Don’t Be Fooled By These 3 Real Estate Myths

by Brendon DeSimone / Published April 01, 2013 / Zillow

As the real estate market significantly rebounds, some buyers and sellers are dipping their toes in the waters for the first time. Inevitably, they come into the market with assumptions about how it works.

Their assumptions may come from TV reality shows or watching their parents’ house-hunting experiences. Maybe they’ve learned about real estate from a co-worker’s recent home buying or selling experience. The trouble is, the new buyer or seller’s assumptions are sometimes based on outdated or generalized “real estate myths.” Here are three such myths that many less-seasoned home buyers and sellers assume are true.

Myth No. 1: Spring is the best time to sell a home

Historically, real estate seasons were tied to summer and the end of the school year. Families were the typical buyers or sellers, and they wanted to move during the summer so their kids could start anew in September. That’s how spring became the prime selling season. It’s true there are still more homes for sale in the spring, which means there’s a lot of activity and buzz. But spring isn’t necessarily the best time to sell a home anymore.

The reality: The best time to sell is during the holidays and right after

Today, more than half of buyers aren’t married, and their decisions aren’t based upon school schedules. So spring isn’t as relevant as it used to be. Instead, the best time to sell a home is in November, December and January.

It’s a supply-and-demand issue. Most sellers assume buyers aren’t seriously looking during this prolonged holiday season. And yet, many buyers are looking at properties in person and online right up until Christmas Eve. If the right home goes on the market in mid-December, a serious buyer — and there will be a lot of them — will take note.

After New Year’s Eve, most buyers jump back into their routine with a resolve to get into the real estate market, even though many sellers wouldn’t even consider listing in January. The net effect: Savvy sellers will face less competition for a still-strong pool of buyers during this period. And that makes November-January a great time to sell.

Myth No. 2: Always start with your lowest offer

There’s no generalized strategy for making an offer on a home anywhere, ever. A seller could have overpriced or underpriced the home on purpose. Some markets may be more competitive than others. But, somehow, in the back of the buyer’s head is good old Uncle Bob saying “never offer the full asking price.” That strategy might work if you’re trying to buy a used computer on eBay. And it worked in some real estate markets years ago. But times have changed.

The reality: A low offer may get you nowhere fast

A buyer in a strong, tight inventory market today would be wasting their time making low offers right from the start. It’s likely a home that’s priced right and shows well can receive multiple offers, sometimes even over the asking price. In this environment, constantly throwing in low offers because that’s what your Uncle Bob advised you to do will likely lead to disappointment. Instead, work with a good local real estate agent to understand the market. You’ll quickly learn after a few weeks on the open house circuit (and maybe a disappointment or two) that starting low may not get you anywhere.

Myth No. 3: A cash offer trumps all

There’s an assumption that a seller, considering two different offers, will always go with the cash offer because there’s less risk. As a result, many buyers who hear they’re competing with a cash offer assume they won’t get the home. They may not even make a formal offer. At the same time, many cash buyers assume that because they’re paying cash, they can make an offer below the asking price, and it will likely be accepted.

The reality: A savvy seller may be more tempted by a solid financed offer

Consider a seller with a home priced at $399,000. The seller receives two offers: One is a cash offer of $375,000. The other is an offer for the full asking price, with 25 percent down, a bank pre-approval letter and swift contingency periods.

A good buyer’s agent, upon learning their client is competing with a cash offer, will arm the seller with lots of data supporting their client’s finances, such as a credit report and verification of income or assets. The agent might even arrange a call between the seller and the buyer’s lender

I hope you find this information useful. I’m here to assist you with your South Florida real estate. Contact me at (305) 329-4929 or solovay.m@ewm.com.

Read more: http://www.foxbusiness.com/personal-finance/2013/04/01/dont-be-fooled-by-these-3-real-estate-myths/#ixzz2R3aPfAC1

Presenting Golden Pointe Townhomes at The Waterways

This 4 bedroom, 3 bath, waterfront residence has 2,180 square feet of living space plus a 1 car garage. This well maintained, 2 story property, has a private elevator installed by the current owner, a custom designed kitchen with granite counters, a formal dining room and hurricane shutters. The floor plan is unique and has 1 bedroom on the main level and 3 bedrooms on the second floor. The community offers 24 hour manned security gate and a heated swimming pool. Golden Pointe residents have access to the tennis courts and use of the Spa facilities at The Point for an annual fee of $1,983.

Property Tour: 3788 NE 209th Te, Aventura, FL  33180

To view a tour of this property just click on START TOUR below:

This is a rare opportunity to own a waterfront townhome in this upgraded community in Aventura. For more information on this or any other South Florida real estate information contact me at (305) 329-4929 or solovay.m@ewm.com.

Real Estate Tips For Home Buyers and Sellers

Barbara Corcoran, real estate mogul and founder of The Corcoran Group gives advice to future and current homeowners.

When you become a buyer or seller the most important thing you can do is learn your market. Talk to a savvy local agent, and don’t make assumptions based on what you think you know. Real estate is local and every market is different with its own customs. If you believe there are general rules for real estate strategy that apply everywhere, you’ll likely be fooled.

I’m available to assist you with all your South Florida real estate needs.  Contact me at (305) 329-4929 or solovay.m@ewm.com.

Real Estate Market Update – April 2013

Ron Shuffield, President of EWM Realty International gives us an update on the increasing prices of South Florida homes.  Click here to view the video.

Please contact me for all your South Florida real estate needs at (305) 329-4929 or solovay.m@ewm.com.

Low Inventory of Homes for Sale Plagues Many Markets

The low inventory of for-sale homes is creating a seller’s market throughout the country.

“Buyers and agents are literally waiting for the next house,” says Rick Turley, president of Coldwell Banker Residential Brokerage for the San Francisco Bay Area.

The supply of existing homes for sale reached nearly an eight-year low in January, according to the National Association of REALTORS. Nationwide, there is a 4.2-month supply of existing homes for sale.

A more balanced market with a six-month supply will occur when home prices rise another 20 percent, says John Burns, CEO of John Burns Real Estate Consulting. Such an increase would then lure sellers to match demand coming in from renters and investors, and the rise in prices will also lead to more home building, Burns says.

Still, a return to healthy inventory levels could be years off, some say. “Many home owners can’t afford to sell because they don’t have enough equity to put into buying another house — or would have to write a check to sell,” USA Today reports. “The supply of distressed houses for sale is thinning as the foreclosure crisis recedes, especially in some states. Home building, while improving, is still at low levels. And, after years of holding on, few home owners want to sell when prices are just coming off the bottom, REALTORS say.”

Source: “Home sellers are scarce as spring buyers stir,” USA Today (Feb. 26, 2013)

I hope this information is useful to you. Please contact me for all your South Florida real estate needs at (305) 329-4929 or solovay.m@ewm.com.

South Florida Residential Inventory Continues to Fall

Residential inventory in South Florida fell to 34,398 from 34,535 active listings for the week ending February 25, 2013. During the same period, pending sales increased to 23,565 from 23,013.

Active listings are properties where no current sale contract exists; pending sales are properties in which a contract for sale has been executed, but not yet closed. Listing brokers control the status of a property listing. The figures were compiled by Condo Vultures Realty using the South Florida Shared Multiple Listing Service.

I hope this information is useful to you. Please contact me for all your South Florida real estate needs at (305) 329-4929 or solovay.m@ewm.com.

Aventura Movie Night at Waterways Park

The City of Aventura is hosting Movie Night at Waterways Park, located at 3301 NE 213th St, on Saturday, March 2, 2013. Admission is free. Gates open at 6:00PM, and the movie “Hotel Transylvania,” which is rated PG, will start at 7:00PM. Bring lawn chairs and blankets.

Parking is located at Gulfstream Park which will be accessible from the NE 213th St entrance, and shuttle service will be provided to Waterways Park. Food trucks will be available.

For more information, contact the Community Services Department at (305) 466-8930 or Waterways Park at (305) 466-8008 or visit the City’s website at www.cityofaventura.com.

I hope this information is useful to you. Please contact me for all your South Florida real estate needs at (305) 329-4929 or solovay.m@ewm.com.

Portsview Condominium Market Update

PORTSVIEW

• Apt 408 – 3 BR 2 BA – Just Sold February 2013 – $343,000
• Apt 1112 – 2 BR 2 BA – For Rent – $1,700/month
• Apt 911 – 2 BR 2 BA – For Rent – $1,600/month

HARBORSIDE

• Apt 1104 – 2 BR 2 BA – Just Sold January 2013 – $310,000
• Apt 607 – 2 BR 2 BA – Just Rented January 2013 – $1,800/month

Looking to buy or sell?  Contact me for more information on South Florida real estate at (305) 329-4929 or solovay.m@ewm.com.

]]> http://whatsthepointofaventura.com/2013/02/10/portsview-condominium-market-update/feed/ 0 http://whatsthepointofaventura.com/2013/02/10/portsview-condominium-market-update/ http://feedproxy.google.com/~r/WhatsThePointOfAventura/~3/BO6km8DMS5Q/ http://whatsthepointofaventura.com/2013/02/08/home-prices-in-2012-best-year-on-year-gain-in-six-years/#comments Fri, 08 Feb 2013 16:02:51 +0000 Michael Solovay http://whatsthepointofaventura.com/?p=4683

Home Prices in 2012: Best Year-on-Year Gain in Six Years

Posted By susanne On February 7, 2013 @ 4:09 pm In Business Outlook,Consumer News and Advice, Finance and Economy, Real Estate Information, Real Estate Trends, Today’s Marketplace, Today’s Top Story

CoreLogic, a leading residential property information, analytics and services provider, recently released its December CoreLogic HPI report. Home prices nationwide, including distressed sales, increased on a year-over-year basis by 8.3 percent in December 2012 compared to December 2011. This change represents the biggest increase since May 2006 and the 10th consecutive monthly increase in home prices nationally. On a month-over-month basis, including distressed sales, home prices increased by 0.4 percent in December 2012 compared to November 2012. The HPI analysis shows that all but four states are experiencing year-over-year price gains.

Excluding distressed sales, home prices increased on a year-over-year basis by 7.5 percent in December 2012 compared to December 2011. On a month-over-month basis, excluding distressed sales, home prices increased 0.9 percent in December 2012 compared to November 2012. Distressed sales include short sales and real estate owned (REO) transactions.

The CoreLogic Pending HPI indicates that January 2013 home prices, including distressed sales, are expected to rise by 7.9 percent on a year-over-year basis from January 2012 and fall by 1 percent on a month-over-month basis from December 2012, reflecting a seasonal winter slowdown. Excluding distressed sales, January 2013 house prices are poised to rise 8.6 percent year over year from January 2012 and by 0.7 percent month over month from December 2012. The CoreLogic Pending HPI is a proprietary and exclusive metric that provides the most current indication of trends in home prices. It is based on Multiple Listing Service (MLS) data that measure price changes for the most recent month.

“December marked 10 consecutive months of year-over-year home price improvements, and the strongest growth since the height of the last housing boom more than six years ago,” says Mark Fleming, chief economist for CoreLogic. “We expect price growth to continue in January as our Pending HPI shows strong year-over-year appreciation.”

“We are heading into 2013 with home prices on the rebound,” said Anand Nallathambi, president and CEO of CoreLogic. “The upward trend in home prices in 2012 was broad based with 46 of 50 states registering gains for the year. All signals point to a continued improvement in the fundamentals underpinning the U.S. housing market recovery.”.

Highlights as of December 2012:

• Including distressed sales, the five states with the highest home price appreciation were: Arizona (+20.2 percent), Nevada (+15.3 percent), Idaho (+14.6 percent), California (+12.6 percent) and Hawaii (+12.5 percent).

• Including distressed sales, this month only four states posted home price depreciation: Delaware (-3.4 percent), Illinois (-2.7 percent), New Jersey (-0.9 percent) and Pennsylvania (-0.5 percent).

• Excluding distressed sales, the five states with the highest home price appreciation were: Arizona (+16.4 percent), Nevada (+14.7 percent), California (+12.8 percent), Hawaii (+11.7 percent) and North Dakota (+10.8 percent).

• Excluding distressed sales, this month only three states posted home price depreciation: Delaware (-1.9 percent), Alabama (-1.0 percent) and New Jersey (-0.5 percent).

• Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to December 2012) was -26.9 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -20.8 percent.

• The five states with the largest peak-to-current declines, including distressed transactions, were Nevada (-52.4 percent), Florida (-43.5 percent), Arizona (-39.8 percent), Michigan (-36.5 percent) and California (-35.4 percent).

• Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, only 16 are showing year-over-year declines in November, two fewer than in November.

For more information, visit www.corelogic.com.

I hope this information is useful to you. Please contact me for all your South Florida real estate needs at (305) 329-4929 or solovay.m@ewm.com.