• Why Is Now The Time To Be Buying And Selling Real Estate Radio Show with Brian Mudd

Why Is Now The Time To Be Buying And Selling Real Estate?

This is the Treu Real Estate 911 Podcast with Lisa Treu. Lisa will share up to date real estate information with you that you need to know.

To listen to the show, click here.

Brian Mudd:       

This is the Treu Real Estate 911 podcast with Lisa Treu. Lisa will share up-to-date real estate information with you that you need to know.     

Welcome to Treu Real Estate 911. It's Brian Mudd, along with your local real estate pro, Lisa Treu, and you might have noticed, seasons have changed and so has real estate, especially right here in South Florida. But the Treus, they're always keeping you ahead of the curve and taking a look at the opportunities in any real estate market, and throughout the course of today's show, we're going to talk about four different catalysts that you can take advantage of in local real estate right now. Before we get started, if you're not already there, go to treurealestate911.com. That's treurealestate911.com. When you go there, it'll all make sense, because you're going to find the best local resource for real estate that is available, including the ability to search the MLS like a pro. You have great videos from the Treus, with informative tips about the real estate market, and also a guide to get you started, along with contact information. And the Treus are always ready to help you, seven days a week. Just reach out to them at 561-972-8326. That's 561-972-8326.

Lisa, a lot of folks are nervous that I come across about the local real estate market, because the change often has resulted in what is seemingly been a slower real estate market. What are the conditions like on the ground right now, entering summer?

Lisa Treu:             

Well, it's funny, because it's good news for maybe buyers, challenging news for sellers, and yes, you're right, we are seeing some communities a lot slower, and yet there's always an opportunity for both buyers and sellers in any market, just about understanding market conditions and then creating the right strategy to capitalize on the opportunity that is there.

Brian Mudd:       

Yeah, like I said, it's interesting. Within the past two weeks, I saw something that I've never seen before. I saw the best [inaudible 00:01:57] growth in a generation coincide with about half of the zip codes in South Florida having flat to lower prices year over year, coinciding with near record low mortgage rates, which ended up dipping back below four percent on a 30 year fixed. So you take a look at this combination of circumstances happening, and I don't know how long that lasts, but given that I've never seen it, I'm guessing not long. That, to me, sounds like it's an incredible opportunity, especially for people looking to buy or [inaudible 00:02:31].

Lisa Treu:             

It is amazing that we have this. It's almost like we've turned back the clock. We can go back not months, but years, to get back to this level of prices, interest rates, options. I mean, that's a big one. I mean, before there wasn't a whole lot to buy that people were excited about. This year, this spring, summer selling season, we have seen more choices for buyers. Now, there's still some areas that are very competitive, and yet knowing how to structure deals so you win in even those competitive, I mean, it takes skill. To take advantage of any opportunity, it takes more than just somebody saying, I mean first of all, do they even recognize the opportunity out there? But how do you position your clients so that they win? And that's what we're really great at.

Brian Mudd:       

No question about that. I can speak from firsthand experience, and the conditions are different. But when we talk about what's favorable, and you might have a different perspective, but maybe not. Everything you've got to take a look at in perspective for where we are today. Prices of homes are never going to be what they were in the 1950s, so there's no point in having that conversation, but coming out of the recession, the favorability and the opportunity for buyers is the best that I have seen since January and February of 2012.

Lisa Treu:             

Agree, 100%. I mean, as we said, we're going back years. And yes, there were great opportunities coming out of the economy we did when we just all had the plummet, and yet people didn't have the incomes or the jobs to support, to take advantage of the opportunity. This is the best opportunity that I would say most people can benefit from. We have the jobs. We have the income. Most people have great credit. They've repaired their credit, or they have good enough credit, and some savings, and now it's time to take advantage of this new opportunity that almost everybody can benefit from.

Brian Mudd:       

And that coincides with your first of four different conditions you've outlined to take advantage of right now. That is the overall relative affordability.

Lisa Treu:             

I mean, interest rates and prices settling a little bit all comes together to affordability, and that's where people are not just stretching and literally getting to a point where they are almost not able to afford it. This is where people can actually afford to buy their home, make wise choices, and do so comfortably and confident that this is the right time and the right home to purchase.

Brian Mudd:       

And when you're talking about affordability, people get caught up in, I think at times, their own roadblocks. Not having current information could end up confusing somebody. If you were looking at real estate a year ago, based on the factors we're talking about, it's vastly different. With mortgage rates, where they are today, you're talking about on the average property, just the average one in Palm Beach County, being about $250 cheaper. And that's all part of the education that you help those that are interested in real estate with, right?

Lisa Treu:             

Yes, we do a consultative approach, and we also sit down with the client and they hire us as their buyer's agent. And I will tell you, if I asked 10 buyers, nine of those buyers would say every agent is a buyer's agent, and that is not true. If you don't actually sign a form hiring them as a buyer's agent, they represent the deal. So think about it. If you went to buy a $200,000 or $400,000 house, you just hire anybody. And yet if you went and you had a $200,000 or $400,000 lawsuit, you would vet your attorney really, really well. People just don't do the same, and yet the implications of this purchase is not just today or next year. This could impact you for years to come, the decision of buying a home.

Brian Mudd:       

All right, let's talk about the seasonal opportunity. With the affordability you're discussing, and also this being a time when a lot of would be snowbirds might be looking, already talked, I pulled the numbers. Just from New York to Florida over the past year, 63,722 transplants. They're out there.

Lisa Treu:             

They are, and it's just started. I think what people thought when the tax law changes came that all the sudden they would all come at once, and they would just be running down here. Let's face it, they have homes to sell, jobs to get, businesses to sell, and also the challenge of getting New York to release them [crosstalk 00:07:05].

Brian Mudd:       

I was going to say, yeah, not being held hostage by the state of New York, because that was something else I was taking a look at.

Lisa Treu:             

Absolutely. And yet, so we've just started with that migration south, but one of the things we are seeing that is new this year, typically the best time if you asked me to put your seasonal product, so your condos, your 55 and over active communities, the places that snowbirds tend to come, the best time typically is put it on for August, for September, October, November, December. However, I will tell you, our seasonal buyers, those that want to use it this winter, are coming early this year. We are seeing them buy property right now. Why? A couple reasons. They tell us they don't want to be competing when everybody else is looking. They want to make sure they have time if they need to update, that it can be updated so that in January they're enjoying it, not going through a renovation project. So this year is really interesting. We are putting properties on the market that we would normally say maybe we should wait until August. We're going ahead and getting those on the market and getting them under contract.

Brian Mudd:       

That makes a lot of sense. Now, we know that when it comes to families that are relocating for school purposes, often April and May are the busy months for looking, June and July are the months for closing, to be in place. But you're suggesting there is still opportunity if somebody is trying to relocate before the school year starts.

Lisa Treu:             

Relocate, or if you're local, we still have time to get you in and settled, if you act quickly, for school. And a few years ago, about three years ago, we had a situation where we had a shortage, and people were moving in October and November, because there just weren't choices. Now, I will tell you that a lot of times, I think that people don't start thinking about it until it's time to do it, right now. Right now is the time. You need to be calling our office, sitting your consultation, getting pre-approved, today. I mean, we can still make it happen, and yet every day we're losing opportunity.

Brian Mudd:       

Realistically, how much time would you need in a situation like that, where somebody is really attached to a timeline of the school year?

Lisa Treu:             

Well, we can do it as quickly as two weeks, depending on where you're looking.

Brian Mudd:       

That's quick.

Lisa Treu:             

If there's an association approval, yes, our lenders are on it. We can close definitely in two weeks. 30 days is typical. That's a reasonable timeframe. And our buyers' team, they're excellent at sitting down, doing a consultation, and finding the right home quickly. And they know inventory better than anyone out there. I absolutely believe that. Honestly, even better than I do, because they are in homes all day long. They're looking at homes all day long, and they are the best at finding the right home quickly.

Brian Mudd:       

Now, I once remember you saying that somebody from your team had been in probably just about every home that was available for sale in Palm Beach County.

Lisa Treu:             

I will tell you, I have team members that if I described a type of home, they would give me four options right there. Oh, I saw this one. This would be a great fit. They know inventory, and not only that, they're exceptional at getting the picture. Because think about it, everybody that goes to buy a home, they have a picture of their dream home in their head. The goal is to get that out of your head and into your agent's head, and you do that by asking a lot of questions and knowing inventory, so you know what's possible.

Brian Mudd:       

Ah, it's such a good point. Now, when you take a look at the factors that we have in this real estate market, we've talked about incomes rising, the affordability, all these different conditions, and then also the seasonal buyer, people that still might be relocating for school. You have so many different factors that go into Palm Beach County that can be confusing for people that are outside the area, especially. So when you're talking about knowing the inventory, how important is it to know the area?

Lisa Treu:             

Oh, I think it's critical. I had an agent call on one of my listings today, and he did not know if the community was in a mandatory country club or not. Kind of scared me. I'm thinking, okay, and I'm educating him, which is fine, I'm happy to do it, to get my property sold. And then I'm thinking, he's not a buyer's agent, first of all, and his buyer really doesn't have anybody counseling him, right? Because the agent doesn't even know if it's a mandatory country club or not. And so I believe that the consultation and understanding the person's goals, and then understanding the area and the communities that will achieve those goals, is critical. Brian, I can't tell you how many times I get a call where somebody bought something a year ago, 18 months ago, and they hate it.

Brian Mudd:       

Oh, no.

Lisa Treu:             

Absolutely hate it, and when we ask them why, because look, sometimes it happens, and yet when we ask them why, when they described what they thought they were buying, there were better options for them. Maybe they never want to go to the community amenities, then why be in a community where you're paying for them? So understanding what's important to somebody, and more importantly, why it's important. The why matters a lot more than the what, because then we can really narrow it down, and I always tell people it's not about how many bedrooms and bathrooms you want. It's about the lifestyle you want, and then let us help you find and discover the right properties.

Brian Mudd:       

How different is the real estate market in Wellington, compared to Boca, compared to Boynton, compared to Jupiter?

Lisa Treu:             

Well, and I think it's even more local than that. I think that it's down to neighborhoods. So the real estate market, you can have one community that's next to the next community in Wellington, and one is super hot and one is not. And then the other thing is knowing where things are going. What are the trends? And part of the challenge is that if you're just looking backwards, if you're looking in the rear view mirror, and look, we have them in our cars for a reason. We do need to look in the rear view mirror.

Brian Mudd:       

Please do.

Lisa Treu:             

However, not when we're going forward. We need to take in what's happening behind us and what's coming, and Steve and I study a lot, not just what happened, but what we think is going to happen. And look, we're human. Sometimes our predictions might not be 100%. I will tell you, we're darn close.

Brian Mudd:       

Well, and while you're looking in that rear view mirror, also remember that your hazards are not to be turned on when it's raining. Just a real pet peeve of mine. And that all plays into taking advantage of the conditions where someone is looking to buy. You've noted the opportunity in many circumstances right now, that there could be better conditions in a particular circumstance, and that could have a lot to do with how you can negotiate.

Lisa Treu:             

Yeah, so we had a client that we were able to get them more than asking on their sale of their home, and we negotiated less and saved them on their purchase, partly because of expertise and partly understanding market conditions. And I will tell you, our clients often in multiple offers are winning because of the dream team that has been assembled. It's not just about one person. When you hire our team, you get us all. You get all of our staff, and all of the brainpower of all the Treus put together, as well as our other amazing agents, and then on top of that, our lender. Our lender goes to bat for our clients in multiple offers with the other agent. He's part of my sales team in theory, because it's not just about going to the bank. It's about having that dream team together, and I'm loyal, and I'm picky.

Brian Mudd:       

I know, yes, and it's all for a good purpose, too. It's all part of the success that you have for your clients.

Lisa Treu:             

Well, it's all about the client, and it's about having the best of the best of the best as a resource and as someone that's going to help us win in that competitive multiple offers, because I will tell you, on my listings I still see multiple offers, and on the buy side we still see them. We are exceptionally successful on multiple offers, on the purchase side, and a lot of it has to do with knowing how to ask the right questions, because sometimes with a seller, it's not always about the highest price. That's what everybody thinks. Sometimes it's about giving them the terms that they want, and then when we get from contract to close, having the resources of Steve, who has a construction background and he understands the inspection challenges at a very high level, having him as a resource, as part of our dream team, even when it's not his client, it just makes everything more successful for our buyers and sellers.

Brian Mudd:       

And I can speak as that former hair club for men guy, I'm not just a spokesperson. I'm also a client. What Lisa's saying is so true, they get it done for you just the way that she's laying out, and the key is to listen to them. Make sure you have good information and listen to them. The better information that you can get them, the more success you can have with the Treu Group. And again, if you're not already at treurealestate911.com, go there. Go there, treurealestate911.com. Reach out to the Treus. Buying, selling questions, seven days a week. They are ready to help you. 561-972-8326. 561-972-8326.