Pinecrest Florida Real Estate and More...

This morning on the Today Show Ivanka Trump was giving her opinion of the real estate market.  One of her suggestions to Homeowners was to wait a few months before putting their house on the market for sale.  This is the kind of real estate blanket statement that just drives me crazy! 

Real estate is local, in New York waiting a few months to put your property on the market might be a good idea, but certainly NOT in Pinecrest (Miami) Florida.  Here in Pinecrest we are down to 6 months of inventory, down from a high of 53 months of inventory.  WAIT – absolutely not.  Currently there are more Buyers than we have inventory to show!  Properties that are properly priced for their condition and location are selling; and selling quickly.  If you are thinking of putting your Pinecrest Florida property for sale; Do Not Wait!

Sometimes you have no choice but to vacate your home before it sells, this is really not the best scenario; it can be very costly and risky to do so.  Of course you still have to pay your mortgage, property taxes, utilities, etc, but here are some things I want to share with you that you may not have thought of.  These can add up to some very serious expenses.

Once you move out of your house, someone needs to check on the house regularly and actually go inside and check for problems and also walk around the yard to make sure everything is fine.  There are several things you need to think about once your property is vacant; the first thing you need to worry about is vandalism.  When kids find out a property is vacant it just becomes an adventure for them; a great place to try to get into and cause mischief.  Even if you have an excellent security system; there’s always the pool and patio.  Just one easy jump over the fence and its party time!

Another thing to consider is storm preparation.  If we have severe weather coming our way, who is going to put up the storm panels, or close the accordion shutters, secure the property and come back after the storm to inspect the property and handle any damages and clean up?

In case of an emergency, let’s say your security system goes off or there is a water leak, how will that scenario be handled?  Who will answer those emergencies and be able to make decisions?

Naturally you still have to pay and handle the arrangements to make sure the lawn, garden and pool are regularly maintained; and make sure these are trustworthy people!  Also, remember to leave your air conditioner on, if not, you might be facing some very serious mold issues.

You should speak with your insurance agent because homeowners’ insurance policies typically require that the owner live in the house.  Homeowners' policies generally don't cover vacant houses because vacancy increases the possibility of damage and vandalism.  Once you move out, you need to tell your insurance company that your house is vacant; and this is a double edged sword.  When you tell them, your policy may be terminated or your premium will go up significantly.  Some insurance companies have policies for vacant homes, some don’t insure vacant homes.  If you don’t let the insurance company know the house is vacant, and should something happen to your property, such as appliances have been stolen, storm damage, broken windows, etc, it will probably not be covered by the insurance policy.  Your claim will be denied and you will have to pay for all the damages yourself.

Once you transfer your homestead exemption, and if your property stays on the market long enough, your tax bill will certainly be higher.  Since the property is no longer your primary residence, your real estate property cap will be removed; so get ready for a higher tax bill.

The bottom line is, try to sell your home before you have to leave.  You really don’t want to leave behind a vacant home; the probability for costly problems is just too high.  Get it sold and move forward with your life.

Should I sell now or wait it out?  That is the question so many homeowners are asking themselves today.  I do not have a crystal ball but I tell my Pinecrest Florida homeowners that if they want to sell, they need to get their home on the market ASAP!  You will most likely get more money for your home today than you will 6 months from now.

Here is a current example of what the Pinecrest Florida real estate market is doing.  Eight months ago, in April, I was asked to do a market analysis on a Pinecrest Florida home.  At that time I told the homeowners they could expect to sell their home for $825,000.  I met with these same folks yesterday to go over an updated market analysis.  I showed them that today they could expect to sell their home for $785,000.  The expected sales price of their home dropped 5% in these past eight months.

A balanced real estate market has 6 months worth of inventory, more than that it’s considered a depreciating market, less than that we have an appreciating market.  Today in Pinecrest Florida we have a 16 months supply of single family homes – prices will be going down.

So, if you are thinking of selling your home, get off the fence and get it on the market today!

When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.

How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________

 The purchase price of the home is the sale price, not the amount of money you actually contributed at closing. 

2. Total adjustments: _______________________

 To calculate this, add the following:

• Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
• Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
• Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. Your home’s adjusted cost basis: _______________________

 The total of your purchase price and adjustments is the adjusted cost basis of your home. 

4. Your capital gain:  _______________________

 Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.

A Special Real Estate Exemption for Capital Gains

Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:

 ·  You have lived in the home as your principal residence for two out of the last five years.

·  You have not sold or exchanged another home during the two years preceding the sale.

·  You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.

Reprinted from REALTOR® magazine with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Price it right…and they will come – in all markets!  I emphasize to Sellers the importance of pricing their property correctly – right from the start.  I explain to them why the best Buyers are the ones that will come to visit a property in the first few days of the property coming on the market.  These Buyers have been looking, know the market, are qualified and are ready to buy; their agent is just waiting for something new to come on the market to show them.

The two major factors in determining price is location and condition; they are both interrelated, this applies to all markets.  My market is Pinecrest Florida; average sales price last year was $1,250,000.  In the past month I have put two properties on the market, properly priced for 2010, not 2005, and both have had offers accepted in just days.  This property was shown for only one day to several Buyers and it immediately went under contract.

Yes, the Buyers are there – at all price ranges, but the properties need to be priced correctly for the times, for the location and for it’s condition.

This week I went on a listing appointment where Zillow's zestimate has the property valued at $1,986,500 - and the homeowner showed it to me.

I specialize in the Pinecrest Florida real estate market, and after a thorough analysis, I showed the homeowner that their property would currently sell for $650,000 to $700,000.

Where does Zillow get these numbers?  Not even at the height of the real estate market would that property have appraised for $1,986,500!

Homeowners, Zillow is a "fun" site, treat it that way.  If you really want to know what your property's current market value is, hire an appraiser or speak with a real estate agent that specializes in your area.

I have just received the
International Sterling Society Award
Top 3.3% of All Coldwell Banker
Sales Associate in the United States

Top 8% of All Coldwell Banker Sales Associates Worldwide

and was recognized as a
2009 Miami-Dade County Top 100 Sales Associate

You have to price your property correctly right from the start to get it sold in a reasonable amount of time.  Your Buyers are out there looking; they know the inventory.  Their agents are checking the MLS constantly looking for new listings.  If your listing matches the Buyer’s search criteria they will be visiting your property as soon as possible.  To keep your  property from sitting on the market for months and months, right from the start, it has to be ready to show, inside and out, and your listing price has to be correct; you are going to have to sell that listing price three times.

 First, you have to sell your listing price to the real estate agents.  If your property is overpriced, the real estate agents will most likely not even show it, why annoy the Buyers by showing them an overpriced listing?  When the listing price is out of the price range the Buyer has asked to see, your listing won’t even show up when searching the MLS.  Even if you think the price is “negotiable”, a Buyer will not even be considering your property since you priced yourself right out of the agent’s search results.

Secondly, you have to sell your listing price to the Buyers.  With all the tools available to Buyers on the internet they have become very educated.  Most Buyers start their home search on the internet weeks before contacting an agent.  They have a pretty good idea of general home values.  If your property is overpriced, why would they want to deal with you when there are so many other properties on the market to choose from?  If you think, well I’ll just test the market at this price and if nothing happens in a few weeks I can come down.  Well guess what; wasting that time probably cost you that Buyer that has been out there looking.

And lastly, you have to sell your listing/sales price to an appraiser.  Let’s assume you did receive an offer at your high list price; it won’t appraise.  And if doesn’t appraise you usually don’t have a sale.  Mortgage companies are not going to lend more than what a property appraised for, and most folks, especially nowadays, will not pay over appraised value.  So at this point your choices are to take your property off the market, renegotiate the sales price, or put your property back on the market; though you’ll find yourself in the same boat again.

When a real estate agent advises you about the real estate market; please listen and ask questions.  I tell my homeowners that I would rather have them turn down offers than not receive any offers because they are overpriced. 

So remember, you need to sell your listing price three times; to the real estate agents, to the Buyers, and to the appraiser.

I can't emphasize how important the curb appeal is in the selling of your home.  Don´t let the outside turn buyers off before the inside turns them on!  Quite often Buyers drive by and right there and then decide whether they want to visit inside or not.  Here are some suggestions:

Lawn:  The yard should be neatly mowed, raked, and edged.

Trees/Shrubs:  Should be pruned and shaped to compliment the property.  Consider adding seasonal flowers.

Sidewalks/Driveways:  Should be swept and washed to remove debris, dirt, and stains.

Painting:  Check the home for any needed maintenance just as a Buyer would.  Repaint or touch up as necessary.  You can´t find a better investment when you are selling your house than paint! 

Doors/Windows:  All doors and windows should be in good working order.  Clean and paint doors if necessary, wash all windows and replace any broken or cracked window panes.  Screens should be free of any tears or holes.  Inspect all locks to ensure that they are functioning properly.

Roofs/Gutters/Downspouts:  Check for loose or missing shingles or tiles.  Does the roof need to be pressure washed?  Clean out gutters and downspouts.  Touch up peeling areas on gutters.

Pool:  Sparkling!

Items not included in the sale:  Please remove, replace or point out to me any items such as statuary, fountains, ornate items, etc. that will not be included in the sale of the property.

When your home goes onto the MLS - it needs to SPARKLE!  Your ready, willing and able Buyers will be visiting within the first three weeks.