What are you advising clients to do in this market?

By
Real Estate Agent with Florida Future Realty, Inc. BK3071625

I met with a very nice man a few months ago & we discussed a few homes he was having built in Cape Coral. He has different partners on each of these homes & we discussed in detail the current market situation. When we originally met we went over my marketing plan, track record & suggestions. He liked what I had to say & asked me to keep in touch.

So over the past few months I have sent him e-mails with comparable properties for sell, sold & pending sale. We have spoken a few times in that timeframe as well.

Last week he called me into a conference call with himself & 2 other vested partners. They asked me lots of questions about the market, when it will turn around, etc etc. While I always preface or close all conversations with something like "I don't have a crystal ball" I do have my own opinion.

My opinion is not carved in stone. With additional market changes I change my views as well.

I do think that now is an excellent time to buy and as I've stated before I do see the volume of sales picking up. I haven't experienced the prices going back up yet & I'm not for sure when that will happen. I have to believe that we are at, or very near, the bottom of our lowest low. Why? Because where prices are now MAKE SENSE. The past year or so they didn't make sense. The values were going up so quickly for no good reason, other than investors speculating for huge profits.

Yes, there is still major growth in Cape Coral. People are definitely moving here. Shopping, restaurants & other conveniences are coming in strong. New schools are opening, our median age is decreasing.....and yet you can buy a gulf access home for under $400,000 today when last year you couldn't even touch even an older gulf access home for under $500,000 anywhere in the Cape. Youcan buy a brand new 3/2 CBS home in the NE Cape Coral area for about $215-220K, last year it would have cost about $265-270K. No wonder everyone was complaining that there was no affordable housing!

Are you following me here? Could the prices go down more? Maybe a little...but is now a great time to buy? YES, Why? In case you missed it, you haven't been able to negotiate prices this low in at least a year. Sellers understand this market, increased inventory, less buyers & are willing to negotiate.

Why would you wait until the market 'picks back up' to buy? So you can outbid other buyers? Fight over the decreased inventory or maybe you want to deal with a FIRM priced seller....Not me. And that's what I want my clients to know.

So anyway, back to my story, I am going to list one of those homes this week. I am excited about it. These investors are unfortunately going to lose some money on these but they have to sell & they understand the market & are going to work with a buyer. I am going to help them get the most out of the property in this market.

The seller said he spoke with another agent who basically told him all the reasons why she didn't like the house, the area, Cape Coral, etc. One of his partners wants to go with her. I'm not sure why. Wouldn't you rather be working with someone who believes in your property, has nice things to say about it & will work hard to sell it? I agree you have to be honest & let people know the truth but if you honestly think the house/area is so bad why even offer to list the property? Not sure.

By the way, these homes have many upgrades, are 4 bedrooms, 3 baths with a large inground pool and of course, brand new.....I'm sure I'll post more once I have it listed!

Final Question: What are you telling your buyers & sellers? Are you helping to facilitate transactions that are a win/win or are you prohibiting sales because of your ego?

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Karen Hurst
RICOASTALLIVING.COM - Warwick, RI
Rhode Island Waterfront!

Susan,

I think that answer will depend on the location. As for me, I am pretty much saying the same thing as you are. Actually, I just used that phrase today. "I'm not psychic, but my opinion is:", and my opinion is home prices are to continue sliding for the next few months, around my area. There will be a pick up in the spring, as usual, but next summer will really tell us what is going on.

I have seen a pick up of sold houses this month, after a lot of price reductions. The buyers are out there, waiting, just like us.

Oct 24, 2006 01:41 PM #1
Rainmaker
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Dave Rosenmarkle
Highland Realty - Arlington, VA
32 years of providing fully satisfying service!

Hi Susan

I think there is pent-up demand and folks who are paying higher rent than they did last year. As long as interest rates don't go wild, I believe the re-sale market is going to get in get no later than March. So, like you, I am suggesting they look at earlier opportunities or go with the herd and, maybe, pay more. 

Oct 27, 2006 02:25 AM #2
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Rainmaker
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Susan Milner

Cape Coral Real Estate Broker, FloridaFutureAgents
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