The Art of Negotiating

No better feeling than getting a great deal! No worse than thinking you just got screwed... It's funny because some will fight for every cent at a tag sale and then pay full price for a piece of real estate while others never check their credit card receipt but will only bid half price on a property. People are weird!

Deals are out there to be gotten, here's how:

1) The final Sales Price is on average, 87% of the final List Price. Important to note, the final list price might take a few price reductions to become the FINAL list price. A $1 Million Dollar mansion might sit on the market for 24 months and reduce it's list price $25,000 each month. On the 20th month it'll be listed at $500,000 and then get snatched up for 87% of that list price. The final sales price ends up being $435,000.

2) But you can't offer $435,000 when it's listed at $1,000,000! This insults the seller, gives you a bad reputation and causes agony for your real estate agent... We all have to patiently wait until that list price gets down to where it should be.

3) Know who the seller is. Short-sales and foreclosures may represent the best overall deal but if you don't know where in the process it is, you might be missing the big picture. If the bank has already taken the property back, it will be priced to sell! That means it is not time to negotiate for a half priced sale... Someone is going to snatch it up, and quick (possibly for MORE than the listing price)! When the owner still owns it but the banks are contemplating a foreclosure and the whole process of a short-sale starts, it's time to negotiate a real deal. Half priced offers might work in this scenario because the seller (who is most likely desperate just to get out of the situation) will take anything! A normal sale - it all depends on the seller's motivation. Ask the questions, find out what their situation is. If they don't have to sell, you won't be able to negotiate a sweetheart deal. See rule#2 - be patient.

4) Comparative Market Analysis (CMA): Get your Realtor to do one for you. He doesn't know what you're talking about? Get a new Realtor! A CMA puts it in black and white what has sold and for how much. Market values are always moving - up, down, sideways. Currently, values are dropping 1.25% a month so figure that in. Knowledge is key.

5) Don't blow your spot. Got a pre-approval letter for $500,000? Did you submit it with an offer for $350,000? The seller will make a counter offer. See if you can get your lender to furnish a specific pre-qual letter for exactly what your offer is. A nice letter from your real estate agent saying "My buyers are offering as much as they can possibly afford..." It goes a long way. DO NOT, under any circumstances tell the selling agent how much you REALLY can afford! It's like a game of poker, the less info the other guys got, the better.

6) No such thing as a free lunch... Cash buyers, especially, this means you! If you low ball the heck out of a property and win the bid but the seller has changed your contingencies to no longer include a home inspection? You might not be getting as good of a deal as you think you are. For those that brag about getting a deal 50 cents on the dollar - it's probably just not true. That house was probably worth half as much as it was listed for and you bought it for 100 cents on the dollar!

Always remember the 87% SP to LP ratio. Get a CMA, figure out what the property is worth (what would an appraiser say it's worth) and then offer 80-85% of that. Expect a counter offer and go from there. Work with an agent who speaks and communicates clearly and concisely. Don't fall in love with any one property and happy hunting!

Information on Oil Spill affecting Florida

TALLAHASSEE, Fla. – June 4, 2010 – Preparation is key now for home, business and environment. The following Florida resources offer guidance or direct help.

Landfall predictions

Projections from NOAA indicate weathered oil from the leading edge of the Deepwater Horizon oil spill could impact the Florida Panhandle as early as this week due to a shift in winds and currents.Any impact to Florida's shoreline will likely be highly weathered – tar balls, oil sheen, tar mats or mousse, a pudding-like oil/water mixture that could be brown, rust or orange in color.

• The National Oceanic and Atmospheric Administration is tracking the oil spill's movement. For an update, visit the NOAA website at: http://www.noaa.gov
• If you spot oil on Florida's coastline report it to the State Warning Point at 1 (877) 2- SAVE-FL (1-877-272-8335) or dial #DEP from most cell phones.

Onsite actions

A single website was created to coordinate federal efforts as well as BP initiatives: http://www.deepwaterhorizonresponse.com

State and federal actions

• The State Emergency Operations Center remains activated at a Level 2 or partial activation.
• Governor Charlie Crist has issued three Executive Orders since April 30, 2010, declaring a state of emergency in 26 coastal counties that may see impacts. To read the Executive Orders, visit: http://www.dep.state.fl.us/deepwaterhorizon/default.htm#auth
• BP has opened claims offices in Florida. Visit the BP Claims Page toget addresses, phone numbers and to learn more: http://www.dep.state.fl.us/deepwaterhorizon/claims.htm

• On May 18, 2010, the Small Business Administration (SBA) opened eight offices in the Panhandle. To date, these offices have issued a total of 150 loan applications. Find an office (PDF format) at: http://www.dep.state.fl.us/deepwaterhorizon/files/small_business_admin.pdf

• The U.S. Environmental Protection Agency (EPA) conducted water and sediment sampling to use as a baseline for monitoring air quality data should it be affected by the oil spill. Read the reports and get updates as released at: http://www.epa.gov/bpspill

Health effects

There are no indications of any health risks due to the Deepwater Horizon incident so far. The Department of Health and DEP are monitoring health and environmental impacts to Florida's beaches and will notice an advisory if conditions become unsafe. To read more about the possible health effects from oil, go to (PDF): http://www.dep.state.fl.us/deepwaterhorizon/files/faq_doh_051010.pdf

Fishing and seafood

• NOAA extended the boundaries of the closed fishing area in the Gulf of Mexico to the state water line in Alabama and the western tip of Florida's Panhandle. The federal closure does not currently apply to any of Florida's waters, and it's called a precautionary measure. For the latest update, check the Deepwater Horizon website at: http://www.deepwaterhorizonresponse.com. Scroll to "Current Ops" at the top and click on "Fish and Wildlife Report."
• Fishermen who wish to contact BP about a claim should call (800) 440-0858.
• Report oiled wildlife to the Wildlife Distress Hotline at (866) 557-1401. For the safety of the public as well as the safety of animals, trained responders should conduct rescues.

Tourism

• Florida's tourism website, www.VISITFLORIDA.com, posts up-to-the-minute information on the status of any city or region in Florida. Vacationers may also view live Twitter feeds of any changes. Learn more at: http://www.visitflorida.com/florida_travel_advisory/.
• The Florida State Parks have not felt any effect, but updates on closings, if any, will be posted on their website: http://www.floridastateparks.org. Visitors can also get updates by calling 1 (850) 245-2157.

Tips for homeowners

• Coastal homeowners have inundated the state with calls about what they can do to protect their property. The state has offered suggestions on what is allowed and what to avoid in a single (PDF) file: http://www.dep.state.fl.us/deepwaterhorizon/files/protect_shoreline_tips.pdf

Tips for businesses and consumers

• The Attorney General's fraud hotline is open to receive reports of fraud or price gouging by individuals or companies trying to take advantage of the Gulf oil crisis. Call the hotline at: 1 (866) 966-7226.
• The Florida Agriculture and Consumer Services Commissioner gas price-gouging hotline is also operational. The toll-free hotline number is: 1 (800) HELP-FLA (1-800- 435-7352).
• Coastal businesses should keep good records and make loss of earnings claims for damages incurred as a result of the oil spill. Businesses should file a claim with BP by calling 1 (800) 440- 0858. Learn more at http://www.myfloridacfo.com/oilspill/default.htm or by calling 1 (850) 413-3089 or toll-free at 1 (877) MY-FL-CFO (1-877-693-5236).

Volunteer opportunities

• The Governor's Commission on Volunteerism and Community Service is encouraging Floridians and visitors to become a Coast Watch volunteer. To help or to get more information about scheduled beach cleanups and other volunteer opportunities at: www.volunteerfloridadisaster.org.
• BP established a volunteer program and set up a toll-free number for those interested in volunteering. Learn more by calling BP's community information line at 1 (866) 448-5816.

Learn more about Florida's response

• DEP launched a Twitter account, www.Twitter.com/FLDEPalert, dedicated to providing updates on Florida's response to the Deepwater Horizon Oil Spill.
• For a list of Unified Command, BP and Florida phone numbers, visit http://www.dep.state.fl.us/deepwaterhorizon/default.htm#numbers
• The Oil Spill Information Line is available at 1 (888) 337-3569 from 8:00 a.m. to 6:00 p.m. seven days a week. Additional phone numbers have also been established for persons with disabilities: (800) 955-8771 (TDD) or (800) 955-8770 (voice).

© 2010 Florida Realtors®

YTD Update

Key West real estate is doing great and my office is leading the way. Our sales for May 2010 vs 2009 are up 27% and we owned 24% of the market place!

The number of sales in Key West was up 58% (my office being responsible for half of that) and for the second month in a row the $ Volume was up (this month 2010 compared to 2009 up 37%!!!)

At these calculations, Key West real estate has 18 months of inventory left. This is the lowest levels since 2005!!!!

Statistics are fun (they can be used to prove anything) but real life situations are where we find the proof. I'm working with three buying clients right now and it's becoming increasingly difficult to win the bids and purchase the property that is priced correctly. The Sales Price to List Price ratio for May 2010 was over 93! The average is usually 87%. This is symbolic of property values ( less than $350,000) are hitting their bottom.

An example would be, a Salt Ponds condo listed at $145,000 the other day. My clients made a bid of $170,000 ($25,000 higher than the asking price or 117% of the asking price) and we didn't win the bid.

While this isn't the most fun thing to work with at the moment, a general increase in home values will be a true blessing for our little slice of paradise!

Everyone Loves Trible!

Just broke out a new slogan today. I've been using "True Professional" which really is the best way to describe my real estate career but it falls short of a great slogan and doesn't help anyone remember ME. And it is all about me!

So, introducing my new slogan: "Everyone Loves Trible!" It's not completely true, tons of people don't like me. I'm often too honest, too straight forward and some people just don't like that. But my wife is a Trible and there's a bunch of people that love her too!

I'll blog about it a bit more later. But for now, tell your friends, "Everyone Loves Trible!"

Real Estate and Bad News

"When are we going to catch a break?" Actually, it's more like, "when will the news people pick on someone else?" So there is that whole BP oil rig disaster leaking millions of barrels a day. It's been over a month and there is no sign of it coming towards the Florida Keys but that hasn't stopped the news people from reporting "tar balls" and "sludge sightings" on the front page of the papers and the news tickers, etc. We've been inundated with education on how the loop current will doom us all by transporting the oil through the Keys, into Miami and up the eastern seaboard. Ironically, not on the front page, there are just as credible scientists who insists the oil will never actually make it's way this far south. Why are the news people so dang negative?

It'd be a real horrible thing IF oil reached our beaches and mangroves but why are we panicking so much, so early? I'm of the mindset to be prepared for the worst and hope for the best. Seems like everyone else would just like to freak out.

June 1st starts the 2010 Atlantic Hurricane season and NOAA has forecasted a slightly above average probability of hurricane encounters. On average there are 11 named storms, this year they think there might be 12. What's troubling though, is the news anchors interpolation of this forecast compared to the 2005 hurricane predictions. In 2005 there was more than double the number of named storms than they had predicted so CNN will tell you that we should expect twice as many named storms THIS year than has been predicted.

If this isn't all just the worst, wait - there's more! All of the "experts" are coming out of the wood work to commentate on the idea of the what-if scenario of a hurricane - oil spill super blow out. Obviously all of the experts disagree with each other on what might happen but the only thing we know for sure is that we don't know. That and now everyone is afraid of moving here!!! Thanks national news media...

The truth is, if it wasn't a great time to buy before it sure is now! Sellers are lowering their prices, buyers (the competition) are getting cold feet and the deals are out there. We have a natural lull in the real estate market this time of year in the Keys so while most people down here are fearing fear itself, there are a few highly intelligent buyers grabbin' up some great deals. I know, I represent them!

Things are good and business is great!

BP gives Florida $25 million for beach ads

TALLAHASSEE, Fla. – May 18, 2010 – British Petroleum (BP) agreed Monday to give Florida $25 million to pay for an advertising campaign promising that the state's beaches remain open and fishing is going strong as the company struggles to staunch a massive oil spill off Louisiana's Gulf Coast.

The cash is on top of $25 million the company pledged earlier to offset the state's costs for preparing coastal regions for a possible landfall of the oil. The spill continues to grow roughly 350 miles from the St. Petersburg shoreline.

The announcement came following a meeting at the Florida Capitol between BP chief executive officer Tony Hayward and Gov. Charlie Crist. Hayward also said $15 million each in tourism grants will be distributed to Alabama, Mississippi and Louisiana.

"The big focus now is on how do we get the people of the Gulf Coast back to normal operations, the normal way of life," said Hayward, who admitted to a British newspaper last week that he assumes his $6 million-a-year job is on the line over the Deepwater Horizon oil-rig disaster.

Hayward echoed Crist in suggesting a theme for the state's post-spill marketing campaign: "Florida is open for business. The beaches are open and clean. The fish are biting, and everything is normal down here," said Hayward.

Last week, Crist said the company should pay the state almost $25 million for a marketing campaign and another $10 million grant to help Gulf Coast counties respond to the sharp drop in hotel bookings and visitors since the April 20 rig accident. Last week, Florida Restaurant and Lodging Association President Carol Dover said summer bookings along the Panhandle coast had dropped from their usual 90 percent occupancy levels into the teens, despite industry efforts to calm fears by waiving deposit deadlines and making cancellations easier if oil actually came ashore.

Dover said that with tourists staying away, "businesses have truly hit the 911 button."

The grants BP announced Monday come on top of the roughly $525 million – about $17.5 million a day – the company has spent trying to cap the broken well and cleanup efforts along four states' coastlines. During the first quarter of the year, London-based BP's profits averaged $93 million a day, according to media reports.

Hayward, however, was buoyed by signs Monday that the company had begun to contain the leak, which has been pumping more than 200,000 gallons of oil daily into the Gulf. BP said it is drawing about one-quarter of the escaping oil into a tanker ship, using a mile-long tube as a funnel. It also is preparing to attempt to "kill" the blown-out well in coming days, using mud and debris as a cork.

"We have achieved some considerable success," Hayward said. "We are very confident we have contained the spill in the vicinity of the leak … I do feel that we have, for the first time, turned the corner in this challenge."

Researchers, however, remain concerned that the oil congealing in the Gulf could reach a major ocean current that carries it through the Florida Keys and along the East Coast.

Kathy Torian, a Visit Florida spokeswoman, said the state had already planned a $2.5 million advertising buy to promote the state's Gulf beaches chiefly to a "drive-time" market stretching through much of the Southeast. But she said the additional BP cash will allow the state to expand the campaign into major national metropolitan markets, with online, newspaper and television advertising in the U.S. and international markets, primarily Great Britain and Germany.

Source: News Service of Florida, John Kennedy

Florida’s existing home, condo sales up in 1Q 2010

ORLANDO, Fla. – May 11, 2010 — Sales of existing single-family homes in Florida rose 24 percent in first quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 38,846 existing homes sold statewide in 1Q 2010; during the same period the year before, a total of 31,410 existing homes sold. It marks the seventh consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.

Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

"The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery," said Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness. "Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.

"How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets."

The University of Florida's Bergstrom Center for Real Estate Studies' latest quarterly survey of real estate trends also notes positive signs of recovery in the state's real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.

"Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," said Timothy Becker, the center's director. Private capital – both foreign and domestic – continues to enter the state in search of quality investment deals, he added.

Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2010 compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.

The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.

Inthe year-to-year quarterly comparison for condo sales, 16,897 units sold statewide for the quarter compared to 10,131 in 1Q 2009 for a 67 percent increase. The statewide existing-condo median sales price was $95,800 for the three-month period; in 1Q 2009, it was $110,000 for a decrease of 13 percent.

Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5 percent in 1Q 2010; one year earlier, it averaged 5.06 percent.

© 2010 Florida Realtors®