractive to homeowners who might not be in the house for the long haul. And while there are some justified fears that low consumer confidence could drive prices even lower, there’s also evidence that the market is starting to stabilize, especially on the local level.
Over the long haul real estate is an investment. Buying now, when so many indicators favor buyers, can save a potential homeowner lots of money that may otherwise be thrown away on a rental that they could be owning and building equity in over the years - maybe even turning their first home into a rental property when they are ready to move up into a larger home.
I will be putting out the 3rd quarter market update at the end of September in my newsletter. Comparing the Intown markets this year to last year is a good indication of which markets are stablizing. If you do not receive the newsletter, email me
In Springfield, Riverside, Avondale, St. Nicholas, and Murray Hill the median rental price is between $800-$1000. This would be the equivalent of about a $100,000 home purchase (depending on down payment, interest rate, etc). In San Marco the median rental rate is around $1200, the equivalent of around a $120,000 home purchase. I have to admit I was skpetical on what each neighborhood has to offer under $100,000 and $120,000, but I was very pleasantly surprised. There are many great homes on the market that do not appear to need a lot of fixing up, which can be overwhelming for a first time home buyer. Many of these homes, in fact, have already been renovated and updated and would be great starter homes.
This is just one of about a million indicators suggesting that you should be buying a home if you have the credit score necessary to get a mortgage. Other indicators include: interest rates for home loans are down across the board, and adjustable-rate mortgages in particular are looking very attractive to homeowners who might not be in the house for the long haul. And while there are some justified fears that low consumer confidence could drive prices even lower, there’s also evidence that the market is starting to stabilize, especially on the local level.
Over the long haul real estate is an investment. Buying now, when so many indicators favor buyers, can save a potential homeowner lots of money that may otherwise be thrown away on a rental that they could be owning and building equity in over the years - maybe even turning their first home into a rental property when they are ready to move up into a larger home.
I will be putting out the 3rd quarter market update at the end of September in my newsletter. Comparing the Intown markets this year to last year is a good indication of which markets are stablizing. If you do not receive the newsletter, email me
Monday, September 19, 2011
3 Reasons Not to Overprice Your Home
A new study by property website Zillow.com shows that many home sellers are unrealistically optimistic, asking considerably more than they're likely to get. As a result, they risk long delays in finding buyers, which means a lot of lost revenue while the house sits idle on the market.
What's more, homeowners who bought after the housing bubble peaked in 2007 were even more unrealistic than those who bought before or during the bubble, perhaps because post-bubble buyers thought they got better bargains than they actually did.
Market value is a tricky number. This is because comparable-sales data do not always provide a good guide to a home's value. Nearby homes that have sold in the past six months or so may be quite different from yours in appearance or condition, and there may be too few recent sales to get a proper valuation. That being said, you won't have much chance of getting a premium price on a your property if similar homes have sold for less.
As a seller, you have a right to ask for whatever price you want, which you can drop if no one bites. You may get lucky, but asking too much involves a number of risks, even if you're just "testing the market" for a few weeks or months.
On the pro side, you might get your high asking price. Selling a house is not like a dealer selling cars or McDonald's selling Big Macs, because the home seller needs only one buyer. It's possible that someone will find your home so perfect that it justifies a premium price. For example, a home with a garage converted into a shop may be a turnoff to most buyers because most of them have cars, but a nondriving tinkerer may love the extra work space.
More often, though, pricing your home too high works against you in some important ways. Here are three of them:
1. Agents react. Real-estate agents — yours and the buyers' — may not want to waste time with a home that's unlikely to sell. Though a higher price means a bigger commission, agents might figure they can move two or three homes in the time it would take to sell yours, earning more even if each offers a smaller commission than your property does.
2. Buyers react. Buyers who like your house but pass on your property because of the price may find something else and close a deal before you drop your asking price to a level they'd accept.
3. You need that money. Even if you get your full asking price, the time it takes to get it may cause you to miss out on the house you want to buy. You may have to settle for something that's not as suitable. Even worse, you may end up spending more than you had planned, offsetting the premium you got on your sale.
Setting a proper sale price is both an art and a science. A key step is to shop carefully for an agent who can help you, looking for one who is very familiar with your community and comes with good references. Steer clear of dabblers who sell only a few homes a year. You want a pro who is on top of the market and will value a good reference from you.
Drive around to look at the "comparable" homes used to set your asking price, and look for others if necessary. If you're on a park, don't use a comparison from a home down on busy street. Make sure the house's curb appeal matches yours. Keep in mind that a computer that spits out comparable sales isn't likely to know that your home has a new kitchen and the others don't.
Finally, keep an eye on the "traffic" - the number of potential buyers who come through your property. A good agent will have a sense of how many buyers are looking. If you are not getting your share, it's a sign you are reaching on price. If dropping your price is inevitable, it's better to do it sooner than later.
What's more, homeowners who bought after the housing bubble peaked in 2007 were even more unrealistic than those who bought before or during the bubble, perhaps because post-bubble buyers thought they got better bargains than they actually did.
Market value is a tricky number. This is because comparable-sales data do not always provide a good guide to a home's value. Nearby homes that have sold in the past six months or so may be quite different from yours in appearance or condition, and there may be too few recent sales to get a proper valuation. That being said, you won't have much chance of getting a premium price on a your property if similar homes have sold for less.
As a seller, you have a right to ask for whatever price you want, which you can drop if no one bites. You may get lucky, but asking too much involves a number of risks, even if you're just "testing the market" for a few weeks or months.
On the pro side, you might get your high asking price. Selling a house is not like a dealer selling cars or McDonald's selling Big Macs, because the home seller needs only one buyer. It's possible that someone will find your home so perfect that it justifies a premium price. For example, a home with a garage converted into a shop may be a turnoff to most buyers because most of them have cars, but a nondriving tinkerer may love the extra work space.
More often, though, pricing your home too high works against you in some important ways. Here are three of them:
1. Agents react. Real-estate agents — yours and the buyers' — may not want to waste time with a home that's unlikely to sell. Though a higher price means a bigger commission, agents might figure they can move two or three homes in the time it would take to sell yours, earning more even if each offers a smaller commission than your property does.
2. Buyers react. Buyers who like your house but pass on your property because of the price may find something else and close a deal before you drop your asking price to a level they'd accept.
3. You need that money. Even if you get your full asking price, the time it takes to get it may cause you to miss out on the house you want to buy. You may have to settle for something that's not as suitable. Even worse, you may end up spending more than you had planned, offsetting the premium you got on your sale.
Setting a proper sale price is both an art and a science. A key step is to shop carefully for an agent who can help you, looking for one who is very familiar with your community and comes with good references. Steer clear of dabblers who sell only a few homes a year. You want a pro who is on top of the market and will value a good reference from you.
Drive around to look at the "comparable" homes used to set your asking price, and look for others if necessary. If you're on a park, don't use a comparison from a home down on busy street. Make sure the house's curb appeal matches yours. Keep in mind that a computer that spits out comparable sales isn't likely to know that your home has a new kitchen and the others don't.
Finally, keep an eye on the "traffic" - the number of potential buyers who come through your property. A good agent will have a sense of how many buyers are looking. If you are not getting your share, it's a sign you are reaching on price. If dropping your price is inevitable, it's better to do it sooner than later.
Monday, September 12, 2011
What to do if your house still hasn't sold by Labor Day
The house-hunting season in NE Florida is a little different than in other parts of the country. In most areas of the country, Spring and Summer are the busy seasons whereas in NE Florida our Summer's tend to be so hot that house-hunting actually slows down. As we begin to enter the cooler seasons here, house-hunting tends to pick up September through mid-November, slowing a little for the holidays, then picking back up again after the holidays through the Spring.
We are noticing this year that there is a lower inventory of competitive properties on the market. People are only selling their homes if they really have to and buyers have also become much pickier since the housing crisis turned it into a buyer’s market. There’s not a good selection of homes out there right now, so keeping your house listed as we head into the higher selling season is a good idea.
There will be a new crop of buyers out there now, including anyone who couldn’t find the right home during the height of house-hunting season last Spring and took a break from looking to go on vacation in the heat of the Summer. They will be looking to close by Thanksgiving.
If you are going to keep your house on the market as we head into the higher selling season here are some tips to remember:
Reconsider the Price
If your house has been on the market since last Spring, you need to look at what other properties sold over the summer in your area and what they sold for. If your asking price is much higher, you may need to lower it.
We all love our homes, but pricing is based on supply and demand.
Review your Marketing Strategy
Since you’re dealing with a small window of time in which buyers will still be actively looking before the holiday slow down, you’ll need to also review your advertising or marketing strategy.
Talk to your real estate agent and find out where their leads have been coming from. Push to have the marketing freshened up in these areas, including new photos and new language.
Give Your Home a Face Lift
Curb appeal is immensely important. Buyers watch HGTV and they go out and look for homes that look the ones on their TV shows.
As such, homeowners should spend some time improving their house’s exterior. For instance, a fresh coat of paint on the front, new shutters or a glossy finish on the doors. Also consider changing your landscaping to reflect the fall foliage. Replace the flowers with fall plants.
What other tactics can homeowners use to increase the likelihood their house will finally sell? I put together an "owner’s guide to selling" that also provides additional staging tips. If you aren't already working with a Realtor, email me for a copy.
We are noticing this year that there is a lower inventory of competitive properties on the market. People are only selling their homes if they really have to and buyers have also become much pickier since the housing crisis turned it into a buyer’s market. There’s not a good selection of homes out there right now, so keeping your house listed as we head into the higher selling season is a good idea.
There will be a new crop of buyers out there now, including anyone who couldn’t find the right home during the height of house-hunting season last Spring and took a break from looking to go on vacation in the heat of the Summer. They will be looking to close by Thanksgiving.
If you are going to keep your house on the market as we head into the higher selling season here are some tips to remember:
Reconsider the Price
If your house has been on the market since last Spring, you need to look at what other properties sold over the summer in your area and what they sold for. If your asking price is much higher, you may need to lower it.
We all love our homes, but pricing is based on supply and demand.
Review your Marketing Strategy
Since you’re dealing with a small window of time in which buyers will still be actively looking before the holiday slow down, you’ll need to also review your advertising or marketing strategy.
Talk to your real estate agent and find out where their leads have been coming from. Push to have the marketing freshened up in these areas, including new photos and new language.
Give Your Home a Face Lift
Curb appeal is immensely important. Buyers watch HGTV and they go out and look for homes that look the ones on their TV shows.
As such, homeowners should spend some time improving their house’s exterior. For instance, a fresh coat of paint on the front, new shutters or a glossy finish on the doors. Also consider changing your landscaping to reflect the fall foliage. Replace the flowers with fall plants.
What other tactics can homeowners use to increase the likelihood their house will finally sell? I put together an "owner’s guide to selling" that also provides additional staging tips. If you aren't already working with a Realtor, email me for a copy.
Tuesday, September 6, 2011
Founder of ForSaleByOwner.com Gets Broker Help
I can’t resist commenting on the story which recently appeared in the Wall Street Journal regarding Colby Sambrotto, the founder and former CEO of forsalebyowner.com. It seems the founding father and lifelong evangelist of the concept of selling your home without a real estate agent was forced to hire a broker to sell his home after failing at what he preaches others should do.
After failing to sell his NYC apartment on his own as a For Sale By Owner (FSBO), Sambrotto hired a broker and paid a 6% commission in order to get the job done. His personal experience helps refute some of the myths Sambrotto has been espousing for over a decade. Let's look at two of those myths:
Myth #1 – You Will Pocket More Money Selling on Your Own
Most FSBO sites say you can save the commission by selling on your own. What happened in Sambrotto’s sale?
From the WSJ article:
“The broker, Jesse Buckler, said he told Mr. Sambrotto the apartment in the Lion’s Head building on West 19th Street near Sixth Avenue was priced too low and wasn’t drawing the right buyers.
By May, it went into contract, he said, after attracting multiple offers. It closed in the last few days for $150,000 more than the original asking price.”
Myth #2 – The Internet Alone Can Sell Your Home
Many have said that, with the introduction of home search on the internet, hiring an agent is no longer a necessity. What happened to the FSBO guru when he attempted to only depend on the internet?
From the WSJ article:
“Looking to move his family to the suburbs, [Mr. Sambrotto] said he carefully staged his apartment for sale himself, and put it on the market. But after using a mix of websites to publicize his apartment, he said he had only ‘middling success’ and switched to a broker because many buyers were so reliant on brokers.”
Real estate brokers utilize many ways to market properties, not just the internet.
Bottom Line
There is a reason the real estate industry has been around for centuries: it performs a valuable service.
After failing to sell his NYC apartment on his own as a For Sale By Owner (FSBO), Sambrotto hired a broker and paid a 6% commission in order to get the job done. His personal experience helps refute some of the myths Sambrotto has been espousing for over a decade. Let's look at two of those myths:
Myth #1 – You Will Pocket More Money Selling on Your Own
Most FSBO sites say you can save the commission by selling on your own. What happened in Sambrotto’s sale?
From the WSJ article:
“The broker, Jesse Buckler, said he told Mr. Sambrotto the apartment in the Lion’s Head building on West 19th Street near Sixth Avenue was priced too low and wasn’t drawing the right buyers.
By May, it went into contract, he said, after attracting multiple offers. It closed in the last few days for $150,000 more than the original asking price.”
Myth #2 – The Internet Alone Can Sell Your Home
Many have said that, with the introduction of home search on the internet, hiring an agent is no longer a necessity. What happened to the FSBO guru when he attempted to only depend on the internet?
From the WSJ article:
“Looking to move his family to the suburbs, [Mr. Sambrotto] said he carefully staged his apartment for sale himself, and put it on the market. But after using a mix of websites to publicize his apartment, he said he had only ‘middling success’ and switched to a broker because many buyers were so reliant on brokers.”
Real estate brokers utilize many ways to market properties, not just the internet.
Bottom Line
There is a reason the real estate industry has been around for centuries: it performs a valuable service.
5 Great Reasons to Sell Your House Today
Determining when the right time to sell your house can be a difficult decision. It really depends on what your familiy's needs and goals are. If you don’t need or want to move for a few years it might make sense to wait for the housing industry to recover and prices to appreciate. However, if you wish to move within the next six to eighteen months, it is probably better to sell sooner rather than later. Here are five reasons why:
Your House Will Get More Exposure in the Fall than in the Winter
Spring housing sales usually level off in the summer and then regain momentum in September/October. With the spring buyers’ market having passed, don’t miss the early fall market. It consistently outperforms the winter season.
Distressed Properties Will Impact Prices
All of the real estate information available is indicating that distressed properties (foreclosures and short sales) on the market will increase this fall and winter. This will put tremendous downward pressure on prices for at least the next 12-18 months. Get your home sold before they become your competition.
Mortgages Will Become More Difficult to Attain
Lending standards are continuing to tighten. There is legislation currently being considered that will make it even harder for buyers to qualify. Less demand will equate to lower prices.
Now is the Perfect Time to Move-Up
With prices where they are and interest rates at all time lows, there may have never been a better time to move-up into your dream home. If you move into a more desirable home now, you will be in position to gain larger equity as prices eventually appreciate.
Most Importantly, You Get to Move On with Your Life
Probably the most important reason to sell is so you can get on with your life. You are considering selling for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you are thinking about moving. Are these reasons really important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.
The KCM Blog
Your House Will Get More Exposure in the Fall than in the Winter
Spring housing sales usually level off in the summer and then regain momentum in September/October. With the spring buyers’ market having passed, don’t miss the early fall market. It consistently outperforms the winter season.
Distressed Properties Will Impact Prices
All of the real estate information available is indicating that distressed properties (foreclosures and short sales) on the market will increase this fall and winter. This will put tremendous downward pressure on prices for at least the next 12-18 months. Get your home sold before they become your competition.
Mortgages Will Become More Difficult to Attain
Lending standards are continuing to tighten. There is legislation currently being considered that will make it even harder for buyers to qualify. Less demand will equate to lower prices.
Now is the Perfect Time to Move-Up
With prices where they are and interest rates at all time lows, there may have never been a better time to move-up into your dream home. If you move into a more desirable home now, you will be in position to gain larger equity as prices eventually appreciate.
Most Importantly, You Get to Move On with Your Life
Probably the most important reason to sell is so you can get on with your life. You are considering selling for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you are thinking about moving. Are these reasons really important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.
The KCM Blog
Dog Park Proposed for Riverside
From Un-used Storage Lot to Community Resource
The Riverside Dog Park is a two-acre, off-leash dog park currently being planned for the northwest corner of Riverside Park, adjacent to College Street. Approximately one-third of the property, under the Interstate 95 overpass, would be re-purposed from a Florida Department of Transportation (FDOT) storage lot and added to the existing lands of Riverside Park. Through an in-kind donation from the Haskell Company, and with RAP’s support, a committee has met regularly with a landscape architect to develop a draft plan for the park
Key Features of the Riverside Dog Park:
One-and-a-quarter acre large/active-breed area. The active area will feature decomposed granite ground cover, an eighth of a mile walking path and a shade pavilion.
Quarter-acre small/passive-breed area featuring significant old-growth tree coverage and bench seating.
Ample on-street parallel parking will be created along with one dedicated handicapped-accessible parking space, adjacent to the existing JEA substation.
Double-gated entries for both pet areas accessible by keyfobs.
A new sidewalk that will connect Park and College Streets – serving as a neighborhood connector.
Dog Park will extend north to Annie Lyttle School property line, hopefully renewing interest in the rehabilitation of this historic building.
A Demonstration of Low Impact Development (LID)
The park will serve as a demonstration of low-impact development that protects the St Johns River, located a quarter-mile to the east. As the park is constructed, an active effort will be made to recycle removed materials, particularly concrete, and to use recycled materials wherever possible. The active area of the park will house a bio-retention pond, featuring natural grasses and plant life that filters any park runoff before it reaches the river. Existing foliage will be preserved to the extent possible, and new plants and grasses native to the Northeast Florida region will be incorporated. Educational signage will be posted to help inform the public about this aspect of the project.
A Self-Sustaining Community Resource
As planned, residents will access the park via a key fob access system through the main entrance off the east side of College Street. Residents will be able to purchase a key fob at various local retailers for a nominal fee (e.g. $25/year), and funds raised through the sale of the fobs will be dedicated to park repair, maintenance, and neighborhood preservation.
Project Campaign and Timeline for Completion
RAP and other community supporters of the Riverside Dog Park expect to begin a fundraising campaign this fall and hope to have funding, City support and necessary land leases completed in the late fall or early spring. Construction is expected to take up to two months. Opening day is slated for late spring or early summer 2012.
How You Can Help
Purchase a paver. RAP is currently working on a fundraising campaign that will feature ways to honor your loved pets.
Donate to the park. Small donations make a difference as well. Donation jars will be set up at the RAP Booth at Riverside Arts Market and at RAP Headquarters (2623 Herschel Street).
Source: RAP
The Riverside Dog Park is a two-acre, off-leash dog park currently being planned for the northwest corner of Riverside Park, adjacent to College Street. Approximately one-third of the property, under the Interstate 95 overpass, would be re-purposed from a Florida Department of Transportation (FDOT) storage lot and added to the existing lands of Riverside Park. Through an in-kind donation from the Haskell Company, and with RAP’s support, a committee has met regularly with a landscape architect to develop a draft plan for the park
Key Features of the Riverside Dog Park:
One-and-a-quarter acre large/active-breed area. The active area will feature decomposed granite ground cover, an eighth of a mile walking path and a shade pavilion.
Quarter-acre small/passive-breed area featuring significant old-growth tree coverage and bench seating.
Ample on-street parallel parking will be created along with one dedicated handicapped-accessible parking space, adjacent to the existing JEA substation.
Double-gated entries for both pet areas accessible by keyfobs.
A new sidewalk that will connect Park and College Streets – serving as a neighborhood connector.
Dog Park will extend north to Annie Lyttle School property line, hopefully renewing interest in the rehabilitation of this historic building.
A Demonstration of Low Impact Development (LID)
The park will serve as a demonstration of low-impact development that protects the St Johns River, located a quarter-mile to the east. As the park is constructed, an active effort will be made to recycle removed materials, particularly concrete, and to use recycled materials wherever possible. The active area of the park will house a bio-retention pond, featuring natural grasses and plant life that filters any park runoff before it reaches the river. Existing foliage will be preserved to the extent possible, and new plants and grasses native to the Northeast Florida region will be incorporated. Educational signage will be posted to help inform the public about this aspect of the project.
A Self-Sustaining Community Resource
As planned, residents will access the park via a key fob access system through the main entrance off the east side of College Street. Residents will be able to purchase a key fob at various local retailers for a nominal fee (e.g. $25/year), and funds raised through the sale of the fobs will be dedicated to park repair, maintenance, and neighborhood preservation.
Project Campaign and Timeline for Completion
RAP and other community supporters of the Riverside Dog Park expect to begin a fundraising campaign this fall and hope to have funding, City support and necessary land leases completed in the late fall or early spring. Construction is expected to take up to two months. Opening day is slated for late spring or early summer 2012.
How You Can Help
Purchase a paver. RAP is currently working on a fundraising campaign that will feature ways to honor your loved pets.
Donate to the park. Small donations make a difference as well. Donation jars will be set up at the RAP Booth at Riverside Arts Market and at RAP Headquarters (2623 Herschel Street).
Source: RAP
Monday, August 29, 2011
Intown Market Watch
The August Intown Market Watch is now available. It tracks sold prices, list price vs. sold price, days on market, new listings vs expired listings vs withdrawn listings for all the intown Jacksonville neighborhoods: Riverside, Avondale, San Marco, Murray Hill, St. Nicholas, Downtown, and Springfield. If you want a copy send me your email, it is in Word and PDF formats.
Wednesday, August 24, 2011
The Veggie Bin
The Veggie Bin is a GREAT business in Jacksonville's urban core that I thought I would highlight for those who may not be aware of it. The Veggie Bin partners with local farmer's each week to provide its members with farm fresh produce delivered to their door.
This is a great way not only to support a local urban core business, but local farmers too! In addition, The Veggie Bin is partnering with other local Jacksonville businesses to bring other great products to their members, such as local honey, coffee, bread, soap, etc.
Supporting local business is good for Jacksonville's development in so many ways. I will try to highlight more and more of the great local businesses that we have in the urban core.
This is a great way not only to support a local urban core business, but local farmers too! In addition, The Veggie Bin is partnering with other local Jacksonville businesses to bring other great products to their members, such as local honey, coffee, bread, soap, etc.
Supporting local business is good for Jacksonville's development in so many ways. I will try to highlight more and more of the great local businesses that we have in the urban core.
The Spark Plan
If you haven't read/heard about The Spark Plan yet, here is a quick blurb to get you caught up. The “Spark,” a partnership among the City, the Cultural Council of Greater Jacksonville, Downtown Vision Inc., JTA and the private sector, is focused on creating a redevelopment plan for the Northbank core based on attracting artists to live and work Downtown and using unoccupied historic buildings.
This is really exciting for Jacksonville. In cities all over the US, creative people have moved into "unusable" spaces or neglected neighborhoods, often for cost/price issues. But the creative energy they bring is often the "spark" that ignites more development, such as galleries, coffee shops, restaurants, shops, etc to move in. The biggest example of this to look at is, of course, SOHO in NY. More locally, Ybor City in Tampa was also "sparked" in this way in the early 1990's.
Recently, James Richards, the co-founder and principal at TOWNSCAPE, Inc visited to assist with The Spark Plan. You can read Part one of his interview here and part two here
This is really exciting for Jacksonville. In cities all over the US, creative people have moved into "unusable" spaces or neglected neighborhoods, often for cost/price issues. But the creative energy they bring is often the "spark" that ignites more development, such as galleries, coffee shops, restaurants, shops, etc to move in. The biggest example of this to look at is, of course, SOHO in NY. More locally, Ybor City in Tampa was also "sparked" in this way in the early 1990's.
Recently, James Richards, the co-founder and principal at TOWNSCAPE, Inc visited to assist with The Spark Plan. You can read Part one of his interview here and part two here
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