The profitability of renting luxury condominiums in South Florida is yet to be proven. The high inventory and output of extravagant amenities determining high prices, tied to the stagnation of wage-increase for potential renters has been a sign of trouble for the investors’ industry.
For investors, these condos lost their attraction to be considered a sound, profitable investment, after evaluating the cost of association fees, assessments, and taxes.
The downturn in prices for these condos, “already happened” said Josh Migdal, Miami attorney who represents clients in multiple jurisdiction and is known for his work on behalf of the Federal Deposit Insurance Corporation (FDIC) in the wake of mortgage meltdown and the condo market.
Huge Supply of Million Dollar Condos
The condo oversupply is clear in luxury projects, yet absent in affordable projects. Condo Vultures’ website who weekly distributes the Market Intelligence Report for residential real estate in Miami-Dade, Broward, and Palm Beach counties, recently reported that there is a 70-month supply for condos costing at least $1 million.
Last year, a news report found a “home luxury glut”. There was a 124% increase of condos and luxury properties over the same time in comparison to the previous four years.
Last year, Ron Shuffield, President of EWM Realty International, a 54-year-old real estate brokerage, with 10 offices in South Florida said, “There are more properties on the luxury market right now than we’ve ever had in history.”
Peter Zalewski, founder of Condo Vultures, told the Herald, “there’s a 32-month supply of condos in downtown Miami alone, so the only way you’re going to move a condo in this market is to lower your price.”
Although in the second quarter of 2017, there was a median worth decline for condo/townhouse of 22% in zip code 33132, and 10.1% in zip code 33140, the recent trends in Miami real estate luxury prices finally saw a growth in January of 2018, and have reached the highest price gains since July 2005. The luxury market in Miami is growing according to Danielle Hale, chief economist for realtor.com®.
Shrinking Supply of Affordable Condos
There has been a crunch in the affordable housing in United States; consequently, affordability for renters is becoming an issue. Florida families spend more than half their income on rent, lead by a shrinking in the inventory of rental units and the increase of rental prices.
According to the Brooking Institute, a research leader non-profit organization for solving problems facing society at the local, national and global level, the supply of affordable condos within the $200,000 – $300,000 range in Miami-Dade has been shrinking, while the county’s median household income stays at $45,900.
The advice for investors looking for condos is to do their homework, analyze their investment prior to commitment, and align their costs with the return. Also, to look for alternatives outside the multi-million-dollar market areas with lower prices. An example of these areas is Homestead which has been undervalued, but where a significant appreciation has been occuring during the last two years.
Despite the variation in inventory supply, price, and climate change among other factors, it is well known that Miami-Dade is still one of the most attractive markets in the country to invest in real estate.
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The relationship between an agent and buyers is a delicate dance that begins long before the sale and ends long afterward (if it ever ends at all). However, that process can be derailed when you’re not offering buyers the right touch points to make them feel special and keep yourself top of mind when it comes to their real estate needs. Here are X ways to create valuable touch points between buyers and sellers that will pay dividends down the road.
Make Yourself Helpful
You’re the expert on your region. Don’t just tell people, show people. Create a one-sheet or packet that includes all the relevant information a new buyer might need to feel comfortable buying a home here. Then pass it out to local businesses, local government offices, local hotels, and anyone else you can think of. Foster relationships so that when someone shows up asking questions, the company has your packet handy and ready to go. Don’t forget to plaster your face and contact info all over it, and show off your personality a little bit, so people feel like they get to know you. Then, when they’re ready to get serious about buying, they’ve already got your information handy and your face in their mind.
Make Everyone a V.I.P.
All your clients should be V.I.P.s for you, so make sure they know it. Plan an event and invite all of your leads and potential buyers as well as those who bought a home from you. Also, ask service providers that you work with (or want to work with). Roll out the red carpet. Get a photographer. See if you can get some local press to show up and cover the event. Hand out goody bags to all the guests. Make sure everyone leaves the party feeling valued and worthwhile because that’s what he or she is going to remember.
Make Yourself Available Online
Being personable in the real world is important but don’t think you can’t do the same thing online. That packet you made should also be available electronically. You can even expand it into an ebook full of experiences and tips. You want an online presence, but it takes more than just starting a Twitter account or opening a Facebook page. Interact with every comment, whether it’s a response or alike. Invite anyone and everyone to follow your pages. Encourage engagement by asking questions, proposing ideas, and inquiring about feedback.
Make Matches For Others
Part of the process for building your brand and touching other people is to make “selfless” acts. Helping to develop relationships in the community for others will come back to you in significant ways. If you know someone running a charity who needs help finding backers, put them in touch with good people you know in the community. If you have potential buyers or actual buyers who have trouble meeting new people, host a mixer at a local bar. Think that two local businesses might be able to help each other out? Put them in the room together and let them sort it out. You might not find immediate benefits from these touch points, but they’re the kinds of things people remember six months or a year later when they’re looking for help.
Make Sure to Follow Up
The end of the transaction isn’t the end of the relationship. Even if the sale falls through, there are ways to keep in touch with potential buyers without being a pest. A great way to stay in touch is to find an article that would be of interest to their specific needs and then send it there way with a note reading “thought this might interest you.” You can even find a neat article that speaks to a general audience and send it through a mail merge, so it looks more personalized. Not everyone will respond but you might be surprised to hear from a few people, and that’s your cue to follow up and see what their current needs might be.
Make a note of Special Dates
Chances are you’ve got a database full of information about your clients, past and present. Put it to good use any way you can. One great way to do that is to keep track of birthdays, anniversaries, and special occasions. Set up a system where you can be alerted when a client’s special day is coming up and then make sure you send them something. Could be a card, could be an email, whatever it is, make contact. If you want to take it to the next level, set up Google Alerts for the names of clients and see what pops up. You might find out that someone got a promotion or had a special event. Then you can reach out and offer your congrats. Who knows what might follow.
Make a note of Holidays, Too
While we’re keeping track of special days, why not keep track of holidays as well? Run through the calendar and call out opportunities you might have to reach out to your contacts and partners. Sure there are the big days like Memorial Day, Thanksgiving, and Christmas, but don’t overlook the secondary holidays that offer you a chance to get creative and stand out. Groundhog Day, Flag Day, and Veteran’s Day offer lots of opportunities for unique messages, mailings, and offers. Also, then there are all of the wacky holidays that seem to pop up all the time (National Hot Dog Day, National Hot Sauce Day). Surely you can have a field day getting creative in your messaging around them.
Make More Quality Interactions
A quality interaction can best be described as something more than just a phone call or email. We’re talking about in-person meetings or get-togethers. It can be one-on-one, but it doesn’t have to be. This could be you showing up at meetings for local clubs, at places of worship, for special nights at the local tavern, or at a fraternal organization. It’s not just about showing up, either, it’s about making your presence known. That could be anything from a sponsorship to speaking up to just walking the room and introducing yourself. Don’t wait for opportunities to present themselves, every person there is a potential client or a current one who is waiting for the right motivation.
Title Partners of Florida is here to support your business
Have questions about making sure your next real estate transaction sails smoothly to a successful closing? You can make the process seamless and hassle-free by contacting Title Partners of Florida.
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Tough competition. Low listing inventory. Hesitant sellers. There are a lot of things working against real estate agents these days, especially if they’re not doing anything to help themselves. Those who can push themselves to discover the unique ways to find clients and create listings are the ones who are going to rise above the crowd and find success in any market. Here are 25 ways for real estate agents to get listings no matter where they are and how the market is doing.
Send a Newsletter
You’ve got contacts, why aren’t you using them? Rather than bombarding them with random emails, set up a newsletter that you send out every week. Fill it with useful information, including available homes, tips for selling homes, and advice about the best ways to list or sell a home. It’s bound to generate at least a few looks and leads, not to mention its the kind of thing that gets passed around to friends and family.
Facebook Live Event
Having a Facebook page is a no-brainer but there’s only so many articles and photos you can link to. If you want to do something that stands out, host a Facebook Live event. Doesn’t have to be fancy. Could be you in the field or just you in your kitchen. What’s important is that you’re providing good information or ideas and you’re putting your face in front of potential sellers. Plus, the video lives on long after you’ve recorded.
Join Online Groups
Social media giants like Facebook and Twitter have segments much of the internet but there are still plenty of subgroups and smaller places where people gather to talk shop. Look around for real estate or regional groups where you can join the conversation. Don’t bombard people with sales pitches. Instead, add value to the ongoing conversations. Ask questions. Provide feedback. And once you’ve established yourself, you can dig a little deeper.
Start a Blog
Another thing that many people assume is old news because of social media is blogging. Sure it’s not what it used to be but it’s still relevant enough. Create a blog on WordPress or Medium or even on LinkedIn. Update it regularly. Think about important questions to answer and how to show up in search results by using keywords. It’s also a great shorthand way to share info quickly when asked for it.
Segment Your Database
You’ve got all your Facebook followers, Twitter followers, and newsletter followers. Break them down by category. Whatever categories make sense, even if they’re not specific to home listings. So when you have something interesting to share about local food joint or a new ordinance in a certain town, you’ve got a specific, targeted list to hit with that information.
Search Social Media Hashtags
You never know what you’re going to find on social media. There are specific hashtags that people might use if they’re considering listing their home, such as #IWantToMove, #LookingToMove, #MakeMeMove, and more. Get creative in your searches and see what’s out there. Leave no hashtag stone unturned. Check Twitter, Facebook, Instagram, and LinkedIn.
Go Behind the Scenes
A video is one of the best ways to connect with potential clients on the internet. Whether you’re holding an open house, touring a potential property, or walking through a sale, record it and use the video as a way to sell yourself and the benefits of the situation. Let people see how normal and simple the home selling process is as demystifying it will make it easier for them to say yes.
Keep in Touch
You helped a client sell a home three or four years ago. Why aren’t you keeping in touch with them? You might be missing out on an opportunity you didn’t realize existed. Maybe they have to move for a job. Maybe a life change requires them to sell. Maybe they’ve decided to buy a bigger place. The only way to know is to keep in touch.
Ask for an Introduction
Your contact list might not be interested in selling a home, but surely they know someone who might. You’ve cultivated a good relationship with these people, why not ask for the favor of an introduction to a friend or family member who might be interested in your services? There’s no better word-of-mouth and it’s right there in your contact list.
Be Social in Public
Every time you walk into a supermarket or hang out at a pool, you’re surrounded by potential listings. You don’t want to be salesly 24 hours a day but don’t be afraid to interact, introduce yourself, and engage whenever possible. You never know when a friendly conversation might lead to a discussion about a potential home sale.
Look for Expired Listings
People often try to sell a home themselves and it just doesn’t work out. You can usually tell if an FSBO listing has expired that something went wrong. That’s your opportunity to offer your services and make it more likely the home sells next time around. Don’t assume that just because someone went solo the first time they won’t take your help the next time around.
Invite Neighbors to Open Houses
If you’re hosting an open house in a neighborhood, there’s no reason not to invite every single neighbor who lives nearby. They might not be interested in buying this house but they might be interested in finding out how much it’s going for, how their home matches up, and what you’re doing to help it sell. From there, it’s your opportunity to prove you can do for them what you’re doing here.
Look for Empty Nesters
It stands to reason that older couples are eventually going to want to downsize or move into a retirement or active adult community. It doesn’t hurt to make yourself available and let them know you’re on standby whenever they’re ready. Doing so might be the nudge they need to list their home and start the process. Check the records to see who bought a large house 20 years ago and doesn’t need it anymore.
Stop by Garage Sales
Take a Sunday ride around the neighborhood and stop by any garage or estate sale you happen upon. Perhaps the owners are prepping for a move, or at the very least looking to declutter because they’re considering listing. Offer your expertise and start a conversation. Who knows, maybe someone who shows up looking for a chair ends up becoming your client instead.
Zillow’s Make Me Move Number
Homeowners can post their “Make Me Move” amount on Zillow and it’s basically an invitation from buyers and agents to see if they can meet or exceed it. Take a look at which owners are doing this, pick up the phone, and see what they have to say. They’re obviously motivated enough to do that, who knows what it might take to motivate them a little bit further. Ask to check out the home and go from there.
Have questions about making sure your next real estate transaction sails smoothly to a successful closing? You can make the process seamless and hassle-free by contacting Title Partners of Florida.
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As a small business owner, you should always pay close attention to the business trends that could impact your business revenues. Some trends may bring more business to your door while other trends may not be that beneficial. However, knowing the trends is always a great way to keep up with the industry and what influences customers.
2018 Business Trends That May Impact Your Small Business
Independent Contractors and Telecommuting
Telecommuting has been a growing trend for some time. Many companies hire employees who work from home full-time. The employees only come into the office periodically. Telecommuting can save money for employers by reducing the cost of providing space and equipment for in-house employees.
However, a growing trend for 2018 is the use of a flexible workforce of independent contractors. Employers are discovering they can save even more moneyby utilizing on-demand workers to complete specific projects or handle overflow when business picks up. Because these individuals are not employees, you can reduce payroll taxes and benefits while increasing and decreasing your workforce based on demand.
Methods of Payment
We have been moving toward a cashless society for decades. That business trend will continue and grow in 2018 and beyond. Many people do not even have checks for their bank accounts because they use debit cards or credit cards for all purchases. However, you will see a growing number of your customers requesting digital payments instead of plastic payments.
Digital paymentssuch as GoPayment, Apple Pay, and Square will become more popular. As a small business owner, you need to do your research and get on board, oryou could lose customers to companies that offer digital payment options.
Use of Artificial Intelligence in Small Businesses
Artificial Intelligence(AI) is no longer onlyfor huge corporations and government agencies. AI is being usedin small businesses throughout the United States. From customer service solutions to marketing systems, AI is becoming a beneficial tool for many small businesses. During 2018 and beyond, the use of AI in many industries is expected to increase.
Niche or Specialty Products and Markets
From microbreweries and all-cold food restaurants to nothing over $5 jewelry start-ups, niche businessesare picking up steam. Small businesses can stand out from the rest of the crowd by offering a specialty product or niche brand. Taking advantage of a specialty market and targeting “niche friendly” Millennials may be one of the biggest trends in business for 2018.
Crisis Planning and Preparedness
It is essential that small businesses have a crisis plan and invest time in crisis preparedness. With the number of disasters occurring throughout the United States from floods and hurricanes to wildfires and other disasters, small businesses that are not preparedfor a crisis may never reopen. Many small businesses will begin investing in disaster planning and preparednessin 2018 and beyond.
Title Partners of Florida is here to support your business
Have questions about making sure your next real estate transaction sails smoothly to a successful closing? You can make the process seamless and hassle-free by contacting Title Partners of Florida.
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For many, social media is the place to catch up on the latest memes, let everyone know what you had for dinner, and share copious amounts of dog photos. For real estate agents, however, social media can be one of the best tools in your toolbox when it comes to generating leads and referrals.
By strategizing smartly and focusing on key demographics, real estate professionals can wield their Facebook, Twitter, Instagram, and LinkedIn accounts like a net, constantly scooping up potential clients from corners you didn’t even know they were lurking in. And considering how many real estate agents are out there in your neighborhood, city, county, and state, the more refined your strategy, the more likely you are to stand out from the crowd and catch the eye of your next big sale before they notice someone else.
Here are four ways you grow leads and referrals through social media.
Figure Out Your Audience And Target Them
If there is anything social media is good at from an advertising perspective, it’s allowing you to pinpoint your audience and direct your message to them and only them. So why wouldn’t you take the time to understand exactly who that’s supposed to be?
It starts simply. How old are you target buyers? Do you sell starter homes to millennials or are you selling active adult community homes to baby boomers? Are you usually dealing with men or women? Do your buyers usually have college educations? Are they from a specific town or county? Is there a price range that your client base usually abides within? What kind of preferences do they often look for when buying a home, location or features? Ask yourself all of these questions and more in order to figure out the kind of audience you need to be targeting with your message.
Pick Your Platforms
Not all social media platforms are created equal. Just because something works on Facebook that doesn’t mean it’s going to work on Twitter. Users go to those sites for different reasons and with different goals in mind.
Facebook remains the gold standard when it comes to building up a dedicated audience and being able to target them with your message. Not only is it a requirement that you have a Facebook page but you also want to make sure you’re keeping it stocked with quality content that provides urgent messaging about upcoming property opportunities. Engage with everyone who comes into contact with your page, be it with a message, a comment, a like, or an invite. And take full advantage of Facebook Ads so you can target that message to potential clients and new audiences receptive to the properties and opportunities you’re offering.
Don’t sell LinkedIn short just because it’s more of a professional social media platform. Professionals buy homes, you know. Just as you do on Facebook it’s important to maintain a presence with a fully fleshed out profile and a steady flow of content. Consider how you can become an influencer here and build up a base of long-term client potential.
Instagram is a visual platform and who doesn’t think real estate works as a visual business? A steady stream of enticing and engaging image posts can help you quickly drum up a client base and influence potential buyers to reach out because the image in your feed is too much to pass up. Don’t forget the hashtags!
Twitter can be a tricky platform for real estate agents. It can be tough to build up a follower count even if you’re tweeting out content each day. In order to really build up a base, you need to not only share information but be engaging. Being a link farm won’t cut it. If you’re going to try it, really go for it. Tweet out thoughts, open-ended questions, and polls. Start a dialogue. Retweet others. Respond to contemporaries. Become a resource. The followers will, for lack of a better term, follow.
Hone Those Hashtags
We mentioned it before but it bears repeating: Hashtags matter. Especially when you’re starting out, hashtags act as a shortcut to reaching potential clients who are already engaged and interested in the ideas you’re talking about. It’s common to see Instagram posts laced with hashtags that connect new audiences to what you’ve got to say and, often, some of those people don’t just like, they follow. And when they follow, then you can hook them.
Don’t be afraid to think big with hashtags. Yes, you want to figure out the relevant and effective tags for your region and local buyers, but don’t be afraid to piggyback on national and trending hashtags. Check out hashtags that HGTV shows and national real estate brands are using and consider peppering them into your posts. You never know who is watching and clicking.
Don’t go too crazy, however. Too many hashtags, especially on Facebook and Twitter, start to make your messaging look like spam. On those sites consider focusing on smart choices. On Instagram, however, let loose with as many as 30-to-40 hashtags that make sense for what you’re trying to accomplish.
Get to Know Retargeting
Ever wonder how ads for items and products you’ve previously shopped for suddenly start showing up in random places on the internet? That’s ad retargeting. The strategy uses cookies that have been dropped on your browser that keep tabs on the sites you visit and things you do.
How can you put retargeting to work for you? Drop a tracking pixel on your website and then it will follow users as they travel to social media sites such as Facebook, Instagram, and Pinterest. The cookie lets your ad company know and it automatically sends whatever message you’d like to show up to their browser so they’re getting information about listings and properties that you want to promote. You can even target the ads so that they only appear for specific kinds of visitors (which is why we wanted you to figure out your key demo!).
This is just the start but if you can master these simple tips and tricks, you’ll already be ahead of the game and generating leads like never before.
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The 7 Most Common Reasons Real Estate Transactions Fail
You’ve got the contract signed, the closing is approaching quickly, and the last thing you want to happen is for the real estate transaction to fall apart just before the closing date. Why do so many deals fall apart at the last minute? How can these fails be prevented?
Getting a real estate contract signed is just the first step in the transaction process. It’s when the real fun and work begins. This is where the best shine and gain an edge in their market, while the rest slink back off to oblivion.
Failed closings are tragic for a buyer, seller, and real estate agent or broker. They can be expensive, stressful and demoralizing as a buyer or seller. As a Realtor, they cannot only rob you of your paycheck you were so eagerly counting on but dent your reputation and make future business harder.
Depending on the market temperature and mortgage lending landscape anywhere from 3% to 30% of pending sales contracts can fall through. That number can be dramatically lowered, and completion metrics increased if all the parties involved are more knowledgeable about the frequent glitches and how to get out ahead of them.
Here are seven common reasons you deal could fall apart, and how to beat it.
Appraisals
This one should be no surprise. Appraisals are the notorious Achilles heel of real estate transactions. If it comes in too high, the seller can try to back out and relist for more money. More often, the appraisal comes in low. That can scare off buyers and wreak havoc with mortgage loan applications. As a Realtor, you’ve got to know your values and comps the way appraisers and lenders look at them. Know how to successful rebut bad appraisals. Have a plan for renegotiating or restructuring the deal with your clients in advance. Agents should probably consider taking the appraiser licensing course for their continuing education credits and master this part of the business.
Mortgage Lenders
For as easy technology has made the rest of our lives, mortgage lending is still incredibly inefficient. From gaps between pre-qualification letters and underwriting to continually changing influences behind the scenes, disconnected underwriters and meticulous paperwork burdens. Many issues can come up. Often they show up right at the last minute, the day before closing. Typically in final reviews and appraisal reviews. Agents can help their clients ace this by knowing loan program qualifications and quirks. Be sure buyers are working with a loan officer who will help them preempt any last-minute conditions that will stall the transaction.
The Buyer
Buyer’s remorse can be an issue. It’s easy to get a buyer to fall in love with a property and e-sign the purchase contract. The longer the closing takes, the more time they have to have second thoughts. If things start to go wrong, like significant repairs being uncovered, the market changes or their loan interest rate goes up. They can begin to drag their feet and sabotage the deal themselves. More commonly buyers accidentally undermine their home purchases by going shopping for furniture and racking up credit card and store debt during the loan process or quitting a job. Lenders will often do final re-verification right before closing and catch these items. Educate your clients, take time to explain these things and make sure they are sold on the deal upfront to avoid these problems.
Liens
Sellers can forget, be unaware of, or get hit with liens and new debts on their property during the process. This can deplete their anticipated sales proceeds or mean they have to bring money to the closing table to sell. That can cause many sellers to back out. These items can include past due property taxes, mechanics liens, HOA, and condo association special assessments, additional loans or lines of credit attached to the property and code violations. These surprises can be avoided by using an experienced Florida title insurance company who gets on the job to perform title and lien searches early and knows how to proactively tackle potential issues and keep the deal alive.
Uninsurable Title
While the market has bounced back in a big way since 2008, the foreclosure crisis has also really messed up the titles and chain of titles on many properties. Between lender robo-signing fraud, overly creative attempts to stop foreclosure, auctions, and house flips, many properties are being advertised out there that buyers may not be able to get title insurance on. At least not to the level a new mortgage lender is going to expect. Pulling title early, or as a listing agent even ordering preliminary title searches and home inspections can save much stress, lost time and deal fails.
Condo & HOA Approvals
Some associations can be a real drag on real estate deals. Lengthy and inefficient buyer approval times, stringent qualifications and even personal prejudices can burn precious time or crush contracts. It’s smart to know your associations before showing buyers property and to work with other professionals who have relationships with them and know how to get approvals expedited.
Delays
Many of the above items can cause delays. As can sellers and buyers realizing their ID is out of date or being slow to send funds for closing. Some sellers and listing agents are gracious about granting contract extensions. Others get greedy and see a chance to grab the buyer’s earnest money deposit. Give your contracts extra time so that issues can be worked out and educate clients on the reality of trying to sue over deposit funds.
Have more questions about making sure your next real estate transaction sails smoothly to a successful closing? You can make the process seamless and hassle-free by contacting Title Partners of Florida.
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Are Luxury Condos Still a Profitable Real Estate Investment?
NewsThe profitability of renting luxury condominiums in South Florida is yet to be proven. The high inventory and output of extravagant amenities determining high prices, tied to the stagnation of wage-increase for potential renters has been a sign of trouble for the investors’ industry.
For investors, these condos lost their attraction to be considered a sound, profitable investment, after evaluating the cost of association fees, assessments, and taxes.
The downturn in prices for these condos, “already happened” said Josh Migdal, Miami attorney who represents clients in multiple jurisdiction and is known for his work on behalf of the Federal Deposit Insurance Corporation (FDIC) in the wake of mortgage meltdown and the condo market.
Huge Supply of Million Dollar Condos
The condo oversupply is clear in luxury projects, yet absent in affordable projects. Condo Vultures’ website who weekly distributes the Market Intelligence Report for residential real estate in Miami-Dade, Broward, and Palm Beach counties, recently reported that there is a 70-month supply for condos costing at least $1 million.
Last year, a news report found a “home luxury glut”. There was a 124% increase of condos and luxury properties over the same time in comparison to the previous four years.
Last year, Ron Shuffield, President of EWM Realty International, a 54-year-old real estate brokerage, with 10 offices in South Florida said, “There are more properties on the luxury market right now than we’ve ever had in history.”
Peter Zalewski, founder of Condo Vultures, told the Herald, “there’s a 32-month supply of condos in downtown Miami alone, so the only way you’re going to move a condo in this market is to lower your price.”
Although in the second quarter of 2017, there was a median worth decline for condo/townhouse of 22% in zip code 33132, and 10.1% in zip code 33140, the recent trends in Miami real estate luxury prices finally saw a growth in January of 2018, and have reached the highest price gains since July 2005. The luxury market in Miami is growing according to Danielle Hale, chief economist for realtor.com®.
Shrinking Supply of Affordable Condos
There has been a crunch in the affordable housing in United States; consequently, affordability for renters is becoming an issue. Florida families spend more than half their income on rent, lead by a shrinking in the inventory of rental units and the increase of rental prices.
According to the Brooking Institute, a research leader non-profit organization for solving problems facing society at the local, national and global level, the supply of affordable condos within the $200,000 – $300,000 range in Miami-Dade has been shrinking, while the county’s median household income stays at $45,900.
The advice for investors looking for condos is to do their homework, analyze their investment prior to commitment, and align their costs with the return. Also, to look for alternatives outside the multi-million-dollar market areas with lower prices. An example of these areas is Homestead which has been undervalued, but where a significant appreciation has been occuring during the last two years.
Despite the variation in inventory supply, price, and climate change among other factors, it is well known that Miami-Dade is still one of the most attractive markets in the country to invest in real estate.
Creating Touchpoints Between Buyers and Sellers
UncategorizedThe relationship between an agent and buyers is a delicate dance that begins long before the sale and ends long afterward (if it ever ends at all). However, that process can be derailed when you’re not offering buyers the right touch points to make them feel special and keep yourself top of mind when it comes to their real estate needs. Here are X ways to create valuable touch points between buyers and sellers that will pay dividends down the road.
Make Yourself Helpful
You’re the expert on your region. Don’t just tell people, show people. Create a one-sheet or packet that includes all the relevant information a new buyer might need to feel comfortable buying a home here. Then pass it out to local businesses, local government offices, local hotels, and anyone else you can think of. Foster relationships so that when someone shows up asking questions, the company has your packet handy and ready to go. Don’t forget to plaster your face and contact info all over it, and show off your personality a little bit, so people feel like they get to know you. Then, when they’re ready to get serious about buying, they’ve already got your information handy and your face in their mind.
Make Everyone a V.I.P.
All your clients should be V.I.P.s for you, so make sure they know it. Plan an event and invite all of your leads and potential buyers as well as those who bought a home from you. Also, ask service providers that you work with (or want to work with). Roll out the red carpet. Get a photographer. See if you can get some local press to show up and cover the event. Hand out goody bags to all the guests. Make sure everyone leaves the party feeling valued and worthwhile because that’s what he or she is going to remember.
Make Yourself Available Online
Being personable in the real world is important but don’t think you can’t do the same thing online. That packet you made should also be available electronically. You can even expand it into an ebook full of experiences and tips. You want an online presence, but it takes more than just starting a Twitter account or opening a Facebook page. Interact with every comment, whether it’s a response or alike. Invite anyone and everyone to follow your pages. Encourage engagement by asking questions, proposing ideas, and inquiring about feedback.
Make Matches For Others
Part of the process for building your brand and touching other people is to make “selfless” acts. Helping to develop relationships in the community for others will come back to you in significant ways. If you know someone running a charity who needs help finding backers, put them in touch with good people you know in the community. If you have potential buyers or actual buyers who have trouble meeting new people, host a mixer at a local bar. Think that two local businesses might be able to help each other out? Put them in the room together and let them sort it out. You might not find immediate benefits from these touch points, but they’re the kinds of things people remember six months or a year later when they’re looking for help.
Make Sure to Follow Up
The end of the transaction isn’t the end of the relationship. Even if the sale falls through, there are ways to keep in touch with potential buyers without being a pest. A great way to stay in touch is to find an article that would be of interest to their specific needs and then send it there way with a note reading “thought this might interest you.” You can even find a neat article that speaks to a general audience and send it through a mail merge, so it looks more personalized. Not everyone will respond but you might be surprised to hear from a few people, and that’s your cue to follow up and see what their current needs might be.
Make a note of Special Dates
Chances are you’ve got a database full of information about your clients, past and present. Put it to good use any way you can. One great way to do that is to keep track of birthdays, anniversaries, and special occasions. Set up a system where you can be alerted when a client’s special day is coming up and then make sure you send them something. Could be a card, could be an email, whatever it is, make contact. If you want to take it to the next level, set up Google Alerts for the names of clients and see what pops up. You might find out that someone got a promotion or had a special event. Then you can reach out and offer your congrats. Who knows what might follow.
Make a note of Holidays, Too
While we’re keeping track of special days, why not keep track of holidays as well? Run through the calendar and call out opportunities you might have to reach out to your contacts and partners. Sure there are the big days like Memorial Day, Thanksgiving, and Christmas, but don’t overlook the secondary holidays that offer you a chance to get creative and stand out. Groundhog Day, Flag Day, and Veteran’s Day offer lots of opportunities for unique messages, mailings, and offers. Also, then there are all of the wacky holidays that seem to pop up all the time (National Hot Dog Day, National Hot Sauce Day). Surely you can have a field day getting creative in your messaging around them.
Make More Quality Interactions
A quality interaction can best be described as something more than just a phone call or email. We’re talking about in-person meetings or get-togethers. It can be one-on-one, but it doesn’t have to be. This could be you showing up at meetings for local clubs, at places of worship, for special nights at the local tavern, or at a fraternal organization. It’s not just about showing up, either, it’s about making your presence known. That could be anything from a sponsorship to speaking up to just walking the room and introducing yourself. Don’t wait for opportunities to present themselves, every person there is a potential client or a current one who is waiting for the right motivation.
Title Partners of Florida is here to support your business
Have questions about making sure your next real estate transaction sails smoothly to a successful closing? You can make the process seamless and hassle-free by contacting Title Partners of Florida.
15 Ways for Real Estate Agents to Get Listings
UncategorizedTough competition. Low listing inventory. Hesitant sellers. There are a lot of things working against real estate agents these days, especially if they’re not doing anything to help themselves. Those who can push themselves to discover the unique ways to find clients and create listings are the ones who are going to rise above the crowd and find success in any market. Here are 25 ways for real estate agents to get listings no matter where they are and how the market is doing.
Send a Newsletter
You’ve got contacts, why aren’t you using them? Rather than bombarding them with random emails, set up a newsletter that you send out every week. Fill it with useful information, including available homes, tips for selling homes, and advice about the best ways to list or sell a home. It’s bound to generate at least a few looks and leads, not to mention its the kind of thing that gets passed around to friends and family.
Facebook Live Event
Having a Facebook page is a no-brainer but there’s only so many articles and photos you can link to. If you want to do something that stands out, host a Facebook Live event. Doesn’t have to be fancy. Could be you in the field or just you in your kitchen. What’s important is that you’re providing good information or ideas and you’re putting your face in front of potential sellers. Plus, the video lives on long after you’ve recorded.
Join Online Groups
Social media giants like Facebook and Twitter have segments much of the internet but there are still plenty of subgroups and smaller places where people gather to talk shop. Look around for real estate or regional groups where you can join the conversation. Don’t bombard people with sales pitches. Instead, add value to the ongoing conversations. Ask questions. Provide feedback. And once you’ve established yourself, you can dig a little deeper.
Start a Blog
Another thing that many people assume is old news because of social media is blogging. Sure it’s not what it used to be but it’s still relevant enough. Create a blog on WordPress or Medium or even on LinkedIn. Update it regularly. Think about important questions to answer and how to show up in search results by using keywords. It’s also a great shorthand way to share info quickly when asked for it.
Segment Your Database
You’ve got all your Facebook followers, Twitter followers, and newsletter followers. Break them down by category. Whatever categories make sense, even if they’re not specific to home listings. So when you have something interesting to share about local food joint or a new ordinance in a certain town, you’ve got a specific, targeted list to hit with that information.
Search Social Media Hashtags
You never know what you’re going to find on social media. There are specific hashtags that people might use if they’re considering listing their home, such as #IWantToMove, #LookingToMove, #MakeMeMove, and more. Get creative in your searches and see what’s out there. Leave no hashtag stone unturned. Check Twitter, Facebook, Instagram, and LinkedIn.
Go Behind the Scenes
A video is one of the best ways to connect with potential clients on the internet. Whether you’re holding an open house, touring a potential property, or walking through a sale, record it and use the video as a way to sell yourself and the benefits of the situation. Let people see how normal and simple the home selling process is as demystifying it will make it easier for them to say yes.
Keep in Touch
You helped a client sell a home three or four years ago. Why aren’t you keeping in touch with them? You might be missing out on an opportunity you didn’t realize existed. Maybe they have to move for a job. Maybe a life change requires them to sell. Maybe they’ve decided to buy a bigger place. The only way to know is to keep in touch.
Ask for an Introduction
Your contact list might not be interested in selling a home, but surely they know someone who might. You’ve cultivated a good relationship with these people, why not ask for the favor of an introduction to a friend or family member who might be interested in your services? There’s no better word-of-mouth and it’s right there in your contact list.
Be Social in Public
Every time you walk into a supermarket or hang out at a pool, you’re surrounded by potential listings. You don’t want to be salesly 24 hours a day but don’t be afraid to interact, introduce yourself, and engage whenever possible. You never know when a friendly conversation might lead to a discussion about a potential home sale.
Look for Expired Listings
People often try to sell a home themselves and it just doesn’t work out. You can usually tell if an FSBO listing has expired that something went wrong. That’s your opportunity to offer your services and make it more likely the home sells next time around. Don’t assume that just because someone went solo the first time they won’t take your help the next time around.
Invite Neighbors to Open Houses
If you’re hosting an open house in a neighborhood, there’s no reason not to invite every single neighbor who lives nearby. They might not be interested in buying this house but they might be interested in finding out how much it’s going for, how their home matches up, and what you’re doing to help it sell. From there, it’s your opportunity to prove you can do for them what you’re doing here.
Look for Empty Nesters
It stands to reason that older couples are eventually going to want to downsize or move into a retirement or active adult community. It doesn’t hurt to make yourself available and let them know you’re on standby whenever they’re ready. Doing so might be the nudge they need to list their home and start the process. Check the records to see who bought a large house 20 years ago and doesn’t need it anymore.
Stop by Garage Sales
Take a Sunday ride around the neighborhood and stop by any garage or estate sale you happen upon. Perhaps the owners are prepping for a move, or at the very least looking to declutter because they’re considering listing. Offer your expertise and start a conversation. Who knows, maybe someone who shows up looking for a chair ends up becoming your client instead.
Zillow’s Make Me Move Number
Homeowners can post their “Make Me Move” amount on Zillow and it’s basically an invitation from buyers and agents to see if they can meet or exceed it. Take a look at which owners are doing this, pick up the phone, and see what they have to say. They’re obviously motivated enough to do that, who knows what it might take to motivate them a little bit further. Ask to check out the home and go from there.
Have questions about making sure your next real estate transaction sails smoothly to a successful closing? You can make the process seamless and hassle-free by contacting Title Partners of Florida.
What Trends Should You Watch For as a Small Business Owner in 2018?
UncategorizedAs a small business owner, you should always pay close attention to the business trends that could impact your business revenues. Some trends may bring more business to your door while other trends may not be that beneficial. However, knowing the trends is always a great way to keep up with the industry and what influences customers.
2018 Business Trends That May Impact Your Small Business
Telecommuting has been a growing trend for some time. Many companies hire employees who work from home full-time. The employees only come into the office periodically. Telecommuting can save money for employers by reducing the cost of providing space and equipment for in-house employees.
However, a growing trend for 2018 is the use of a flexible workforce of independent contractors. Employers are discovering they can save even more moneyby utilizing on-demand workers to complete specific projects or handle overflow when business picks up. Because these individuals are not employees, you can reduce payroll taxes and benefits while increasing and decreasing your workforce based on demand.
We have been moving toward a cashless society for decades. That business trend will continue and grow in 2018 and beyond. Many people do not even have checks for their bank accounts because they use debit cards or credit cards for all purchases. However, you will see a growing number of your customers requesting digital payments instead of plastic payments.
Digital paymentssuch as GoPayment, Apple Pay, and Square will become more popular. As a small business owner, you need to do your research and get on board, oryou could lose customers to companies that offer digital payment options.
Artificial Intelligence(AI) is no longer onlyfor huge corporations and government agencies. AI is being usedin small businesses throughout the United States. From customer service solutions to marketing systems, AI is becoming a beneficial tool for many small businesses. During 2018 and beyond, the use of AI in many industries is expected to increase.
From microbreweries and all-cold food restaurants to nothing over $5 jewelry start-ups, niche businessesare picking up steam. Small businesses can stand out from the rest of the crowd by offering a specialty product or niche brand. Taking advantage of a specialty market and targeting “niche friendly” Millennials may be one of the biggest trends in business for 2018.
It is essential that small businesses have a crisis plan and invest time in crisis preparedness. With the number of disasters occurring throughout the United States from floods and hurricanes to wildfires and other disasters, small businesses that are not preparedfor a crisis may never reopen. Many small businesses will begin investing in disaster planning and preparednessin 2018 and beyond.
Title Partners of Florida is here to support your business
Have questions about making sure your next real estate transaction sails smoothly to a successful closing? You can make the process seamless and hassle-free by contacting Title Partners of Florida.
4 Ways to Grow Leads and Referrals Through Social Media
UncategorizedFor many, social media is the place to catch up on the latest memes, let everyone know what you had for dinner, and share copious amounts of dog photos. For real estate agents, however, social media can be one of the best tools in your toolbox when it comes to generating leads and referrals.
By strategizing smartly and focusing on key demographics, real estate professionals can wield their Facebook, Twitter, Instagram, and LinkedIn accounts like a net, constantly scooping up potential clients from corners you didn’t even know they were lurking in. And considering how many real estate agents are out there in your neighborhood, city, county, and state, the more refined your strategy, the more likely you are to stand out from the crowd and catch the eye of your next big sale before they notice someone else.
Here are four ways you grow leads and referrals through social media.
Figure Out Your Audience And Target Them
If there is anything social media is good at from an advertising perspective, it’s allowing you to pinpoint your audience and direct your message to them and only them. So why wouldn’t you take the time to understand exactly who that’s supposed to be?
It starts simply. How old are you target buyers? Do you sell starter homes to millennials or are you selling active adult community homes to baby boomers? Are you usually dealing with men or women? Do your buyers usually have college educations? Are they from a specific town or county? Is there a price range that your client base usually abides within? What kind of preferences do they often look for when buying a home, location or features? Ask yourself all of these questions and more in order to figure out the kind of audience you need to be targeting with your message.
Pick Your Platforms
Not all social media platforms are created equal. Just because something works on Facebook that doesn’t mean it’s going to work on Twitter. Users go to those sites for different reasons and with different goals in mind.
Facebook remains the gold standard when it comes to building up a dedicated audience and being able to target them with your message. Not only is it a requirement that you have a Facebook page but you also want to make sure you’re keeping it stocked with quality content that provides urgent messaging about upcoming property opportunities. Engage with everyone who comes into contact with your page, be it with a message, a comment, a like, or an invite. And take full advantage of Facebook Ads so you can target that message to potential clients and new audiences receptive to the properties and opportunities you’re offering.
Don’t sell LinkedIn short just because it’s more of a professional social media platform. Professionals buy homes, you know. Just as you do on Facebook it’s important to maintain a presence with a fully fleshed out profile and a steady flow of content. Consider how you can become an influencer here and build up a base of long-term client potential.
Instagram is a visual platform and who doesn’t think real estate works as a visual business? A steady stream of enticing and engaging image posts can help you quickly drum up a client base and influence potential buyers to reach out because the image in your feed is too much to pass up. Don’t forget the hashtags!
Twitter can be a tricky platform for real estate agents. It can be tough to build up a follower count even if you’re tweeting out content each day. In order to really build up a base, you need to not only share information but be engaging. Being a link farm won’t cut it. If you’re going to try it, really go for it. Tweet out thoughts, open-ended questions, and polls. Start a dialogue. Retweet others. Respond to contemporaries. Become a resource. The followers will, for lack of a better term, follow.
Hone Those Hashtags
We mentioned it before but it bears repeating: Hashtags matter. Especially when you’re starting out, hashtags act as a shortcut to reaching potential clients who are already engaged and interested in the ideas you’re talking about. It’s common to see Instagram posts laced with hashtags that connect new audiences to what you’ve got to say and, often, some of those people don’t just like, they follow. And when they follow, then you can hook them.
Don’t be afraid to think big with hashtags. Yes, you want to figure out the relevant and effective tags for your region and local buyers, but don’t be afraid to piggyback on national and trending hashtags. Check out hashtags that HGTV shows and national real estate brands are using and consider peppering them into your posts. You never know who is watching and clicking.
Don’t go too crazy, however. Too many hashtags, especially on Facebook and Twitter, start to make your messaging look like spam. On those sites consider focusing on smart choices. On Instagram, however, let loose with as many as 30-to-40 hashtags that make sense for what you’re trying to accomplish.
Get to Know Retargeting
Ever wonder how ads for items and products you’ve previously shopped for suddenly start showing up in random places on the internet? That’s ad retargeting. The strategy uses cookies that have been dropped on your browser that keep tabs on the sites you visit and things you do.
How can you put retargeting to work for you? Drop a tracking pixel on your website and then it will follow users as they travel to social media sites such as Facebook, Instagram, and Pinterest. The cookie lets your ad company know and it automatically sends whatever message you’d like to show up to their browser so they’re getting information about listings and properties that you want to promote. You can even target the ads so that they only appear for specific kinds of visitors (which is why we wanted you to figure out your key demo!).
This is just the start but if you can master these simple tips and tricks, you’ll already be ahead of the game and generating leads like never before.
The 7 Most Common Reasons Real Estate Transactions Fail
UncategorizedThe 7 Most Common Reasons Real Estate Transactions Fail
You’ve got the contract signed, the closing is approaching quickly, and the last thing you want to happen is for the real estate transaction to fall apart just before the closing date. Why do so many deals fall apart at the last minute? How can these fails be prevented?
Getting a real estate contract signed is just the first step in the transaction process. It’s when the real fun and work begins. This is where the best shine and gain an edge in their market, while the rest slink back off to oblivion.
Failed closings are tragic for a buyer, seller, and real estate agent or broker. They can be expensive, stressful and demoralizing as a buyer or seller. As a Realtor, they cannot only rob you of your paycheck you were so eagerly counting on but dent your reputation and make future business harder.
Depending on the market temperature and mortgage lending landscape anywhere from 3% to 30% of pending sales contracts can fall through. That number can be dramatically lowered, and completion metrics increased if all the parties involved are more knowledgeable about the frequent glitches and how to get out ahead of them.
Here are seven common reasons you deal could fall apart, and how to beat it.
This one should be no surprise. Appraisals are the notorious Achilles heel of real estate transactions. If it comes in too high, the seller can try to back out and relist for more money. More often, the appraisal comes in low. That can scare off buyers and wreak havoc with mortgage loan applications. As a Realtor, you’ve got to know your values and comps the way appraisers and lenders look at them. Know how to successful rebut bad appraisals. Have a plan for renegotiating or restructuring the deal with your clients in advance. Agents should probably consider taking the appraiser licensing course for their continuing education credits and master this part of the business.
For as easy technology has made the rest of our lives, mortgage lending is still incredibly inefficient. From gaps between pre-qualification letters and underwriting to continually changing influences behind the scenes, disconnected underwriters and meticulous paperwork burdens. Many issues can come up. Often they show up right at the last minute, the day before closing. Typically in final reviews and appraisal reviews. Agents can help their clients ace this by knowing loan program qualifications and quirks. Be sure buyers are working with a loan officer who will help them preempt any last-minute conditions that will stall the transaction.
Buyer’s remorse can be an issue. It’s easy to get a buyer to fall in love with a property and e-sign the purchase contract. The longer the closing takes, the more time they have to have second thoughts. If things start to go wrong, like significant repairs being uncovered, the market changes or their loan interest rate goes up. They can begin to drag their feet and sabotage the deal themselves. More commonly buyers accidentally undermine their home purchases by going shopping for furniture and racking up credit card and store debt during the loan process or quitting a job. Lenders will often do final re-verification right before closing and catch these items. Educate your clients, take time to explain these things and make sure they are sold on the deal upfront to avoid these problems.
Sellers can forget, be unaware of, or get hit with liens and new debts on their property during the process. This can deplete their anticipated sales proceeds or mean they have to bring money to the closing table to sell. That can cause many sellers to back out. These items can include past due property taxes, mechanics liens, HOA, and condo association special assessments, additional loans or lines of credit attached to the property and code violations. These surprises can be avoided by using an experienced Florida title insurance company who gets on the job to perform title and lien searches early and knows how to proactively tackle potential issues and keep the deal alive.
While the market has bounced back in a big way since 2008, the foreclosure crisis has also really messed up the titles and chain of titles on many properties. Between lender robo-signing fraud, overly creative attempts to stop foreclosure, auctions, and house flips, many properties are being advertised out there that buyers may not be able to get title insurance on. At least not to the level a new mortgage lender is going to expect. Pulling title early, or as a listing agent even ordering preliminary title searches and home inspections can save much stress, lost time and deal fails.
Some associations can be a real drag on real estate deals. Lengthy and inefficient buyer approval times, stringent qualifications and even personal prejudices can burn precious time or crush contracts. It’s smart to know your associations before showing buyers property and to work with other professionals who have relationships with them and know how to get approvals expedited.
Many of the above items can cause delays. As can sellers and buyers realizing their ID is out of date or being slow to send funds for closing. Some sellers and listing agents are gracious about granting contract extensions. Others get greedy and see a chance to grab the buyer’s earnest money deposit. Give your contracts extra time so that issues can be worked out and educate clients on the reality of trying to sue over deposit funds.
Have more questions about making sure your next real estate transaction sails smoothly to a successful closing? You can make the process seamless and hassle-free by contacting Title Partners of Florida.