Your Home Valuation Is Wrong

Do not make any major decisions based on an online, automated home valuation. You could lose a lot of money. A lot.

How does a $60,000 loss on a $300,000 home sound to you? Ridiculous? Read on.

Of course you are going to look up the value before you make an offer on a home, or prior to selling your current place. Just remember, that number is almost guaranteed to be wrong.

If you make life-changing decisions based on bad information, then you’re jeopardizing your future.

How can I be so sure the information you get online isn’t correct? Because it is statistically unlikely, and most of the sites will even tell you so, in the fine print.

Does it matter which site you use? Not really. Some are better at guessing than others, but they all vary dramatically.

When determining value on a property I typically check ten different online valuation sites. Not because I think they “know” what the home is worth, but because the seller and potential buyers are checking these sites, and it’s better to know in advance what disinformation they are consuming.

Those values are all over the map!

For example, a home with a true market value of $300,000 might have automated valuations ranging from 225,000 to 375,000. That is a large margin of error!

What about the infamous Zillow Zestimate? This is the margin of error stated on their website as of July 26, 2018:

• Nationwide, Zestimates are currently within 5% of the final sale price 52.9% of the time.
• In the U.S. as a whole, Zestimates are currently within 10% of the final sale price 73.3% of the time.
• Nationally, Zestimates are currently within 20% of the final sale price 85.8% of the time.

Let’s put this into real world numbers using the $300k actual value example.

Just over half of the time (52.9%) the Zestimate is within $15,000 (5%) of actual final sales price. That could be high or low, so a $30,000 swing from 285,000 to 315,000.

The Zestimate is within 10% on another 20.4% of homes. That means a $60,000 swing from 270,000 to 330,000. If the buyer believes the real value is 270,000 and the seller thinks it is 330,000… well it’s easy to see we now have a significant problem.

Another 12.5% of homes are within 20%. That produces a $120,000 range of value from 240,000 to 360,000! That is 40% of the actual value! You don’t want to make any decisions based on this information!

Zillow admits they are not even within 20% (high or low) on 14.2% of homes nationally.

Do you want to guess which group your Zestimate falls within? It’s a roll of the dice!

If you’re in the 52.9% group you could lose $15,000.

If you’re in the 20.4% group you could lose $30,000.

If you’re in the 12.5% group you could lose $60,000.

If you’re in the 14.2% group you could lose even more than that!

The last two groups comprise 26.7% of properties. That means you have a greater than 1 in 4 chance of losing $60,000 or more if you base your buying or selling decision on the information you obtained from the big gorilla of real estate data online.

This is a multi-billion dollar company that draws millions of people to the website each and every month. And I have the nerve to warn you against believing what you see in black and white on that website? Yes. That website and dozens of others. Pay attention.

The actual Zestimate, not the range of possibility, the actual published number on my personal residence has gone up and down over the last year $59,000. That is absurd. Home values don’t rise and fall with the wind, like the stock market.

Side note: Facebook stock is down 20% today. Your home doesn’t go on a roller coaster ride every month.

These robot valuations use raw sales data available from public records but they have a huge disadvantage: They have never been inside your home.

They don’t know if the flooring, kitchen cabinets and roof all need replaced, or if they were just completely updated. They can’t see the view; they don’t know if the comparative sales were well cared for or not; they can’t tell if the home next door is an eyesore or worse; they can’t hear the traffic from the highway that decreased the selling price on three of the comparable sales they are using.

The bottom line is you need a trustworthy professional to give you good information.

Contact a full-time, experienced and knowledgeable professional whom you trust to give you good advice so you can make the best decision for your family.

http://www.SweatSellsFlorida.com

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO, ILHM

Featured in Scene Magazine’s Men on the Scene 2016 issue

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming soon)

Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™

Re/Max  Alliance Group

Mobile: 941-306-7384

http://myfloridahomesmls.com/JimSweat (Home Search)

https://jimsweat.wordpress.com/ (Blog)

www.linkedin.com/in/jimsweat (LinkedIn)

A Proven Professional Working for You!

23 Years Experience

When is the Best “Selling Season” in Florida?

Sell in Winter, Spring, Summer, or Fall? Pros and Cons to One and All!

Skeptical Seller: Fall is the quietest season. Families aren’t travelling because the kids are in school. Snowbirds are still home; no good reason to be on the market in the fall, right?

Jim Sweat: You are correct that fall is the quietest tourist season. That means there are not as many showings for people who are just in town and bored. It is a great time to be available for serious buyers who want to have time to find, negotiate and close on their new home soon enough to be ready to occupy it during the snowbird tourist season. I currently have several buyers who are planning on finding their new home this fall.

Skeptical Seller: That’s nice, but I know that winter is our peak tourist season. It only makes sense for me to be on the market during the winter and then take it off if it doesn’t sell. 90 days or nothing.

Jim Sweat: Yes, winter is peak Season. You will have the most showings during the winter months because of it. Sometimes showings will be scheduled just because it isn’t a perfect beach day and tourists are curious about the town. A Realtor can be a great tour guide. You also have the most competition during peak Season. There may be more potential buyers, but there are definitely more homes for them to choose from. How are you going to make yours stand out in the most crowded field of the year?

Skeptical Seller: The snowbirds go back north in the spring, and spring breakers aren’t buying houses, so what’s the point of being on the market in the spring?

Jim Sweat: There are a number of sophisticated buyers who purposely wait until Season is over before they make offers on homes. They look while they are here during vacation, then go home and wait until sellers feel desperate. The sellers who think “90 or nothing” may be more flexible when the peak 90 days have passed. You also have some sellers taking homes off the market “after Season” so those buyers have fewer homes to choose from. It may be wise to have yours available.

Skeptical Seller: Okay, I can understand that. However, there can’t be any good reason to be on the market during the dog days of summer when it is hot out and rains almost every afternoon. Who is looking at homes during the worst months of the year?

Jim Sweat: Only the serious buyers look during the off season. It’s not the most pleasant time. They aren’t just here on vacation with nothing else to do. Many of the buyers who are looking during the summer have scheduled trips specifically to find a home. This gives them time to find, buy, and renovate before peak vacation season hits. You also have the least competition. Many sellers take their home off the market during the off season because they feel it is a lost cause. If the serious buyers are looking then, don’t you want them to find yours?

We had similar situations – but reversed seasons – when I was in Michigan. Some sellers didn’t want their home on the market during the winter months. “Just wait until summer when all of the tourists are in town.” My response: Only serious buyers are trudging through three feet of snow to look at houses. Do you want to clean your house for someone who is that serious, or for a never-ending parade of bored looky-loos who are on vacation and may or may not be that serious about actually buying a home?

Remember this: the majority of homes do not sell during their first listing period. The season you list may not be the season you sell. My personal track record is strong, but it defies the averages.

There are more important factors than the time of year. “35 Home Selling Mistakes to Avoid” is an excerpt from the book I am currently writing. Wrong time of year is not one of the 35 reasons.

Bottom line: there are pros and cons to every time of year. You should work with an experienced, full-time, licensed real estate professional that can help you make the most of whatever season fits the timing in your life.

http://www.SweatSellsFlorida.com

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO, ILHM

Featured in Scene Magazine’s Men on the Scene 2016 issue

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming soon)

Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™

Re/Max  Alliance Group

Mobile: 941-306-7384

http://myfloridahomesmls.com/JimSweat (Home Search)

https://jimsweat.wordpress.com/ (Blog)

www.linkedin.com/in/jimsweat (LinkedIn)

A Proven Professional Working for You!

22 Years Experience

35 Home-Selling Mistakes To Avoid

Did you know there are 35 Reasons Why a Property Doesn’t Sell?

It’s pretty annoying when your listing expires. All of these agents are calling to tell you how great they are, yet they really just want to get your listing and reduce the price.

They don’t even care what the real problem is. The only solution they have is the one that costs you the most money.

But – price is only one of the 35 reasons!

It’s easy for the agents because no matter what the real reason is, if you price it low enough, it will sell.

But that costs you money! Wouldn’t it be better to find out what the real reason is and address that? Sellers want to blame the agent, or the advertising. Agents want to blame the price or the market.

Don’t throw your money away! Find out what the Real Problem is, and then you can make decisions based on reality, and keep more money in your pocket!

 Process of Elimination:

Buyers don’t look for a home to buy; they look for reasons NOT to buy this home! Before they even look at homes in person, they are looking online for reasons not to go see your home at all. Every step along the journey offers opportunities to capture and hold the buyer’s attention, or lose them forever.

Review this list to maximize your prospects and reduce the pitfalls.

35 Reasons why properties don’t sell:

1. 1. Not enough photographs: Buyers assume that if you don’t show pictures of the home, it must be ugly and there is no reason to come see it (unless they want a fixer-upper!). Photos also boost online ranking.
   2. Poorly shot photos: Photos taken “into the light” or very dark; Listings that lack a full complement of photos, compelling narrative, robust descriptions and no calls to action are “web white noise”. No one sees or cares about them. Both the photos and the description are vital to sell your home. It’s the image your visitors will see once they begin their search online. The first impression matters!
   3. Missed Target Market. The most likely buyer must be identified and the property should be positioned to attract them. This is a huge issue!
   4. Incorrect data or information: Subdivision names misspelled; Tax IDs that are incorrect; Data entry errors in the databases reduce buyers and agents finding the home in their searches. Beds, baths, price, location, square footage etc… online search is data-driven.
   5. Lost in the shuffle: Some agents carry huge listing inventories of unsold homes. You want a Realtor with the experience to get the job done, and the time to give your sale the attention you deserve.
   6. Secret listings: Pocket listings, in-house, off-market and “coming soon” listings cost sellers money and sales! Restrictions of advertising to other REALTORS or the public reduce the number of potential buyers for your home. Only full market exposure brings full market value! I offer a Full Market Exposure Guarantee.
   7. Extravagant decorating or unusual floor plan. The costs to remedy must be reflected in the pricing strategy.
   8. Poorly written marketing/advertising materials: Words and pictures combine to attract the right buyers for your house. Marketing Matters!
   9. Agent skill set lacking. Ineffective or undeveloped communication, negotiation or networking skills; 70-75% of agents in Florida are part-time, doing real estate on the side or as a hobby to supplement their retirement.
   10. Key features not highlighted effectively. I utilize a simple strategy to capitalize on every showing, regardless of experience and skill of the agent.
   11. Listing isn’t found where 90% of the buyers are. We utilize syndication agreements, IDX internet data exchanges, and VOW virtual office websites to obtain worldwide internet exposure on thousands of websites!
   12. Agent is not technologically savvy. Technology is a blessing and a curse! We are combining the best of today’s technology with enhanced listings on the most popular websites, and good old fashioned customer service.
   13. Incentives are not properly structured to enhance the success of the listing.
   14. Ineffective timeframe of listing agreement: Not researched well enough to allow the proper time to market the property.
   15. Agent didn’t discuss absorption rate with the Seller. The majority of homes do not sell during the first listing period. Do you want to list your home, or sell it? Don’t be another statistic.
   16. Agent isn’t skilled in the type of property that they listed. Qualifications matter.
   17. Poor planning, poor systems, poor execution, poor Sellers!
   18. Hope as a strategy. When a REALTOR rests on their laurels, the result is a seller with a languishing listing. It’s just lying around, too. Get Action.
   19. The house wasn’t presented in the best light. Property is not staged for a quick sale. Personal items should be packed up and the property must be depersonalized. Make it as easy as possible for your visitor to visualize himself/herself living there.
   20. The home has incurable defects. “There’s a buyer for every home, but at the buyer’s price” is an old but very true real estate motto. Some residences have incurable defects that cannot be corrected, and these defects must be considered when setting the asking price.
   21. Ineffective use of Virtual Tours. Some tours discourage showings.
   22. No feedback from agents and buyers, or a failure to act on market perceptions and realities.
   23. The curb appeal needs help. If buyers don’t like the state of your house from the outside, they’re not as likely to come inside to see the rest of it. Many times a buyer has decided against a home before they get in the door. It can even be difficult to complete a scheduled showing if they are turned off when the agent pulls into the driveway.
   24. You’re trying to go it alone. Real estate agents’ fees can take a decent amount out of your total sale proceeds, it’s true. But if you go the DIY home-selling route, you run the risk of getting zero proceeds when it doesn’t sell at all. If you’re having trouble selling your home on your own, it may be time to call in a qualified pro.
   25. You’re smothering buyers. As much as you may want to see “how things are going” or be around to answer questions or offer insights, you need to let your real estate agent handle things. Go out for coffee, go see a movie, go do anything that gets you out of the house (and out of buyers’ hair!) when your home is being shown. Not only will this put less pressure on buyers; it will enable them to feel free to voice their real opinions – which can help your agent identify sticking points you need to work on to make your home more appealing.
   26. Mapping problems: Property doesn’t appear in the proper location online.
   27. Low commission splits to agents? They are only humans trying to make a living.
   28. Is the home Clean, Uncluttered, Tidy, and Smelling nice? – C.U.T.S. There is no quicker way to repel a buyer than to present an untidy, cluttered, unloved home. If you don’t show that you love it, the buyer won’t either. If it doesn’t CUTS it, you are definitely handicapping the chance of a quick, well-priced sale. Inside and out, it needs to look its absolute best! The seller controls the condition.
   29. Owner doesn’t actually want to sell. Is the owner clear on the benefits of selling now, or just fishing? Unrealistic expectations hinder sales.
   30. The listing agent is the obstacle.  As in any profession, there are top-quality people and “others”. To be polite, some agents are “out of touch” and are more of a hurdle to home sales than a help. If an agent is hard to get along with, arrogant, or has otherwise made herself unpopular, well… It’s just human nature to tend to skip over someone you don’t like when scheduling showings. You want a knowledgeable, likeable, full-time professional representing you and managing your sale.
   31. Agent doesn’t want the home to sell; it is “Buyer Bait”. Overpriced listings and discounted commissions may indicate the agent is more interested in generating buyers to sell other homes to.
   32. It is difficult to show your house to your audience: “If the house isn’t getting shown, it isn’t going to get sold.” Make every effort to accommodate showing requests.
   33. Seller interference in the selling process. Hire someone you trust and then let your agent do his/her job.
   34. Market conditions and external forces. Sometimes this is just an excuse. If legitimate, then marketing and positioning strategies must be utilized.
   35. The last possible reason why: The house wasn’t priced correctly. Price point must be clearly determined and communicated to the right buyer pool.

     Consequences of overpricing:

• Limits the number of qualified buyers
• Results in fewer prospects & showings
• Reduces the number of offers
• Creates lack of interest in the home
• Limits financing options
• Causes appraisal issues
• Increases the sales time
• Less net revenue for the seller

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO

Realtor

• Featured in Scene Magazine’s Men on the Scene 2016 issue
• Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming 2017)
• Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™
• 22 Years Experience ~ A Proven Professional Working for You!http://myfloridahomesmls.com/JimSweat (Home Search)https://jimsweat.wordpress.com/ (Blog)
• www.linkedin.com/in/jimsweat (LinkedIn)

Re/Max Alliance Group

Mobile: 941-306-7384

Seven Factors Affecting Home Prices – And the Stock Market Wild Card

DOW 40,000 or DOW 8,000 – where does real estate stand?

Many pundits agree the stock market is overvalued based on price to earnings ratios. This is pointing to a market correction. What does that mean for real estate?

What You Really Want to Know When Asking “How’s the Market?”

This generic query masks many deep concerns, questions, hopes and fears.

At the root, folks want to know things like:

Am I going to lose my money? Is this a good time to buy, or should I sell now? Does it make sense to invest more at this time, or should I be taking profits out of the market? Is the current trend likely to continue? Will I regret not increasing my investment in this market? Will I leave money on the table if I sell now?

Essentially, what does the future hold?

“How’s the market?”

Because I am in real estate, this question usually refers to that market. My quick answer right now is the market is strong, inventory is low, and prices are rising with demand.

Before I get into where the real estate market may be heading, let’s talk about the stock market. The DOW breaking 21,000 for the first time ever has made headlines everywhere.

Full Disclosure: I am not a stock broker, and am not making any predictions. This is just a collection of observations and how one market may affect another. My opinions are irrelevant when even the professional market forecasters are so wildly diverse. My purpose here is to expose you to the variety of professional opinions, and to relate that to the real estate market.

Stocks are at an all-time high. For some, that means it is a great time to be investing more because “the trend is your friend”.

Others see record high valuations as a warning that “what goes up, must come down”.

If you do some research, it quickly becomes apparent that there is very little consensus as to where the market is heading. The predictions are all over the map, actually.

Do you want the good news or the bad news first?

Some forecasters are predicting DOW 25,000; 30,000; even 50,000 by 2025.

On the other hand, others are predicting DOW 12,000; 10,000; even 6,000 as early as 2018.

Those are the extremes, certainly. And they don’t answer any of the questions folks really want to know when asking about the market.

My research has found there are those in two strongly opposing camps, and others in the middle ground area.

The strategies you would follow if you agreed with one prediction would be devastating if the other scenario actually came into reality. And vice versa.

Bust: the deflationary camp expects the markets to reset downward. Rapidly and painfully downward. DOW 8,000 or less. Gold under $700 per ounce, which would be almost another 50% drop from recent levels, which are almost 40% off of the highs for the precious metal. This scenario states the values of everything will decrease. Real estate would see another tumble similar to the one we had a few years ago during the Great Recession. Cars, food, commodities. Everything would be cheaper, not just stocks.

The strategy for those planning on this scenario is to sell all of your current assets, convert them to cash, and get ready to buy back everything on sale.

Boom: the inflationary camp is just the opposite. The stock market, real estate market, cost of food, gold, everything – continuing to go up. Some in this camp even see rapid increases and possibly hyperinflation similar to that which hit Venezuela, Argentina, and numerous other countries over the last 25 years. Gold prices jumping to $2,500; $5,000 even $10,000 per ounce. Real estate values going through the roof. Prices for everyday expenses rising faster than you can imagine.

The strategy for this scenario is to buy all of the assets you can get your hands on, because cash will be worthless and “things” will have value.

I admit, the two extremes hold no appeal to me. I don’t want to live in a world where gold is worth $10,000 an ounce, almost overnight. Nor does the prospect of going through another Great Recession sound interesting to me. Especially not when there are huge numbers of people who have not had much of a recovery from the last one, and don’t have the resources to weather another storm so soon.

Most of the mainstream projections are a lot milder, and the middle of the road is more appealing to most of us. Even if markets don’t care about what appeals to us.

A few things that many do agree on: Quantitative Easing (opening the spigot and flooding the market with cash) has pushed up the stock market, but has not brought about the economic expansion that was hoped for. That money is pumping up Wall Street, but not enough of that cash is falling into the pockets of the average man or woman on Main Street.

Similarly, zero percent interest rates from the Fed have not spurred the economic activity needed to bring about a strong recovery.

We may see more QE and near zero rates, but neither of these “Solutions” can be utilized for extended periods without significant negative implications.

Where does that leave us?

Quite frankly, hoping that the middle ground wins.

Many pundits agree the stock market is overvalued based on price to earnings ratios. This is pointing to a market correction. Hopefully just a middle of the road correction to cool the jets, not anything drastic.

What does that mean for real estate?

In the past, many of the investors who get out of the stock market prior to a correction have put their money into real estate. Likewise, those who didn’t get out first, pull the cash out when the market is falling and look for some good deals in real estate to park it in. Both of these are bullish for real estate even when the stock market is bearish.

Note: All real estate is local. The real estate market is not national. There can even be significant variances within small geographical areas. Consult a qualified real estate professional in your area before buying or selling.

There are a number of factors favoring real estate right now. And of course, there are some concerns to be addressed.

Leverage. One of the most attractive things about real estate as an investment is the ability to buy it with just a small amount down. Your out of pocket cost can be a fraction of the value. If you want to buy $100,000 worth of stock, you need $100,000. But you can buy $100,000 of real estate with as little as $20,000, $10,000 even $5,000 of your own money. That is significant leverage! If your $100k property increases in value by $5,000, that is a 25% gain if you put $20k down; a 50% gain if you put $10k down; and a whopping 100% gain if you only put $5,000 down!

What if you paid all cash? A 5% gain beats the socks off what you would get with that money sitting in a bank account!

Demand. People are looking to buy real estate and demand is strong. Baby boomers are retiring and buying in areas they have dreamed of their whole lives. The clock is ticking for them. Many put the dream on hold during the recession and now that markets around the country have recovered, they are moving forward with their plans.

Interest rates. Low interest rates are bullish for real estate because it allows folks to leverage a small down payment into a large purchase. This frees up their cash for improvements and other things, like vacations and investments. Interest rates will rise over time, so locking in at lower rates favors those who act quickly.

Favored status. The US government grants owners of real estate tax deductions and privileges that increase the value of owning. 1031 Tax-deferred Exchanges also allow individuals to sell a property, lock in the gain and rather than paying taxes on the gain, roll it into another property and defer the tax indefinitely. There is some talk of changes coming to the 1031 program. Changes may actually spur more real estate activity if owners want to trade their current properties for different ones under the current guidelines. Talk to your CPA about tax savings.

Millenials. The youngest generation of potential homebuyers actually outnumbers the baby boomers. They should have a significant impact on the value of real estate over the course of their lifetime. However, they are not impacting it as much as could be expected because many are hindered from obtaining mortgages by large student loan debts and jobs that don’t pay as well as the jobs their parents had. When debts go down and pay goes up, they will become a driving force similar to the baby boomers, based on the sheer number of them.

Pent up demand. This comes from the millenials who are stuck living with their parents (or multiple friends) and also from the baby boomers and Gen X-ers whose plans were put on hold. During the recession, not enough new homes were being built to meet the average needed for a growing population, new family creation and replacement of older homes.

Rental Nation. Many who are mentioned above are renters by necessity. Strong rental demand and rising rents are encouraging investors to buy all types of properties and rent them for cash flow.

We know where the market has been, and where it is now. What the future holds is anyone’s guess.

Make decisions based on your personal wants and needs. One major benefit of real estate is that it is tangible. A home has usefulness and value beyond just the price put on it. You can live in it, create cash flow with it, and spend time in it with those you love, whether the value is going up or down.

When is the last time your family spent a cozy evening inside your stock portfolio?

When stocks go down, all there seems to be is pain, unless you were betting against them.

Many folks invest in real estate to diversify their portfolio and as a hedge against inflation, even if they aren’t buying cash flow properties. As the saying goes, “Buy land, they aren’t making any more of it!”

Real estate offers the ability to create memories for a lifetime, and generational wealth. Contact your favorite Realtor to see what opportunities are available to you in today’s market that matches your long-term goals.

I send a bi-weekly, digital newsletter with insights into the real estate market, as well as helpful hints, tips and trends for homeowners. If you would like to receive it, just send me a message with your email and I will add you to the next mailing.

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO, ILHM

REALTOR

Featured in Scene Magazine’s Men on the Scene 2016 issue

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming soon)

Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™”

Re/Max Alliance Group

Mobile: 941-306-7384

http://myfloridahomesmls.com/JimSweat (Home Search)

https://jimsweat.wordpress.com/ (Blog)

www.linkedin.com/in/jimsweat (LinkedIn)

A Proven Professional Working for You!

22 Years Experience

 

What Goes Up Must Come Down

What goes up must come down.

That is the concern of many as the stock market is in all-time-record territory. Some of the wary are interested in moving a portion of their portfolio into something more stable, like real estate.

Real estate offers the ability to create memories for a lifetime, and generational wealth.

Are concerns about the stock market legitimate? The answer you get will depend on who you ask. Everyone loves a winner, and there is a crowd who is excited to see the stock market setting new highs.

I am not a stock broker, analyst, or even a current investor; seek the advice and counsel of a qualified, licensed securities broker before making any decisions.

Here are some of the concerns of the contrarians:

1.)    Easy money – low interest rates and QE – quantitative easing where the Fed fired up the printing presses and has flooded the markets with cheap, easy money and the potential for longer term damage in the form of inflation and higher interest rates.

Quantitative Easing has had multiple rounds, and the experts are not all in agreement what the long term repercussions will be. The markets can react, or overreact, to concerns.

2.)    Some feel that companies have done too much cutting in pursuit of higher stock values. Everyone can agree that cutting the fat makes perfect sense. Lean and mean profit-making machine.

However, when the cutting continues and core strengths and customer services are cut too much, a company is actually too weak. Removing the muscle and sinew just leaves bone, and bone by itself isn’t very capable. The stock gains seen in over-cutting will be followed by losses as companies falter in the marketplace.

One phenomenon that I have witnessed in past stock market corrections is a move of investors out of the equities markets and into real estate. For a pure investment (where you are not going to use the property personally) real estate can even be purchased in a self-directed IRA for tax advantages.

Properties can be used personally on occasion and still garner tax advantages (talk to your CPA) and some folks just like the idea that real estate is tangible. You can see it, touch it, even walk through it, sleep in it and enjoy it with friends and family.

When is the last time your family spent a cozy evening inside your stock portfolio?

Vacation-area second homes are another popular investment for money that folks pull out of stocks and decide to enjoy while it appreciates. Heck, even if the market stumbles again, you can still use the property as intended.

Again, real estate offers the ability to create memories for a lifetime, and generational wealth. Contact your favorite Realtor to see what opportunities are available to you in today’s market that match your long-term goals.

All the Best!

Jim Sweat, ABR, CLHMS, CRS, CDPE, GRI, e-PRO, ILHM

REALTOR

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming soon)

Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™

 

Re/Max  Alliance Group

Mobile: 941-306-7384

http://myfloridahomesmls.com/JimSweat (Home Search)

https://jimsweat.wordpress.com/ (Blog)

www.linkedin.com/in/jimsweat (LinkedIn)

A Proven Professional Working for You!

21 Years Experience

 

All-Time Record-Breaking Home Sales in Sarasota & Manatee Counties

Real estate experts predict that more existing homes will sell in Manatee and Sarasota counties in 2015 than during any other year in history.

And that is in a market with low inventory levels!

On a pace that the president of the Realtor Association of Sarasota and Manatee calls “historic,” Sarasota County is expected to exceed an all-time high of 11,550 home sales by year-end. In Manatee County, sales need only average 360 per month in November and December to break an 8,004-sales record set in 2013. Nearly twice that number sold in October.

By the end of October, the pace of sales had dropped only modestly during the autumn selling season, which is historically viewed as being “slow.” At the same time, median prices are near a five-year peak and homes are typically staying on the market a little over a month before selling.

Excerpted from article  published November 30, 2015. Written by Matt Johnson, Bradenton Herald business reporter.

Strong demand is pushing prices up substantially. That trajectory may slow as more sellers put their homes on the market, but with the number of homes for sale at or near a half-decade low, some buyers are jumping in while properties are still available where they want them at the prices they want to pay.

Housing inventory has been well below the six-month level of supply that defines equilibrium between buyers or sellers.

In October, the supply was between 3.5 and 3.9 months across the single family and condo markets in the two counties.

Higher prices, low inventory and rising interest rates may temper the sales pace next year, but all indications are the all time sales record will be broken this year.

 

Is This Another Real Estate Bubble?

Two questions need to be answered when multiple offers, bidding wars, tight inventory, and Realtors buying properties become the norm.

We have been seeing strong demand and rising prices for the last three years. The real estate market in Southwest Florida was decimated during the real estate crash, so it is not only reasonable, but also smart, to be alert for signs of danger. Values dropped by over fifty percent from the boom prices of 2005 to the depths of despair in 2011.

Many have been asking if the bidding wars we are seeing are leading to another bubble. Multiple offers are a sign of strong demand, which we definitely have.

There is one irrefutable sign when prices are not sustainable. I will get to that in a moment, first you need to know the two most important questions to ask:

1. Who?
2. Why?

Who is buying real estate, and why are they buying it? If you pay attention to the answers, you will have a good grasp on the overall health of the real estate market.

During an eight month period of 2014, over half of the agents in my office bought real estate. Now, we have a small office, still you had six agents buy property in a short period of time. Is that a warning sign?

It could be. The first wave of foreclosures during the crash was heavily populated with agent owned properties. I cover that in more depth in my upcoming book, Real Estate CSI: Controversy, Secrets, Insight. A real estate agent exposes dangers and dirty tricks that cost you money.

The second question determines if that is cause for alarm. Why? Answer: We all bought real estate to own it. None of those purchases was for a flip, or an attempt to get into the chain of title for profit. We all wanted to own the properties we bought.

That is a strong indicator of healthy market growth ahead.

During the boom, everyone was buying real estate. Anyone who could fog a mirror was clamoring to grab the next property available, and many times contracts were selling multiple times before the first closing even took place. Properties weren’t even changing hands. Just the contract to purchase was being sold at a profit to someone else.

Who? Everyone.

Why? For fast money. They didn’t want to own the property; they only wanted to get their name on a contract that could be sold tomorrow for more money.

The most important sign among the many:

When “everyone” is buying, but few actually want to own it, that is a bad sign.

So who is buying real estate today, besides half of our office? Baby boomers; early retirees; investors; snowbirds; first time buyers; move up buyers; people who love Florida and want to enjoy it for more than a couple of weeks a year; and the occasional flipper.

These are good people to see spending their money in the marketplace, and a sign that bodes well for the future.

Respectfully,

Jim Sweat, ABR, CRS, CDPE, GRI, e-PRO, ILHM

REALTOR

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming soon)

American Realty of Venice, Inc.

700 W. Venice Ave

Venice, FL 34285

941-484-8080

http://myfloridahomesmls.com/JimSweat Home search

www.linkedin.com/in/jimsweat LinkedIn

https://www.zillow.com/reviews/write/?s=X1-ZUyz3incawqo7d_93ahq Zillow

BOOM! Yes, that was my head exploding!

Warning: Informative Rant regarding Zillow-Trulia

This is why the public needs to be careful of the sources they use to make important decisions!

Things that make your head explode!

The DMV at Secretary of State office; Trulia; Zillow; getting “help” from a government agency.

Let’s just grab one of these, and let ‘er rip!

(For the record, I wanted to type the whole thing in BOLD CAPS!!)

I just sent Trulia a message not to renew my PRO subscription. And followed up with a phone call, because they plan on billing me again in just two days, and I want to make sure it doesn’t happen. So, what do they try to do?

Sell me advertising!

I have had profiles on Zillow and Trulia for @ 9 years, have been a full-time Realtor for over 20 years, and still Trulia only credits me with one sale.

Ever.

Total career high of… one!

Zillow was hardly any better: they had me credited with a career high of two (2) sales! So I started manually entering sales into Zillow. You would be shocked at the number of homes that are not in the Zillow system at all.

Our previous home: 100 years old, 2 blocks to downtown, 3 blocks to city hall and neither Zillow nor Trulia have it in the database as a home I can claim a sale on. Really?

I sort of understand some of the properties I sold in gated waterfront communities that they may not be able to access easily. Wait! Those homes are all deeded properties readily available on the county website, so why can these data-mining behemoths not locate the information?

Not even a zestimate for 412 Michigan Ave in South Haven, Michigan. Interesting. It’s not that zestimates have any bearing on reality, it is that so many people THINK the information they are getting online is trustworthy, and it is NOT!

So, today the Trulia rep told me what I needed to do is pay for advertising in my chosen zip codes, and buyers and sellers will then see my profile. I explained that my profile makes it look as if I am a useless slug that can’t sell anything (including my own house!) and I am NOT interested in paying them to send people to my profile for proof that I am worthless after 20 years in the business!

Boom!

How many times will my head explode and I continue on?!!?

Zillow bought Trulia this year, so they now are merging their faulty databases. The rep today said that I will likely see issues with my profile during the merger.

Not likely to get any worse for me, is it?

She confirmed My Florida Regional MLS feeds into Trulia, so the information should be automatically updated. That was after I explained that our MLS goes from Fort Meyers, north to Tampa, east through Kissimmee to the Atlantic Ocean. It is a big MLS! Not the Podunk system she assumed wasn’t feeding into Trulia.

So why, after 9 years, can’t they get it right? Or even close? They could credit me with a couple hundred of my sales and I probably would never even look to see if they were all there. Maybe even 100 would keep me from looking.

But only ONE?!?! I might notice that!

Several times through the years Trulia has said they will fix the feed to my profile. And I have even added some of my sales manually. But, time and time again, this is what I get. The rep said she has hundreds of Realtors in Florida who don’t have issues with their feed.

What makes me so special?

My recent sales range from a $90,000 condo downtown to a $3 Million bay front manse on an idyllic Florida island. I have worked the listing side, the buyer side, and even one with both sides. Trulia even sent me updates on my listings (that sold within days at full price or higher with multiple offers). How can they not at least have the properties they were emailing me about!?!?

Don’t get me started on the agent ratings, recommendations and testimonials! That is a whole other ball of… wax!

So here is my open letter to Trulia, and it will suffice if someone from Zillow would also like to take a look:

I do not want to renew my PRO subscription, that I have had for eight months. I have not gotten any leads from it. The only branding I will get from this is negative! I have had profiles on Zillow and Trulia for @ 9 years, have been a full-time Realtor for over 20 years, and still Trulia only credits me with one sale.

I have recommendations, but no ratings because the customers filled them out before ratings were a feature. I can’t remember if it is Trulia or Zillow, but at least one told me I have the old version of profile, and if I move to the new one I will lose the testimonials that I already have. Great.

Trulia was more useful to me when the blog and Q&A were being utilized. Now, I just don’t see the value of it.

Trulia-Zillow, surely you are working on cross-populating ratings and testimonials, right? Oh well, I’m not paying to see how it turns out.

Please let me know what additional information you need to set up my NON-renewal request.

Rant over. I feel better. Hopefully you are now better informed, and this is a win/win!

Respectfully,

Jim Sweat, ABR, CRS, CDPE, GRI, e-PRO, ILHM

REALTOR

Jim Sweat – Helping Buyers & Sellers Choose Wisely Since 1995 ™

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming 2015)

American Realty of Venice, Inc.

700 W. Venice Ave

Venice, FL 34285

941-484-8080

http://myfloridahomesmls.com/JimSweat Home search

www.linkedin.com/in/jimsweat LinkedIn

https://www.zillow.com/reviews/write/?s=X1-ZUyz3incawqo7d_93ahq Zillow

Local Realtor offers to pay you so they win next time! Coastal Living ranked Venice America’s Second-Happiest Seaside Town 2015.

Local Realtor offers to pay you so they win next time! Coastal Living ranked Venice America’s Second-Happiest Seaside Town 2015..

How Many Million Dollar Homes Sell Every Day in the Tri-county Region of Sarasota, Manatee and Charlotte?

How secure is it to purchase a high-end home in this southwest Florida area? Let’s take a quick look at two of our local islands, and then the numbers for each county.

In the last 12 months, there have been 25 closed sales on Casey Key. All but three of them were for over a million dollars. The average sale price was $2.62M, the median was over $2M.

Fifty three single family homes, on Siesta Key, over $1M, on the waterfront sold in the last 12 months (more than one per week). Average sale price was almost $2.6M; with the median at $1.8M.

When I expand the criteria to all sales on Siesta Key for $1M or more, there are six with accepted offers, averaging almost $2.4M asking price; seven are pending with average list price of $2.15M; and 78 sales have closed, with an average selling price of $2.25M. That is 1.5 sales per week, pretty strong demand for million dollar homes on just one barrier island in Sarasota County!

When I proceed to pull the statistics for all of Sarasota County, it confirms that there is a robust market in the $1M and up price range.

Thirty one homes are active with contract (accepted offers in place) with an average list price of $1.72M. Seventy five homes are pending, with an average list price over $2.3M.

395 homes have sold for over a million dollars in the last 365 days in Sarasota County! More than one per day, with an average sales price over $1.9M. The average days on market is 183 in this price range, so it may be a stretch to call it “brisk”, but 395 closed sales is certainly proof of a strong and healthy demand for high end homes in the Sarasota area!

Manatee County has five homes AWC – active with contract, averaging $1.8M; eighteen are pending, averaging $1.74M; one hundred twenty three (123) homes have sold averaging over $1.5M.

Charlotte County is smaller and has six high end homes with accepted offers (AWC) that average $1.59M; ten are pending sales averaging $1.64M; twenty homes have sold with an average sales price of $1.57M.

Total sales for million dollar homes in the Tri-county region are 538; average is almost 1.5 sales per day. So, how secure should someone feel about buying a high end home in Sarasota County, Manatee County, or Charlotte County?

Five hundred thirty eight sales indicate a lot of millionaires are interested enough in our area to put some serious money into real estate here.

Here are some additional things to think about.

Even though the experts were wrong about how quickly interest rates would go up, they will eventually rise beyond the historic lows we have been enjoying. A boost to our area is that property values have been increasing in most of the country, and that will allow many folks who were waiting to regain their equity, to sell up north and move to Florida.

Thousands of baby boomers retire every day, and many of them have spent their entire lives dreaming about owning a home in Florida so they can escape the cold that makes their bones ache!

It isn’t just homes that are selling. When you follow the money, you end up in the Tri-county region.

Last month, Publix paid more than $17 million dollars for the shopping center at University Parkway and Market Street in Lakewood Ranch. In the past year, it also acquired centers in Sarasota, Parrish, Englewood and Port Charlotte.

Publix is just one company that is expanding in the region. A lot of big names are investing heavily in SW Florida. The UTC Mall is the only mall that opened in all of the US last year. Many other big names have either just come to the area, or expanded in the last few years. I am working on an updated list of businesses that have opened commercial locations recently.

I feel good confirming that there is such an active high end residential market, on top of the massive investment regional and national companies are making in our area. This all bodes well for the future, and proves that a lot of smart money is flowing directly into the Sarasota County region.

Follow the money, it leads to Sarasota!

Sales data compiled from the My Florida Regional Multiple Listing System for 3-18-2014 to 3-18-2015.

Respectfully,

Jim Sweat, ABR, CRS, CDPE, GRI, e-PRO, ILHM

REALTOR

Author of REAL ESTATE CSI: CONTROVERSY, SECRETS, INSIGHT (coming 2015)

American Realty of Venice, Inc.

700 W. Venice Ave

Venice, FL 34285

941-484-8080

http://myfloridahomesmls.com/JimSweat Home search

www.linkedin.com/in/jimsweat LinkedIn

https://www.zillow.com/reviews/write/?s=X1-ZUyz3incawqo7d_93ahq Zillow