Tag: Investment Real Estate

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Buying Investment Real Estate Selling

South Florida Real Estate – Third Quarter Summary

According to the National Association of Realtors third quarter report, sales are up throughout most of the country.  The biggest increase in sales was in Florida at 36.8%.  This is no surprise considering that we are also the state with the highest number (9 out of the top 15) of metro area price decreases in the double digits.  Miami-Fort Lauderdale-Miami Beach metro area had a price decrease of 24.6 percent.  What this means to you depends on whether you are a:

  • Seller – Pricing is everything in this market.  Although sales are up, the high unemployment rate and continued high inventories mean that prices will not be going up any time soon.
  • Buyer – If you are waiting for the bottom of the market, you probably missed it, but high inventory levels, low interest rates and the extension and expansion of the First Time Homebuyers Tax Credit, still equal a great time to buy.
  • Investor – There are and will continue to be good buys but the high unemployment rate and inventory levels will  continue to put downward pressure on rental and vacancy rates across the commercial/investment sector.-

More detailed information regarding specific real estate markets in Miami-Dade County can be found in Miami Real Estate – Single Family Homes Market  Summary

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Buying Foreclosures

Foreclosures: Are They A Good Deal?

foreclosure 1e With so many foreclosures on the market today, many buyers think they can get a good deal in a foreclosure.  Sometimes foreclosures are not the best deal.  This apartment was stripped bare, including the entire kitchen, all bathroom fixtures, the doors, baseboards, even the air conditioner was ripped out!  There was no way to do an inspection.

To minimize his risk, the buyer had several contractors come through to determine the cost of replacing everything and took those costs into account in his offer to the bank.  His offer was accepted and he got a very good deal compared to the price of other recent sales in the building.

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Buying Market Summary Selling

Miami Real Estate Market – Pending Sales, What Do They Really Mean?

pending sale signThe National Association of Realtors reported a 21.2 percent increase  in pending home sales for the month of September. This is the 8th consecutive monthly gain so, what does that mean in terms of the real estate market?  The answer, as always, is it depends on the location.  The NAR number is a national number so it takes in the number of pending sales across the country.  There are some areas of the country, such as the Northeast, that had a decrease in pending sales  from August to September.

On a national basis, the increase in pending home sales bodes well for the housing market since most pending sales result in closed sales within 1 – 4 months.  If you are currently trying to buy or sell real estate, you need to look at what all the numbers are doing in the location where you are buying or selling.  In addition to looking at pending and closed sales; look at the inventory;  price per square foot of listings, pending and recently closed sales; and the number of short sales and foreclosures in each category.  All of these numbers will give you a good picture of what is going on in your market and will guide you in your offers if you are a buyer and your pricing if you are a seller.

Categories
Buying Foreclosures Investment Real Estate Selling

South Florida Real Estate Market: What is Going On?

question_mark2The following were all topics in the news last week and all of them have an effect on our real estate market:

South Florida home sales surge, prices plunge, mortgage rates fall to lowest levels since May, Florida’s unemployment rate is up, Florida foreclosures are up and may be increasing, another condo developer files for bankruptcy, developers selling in downtown Miami for $200 per square foot, the first-time buyer credit is expiring, school starts Monday,  Miami-Ft. Lauderdale real estate market is ready for a rebound, pending sales in Miami-Dade County up over 96% in July over same time last year, Florida loses population for the first time since World War II.

So just what is going on?  In short, there have been a lot of positive signs that our real estate market is at or near its pricing bottom, but that doesn’t mean we are going to see appreciation any time soon.  Closed sales are up and pending sales are up even further.  The fact that housing prices in Miami-Dade are at their most affordable levels in years, coupled with the government’s first-time homebuyer tax credit, has helped move a lot of the lower priced inventory.  The high unemployment rate will result in more foreclosures and our tourism and real estate dependent economy will take longer to recover from the recession than states with more diverse economies.  All this means is that the real estate market will go through up and down spurts from month to month, similar to what the stock market is doing, and that prices will stagnate for a while instead of appreciating.  Some months are going to see more sales than others.  Certain areas are going to continue to see decreasing inventories.  I suspect that with the start of school and the end of the first-time homebuyer credit at the end of November, the rate of sales is going to taper off a bit.  If you are buying, there are going to continue to be deals and you will still be in the driver’s seat.  If you are selling, pricing will be the most important factor.

Categories
Buying Home Improvement Investment Real Estate Selling

Don’t Underestimate the Value of Curb Appeal

In the current real estate market, a lot of attention has been given to staging a home to help it sell.   I am a big fan of staging, but think curb appeal is even more important.  After all, it doesn’t matter how nice your home looks on the inside if buyers drive up, take a look at the outside and drive on.  Here are some simple ideas to create curb appeal for your home:

  • Make sure the outside looks clean and fresh.  Remove cob webs and brush off dirt and bugs from outside walls.
  • Pressure clean walk-ways, pool patios, fences.
  • Paint any exterior that looks drab or dirty.
  • Remove weeds and dead leaves from plant beds.  Fill in bare spots with new plants and lay down a fresh layer of mulch.
  • Re-asphalt driveway
  • Paint or stain front door.
  • Thoroughly clean all outdoor light fixtures and make sure the bulbs are working.

Even if you are not selling your home, these small fixes can make your home inviting to your friends and make you fall in love with it all over again!  If you are a buyer or investor, look at homes that don’t have curb appeal.  Most likely they have been on the market longer than homes in the neighborhood that do and you can get them for less than you would a house that has a pleasing exterior.  Once the house is yours, you can add curb appeal and reap the benefits.  Your cost to create appeal should be minimal compared to the savings you got on the purchase.

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Categories
Buying Home Improvement Investment Real Estate Selling

Don't Underestimate the Value of Curb Appeal

In the current real estate market, a lot of attention has been given to staging a home to help it sell.   I am a big fan of staging, but think curb appeal is even more important.  After all, it doesn’t matter how nice your home looks on the inside if buyers drive up, take a look at the outside and drive on.  Here are some simple ideas to create curb appeal for your home:

  • Make sure the outside looks clean and fresh.  Remove cob webs and brush off dirt and bugs from outside walls.
  • Pressure clean walk-ways, pool patios, fences.
  • Paint any exterior that looks drab or dirty.
  • Remove weeds and dead leaves from plant beds.  Fill in bare spots with new plants and lay down a fresh layer of mulch.
  • Re-asphalt driveway
  • Paint or stain front door.
  • Thoroughly clean all outdoor light fixtures and make sure the bulbs are working.

Even if you are not selling your home, these small fixes can make your home inviting to your friends and make you fall in love with it all over again!  If you are a buyer or investor, look at homes that don’t have curb appeal.  Most likely they have been on the market longer than homes in the neighborhood that do and you can get them for less than you would a house that has a pleasing exterior.  Once the house is yours, you can add curb appeal and reap the benefits.  Your cost to create appeal should be minimal compared to the savings you got on the purchase.

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Categories
Buying Foreclosures Investment Real Estate Selling

Buying Real Estate Needs to Make Sense

Two sentences in today’s Wall Street Journal article by Brett Arends sums up all of the often conflicting real estate news these days.  “A real-estate purchase needs to make sense on its own terms.  And measure it on cash flow today, not the hope for capital gains tomorrow.” This advice makes sense in any real estate market and, if followed, should make real estate a great long-term investment, whether it is your primary residence, or an investment property.

Categories
Buying Investment Real Estate

Miami FL – Commercial Real Estate is the Next Buyers Market

An Associated Press article last week highlights opportunities in commerical real estate.  Whereas many economists arebrickell-2-resize predicting that the housing market is at or close to bottom, the commercial sector is just starting to see massive defaults.  A skyscraper in New York that was purchased for approximately $50o million in 2006 just sold for $100,000!  The commercial real estate market is the worst in decades and there are billions worth of distressed properties in every market.  This creates an amazing opportunity for long term real estate investors.

Although Miami does not have the commercial density of New York or Chicago, it did go through a commercial building boom,  and there will be many opportunities in all commercial sectors over the next year.