Top 5 Expectations for SW Florida Real Estate Investments, Naples, Ft. Myers, Bonita Springs!

Top 5 Expectations for SW Florida Real Estate Investments, Naples, Ft. Myers, Bonita Springs! If you go looking for insights from successful SW Florida real estate investors, depending on which areas they concentrate on, you could come up with a variety of takes. Despite the distinct differences that separate the commercial and residential investment spheres, there are some time-worn truisms about the real life experience that would have most investors nodding their heads—

1. Expect to work at it. The myth of buying real estate, watching it appreciate, then just cashing in is a two-dimensional expectation. A typical SW Florida real estate investment has to be discovered, investigated, negotiated, cared for, cared for some more—and sometimes sold—for it to ring up the profits that make real estate investing so lucrative. The best investors relish doing all of it.
2. Expect to interact with a wide range of people. Math skills are important, but people skills are up there, too. Just about anyone can do the arithmetic that produces accurate cash flow projections, but being able to network with real estate professionals and lenders—and manage close working relationships with trades people—are also vital for sustained success.
3. Anticipate changing conditions. Economic conditions are always in flux, so Texas and SW Florida market conditions are always on the move. Last decade’s real estate investment strategies don’t guarantee success today—and certainly not tomorrow. Anticipating and planning for changing conditions is work that can pay real dividends.
4. Expect losses. Any investment—including real estate investments in SW Florida —involve some degree of risk. Serious real estate investors are those who profit the most from multiple investments over time. Necessarily, they expect that some projects won’t pan out as expected. Not expecting that to be true would be a rookie mistake.

This fifth one is ancient: it sounds like something Ben Franklin could have come up with:

5. A fast nickel is better than a slow dime. Strangely enough, this truism can be misinterpreted. One commentator thinks it means “owning real estate is easy; getting paid is tricky.” I think its core meaning is that knowing just when to sell is a terrific real estate investment skill.

Top 5 Expectations for SW Florida Real Estate Investments, Naples, Ft. Myers, Bonita Springs! In fact, you could say that prioritizing when to sell is what distinguishes real estate investors from most of the rest of us—real estate consumers who are contented SW Florida homeowners. In my profession, I get to facilitate winning transactions for investors and real estate civilians alike. I hope you’ll give me a call for all your own real estate dealings!

SW Florida Real Estate Watchers Read National Tea Leaves, Naples, Isles Of Capri, Estero!

 SW Florida Real Estate Watchers Read National Tea Leaves, Naples, Isles Of Capri, Estero! If you try to predict what SW Florida real estate activity is likely to be based on only our local activity, you soon find what causes statisticians to turn up their noses: the sample size is simply too small to project reliable trends. That’s why serious SW Florida observers look to the incoming real estate activity stats from Texas and the nation as a whole: and the latest numbers gave them at least two interesting clues.

At the start of the month, the National Association of Realtors^® weighed in with a “sizable jump” in some of the pending home sales numbers. Pending home sales are especially interesting in a predictive sense because they are forward-looking indicators—they measure contract signings that will be finalized in coming weeks or months. The NAR’s Pending Home Sales Index for July notched the second highest reading-9065-in over a decade…exceeded only by April’s reading.

The NAR’s economists continued to fret about the affordability of the listings currently on the market, reflected in the continuing difficulty first-time homebuyers are having being able to find affordable homes in most parts of the country. The “robust demand for single-family starter homes” is as high as it is because many young buyers can’t find what they are looking for at a price point that’s affordable.

Not all real estate news is as relevant to SW Florida home or apartment shoppers, though. Last Friday’s news from the New York Times is a good example. It ran the story of one young musician whose quest for an affordable apartment led him to his current digs, which is a closet. Actually, according to the news item, it’s more like a “crawlspace” at 9 feet by 4½ feet. Affordable rent? Yes, for today’s Manhattan—just $450/month.

The second, more relevant finding came from the researchers at CoreLogic, who dug into the national statistics with enough gusto to emerge with a seldom-mentioned measure: price stability. SW Florida real estate watchers often read about residential real estate volatility—the gyrations sales and prices go through when financial or political turmoil causes notable fluctuations. Real estate price stability, however, since it’s the exact opposite, is seldom mentioned (probably because it sounds like nothing is happening, which journalists don’t like to write about).

But the latest finding is news. As CoreLogic’s Sam Khater writes about the year-over-year change in monthly home prices, “the last narrow band of years” that exhibited such stable home prices came “between 1994 and 1997.” The good news is that this period presaged a housing market that was so healthy it helped anchor the whole economy—probably a key reason why 2001’s economic downturn became the mildest post-war recession.

SW Florida Real Estate Watchers Read National Tea Leaves, Naples, Isles Of Capri, Estero! Here in SW Florida, the real estate scene continues to reward home shoppers with a host of listings that offer good value—especially with mortgage interest rates still hovering at bargain basement levels. If you decide that now is the right time to find the right house at the right price, it’s also the right time to call me!

Just a Few Basics Make an Intro to SW Florida Real Estate, Naples, Cape Coral, Bonita Springs!

 Just a Few Basics Make an Intro to SW Florida Real Estate, Naples, Cape Coral, Bonita Springs! As every college freshman will tell you, it’s those “Introductory” classes that can wind up being the most time-consuming. Since they cover a lot of territory dealing with subjects that are new to you, they can be the hardest to keep up with. If SW Florida real estate had its own college department, its “Introduction to” class might be a lot easier than some of the other departments’—but there would still be a few basics some of the freshmen might need to master before proceeding much further.

When it comes to SW Florida real estate, the equivalent of the freshmen are the first time home buyers. They don’t need a whole class to be prepared to dive in, but they should be aware of some basics. Some financial preparation comes first:

• For openers, find out what your credit report says. If there are mistakes, it takes time to get them corrected, so this is Job One.
• Then, before even starting to discover what properties are available, you should sit down and work out how much you can afford. That will point you toward the portion of SW Florida’s real estate offerings you should spend your time and effort examining. If you do it the other way around, you are too likely to waste time visiting houses that would put too much strain on your budget.
• There are many different kinds of home loans—with differing cost and cash flow implications. The difference between variable and fixed interest rate loans and the difference between down payment percentages will have major impacts on your monthly family operating budget, and what you can comfortably afford. An important part of being an informed buyer is making sure you know what loan types are available—and the financial implications of each.

Just a Few Basics Make an Intro to SW Florida Real Estate, Naples, Cape Coral, Bonita Springs! Then comes the search—the house hunt. If you haven’t already made contact with the SW Florida real estate agent who will help with your search, it’s time to do so. Most of the basics are pretty much common sensical:

• Knowing that sellers pay the Realtor^® fee, locate a licensed SW Florida real estate agent with a good reputation, experience in the area, and with whom you can communicate easily: one who “speaks your language.” (Hint: call me!)
• Instead of planning to just go out to “see what’s out there,” first get as clear a picture as possible of what features you know you require. Make a list with both “wants” and “must haves”—and stick with it. Remember that allowing the “wants” to become more important than the “must haves” will usually prove to be a bad idea.
• When you make an offer on the house you’ve been looking for, be sure the contract specifies that you can request repairs or back out of the deal based on the inspection results…and be sure to have that inspection!

If I’m your agent, I’ll be sure to remind you!

Homes for Sale in SW Florida Can Exploit the “Food Connection”!

Homes for Sale in SW Florida Can Exploit the “Food Connection”! It’s interesting to look into how many ways the universe of food —be it restaurants, markets, cooking, gardening or eating—intersects with the world of real estate. The connections are many and important. That’s true from the moment a future SW Florida homeowner begins to look into the current crop of SW Florida homes for sale.

We commonly think about residential real estate predominantly in terms of shelter. The listed homes for sale are vying to become the roof over our head; the place where the family will be blissfully protected from the elements. But since it will also be the place where we prepare our meals, store the groceries, and experience the holiday celebrations and feasts that will be remembered forever as key moments in our family’s life together.

Food is central to all these things—it’s why homes for sale that can claim superior kitchens have a clear advantage over those with cramped layouts or dated appliances. The popularity of formal dining rooms may be waning, but the importance of the kitchen has never been more pronounced. Interestingly, large, showy kitchens don’t always get the highest marks from experienced family head chefs. For some, a more compact layout that creates an efficient “work triangle” (the imaginary line connecting cook top, sink, and refrigerator) can win favor by saving steps—and time. In any case, most Americans think of the kitchen as the house’s nerve center around which family life revolves. And in summertime, when the action moves outside, an extra advantage goes to the homes for sale that have patios or decks that look ideal for outdoor grilling.

It is also true that for even the most dedicated amateur chefs, hectic workday schedules can mean that cookery of any kind is forced into becoming a strictly weekend pursuit. For those whose professional lives make that an unavoidable reality, a property’s proximity to quality SW Florida dining outlets can be a major selling point. One way alert homeowners take advantage of that is by preparing a list of their favorite local eateries—or even by prominently displaying a collection of current take-out menus from nearby restaurants.

Homes for Sale in SW Florida Can Exploit the “Food Connection”! When you think about it, it makes good sense to take a look at the ways homes for sale in SW Florida can make the food connection part of their marketing approach. Call me for a rundown of some of the other lifestyle elements that we can use to demonstrate to prospective buyers how readily your property can fit into their vision of what a treasured home should be.

3 Benchmarks for SW Florida Real Estate Agent Dowsing

3 Benchmarks for SW Florida Real Estate Agent Dowsing. Whenever a buyer or seller is set to enter the market, they find themselves faced with the task of identifying the SW Florida real estate agent who will serve them best. There are many of us to choose from—and not a lot guidance on how to proceed.

Maybe there should be something like a Real Estate Agent Dowser. You remember dowsers—the folks who divine where to drill for ground water. Most do it by walking around, holding a dowsing rod (usually Y-shaped). When it shivers or points down, BINGO! That’s where the water is. Pay the fee and call the drilling company. Now, it’s said that there is absolutely no scientific evidence that dowsing works. Yet there are plenty of folks who live out in the country who will tell you that, of course it’s hard to believe, but still… That’s why dowsing is a real occupation. Just ask any one of the American Society of Dowsers’ 3,000 members…

Here in SW Florida, when you set out to find a real estate agent to help with buying or selling a home, there is no American Society of Real Estate Agent Dowsers to help. Fortunately, SW Florida’s real estate agents aren’t as hard to find as underground water pockets—but even so, detecting which of us is best suited to be your partner is no “gimme.”

 One good solution is to interview the candidates with an eye toward finding out how they stack up against three practical benchmarks:

• Selling Skill. A great real estate agent is a great salesperson—easy to talk to, sympathetic to your needs—genuinely likeable. When you are interviewing potential agents, offer an objection or two to test how seamlessly the conversation proceeds. The most valuable sales representatives are those who can adapt to resistance without batting an eye, or letting negativity prevail.
• Current knowledge and experience. Being able to provide accurate and fact-based market information and analysis is an important indicator— as is having successfully performed in a variety of SW Florida real estate transactions.
• Negotiation Skill. When all else points to a good fit, discuss the terms that candidate proposes between you. Your chosen real estate agent will be negotiating on your behalf—so your agent’s ability to present hard business matters in a relaxed and amenable way will serve you well.

3 Benchmarks for SW Florida Real Estate Agent Dowsing. When you become your own real estate agent dowser, you won’t need a witch hazel stick to point the way. A few thoughtful interviews will do the trick—and I hope you’ll be sure to give me a call as soon as you go dowsing!

For SW Florida Readers: The Top 10 (of Top 10 Real Estate Lists)!

For SW Florida Readers: The Top 10 (of Top 10 Real Estate Lists)! Why it is that we’re drawn to “Top 10” lists in general is a matter we can leave to the psychologists. Suffice it to say that the lists are a staple on the super market tabloids and they’re all over the web. I admit they get more than their share of my own attention, even when my curiosity about a list’s subject matter is negligible. It’s probably because they’re quick to skim through and agree or disagree with…

Since they are so pervasive, it occurred to me that there might be something to learn if we could determine which ones that deal with real estate topics get the most attention. SW Florida real estate didn’t have its own SW Florida -focused Top 10 real estate lists—but for the whole country, I guessed there could be hundreds (there were).

There turned out to be a lot of ads mixed in with the ones that were legitimate; but after 15 or so minutes of deep internet research, here’s what registers as—

The Top 10 Top 10 Real Estate Lists

(Out of deference to the now-retired David Letterman, they’re presented in reverse order):

#10.     Top 10 Choices for a Rental Apartment with Pool in NYC

#9.       Top 10 Real Estate Terms Everybody Should Know

#8.       Another Top-10 List—Best (and Worst) Cities for Real Residential Estate [sic]

#7.       Top 10 Real Estate Traps (fyi, Number 10 is ‘Bad Laws’)

#6.       TopTenRealEstateDeals (it’s actually a website, so no spaces between words)

#5.       Top 10 Real Estate Trends

#4.       Top 10 Real Estate Myths

#3.       Top 10 Real Estate Markets to Watch in 2016

#2.       Various Top 10 Real Estate Lists [honest, that’s the name of a list!]

-drumroll, please:

#1.       Top 10 Celebrity & Spectacular Homes

Number 1 won’t come as a surprise to many here in SW Florida —who can resist an invitation to take a peek at spectacular celebrity homes?

For SW Florida Readers: The Top 10 (of Top 10 Real Estate Lists)! Closer to our home, we have some pretty spectacular properties on the market right now (you can find them here on my site). Interested? Give me a call for a closer look!

SW Florida House Hunters Find Bargains in ‘Reduced’ Listings

SW Florida House Hunters Find Bargains in ‘Reduced’ Listings. When you are skimming through the SW Florida listings, now and then you come across attention-grabbing terms like “one of a kind” or “extremely motivated seller.” “Reduced” is another one.

After all, who doesn’t like a bargain? Especially when that bargain is associated with a major commitment, who wouldn’t think it’s worth looking into? Today’s listings may no longer be saturated with short sales, foreclosures, and scores of listings reduced by enormous percentages, but patient SW Florida  house hunters can still strike pay dirt if they are diligent and methodical. Nevertheless, there are some tried-and-true cautions that need to be observed to ensure that the “penny-wise, pound foolish” saying doesn’t wind up describing the result.

 Most of what is being written on the subject of real estate bargain hunting falls into the common sense category—for instance

• Low-balling the offer seldom works. The hope that you can create a bargain just by making a shot-in-the-dark low-ball offer is much more likely to result in a resentful homeowner than a successful deal. As in most business transactions, success is more likely to develop when both sides understand the motives and goals of the other. Since any seller whose SW Florida property is on the market is assuredly quite well aware of the likely value of his offering, unless the seller is in desperate need of a deal, this tactic is counterproductive (and if the seller does really need to move on, odds are the property has already been reduced to reflect that).
• ‘As-Is’ also means ‘Heads-Up!’ A home that’s been “reduced” simply means the market is suggesting that an asking price correction is needed. When “as-is” is appended, it could also indicate that the place probably needs work—maintenance work (and work from potential buyers to discover how costly that maintenance is likely to be). In some cases—when a home has been perfectly maintained—it could mean that some features that are expected in today’s SW Florida homes are missing. In any case, “as-is” means “heads-up.”

There is one more caution that isn’t usually written about, but which can be easy to overlook when an epic bargain looks to be within reach. Since the process of buying a house takes some time to accomplish, it’s one that often occurs before it’s too late, anyway—namely, it’s not a bargain if it’s not what you really want! It can happen that the asking price is so affordable for a home that has more (or better) features than you thought you could manage, that you are in danger of being charmed into making an offer on something that’s not a very good fit. When you discover a property that’s been reduced to bring it within your price range, it still needs to fit your family’s most important requirements. An Olympic-sized swimming pool can add an exciting and unexpected dimension, but if the place is one bedroom short, in the long run, it might not be such a bargain, after all.

SW Florida House Hunters Find Bargains in ‘Reduced’ Listings. This spring, many sensational offerings are out there for SW Florida home hunters. Give me a call when you are ready to take a tour of the ones that meet your requirements!  

For SW Florida Homeowners, Tax Deductions Add Major

For SW Florida Homeowners, Tax Deductions Add Major. Sure, even the idea of home ownership is appealing for all of the traditional emotional and lifestyle reasons. Having proprietary control over your family’s center of operations is a goal for most SW Florida residents—just as most of us would consider it a necessary evil if professional obligations make frequent moves unavoidable. Travel may be broadening, but most rolling stones (no matter how moss-less) eventually hanker to settle down.

But aside from the lifestyle aspects, another major advantage to settling down and owning your home gets its turn in the limelight at least once a year. This advantage is anything other than abstract. The time of year is April 15, when the concrete financial benefits are tallied up in the very welcome form of SW Florida homeowner tax deductions.

Tax advice is not my specialty—for that, you should always defer to your qualified financial advisor, whose full-time job it is to do all that’s humanly possible to keep track of the ever-changing Federal Tax Code. But even non-specialists know that some of the most beneficial provisions in the Code’s 75,000 pages do relate to the range of significant homeowner tax deductions.

In the National Association of Realtors’ periodical houselogic, writer Dona DeZube recently surveyed some of the major ones—tax tips that deserve to be investigated by any SW Florida homeowner who will soon be charting out their own mid-April strategies.

The list was headed by the most obvious one, the mortgage interest deduction, which applies to interest paid on a loan secured by the place you live in. That doesn’t have to be a house—it could also be a trailer or a boat. As long as you sleep and cook in it, if it also has toilet facilities, interest paid for its purchase falls into the category.

Likewise, there is the prepaid interest deduction. Prepaid interest (aka “points”) you pay in when you take out a mortgage or refi can usually be deducted in the year it is originated. An exception is when you refinance and use the proceeds for other than home improvements, in which case the deduction is spread out over the life of the loan. If you refinance again, it gets a little more complicated (may be time to ring up that qualified advisor again).

Another hefty deduction is the one for SW Florida property taxes you have paid. If your mortgage lender required you to insure repayment through private mortgage insurance (PMI), if your income is less than a set amount, the premiums may be fully deductible (otherwise, a reduced deduction will apply). Even more complicated rules apply to government insurance premiums (qualified advisor time).

More homeowner tax deductions can be applicable, too, with varying degrees of complication—particularly those which relate to SW Florida vacation homes. And there are also tax credits for things like energy-efficient home systems.

For SW Florida Homeowners, Tax Deductions Add Major. The bottom line deductibility of many aspects of home ownership can be a major reason why April 15 gets many SW Florida renters to do some serious examination of their residential futures. I’m here to help with any of your own real estate plans!