South Florida Real Estate Newsletter - by Izzy Buholzer, Miami

Service & Excellence in Miami Real Estate



May 23, 2006	1st Edition	www.IBMiami.com

Izzy Buholzer

Lic. Realtor®/Agent
Home & Business Realty
Tel. 786-287-6999

Stay in touch with South Florida's Real Estate and Business owners. Short and valuable information related to property investments in Greater Miami and the Beaches.

In this issue:
- Izzy, How Is The Market?
- Fixing-Up Dos and Don'ts
- Beat The Slow Market -
Use Home-Staging

IZZY, HOW IS THE MARKET?

::: NEWS :::

This is the top FAQ for realtors. How is the market? Well, for a realtor the market is always good! Of course it is good, since we are earning a commission. What changes dramatically is the inventory or in other words the amount of properties on the market. So, next time you see a realtor ask him or her about the inventory.

How is the inventory changing in South Florida? This is not a bubble bursting but a natural and healthy shift into a buyer’s market. The graph below shows you that the amount of properties on the market has more than doubled in the last seven or eight months. Sales and subsequently prices have remained flat since the beginning of the year. The three major components that contributed to this situation are:

1. Interest rates are on their way up the economical cycle.
2. More than 40 % of the properties sold in the last 4 years were sold to investors.
3. Due to oversupply rents have remained flat and are substantially below the standard ratio.

What should you do? Similar to the stock market, the real estate market is a long term investment. If you planned to make a quick profit and find yourself in an upside-down situation (rental income below cost) combined with rising interest rates, you are probably highly motivated to sell - even if this means to sell at cost or below. Long term investors are used to fluctuations of the market and understand (and can afford) periods of a buyer’s market.

Article: Izzy Buholzer, IBMIAMI.com

Florida existing home sales: 18,881 (-22%yr)

Florida existing home median price:
$248,200 (+17% yr)

Florida consumer confidence: 89 (+2)

30-year fixed rate mortgage: 6.58%

National existing home sales: +0.3 %

Median price of an existing home (U.S.)
$218,000

Pending home sales index: 116.2 (-1.2)

National consumer confidence: 109.6 (-4.6)

U.S. new home sales:
+13.8 %

Median price of a new-home (U.S.): $224,200 -$13,900

Source: Florida Association of Realtors (FAR) May 2006

investing - fixing-up dos and don'ts

Gene and Katie Hamilton have spent their careers remodeling older homes, writing syndicated columns and books, and making TV appearances to talk about home repair and do-it-yourself projects.

Katie Hamilton offered these quick dos and don'ts at a roundtable discussion when the National Association of Real Estate Editors met recently in Charlotte, N.C.:

• Do work only in a neighborhood you've studied. Who's buying there? Who's going to buy there? Is this a neighborhood on the way up?

• Do work with a local real estate agent who knows the market. Real estate agents often buy and flip property themselves, so on the one hand, they're your competition; on the other hand, they know the market from an investor's point of view.

• Do spend conservatively. It's too easy to run over budget. Do the math and realize that every extra penny you spend comes out of your profit.

• Don't get involved in fixing and flipping "if you are involved in a full-time job," Katie said. The project is far more time-consuming than you imagine.

• Don't assume that your spouse or partner has repair/rehab skills you didn't know about, or that he or she has a personality that lends itself to challenges and multitasking. A spouse who has never picked up a paintbrush is not going to morph overnight into an experienced painter.

• Don't skimp or use unlicensed workers on key tasks such as plumbing or electrical work. The building must meet the code.

• Don't start a flip job in the wrong season. Katie talks about a sudden storm ripping the tarps off a roof under construction. You may not want to be without a roof during the summer rainy season in Florida.

Words to the wise from Katie: "It takes twice as much time and three times as much money as you expect."

Source: The St. Petersburg Times, Judy Stark (05/17/06)

Beat the slow market - use home staging

If you want to earn the maximum sales price for your house or condominium, first read Barb Schwarz's new book, Home Staging. It reveals with words and pictures how to show prospective buyers your home's potential with proper presentation.

The author, a professional home decorating stager, shares her secrets for making a home show its best, even on a limited budget. Her goal is to make your ordinary home into a model home. Because most home buyers have little imagination, until a home is staged and professionally presented, most prospective buyers won't be able to spot its potential.

Schwarz is the organizer and creator of this new industry of professional accredited home stagers. In some cases, staging a home makes the difference, especially in a very slow local market, between selling and not selling.

Home Staging, by Barb Schwarz. John Wiley and Sons. 205 pages

Find out the Value of Your Home

Unsubscribe
This email is courtesy of IBMiami.com. You are currently subscribed to receive our Tips and Tricks for Real Estate & Business Owners in the Miami Area. Should you be absolutely convinced that you can no longer afford to receive this free Newsletter - Click here to unsubscribe and we will promptly remove you from our mailing list.