Welcome To Sarasota Real Estate Straight-Talk!

Each month, I will provide “no BS” analysis of Sarasota’s real estate market…and answer questions you have about buying, selling, short selling or investing in the Sarasota-Bradenton area.

Market Analysis – March 2012 (charts reflect most recent data – February)

Sarasota Market Commentary:

Buyers are here! Market is red hot! No doubt, no one can argue with clear stats from Sarasota Association of Realtors – see charts above. Despite optimism, Sarasota’s real estate market faces uphill battle, falsely relying on “outsiders” and investors to buoy our local real estate market:

1. Good news  is (in addition to what you see above in the charts) > www.realtor.com recently ranked Sarasota number 5 in the Realtor.com top ten list of “Turnaround Towns” in the United States? Yes, this is welcomed news. In fact, any good news is welcomed news.
2. Reality is investors bought 1.23 million homes in 2011, a 65% jump from 2010, according to the National Association of Realtors. Half of the homes purchased were distressed properties, that is, foreclosures or short sales.
3. Truth is, rental rates in Sarasota-Bradenton area continue rising, fueled by people losing their homes and others concerned about further market conditions. Good for investors.
4. Reason to celebrate is, the national median existing-home price for all housing types was $156,600 in February, up 0.3% from February 2011. Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 34% of February sales (20% were foreclosures and 14% were short sales), down from 35% in January and 39% in February 2011.  Total housing inventory at the end of February rose 4.3% to 2.43 million existing homes available for sale, which represents a 6.4-month supply at the current sales pace, up from a 6.0-month supply in January. Even so, unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 19.3% below a year ago. **Question: Are banks artificially propping up real estate markets across the country by releasing only enough inventory to absorb? This is what several market insiders think is happening. Shadow inventory points to this…and so do neighborhoods throughout Sarasota with abandoned properties not repossessed by banks…and not maintained either.
5. Most important FACT is, negative equity gap nears $4 trillion – The U.S. housing market contains a nearly $4 trillion-dollar negative equity hole, according to Williams Emmons, an economist with the Federal Reserve Bank of St. Louis.  Emmons made that statement while speaking at Housing Wire’s 2012 REthink Symposium.  The Fed Bank economist said it would take $3.7 trillion, much more than the $25 billion mortgage servicing settlement and other federal housing initiatives, to get homeowners with mortgage debt back to preferred loan-to-value ratio levels. Emmons’ data estimates the average LTV for those with mortgage debt is currently 94.3%.  That compares to preferred LTV levels among mortgage debt holders of 58.4%, which was the average struck among mortgaged homeowners in the period stretching from 1970 to 2005. Emmons told the crowd there is no easy way to fill that gap, and the deep hole is hardly discussed among the media and policymakers.  “We are sort of stuck in this,” he told the crowd. “It’s a sweat box we’re in, and we can’t get out. We are not talking about this very much … it’s just too ugly.”  He added, “It is like the debt that is outstanding is crushing the equity that is there.”

As you may know,  for months I have cautioned buyers to beware shadow inventory, short sales & foreclosures, evidenced by facts presented above.

However, undeniable market reality strongly points to multiple offers for properties priced right and in good condition – these properties are NOT sitting for long on the market.

Of course, short sales STILL come with heavy uncertainty – buyers and their agents don’t know if listing agent knows anything about short sales. Further, buyer doesn’t know if property owner really suffers (and can document) financial hardship…or if property owner is prepared to sign promissory note or lump-sum contribution at closing.

For buyers, message also is very clear: forget trying to lowball a property in good condition. Insist your agent prove fair market value – with solid comps and adjustments made after you’ve seen the properties of interest.

Now, what questions or comments do you have? Please call or email with your questions or comments.

If you have questions or comments, please call me @ (941) 914-9980 or complete the form below:

How To Hire Realtor To Sell Your House?

I don’t just list houses; I sell houses. I utilize strong (Internet) Marketing to present properties in their best light to potential buyers throughout the world. The National Association of Realtors (NAR) claims 92% of all house hunters begin their search for a home on the Internet. Therefore, do you think it’s important for the realtor you hire to SELL your property to possess effective (Internet) Marketing skills?  If so, please call me @ (941) 914-9980 – let’s meet to discuss my marketing plan for SELLING your property. Clearly, yard signs, paper flyers, MLS & newspaper ads are not enough today.

Selling a property today demands:

1. Realistic pricing based on most recent comparable sales.
2. Good condition – ideally, your property looks good on the outside (i.e. curb appeal), looks good inside (i.e. staged) & shows no deferred maintenance.
3. Proven marketing – my marketing presents your house in its best condition to potential buyers locally, nationally & internationally. Gone are the days when 4 or 5 local buyers will climb over each other to overpay for a Sarasota home for sale. When we meet, I gladly will show you my proven results. In fact, please ask me for contact info of most recent (happy) customers who’ve agreed to share their experience working with me.

Whether straight sale (very rare today) or short sale, I know how to market and sell Sarasota real estate from $55,000 to $$MM.

What’s Important To Know About Buying A House In Florida?

Canadians Dave & Alda enjoy their new home purchase.

Do you want to find the right property at the right price?

For every house hunter, his or her needs are different. Some people demand the best deal possible. They want a strong negotiator.

Other people want a helping hand to walk them through the process with no pressure or pushing.

Still others need an agent familiar with luxury properties and technology. They don’t want to make time driving around looking at properties. They want an agent who listens to what they want; who knows how to work with out-of-area (or even out of country) buyers; who will manage every step of the home-buying process, suggesting proven real estate attorneys, home inspectors, mortgage and insurance agents & service providers after settlement.

Equally important  – if not more important – they want to be able to trust an agent to help them negotiate the best price.

• Are you new to the Sarasota area?
• Do you know where in Sarasota you want to consider living?
• Do you demand a tech-savvy agent who’s willing/able to work with you from a distance?
• Do you know the various Sarasota neighborhoods?
• Do you know what a short sale is and whether you should consider buying a short sale or bank-owned property?
• Do you require FACTS before considering a property?

For relocation buyers, I oversee all phases of the purchase including coordinating with your lawyer, closing agent, home/systems inspectors, appraiser (if applicable) & provide complete video/communication of all stages of buying.

Perhaps more importantly, people quickly trust me – my actions are congruent with my words. I will research thoroughly and offer straightforward information about any property of interest. If you or someone you know wants/needs to buy a home in or around Sarasota, please call me at (941) 914-9980.

Dave & Alda of Canada (see photo above right) trusted me to find their Florida winter retreat. As you can see, we became friends in the process as their grandkids and my kids are swimming in their pool as this photo is snapped.

How To Avoid Foreclosure?

Mr. & Mrs. Jim Megiel, Sarasota, FL

Avoiding foreclosure requires a proven real estate agent who successfully has helped many other families avoid foreclosure. I have been involved in ~130 short sales.

I have short sold two personal investment properties – I know the sleepless nights. Regardless of income bracket, a short sale takes a heavy toll on people who (chances are) probably never have experienced financial hardship or difficult business decisions about a house.

How Do Mike’s Customers Feel About His Help?

If you’re interested in hearing what past customers say about my help, click Sarasota Real Estate testimonials. I would like to earn your trust, whether you’d like my help buying, selling or avoiding foreclosure.

Recently, I helped Erin & Pete Humphreys avoid foreclosure. When I first met them, they had tons of questions. Naturally, the whole short sale process was very new to them. They really wanted to sell and be done. They didn’t want a huge deficiency on their shoulders for years to come.

I initially sat with them for ~2 hours, answering their questions. Before I left, they were more calm. Though we encountered challenges during the sales process, Erin & Pete knew that we had a strategy. After closing, Erin shared Pete’s and her gratitude in the following note:

“Mike, I can’t thank you enough. You’re the very best!”

“I expected the short sale of my home to be tough and was lucky to have Mike Payne by my side throughout the way. Mike is professional and knowledgeable but most importantly compassionate and thoughtful. The short sale was an emotional experience and Mike served as real estate professional, counselor and overall shoulder to lean on.

I was upside down more than $100,000 on my home and was concerned about being saddled with that debt for the rest of my life. The circumstances that lead to the short sale wouldn’t allow me to manage that burden. With Mike’s guidance I was able to outline my reasons for proceeding with a short sale and appeal to my mortgage company to allow me to restart my life. I paid only $3,000 out of pocket, an enormous relief given the possibilities.

The process was challenging – it’s a lot to handle, but Mike kept me informed throughout the process communicating with title companies, the buyer’s agent and a real estate attorney. He stepped in to supply documents and answer questions for the title company so as to ease the burden on me. Hands down, Mike Payne is the real estate professional I would recommend for any real estate needs. –Erin H.”

If you have questions, comments or want to meet to discuss your house situation, please call me @ (941) 914-9980 or complete the form below: