Archive for the ‘Homes For Sale’ Category

Shadow Inventory Is Part Of The New Normal

March 3rd, 2011

As the real estate market continues to try and find a bottom, a phrase we often hear is ‘shadow inventory’. So exactly what is it and how will it affect you?

In a normal real estate market, there are some benchmarks people use to determine the health of that particular market. For example, in a country club community or a particular neighborhood, there is a rule of thumb that says if approximately 5% of the homes are on the market, that is normal. Another rule of thumb says that if you divide the number of homes on the market by the rate at which they sell each month (called the absorption rate), you will find out how many months of inventory are out there. 6 months is considered normal.

In this market, we have a new phrase, the ‘shadow inventory’. This is the number of people who are in trouble on their mortgage payments and may slip into foreclosure, or another way of looking at it is what homes do banks own or may own that might come on the market?

There might be several reasons why homes would join the shadow inventory. A person may lose their job, they may have refinanced and are now underwater on their home, or their home may have decreased in value a significant amount since they bought it and they are considering walking away. This is called a strategic default.

Corporations and developers walk away from loans all the time, but in the personal home arena there is a stigma attached, although the strategic default is gaining momentum as a means of coping with the changing economic environment.

So the phrase ‘shadow inventory’ was spawned by the bursting of the real estate bubble and now joins the language as part of the ‘new normal’.

Can You Be Objective??? | Part 2

March 1st, 2011

In my last post I stressed the use of an objective, third-party professional when going through the emotional stress of selling your home in this turbulent market. Now I want to reinforce the point with a couple of examples ‘ripped from the headlines’, as TV used to describe the Law & Order show.

I recently was at an event at the local Board of Realtors where a local real estate attorney and a local home inspector were part of the panel of experts. Both of these men had years of experience and great reputations. Eventually, the conversation made its way to the use of professionals to handle matters objectively.

I was surprised when the attorney, who owns property in Florida and New York and is licensed to practice in both states, said that whenever he buys or sells, he hires a lawyer. I believe the phrase he used was that he “sought local counsel”. Why? Simple, he can’t be as objective as a third party.

Then the home inspector joined in by saying he, too, had employed another inspector to go through his house when he sold it? Why? Simple, he can’t be as objective as a third party.

So if these professionals are hiring someone else to do something for them where an objective third party opinion is critical, doesn’t it make sense for you to do likewise? Can you be objective???

The use of a third party can remove all of the emotion which clouds your thinking and reasoning. Selling a home is a highly-charged, emotional experience where large sums of money are involved, so naturally tensions run high. The use of a professional real estate agent can temper the stress and help you get your home sold quickly and smoothly.

Can You Be Objective??? | Part 1

February 27th, 2011

When preparing to sell something, the use of an objective and informed third party is always the best idea. The reasons are simple. First, there is no emotional attachment to the item(s) which can cloud your perspective on the true value. Second, a seasoned professional deals in these items regularly and sees them only in terms of their relationship to other similar items currently on the market.

Now, let’s talk real estate. Can you be objective???

Selling a house can be a difficult event. If the move is involuntary (like getting transferred with your company), there is the “But I don’t want to move!” emotion. You will have to leave all your familiar surroundings, friends, and historical reference points and adapt to another town. Similar to a child leaving home, you have so many emotional attachments it’s hard to view the situation objectively. If it’s a voluntary move, you may need all the financial freedom as quickly as possible to expedite your relocation. This is why you need a professional real estate agent.

I often say that picking an agent to work with is just like picking a doctor. In addition to professional prowess, bedside manner is critical during emotionally charged events. My dad uses a medical specialist who has all the pedigrees in the world but fails to exhibit the needed empathy a patient needs. And you need an agent who will “give it to me straight”.

So when selling your home, the idea that you built those really nice shelves in the garage or you installed Berber carpet in the guest room is inconsequential. And overpricing is something to be avoided at all costs. So use a professional real estate agent.

A professional sees homes for sale all the time and is not emotionally attached to them. They can see your home for exactly what it is…a box of blocks with a roof, and maybe a view. And let them help you get the home priced correctly from the start when most showing activity occurs. Cut the emotional strings and your home selling experience will be much smoother and stress free.

40 Cayman Place | The Island at PGA National | Palm Beach Gardens Homes For Sale

September 17th, 2010

Wonderful gracious home located in the exclusive The Island at PGA National. This 4BR/3BA home has been immaculately upgraded throughout. Step into the foyer and find yourself in an elegant and spacious home with spectacular preserve views from every room. The open kitchen has beautiful custom wood cabinets with a unique glass-tile backspash, granite counters, and stainless appliances. This home has both a formal dining area and a convenient breakfast nook for more casual dining. Volume ceilings and beautiful 18″ tile throughout give the home an open feel. The split floorplan gives the master bedroom lots of privacy and takes advantage of the wonderful pool and preserve pools. The master has large walk-in closets and the bathroom has been updated with custom cabinets and granite, along with a Roman tub. The spacious screened patio is perfect for entertaining South Florida style, with a large sparkling pool and custom coral-stone fountain feature, creating an easygoing atmosphere for your guests.

8412 Native Dancer Road E | Steeplechase | Palm Beach Gardens Homes For Sale

September 16th, 2010

Presented by Jeff Lichtenstein…..Magnificent 6BR stately home with recreation room & den on hard-to-find 1-acre grounds. Situated on a tranquil and desirable choice locale within Steeplechase, this 2-story CBS constructed home has a beautiful brick exterior. True hardwood floors, soaring ceilings, and unique architectural design give a warm and inviting feel. The kitchen is spacious with a center cook Island. The dining room is massive in size and an arched entry lends drama. The family room is oversized with a built-in entertainment center and French doors leading to the lanai. Unwind in the master suite with volume ceilings and quadruple high windows plus exercise loft. 4 upstairs bedrooms and a huge recreation room are perfect for social gatherings and family fun. Enjoy Florida outdoor living at its best with a 93×50 brick paver patio and pool area.