Fort Lauderderdale Real Estate News

The Banks Are Still Out of Control

2008-10-03T08:02:00.008-04:00

I'm sincerely not smart enough to know if the banks and wall street should be bailed out. The way I see it, our current and future leaders say this should happen, so why should I disagree. If they continue to mess up hopefully, we will be smart enough to make them unemployed.
That being said the management of many of these banks already deserve the unemployment line. I know this is going to sound a bit bitter, but sincerely my business is holding its own without their foreclosure business. I often get asked for my price opinion and for this I get $50.00. I only do it to keep a pulse on the market. We have plenty of buyers to represent, and hopefully protect. We continue to do the business that has won us awards year after year.

I am shocked at the way these banks are managing, and attempting to liquidate these assets. Us tax payers will end up bailing out, as they continue to mismanage. Yesterday I spent the better part of the day showing bank owned properties. One of the hopes of the real estate down turn, by many realtors, was that many real estate agents who didn't take the business seriously would leave the industry, and as a profession we would raise our standards. This sincerely has not happened. I am sure there are many great agents out there servicing the banks foreclosed properties, and I sincerely appreciate their efforts. These people are in charge of saving neighborhoods all over America. However, very often a brand new agent, or one who has just come back to work, connected to someone somewhere, has become the agent of choice, often with 50 to 60 listings, they cannot possibly service. My day was spent jumping over fences where I had incorrect gate codes, going in through open doors where there were no keys, using a flashlight where there was no electricity, kicking roaches out of the way, and the best was the agent who informed me "I only take offers from my buyers, will you give up your commission".
Shame on the banks for being unwilling to sell property the way it has always been done, find the top preforming agents in an area and work with them. At a starting point the banks may wish to hire a few people to audit their assets often they may be shocked what they find. We are making an offer on foreclosed property we saw yesterday but the offer will be much lower than planned because of the lack of maintenance on the property, and our belief that the property will simply sit and not age gracefully.

Fort Lauderdale Rental Market is Booming

2008-09-30T07:46:00.002-04:00

Here we go again, a new real estate cycle visable on every corner that will lead us to the next cycle. Who said the next cycle of dropping real estate prices had to be rising real estate prices. All over Fort Lauderdale rental housing is being built, weve been this route before. When sales fall off, people start renting, rents go up, and builders build new rentals, when sales start to risee they convert them to condos and sell out, and we get to start all over. How long the cycle lasts is never perfectly clear unless your wathcing the news, as they all seem to have the answer. But one fact is clear major real estate developerss still believe in the Fort Lauderdale area, they are building rentals all over town, to service the people still moving here, and buyers are being welcomed to the perfect storm, simply if you find a home you like, buy it. If you what for the day you are convinceed it is the bottom of the market, the perfect home will not be available and you will have most likely missed the bottom of the market

Shame on the Banks

2008-09-27T05:55:00.000-04:00

I'm sorry I haven't written in while, but contrary to what the media is saying, we are busy. Our business is ahead of last year and people are buying the bargains to be had in the Fort Lauderdale area. We are working harder than ever, and it is frustrating to see how a correction in the real estate market, has caused banks to stick their heads in the sand, run for cover, and ultimately create a run on real estate and their own banks. I am not smart enough to comment on if the bailout being discussed is the right thing to do, but I have enough common sense to know executives who failed to perform should be given a ticket to Florida instead of a paycheck. We have many bargains that I am sure they can afford. Sincerely I don't blame banks solely for this current crisis, there is plenty of blame to go around but they are definitely responsible for a portion.

If your about to buy a home and finance it through a mortgage, you need to be prepared for a simple fact. The banks have told their appraisers exactly how they want them to perform. This in itself is a disgrace as appraisers have always had the job of doing an independent opinion of value, well, not any more. The banks have told them in many ways, protect your licence, be conservative, don't give credit for renovations, deduct for a declining market ( now they too predict the future), and basically be as pessimistic as possible. Notice I did not say as realistic as possible. Simply this creates a self fulfilling prophecy. Prices cannot stabilize, as long as banks, and their appraisers say they are still falling. From the best neighborhood in town to the worst appraisers are performing in the same fashion, if you have a massive huge bargain it may appraise at the price on your contract. In my opinion the contracted price is not even something an appraiser should see, or know about until they have completed the appraisal. How come nothing ever appraises above the contract price if this is suposed to be "an honest opinion of value". When you have five or six buyers bidding on the same property are they all dumb, this is an honest opinion of value. Value is what a property will sell for in a fair and open market.

So now I can predict this market, buyers will be limited to better than 20% down, or cash ( its still king ), many will be asked to accept properties which appraise below the purchase price and need more money down, foreclosures will continue as banks continue to tighten their lending practices, prices will drop until homes become very affordable, and then banks will step back in all over again and offer everyone money (once they feel safe), either through bargain prices that even they feel good about or guarantees that limit their risk. Something is wrong here and I know that sooner or later our leaders can find the way to stem the foreclosure market, keep people in their homes, and stop the downward spiral of real estate prices.

For the time being, and until then do, the herd is heading for the door and the smart money is buying real estate the old fashion way, location, location, location. In the Fort Lauderdale/Hollywood/Pompano area we are always here to help. See you soon its early Saturday morning and we have buyers in town.

Where are the best deals in town ?

2008-06-06T08:14:00.000-04:00

Simple - Lets lay out a few facts first. All of these are based on total generalizations, from numerous sources, from numbers I have seen varying all over the place. The real estate market in the Fort Lauderdale area has risen 50% in five years, it has dropped 20% in two years, so the way I see it there has been a nice five year return, actually way better than the stock market. The cost of creating good real estate ( building ) continues to rise. There is less building going on because property is selling for less than it can be built for. The profit motive of building is temporarily gone. Sooner or later inventory will tighten, prices will level off ( I think we are there) and then start to rise. Remember, even when the stock market is bad there are good stocks and bad stocks. Just like the good stocks create millionaires when the market is down so does good real estate. Would it surprise you to hear that there are properties in Fort Lauderdale that have not dropped at all in this the current slow down, now these are great properties.

So where are the best deals in town ?

1) Waterfront Properties - the bigger the home for the boat the better, there is only so much waterfront in Fort Lauderdale and as a boating city it will always be in demand. The more water frontage the better.

2) Beach Area - East of the Intracoastal - Very close to the beach - There are only three new buildings going up in the entire beach area of Fort Lauderdale, visit http://www.fountainsfortlauderdale.com/ where we have the last two units from the developer available for sale. In addition many of the older buildings have spent a fortune upgrading since hurricane Wilma, as a buyer today you purchase these renovations for free.

3) Downtown Fort Lauderdale - Las Olas - The night life of downtown, and less than 2 miles to the beach, in an area where there is no land to build, in a city that is growing. Sounds good to me, please remember these are some of the most luxurious buildings in town, and the monthly maintenance charges will reflect the level of services. One last note - DOWNTOWN FORT LAUDERDALE IS NOT MIAMI, we do not have the same glut, so if you are interested don't wait too long.

4) Last but not least - great solid neighborhoods - they are never the least expensive place to buy, but most likely you don't purchase the least expensive shoes in the store, or the least expensive stock on the market, great solid neighborhoods come back strong when the cycle changes. We are here and proud to show you the best South Florida has to offer.

So where are the buys, simple start with the most basic rule of real estate, location, location, location - and let Eric Miller and Associates guide you through this market.

$100,000 Beach Front Area Two Bedroom Two Bath Condo in a Newer Fort Lauderdale Builiding

2008-05-15T03:25:00.000-04:00

Sorry Everyone They Don't Exsist - No time has ever been made more aware, that when we all read newpaper stories and read between the lines, a differant set of realities results. So let me help you see a clearer realty about the Fort Lauderdale area market. Think of your home town, think of the best street in town, think of the best view in town, think of a beautiful street. Visiualize it, the best address in your home town. In Fort Lauderdale this for many will be any street along the ocean, or other water ways. Now think of finding a distressed property in that area of your town. Use the numbers they talk about where you live, I know we have all read them. 1 in 300 as the media says in our city, lets look for that one perfect location property in foreclosurer. If 10 out of 300 in a differant part of town are having problems that may make that property I am hunting 1 in 3000 in my great neighborhood. Or ifs its 100 out 300, somewhere else in town and it maybe for a reason, inorder for the media statistic to hold, in may make in 1 in 30,000 on the best side of town. Now lets talk about the buyers in your home town, will they be lining up to buy that 1 in 30,000 distressed property on a great street. They will quickly bid the price to market value, and the property will be sold. Simply its happening to every prime forclosure in Fort Lauderdale, quickly, easily, and at higher prices than the media is saying.

There is a new market value in Fort Laduerdale, but sorry real estate is not selling in prime areas for pennies on the dollar, look for reality in 2003-2004 pricing, which in many cases in great areas can be 35% off th highs of 2005. But in some properties may really be holding. I would still expect to start looking fo a 2 bedroom / 2 bath beach area condo in an older builder in the $275,000 range, and go up quickly from there, depending on the property. Simply this is reality, we just sold a one bedrooom foreclsoure for $240,000 it was a great deal for the buyer, and fit the formula of about 35% off the 2005 high, and there were multiple buyers.

As always we are here to help, Eric Miller and Associates at Keller Williams.

The Banks are Doing it Again

2008-05-14T07:53:00.000-04:00

There are few people out there who would say that the banks had their eyes clearly on their businesses with an end in sight as they made loans to people who really couldn't afford them with more and More convoluted terms. I am sure it would be hard to find people to stand up and profess " the banks now get it they are in control of what they are doing now".

The other day we wrote an offer on a bank owned property for $245,000 about 30% less than it would have sold just a year ago, but in the current market, a valid offer. The property was on the market for $265,000. Within days the bank "REJECTED" the offer, and then proceeded to reduce the property to $240,000. We have now closed....... This is your money, my money, your neighborhoods, and the institutions you trust.

The real moral of the story here is we all need to pick our experts in life effectively and trust them to do a good job. It won't last long, but the banks are digging themselves deeper into this real estate problem by not allowing a broad spectrum of real tors who have been experts in each market for years to be their source, and help them out of this inventory crisis. Remember there is no real estate crisis, its a crisis of inventory and in many cases its inventory that few people really want, so follow this logic. Wouldn't the easiest place to get rid of real estate inventory to be go where the most buyers are, working with the biggest, and best real tors in town. Instead the banks are working with property liquidation teams that are appearing all over, are impossible to work with and continue make mistakes like the one I mentioned above. Many realtor's who have worked local market are no even talking to the banks other than if they represent the buyers, because many of the banks are impossible to talk to. They are in crisis mode but making it worse, currently we have a foreclosure deal which may die days before closing because someone at the bank has changed the terms days prior to closing ( we are taking $2000), we had another deal weeks ago where we were asked to accept a lower commission ( which we did ) and at the closing table found out the other agent was paid twice what we were from the bank. I don't blame the agent but shame on the bank.

On a last note - the best deal in real estate is a realistic seller - who understand the market and is ready to move on - work with a real estate professional who can show you the facts - and if the home you love doesn't have the word foreclosure in front of the address, believe me this is a win for everyone. Buy it right, know you got a great deal with a property which was taken care of , and enjoy that you bought in a buyers market where the banks helped you to get a lower price.
Remeber we are always here to help, and we help you negotiate, you can be assure you have a team of pros.

Good Moring - The Signs of a Bottom of are Upon Us

2008-05-11T06:44:00.000-04:00

Its been a long time since I wrote and this is one of things I am going to try and commit to do more often. Believe me there is no lack of suggestions or interests just a lack of time. It goes back to the article "I want to buy a steal" where I discuss that everyone still wants one. Well guess what they still do and the media has convinced them that there are 100's of ocean front condos, in foreclosure with a view, in beautiful resort properties sitting along the cost for $100.000. Guess what they don't exsist, but great buys do. I am so happy that in this market Realtors or real estate consultants ( how I prefer we be called ) become so much more valuable to these consumers. We can save then so much time, energy, and money. We work hard on our top 10 list of best deals, from every realtor in town each week, and we must be good at it, because 90% are sold within 30 days, in a market where the average days on market is closer to 180. What a great tool, a group of Realtors working together, putting together all the properties they have seen in a top ten list by category. If you are really looking to buy before the upswing gets back on track this is the tool you should looking at. Think back the media has sent you out in the world, with media interpretations before ( that as polite as I can be ) and they have done it again. Even though prices have dropped to great opportunity levels and the declines are different from neighborhood to neighborhood. Your real estate professional, can guide you through this market with skill. Any agent would be pleased to sell you your next Florida home, but we prefer you make an educated decision. Tell us what is on your wish list, lets discuss the budget and the goals, and let us see if we belong working togther to rech those goals, as we share with you our navigational skills in this new real estate market.

Just some pricing ideas - opening price points near the beach One Bedrooms starting at $250,000, Two Bedrooms starting at $325,000 - There are many less 3 Bedroom condos in the area and you will quickly jump up into the $500,000 range and higher.

Single Family Homes - Near the Beach $600,000 and up, on the sand, sorry $3,500,000 is a number which is holding well. Three miles inland we have homes we can show you in the $250,000 range needing some work as older Florida homes. Willing to venture a bit further west 6-10 miles there we still have condos and homes under the $200,000 market and depending on your needs we have a few special communities ( some which may require an owner to be over 55 ) that can be bought under $100,000.

When you are ready for expert advise the more you tell us the better we can help .

I WANT TO BUY A STEAL

2007-07-28T08:21:00.000-04:00

I want to buy a "steal"...

This is a line that many realtors will tell you they hear almost everyday in this new real estate market. Personally I feel solace in the fact that we are all hearing it everyday. I am not sure I fully understand the definition of a “steal”, but I find comfort in knowing there are so many potential buyers out there interested in South Florida all looking for one.

I have asked many clients to help me define a steal. Sometimes it leads to the word foreclosure. So just maybe a “steal” is a property that has been on the market, nobody else has wanted it, and now a bank owns it. The bank is willing to sell it at a lower number and because a bank owns it, it is a Steal. For many reasons this concept simply doesn’t work for me, certainly if a great property went into foreclosure I would call all my hunting clients, but just because a property is in foreclosure doesn’t make it great.

Its post dinner now, at Fort Lauderdale’s self proclaimed “most famous waterfront restaurant” Shooters, and the bar conversation was about buying real estate and finding a “steal”, and still no definitive answer as what a “steal” is. The good news is many locals at Shooters are looking for one as well.

I have asked another client about this word a “steal”, and I was told clearly that they want $100,000 off the asking price. Now I feel like I’m getting somewhere, if I find a $2,000000 waterfront home willing to sell for $1,900,000 I have a steal. If I find a $150,000 apartment willing to sell for $50,000 I have a steal. Even though the asking price of the $2,000,000 home has risen 100% in 5 years, and the $150,000 home has risen 10%, their both a steal. My concern here is, however, that I always find sellers willing to ask too much for their properties. Doesn’t a realistic seller deserve a little consideration, when they have priced their home correctly to sell? I know in my heart that asking price has never been a test of the true value for a piece of real estate. How could I possibly use asking price, or how much they are willing to give off of it to define the value of a piece of property, or this elusive word “steal”.

Then there is the client, who said, “I WANT A STEAL”, “I’m not buying until I can smell the blood of the seller”. For a moment I thought a steal had something to do with finding a crime scene. Simply the metaphor of “blood” bothered me. The client and I spoke at length and his definition of a steal was a client who came to the table owing money, a seller who had to write a check to sell. As of late, sellers in this condition have been easy to find, but simply I could not understand how a seller who bought at the peak of the market, and now needed to sell, indicated anything about value.

It is a wonderful time to be a buyer in the Fort Lauderdale, and there are great deals to be had. I try very hard to remind buyers that our market has returned to normalcy and we need to be careful to pay attention to the things that truly value real estate. The first is no secret, Location, Location, Location. The others are cost of ownership, quality of construction, and the laws of supply and demand. If you’re buying a home in South Florida work with a realtor who knows the ins and outs of every neighborhood. Find the neighborhood or building you wish to live in, and then find the most motivated seller. I assure you by buying well in the neighborhood which is right for you, someday it will feel like you found that illusive steal.

Thank for taking the time to read my blog, and remember we are always here to help you find a "steal"

visit us on line at www.FTLRealEstate.com

Fort Lauderdale Real Estate Pricing

2007-07-26T18:42:00.000-04:00

Welcome to the Fort Lauderdale Area real-estate market. In this first post I would like to discuss one subject, pricing. We sincerely hope you find it helpful as you start thinking about buying property in the South Florida Market.

It is not unusual for people coming to Fort Lauderdale to experience sticker shock. We are no longer the home of inexpensive beach front properties that you saw on vacation here ten years ago. The local real estate market has been experiencing strong price increases for many years, however, since hurricance Wilma and the national slow down of the real estate market we to have seen a major change. The change for the time being is that it is truely a buyers market, offers being accepted have come down, but sincerely I do not expect this to last. What makes the Fort Lauderdale, Broward County area differant from other areas of the country is simply, we are out of land. Being totally built out, the supply of property will sooner or later tighten, and we expect prices to stabilzie and start the next upword cycle. As a general rule of thumb, properties in South Florida are valued based on proximity to the beach and waterfront, no different from that famous rule of real estate, location, location, location. Waterfront properties are priced based on the type of boat which can be housed in the waterway, proximity to the ocean, and waterfront footage. It is not usual to find deep water, no fixed bridge building lots selling for in excess of $1,000,000. In contrast, fixed bridge waterfront homes, where only small boats may enter may be found in the $500,000 range. When in comes to Condominiums, proximity to the water and water views, rank high on peoples wish list – in general exsisting condominiums are selling from $300 - $400 a square foot. In older buildings, where some work may need to be done to update the unit, $250 a square foot is a possibility. Brand new condominiums, to be built over the next two years are priced from $500 a square foot and up, with some even selling in excess of $1200 a square foot. If you’re looking to be near the beach finding a 2 Bedroom/2 Bath condominium in a full service building for under $400,000 is becoming more and more difficult. When it comes to single family homes similar situations apply, and is common to find 1300 sq. foot renovated homes selling for over $300,000 - remember these are huge generalizations just to give an idea of pricing in the market – there are indeed exceptions to every rule, and we will do our best to come up with ideas to satisfy any wish list, and budget. We define close to the beach differently than people from elsewhere in the country. Finding 2 Bedroom/2 Bath condominiums within 3 miles of the beach can change your price point dramatically, and they can be realistically found in the $250,000 to $600,000 range. Thinking of an over 55 community or being even a little further from the beach – we can still find properties in the under $200,000 range, but it is getting tougher and tougher.
Please do not be shy – feel free to ask any real estate question and I will do our best to provide you with an accurate answer. Over the next 6 months to a year buyers will certainly be picking up some bargains in South Florida and it is our job to help you spot those bargains.
Thank you for spending the time reading this and I hope it has been helpful.

Best Regards,

Eric Miller
PS - Please remeber to visit us at http://www.ftlrealestate.com/