State of the Union

Well, here we are in 2012. Where did 2011 go? As we reflect back on the last 12 months it’s clear that 2011 was a time of transition and renewal for the Tampa Bay Real Estate Market. While recovery has been slow, it appears that the housing market has turned the corner. Unemployment rates have dropped, new home sales are on the rise for the first time in 2 years, consumer confidence is improving, the real estate market seems to be stabilizing and mortgage rates continue to remain low.

Now let’s drill down to our local market. At the risk of sounding like an optimistic Real Estate Broker, I’d like to share some of the things that we’re excited about for 2012. At CENTURY 21 Beggins Enterprises, our December 2011 sales were nearly triple that of December 2011, a well needed blast to kick off 2012. Whew!

What I’m about to say next is dangerous. If I tell you the truth, you may mistake it for exaggeration and puffery, at the same time, if I don’t tell you; you could miss out on some opportunities. So I’m going to do the right thing and tell you the truth. The inventory of homes on the market countywide has dropped from a 27 Month Supply of Homes to a less than 6 month supply of homes on average. In the under $100,000 price range, inventory supply is down to less than 4 months. That means if sales continue at this pace, the under $100,000 inventory will be sold out and what’s more noteworthy is that unless banks release a ton of cheap foreclosed homes, this inventory won’t be replaced. You see, builders can’t construct more homes on lots for less than $100,000. So buy them while you can.

This will result in an increase in average sales price. If fewer inexpensive homes sell, the average sales price will go up. Please don’t give much credence to the average sales price statistic; it simply relates what price ranges are selling, not the value of homes. Value is determined by sales of similar homes, not average homes.

If you’re in the market, another thing you need to know is that as a result of the smaller inventory, “good homes” on the market are getting lots of attention often times receiving multiple offers and getting bid up above full price. Who would have thought that would ever happen again? Markets do correct and today’s low inventory definitely indicates that a correction is underway.

In a normal market, this environment would lead to an increase in prices, but don’t get too happy yet if your Selling. With nearly 70% of all home purchases using bank financing, the appreciation will be delayed do the appraisal rules. Appraisers justify current prices using past sales, so too often, even if buyers are willing to pay more to get what they want, many times lenders refuse to lend because the past sales don’t justify the contract price.

In any event, 2012 looks to be a more positive year for the real estate market in Tampa Bay. We’re excited to make the most of it and want to thank you for your business. Our Sales Force is excited and we’re ready to get back to work helping buyers and sellers understand the complexities of this market. Please consider the agent who sent you this newsletter to help you and your friends with real estate needs. They’re specializing in your neighborhood and have the full support of our organization. We can help with Loans, Title Insurance, Home Warranties, Short Sales, Foreclosures, and have a Special Program to help Investors learn the Art of Investing in Real Estate. Check out www.C21Beggins.com for a FREE Video Course with access to all types of tools to help Investors make great decisions.

May you have Fair Weather and Following Seas throughout 2012!

Craig Beggins, President

CENTURY 21 Beggins Enterprises

Season’s Greetings from CENTURY 21 Beggins Enterprises

As we bring 2011 to a close, we’re thankful for many things.  To name a few, we’re thankful to have made it through perhaps the toughest economic cycle in the last Century.  We’re thankful to be celebrating our 20^th Anniversary with CENTURY 21 in June of 2012.  We’re thankful for a tremendous Team of Support Staff and Amazing Team of Real Estate Salespeople and finally we’re thankful for the many great friends we’ve made and clients we’ve helped over the more than 10,000 transactions we’ve closed.

Along with being thankful for many blessings, we’re also quite optimistic about the future.  The past 6 years of declining market and incredibly reduced prices have taught us all valuable lessons. 

We’ve learned that Real Estate values cannot appreciate at double digits for long without retracting.

• We’ve learned that real estate markets over correct.  They go up too high and they come down to low.
• We’ve learned that after a big boom comes a bigger bust.
• We’ve learned that after a big bust comes a bigger boom.
• We have learned that Real Estate is a tangible asset, that unlike stocks, no matter how bad the market gets, it still has value and gets traded. It never goes to zero.
• We have learned that a lot of Buyers are purchasing great cash flowing properties now, and others are getting dream homes for their families at less than replacement cost.
• We’ve learned that recessions and declining property values hurt a lot of people, and
• We’ve learned that our Short Sale System helps a lot of these people
• We’ve learned that recessions and declining property values make a lot of people rich, and
• We’ve learned that our Own America Course is helping a lot of these people learn the Art of Investing in Real Estate.

This reminds me of the Chinese symbol “Yin Yang”  which teaches that inside every crisis is an opportunity.  Yin and Yang are negative (Yin) and positive (Yang) forces. These forces act together to create energy.

As we work hard this month to finish our closings for the year, we look forward to harnessing the energy we’ve amassed over this cyclical downturn to create a new future for ourselves, our agents and staff and our valued friends and clients.

We thank you for your support and wish you a safe and festive Holiday Season.  And of course, please continue to support the agent who is bringing you this newsletter and remember that we’re here to help you any way we can.

We have dynamic departments to help you with nearly every facet of real estate ownership.  Senior Living, Investment Properties, Waterfront Sales, Golf Course Sales, Short Sales, and even normal Sales and our team of sales people have an amazing support system that included tools for you to use.  So ask your agent about:  Listingbook, Own America, Abraham and Sweeney (Foreclosure Defense and Short Sale Negotiation Lawyers), and our incredible Marketing Strategy that’s generating over 1000 leads each month.

Until next time, may you have fair weather and following seas!

Craig J. Beggins, President

CENTURY 21 Beggins Enterprises

Home Maintenance Tips For Fall

As summer fades into fall, see our checklist to preserve the health of your home.

1. Clean the gutters: As you clear leaves, dirt, and pine needles from gutters, examine downspouts for damage. Check the flashing around your chimney and look for damage to the roof that may lead to leaks
2. Change the filters: Change the air filter in your central air conditioning system or if you have a window air conditioning unit, remove from the window or place a waterproof cover over it to prevent damage. Change filters in stove vents, clothes dryers and room fans if applicable.
3. Drafty days: Evaluate the seal and caulking around the window frames to prevent losing heat in the winter.
4. Fix leaky faucets: Avoid broken pipes in cold winter months and repair leaky faucets in your kitchen, baths, and laundry room now.
5. Clean sweep: Examine and clean your fireplace damper and ensure the flue is operating correctly. A professional chimney sweep may be necessary.
6. In hot water: Often, if you live in an area with hard water, extra amounts of sediments build up in your hot water heater. Drain and make sure rust is not developing.

What do we have to be optimistic about anyway?

In my world, sales are up, inventory is down, new home construction is up and overall we’re seeing signs of improvement in the Real Estate Market.  In fact, our October 2011 sales doubled our October 2010 Sales.  This is all GREAT News.  So why aren’t we more optimistic?  In a word, fear!  The media is constantly casting doubt on the Real Estate market.  What if this is a temporary sales increase, what if interest rates go up, what if inflation enters the market and force prices up.  What if inventory continues to drop, prices are forced upward and appraisers fail to justify the pricing?  Oh yeah, let’s not forget about the unseen Shadow Inventory that is lurking in the background.  All these things can and most likely will happen at some point.  The Million Dollar Question is when will it happen?  The fact is these things are not happening now!

While I don’t profess to have a crystal ball, the one thing I’m confident about is that Right now, Buyers have a decent supply of homes to choose from.  Right now, Qualified Buyers can lock in fixed rate 30 year loans at less than 4%.  Right now, the market has enough comparable sales to justify market pricing, and Right now, inflation is being controlled by the Federal Reserve.  All this spells that Right Now may be the best time to buy real estate that most of us will ever see in our lifetime. 

As a Full Service Real Estate Brokerage Company, our job is to empower our customers with knowledge to make sound real estate decisions whether Buying or Selling Real Estate.  To this end, I’d like to offer you access to a few tools you can use.  For those of you looking to learn about housing trends, I encourage you to visit www.c21beggins.com and watch the introductory for the Introduction to the Art of Investing in Real Estate.  If the video captures your attention, sign up for the free video course.  If it doesn’t, move on and watch TV.  The author, Greg Rand, does a fantastic job of explaining how the Great Depression compares to today’s Great Recession and how he expects the recovery to be similar as well.  This segment is in module 5.  Our company has purchased this program and had made it available to you for FREE!  Also, inside this program, is access to tools that will help you assess the income potential of virtually any property you’re interested in as well as links to resources to identify population trends and what market rents are in a given area of the country.

For those of you thinking about buying or selling or those of you who know someone who’s thinking of buying or selling real estate…contact the agent…who sent you this newsletter and ask them to set you up with a FREE Listingbook account.  You enter your search criteria and each day, Listingbook will send you a daily report showing you changes in the market you’re interested in.  This will enable you or your friends and family to gain access to the market without having to go through a REALTOR so you can quietly do your own research until you’re ready to work with an agent. 

So if you’re think you may want to…sell now…to take advantage of today’s buyers’ market, let CENTURY 21 Beggins Enterprises interview for the job of selling your home.  Obviously you want to hire a company that gives your property world class exposure and empowers customers to make good real estate choices.  Check out how our listings are promoted on these major real estate websites:  www.Trulia.com, www.homefinder.com, www.realtor.com, www.zillow.com, www.yahoo.com and of course www.C21beggins.com and www.CENTURY21.com.  You’ll notice that our listings are ultra-enhanced and loaded with tons of high quality photographs to help us customers sort through and narrow down the inventory at their own pace. 

And, finally, if you need to sell and are upside down, and many people still are, contact the agent who sent you this newsletter and ask them to set you up with a FREE Attorney Consultation to help you assess your situation.  You should know your options.  Thanks for your business!

Until next time, may you have fair weather and following seas!

Craig J Beggins, President

CENTURY 21 Beggins Enterprises

How to lower your property taxes

As home values shift, many homeowners are left wondering why their property taxes are going up. See the simple steps below to potentially lower your property taxes.

• Learn the system- Every town is different when it comes to assessments, so visit your local assessor’s office and learn their procedure. Get the forms you need to file and learn when the deadlines are for filing that appeal. You typically have 60 days or less from the time your annual assessment was mailed to lodge your appeal.
• Get a copy of your property card- A property card contains all the information the assessor used in determining the assessed value of your home. Make a copy for your records.
• Neighborhood comparisons- Contact your CENTURY 21 Beggins Agent to find out what comparable homes (similar to yours in size, vicinity, amenities etc.) have recently sold for. If you discover that your property is valued at least 5-10% higher, than the comparables, you may have a case.
• Ask for a reassessment- Use any evidence you’ve found that supports your claim and ask for a reassessment. Examine your property card for inaccuracies, these are common and can be corrected on the spot and enable you to avoid a formal hearing altogether.
• File an appeal – While the rules for appeals vary by location, most appeals are submitted in written form to county boards with a statement explaining why you feel the evaluation is inaccurate. Support this claim with evidence (property cards and photos can be useful if comparing the condition of your home to others), and make your case.

Welcome Quarter 4:

Well, it’s hard to believe that we’re in the last quarter of 2011 already!  It’s funny; the other day I went to the bank and the teller looked at me with sorrowful eyes and asked, how is your business doing?  Boy … was she surprised at my response! 

I told her that we were “on fire”!  You can’t listen to the newscasters, I said.  Our August Sales were up from 107 in August of 2010 to 170 in August of 2011 and what’s more than that, over 35% of our sales were to CASH Buyers.  She thought that was surprising, so I asked her, how much interest is your bank paying on CD’s?  She replied that they’re competitive at 0.8% for deposits over $100,000.  This was fun.  I let her know that our Real Estate Investor Clients are buying properties for cash and consistently earning returns in excess of 8% and those who are taking advantage of today’s historically low Interest rates are getting even higher returns.  I guess that’s why money is leaving your bank. Oops! 

Then I went on to let her know some Market Stats.  Our MLS reported that in August of 2007, there were 21,851 homes for sale in the MLS and there were 1,154 sales for the month resulting in an 18.9 Month Supply of Homes, and, the same report for August of 2011 indicated that the Inventory was down to 10,181 homes for sale in the MLS and there were 1,957 sales for the month resulting in a 5.2 month supply of homes.  Furthermore, the days on market and List price to Sales price Ratio has remained steady all year at about 100 days and 95% respectively.  I could see her tune beginning to change.  Oh, one more thing, the average sales price has increased from $142,000 in January to $165,000 in August.  Wow, I had no idea, she said.  So I invited her to one of our weekly Career Sessions. 

The fact is, well priced homes are selling and they’re selling fast, so much so, that with the lower supply of homes, multiple offer and bids higher than full price are not uncommon.  Please understand, I don’t mean to make this sound easy, it’s not.  Our company has invested in numerous systems and tools that are now generating in excess of 1000 leads each month to our agents.  This comes at a huge expense to the organization and is accompanied by diligent effort of hundreds of trained sales professionals who I’m very proud to have affiliated with our firm.  Check out our enhanced listings on Yahoo.com, Trulia.com, Zillow.com, and REALTOR.com and you’ll see what I’m talking about.  Our listings, quite simply, stand out from all the rest.  I guess the old adage is true, the harder you work, the luckier you get! 

Okay, enough boasting for now.  Whether you’re looking to buy or sell real estate, we’re here to help and we’d really like you to operate from a position of strength.  If you’d like to see why smart buyers are buying now, go to www.C21Beggins.com and sign up for the FREE Art of Investing in Real Estate Course. This will give you an entirely different look at the state of the Real Estate Market and how our Great Recession of 2011 is similar to the Great Depression of 1929 and how the recovery is expected to be similar over the long term.  Another great tool that we’ve invested in for our Buyers and Sellers is Listingbook.  This amazing tool will give you access to search the MLS for properties you’re interested in so you can see firsthand what’s happening in the market without having to rely on an agent and it will send you daily reports to keep you in the know.  And, since we’re not out of the woods yet, if you need to sell and are upside down, and many people still are, contact your CENTURY 21 Beggins Agent and ask them to set you up with a FREE Attorney Consultation to help you assess your situation.  You should know your options.  Thanks for your business!

Until next time, may you have fair weather and following seas!

Craig J. Beggins, President

CENTURY 21 Beggins Enterprises

Avoid these mistakes when selling your home

In a buyer’s market sellers need to take steps to put their property above the rest. To keep your home from languishing on the market, avoid these common mistakes.

Don’t forgo a CENTURY 21 Beggins agent and attempt to sell on your own: A competent REALTOR® will guide you through the selling process. Remember, REALTORS® have contacts, marketing outlets, negotiating skills and knowledge that will save you time and money.

Interview potential agents to find the best fit: If your friends or coworkers have had a positive experience with an agent, ask for their contact information. Interview the agents, and decide who would work best for you. Remember to take into account their communication skills, local sales history and experience, and proximity to your property.

Price your home realistically: Consult with your real estate agent when considering a listing price for your property. Review the comparables and adjust to fit the current market conditions before you set your price.

Never underestimate a first impression: Make your home inviting, remember, first impressions are made before potential buyers even walk through your front door. Landscaping, entryways, even clean windows are important. The interior of your home should be clutter-free, clean, and smelling fresh for potential buyers.

Showings and open houses are for buyers: During open houses and private showings it’s important that you trust your agent to do his/her job and leave the property. Sellers who stay often make the potential buyers uncomfortable.