Lake Worth Real Estate

Lake Worth Rent vs. Buy

2011-03-11T08:57:00.000-05:00

Is everybody renting now? My partner Susan and I handle quite a few rental listings and right now they seem to be renting quite quickly and usually for full asking price, with first, last and security. For the first time in a couple years the rental market seems to be tightening. A couple years ago when there were a whole bunch of new construction town homes and homes on the market for rent and for sale, in foreclosure or up for short sales, there seemed to be so many properties to rent that you had to give them away. Now rental prices seem to be going up. I searched the area in east Lake Worth and town homes that were renting for $1,350-$1,400 per month are now $1,500-$1,600 per month. Not only that, but the landlords are holding out for the tenants that can pay three months rent up front (first, last and security), in addition to any pet fees and application fees.
Now that the rental market is heading in that direction the buying market should follow. If a tenant has $5,000-$6,000 to put down on a rental, then they have the down payment for FHA financing of a home.
A client of mine bought a $95,000 town home paying less than $7,000 down with the seller contributing almost $3,000 in closing cost assistance. The monthly mortgage payment is only $735.00!
There are town homes in Delray Beach and Lake Worth that are new construction, and are subsidized by the local municipality and the state (so income guidelines must be met), which offer incredible deals. How about a $240,000 town home with monthly payments starting at $730.00? Sound too good to be true, it’s not. It really exists!
The opportunity to own a home at a very good price and an affordable monthly rate is absolutely possible, and they are not hard to find. Happy hunting!

Notes from my first auction.

2011-02-03T16:02:00.003-05:00

Tuesday night I attended an auction here in West Palm Beach where about 80 residential properties were up for sale. The properties were located from Boca Raton north to Vero Beach and west to Clewiston and Okeechobee. They ranged from small one bedroom condos to large single family homes in golf course communities. This was my first auction of this type and it was an interesting several hours.
To preface the discussion, I reviewed the list of properties, printed out those that were in areas that I know and have an interest in. Then I went to preview them during the auction open house days. Some of the properties were not open during the open house days, but as a Realtor I was able to get lockbox codes from the listing agents and go preview them. Out of the 80 or so homes for sale I probably looked at a dozen or so.
The two key factors to consider prior to attending an auction are that any due diligence, including inspections, needs to be done prior to the auction itself and secondly that the properties seemed to sell for about what they were worth, so set your expectation level.
As I mentioned before a number of the properties were not available to preview but yet sold at the auction. Some how, some way you need to get into the property and bring an inspector to inspect the property, if you feel it’s necessary. An accurate assessment of the condition of the property and the work that needs to be done is critical and must be done prior to the auction. Take some time and go visit the local municipality to verify that there aren’t any assessments or fines associated with the property. It is also wise to consult an attorney to review the contract prior to the auction to make sure there aren’t any legal issues you need to be aware of. Be sure to conduct thorough due diligence.
By saying that the properties were selling for what they are worth I am not saying that they aren’t discounted somewhat. They are, but just not as much as people think when they think of auctions. Buyers and sellers alike always imagine properties going for pennies. There were a few condos and villas that sold in the $20-25,000 range. I was not sure of the condition of some of them, but even if someone needed to spend some money doing renovations, they probably pan out to be good rental income. Most of all, the people buying knew exactly which property they wanted and the maximum price they would pay. In the end if you pay 10% less than market value for a house that you want, then you got it for a discount.
One example is a town home in the Cloisters sold for $135,000 (plus a 5% buyers premium), or $67.50 per square foot. Over the past year town homes in Lake Worth have been selling for $68.00 per square foot. Comparing apples to apples though this unit sold for about $25,000 less than the last sale of the same model, although that sale was almost a year ago. Another example is a 2BR/2BA condo in the Moorings in Lantana sold for $50,000 (plus a 5% buyers premium). Sounds like a great deal, but there are listings in the same building below it and on the same floor starting at $64,800. The last sales in the building were as low as $70,000. So $50,000 is a good, solid discount. To reiterate, if that is the specific community that you want to own in, then you purchased the unit at about a 20% discount, which is certainly worth the extra effort.
Auctions are a viable way to buy and sell homes, but it is a different process than a traditional sale. Learn the process, follow the advice of the professionals you hire to help guide you and make sure you do your homework before you bid.

Should I do the work?

2011-01-31T10:10:00.002-05:00

This weekend I spent all day Saturday showing houses to a client looking to buy a home and I hosted an open house on Sunday at one of our new listings. First of all, our listing is a great house that the seller spent time renovating. He redid the floors, the AC, updated the electrical and plumbing and replaced the windows. Overall he did a good job with the home and it is priced right and, therefore, should sell relatively quickly. I am pointing this out because when I was out showing houses on Saturday my buyers ended up liking the nicest, cleanest and most updated house that we saw. Even though their motivation is to buy something that is a “great deal” and don‘t mind work, they gravitate towards the home that is already finished. It’s kind of like when you go to buy a new car. You first look at the great deal in the newspaper and ask to see that car. Of course, it is stripped down and doesn’t have many of the luxury items that are offered in that model. Then you look at the one with the sunroof, navigation system, alloy rims, leather seats and that is the one that really gets your heart racing.
It is the same with real estate. If I am out showing houses, the one that is clean, staged, lighted well and nicely landscaped will always garner more attention. So many sellers want to cut corners when they are getting ready to sell the home because they say that it may not be exactly what the buyer wants. The best thing that a seller can do is look at their home objectively (which I admit is very hard) and try to focus on the things that may turn off a buyer. If the bathroom is dated, then it really doesn’t cost that much to replace a vanity & top, paint and accessorize. If the kitchen has wallpaper, then take it down and paint. Trimming trees and hedges, adding flowers and fixing pavers and irrigation systems are simple, low cost items to spruce up the house. Remember, buyers may say they don’t mind work, but if there is a house down the street or in the next neighborhood that doesn’t need any work and yours does, most buyers will choose that house over yours. That results in a lower price to get your home sold, not really the best option.
Take the time to consult a professional and find out the items that are most important for you to work on. Listen to them objectively and it will pay off.

MLK Day and Fair Housing Laws

2011-01-17T10:51:00.001-05:00

I was driving into the office this morning contemplating what it means to me that it’s Martin Luther King Jr. Day today. My thoughts swirled around and settled on how his vision affects my life as a Realtor, which lead me to think about the Fair Housing Laws.
When I am out showing property just about every buyer has the same question, “So, Matt, who lives in this neighborhood?” The question is often followed with a more specific question about the demographics. Some people want to live in an area where there are more people of their own race, religion or cultural heritage. Others have the opposite view and say that they do not want to live in an area which is comprised of a particular demographic.
The Fair Housing Laws prohibit us Realtors from answering either of the above questions. The Florida state statute Fla. Stat. §§ 760.20-760.60 - Act prohibits discrimination based on race, color, national origin, sex, handicap, familial status, or religion. In real estate school we learn that we sell real estate, not people. My response to any such question is, “I cannot talk about who lives here.”
How we answer buyers questions about who lives in a neighborhood is one of the ultimate tests of integrity for a real estate agent. Imagine this scenario: You are trying to sell your home and you live in a cul-de-sac. On your street there are ten homes owned by people who are as diverse as our nation. If your listing agent or any of the buyers agents were to answer the questions posed to them about who lives there, what is the probability that your home sells for its true value? Whether a buyer wants to be near a certain demographic or away from another demographic, neither of those scenarios exist on this street. Even at the risk of being redundant it is critical that we continue to answer any questions simply and succinctly, “I cannot talk about who lives here.”
To quote Dr. King, “I look to a day when people will not be judged by the color of their skin, but by the content of their character.” The Fair Housing Laws expanded upon his vision and we real estate agents need to make sure we follow them to the letter.

Patience anyone?

2011-01-13T09:19:00.001-05:00

It seems that now everyone has heard a short sale nightmare story. A few of our clients have some. After submitting a legitimate offer they wait patiently. One month, two months, three months. It drags on and then finally the bank comes back with a demand that the sellers fork over big chunks of cash and the buyer needs to pay a price higher than the appraised price. While not the norm, it does happen.
Patience can be rewarded too. One example is that we had been showing a client a number of homes in their price range and in the area where they were looking to live. We found a few that were good but none that seemed to be “the one“. Then it arrived. We jumped all over it and got our offer in immediately, only to find out that there was another offer, which the sellers had miraculously accepted. It was a disappointment but we spoke with the buyer, the seller and the listing agent and we agreed that we would execute a backup contract. There are specific forms and language that determines what happens with a backup contract. In essence, if the contract in first position is cancelled then the backup contract moves up and becomes the primary contract.
We kept our eyes open for other opportunities for our buyer and even went to take a look at a few. After a few months we received a call from the listing agent that the first buyer was cancelling the contract. The terms and conditions changed slightly, so went back to the house, took a final look and moved forward with the contract.
Patience will be rewarded in achieving your goal of buying a home. Don’t rule out short sales and don’t rule out submitting backup contracts. Just remember that the most important factor in making either of these decisions is to ask all the right questions up front to understand your chance for success.

Customer Service?

2011-01-11T09:34:00.001-05:00

During a conversation here in the office a number of us picked up on a theme. I am sure it comes as no surprise but customer service seems to be sorely lacking, in our industry as well.
The conversation started innocently enough with one agent asking another about a restaurant. Other agents started to chime in about the place and what they liked and didn’t like about it. In the end, a number of people felt that the food was good but the service was lacking. Someone then likened it to real estate agents who don’t feel it necessary to keep their clients or other agents informed. Imagine buying the house of your dreams but once you are under contract and excited to move through the process you never get any calls about what to expect or which step to take next. I thought about it and remembered a client telling me the other day that their friend was going through a short sale at the same time that I was guiding them. My client said that her friends agent never called and she wanted me to know that she was appreciative of the constant calls.
As buyers or sellers you are entitled to consistent updates and to feeling like you are the most important client that your agent has. When I started in this business I remember my broker saying that each agent needs to speak to their sellers at least once a week. I also recall a real estate coach telling me that if my client called me asking for an update then I was late in calling them. I aspire to achieving both goals.
For the most part though a good agent will keep their clients in the loop throughout the buying or selling process. It is a stressful time and the constant communication is the one thing that can help alleviate some of that stress, especially when times are tough. With all the means of communication at our finger tips such as texting, email, chat, IM, twitter, or facebook, we have no excuse for not keeping our clients up to date. Better than all of those is a phone call or face to face meeting. Nothing can replace hearing the calmness in someone’s voice or seeing their expression to give you the confidence that you are being properly guided.
No matter what industry you are in, pick up the phone and call your clients. They deserve it.

Elimination of Mortgage Interest Deduction

2011-01-10T10:54:00.000-05:00

This is a very important issue that Congress is considering. Here is the reprint of an article that was posted on NAR's website, www.realtor.org that gives some financial analysis if the mortgage interest deduction were to be eliminated.

December 7, 2010
By Danielle Hale, Research Economist

In recent weeks, many proposals, suggesting a variety of changes to the tax system, have been discussed. The estimates below are for the complete elimination of these two tax benefits at current marginal tax rates, one of the most extreme possible changes.

Mortgage Interest Deduction Facts:

• 51 million—or 68 percent—of the approximately 75 million owner-occupied houses in the United States in 2009 had a mortgage.

• 38.5 million taxpayers claimed a deduction for mortgage interest, deducting a total of $470 billion, in 2008.

• The average taxpayer claiming the MID deducted $12,200 from taxable income in 2008.

• Therefore, the average taxpayer saved $3,050 in taxes by claiming the mortgage interest deduction1 .

• The total tax savings from the MID in the United States in 2008 was $117 billion.

Real Estate Tax Deductions Facts:

• 42 million taxpayers in the United States claimed a deduction for real estate taxes in 2008, deducting a total of $172 billion.

• The average taxpayer claiming the real estate tax deduction subtracted $4,090 from taxable income in 2008.

• Therefore the average taxpayer saved $1,020 in taxes as a result of the real estate tax deduction2 .

• The total savings from the real estate tax deduction in the United States in 2008 was $43 billion.

Eliminating Deductions: Losses for Home Owners and the Nation

If the mortgage interest and real estate tax deductions were eliminated, the loss would not be a one-year event; homeowners lose out on these potential savings each and every year. The present value3 of these lost savings could total $3.2 trillion. The value of all owner-occupied real estate in the United States in 2009 was $19.3 trillion4 . If the lost tax savings are fully capitalized into the price of houses, the average decline in value in the United States would be 17 percent. From the individual perspective, the median priced home in the United States in the third quarter 2010 was $177,800. A decline in value of 17 percent, as projected, would mean a loss in home value of $29,500 for the typical home owner.

These estimates, because they are based on a complete elimination of these deductions, can be viewed as a high-end estimate. Other changes will result in smaller losses to home owners. Additionally, national results are computed by looking at national averages. A very different picture can result when looking at the state level depending on the characteristics of the housing market, tax payers, and homeowners. For state information, contact data@realtors.org.

1Marginal rates range from 10 to 35 percent. A 25 percent rate was used to calculate the tax savings.

2Ibid.

3Present value calculation assumes 5 percent discount rate and 1000 year time horizon.

4As measured by the American Community Survey. The Federal Reserve Flow of Funds for 2009 estimated the market value of household real estate to be $17 trillion which would raise the estimate of the decline in value to 19 percent.

This is one in a series of commentaries by the Research staff of the National Association of REALTORS®.

Selling a home with pets

2011-01-05T09:11:00.000-05:00

Susan and I were in a home the other day and there was a pretty strong pet odor. Even though we have been in this business for years and we are both dog and cat owners, we still have to tread lightly when telling a client that their home smells bad. I know some of you have watched that show on HGTV where the host is really blunt. We do tell our clients the truth, but you cannot always be as sharp as he is. It makes for good TV but maybe not good reality.

So here are a couple tips on selling a home with pets and pet odor:
Even if you don’t think that there is an odor, it is likely someone else will. Get the carpets cleaned by a professional or replace them. Depending on the condition and wear on your carpets it is imperative that you get any odor out of them. Thoroughly wash any dog beds and blankets often while you are trying to sell the home. If you know about a showing ahead of time, which you should, then go ahead and wash them the day before.
Dogs should be taken out of the home while it is being shown. Most people like animals and therefore they are a distraction to showing the home. I have had many occasions where buyers have come out of a showing and realize they weren’t paying attention. Instead of looking at the home they were playing with the dog.
If you have cats and a litter box, make sure that it is cleaned before the showing and swept up around it. The home should be devoid of cat toys and scratch posts, etc. Put them away in a closet or in the garage. I know that this isn’t convenient, but you are trying to sell something for tens or even hundreds of thousands of dollars. Tidying up or staging the home is crucial, especially when there are pets involved.
Lastly, fix anything that the dogs or cats have damaged. If there is a screen that was ripped or a molding that has scratch marks, go ahead and replace them. You do not want the potential buyers to think that there may be more severe, hidden pet related issues, such as urine stains.
Birds, fish, snakes, frogs, ferrets and the other more exotic animals need to be addressed too. Make sure that their cages are well kept and clean when your home is being shown. It may require some extra cleanings outside of your routine, but it will help your home showcase better.
Good luck. See you around town!

Comparing two townhomes

2011-01-04T09:59:00.000-05:00

As usual a number of properties are coming on the market now that we are in the new year. Since IPRE had it’s best month writing business in December, I am not sure why people feel the need to wait until after the holidays to put their homes on the market. People buy homes in December!
Anyway, two town homes came on the market in a community called Villagio Del Mar in Hypoluxo in the past couple days. Both are situated on the intracoastal and have a view of the water. One is a short sale listed at $425,000 and one is not a short sale and listed at $685,000. Remarkably the one listed for $425,000 last sold in June 2007 for $1.19M. Short sale list prices are never guaranteed, but considering that the HOA fees are reasonable (approx. $400/mo.), this certainly seems like one to take a flyer on.
Many buyers and sellers have short sale nightmares. I have some dreadful stories myself. That should not deter us from getting back up off the mat and trying it again. Especially when it might mean a great deal is waiting on the other side. Put aside the frustration and keep the end goal in mind. Years from now you will have a great story to tell while entertaining in you gorgeous home that you got for a really great price.

November Palm Beach County real estate figures

2011-01-03T11:42:00.001-05:00

The November real estate figures came out right before the holidays and the news is good. Pending sales are up significantly and our company, Illustrated Properties, had it’s best month in pending sales in 5 years! Year to date overall pending sales were up over 27% from 2009 and over 65% from 2008. Combining this with the fact that new listings have remained relatively flat throughout 2010 means that buyers have less and less to choose from.
Contrary to the pending versus new listing figures, which would indicate less supply and more demand (I.e. higher prices), prices continue to drop as both the average and median prices in Palm Beach County were down. The median price is down almost 12% from a year ago and almost 35% from two years ago. The correlation between all this is that lower priced homes are selling more than higher priced homes, no surprise there. On the front line we are seeing that among the higher priced homes the ones that are priced right and have done the moderate sprucing up to make it show well are also selling. It just seems to take a bit longer than it used to (with the days on market hovering around 180 days - list to close).
There are more details available on specific municipalities and areas. If you’re interested in more details or want a copy of the entire report, let us know we’ll be glad to supply them.

New Landlord Law - 2011

2010-12-02T10:23:00.000-05:00

Since we have been selling some investment property this year including a number of multi-family properties, this law applies to a larger number of our clients. I thought it was pertinent enough to post here as well. Most importantly, talk to your accountant to make sure you comply.
Here is an article from the National Association of Realtors (NAR) explaining the new law:

New IRS 1099 Requirements for Landlords

Starting in 2011, there are new tax requirements for landlords. All landlords who receive rental income of more than $600 a year from a tenant must file a Form1099 information return for all rental income received and send a copy of the 1099 to the tenant. Landlords must also send a 1099 to all service providers who received payments of $600 or more during the year, such as plumbers, carpenters, yard services, and repair people.

The new requirement applies to owners of both residential and commercial property. The only exception to the new requirements occurs when an owner temporarily rents out his/her primary residence, so long as the owner’s income does not exceed a “minimal” amount to be determined by the IRS. Prior to 2011, this requirement had only applied to those involved in full-time property management, but now the requirement covers all types of landlords. Landlords will need to gather federal tax ID numbers from both their tenants and service providers in order to file the 1099s. Failure to file the 1099s with the IRS can result in fines of $50 per 1099 not filed with the IRS.

NAR (National Association of Realtors) actively opposed this change in the law and is working with others to have this requirement repealed or otherwise modified. Congress took this action in order to assure that income paid to contractors can be verified through a 1099.

Great Article on Vacant Homes

2010-05-21T09:54:00.000-04:00

Here is an article that I found on the Florida Association of Realtors website that was from the Detroit Free Press. While it mentions issues that are more relevant up north, the general idea is there. Susan and I have a lits of qualified inspectors who explain which issues are significant and which are not.

What to watch for when buying a vacant home
DETROIT – May 20, 2010 – When it comes to the housing market for foreclosures – buyer beware.

"One mistake that we see all the time is buyers going in and assuming all the mechanicals are working," said Brandon T. Johnson, president of GTJ Consulting in Roseville, Mich. "You have to be careful you don't get burned that way."

Johnson's company maintains foreclosed homes for a number of lenders, Realtors and Freddie Mac. He said the term "as is" shouldn't scare buyers off as long as they know what it means. He recommends that buyers get private inspections on houses they want to buy to avoid surprises such as missing plumbing or water damage.

Here's a list of 10 things to watch for in foreclosed or vacant homes from Ross Kollenberg, mitigation and construction manager for On-Site Specialty Cleaning & Restoration in Troy, Mich:

1. Air quality. This tells a lot about the home's condition. Include air and surface testing in your home inspection. It is a few hundred dollars well spent.

2. Black cobwebs, greasy gray residue on walls and/or a strong oily odor. This is soot damage, which requires professional cleaning, and points to a malfunctioning furnace. It also could be a tip-off that the home had a fire.

3. Discolored subflooring. From the basement, check the subflooring above for stains and small holes, both caused by mold.

4. An older home with extensive renovations. Check with the city for permits: You'll get remodeling details. If asbestos or lead paint is present and has been disturbed, be sure it's been remediated by a certified specialist. It the home has four or five major changes, it may not be up to code, and that could mean extensive fixes for the next owner.

5. Peeling, bubbling, and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms); a musty odor: All indicate water damage and, potentially, the presence of moisture and mold.

6. Missing sinks, toilets and other fixtures. Sometimes the previous owner will take the fixtures with them, but won't shut off the pipes or will rip fixtures from the wall. If a pipe was cracked during the fixture removal, it could start a slow leak in the wall that isn't easily seen. Make sure those fixtures have been properly removed and not ripped from walls and floors.

7. Fungus growth inside cabinets, behind drawers and built-ins. That could mean there has been water damage. Since water falls down, look for the source above the mold. One trick inspectors use to determine whether there could be hidden water damage is to pull out the kitchen drawers and look inside to see whether the back wall has been rebuilt. If it has, that could mean water damage has been covered up.

8. Excessive painting of every nook, cranny, door and floor. The seller may be covering up mold. "When you go do a home that is 'landlord white' and the trim is flat, we tell people there is a reason the house was painted this way," Kollenberg said. "When we see it is over everything, it is a tip-off that it is just covering something up."

9. Unheated house in winter months. If the home has been properly winterized, there's no need for heat. If not, pipes will burst and cause water damage.

10. Blocked drains or pipes. These will cause future problems and may have already created sewage backups. Check for a telltale water ring in the basement, Kollenberg said.

Copyright © 2010 Detroit Free Press. Distributed by McClatchy-Tribune Information Services.

Upside Down?

2010-05-11T10:14:00.000-04:00

According to a report by CoreLogic the West Palm Beach-Boca Raton-Boynton Beach metro statistaical area (MSA) is the 9th most upside down area in the country (highest negative equity). It states that over 45% of the properties are upside down in terms of equity in the property. Fort Lauderdale and Miami are also on the list at numbers 5 & 6 respectively.
If you weren't thinking about short selling your home, you may want to rethink it!

Active Duty Military can still get Tax Credit

2010-05-10T10:59:00.000-04:00

The tax credit may have ended for many but there are still some who have an opportunity to take advantage of some government incentives. Active duty military have another year to benefit from the governments tax credit. Get a home under contract by April 30, 2011 and close by June 30, 2011 and you are eligible for up to $8,000 for first time home buyers and up to $6,500 for current homeowners. Since home prices are low, now would be the time to get in touch with a mortgage expert to see if you qualify and for what price range. It is likely that you will find some attractive opportunities out there now that most of the first time home buyers either have something under contract.

Tax Credit coming to an end

2010-04-21T10:07:00.000-04:00

We’re a week away from the tax credit coming to an end and what do you think is happening? Yes, the phone is ringing and some home buyers are getting into the game late. They hopefully will get under contract and close in time to get the tax credit being offered. The real winners are the sellers though. When you look at the inventory there really isn’t a lot out there and the good stuff is getting multiple offers. My partner Susan took clients out yesterday and their number one choice is already negotiating an offer. Looks like we will still submit and offer but it has to be our best up front. No time to nickel and dime now!

In every market, up or down, sellers think their home is worth more and buyers think it’s worth less. Right now, and I mean this week, sellers may be right because buyers know they will have some money coming back after they close. Buyers may be willing to absorb a little more on the purchase price (since it is financed) always having the protection of an appraisal to make sure that they don’t pay too much.

As a former engineer I still rely on the statistics and they are generally positive. We seem to be in a stable market with regards to homes for sale, home pending, sales and time on the market. Ask me about my newsletter if you want more details on the stats for Palm Beach County.

See you around town!

Thinking of Selling...Consider all marketing avenues!

2010-03-11T16:06:00.000-05:00

Once again we are selling our inventory faster than we can replenish it. With a number of our listings due to close in March, we will continue to market the homes we still have available using every means possible.

Recently we have been gaining tremendous exposure for our clients through Facebook, Trulia, Realtor.com, Listingbook, the Illustrated Properties website (www.ipre.com), and some more traditional methods such as advertising in the Real Estate Showcase (the only real estate magazine in the airports!) and postcard mailings. What's really surprising is that we hosted a booth at the 2nd Annual Pets in the Plaza in Lake Worth and one of the visitors to our booth wrote a contract on one of our listings the very next day! In this market it is important to adapt to the changing market, culture and technology. We all agree that the internet is king right now, but back to basics feet on the street marketing still works!

I cannot stress enough how important it is that each home is marketed through a variety of methods. It seems that the agents willing to put in the effort are finding that they achieve the best results for their clients.

See you around town!

From LP's to Short Sales...

2010-02-25T16:13:00.000-05:00

I have had the nostalgic tug lately and so I dusted off my stack of LP’s sitting in the closet, bought a new needle for my turntable and listened to some albums I haven’t listened to since I bought my first CD player in the late 80’s. (By the way, I have some great U2 twelve inch singles)
Anyway, it got me thinking about the recession we were in when I graduated from Northeastern back in 1991. I graduated 3rd in my class in engineering but couldn’t find a job. I moved back home, took some odd manual labor jobs while I sorted through every newspaper, every day. I mailed out resumes, waiting weeks for all those denial letters and occasionally landing an interview. All the hard work finally paid off and someone offered me a job and I went on to a successful engineering career. We came out of that recession and the company that hired me went on to have a pretty good run as the economy turned around.
Now I don’t presume to have all the answers as to when the economy will turn around this time, but what I relate to my experiences is that the successful people (companies) know what their goals are and set a plan to get there. How does this relate to today’s real estate market?
Well, let’s start by looking at the seller’s perspective. If you are a current homeowner and looking to sell your home then you have a goal. Within that goal there are financial and emotional ramifications, which may or may not be at odds with one another. When you owe more on your mortgage than your home is worth then you are in a short sale position. The benefits of going through the short sale is that you achieve your goal (to sell the house) but at the expense of some other terms. You may have put money down and at risk of losing that money. There will also be a dip in your credit. Even in a non short sale situation, the perceived loss of equity can leave a bad taste in someone’s mouth. Ultimately though what I have seen is that the relief from feeling trapped outweighs the negative consequences. This is especially true when someone is moving to be closer to family, to be in a better school district or for a job change. Because then the ultimate goal is achieved.
A buyer will always ask the question, “What’s going to happen with prices?” First time homebuyers don’t know what it feels like to sleep in your own home for the first time. Sort of like when people tried to explain to me what it was like to have kids before I had kids. I just couldn’t get it, but now I do! I still remember that first night going to bed in the first condo my wife and I had bought. I laid down that night and thought about how it was mine! No one could evict me, my parents couldn’t tell me what to do and, most of all, I really wanted to take care of it. So ultimately, while very important, is price really the most important thing when you are buying a home?
Everyone has a budget and everyone has a certain tolerance for pain. We need to manage home sales and purchases within those parameters, but what is really most important is how you feel the day after. Set your goal, frame it with realistic criteria and parameters, and go for it!

1010 South N Street, Lake Worth, FL | Powered by Postlets

2010-02-11T10:22:00.000-05:00

1010 South N Street, Lake Worth, FL | Powered by Postlets

It's been a while

2010-02-10T20:55:00.000-05:00

Well, I used to blog a whole bunch on my old website, www.homatrix.com, but it has been a while, so forgive me if I'm rusty!
My goal has been and always will be to write informative blogs about Lake Worth, the local real estate market and I even throw in some fun blogs like restaurant and golf course reviews (since I am a self proclaimed "foodie" and an avid, but not very good, golfer).
Since I was last blogging I have partnered my business with Susan Fleming and we moved over to Illustrated Properties. We made the move because Illustrated Properties offered us more tools and better ways to market properties, which ultimately helps our clients! The one great thing about this move is that we actually didn't change locations. We are still located in the same office in Manalapan which allows us to serve all the surrounding areas.
As time goes on and I get this blog up and running I hope you will come back and check out what we have to offer. Stay tuned for good stuff.

See you around town!

By the way, my wife is hosting Pets in the Plaza this Saturday the 13th from 10am to 4pm in the Lake Worth Cultural Plaza at the corner of M Street and Lake Ave. It is a great family fun event geared towards promoting responsible pet ownership and pet adoptions. There are a number of rescue groups that will be receiving the proceeds of all donations!