MARKET WATCH
Hello Members! I hope you had a great month. We are now getting ready to hit the summer buying season in full stride. Overseas buyers are here and are getting homes for cash. But from what my sources tell me they are driving a hard bargain.
They have one of two mind sets: they want the best out there and will pay for it, or they want something that needs work but want it for FREE. In both circumstances the mindset directly affects us and the business of real estate.
Let's look at the buy side first. The market has tightened up in some zip codes: more buyers, less inventory means HIGHER PRICES Now throw in buyers from across the pond with pockets full of cash, wanting to get their money out of their country as fast as they can. That leaves us in a bidding war and most times that's not a good thing. So you need to make sure you're not over bidding on your deals. You have to know when to walk away. Remember this is a business not a hobby. With a hobby you don't risk going broke if you make a mistake.
You must know the cost of goods off the top of you head (more on that later). Be prepared to make an offer and have good comps or access to them quickly. Remember, your competition may have internet access by phone or by tablet and can beat you to the punch so be ready. Have the tools you need at your side to do a good, quick assessment. And get your offers in before anyone else does.
Now for the buyer who is willing to pay for what they want. I had dinner with one of our members who invests in the Lakewood Ranch area. He was telling me about a repo he just rehabbed and the buyer from France who loved the house but did not like the appliances. My friend had purchased high end black appliances because the package was $ 1,400 dollars less than the stainless package and he figured it would not matter in the long run. But this buyer, and most buyers from what I have seen, would rather have stainless appliance in a very high-end home. Fortunately for my friend, the buyer said they would buy but only if he replaced the appliances with stainless. So now he has a package for his next house and a nice profit to boot. So the moral of the story is: in the high-end homes don't go cheap it will cost you in the end.
Have a great month
Paul
If you want more information call me at 941-716-2597
Real Estate Marketing
I have been asked by a few members if I would hold another mastermind class like we had last year.
I would be willing to do it for a small group of 3 or 4 members. We would concentrate on your business and your goals. Cost would be $ 279.97 and we would have 3 -1/2 day sessions. Call me for more info at
941-716-2597
