How important is photography to selling real estate? Well, it's like bread and butter, mac and cheese, ying & yang. I think you get the point. They are intimately tied together. There is tons of research that discusses in great detail how properties with excellent photos get more traffic. They sell quicker. They sell closer to asking price. The same can be said for almost ANY product being presented on the internet when the viewer has to rely on a combination of images, write-up and reviews.

But being that real estate is such a big investment and so important, It's still surprising some of the bad images you see? How do you get excited about a blurry couch or a a view that isn't real? This and sadly much more is being passed off as something that is supposed to motivate you to see a property... I don't think so.

I'm a broker based in Miami, Florida who has been involved in real estate for over 25 years. To this day I marvel at how much faith and patience property owners put in agents that represent them poorly. These owners are sometimes forced to look past not just bad images but poor marketing, due diligence and communication skills. Don't get me wrong. I'm not bad mouthing the industry as a whole. It's more about pointing out something that happens enough times to warrant a rant on my part...

In fairness to property sellers everywhere, there are contracts and financial pitfalls that potentially bind the seller of a property to less than ideal circumstances. Sometimes out of obligation, friendship, cost, contracts, etc., you end up hoping for a miracle versus planning for success. There are also times when people sell you on an idea of value that may have little to do with the reality of your property? You don't see this phenomenon as much when it comes to rentals or buyers but this does occur more frequently when related to sellers of real estate.

So what are the things a property seller can do in these types of situations? You can hire your own photographer to improve those bad real estate photos and potentially someone to writeup the language to describe your home. Review the terms of your contract with the brokerage you signed with to see what your options are to cancel, amend, etc. You could have the broker assign a different agent? Ask to review the due diligence used to arrive at the value of your property. How does it relate to recent comparable sales in your area? What marketing channels are they using and how frequently? Do they understand what makes your place special or different? Good or bad?

In terms of evaluating a properties worth, there are at least three relatively automated pricing systems being used in the industry. Each has its own way to arrive at a range of value for just about any property. That being said, not any one pricing system is an absolute and all should be treated with a grain of salt. The personal experience of the brokerage and agent combined with these analytical systems is always better than trusting the numbers solely.

In our brokerage here in South Florida, these are the minimum items we expect to cover and discuss. There is a lot more that goes on in the background to keep things moving smoothly, but this is a good starting point.

So, if you are thinking of selling or are in the midst of selling, treat this little rant as the basis of a series of questions you want to ask yourself and whoever you are working with or might be working with in the future. Remember, bad real estate photos of your blurry couch or that modern art inspired photo of your refrigerator, might really be a cry for help on a much bigger scale.

So then you might say that you have a great IDX plugin where potential clients can search to their hearts content? Well, ok. but a key component of IDX is how interactive you can get with potential clients and how easily they can share info amongst those they care for. IDX IS important but never make a client feel like they are working for themselves.

What to do?

BLOG!

Maybe that is the solution? Short answer. Again, no. But you're headed in the right direction! You should be writing about things that matter to you and your potential clients in your market. Topics should avoid being overly generic or watered down and have a call to action.

Speaking of calls to action. In some circles, that means culling personal information from people who visit your blog, website or other media. What it should really mean is giving people a compelling reason to contact you versus someone else. What makes you the go to person? What makes you different?

Mail Marketing!

You might say that you'll cover your target market in pamphlets, flyers, cards, brochures and the like. Snail mail has dropped significantly in use over the years. You will see some top brokers using it but again it is a part of a larger scheme or campaign. So, by itself, not enough.

Are you starting to get a sense of where I am headed with this? 🙂

3rd Party Social Media Marketing

So, now you are thinking to yourself. Ah Ha! I'll market myself through companies that target what I am looking for and or a specific demographic. You are headed in the right direction and getting warmer, but you're still not there yet "young grass hopper". Being nuanced and targeting specific parts of a market is great. But, be clear on why you are targeting them. Make sure that your message is clear. Here is where the concept of A/B testing comes into play. That's fancy talk for if one message doesn't resonate, change it and test to see which is getting to your target audience. It's the results that matter.

Social Media Influencer

So then you say, I'll become a social media "influencer" and drive people to me from my amazing videos and still photography! Ok, wonderful thought but that is a percentage of a percentage of the overall social media market. The good news, this is definitely part of the right direction to head in, but you don't need to be a social media star to accomplish your goals.

The abbreviated answer to succeeding with a real estate website is: ALL OF THE ABOVE.

Yup. Look at successful realtors that do not have a specific network or started fresh in a market and you'll find all of the above methods and systems being employed with lots of personal tweaks and flare. And don't forget the old fashioned get to know your neighbors by physically meeting people. I know. Crazy! Meeting people physically in this day and age of digital nirvana is unheard of... At any given moment you will find someone somewhere, phone in hand, walking into a wall, pole or another person also on their electronic device while lost in their text, snapchat, etc. These folks need homes as well in "meatspace".

If this seems like a lot of things to handle or if you are not familiar with all this jargon, don't fret. If you are sincerely interested in being successful, then these are things you need to consider and or become familiar with. For some people, the best route is to team up.

This can take many forms but the main concept is finding a like minded person(s) with whom you can divide up the tasks and delegate those you can't stay ahead of. Ideally, you would want a brokerage that understands these things and can give you assistance. A brokerage firm that understands and can assist you in these endeavors is extremely valuable and important to your success. If you are a realtor in South Florida, contact us we might be your right fit! And there, gentle reader, is a shameless plug of my own real estate brokerage firm. We can make the real estate website process easier!

Combining the skills and knowledge of a proactive real estate brokerage with you and or your teams desire to succeed, and the likelihood of success starts to go up really fast. Remember, even though you are a business unto yourself, you don't need to go it alone.

So take that real estate website of yours and combine it with the above tools and you will have a hub and spoke system geared toward longterm success. Just remember, YOU ARE THE HUB. One tool by itself is usually not enough. Combining them and being flexible and true to your voice is the way to go.

Finally, there is no need to feel overwhelmed. Planning, organization and perseverance are your closest friends and allies. Effectively, you are turning yourself into a walking retail brand that people will recognize as relevant and worth contacting if you do things right. One of the things we as a brokerage do (or any brokerage should be doing), is to help you establish your brand. The end game is for you to become a point of contact that engages interested people looking for the help of a qualified Realtor.

To learn more contact us HERE

New home sales fall in March

WASHINGTON (AP) – April 23, 2015 – Sales of new U.S. homes plummeted in March, as the spring buying season opened with sharp declines in the Northeast and South.

The Commerce Department said Thursday that new home sales fall to 11.4 percent in prior month to a seasonally adjusted annual rate of 481,000. This marks a swift reversal from an annual sales pace of 543,000 in February, which had been the strongest performance in seven years.

Purchases of new homes have been volatile on a monthly basis, although sales during the first quarter of 2015 are higher than in 2014. The volatility points to a real estate market still finding its footing in the aftermath of the housing bubble that triggered the Great Depression in 2007 and the sluggish recovery that has followed.

New-homes sales last month plunged 33 percent in the Northeast and 15.8 percent in the South, while the West registered a slight loss and the Midwest reported a modest gain. The median sales price fell 1.7 percent since March 2014 to $277,400.

Despite last month's sales decline, homebuilders are hopeful now that the spring buying season will draw more buyers.

Winter storms in January and February closed construction sites and likely pushed back potential March sales to later in the year. At the same time, a year-long hiring spree coupled with low mortgage rates has expanded the number of people shopping for a home.

The National Association of Home Builders/Wells Fargo builder sentiment index increased four points to 56 in April. Readings above 50 indicate more builders view sales conditions as good, rather than poor.

The outlook for sales of single-family houses over the next six months climbed to its highest level since December. Measures of current sales conditions and traffic by prospective buyers also improved.

In a separate report Wednesday, sales of existing homes surged in March. The increased demand has yet to cause additional listings to come onto the market, creating the possibility that construction firms will increase the pace of building and more buyers will choose to purchase a new home instead.

Sales of existing homes rose 6.1 percent last month to a seasonally adjusted annual rate of 5.19 million, the National Association of Realtors said in its report. But that increase has caused tight inventories and higher prices that may help make new construction – which is usually pricier – more attractive.

The existing-home market had just 4.6 months of supply nationwide, well below the six months of supply that economists say would reflect a healthy market.

Some homeowners are choosing to renovate instead of selling their home and upgrading. An index measuring renovation plans by Houzz, an online firm for home remodeling and design, rose during the first three months of this year compared to the end of 2014. General contractors and landscaping firms were particularly optimistic that their business would continue to improve, Houzz reported Wednesday.

There is also rising demand for housing as the economic recovery approaches its seventh year.

Job growth and low mortgage rates have put homebuyers in a stronger financial position.

Employers have added 3.1 million jobs over the past year, as the unemployment rate has tumbled from 6.6 percent to 5.5 percent. The hiring has increased the number of paychecks in the economy and created more potential for consumers to spend.

It has also become cheaper to borrow to buy a home. Average 30-year fixed rates were 3.67 percent last week, according to the mortgage giant Freddie Mac. That average has dropped sharply from a 52-week high of 4.33 percent.

Copyright © 2015 The Associated Press, Josh Boak. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Source: New home sales fall in March

Is the real estate market continuing to Improve?

Here are 7 info graphics and their importance on current real estate trends not just for the South Florida Luxury Real Estate Market but real estate markets in general which is provided by Emh3.com Luxury Real Estate Brokers and CoreLogic.

New Home Sales Trends

In this graphic we see new home sales showing volume and median price from January 2002 to the first quarter of this year. What is interesting in this New Home Sales Trends report is that current median prices are actually higher than their peak during the euphoria of 2005/06. What keeps this from becoming an alarming statistic is the Volume data that accompanies the graphic showing historically low monthly sales.  This reviewers take is that we are in a very controlled slow growth mode on new home residential real estate sales. In addition, a good portion of new home sales are in the upper price points which also skews the median price upward. The scenario of limited new projects and pricier developments has driven market values on New Home Sales in a manner that should see some price correction or adjustment downward as more new home projects begin coming into the market.

The next graphic shows the price point of sales as a percentage of total sales.

Here we see how 200k+ market (a gigantic subset, should be broken down further) was the main driving force in the last collapse and that it currently is again taking the lions share of sales nationally. What is interesting to note is that the 0-100k sales share really took off during the recover period up till about the middle of last year. A strong possibility is the downward price pressure during the recovery period placing 200k+  properties within the 100k price tier which could lead to a mistaken push for lower income housing on a national level when in fact it was distressed and REO inventory changing hands.

Distressed Sales as a percentage of total sales volume

Some good news from this graphic is that short sales continue to decline from their September 2012 high nationally and are retreating into the sub 3% of the market realm. REO sales continue to be a big part of the real estate sales landscape though. At current rates, it would be expected that REO properties will become less than 10% of the overall market by the begin or middle of next year putting it at twice it's historical highs from 2006.

Distressed Sale Share for the 25 highest rate States

Like it or not, the state of Florida was one of the top Distressed sales markets and remains high compared to other states who also felt the brunt of the most recent economic correction. A silver lining is that little red dot you will find on the line that represents Florida's activity compared to other high incident states. Florida still ranks in the top five on a percentage basis but when taken into account our overall market growth compared to other states, this is not as painful.

Serious Mortgage Delinquencies for the 25 highest Rate States.

Here is a telling measure of whether or not we will see more shorts sales, foreclosures, modifications, etc. The answer is yes. we are going to keep seeing these events. Florida, finally is showing some easing of it's statewide delinquency rate as it begins to near 10% which is off of it's historical high of almost 12%. With the current government programs to refinance, consolidate, and reduce principal and interest payments beginning to work, it is believed that the we should see fewer short sales come up and a continuing reduction of REO properties holdings.

30 year mortgage instrument being replaced by shorter term refinancing

Over 40% of the mortgage refinance market is trending toward shorter term financing. This is a clear sign that Americans are becoming more aware and active participants of more aggressive payment strategies for their real estate investments. What is also on the rise but not represented in this graphic is the 40 year mortgage term. Lenders have opened up the possibility to lowering your monthly payments by amortizing your mortgage over a longer period of time much in the same manner as Europe has done for decades.

Overall Mortgage Performance compared to foreclosures and delinquent debt.

Some positive signs from the mortgage front can be seen in this graphic showing 90+ day delinquent filings dropping nationally. Foreclosures also keep moving downward on the whole. There is an uptick since February of last year in REO activity. The REO activity can be interpreted in a number of ways. The courts fast tracking old case logs. Lenders clearing out REO portfolios they have been holding on to (known by some as shadow inventory).

Overall we see marked improvement and stability both nationally but also within the South Florida real estate markets. We see this both in lender activity which is increasing both for national as well as foreign buyers. We also see buyers increasingly interested in lending options and being more risk averse than in the past.

Buying in Little Havana? Real estate values have depreciated right along with it's neighbors in Brickell West, The Roads and just about everywhere else. (UPDATED in 2016 READ BELOW)

If you are looking to invest I think you will have to be selective and patient. I have clients who have invested in both the area you are interested in and also around Brickell and Downtown Miami. But, it is also important to know whether you are looking at condos or single family homes as they behave differently in terms of price and demand in this market.

In the case of my clients, they were value investors of real estate and found some very good deals relative to what their financial goals were.

In terms of the area itself it is a mixture of older rehabbed low rise and mid rise buildings mixed in with newer mid rise and low rise buildings that have shown themselves to have some great opportunities for buyers. As you go further East and South (Roads/Coral Way, etc...) you head into the single family home areas.

It is a pretty strong rental market (Condo side) despite the pressure it gets from properties in Brickell West, Brickell and Downtown Miami.

I could go into more detail for you but I would need a better idea of what your specific goals are.

I'm not much of a gambler but I believe in the area and in it's future prospects.

Hope that was helpful and feel free to contact me if you like.

Best,
Adrian

It's February 2016 and a lot has changed since this article and response was posted. Buying in Little Havana is no longer a question of depreciated values or lowered expectations. Case in Point. Brickell West which lies between Brickell and Little Havana South Eastern tip along with The Roads residential communities have rebounded very strongly. Brickell West has changed dramatically from low rise rentals to mid and high rise condo's and rental buildings all catering to middle income to in some cases upscale consumers. Apartments that once sold in Little Havana for $40,000.00 now can be seen closing or selling for almost three times as much. Older buildings are being better maintained now that we have weathered the worst of the financial crisis and a lot of money has poured into the area buying up properties for large scale development and mixed use projects.

So, in retrospect, buying here was a good bet and would have paid off nicely. But is it still worth investing in? The short answer... Yes. Depending on your goals, Buying in Little Havana, especially the Southern and eastern portions that run along the Miami River, are very strong plays already receiving a lot of interest from international and local developers who see the benefit of increased density in these areas near downtown Miami and Brickell.