Florida Real Estate News


May 15, 2016

Price Negotiations

All buyers want to pay as little as possible for the home they purchase. Buyers in slower markets are definitely looking to score a bargain. Our job is to combine services to our sellers that include marketing to improve the competitive position of their homes, and then to assist them in countering low offers and buyer resistance to fair pricing.
 
Part of this process begins with the CMAs we do and the price at which we suggest that you list your home. Starting at the right price for the market with a little room for negotiation combines market specifics with buyer human nature factors. We’re really good at negotiating, as we do it every day. We’re on your side, and our job is to get a combination of the best price and contingencies resolutions for your home.
 
Many sellers are intimidated when there are distressed properties for sale in the area or foreclosures putting downward pressure on prices. However, generally there is a 20% to 30% difference in selling prices between those homes and seller-occupied homes in good condition. You see, those distressed properties are usually in poor-to-terrible condition. In some cases, they will not even qualify for a mortgage without extensive modifications and repairs, and that’s not going to be possible for most buyers.

So, the first thing to remember is that you’re selling a “ready to move in” property, and this commands a higher price. The more “ready to move in” it appears to the buyer on that first walk-through, the better the price you’re going to get. So, we’ll make some suggestions as to landscaping, curb appeal, outdoor and indoor improvements, and possibly even “staging.” Staging is the process of moving, adding to or taking away from furnishings in the home to make it seem more spacious and to allow potential buyers to view it as “their home” in the future.

Consider the possibility of post-inspection repair requirements by the buyer(s) as well. The time to think about this is from the first offer, as you don’t want to negotiate a purchase price that leaves you little or no room for possible repairs or condition corrections. This single item is the cause for the vast majority of deal failures after a successful initial price negotiation.

Some negotiations are short and sweet, while others can involve multiple counter offers with terms and conditions related not only to price, but also related to closing costs, items included in the sale, settlement dates, partial owner financing and more. Our job is to work with our sellers to know their needs and to tailor the negotiation to those requirements to get the best deal for them.

Posted in News
May 15, 2016

3 Fatal Real Estate Mistakes to Avoid

Buying a home is a major undertaking and a huge investment. It helps to have a seasoned expert by your side as you negotiate the process - and it could hurt if you make one of these three mistakes.

Whether you're in the market for your first home or looking to move up to something better, it helps to do your homework and have the right people on your side as you negotiate your purchase. A home is usually the biggest investment a person makes, and you need to make sure you have the knowledge and advice to make the right investment. Here are three ways buyers often make the wrong one:

1. Hiring the Wrong Agent

There are tens of thousands of licensed real estate agents out there, and most of them lack real experience in buying and selling properties. Your agent should also be your partner in your search for the right home. Great agents build relationships with their clients, getting to know their needs and desires and following up with them to make sure they continue to have homes that meet their needs and desires as they change.

2. Not Having a Plan

It may be an old cliche, but those who fail to plan plan to fail. You should have a good idea of what sort of home and neighborhood you want, and you should discuss your goals with your agent at the start.

And you should be ready to seize opportunity if it strikes, even if the opportunity isn't Your Perfect Home. Your agent can alert you to outstanding values in the market that may satisfy your wants without breaking your budget, especially in highly-sought-after neighborhoods.

3. Being Uninformed

There's no excuse for not having at least some idea of what the real estate market looks like in the areas where you would like to live, given all the resources available online, including ours. You will have a better home shopping experience with your agent if you know at least a little about your target areas going in.

But a great agent will have a deeper knowledge of the market and trends affecting it, and the agent can help you refine your search or modify it if needs be more effectively than you could on your own.

 

Posted in News
May 15, 2016

Quality Properties at a Discount

As a buyer, it is important to recognize the difference between getting a great price and buying a quality property at a discount.  Price is only part of the evaluation of a property.  You do not have to look further than some of the bank owned foreclosures or short sales in West Michigan to see the difference.  There is a trap that many buyers fall into at some point, and that is leaning toward the best price vs the best value

Imagine that you are buying an investment property, and that you plan to hold it for a minimum of 5 years.  There are two hypothetical properties for you to choose from, and they are the same size, number of bedrooms, etc.  One property is priced $10,000 below the other.  Which one do you purchase?   If you said the lower priced one, you would not be alone.   Many inexperienced buyers and investors would say the same, but might be making a mistake.   They are prioritizing price over the other factors that affect value.

Here are some things to consider about a property in an effort to Buy Quality Properties at a Discount:

  1. Correctly Priced:  Quality properties will be on the market for a shorter time and sell closer to their asking price.   Please feel free to consult with me and get my opinion on the price of a property.
  2. Good Condition:  Less out of pocket costs up front means more capital and higher profits earlier in your investment.  This adds to better overall performance and quicker turn time as you don't have to recoup extra cash invested in unexpected repairs and improvements.
  3. Rent Sooner/Faster with more Stability:  Better properties will rent more quickly and have less vacancy over the long term. 
  4. First to Sell: Quality properties will sell more quickly when you reach the point of exiting the investment.  They will also be the first part of the market to begin the cycle of appreciation. 
  5. Higher Upside:  Quality properties have a higher upside.  In an appreciating market, the value ofeverything is rising.  "A Rising Tide Lifts All Boats".  In markets like that of 2015-2016, values rise simply because of lack of inventory.  When the B & C grade properties are appreciating, buyers will pay a real premium for the highest quality, or A properties.

You can see that VALUE is more than just price.  A savvy buyer is looking for a great value and you do this buying considering these tested methods for Buying Quality Properties at a Discount. 

Any time you are considering a new real estate investment and want professional advice, please contact me or a team member. 

Posted in News
May 15, 2016

3 Characteristics of a Savvy Investor

1. Clear Goals

A savvy investor will have very clear goals for their investments.

Time Frame

A savvy investor has run the numbers and they have a time frame for how long they are going to hold a property based on the next two goals.

Expectations

They will have a realistic approach to future appreciation and those expectations will typically be based off of logic and data. They are not trying to hit a home run each time they step to the plate. Instead, their plan includes a lot of times at the plate and a continuous flow of base hits.

Performance

Ask a great investor what type of performance they are looking for and they will tell you EXACTLY what works for them. They have this down to a science, because if the performance works, the expectations work and their time frame for owning or flipping is met.

2. Logic Based

Savvy investors are logic based and unattached

The Property Fits the Plan, Not Vice Versa

Experienced investors create a plan that is profitable and then find a property that will fit the plan. Novice investors put a plan together that is based more on the type of property they think they want and they try to create a solid investment plan for a bad investment property.

Know Good Investment Was Bought Right

They understand that holding a bad investment does not make it a good investment. If a property is good at the beginning, it will perform well and be profitable when it’s sold. A property purchased wrong will always be wrong.

3. Old School

A Savvy Investor Uses Old School Investor Requirements

Make Decisions on THE NOW vs THE POTENTIAL

In past markets, investors lost site of the current performance and made decisions to buy based on the potential for future appreciation. For a period of time it worked.

Plans for the DOWN vs. hoping for the UP

Now, a buyer/investor buys a property that makes sense today, plans for and is ok if there is a downturn in value, cash flow, etc. in the future and does not include potential appreciations in their strategies. If it happens, it’s simply a BONUS.

Has Exit Strategy B and C for Flips

When FLIPPING properties a novice buys, improves, and tries to sell. If any of the variables that are typically out of the buyer’s hands change, the flip doesn’t happen and there is a significant risk to the buyer in owning that property. Savvy investors will buy properties to flip with a 2nd and 3rd exit strategy if the flip doesn’t work.

Posted in News
May 15, 2016

3 Strategies to Beat the Competition

1. Be Prepared

Get Ready for Competition

When you find the best property for YOU, its very likely that someone else wants it. The BEST properties get a LOT of exposure and sell in a reasonably quick time frame in most markets. If you wait, you will lose out.

Know Your Limit

Before you even begin, it’s important that you have an idea of where you want to start with an offer and how high you are willing to go. At some point in the negotiation, you may realize that you are going to have to go over your limit to get the property. There is nothing wrong with that as long as you are comfortable and the property is worth the money to you. The reason you want to know your limit ahead of time is so that you can make quick decisions. A buyer who hesitates during negotiations opens the door for other buyers to come in and “steal the deal” because the seller has shown some of their cards.

Start at a Higher Price

If you know your market and you are working with a professional agent, it’s likely that the first offer that you are wanting to make is well below the market value. Consider starting a little higher, and negotiating less. Once you have the seller in the negotiation they have a fear of losing the deal.

2. Hire a Watchdog

Establish a Partnership

The best deals come and go before most buyers ever see them. Your agent is your watchdog and they are constantly searching for the new properties that will work. Because they know the market so well, they will often find properties that are not even for sale yet that fit your criteria. This will give you a MAJOR advantage over your competition.

Open Up on  Your Goals

In order for your watchdog to be productive, they have to know your goals. Open up on what you are trying to accomplish and the results will show up sooner.

3. Do Your Homework

What Does the Seller Need/What Do They Want?

This doesn’t mean find out how much they want and pay them their price. It simply means you can negotiate a better deal and keep the competition at bay if you can create your offer in a way that it meets some of the seller’s goals. Finding out what the seller’s time frame for moving is, would they consider selling some personal property, are ways that you can add “value” to your offer without spending more money.

What Will Shut Them Down?

In addition to what they are wanting it’s equally important to know what will turn them off. Things like closing costs, home warranties, low ball offers, etc. will completely shut down a seller during negotiations. Find out if a previous buyer’s mistake can give you an advantage. Get a preview of what the seller has dealt with in the past and use that information to help you make the deal work!

Posted in News
May 15, 2016

3 things you can easily negotiate on.

 

3 Things a Buyer Can Negotiate to get a better deal

PRICE

Know Your Market
Let's face it, in order to get the very best deal possible, you need to know what the market value is. A savvy buyer and a professional agent are going to be market experts. They will be able to identify what market value is and then negotiate to get BETTER THAN MARKET VALUE. 

Present Your Knowledge to the Seller
Negotiating begins with the presentation of the offer. Simply putting an offer in on a property with no "Set-up" is going to leave you with limited leverage in the negotiation and many times you will be perceived as a "Shark" simply trying to take advantage of the seller. A powerful offer presentation will tell your story and humanize you to the Seller which allows them to be more flexible FOR YOU, NOT YOUR COMPETITION. 

Here is a sample report that we use to really show the value of a home.

Sample Neighborhood Report

Report Explanation

Let Them Know You Love the Home... BUT
In order to negotiate the BEST PRICE, you have to bring the seller back to reality. The seller knows you like the property because you put an offer in. It is imperative to remind them of the short-comings that you are willing to overlook as long as the value makes sense. They will recognize that you are buying a property that you like but it also has to make financial sense. 

Obtain and Maintain Leverage During Negotiations
In EVERY negotiation, there are times when the leverage shifts. Learn the strategies that will allow it to shift in YOUR FAVOR, and you can negotiate with TOUGH SELLERS and get the best price. 

 

CONCESSIONS

In Starts With the Presentation
When you set up the offer with a powerful presentation, you laid the groundwork for the seller making some concessions on things that may need to be updated, upgraded, repaired, replaced. 

Changes vs. Cash Back
Once you are close to where you want to be financially, you can refer back to those items. Most sellers know there are things that not EVERY buyer is going to like in their home. Sellers that stop negotiating on price will often be willing to move more on repairs, etc. that they know could come up in another negotiation. 

 

CLOSING COSTS

The Surefire Price Reduction
Sellers are not surprised when a buyer asks for closing costs. Similar to concessions the closing costs offer a good avenue for the savvy buyer to negotiate a better price by minimizing the cash they have to bring to closing. Closing costs are a great negotiating tool, whether you need them to do the closing or not, as long as you know how to present the offer. 

Know the Guidelines and Limits
It's important to know the rules. There are limits to what you can and can not ask for and your Agent or mortgage lender can educate you on these important items. 

The Biggest Closing Cost Mistake
Avoid asking for closing costs on Cash Deals. Some would argue that it makes the seller feel like they are getting a higher price. Just like you, the buyer, the seller is only concerned with HOW MUCH WILL I NET. Most sellers are completely confused and feel taken advantage of when closing costs are requested on cash deals. When they are confused the shut down in negotiations. 

A Great Negotiator can assist you in buying under market value in many cases. A Poor negotiator can cost you thousands

 

Know Your Market
Let's face it, in order to get the very best deal possible, you need to know what the market value is. A savvy buyer and a professional agent are going to be market experts. They will be able to identify what market value is and then negotiate to get BETTER THAN MARKET VALUE. 

I can help you know your market.   I use a custom report that will help us see what is happening right now for any situation.

Sample Report of a neighborhood

 Present Your Knowledge to the Seller

Negotiating begins with the presentation of the offer. Simply putting an offer in on a property with no "Set-up" is going to leave you with limited leverage in the negotiation and many times you will be perceived as a "Shark" simply trying to take advantage of the seller. A powerful offer presentation will tell your story and humanize you to the Seller which allows them to be more flexible FOR YOU, NOT YOUR COMPETITION. 

Let Them Know You Love the Home... BUT
In order to negotiate the BEST PRICE, you have to bring the seller back to reality. The seller knows you like the property because you put an offer in. It is imperative to remind them of the short-comings that you are willing to overlook as long as the value makes sense. They will recognize that you are buying a property that you like but it also has to make financial sense. 

Obtain and Maintain Leverage During Negotiations
In EVERY negotiation, there are times when the leverage shifts. Learn the strategies that will allow it to shift in YOUR FAVOR, and you can negotiate with TOUGH SELLERS and get the best price. 

 

In Starts With the Presentation
When you set up the offer with a powerful presentation, you laid the groundwork for the seller making some concessions on things that may need to be updated, upgraded, repaired, replaced. 

Changes vs. Cash Back
Once you are close to where you want to be financially, you can refer back to those items. Most sellers know there are things that not EVERY buyer is going to like in their home. Sellers that stop negotiating on price will often be willing to move more on repairs, etc. that they know could come up in another negotiation. 

 

The Surefire Price Reduction
Sellers are not surprised when a buyer asks for closing costs. Similar to concessions the closing costs offer a good avenue for the savvy buyer to negotiate a better price by minimizing the cash they have to bring to closing. Closing costs are a great negotiating tool, whether you need them to do the closing or not, as long as you know how to present the offer. 

Know the Guidelines and Limits
It's important to know the rules. There are limits to what you can and can not ask for and your Agent or mortgage lender can educate you on these important items. 

The Biggest Closing Cost Mistake
Avoid asking for closing costs on Cash Deals. Some would argue that it makes the seller feel like they are getting a higher price. Just like you, the buyer, the seller is only concerned with HOW MUCH WILL I NET. Most sellers are completely confused and feel taken advantage of when closing costs are requested on cash deals. When they are confused the shut down in negotiations. 

A Great Negotiator can assist you in buying under market value in many cases. A Poor negotiator can cost you thousands!

Posted in News
April 26, 2016

Visit the Tigers on Palm Beach Real Estate at the Zoo

Go to the zoo on Palm Beach real estate.Palm Beach real estate owners have a wonderful opportunity to meet animals from around the world at the Palm Beach Zoo. Each day offers the chance to encounter some of the zoo creatures at the daily animal enrichments. A keeper will show Palm Beach home owners how to make a tiger happy during a Tiger Talk. Watch an alligator eat its lunch at the American Alligator Talk & Feeding. Watch the antics of the primates at the Tropics of the American Primate Enrichment. At 1 p.m. every day, see the unique behaviors of several species at the “Wild Things Show”. Learn about the behavior and habits of several amazing birds each day at 2:30 p.m. at “Wings Over Water”. Of course, visitors can stroll through the animal enclosures and spend as much time watching their favorites.

Attend Special Events Near Your Palm Beach Home

The zoo is the Palm Beach real estate location for many special events. Summer day camps, family overnights, and safari nights are all scheduled regularly. Come and support the zoo at the annual Do at the Zoo event. In 2016, the event will be held Friday, May 6th from 6:30 to 10 p.m. at the zoo. The night will be full of great food and drinks, exotic animals, and good fun.

The zoo is open every day from 9 a.m. to 5 p.m. Visit the Palm Beach Zoo to learn about ticket prices, memberships, and see a calendar of events.

 

Posted in News
April 25, 2016

Living in Palm Beach at Its Finest at the Par 3 Course

Enjoy living in Palm Beach and playing golf.If you want to know why living in Palm Beach is such a treat, head to the golf course. The Town of Palm Beach maintains the world famous Palm Beach Par 3 Golf Course. Originally developed in 1961 by Dick Wilson, the renowned golf course architect, and his apprentice Joe Lee, World Hall of Fame champion Raymond Floyd completely redesigned and updated the course in 2009. Each of the 18 holes of the course is beautifully unique. Holes range from 81 to 211 yards, and there are three sets of tee on each hole. Golfers living in Palm Beach can hone their skills on the driving range, putting green, or practice bunker. The whole course has a fabulous tropical feel, with palm trees waving in the breeze coming off the ocean. Two lakes add to the tranquil feel of this golfing retreat.

Enjoy the Palm Beach Lifestyle and Relax at the Clubhouse

After a game, players can relax at the new clubhouse. The building was built in the Key West style and exemplifies the relaxed Palm Beach lifestyle. The pro shop is on the ground floor, where patrons can stock up on the best quality gear. The second floor is the location of the Al Fresco Restaurant and Bar. Breakfast, lunch, and dinner are served up daily, using fresh ingredients and a view of the lush landscaping of the golf course.

Visit Palm Beach Par 3 Golf Course to book a tee time online and get more details about rates and events.

 

Posted in News
April 24, 2016

Visit Palm Beach Property at the Maritime Museum

Visit historic Palm Beach property.Palm Beach property owners who’d like to learn more about the history of their town should plan a visit to the Palm Beach Maritime Museum. There are two locations for the museum. Go to Currie Park to see artifacts that tell the history of the area, interactive exhibits and simulations to help visitors experience life as it was. In addition to the exhibits, the Currie Park location has a dock for the ferry that takes visitors to Peanut Island. This is the historic Palm Beach real estate location of the John F. Kennedy bomb shelter, which was made available to the president and his family and entourage during the Cuban Missile Crisis. Ride the ferry to the island to tour the bunker and get a sense of the preparations that took place before the crisis was resolved peacefully. The Boathouse and Coast Guard Station are also located at Peanut Island and have been painstakingly restored.

Tour Historic Palm Beach Real Estate on Peanut Island

Visit this fascinating Palm Beach property Thursday through Sunday from 11 a.m. to 4 p.m. Suggested donation for admission to Currie Park is just $2. The guided tour of Peanut Island lasts 25 to 30 minutes. Admission for adults is $15; for seniors 60 years and older it’s $12; and for children ages five to 17 admission $10. Take the VIP tour for a 45 minute, more in depth look at the site for $25. Visit the Maritime Museum to find out more about the facility and special events.

 

Posted in News