Real Estate Information

There are currently 10,982 non-condo listings on the market in the Jacksonville area that we track.  This is down 2% from last week.  Pendings have remained relatively steady since last week.  Our Jacksonville Florida Real Estate Pendings ARE UP 17% OVER LAST YEAR THIS TIME!  At the same time the number of Jacksonville homes for sale has gone down 8%.

There are, however,  fewer homes sold in the past 30 days and the past year than this time last year.  This is perhaps a reflection of a higher fall-out rate and longer periods under contract than last year.

In the area of short sales and foreclosures, 32.5% of all homes sold in the past 30 days were short sales or foreclosures. 

Short sales and foreclosures continue to drive down the price of homes in the area while activity seems to be up.

You might think that as long as you pay your credit cards on time you are okay.  In this credit climate that is no longer necessarily true.

One of the biggest factors that goes into your credit score is your credit utilization.  Ideally you want to keep your outstanding balances below 30% of your available credit.  So you're someone who has been careful to keep this ratio down?  Did you know that it could change instantly without you doing anything at all to change it?

Did you know that the credit card industry is actively lowering credit limits regularly now?  I heard a statistic a couple of days ago that demonstrated a substantial decrease in consumer credit lines is underway.  This is happening to those with good credit and bad credit alike.  There are reports of companies chasing down your balance by reducing your limit every time you reduce your balance, keeping you at or near your credit limit.  Some companies, such as American Express, are also cancelling the cards of some who pay them off in full.  In addition, they are reporting it as closed by the credit grantor which is a black mark on your credit report.  This can happen to you even if your payment record is perfect on your credit report.

Ratejacking, the practice of increasing your interest rate on your current balance as well as future purchases, is rampant.  This is happening to those with good credit and bad by previously reputable companies.  Miss a payment with Chase, or pay $1 less than your minimum payment, and expect your interest rate to go to 30%.  What will that do to your finances?

If you have 10,000 in available credit today, and are carrying a 3,000 balance, this is positive for your credit score.  What happens if American Express cuts your 10,000 credit limit to 4,000?  Assuming this is your only revolving credit account...this will be a devastating event.  Your debt ratio has gone from 30% to 75% overnight.  Or what if, even worse, they reduce it down to the 3,000 balance that you are carrying?  Your debt ratio goes to 100%.  That will seriously impair your credit score and have a big impact on you.  This may make it next to impossible to get credit anytime in the near future.  This can make it much harder to buy a home, a car, or other large ticket items.

Be aware of the situation that is unfolding.  If possible, start using cash as much as possible.  Create a household budget and stick to it.  Spend less than you make.  There is no better time to form good habits for the future than in this volatile credit environment.  Do what you can to protect yourself.

The Jacksonville real estate market seems to be a bit sleepy leading into Thanksgiving.  This is a normal occurrence for this time of year.  Our overall numbers are holding relatively steady.

Right now we have 13.78 months of inventory in Jacksonville single family homes (non-condo) based on the past twelve months.  Based on the number of sales over the past month our inventory level is around 19 months.

The interesting trend that is developing is in the area of short sales and foreclosures.  Currently, less than 23% of non-condo inventory in the Jacksonville area are foreclosures and short sales.  However, over 47% of Jacksonville homes under contract are short sales and foreclosures!  Why?  Because foreclosures and short sales are have a greater likelihood than straight re-sales to be priced correctly.  The percentage of pending sales that are foreclosures has been increasing rapidly, although the total number of listings that are foreclosures and short sales are creeping up slowly.

Our pendings are up over last year this time, along with our pending to active ratio.  The number of buyers in the Jacksonville real estate market seems to be holding steady, the biggest change in the market we've had in the past year is that prices have become more reasonable.  This is largely due to short sales and foreclosures. 

Savvy buyers are buying...but they are buying the most aggressively priced homes.  The homes that are not priced well are getting overlooked and remain unsold.

We are always on the forefront of new technology when marketing our Jacksonville area listings.  Virtual tours have been around for years.  Virtual tours are very limiting, and if you do not put them together correctly, as most people don't...then the house looks very unappealing and distorted.  We are not fans of virtual tours.  We actually think a high number of high quality pictures is a much better option than 90% of the virtual tours that we see out there.

We had been down the virtual tour route just like many other agents.  We had the virtual tour service for years.  What we found is that they are simply not very effective.  There was no correlation with a home having a virtual tour and selling.  What we came to realize is that a lot of people did not look at the virtual tour unless they were really, really interested in the house.  This means that the quality and quantity of pictures used to market your home is much more important and can definitely make a difference.

We love real estate video as an alternative to virtual tours.  With a video, you can show the layout of the home and go in any direction that you would like to.  Videos can be made walking through your home, or they can be made in the fashion of virtual tours.

Video walk-throughs are powerful marketing tools.  We have sold houses just by sending the prospective buyer a video walk-through.

Some cons of using Jacksonville real estate video:

• Clarity and definition is reduced when the video is converted for use on the web.  We don't see this as a big issue.  People are used to the quality level of web videos.  The high resolution images can be left to pictures.  Video gives them a perspective of visiting the home, just like a showing does.  You can't do this through virtual tours. 
• Unless you have spent a lot on professional equipment, video walk-throughs can be very "choppy" since they will pick up some level of vibration when you walk.  Another thing that we don't see as a big deal.  Since buyers probably don't look at the video until after they've seen the pictures and decided that they like the house, do you really think they are going to eliminate the house because of some slight vibration?
• Agents need to acquire some level of expertise in video editing or be prepared to pay hundreds for a professional videographer.  Most are just overwhelmed with the thought of video, so they discount it and have the opinion that it's not a good thing.  If the agent is highly skilled in video shooting and editing, the video often looks much better than when a paid professional does it.  That is because the agent knows the house, and can take the time to accurately portray what the buyer will see when visiting the house.

Video IS the future.  Video is innovative and shows the buyer the house and can be just as effective as a real showing.  If the ultimate goal is to get your home sold, it needs to be showcased in the best light, in the way a buyer would see it.

La Nopalera is coming to the 210 Corridor soon.  They have already added the location to the front of their Mandarin location menu.  We asked when they were opening and they told us they are waiting on the permits then they willl be opening immediately. The new location is near South Hampton and Cimarrone.

We get this question a lot in reference to some of the real estate websites that are relatively new on the scene.   These websites attempt to assign a value to a particular property.  While these websites definitely have their positives, the value assigned to a property can be problematic for buyers and sellers.  For sellers it can create a problem when a buyer believes in the estimate given if the estimate is greatly off mark.  For buyers it can create wildly unrealistic expectations.

We are firm believers in web advertising for our listings.  We put our listings on as many websites and searches as possible.  So today I thought I would put one of our higher priced listings on Zillow.  When I put our listing on this popular website it had our list price... then it had their estimate for what the property was worth.  After I picked myself up off of the floor, I realized that listing on this website might be a problem.  On this particular property this estimate was $125,000 less than our asking price.  Does that mean that our asking price is too high?  That is what a buyer would be led to believe.  However, before that conclusion is reached...let's chat about it a bit.

In this neighborhood there are three builders.  One is a high-end builder.  Then there is a middle-of-the-road builder that swings towards the high end side but isn't quite there.  Then there is more of a starter-home type of builder.  This particular home was built by the high end builder.  Besides being widely recognized as being a better built home, this builder also really impresses with the extra touches.  The house designs are awesome, the kitchens are a dream and the details are incredible.  If you were led into one of these homes blindfolded, and the blindfold was subsequently removed, you would easily be able to identify the home as being from the high-end builder.  (The need for the aforementioned blindfold was that I was making the assumption that you could identify the difference from the outside of the home)

To take it further, this home is on the end of a nice, quiet cul-de-sac street where the kids can play on their scooters or roller blade without watching for cars. You can probably even walk your dog down the middle of the street even if you don't have a death wish.  In addition, there is a pretty preserve area on the side of the home.  As a bonus you have the same type of preserve area in the back of the home.  If you take the square footage and multiply it by the average price per square foot of the last two resales built by this particular builder....you come up with a price more than $220,000 more than the estimate given this home and roughly $100,000 more than the seller currently has it listed for.  Now does the picture look a little bit different?

In the Jacksonville area, every time I've ever checked these websites to see what is being shown as an estimated value, I've found the number to be so low it wasn't even in the ballpark.  So as a seller, do you prefer that I leave the listing on the website so you can gain additional exposure for your home...or do you prefer that the listing not be on the site as the estimate given is so much lower than what the home is really worth and could lend to very insulting offers.  I'm not sure myself.

This is one of my favorite topics.  Whether you are buying or selling a home, never do it without a home warranty!  Just like any kind of insurance, home warranties are not perfect creatures.  But they can save you a boatload of money if something breaks. 

The reason this topic has made it here today is an interesting one.  My sister is the unfortunate owner of  two homes temporarily.  She moved to South Carolina recently leaving Maryland.  Her home is on the market in Maryland.  Well, she is sitting in the freezing cold today because her heat pump is not working.  Just the day before yesterday, she got a message from the agent who has her home listed for sale in Maryland.  She has a plumbing leak at her old house.  Fortunately for her, she has a home warranty...on both homes!  There is a particular home warranty you can get when your home is on the market.  This means if anything happens while you are in the process of selling your home, you can have it fixed courtesy of the home warranty company.  How awesome is that?  She also has a home warranty on her new home with the heat pump problem.  So this will be fixed as well.  If the subcontractors sent out by the home warranty company can not  fix it, then they will be replacing her heat pump with a new one.  She is very fortunate that she has these warranties in place.  It appears that they might ultimately save her thousands and thousands of dollars.

Now for the imperfect part.  This is the fourth time in the past month that the home warranty company has been out to fix the heat pump.  She is still freezing.  It is still not fixed.  However, one thing to remember is that even if she were paying out of her own pocket with her own HVAC person, she would more than likely still be eating dinner with her hat and gloves on.  As for her Maryland house, the plumber came out the first time and the repair cost was less than the deductible.  But the second time the plumber came out for a slightly different problem, the cost was much greater than the deductible.

If you are a seller, ask about getting a warranty on your home while it is on the market.  Also--offer the buyer a home warranty.  A short-sighted seller might grumble that that will just be an extra expense and they are not going to pay a penny more than they have to.  However, consider this story.  A couple of years ago I got a call from a real estate agent who had been on the other side of a deal where I had represented the seller.  Well a little over twelve full months later, she calls and said that her mom's furnace is not working correctly.  (For those inquiring minds--yes it was her mother who bought this particular property).  She proceeded to inform me that they planned on coming after the seller and making them fix the furnace.

So at this point, I figure you're on my page wondering how in the heck they could blame the furnace not working at that moment , after she had been in the house running the furnace for months, on the prior sellers.  I was totally floored that they could even think about blaming the sellers.  But I digress.  The problem was quickly nipped in the bud when I said, "You had a home warranty!  The seller's bought you a home warranty....are you telling me you didn't renew it?"  I never heard from that agent again on the issue.  That $300-something home warranty quite possibly saved my sellers some serious dough. 

As a buyer, make sure the seller purchases a home warranty for you.  Have it written into the contract to purchase.  As a buyer, that should be a non-negotiable item.  You can usually renew it year after year.  Important point coming up!  You have to read the fine print to know what's covered.  Never assume.  Many do not include things like washers and dryers or pool equipment in the coverage, but will allow you to purchase a rider covering these items.  Also-never call a repairman yourself when something breaks.  Always call the warranty company first.  If you call the repairman yourself--you've likely just kissed that money goodbye!  One of my personal favorites is Old Republic.  I have had experience with them in my personal home and in my case their response time and service has been wonderful.

Real estate is a tough world.  Having been in the corporate world for years before going into real estate, I find that it is much more difficult to have a successful career in real estate, but much more rewarding for me personally.   Real estate agents do not get paid unless your closing happens.  That means that if an agent runs around with a client for six months, 20 hours a week it is, in effect, a part time job--however it is 100% risk for your agent.  Most people do not ever go to work without a guarantee of getting paid.  Real estate professionals and lenders do this every day.

It is very important that you and your real estate professional have a good relationship.  After all, you will be spending a lot of time together.  At the same time, when you find someone that you connect with well, it is important that you maintain loyalty.  Some agents will ask you to sign an exclusive buyer agent agreement.   This is a great option, as long as it outlines what happens if the relationship doesn't work out.  It's kind of like a marriage.  And when you have an escape clause, just consider it your prenup!  No one ever expects the relationship to go bad...but at times they do.  It needs to be addressed in the beginning how to deal with the situation if the relationship goes sour.  Our team uses buyer agent agreements with such an escape clause.  After all, if you don't enjoy working with us, why would we want to continue to work with you.  We would both be miserable.  Ask for a written escape clause from your real estate professional when you enter into an exclusive agreement.

As a buyer having an exclusive agreement means that usually your buyers agent will roll out the red carpet for you.  By expressing your loyalty, they feel that their time is not being wasted.  Nothing is worse to a real estate agent then working with a buyer for months and having the buyer call you because they have just signed a contract with a for sale by owner.  Or called on a sign in someone's yard and written a contract with that agent.  Your buyer agent's role is to look after you.  A buyer agent can do this much easier if you are loyal.  An exclusive relationship is definitely to your advantage.

All agents can show you the same property.  It is never to your advantage to hop from agent to agent to agent.  Likewise, it's never to your advantage to spend hours and hours riding around looking at signs.  Ask your agent to send you every listing that meets your criteria.  If they are doing this, you have access to everything the agent does and know what is on the market without wasting time and gas money.

If you are thinking about looking for a new home, find yourself a good buyer's agent today!

We've heard so many times, "we don't want to have problems, we'll buy a new house instead..."  Unfortunately  that is not the way it works.  New homes, as a rule, have many more problems than resales.  Part of the problem is that builder's often hire the cheapest subcontractors.  The builder also does not usually have the manpower to adequately supervise the subcontractors.  In our experience, there are always mulitple problems when buying a new home.  Many times it is upgrades that were not done correctly, or even skipped completely.  It can be a long process to go in and have the situation remedied....sometimes it is never fixed to your satisfaction.    We've had some really bad experiences with builders and heard so many horror stories from customers.  We like to make sure that you are completely prepared before entering into a contract for a new home.

Builder's have gotten used to the runaway real estate market.  Many builder's during that period developed a practice of treating real estate agents and customers poorly.  With the market slower, some builder's have seen the "error of their ways" while with others it's "a hard habit to break."

If you decide to buy a new home, we want to make sure you go in with your eyes wide open.  Having a brand new home has so many advantages!  It's a great feeling to move into a home that you had built and picked out all of the options for.  It's your colors, your options...everything....  If this is what you want, that is a great option.  Before you do this, hire a good real estate agent to represent you in the transaction.  Your builder will pay their fee and the home will not cost you any more.  That way, when they install the wrong color of stone on your home, or put the wrong tile in...you have an advocate to help remedy the situation.  Most active agents who are experienced in new home sales know who the good builders are .  They also know the good builders who are not.