Pricing your home to sell in a rising market.

In the real estate business you are either a seller or a comparable property used to make the guy down the street the seller. 

Some folks go to the trouble of hiring an agent to "market" their home even though are not really sellers. 

Just because one puts an entry in the MLS, places a sign out front and gets a few showings does not make them "sellers."

When is a seller not really a seller?  When the price is not competitive with the market.

In a rising market, such as the current Brevard County, Florida real estate market, it is completely acceptable to price optimistically.

A couple of other real estate pricing realities:  (1) Listed price does not require one to sell if an offer comes in at that price.  (2)  Sellers can always raise the listing price.  In other words, there is no such thing as listing too low.

Pricing is a reflection of a seller's goals, timeline, and circumstances (motivation).   I am referring to those sellers who are way out of the realm of reality.... the dreamers, hoping to capture a sucker.  Even if  an offer arrives the property will need to appraise for a mortgage unless it is a cash offer.

If you are ready to be a seller in Brevard County, Florida, call me at 321-693-3850 or email me.

Selling your Brevard County, Florida Home - What is a "pocket listing?"

"Pocket listings" seem to be returning to the real estate market.  .

What is a pocket listing?   Some definitions refer to when a real estate broker has a listing agreement but waits before placing it in the multiple listing service to have time to find a buyer themselves.  This practice is typically prohibited by multiple listing rules.

I am referring to the situation where a potential seller does not want to list their home at the time but a real estate agent is aware if a buyer is found the owner will consider selling.

In a period of rising prices sellers may not be fishing for buyers but they are sitting on the banks.

Pocket listings, in my opinion,  reflect an uncommitted seller who will, if the right offer comes along, sell.   This limited "non-distribution" of the seller's interest restricts the possibilities.

If you want to really sell your Brevard County, Florida house let's get it listed and marketed to your prospective buyer pool.

Preparation for selling is something folks shouldn't do after they don't get offers....

The average number of days on the market for residential properties since May 1, 2013 is 77 days.  That is really not a long time.  The median number of days on the market for the same period is 38 days.

Why do some homes stay on the market longer?  There could be lots of reasons ranging from price too high, price for condition, circumstances of sale (short sale, foreclosure), etc.  Sometimes a property is unique in style or price range.

For example, high end properties (over several million dollars) have a smaller potential buyer pool in Brevard County, Florida.  There are currently 13 properties for sale in Brevard County listed at $3,000,000 or more.  There are ninety six residential properties listed at or above a million dollars.  The number of buyers shopping in this range is certainly limited.  No wonder some of these sit on the market for years.

If your home is for sale and has been sitting a while take a look at a couple of things.  First,consider the price.  It is almost always about price.

Secondly, consider the property condition.  It maybe a simple case of doing some little things to better prepare your home for the eyes of discerning (sometimes hypercritical).

Preparation for selling should not be something folks do after they fail to receive offers - do it first....

Should a real estate agent lie for their seller? A rhetorical question....

I just read an article that discussed whether it was ever ethical for a real estate agent to lie for their seller.  This discussion centered around one real estate agent telling another agent they there is already another offer on the table.

As the market shifts I would like to think that the "another offer" response will not be used to twist a buyer into making a higher offer.  I am hopeful it will be used in very limited circumstances when their actually is another offer.

Not long ago I wrote about "Multiple Offers - Is this a scam?" 

Once a property has been found and it is time make an offer buyers should decide up front the most money they are willing to pay for the property.  Then when the multiple offer response surfaces they will know the direction to take and not get caught up in some bidding war.  It is becoming a seller's market so buyers must think things through - not respond with an automatic higher offer.

So back to the question "Should a real estate agent lie for their seller?"

I am not a moral judge here. My answer is a firm no.

Realtors® have a responsibility to the public - honesty.

If an agent will lie to another agent, what stops them from lying to a client?

Does waiting make sense if you will get less for more later?

I know a prospective home buyer who has been thinking about buying a home for a long time.   This buyer can afford a purchase of "A dollars" based on credit scores, income and obligations, etc.   This buyer wants a monthly payment of "B dollars."

Having a solid budget in mind is great.  It is amazing how many buyers look at "A dollars" and take that as the spending target.

The "B dollars" payment is based on a purchase price about 35% less than the pre-appoved purchase price.  Now disappointment sets in as the desired property will likely cost about 15% less than the approved amount.

What does a prospective home buyer do?  There are three choices here.

1. Not purchase anything. 
2. Raise acceptable monthly payment.
3. Change expectations.

Which is the best choice?

The real estate market in Brevard County is shifting with prices increasing steadily at the moment.  In a period of rising prices and the potential for increased interest rates the first option may be the least desirable.   Interest rates change purchase ability.   Although a cushion exists in this case, why wait and pay more?

The other two choices are strictly a personal decision related to long term goals, savings plans, future planning and the like.  I will not advise anyone to pay more than they want to spend.  The purchase of a house is a long term obligation and a decision that should be entered into freely - not pressured like a used car salesman!

The expectations one has in a home is something buyers need to consider.  There are the things a house must have (location, size, yard size, etc) and then there things the house can not have (repair issues, design flaws, etc).

Finally, let me add one more choice to the three listed above.

      4.  Increase the down payment to bring the monthly payment in line with desires.

This is sometimes not a real choice so I did not list it above.  Still, if it is something that could be achieved, it should be considered as well. 

As prices increase I think of the words "a rising tide lifts all boats" coined by John F. Kennedy.  An increasing trend in real estate prices will also raise the price of even the less desirable properties.

Does waiting make sense if you will get less for more later?  Only the buyer can make this decision.

Home Buyer Tips - Why do I need my own buyer's agent?

I have spoken with many prospective buyers through the years who did not have their own real estate agent.

In most cases they were calling me because it was my listing and they saw my sign out front.  I appreciated the call.  At other times if twas at an open house.

If you call me about one of my listings I will do my very best to sell my client's house to you or another one if you do not have your own real estate agent.

If you stop by my open house I will try to sell you my client's house or get you to commit to working with me and find another property later.  Again, that is if you do not have a real estate agent already. 

Also, if you stop by that model home the representative on site works for the builder.  You can (and should) have your own real estate agent with new construction as well!

In the sales business this is simple lead conversion.

Now here is why you should not call the real estate agent who has a sign in the front yard.  Because the real estate agent with the sign in the yard works for the seller.

This concept is one many first time buyers do not understand.  If you are new to the home buying process (or experienced) call me at 321-693-3850 of I can help in any way.

What are the two most important steps in buying a home?

What are the two most important steps in buying a home?

There probably thousands of articles on the Internet that provide information on "How to buy a home."

They likely all include many very similar items all of which are very important.  However, I believe there are two points that more important than the others.

If you skip or fail to adequately accomplish these check marks, much of the other information will be pretty useless. Those steps include:

1. Get pre-approved.  You must know up front exactly what you can purchase.  You must have an understanding of the cost of home ownership including some of the items/expenses you can not control.   A budget in hand is key.  It is from this vital information decisions can be made as to location, size, age, etc.   The ability to purchase is key to the entire process.
2. Get a professional buyer's agent.  Your relationship with your Realtor® is key.  It should be a long term relationship (future referrals, future business).  

If you do these two things first then the rest of the process will be much easier and your chance of success improved.

Whether you are an experienced home buyer or a first time home buyer I suggest you take advantge of your real estate agent's knowledge early on  in the process.   As I see it the responsibilities of professional real estate agents includes the requirement to inform and educate the client in the process.

Don't have a real estate agent?  Send me an email or give me a call if you have any questions. 

Home Seller Tips - The price of memories...

Selling a home is an emotional experience.  Sellers are very often attached to the memories associated with their house.

Sometimes sellers attempt to price in these memories when they are trying to sell their home.  If memories could have a price tag associated with them you can be sure the seller's price will not be anywhere near a prospective buyer's value.

Selling a home requires sellers to keep emotions in check.  When deciding on a listing price for your home an unemotional cost-benefit analysis is a good starting point.

First, consider why you are selling?  Are you moving up to a larger home or downsizing?  In a market with increasing prices (and competition) your replacement property will also be increasing in price as your home lingers on the market.  Is this a winning scenario?

What about the carrying costs?  Do you want to continue paying your mortgage, insurance, association dues and other expenses for additional months?

Think about interest rates as well.  Are they headed up?  As interest rates increase the buying power for those getting a mortgage will likely decrease.

And then what about the constant disruption to your life as you endure people always wanting t o view your property.  

When you are ready to list your home consider your pricing strategy early on.  The two key considerations impacting your success - price and preparation -  can not be lightly addressed.

As for the price of memories?  There is no need to price your memories.  They will go with you wherever you may move next.

Fairway Lakes at Viera - Golf Course Homes for Sale in Viera, Florida

A customer asked me to send him some photos of the gated  Fairway Lakes at Viera community over the weekend so I wanted to share them here as well along with a market update.

 The Fairway Lakes community offers gated, golf course living on one of Brevard County’s most desirable course – Duran Golf Club.

Located near The Avenues at Viera shopping mall, the new Viera Hospital, Viera High School, and more, Fairway Lakes offers homeowners a great location, quality executive homes at very reasonable prices.

Since January 1, 2013 there have been four homes sold in Viera's gated executive community of Fairway Lakes at Viera. 

These homes sold for prices ranging from $396,000 to a high of $622,000.  The other two homes sold for $550,000 and $590,000. 

Prices for homes in Fairway Lakes at Viera can vary considerably due to builder (for example Toll Brothers, Rutenberg Homes, Christopher Burton, Viera Builders), location and view (golf course direct, water), amenities, and other factors such as circumstances of sale will influence price.

Currently there are three active listings in Fairway Lakes at Viera.  The listing prices for these homes range from $459,000 to $689,800.   These are all pool homes and were built by Arthur Rutenberg and Toll Brothers builders.  Under air size varies from 2,817 to 4,049 square feet under air.

And it is possible to get new construction in Fairway Lakes as well…. send me an email for new construction information.

For information homes for sale in Fairway Lakes at Viera, please give me a call at 321-693-3850 or email me.

Should a buyer have a survey done?

I just read a comment by a real estate agent about how newer developments have better marked property lines so surveys are not really necessary.

Really?  Not so fast with such blanket comments!

I always recommend a survey be done by the buyer.   Here in our part of Florida the going cost is only about $300-$400 for the usual residential survey.

I have never had a single buyer not get a survey done - even in the newer developments in areas like Viera, Florida.

Pools or their decking/enclosure can encroach into easements (seen this one).  Although not intentional, fences have been installed on the wrong property (seen this as well).  By the way both of these were in newer developments within Suntree and Viera (Melbourne, Florida).

As a future homeowner it is certainly better to know your property boundaries before you sign than later when an issue arises.

Get the survey done as well as a property inspection, termite inspection and any others deemed necessary as a result of these inspection.  A home purchase is a major obligation deserving of the expense required for professional inspections.

Why I want to be your Brevard County, Florida Real Estate Agent.

Think of all the service businesses you have encountered through the years.  Some were likely really good and some were probably really bad.

Anyone in a service business wants only one thing - to be among the really good.   Still there is probably one other category of business providers.   The ones you have forgotten along the way.

Two of these, the bad and the forgotten, are never good for business.   Word of mouth referrals will never come to the bad.  Repeat business nor referrals will never come to the forgotten. 

So why do I want to be your Brevard County, Florida real estate agent?    Because I know customers notice.  

And they remember - long after their Realtor® has moved on.  And word of mouth referral is my greatest source of new business.

Considering buying or selling a home in Viera, Suntree or Rockledge, Florida?   Call me at 321-693-3850 or email me. 

 Let me earn your future referral.

 

Brevard County, Florida Homes Sold May 2013 by Zip Code (Zip Code 32955 32940 32935 32934 32952 32953 32931 32901 32931)

The below represents residential properties sold in some Brevard County, Florida zip codes during May 2013 as reported in the Brevard Realtors MLS system.

Groupings are by general area of the county although they do not include every single zip code.  The purpose is to provide a general idea of the trending prices by area. 

Titusville, north
32780/32796  Units Sold  - 66  Average Days on Market - 75   Average Selling Price - $98,977  

Port St John
32927            Units Sold - 30   Average Days on Market - 86   Average Selling Price - $98,666

Rockledge/Viera/Suntree
32955            Units Sold  - 56  Average Days on Market - 69   Average Selling Price - $204,341
32940            Units Sold  - 77  Average Days on Market - 82   Average Selling Price - $247,278          

Eau Gallie/Satellite Beach         
32935            Units Sold  - 44  Average Days on Market - 77  Average Selling Price - $95,651

West Melbourne         
32934            Units Sold - 16  Average Days on Market  - 81  Average Selling Price - $311,088

Merritt Island
32952            Units Sold  - 35  Average Days on Market - 82  Average Selling Price - $230,543
32953            Units Sold - 36  Average Days on Market  - 65  Average Selling Price - $182,890

Cocoa Beach
32931            Units Sold - 12  Average Days on Market  - 56  Average Selling Price - $284,230

Melbourne/Melbourne Beach
32901            Units Sold - 29  Average Days on Market  - 77 Average Selling Price - $101,478

Palm Bay area (32905,32907,32908,32908)
                      Units Sold - 174  Average Days on Market - 72 Average Selling Price - $95,302

What can be gathered from these numbers?    Generalizations are not always good however these prices reflect one thing that is consistent...lower prices in the southern and northern boundaries of the county.

For information on homes for sale in Brevard County, Florida, please give me a call at 321-693-3850 or send me an email.

The Ventura at Turtle Creek condo communty in Rockledge, Florida - Market activity June 2013

The gated condo community of The Ventura at Turtle Creek located in Rockledge, Florida offers owners some of the best amenities in the area in a central Florida location close to everything.

With its club house, pool, conservation area, convenient location next door to Turtle Creek Golf Course, proximity to excellent schools and more, this gated condo complex deserves a look if you are considering a central Florida condo.  These units would also make a great weekend getaway or second home with Orlando International Airport only 40 miles away.,

As of June 4, 2013 there are two active units in The Ventura at Turtle Creek condo complex in Rockledge, Florida.

One is a standard sale and the other foreclosure.  Both of these units have been on the market for less than three weeks and the list prices are indicators of increasing prices ($125,000, $109,900).

Currently there are nine units under contract.  Of these only only two are standard sales.  Not surprisingly these two units are also the highest priced of the pending units (both listed at $110,000).

There were four units that closed in May 2013:

• 3868 Lexmark Lane #301 - a 1,247 sq.ft. 3/2/ 1 car garage unit, sold price $105,000 (cash)

• 3868 Lexmark Lane #401 - a 1,247 sq.ft. 3/2/ 1 car carport unit, sold price $102,500 (cash)

• 3868 Lexmark Lane #302 - a 1,112 sq.ft. 2/2/ 1 car garage, sold price $98,500 (cash)

• 1626 Peregrine Circle #405 - a 1,412 sq.ft. [foreclosure] 3/2/ 1 car garage overlooking a pond, sold price $110,000 cash 

For information on condos for sale in Rockledge and Viera, Florida, send me an email or give me a call at 321-693-3850.

Real estate is local. Your best source of real estate information will also be local.

The same story oft repeated becomes believed by many.  Whether uneducated or under educated,  incorrect information must be corrected.

One of the many roles of a real estate agent includes educating the consumer and guiding them through them through the process at hand (buy, sale, lease, etc).

Recently while showing a property I heard an individual remark about the listings they had seen on Zillow.

After I very politely corrected the misconception about prices and timeliness of the information I heard this comment "I thought Zillow was the most accurate of all the real estate sites on the Internet." 

Without denigrating any specific web site I offered this tip...The local MLS system web site is your most accurate source of listing information.

Most real estate agents, including myself, who have a web site will probably offer a link to access the local MLS system and its search function.

Go there. 

As they say, real estate is local. 

Your best source of real estate information will also be local.

Heritage Isle in Viera - Homes For Sale in Viera's Premier 55+ Community

Below is an abbreviated market summary of homes and condos for sale in Heritage Isle in Viera one of the premier 55+ communities in Florida.  Data was extracted from BrevardMLS.com website on June 2, 2013.

Currently there are twenty one active listings in Heritage Isle including condos, half-duplex and patio style units and  single family detached homes.  This does not include the new construction properties currently for sale as well.

Listing prices for the two bedroom two bath condo units range for $119,000 to $134,900.  One of these units is a short sale listing.

The patio style and half-duplex units are listed in the $156,000 to $211,000 range with one is a short sale and one is a foreclosure.

Single family home listings range in price from $212,000 to $299,000.  Of these listings eight priced below $220,000 and three in the $290,000- $299,000 range.  There is only one distressed sale among these active listings - one short sale listed at $215,000.

Twenty properties went under contract in the month of May 2013. Six properties sold in the month of May 2013 including...

• 3911 Funston Circle - 2,632 sq.ft. 4 bedroom/3 bath/3 car garage sold for $300,000 
• 6963 Premonition Drive - 2,147 sq.ft. 3 bedroom/2 bath/2 car garage sold for $221,000
• 6631 Ringold Street - 1,672 sq.ft. 3 bedroom/2 bath/2 car garage sold for $183,000
• 6916 Owen Drive - 1,988 sq.ft. 4 bedroom/3 bath/2 car garage sold for $222,000
• 7123 Egbert Street - 1,779 sq.ft. 3 bedroom/2 bath/2 car garage sold for $185,000 
• 2660 Camberly Circle - 1,407 sq.ft. 2 bedroom/2 bath/1 car garage patio home sold for $122,000 (short sale)

For information on homes for sale in Heritage Isle and Viera's other 55+ communities including Grand Isle, give me a call at 321-693-3850 or email me.

Home Buyer Tips - If you really want it, be prepared to give it your best shot!

The market has changed.  Buyers are now competing with each other.  Sellers are in the position of advantage.

There are only so many homes for sale in Brevard County, Florida.  At the present time that number is 2,211 single family homes.

The number of buyers seems to be increasing as prices climb and buyers jump off the fence they have been perched on for the past five years.

So buyers are finding they are not the only consideration for many sellers.  Sellers have a choice of which, if any, offer to accept - finally.

So if a buyer wants their offer accepted, they need to make sure their offer follows these Three Ps of Buying a House.

1. Price.  Be realistic.  In a rising market with buyers getting an average of 95% of list prie, an offer way below list is usually a strategy for failure.
2. Pre-approved (or Proof of funds).  Your ability to actually close the transaction is vital to having your offer accepted.  If you will be obtaining a mortgage, get a pre-approval letter from a local lender.  This is different than a pre-qualification.   If you plan to pay cash, get a proof of funds letter to accompany the offer.
3. Prompt.  The sooner the better....the longer the period of time from contract date to closing date, the greater the chance something will come up to cause a problem.  There is a reasonable amount of time required for due diligence (inspection, surveys, appraisal, etc.) however 60-90 days is excessive unless the sale is a short sale.

Buying a house in a seller's market requires a concerted effort on the part of all players - buyer, real estate agent, and lender.

I spoke with a prospective buyer yesterday who told me their lender said to find a house and then get a pre-approval letter for the amount of the offer.

Even if the buyer is pre-approved the wait for a pre-approval letter to accompany the offer could mean a lost opportunity.

Buying a home in a seller's market (low inventory, increased buyer competition, rising prices) requires a pro-active plan.  The first step in being proactive is finding your real estate agent.

Buying a home in Brevard County, Florida?  Call me at 321-693-3850 to get the process started.