Roy Cohen’s Blog

I was listening to Jim Cramer, the financial expert, on MSNBC this morning.  I couldn’t agree more with his view of the current real estate market.  He pointed out that a key real estate indicator is the number of buyers who take back their deposits on new homes.  This number decreased by 50%.  That means more buyers are proceeding with their new purchase, and in most cases have been able to sell their current homes.  Mr. Cramer indicated that we are at or near the bottom of this market and prices will start heading up wards within the next 8 months.  I couldn’t wait to get on the phone with several of my customers who have been sitting on the fence deciding if now is the time is right to buy.  I believe it is, and I don’t want to see any of them miss this opportunity.  I don’t want to hear from them next year how they could have purchased the same house for $100K less last year.  When opportunity knocks you have to answer the door, it won’t wait around forever.  If you are one of those sitting on the fence now is the time to buy!

Prices had steadily declined for many months with each sale being lower than the sale before.  Now it seems, in our South Florida condo market, pricess have stabilized.  Buyers seem to be returning at a steady rate having made February 2008 one of our best months in the last few years.  March is heading in that direction as well.

I’ve said it before and i’ll say it again.  NOW IS THE TIME TO BUY!!! Don’t wait until prices return to a steady up trend.  Then you’ll be saying I could have bought that apartment last year for $25K less.  Now is clearly the time.  The stock market is shaky.  Without a great place for their investment dollars buyers will return to our paradise for financial gain and winter enjoyment.  Some recent sale prices have trended up.  Don’t wait, there isn’t much to be gained sitting on the side lines.  Buy while prices are low.  You won’t regret it.

As the market continues to “correct” and prices fall many customers and some agents want to blame us, the Realtors. I have heard many customers state that a particular Realtor is ruining the value of the homes in their community.  I personally had an agent with another company chastise me for some of the lower asking prices on my listings.  Aside from any legal arguements about this agent’s statements, let’s be clear, we don’t create the market conditions that exist.  We assist the Seller’s in achieving their goal, which is to get their home sold so that they can move on.  In some cases it is a job transfer, an elderly widow or widower who needs to be closer to their children, and, unfortunately, some folks just can’t afford to continue living in their homes.  Pricing to meet the current market is one of the most important things we can do.  Although this market has been tough, with correct pricing we have been able to generate several sales for our customers. 

Every customer has different needs.  Some customers are in a stronger financial position and can afford to wait, while others cannot.  It is not our place to make these judgements.  Consultation with your customer is the only way to determine their situation and offer them all of their options and our sound advice.  As professionals it is our job to know the ever changing market place and everything that is happening in it related to real estate.  Our value as agents has to be more than entering a listing in the MLS, it has to be our knowledge and professionalism, things that separate us from the layman.  We have to give insight that only a professional can give.  That is where our fees will be earned, respected, and appreciated.

Through our expertise we will price our customer’s homes in accordance with the marketplace……………..so Don’t Blame us! 

Today I received a phone call from one of my sellers.  She stated she was annoyed with me because I hadn’t kept her informed as to what was happening.  I immediately looked at my Outlook and I was able to see that I had called her 30 days ago.  I explained that I didn’t really have anything to tell her.  The market I am in is somewhat seasonal and we all know that the market in general is not all that strong.  There were a few lookers but no offers.  We have the unit priced correctly and with a little patience it should sell.  I promised to stay in touch with her more often.

After we hung up I began to think about how my customer must feel.  Four weeks go by without her hearing from me, her Realtor.  She doesn’t live at the property so she has no idea what’s going on.  The fact that I know the market is soft and we haven’t gotten into the season yet doesn’t mean she is aware of all that.  What a mistake I made.  I left this customer with a negative impression.  She obviously doesn’t feel comfortable with the way I have been handling her sale, and all because I haven’t communicated enough.  The ramifications of this will surely be either her not renewing with me when the listing expires, not trusting my advice when negotiating a potential offer, and probably not referring me in the future.  None of this is acceptable to me, and can easily be avoided by keeping in touch with the Seller.  I have calendered phone calls and e-mails to all my Sellers for every 10 days. I will keep in touch!

It seems that for me, the biggest challenge in this market is staying motivated.  The ability to focus becomes more difficult when there is less to do.  At least that is how it is for me.  I constantly have to remind myself that, as with all markets, what has risen and fallen will rise again.  Activity will start up as soon as prices reach a low that is attractive to buyers.  Hopefully this will begin to happen and we can see the start of a recovery.  While I am realistic enough to know that it probably won’t happen fast enough, I still have to think positively about our market and convey that feeling to my customers.  Why would a potential buyer want to purchase from an agent who doesn’t seem optimistic about the market place? 

Keep reinforcing the good points of this market to yourself.  Shut out the negative chatter we all hear in our offices.  It is amazing how we can allow our colleagues to bring us down with their constant complaints.  Tune it out because you want to stay focused and be positive for your customers.  Your customers can sense it if you are negative and this can kill deals.  Make sure you’re in the right frame of mind before you get in the game.

Thinking of moving to South Florida?  If your not you should be.  This state has so much to offer.  As prices of homes rose steadily over the past few years it made Florida unaffordable for many.  With the market correction that has taken place South Florida is once again very reasonable .  With some of the best winter weather this country has to offer, fantastic shopping and dinning, and the best beaches in the world, South Florida is very attractive.  Here in Palm Beach county, whether you are looking for a house or a condo, we have it all and in affordable price points.  If you are living in Canada and want a winter home, with the Canadian dollar at $1.02/$1.00US now is a great time for you to buy and get a wonderful value.

Come down for a weekend and look around.  Any of our Realtors would be glad to show you around.  You’ll be glad you did.

Recently a colleague of mine, Robin Yablon, wrote “The Power of the Pen!!!!” in which she discussed the media’s ability to destroy the real estate market with the news it chooses to print.  I was getting my annual physical yesterday and got into a discussion of the real estate market and the news media with my doctor.  His daughter is a meteorologist, and so I was not surprised when he asked me if I knew  what the chances of a hurricane hitting Palm Beach County where.  I thought about it for a moment, and then said I really didn’t know but I’d guess our chances of getting hit were 50% in any given year.  I was shocked when he informed me that our chances were 3.9%.  I went to the National Oceanic and Atmospheric Administration website and sure enough their data suggests a less than 4%chance.  Why all the negative hurricane hype?  I guess it benefits the TV, Radio, & Print media.  It helps them get ratings, sell papers, and sell advertising.  Home Depot, Lowes, Publix, Winn Dixie, Target, Walmart and all the other retailers get a boost in sales from hurricane hysteria.  Did any of the media outlets ever tell us that we had less than a 4 in 100 chance of the hurricane hitting us.  It is important to be prepared, and I don’t want to diminish the significance of that, however, prepared dosen’t mean panicked.  We can certainly inform our citizens without making it seem like a doomsday event.  Let’s keep things in perspective and remind the rest of the country of our great winter weather and less than 4 in 100 chance of a hurricane.

Most buyers and sellers think that a Realtor’s work begins and ends with showing homes.  Nothing could be further from the truth.  It is also this false impression that leads some to conclude that they should go it alone and save money.  They don’t realize that when you hire a professional Realtor your hiring years of experience and expertise.  I always tell my customers that the real work begins after the contract is signed.  From the inspection, finance, appraisal, condominium or homeowner’s association application, interview, title and closing an experienced Realtor makes all the difference in the world.  Issue come up and the ability to deal with those issues is what makes hiring a Realtor worth every dollar of the commission.

I just recently worked with a customer who decided he didn’t need a Realtor.  He was going to buy on his own directly from a FSBO.  He found a home, entered into the contract, hired an attorney to represent him at closing and proceeded with the purchase.  He had the property inspected and apparently there was a mold issue.  He did not notify the Seller of the mold problem in accordance with the contract.  To make a long story short he is now in an escrow dispute, paying for litigation.  He called me to see if I could help.  Needless to say it was to late for my expertise to help, however, I don’t think he’ll try to purchase again without a Realtor. 

In today’s real estate market it is imperative that as  real estate professionals we become more creative than ever.  This is especially true when it comes to financing.  In a recent transaction the buyer and seller reached an agreement on price.  Unfortunately the appraisal was lower than expected.  After hours and hours of phone calls and research, we were finally able to find a lender who would allow the seller to hold a second mortgage for the difference.  The original lender would not allow a second mortgage.  Then we had to convince the seller that while there is a  risk in holding a second mortgage,  it was unlikely that the seller would achieve the contract price any other way.  Every potential buyer would encounter a similar problem.  If prices drop further it would be impossible.

It was creativity that made this deal happen. 

Boca Lago Country Club is the sleeping giant of Boca Raton.  This 1696 unit complex is spread out over 550 acres.  The homes sit on two 18 hole golf courses which include large lakes and preserves.  Located in the heart of Boca Raton, near the turnpike entrance & I-95, close to shopping, and a short drive to the beach, make the location one of the best in Boca Raton.  Prices for a 2 bedroom/2 bathroom apartment (1470 s/f) including a screened terrace start at $139,900.00.  While there is no mandatory membership the Boca Lago Country Club offers wonderful amenities, great golf & tennis, and a friendly and active social life.

Why not check out Boca Lago?