Tuesday, August 07, 2018

Rolling Up July

After a slow start for residential real estate in Cocoa Beach and Cape Canaveral, the month of July finished with a bang, at least for condos.  The Cocoa Beach MLS is reporting 70 closed condo and townhouse units in the month as of this morning but only four single-family home sales. Seventy condo sales beats last July's 62 units but four single family home sales lags far behind July 2017's eighteen sales. Inventory of condos is slightly higher than last year with 220 existing units for sale and single family homes offered is almost the same, 62 compared to 64 in July 2017.

I don't have a good guess for the drastic slowdown in home sales other than price creep. Only 17 of the 62 homes for sale are priced below a half million dollars with a mere twelve asking less than $400,000. The priciest home sale in July was $420,000.  As prices inflate, the audience shrinks.

The pricing distribution of the condo inventory is considerably more favorable with two thirds of the units offered priced at or below $400,000 with 95 of those asking less than $300,000. Over half of the units that sold in July were on the market for less than 60 days with twenty seven of those sold in less than a month. About half of the units for sale have been on the market for 90 days or more. Seller optimism remains high. Those that price close to fair market value sell fast absent some unusual circumstance. About half the July condo buyers used a mortgage and the other half paid cash.

Happy hunting to those hoping to purchase and, as always, be prepared to move quickly when an attractive target has been acquired. You have competition looking for the same thing.

"I don't mind you thinking I'm stupid, but don't talk to me like I'm stupid." __Harlan Ellison

Wednesday, August 01, 2018

Real Estate Myths Examined

I'm sure I've missed a few but the memes listed below are the most common ones that I hear from people outside the industry about real estate agents.

Phony multiple offers. This one will not die. I dread hearing the frightening phrase, "We have multiple offers. Bring your best and highest offer." The most common response from a buyer is "Do you think there really is another offer?" The second most common response is, "Withdraw my offer. I'm not playing that game." It is this second response that makes phony offers a risky strategy for a listing agent. She stands the chance of chasing away a legitimate buyer by fabricating a phantom offer. I have seen both buyers offering on the same property withdraw when asked for best and highest. For this reason, I never doubt the existence of another offer even if the property has been on the market for months. It's just too risky. This leads to the next myth;

Agents on both sides push for higher selling price because they'll get a higher commission check. Think about this. No sane agent would jeopardize a sale in hopes of getting a couple percent on an extra few thousand dollars. Parties to a real estate transaction can rest assured that the agents want the deal to close, otherwise they get nothing for their efforts.

Agents not showing low commission listings. This is probably at least somewhat true. There is a local broker who often (possibly always) pays out less to the buyer's broker than he keeps for himself unlike the majority of listings which share the commission equally between listing and selling (buyer's) broker. I don't exclude his listings from showing lists but I resent the fact that he cheats buyers' brokers while being so difficult to work with. I imagine some other buyer's agents will gladly skip his listings should the schedule necessitate excising some properties from their list. Sellers, make sure you know how the commission you agree to pay your listing broker is being shared. I suspect some sellers don't realize that their broker is offering an unequal split possibly affecting the exposure their property gets.

Open houses only benefit agents. Absolutely not true. I have sold several properties at open houses and know of multiple other sales that happened because of an open house. Yes, a good agent will take advantage of an open house to get prospects who find the open property not suited for them but who are looking to purchase something in the area. That doesn't mean that the next person through the door will also find it unsuitable. Sellers, remember. You're only looking for one buyer. In fact you can only accommodate one buyer. Side note; don't worry about nosy neighbors coming over just to check out your stuff and get free food. They may very well have a friend or relative moving to the area who'd like to live nearby. They aren't hurting you and may be the source of the eventual buyer.

Listing agents play games with listings to increase their income. This one is at least sometimes true. It can be as innocuous as legally delaying entering a listing into the MLS in hopes of finding a buyer first or sharing an upcoming listing within the agent's brokerage in hopes that both sides of the commission will stay in the listing office. Or, it can be unethical and/or illegal as in the recent case in Miami where a prominent agent team was discovered to have been entering incorrect neighborhoods for their listings to keep other agents from finding and soliciting the listing upon expiration. This one was definitely not in the clients' best interest if other agents couldn't find the listings. It devolved into something far worse than the initial MLS trickery and now one broker finds himself facing a possible 30 years in prison.

And now for a couple of items of good news: Cocoa Beach's Freedom Seven Elementary School has once again been named the number one elementary school in Florida by the Florida Department of Education.

NOAA Fisheries has announced a brief red snapper season in Atlantic federal waters for recreational anglers. We will be allowed to keep one fish per person per day of at least 20" in length for two weekends only (Friday, Saturday, Sunday) on the following days: August 10, 11, 12 and 17, 18, and 19, 2018. Good luck everyone and hope your one fish is a sow (over 20 lbs.) although I'll settle for a top of category Cadillac (10 to 20 lbs.).

I see the bad moon arising
I see trouble on the way
I see earthquakes and lightnin'
I see bad times today

___________________Creedence Clearwater Rivival