The following is an exclusive interview with Watson Realty's Central Florida Regional Director, Mr. Ken Bennett concerning today's Florida real estate market conditions.Question: How would you describe the current Florida real estate market?
Mr. Bennett: The Florida real estate market is in a period of transition and adjustment after experiencing record annual sales since 2001. From a sellers perspective the market is highly competitive due to record inventories throughout the state, yet this is great news for purchasers as there has never been a greater selection of homes to choose from and prices have been softening throughout the state. It’s a great time to buy.
Question: What advice would you offer today’s home seller?
Mr. Bennett: Today’s home seller needs to 1) Price their property below any and all direct competition; 2) Completely catch up on all deferred maintenance… new paint, new carpeting, landscaping, etc. The home has to be in ‘showroom condition’; and 3) Listen to the advice of their Realtor when it comes to price adjustments. If you have complied with recommendations 1 and 2 above and haven’t received an offer to purchase within the first thirty to forty-five days, you need to bring your asking price down as the market is telling you the buyers are taking advantage of better buys elsewhere.
Today’s market is still active, but the qualified buyers are waiting for the best values to come on the market. When the best buys do become available, they are normally purchased within days of being placed on the market.
Question: What advice would you offer today’s home buyer?
Mr. Bennett: Do your homework. Ask your Realtor to research values within your intended price range over the last six to twelve months. Compare what has sold against what hasn’t sold within your price range to determine a realistic price point range for what you are looking for, based on what has actually SOLD vs. what is currently listed for sale. Ask your Realtor for the average listing vs. selling price differential so you’ll have a solid perspective as to what you should offer a potential home seller for their property. If your offering price is too low, you can upset and alienate a seller and lose leverage when attempting to negotiate favorable terms such as closing cost assistance, subordinate financing, etc.
And lastly, very carefully scrutinize the lender that you select to finance your purchase. Don’t be mislead by interest rates that sound too good to be true. Ask your Realtor for recommendations as to reputable lenders that they have had solid success with in the past… I would recommend steering clear of online lending institutions or lenders that are outside of our immediate area as you want to be able to deal personally with a lending institution when and if you run into some challenges on the way to closing your loan.
Question: What are the biggest challenges facing real estate agents today?
Mr. Bennett: Educating home sellers and home buyers as to current market values in 2007. The market is driven by two principles, supply and demand. When the demand for housing is high and the inventory levels are low, we relate to that as being a sellers market and prices escalate accordingly. A prime example of that phenomenon was in 2005 in Central Florida and in many other markets throughout the state. Conversely, when inventory is high and demand is low, we label that as being a buyers market and that’s where we find ourselves today.
The Realtor plays an important role in both the aforementioned markets by bringing buyers and sellers together at what is deemed to be a reasonable price, given the current market conditions. Today’s real estate agent has to work very closely with home owners to establish a realistic fair market value range for their property that reflects today’s values, not the escalated values we experienced in years past. That is a very real and present challenge to today’s Realtor as home sellers don’t want to lose any more equity in their homes then they have to while seeking a range of value that both fair and reasonable in today’s market.
Once again, properties that are priced properly sell quickly, those that aren’t don’t. It’s that simple.
Question: When do you expect the Florida real estate market to stabilize?
Mr. Bennett: The market will stabilize when the overall balance of supply and demand is achieved. Until current record inventories throughout the state are reduced to more manageable and recognizable levels, our market will continue to experience the dynamics we’ve witnessed throughout 2007.
The overall impact of the sub-prime lending boom that we’re just now beginning to obtain data on will also effect not only future mortgage lending practices and guidelines, but will further exacerbate the increased inventory or supply issues we’re experiencing due to the foreclosure of a fairly large percentage of those sub-prime mortgage loans.
Question: With more and more buyers starting their home search online, what changes have/are you making to capture these potential customers?
Mr. Bennett: Our data suggests that upward of seven out of ten perspective home buyers initiate their searches online. As such, we are continuing to focus a significant amount of our attention and resources towards our corporate website. Watsonrealtycorp.com wants to be positioned as the vehicle to address, answer, and assist with any and all real estate related issues for today’s real estate buyer and seller, and to make that process as simple and expedient as possible. Our goal is to be THE website that anyone would want to bookmark for all their real estate needs, and to have them come back to our site time and time again for any real estate related questions or interests that they might have.
Question: Do you blog?
Mr. Bennett: Yes
Final comments?
Mr. Bennett: This is the very best time to purchase real estate in Florida that we’ve experienced in recent memory. ‘Sitting on the fence’ and waiting for prices to drop further is a risky strategy inasmuch as any benefits that you are likely to realize by doing so will most certainly be offset by what you are losing in tax savings and what is sure to be a gradual yet stable increase in value over the next five-to-ten years. Get together with your Realtor and mortgage finance professional and take advantage of this window of opportunity that surely won’t last much longer. Ninety-six percent of the wealthiest people in this country have established their wealth through investment in real estate. It is still the American Dream… make yours come true today.
Mr. Bennett's bio: Born and raised in Los Angeles, Ca, and attended L.A. Pierce College in Woodland Hills, Ca. Served on active duty in the United States Navy for five years and was honorably discharged in 1977 and obtained my license to sell real estate in the Washington, DC. Area. Received many sales honors in the ensuing years and was issued my Broker’s License for the Commonwealth of Virginia in 1982, and have been actively engaged in real estate management since that time. 2007 marks my thirtieth year in this industry.
Related Florida real estate views:
More people sharing living arrangements suggest University of Florida
Homebuyers and sellers in Florida may have fewer Realtors to choose from
Real estate agent costs rise as income dwindles
- Greg Staker Watson Realty Corp. 407-304-0255
