And so another hurricane season is upon us.

Like tax season, we are now blessed with hurricane season. I am writing this post to help all those new to our Jacksonville area understand that while we have been blessed in years past and spared major storms, we cannot be guaranteed that we will escape storms in the coming years. So with that, I am here to discuss some helpful sites if and when we have a storm on Florida's First Coast.

National Hurricane Preparedness Week is intended to raise our general awareness of how important it is to be fully prepared, should a hurricane hit. Although the most recent hurricane seasons here in Jacksonville have been fairly mild, it’s always smart to be prepared, to devise a plan, and to assemble the necessary supplies in case of an emergency. You don’t want to be that last-minute person trying to stock up on water and supplies, only to find that all the shelves are empty. To help you prepare, Florida’s 9-day sales-tax holiday for hurricane preparedness supplies kicks off today, Saturday, May 31, and runs through Sunday, June 8. Visit the Florida Department of Revenue for a complete list of tax-exempt items. In case a hurricane threatens to strike in our area, check out these local resources for helpful information:

WJXT’s Hurricane Tracker App: This interactive tracking app gives you up-to-date info and alerts.
WJXT’s Hurricane 2014 Survival Guide: This guide includes all the info you need to prepare for a storm, including a supply and first aid kit checklist, tips from the Red Cross, evacuation routes, and more!
Duval County Emergency Management’s Jax Ready Emergency Survival Guide and Jax Ready’s Facebook page gives news and updates, and you can download the Jax Ready App.

Other Resources:

• NOAA Preparedness Guide

• Ready: resources for kids and parents to be prepared in case of a disaster. It includes games for kids and teaches parents to help children cope during and after a disaster.

• Young Meteorologist Program: This one is fun for the kids–Owlie takes them on a “Severe Weather Preparedness Adventure” and upon completion of the game, they will earn a Young Meteorologist Certificate.

Being ready when a storm hits is so important. You need to make sure that you have enough water, batteries and food for many days as the authorities may not be able to get to you with so many affected. Plan now and have your water and supplies ready. Add a jug of water each time at the store, add a few more batteries, make sure the flashlights and candles are within reach. Make sure you have an evacuation plan as well as a solution for elderly with you as well as pets. Many shelters will not take in pets, so plan accordingly ahead of time. Make a list of hotels and before a major storm is to hit, make sure you can get to a hotel if necessary.

#LizBobeck

What do Realtors Spend money on to find you Mr/Mrs Buyer or Seller?

From an Inman News Report released this week, I thought it was interesting to share with my clients, friends and colleagues. Most clients think Realtors are lazy and not needed. What do they need their 3% for, when I can do all the work myself and save the commission and headache. I think its only going to get worse with Zillow, Trulia and Realtor flashing red lights at consumers saying they should work with them, instead of a broker/agent. Well, enjoy:


The National Association of Realtors’ 2014 Home Buyer and Seller Generational Trends report is packed with must-have knowledge for any real estate professional who wants to generate the best return on his marketing dollar. Where should you be spending your money?

Are you spending thousands of dollars each year on search engine optimization, Facebook ads or other types of Internet advertising? How much do you spend each year on direct mailing, newspaper ads, calendars and magnets?

If you are spending heavily in these areas, you may seriously want to reconsider whether the return justifies the costs. In fact, you may be wasting valuable marketing dollars that would be better spent elsewhere.

Surprising findings: Where do sellers find their listing agents?

Because listings are in short supply, agents are being much more aggressive about advertising. According to the NAR report, however, many agents are spending their marketing dollars in the wrong places.

Consumers and agents both agree that having a Web presence is absolutely necessary. With all the millions of real estate dollars being spent in this area, however, did you know that the percentages of sellers who found their listing agent from any Internet site in this survey was equal to the same percentage of sellers who found their listing agent at an open house or from a yard sign? (Only 4 percent!)

With all the noise around prospecting using websites, social media and other online resources, the one factor that really makes the difference is a referral from a trusted resource or face-to-face contact."
Putting it a little differently, a yard sign coupled with an open house generated twice as many closed seller transactions compared to all categories of Internet websites (8 percent vs. 4 percent).

Moreover, you were just as likely to receive a referral from a relocation company or from another real estate agent or broker as you were to have a seller find you on an Internet website.

Ever-shrinking returns

Search engines, newspaper ads, Yellow Pages or home book ads accounted for less than 1 percent each of all closed seller leads. Mobile or tablet applications, direct mail pieces (newsletters, fliers, postcards), and “advertising specialty (calendars, magnets, etc.)” all accounted for less than 1 percent of the closed seller leads reported in this survey as well.

Perhaps the most startling statistic was that floor duty (“Walked into or called office and agent was on duty”) generated almost as many closed seller leads in this survey (3 percent) as websites.

Buyer findings

The results from the buyers mirrored the seller results. Specifically, websites were responsible for generating 9 percent of the buyers in the survey who closed a transaction as a buyer.

As before, you still would be more likely to meet a buyer who will close if you have a yard sign combined with an open house. Nine percent of buyers who closed were from websites. Twelve percent of buyers who closed came from either an open house (6 percent) or a For Sale/Open House sign (6 percent.)

Floor duty held constant at 3 percent.

With all the noise around prospecting using websites, social media and other online resources, the one factor that really makes the difference is a referral from a trusted resource or face-to-face contact. This is true for buyers and sellers from all age categories.

For sellers, 39 percent found their real estate agent through a friend, neighbor or relative. Another 25 percent used the agent they had previously used to list or buy a home. Another 4 percent came from referrals from other real estate agents or brokers, and 3 percent came through an employer or relocation company. That’s a whopping 71 percent of all closed seller transactions resulting from “trusted sources” or face-to-face contact.

The buyer numbers mirror the seller numbers. Seventy percent of all closed buyer leads came from a “trusted resource” or face-to-face contact. (Specifically, 42 percent came from the agent’s sphere of influence, 12 percent had used their agent on a previous transaction, 6 percent met at an open house, 4 percent were referred by another agent, and an additional 4 percent were referred by a relocation company.)

Where to spend your money

These findings make it abundantly clear as to what your best ad spend will be.

• First, your No. 1 priority should be expanding your database and generating referrals from people who like you and the services that you provide.

• Second, it is vital that you stay in contact with past clients. Not only are they great sources of referrals, they are highly probable to hire you the next time you transact if you stay in contact.

• Third, any activity that puts you face to face with buyers and sellers is more likely to produce a closed deal than activities that rely on impersonal contact.

Most of my business comes from you, my friends and colleagues. Referrals from a trusted source are like a warm blanket on a cold night. But, you have to meet a LOT of people and get yourself out there. You need people to know you are "Open for Business".

Zillow adding 5000 new agents in the first 3 months of the year?

I know that there are millions of Realtors and Real Estate Agents practicing in the United States of America, and I also know that there are many who have a marketing plan and equally a number without a marketing plan, looking for the magic bullet to solve all their sales and marketing issues. However, to hear that 5000 brothers and sisters are using Zillow to assist with their business is interesting.

Real estate search portal Zillow boosted website and mobile traffic to new highs and added nearly 5,000 real estate agents to its subscriber base in the first three months of the year, helping the company surprise analysts with a 70 percent jump in revenue from a year ago, to $66.2 million.

At 52,968, the number of Zillow “Premier Agent” subscribers at the end of March was up 56 percent from a year ago. The portal grew its subscriber base by 4,654 agents in the first 90 days of the year, or about 52 a day.

Each of those agents was also spending more — $286 a month, on average, compared with $259 at the same time a year ago. Nearly 60 percent of new Premier Agent sales in January, February and March came from existing Premier Agents buying more advertising, the company said.

Average monthly unique users during the first quarter were up 51 percent from a year ago, to 70.7 million, with mobile and Web traffic peaking in March at nearly 77 million. Traffic continued to grow into April, with close to 79 million monthly unique visitors.

I have used Condo.com before and had some leads but nothing serious. I get a few leads here and there, but the same old same old works best for me, referrals from past clients and friends/family. 70%+ of my business comes from people I already know. I have been a Realtor now for 10 years, so know that there is no magic bullet no magic potion, you need to work on meeting new people, building your business daily.

#LizBobeck

Schools are a big issue as we wrap up another school year

Maybe its the end of the school year that has people talking about the next school year. Our school district in #Jacksonville, according to many teachers I speak to, is getting better, but it has incredible competition from the folks next door in St. Johns County, where their schools are number 1 in the State of Florida. Yes, only 67 counties in Florida and being number 50 out of 67 does not seem so bad, but then you see the real issues.

Our  high schools were so bad for so long, we needed someone to help us turn that issue around. It takes, per my resources, almost 10 years to go from plans to complete construction items regarding a high school. Take Lee High School, they just completed a multi-million dollar remodel and the school looks amazing with new emphasis on technology, but where was this push for tech 15-20 years ago, when Tech was really becoming prevalent? These high schoolers will be getting what they need for the future, but those who were stuck using the abacus from 10 years ago, sorry we did not do better?

The New Lee High School...

As a Realtor, I am not supposed to discuss the education or ratings of schools. It is in the ethics of the Realtor guide. It is something that has been there for a long time, and discussing the ratings of a school system could cost me my license. Thankfully, I have a number of friends who are teachers or in charge of schools in the area, I mention to those asking to reach out to them, my friends, and discuss their thoughts on kids, schools and what is important to them in a neighborhood with a good school system.

Duval County Public Schools Web Page

There are countless neighborhoods for kids, good ones with parks, here in #Jacksonville. The issue that I find is for parents to find the right one for their kids. We do feature some of the top schools in the USA here in Jacksonville and some very good magnet schools, but sadly, there are not enough of these in Jacksonville. While our focus is on development of downtown or some area of Jacksonville, shouldn't our focus really be on the schools and education we provide to our kids? After all, they are the future leaders of Jacksonville and it would be a shame for them to leave our great city, just because the next trend is occurring elsewhere.

Come on Jacksonville, we can do this, lets make it happen.

#LizBobeck

5 Home Improvements that COST you money at closing

You are selling your house, you have a great Realtor, of course, and you are getting traffic, but no offers. Could it be because of one of these 5 reasons? 5 Home improvements that cost you money and keep you from closing.....

When home owners think of renovations, home improvements or other additions, they are often thinking of ways to increase the value of their homes. Typical renovations do increase value, so it is a logical thought, whether a homeowner plans to stay in their home long-term or they are preparing to sell.

What homeowners may not realize is that some home renovations or home improvements actually can decrease the value of their homes. Yes, you read that correctly. There are home “improvements” that can lower the value of your home.

If you are considering making renovations to your home this spring or summer, here are five that you may want to avoid:

1. Wild Colors and Wallpaper

Bright colors and patterned wallpaper may be in for the moment, but homeowners who choose to go the trendy way with their home improvements and renovations need to proceed with caution, particularly if they intend to sell anytime soon. Your shrine to the Cowboy Cheerleaders will probably not win you many fans, unless you are in Dallas.

Today’s buyers often are seeking homes that are move-in ready and if they see a home they like, but know that painting or tearing off wallpaper will be one of the first things they have to do when they move in, they may be less likely to make an offer.

So, that bright home renovation idea can become a dark spot for some homeowners.

2. High-End Enhancements that Outshine Your Home

We can’t say enough about updated kitchens and baths, but there is a limit when it comes to renovating these high traffic areas of the home. Many of today’s home improvement shows may encourage homeowners to install professional kitchens or luxury bathrooms in their homes. While those high-end features may be a dream for some, the reality is that they don’t always fit the motif of many homes. This is particularly true if the kitchen and bathrooms are the only areas of a home that receive those high-end updates. They actually can make the rest of the house appear less enticing.

Do you really need a $5,000 stove to make fried eggs or will the $500 item work just the same? Safe bets for kitchen and bath improvements? Stick to the countertops, cabinets and sinks.

3. Outlandish Landscaping

When homeowners hear the words “curb appeal,” they often want to do everything they can to make their home stand out among their neighbors’ homes. But, it is important to consider the reasons that a home’s exterior stands out in a neighborhood. That shrine you saw to Mickey Mouse at Disney belongs there at Disney, not in your front yard when trying to sell your house.

Yes, greening up a lawn, pruning shrubs and planting flowers are all great ways to enhance a home’s beauty. Adding expensive fountains, ponds or other intricate lawn décor that make it harder to keep a lawn well-manicured can not only be considered eye sores, but they also can detract from a home’s selling potential due to their high maintenance issues.

When it comes to landscaping improvements around the house, simplicity may be the key to increasing home value.

4. Bedroom Conversions Gone Crazy

Everyone loves functionality; so, when Jimmy and Susie are heading off to college, the thought of turning their bedrooms into a home office, gym or sewing room may seem like an excellent idea. But, for homeowners who intend to sell any time in the near future, those short-term improvements can cause long-term headaches. Take your office apart, you're moving anyway, make the office back into a bedroom.

When a buyer sees a home advertised as a three-bedroom beauty, they want to see three bedrooms. One bedroom plus a home office and a small gym may make it hard for them to envision themselves and their children calling the house “home.” Give them the three bedrooms, make it easy for the buyer to see three real bedrooms.

If you’re a homeowner with intent to sell, keep in mind that you may be deconstructing that home gym to restage Jimmy’s bedroom for the sales process.

5. Waterworks that Just Don’t Work

Installing a hot tub or pool at a home may seem like a no-brainer for increasing home value. However, those expensive upgrades can detract from a home’s value and resale potential. Of course, for homeowners in it for the long haul, home spas and pools can be dreams come true.

For homeowners with any intent to sell, these water additions can leave them all wet. Some buyers can find another person’s hand-me-down hot tub to be a bit of a turn off, either for sanitary or other maintenance reasons. Depending on the weather in your region, a pool sometimes can be seen as impractical as well. I envision every owner having 20+ people in a hot tub at once, ick!

The bottom line when it comes to home renovations or home improvements is to choose wisely. When it comes to home improvements, one person’s treasure can end up being another person’s trash.

Bottom line, unless you inherited the house with all of these lovely new additions, you will catch far more opportunities to sell the house if the amenities are plain vanilla. Turn these over-the-top additions back into the basics when you first purchased the property. Not only will you sell the house quicker, your Realtor has more to work with in terms of working with prospects.

#LizBobeck

Some 32205 and 32210 Home Sales Data here in Jacksonville, FL

Here is some data on the course of sales in #Jacksonville, FL and some of the hotter zip codes in the area. Please enjoy.

With home sales in the 32205 zip code market already below average, in this week's report they slid 9.7% to 28 homes sold over the last 30 days. On the other hand, the close-by 32210 zip code registered 55 homes sold in the same period, the most of all surrounding zip codes. Prices are rising in the 32205 zip code, and the median sales price this period increased from $95,000 to $120,500. The 32205 zip code is a solid buyer's market, thanks to a big nine months of inventory to choose from and a pullback in sales.

Mortgage rates fell this week to 4.30%, signaling that it's probably a good time to think about locking up financing. Some interesting details on 32205

1. The population of Riverside, Avondale, Normandy, Murray Hill has decreased 9.2% in the last 10 years. 
2. The safety rating of this urban area is a 21 out of a possible best 100 score, reflecting the location of houses in such a close area.
3. The average commute to work for people in this area is 23 minutes, showing that most of the folks who make up this statistic work outside of this zip code.

This week saw a record in sales growth for the 32210 zip code market. It resulted in 55 homes selling over 30 days, which is a 14.6% spike from last week's number and also the highest amount since January. When comparing other close-by zip codes within the same period, the most came from the 32244 zip code with 50 sales. As sales reached a new peak, they seem to be correlating to a drop in months of inventory, which hit a three-month low at six months.

1. The average elevation in this area is only 28 feet.
2. The median income per household is $44,449 for this zip code, higher than 32205 which came in at $42,837. 
3. There are more indian named streets in the Ortega area than in any other part of Jacksonville. 

#LizBobeck

Almost 20 percent of U.S. metros will surpass their housing boom peaks in the next year

Before all the naysayers throw me under the bus and claim, "that Zillow data is not worth what you paid for it", well maybe not, but this is interesting to see if it lives up to its claim. Imagine 20% or more of metro areas in the United States surpassing the boom of the earlier years. So while we thought 2005 and 2006 looked frothy,  we may find that the next few years may be worse in some areas.

Home values in almost 20 percent of all U.S. metros will surpass their housing boom peaks over the next year, and affordability problems that have begun to affect a fraction of markets may spread to others over the next few years, Zillow reported.

“The lows of the housing recession are becoming an increasingly distant memory as home values reach new highs and homes become more expensive than ever in many areas,” said Zillow Chief Economist Stan Humphries in a statement. “This is a remarkable milestone coming only two and a half years after the end of the worst housing recession since the Great Depression.”

Home values nationwide were up 0.5 percent from the fourth quarter of 2013 to the first quarter of 2014, and were up 5.7 percent from the same time a year ago, according to the latest Zillow Real Estate Market Report.

Over the next year, Zillow forecasts that national home prices will appreciate by an additional 3.3 percent.

Price gains have already pushed values close to or above their housing boom peak in about 12 percent of the 8,700 markets tracked by Zillow.

Among the more than 300 metros tracked by Zillow, home values in nearly 20 percent of them have already passed or are expected to pass their prerecession peaks over the next year. Those fully or almost fully recovered metros include Dallas, Houston, Denver, Pittsburgh, San Antonio, Texas, San Jose, Calif., and Austin, Texas.

In a most metros, homes will remain affordable even as prices continue to climb, according to Zillow. Markets including San Francisco, Los Angeles, San Jose and San Diego are already unaffordable, however, and as mortgage rates rise, that will become a concern in other markets, Zillow said.

“As affordability worsens, more residents will be forced to search for affordable housing farther from urban job centers, and home values in some areas may have to come down,” Humphries said.

Five ridiculous things Buyers or Sellers say that you hear as a Realtor

In the Real Estate world, Realtors need customers. We need buyers as well as sellers. We know that in sales the 80/20 rule will normally apply where 80% of your business comes from people who use 20% of your time and visa versa. Its just part of sales 101.

For first-time (okay, sometimes second-time) sellers, the process of getting their home sold can be a bit of a mystery. Most sellers are well-intentioned, but in the midst of what can be an emotional or overwhelming experience, sometimes agents may hear a handful of seller sayings that in retrospect and out of context, can seem crazy and out-of-touch, and—yes—even ridiculous.

As an agent, tactfully correcting these sentiments is par for the course. So, here are some of the most common seller sayings, I've heard and some smart insights and troubleshooting tips to keep them from running a successful sale afoul.

1. “But I spent X years or $XX on that!”
One of the biggest perks of home ownership is the ability to customize the home to the personal needs and wants of the owner and their family. One homeowner may find that a soundproof mediation room is a necessity, while another may think that the installed slide in the kids’ room is a wise investment. Sometimes it can be difficult for sellers to understand that while they may value (both emotionally and monetarily) a home feature, potential buyers may not always value that feature in the same way—and that means that they may not be willing to pay for it.

I recently had a client who spent a lot of money in his kitchen. Nice stainless steel appliances, granite countertop, nice island working space and he wanted exactly what he paid out of it. Ever heard of depreciation? Can you sell your car for what you paid for it? The kitchen and the car have miles on them, they need to be sold for a percentage of their value in today's dollars.

So what do you tell a seller who thinks that a particular so-called “enhancement” means that the home is worth more than the current market dictates?

Remind the seller that while some home improvements can increase the value of the home, many should be looked at as features that enhanced their quality of life while the owner lived in the home. But, when it comes time to sell, it comes time to let it go. Emphasize that the enjoyment of those special features was the return on investment. If an eventual buyer also happens to love them, fantastic! But sellers can’t approach the home selling process expecting every buyer to share your value system and pay through the nose for them.

2. “We just need to find a buyer who understands my tastes.”
There are certainly occasions, with rare properties, where there is truly a narrow niche of buyers that will have to find, understand and appreciate a property. In cases like that, with acreage, converted warehouses, horse properties, and the like, this saying is not ridiculous at all.

But this saying is ridiculous when it is uttered by the owner of a home with potentially wide appeal as a reason for not staging or preparing their home for sale, or in the effort to avoid neutralizing highly personal design and decor choices.

If you have a client who is reluctant to make these necessary adjustments, remind them that the goal is to maximize the home’s appeal to a broad segment of ready, willing and able buyers who are willing to pay top-dollar for the home. Why should a seller limit their ability to get the most offers possible?

There are two strategies to take here:

A. Take the seller around on an open house tour to show them examples of sellers who staged their home appropriately and those who kept the home as is and ask them which they feel is more prime for a top sale.

B. Work with your sellers on a Plan B ahead of time. Agree on a time period (30 days, for example). If the home is still on the market, explain that it will be time to course-correct and stage the home.

3. “I want to price it high, so I have room to come down.”
Now, in all fairness—there’s a time and a place for this. By that I mean that there are certainly local markets where it’s very much standard practice for buyers to expect to come in below asking, and sellers can price their properties a few thousand dollars higher than the target price point without killing their deals. Sometimes explaining to a seller when this strategy is appropriate can help them see why now may not be that time.

Explain that if other sellers are pricing appropriately and the seller’s home is priced too high over what the market will bear, many buyers won’t even bother trying to negotiate down. Rather, they’ll go find a home with a more realistic price, they’ll wait until the seller lowers the price or they’ll wait until the home has been lagging so long they sense the seller might be desperate, and will swoop in with a lowball offer.

Even in a relatively hot market climate, the aggressively priced homes get the most buyer traffic and, accordingly, get the most offers. In turn, these bidding wars drive the eventual sales price up. Overpricing it might actually sabotage success.

4. “That offer is an insult— I won’t even dignify it with a response.”
For sellers, a home represents a massive investment of money, time, hopes and dreams. It probably also represents personal tastes, style and some precious memories.

But once it’s on the market, sellers need to get a thick skin and decide not to take anything personally.

Let your seller’s know that if someone offers to pay many thousands of dollars for their home, it’s not an insult, even if the offer is far afield from what they are willing to sell the home for, or from what they believe it is worth. They might be deeply misguided, and not yet experienced enough in the market to know that the offer was unreasonable. Or they might just love the home and be going for it, even though it’s really outside of their personal resources.

Finally, they might actually just be trying to get the seller to come down a bit on the asking price. Some buyers see making a very low offer as part and parcel of negotiations.

In any event, home sellers should always respond to an offer made by a qualified buyer. Remind your clients that they can always respond with what would be appropriate counter. They might be surprised at how even a very low offer can come together with a respectful, reality-based counteroffer and a little negotiating.

5. “I need $X to get the home I want and take my Australia trip—let’s list the place for that.”
There are lots of respectable strategies for setting a list price, but all of them have their basis in one thing: data. Pricing can be the toughest conversation of all to have with sellers. Be firm: The market sets the home’s price. Not some desire for a big vacation. The ultimate value is based on what a qualified buyer is willing to pay for it—not what the seller “needs” to move.

A million dollar listing I recently had, I had to dump the seller, he would not listen in the end, the property was over priced, not getting traffic and he then had the audacity to ask me for the picture I paid for to list the property. I said no, he thinks he can do a swap of a home with someone who has a condo and he is going to market the property better "so he says" than what you can find on MLS. Sometimes you just have to let people do the crazy stuff they want to do, because they think they know best. Sometimes you are just pouring money down the drain with crazy buyers and sellers.

#LizBobeck

Some local data here in Jacksonville

Each month, I like to educate folks about some of what we are seeing in some zip codes of Jacksonville. I do live in 32205, the Riverside Avondale areas of Jacksonville, but I cover and go anywhere I need to help my customer. Here is some information on March sales in a few zip codes:

The 32205 zip code remained below its 12-month average sales volume this week as sales dropped 6.1% to hit 31 homes sold over the last 30 days. In comparison, the nearby 32210 zip code had 52 sales in the same time frame, the most of all neighboring zip codes.

 Prices are falling in the 32205 zip code, and this period the median price of all sales fell from $135,000 to $95,000. The 32205 zip code is a definite buyer's market, due to a big eight months of inventory left and aided by the dip in sales.

Mortgage rates fell this week to 4.31%, signaling that it's probably a good time to think about locking up financing.

http://www.homesnap.com/news/Jacksonville_Metro/Jacksonville/33845

Sales fell this week to 52 homes sold in the 32210 zip code market over the last 30 days. However, a six-week positive trend for contracts was extended, with 85 pending transactions in the same time frame.

Potential buyers should note that prices are coming down in the 32210 zip code, and for this period the median sales price slid from $72,000 to $70,500. The 32210 zip code is a definite buyer's market, thanks to a big seven months of inventory to choose from and a pullback in sales.

It is still a buyer's market aside from all the hype you hear from the national media. You can still find a great deal on a house and a good mortgage rate, below 5%. If you know of anyone looking to buy or sell in the Jacksonville area, please ask them to contact me.

#LizBobeck

Overpriced Listings - My latest story here in Jacksonville, FL

My blog post for the day and week is really about the choices we, as Realtors make when we take on over-priced listings. Sellers can really be difficult when listing their house. After all, they are interviewing other Realtors who are throwing numbers at them and I have yet to meet a homeowner that did not LIKE a higher number for their property than a lower one. This is the case of a story here in Jacksonville, FL.

So when you are interviewing for the opportunity to 1) spend money on a listing, 2) see prospects through the door at open houses, 3) manage somewhat unreasonable expectations on the part of a seller, add this to all the other buyers and sellers in your pipeline, you have a real challenge ahead of you. There are only 1440 minutes in a day and if one client consumes most of those minutes, you really have a fun job.

So my experience this week was with a client who was referred to me by another Realtor in my office. She needed help to get this listing sold and as it happens, the other Realtor is dating the owner of the property. Warning Signs should bounce off you when that happens. NEVER mix Business with Pleasure. Emotions are too powerful when discussing money.

So we meet with the owner and discuss what his options are, 1) the only homes selling now are those that are foreclosures in your neighborhood, 2) your house is old and needs updating, 3) are you ready for a lot of people to come though and see your house. Well, the owner did not like hearing that "HIS" decorations were old and tired, or that he would not get top dollar as compared to other bank-owned properties selling at a lower price, and during the last few months, the owner was short and curt with people walking through the property.

What do you do? You suck it up for the listing period and you do what you can, all the while the little light goes off in you head saying "I told you so, I told you so, I told you so". When you have been selling Real Estate for as long as I have, almost 10 years, you know who are going to be your good prospects and your SUSPECTS. Owners do not understand that marketing the house for sale takes Time and Money, and unless it is the best thing someone sees, it will probably sit for 90-120 days, as evidenced by the Days on Market in our area averages.

So the buyer comes back at the end of the listing term and says he is 1) unhappy that the home has not sold, 2) he plans to send direct mail postcards to people with condos where he would like to live with the "hope" they want to swap out their oceanfront condo for a house in a subdivision, 3) he would like to take over negotiations with the people who have expressed interest in the house, and cut me out of any commissions, 4) work with a Realtor who knows his area "better".

Since his property was a million dollar plus listing, we spent thousands of dollars marketing the property to people who subscribe to luxury magazines in far away places like the Northeast, where they are known to have 2nd homes in Florida. We also spend money on local TV listings and featured open houses as well as travelled back and forth to the property to be onsite with prospects since the owner wanted someone there to trust. In the end, the owner is unrealistic in their expectation. There are still rows and rows of unsold homes in the subdivision, his house is overpriced, we never received an offer, because he would not reduce it to more of a market price.

One of a Realtor's questions to the homeowner during the period of interviewing should be "Are you prepared to lower your house price, if we do not receive an offer within the first 30 days, 60 days, 90 days?" this gives you an idea of how much a person needs to sell the house. How motivated they are to move elsewhere. You need to know before spending $$$ whether the owner is a prospect or a suspect. Do NOT allow this to keep you up at nights thinking about the money you are throwing down the Money Hole!

Good luck everyone, there are so many good people out there who will listen to YOU, the Realtor, the professional. But there will always be others who think they know more than you.

#LizBobeck

Berkshire Hathaway HomeServices Great Press this week

So we are sitting in the Berkshire Hathaway HomeServices Convention Standout2014 and we are just about to sit in for the Reba McIntyre show and what does Earl Lee tell us? He says that Harris Poll has recognized Berkshire Hathaway HomeServices as the number one real estate BRAND in the country. Add that to the following information, makes for a very nice week!

Seeing as though we are only one of a couple of companies that Warren Buffett has allowed to use the Berkshire Hathaway name in their brand is huge. Anyone see GEICO using this in their name? No need, they have the Gecko. Anyone see Coca-Cola using the BHHS brand? No need, they are their own brand. Anyone see Wells Fargo needing the BHHS brand? Nope, they have been in banking long before the iconic Buffett has been in business. So why would he put his beloved name on Real Estate?

No one really knows, but with so many other companies out there and over 1 million real estate agents, it is nice to know and see that Berkshire Hathaway is in the Real Estate business and while they are only in 33 states now, and no overseas yet, they have a long way to go and a lot of growth ahead. 

When you see the Cream and Cabernet signs, you can rest assured you have the brand of Berkshire Hathaway behind you AND you have Warren Buffett behind every transaction. We are happy to be a part of the Berkshire Hathaway family of successful businesses. Looking forward to an amazing 2014 and beyond. A brand that will only get stronger with time!

Some stunning information about the growth of Berkshire Hathaway....

#LizBobeck

Is this the type of response you receive from your Realtor?

Hey, Realtors are overwhelmed again, does your Realtor look like this nice lady above? If you are an investor, bidding on HUD or REO properties, you have to bid on 10 to receive a yes on 1. How many Realtors do you think have the patience for this process?

My research shows that many Realtors get into this business because they see $$$$$$$$$ signs, sure there is good money to be made, but you have to have a discipline. I started almost 10 years ago and it was not easy, I started out asking anyone and everyone if they knew someone who was interested in buying or selling Real Estate. And 9 years later, I am in the top 5% of all Realtors in Jacksonville, FL

Remember that as easy as it was to become a Realtor, so can it be easy to lose customers. Just because it takes 10 no's to get to 1 yes's does not mean that you need to cut and run from investors. All good businesses are based on action 1, action 2 and then repeat, or as in the case of shampoo, Wash, Rinse, Repeat. Just by adding that one little word, Johnson & Johnson made a killing on shampoo, by getting people to repeat. Brilliant!

I work with investors, yes they are demanding and they change their minds, but they have a discipline and they follow it, or.......they lose money. I don't know any investors who work that hard, just to lose money. They might as well just donate money to charity. They know what they need to do to make money. A good Realtor will be able to anticipate what the investor wants or likes based on the discipline. Once the investor trusts you, stick with it, as they want to be with someone who understands them. Here is a great article from Biggerpockets.com on using a Realtor. H/t to Brandon Turner and Joshua Dorkin for building a great site by Investors, For Investors.

#LizBobeck

Harris Poll did a little poll of thousands of customers in the real estate industry and Berkshire Hathaway proved to be #1

Berkshire Hathaway HomeServices named Best Real Estate Company in 2014 by Harris Poll

I know alot of people look at polls as who is number one in college football or basketball or some other college sport, but what about who is the most trusted and valuable brand when it comes to the purchase and sale of real estate? Berkshire Hathaway HomeServices announced recently that Harris Poll has awarded all of the BHHS affiliates with the distinct honor of being the #1 ranked Real Estate Firm in the country for 2014.

More people trusted the BHHS or Prudential brand than any other real estate company. Trust is a huge game changer because you have to trust your agent when you are making the largest transaction in your life, for most people. All that money on the line can cost more, IF you do not have the right professional to assist you with your transaction.

To receive this honor is quite a reward. To be seen by our customers as the BEST Real Estate agency in, the world is astonishing, since there are BHHS affiliates in only 33 states and there has not been much if any movement to go overseas.

Congratulations to all at Berkshire Hathaway HomeServices and thank you to Florida Network Realty for allowing me to do what I love to do with my amazing and fantastic customers.

#LizBobeck

Real Estate: Uneven US Housing Recovery Will Last For 5 Yrs +

Hey, some great Real Estate news, yeah! I can dig a recovery of 5+ years, maybe that will make up for the last 5 years of misery in properties. Right? Here in #Florida, they are expecting our GDP to double in 2014 from what it was in 2013. So go from 1.6% to 3.0%, which would be huge, I could stand to enjoy that ride! Anyone remember the Wild Ride from Disneyworld?

The US housing sector is likely to experience an uneven recovery over the next 5+ yrs, with some local markets coming back faster than others, according to a study released Wednesday.

By 2018, the median price of single-family homes will be close to the highs reached in 2006 before the national market meltdown, according to the study from the Demand Institute, a nonprofit think tank operated by The Conference Board and Nielsen. But there will be winners and losers.

Among the 50 largest Metro Areas where housing prices are expected to appreciate between years 2012 and 2018, the Top 5 will see rises on average of 32%, while the Bottom 5 will average gains of only 11%

The cities expected to report the largest increase in the median price of a previously owned single-family homes are Memphis, Tampa, Jacksonville, Milwaukee and St. Louis.

Those with the lowest projected price appreciation are Washington, DC, Oklahoma City, Denver, Minneapolis and Phoenix.

“The strength of the local housing market is among the most telling metrics that helps us assess community health and well-being,” said Louise Keely, chief research officer at the Demand Institute and co-author of the report.

As for States, the 5 likely to see the strongest gains in median prices are New Mexico, Mississippi, Maine, Illinois and New Hampshire.

Those with the lowest are Minnesota, Virginia, New York and Alaska. The study includes Washington, D.C., on its list.

The report is based on an 18-month research program that included an analysis of 2,200 cities and towns in the United States and interviews with 10,000 consumers.

Markets that experienced the biggest run up in prices during the bubble, and subsequently the deepest drops  have a much longer road ahead to regain their prior peaks, the study found.

For instance, in Nevada, prices will likely be 45% below their 2006 high by 2018, in line with their 2002 level, the study said. Nevada was among the states that experienced the largest price appreciations during the boom and the hardest fall. Property values dove 60% from Peak to Trough.

The study predicted that the national median price for an existing single-family home will rise at a much slower rate in the coming years than in 2013, when prices advanced 11.5%. The study sees prices growing at an annual rate of 2.1% between years 2015 and 2018, as supply and demand begin to even out.

The double-digit price increases of the past 2 yrs are not indicative of future trends since they were largely driven by investors snapping up distressed homes to meet surging rental demand, the study said.

In contrast, it predicted that the main driver of demand in the next 5 yrs will be the formation of new households.

As the US economy strengthens and employment rises, potential buyers will find entry into the market is easier.

It is unlikely that everyone who dreams of owning a home will be able to make it a reality. In the next 5 yrs, the group predicted about 4 million households will fail to realize their current purchasing or even rental aspirations.

Wow, 4,000,000 applications to go through and process for those on the mortgage side. Amazing! Come check out my new website soon, http://www.riversideavondalerealestate.com, find out what your home is worth and as we rise in values, see if you would like to expand into a new house!

DBPR: Watch out for unlicensed real estate agents in Florida

As a follow-up to the Blog Post I made last week about new Real Estate Agents hitting the market. Well, I was right, as Florida is seeing "new" agents hit the market. Only Real Realtors in Florida will be featured on the myfloridalicense.com website.  Make sure you check to see that you are working with someone who is licensed for this work.

TALLAHASSEE, Fla. – Feb. 21, 2014 – The Florida Department of Business and Professional Regulation (DBPR) issued a media release warning Floridians about unlicensed real estate individuals.

 “To ensure the financial and personal safety of potential homebuyers and sellers, the Division of Real Estate is responsible for the examination, licensing and regulation of over a quarter of a million individuals, corporations, real estate schools and instructors,” says DBPR Secretary Ken Lawson. He adds that the state oversaw 4,681 sales associate exams just last month.

Lawson also included a reminder about real estate licensing in his email newsletter.

“Moving forward, the Department aims to continue improving the standards and regulation of the profession while taking initiatives to keep the public informed,” Lawson said. He urged Floridians to first verify a real estate agent’s professional license before moving forward on any real estate transaction.

Real estate licenses can be verified online at www.myfloridalicense.com or by calling (850) 487-1395.

#LizBobeck

Lenders Return To The Subprime Market - Suprise!

You know that feeling when you are watching JAWS, the movie, and the music starts, da-da da-da da-da and you get tense because you know that the shark is approaching and its only a matter of time before IT happens. Well, have I got news for you........the housing shark is back.

Lenders are returning to the subprime market – although still at only a fraction of what subprime lending was before the mortgage crisis, BusinessWeek reports. Some subprime lenders that collapsed during the financial crisis are coming back into business with new nonprime loan offerings.

“There needs to be a solution for people who don’t fit in the box, and rebuilding nonprime lending is it,” says Bill Dallas, with his new venture New Leaf Lending in Calabasas, Calif., which will begin issuing nonprime loans. However, he says this time around tougher lending rules will require borrowers in some cases to put up to 30 percent down as well as require more careful documentation of borrowers’ incomes, credit, and work history. 

About $3 billion of subprime mortgages were issued during the first nine months of 2013, according to Inside Mortgage Finance. In 2005, subprime originations totaled $625 billion. Subprime loans – mostly targeted to those with credit scores below 660 – took a lot of blame in the financial crisis.

Lenders sold high-risk products to investors with adjustable-rate mortgage products that had interest rates that could triple after two years, in some cases. Also, many of the loans had required little documentation about the borrowers’ income and assets. The loans were blamed for sparking a huge wave of defaulting borrowers.

Since then, federal regulators have restricted many high-risk mortgage products. Lenders are also requiring higher credit scores and greater documentation of a borrowers’ financial situation. Athas Capital Group in Calabasas began issuing subprime loans last April, offering mortgages at 9.75 percent for borrowers with a credit score of 550 to 599 who can make a 30 percent down payment. 

“We’ve done enough loans to prove to us that it’s a product we’re going to continue to grow,” says Brian O’Shaughnessy, Athas’s chief executive officer. “The biggest thing that has held us back is that a lot of brokers don’t know the product is back. The word ‘subprime’ in a lot of people’s minds is dirty, but the product today is much different, much safer.” Banks, they are a different breed, for sure!

So it would appear that as long as a buyer has 30% down, and can stomach a 8, 9, 10 % or higher rate, banks are willing to put people in mortgages and homes. Will we ever get back to the days of 5% down or as it seemed, all you needed was a mirror on your breath to get a loan? Never say never, we typically repeat the past mistakes, mainly because "The main thing about money,...., is that it makes you do things you don't want to do." As quoted from the 1987 Movie Wall Street. We all know how that turned out for the main character....jail. Yet no one from the mortgage business seems to have gone to jail.

We shall see.

#LizBobeck

lizbobeck.com

Housing Gains Predicted for the Year

More modest gains are likely this year, according to the most recent Kiplinger Letter forecast. The national average of appreciation in home values is up 4 percent-4.5 percent, compared with a gain over 11 percent in 2013.

The top stated reason for this increase is rising mortgage rates, will increase by 5 percent or so for 30-year fixed rate loans by the end of the year. Another possible is that fewer investors are offering all-cash deals, with bargain prices and interest rates fading away.

“Building will get a bump this year with just over 1 million new houses started in 2014, the first time starts have passed the 1 million mark since 2007,” says Kiplinger Letter’s Associate Editor Gillian White. “Sales of new homes will also be a bright spot, with 16 percent growth this year, just shy of 2013’s substantial performance.”

Another prediction: More existing homes will go up for sale, as price hikes pull homeowners out from mortgages that are underwater, making them more willing to sell. Sales will climb by 4 percent, but inventory won’t be as tight.

The Kiplinger letter forecasts that new-home building will accelerate again, helping to offset the construction drought of 2008-2012. Keep an eye out for housing starts this year to climb by 15 percent and top 1 million for the first time since 2007.

Affordability, though declining, is still better than the historical norm: A median-price home costing 20 percent of household income. In 2013, it took just 15 percent of income to buy an equivalent home. When mortgage rates rise to 5 percent, it will cost 17 percent of income.

“More moderate growth this year is not necessarily bad news, it signals a more sustainable, long-term growth trajectory that will help quell fears that another bubble is arising,” says White. “Rising rates will also be helpful in some cases, cooling overly hot markets, where cheap rates and high demand sparked outsized price spikes.”

For more information, visit http://www.kiplinger.com. 
#LizBobeck

It's happening again......bad Realtors are making their way into the Real Estate universe.....

They're back, the idiots who left the Real Estate industry during the downfall, the ones who could not cut it, hack it, build relationships, the ones who only were in Real Estate for the easy "Hello, Realtor on the phone, let me write up your sale" closes. They have returned and are coming out of the woodwork as we see the economy improve. Would you buy from this guy?

Its not just Realtors who are getting a bad rap, its also investors. The Doctors and Lawyers who over-speculated in houses, land and Real Estate in general have begun to call owners of land to begin their speculative journey. Stop!!! Aren't there enough issues in a medical practice, Obamacare, Medicare, Medicaid, Insurance, Patients, to where you don't need to dabble in the world of Rocket Science too? Here is a neat article on this point : Physicians do not belong as Real Estate experts

This all comes to fruition as I received a low-ball offer, two actually this week. One on a house that had been on the market for 14 days, or 2 weeks and the offer was only 80% of the asking price. The prospect had been to open houses, and was hovering over it, and thought that asking 20% off of a rehabbed house in a Historic District was appropriate. This is not Fantasy Island folks, this is reality!

On the other property, the Realtor was being led around by investors. Who holds the license, who knows the market? They made an offer that was at 60% of what was offered. Really? The house is priced below the market value, any idiot Realtor could run a property appraisal and see this. Apparently bottom fishermen, or perhaps they have been hanging around with the lawyers of the world, you know the joke, what's 1000 lawyers at the bottom of the sea.....A good start. 

So watch your children, watch your parents and most importantly, watch your pockets, because the roller coaster appears to be moving on an up slope. The Fed is tapering off its support, China is buying less US debt, and the old appears to be new, yet again. Hold on for a new bumpy ride in 2014.

#lizbobeck

lizbobeck.com

#Jacksonville stats for #January 2014

It is a new day and a new year here for Real Estate in 2014. I appreciate all of my clients and customers, I have been informed that I ranked in the top 5% of all Real Estate professionals in Northeast Florida in terms of sales and transactions in 2013. Thank you to my customers.

The portrait in #Jacksonville Real Estate is similar to other parts of the country, albeit not as chilly now, but we have a judicial state which means we still have many more houses in foreclosure. Many more yet to hit the market, but for 2013, there were some nice surprises as compared to this time in 2012.

The median sales price in Jacksonville for January 2013 was $110,000. The median sales price for January 2014 in Jacksonville was $120,000. That’s a difference of 9.1%.  The median sales price is the average of all the prices of homes sold for a period of time, in this case, the last 12 months. So prices are rising.

I have highlighted the area of the data that I think is most compelling, Days On Market. The number of days a property sits on the market is down from 2013 to 2014 January to January, for low end houses it is down almost by 1/3. The old adage that time is money is true here. Imagine an investor, if they could shorten their time of ownership by one month, how many more homes they could process and sell?

REO sales are increasing, a sign that we still have a LOT of inventory on the books. With Florida as a judicial state, our foreclosure process takes a LOT longer than other states. In Texas, you can foreclose on a house in 21 days, in Georgia 30, but Florida is a long process.

What this all means? Well, it means that 2014 is acting much like a lion, we shall see when the lamb of real estate returns. Not even the threat of higher interest rates has really slowed down the march of investment. We are seeing investors move back into the market, we are seeing first time #homebuyers, we are seeing more people looking to buy. It is HOT, HOT, HOT out there, so if you see a home, and you LIKE it, but don't LOVE it, get to Loving it quick, homes are not staying on the market in hot areas of town.

#LizBobeck
lizbobeck.com

Story of Revenge on the cheating spouse....

I saw this posted by a friend on a community here on Google. I thought it was special to share with all of my new and old friends, about the importance of learning the scorn of a woman. Men, don't incur this wrath!

After 37 years of marriage. Jake dumped his wife for his Young secretary.

His new girlfriend demanded that they live in Jake and Edith's multi-million dollar home and since the man's lawyers were a little better he prevailed.

He gave Edith his now ex-wife just 3 days to move out. She spent the 1st day packing her belongings into boxes crates and suitcases.

On the 2nd day she had to movers come and collect her things.

On the 3rd day she sat down for the last time at their beautiful dining room table by candlelight put on some soft background music and feasted on a pound of shrimp a jar of caviar and a bottle of Chardonnay.

When she had finished she went into each and every room and stuffed half-eaten shrimp shells dipped in caviar into the hollow of all of the curtain rods. She then cleaned up the kitchen and left.

When the husband returned with his new girlfriend all was bliss for the first few days.

Then slowly the house began to smell. They tried everything cleaning mopping and airing the place out. Vents were checked for dead rodents and carpets were cleaned. Air fresheners were hung everywhere.
Exterminators were brought in to set off gas canisters during which they had to move out for a few days and in the end they even replaced the expensive wool carpeting. NOTHING WORKED.

People stopped coming over to visit. Repairman refused to work in the house.

The Maid quit.

Finally they could not take the stench any longer and decided to move.

A month later even through they had cut their price in half they could not find a buyer for their stinky house.

Word got out and eventually even the local realtors refused to return their calls. Finally they had to borrow a huge sum of money from the bank to purchase a new place.

The ex-wife called the man and asked how things were going. He told her the saga of the rotting house. She listened politely and said that she missed her old home terribly and would be willing to reduce her divorce settlement in exchange for getting the house back.

Knowing his ex-wife had no idea how bad the smell was he agreed on a price that was about 1/10th of what the house ha been worth, but only if she were to sign the papers that very day. She agreed and within the hour his lawyers delivered the paperwork.

A week later the man and his girlfriend stood smiling as they watched the moving company pack everything to take to their new home.

INCLUDING THE CURTAIN RODS.

Moral - Men, don't mess with the woman of the house and stay married!

#LizBobeck
lizbobeck.com