I opened up the closet door to the vacant room. There she stood all by herself, glowing and glistening in green.  Rarer than the flawless Rockefeller Emerald. It was a Green Jacket. Not any Green Jacket, but the winner of  the Masters green jacket. The rarest of all trophies in sports. Next month the azaleas will be blooming (not in the vacant closet) and perhaps the 56^th individual champion will slip on the blazer.  Something I could only dream of trying on. My folks were single digit handicaps when they played but unfortunately, the golf gene skipped a generation. My double-jointed shoulder would always pop out of the socket on the backswing. If roofs and windows were the target, I too would be a champion. Sadly, that empty closet was the closest I’ll ever get.

The old Masters champion had moved out and the home was for sale. He was a known character on the PGA Tour. He also took care of things around the house. And that is where our problem began.

Getting ready for closing, the title agent discovered an unlicensed hot water heater in the lien search. It was like getting hit by the ball without anyone yelling, ‘FORE!” We didn’t know if it was literally a “HOT”, Hot Water Heater sold by an unsavory solicitor. The buyer didn’t want to close until this was resolved.  It became a standoff of the deal falling apart. Now we had to get out of the bunker.

Title Insurance is not something one dreams of. You fantasize of your forever home. If you are dreaming of title insurance firms doing lien searches, than I would refer you to Veronica Lichtenstein, LMHC. Because if you are daydreaming of title insurance you either need hobbies or you are having a bad dream. Title insurance is a companion purchase. Kind of like getting a toothpick after a meal. You never go to the restaurant salivating over the toothpick but if you want to smooch with your partner, it’s something that is necessary. I’ll explain why you need a closing company and title insurance in an interview with Jessica Lind at Next Wave Title in Jupiter and Boca Raton.  Also we answer questions on what is the best day to close, if you should hire the title company before or after you put the house under contract, why to pre-sign, if you can close in prison and what happened to our masters champion……

Closing companies help obtain title insurance but they do a plethora of other things. There is a lot to do to ensure a smooth closing.

Title Insurance is basically a necessary piece to buying and selling a home.  It makes sure there is no cloud on the title because if there is, you might not rightfully own the house. A squatter or unsavory Florida Man or Florida Woman type might be found in your kitchen or hanging out in the pool if not. This ensures your home is your home and is protection that you own the house free and clear. If there is a problem, then you can confidently call the fuzz to take away the vagrant. Of just point them to the dog walking nosey neighbor’s house as a place to chill.

A closing and title insurance company and title agent does a lot to get the transaction to closing besides obtaining title insurance.  Each property is unique with a different set of owners and buyers. Here is a list of items they handle.

1. Analyzes the contract to what needs to be done.
2. Communicates with all parties from both real estate companies, HOA’s, condo associations, taxing authorities, mortgage firms, escrow holder. ( no emotion in any of these folks!)
3. Lien Search and HOA estoppel.
4. Orders title search to get commitment.
5. The title commitment is what produces the owner’s policy.
6. Work with the mortgage broker/lender if applicable including appraiser.
7. Works with county and attorneys if applicable.
8. Order Survey and examine survey. Lots can go wrong here.
9. Fee breakdown of who owes what for debits and credits.
10. HOA Estoppel (see if someone owes money here).
11. Handles incoming wires and escrow safely (fraud today is critically important).
12. Put figures together for HUD.
13. Orchestrating wet signatures, notary.
14. Recording to the clerk of court which officially changes the ownership.
15. Validating where monies go.
16. Disperses funds.
17. Wrap up. How to file homestead exemption, scams in the mail to avoid, etc….

A lot needs to happen to have a smooth closing.  Communication is the most important. Who are all the players?  Are they all local or in town?

Picking your title company early on is important because once you decide to put your home on the market if there are any liens on the house (like a “hot” hot water heater), you have time to correct them. A lien search is found from the city and county and then it involves looking up if there are any code violations (think an addition), open permits (think rouge contractor), surveys, unpaid taxes.

Pre-signing is important in my opinion in case one party can’t be there at closing. If one party doesn’t sign, they are violating the contract. I’ve seen this happen where a Seller did not pre-sign and appeared after business hours.  You can hear the story during the Echo Podcast. The Seller was stressed and showed up at 7pm.  My Buyers wanted out and just left saying the Seller refused to close. My advice – pre close!

Best days to close are Tuesday – Thursday. If wiring doesn’t show up on a Friday, then keys won’t be handed over until Monday. Monday closings have Fed Ex’s that get delayed. Usually ok, but Tuesday through Thursday is best…….Monday closings have Fed Ex’s that get delayed. Usually ok, but Tuesday through Friday is best. Also, the first and last day of the month is the most crowded day for closings. Mortgage companies are also overwhelmed. Try to do in-between if possible.

You want a title company that is large in size, (systems will be more sophisticated), has an experienced title agent, and that has legal involved. Fraud is rampant these days and small title companies that do not have strong nationwide or large state technology protection probably can’t invest the capital in the latest security systems. You also want a real estate attorney on staff in case there is an issue.  Attorneys who are not in rhythm of doing plenty of closings should be interviewed with some caution. They may be wonderful attorneys and specialists in a  particular area but without lots of real estate repetitions, those closings tend to be more out of sync.

A good closing agent is aware of dates if you want to do a quick closing.  HOA meeting dates, banks and wires can get in the way.

Reissue Credits is something that can happen if its been bought within 3 years (sale needs to be within 3 years of purchase and must provide owners policy)

I interviewed Jessica Lind at Next Wave Title for the Podcast to talk about all this and more. Jessica is a veteran of 20 years in title and has seen it all through lots of different markets. Next Wave Title has its main office in Jupiter on Indiantown Road (the blue building on stilts by Bolay).  The parent firm is a nationwide title firm with attorneys in 17 states. They also have offices in Boca Raton locally and do remote closings. However, they have one of those crazy money machines that everyone goes into after closing for some much-needed relief, so it’s kind of fun in person.  Jessica goes over everything in detail and what is vital for smooth closings that a Realtor, Buyer/Seller need to be prepared for. We also discuss signing remotely, mail aways, and crazy stories like doing a closing in a prison.

In my book, Next Wave Title wears the Title. Plus they disburse the Money Green, which is better than a green jacket!  And the Masters Champion house did close. Hole in one!

Next Wave Title

1851 W Indiantown Rd, Jupiter, FL 33458

(561) 390-9283 ext. 34208

jessica.lind@nextwavetitle.com

https://www.nextwavetitle.com/

Find your next Florida home:

Search by popular community area

Search by lifestyle

Search by subdivision

Search by price

Search by rental

Search the commercial MLS

Jeff Lichtenstein, originally from Chicago, got his start in the home furnishings textile business where he traveled over 35 weeks a year selling fabrics. After the family business was sold, Jeff moved to Florida and became a real estate agent. Today he is the owner and broker of Echo Fine Properties, a luxury residential brokerage voted best brokerage of the year. Jeff manages a non-traditional model of real estate that mimics a traditional business model. Echo has 80 agents, an average of one million dollars per transaction and over 500 million in annual sales. Between traveling for work and annual family trips to national parks with his wife and 2 now adult children, Jeff has visited 49 states. He is also one of the few Chicago White Sox fans you’ll ever meet.  Some publications he has been quoted in.

Author of business & leadership book How Making a Sandwich Can Change Your World –  The Amazing Success of the PB&J Strategy – Available to Buy Now!

Feel free to ask him a question directly at jeff@EchoFineProperties.com including a complementary  valuation of your home.

The post The Green Jacket appeared first on Echo Fine Properties.

We determined that $699,000 – $750,000 was the appropriate range for the house. It was mid-February and midway through the season. The owner was moving this May. We settled on $725,000 and would evaluate in a few weeks. That was until the nosey neighbor showed themselves.

There are lots of different types of nosey neighbors. Cray Cray’s, Jerks, Passive Aggressive, Smarty Pants, and on and on. This particular nosey neighbor is a “dog walking nosey neighbor” and she told the client to price it at $750,000. “Keep the values up”, she exclaimed.  Our client felt the pressure and raised the price. In one sense the relief of running into the DWNN or “DAWN” meant less pressure.  Not on selling the house but on dealing with the DAWN! After two weeks, showings were minimal and we were getting the wrong Buyers in line.  I talked with our agent about it and there were several issues that needed to be addressed.  1) Carry Cost  2) Seasonality. 3) Pricing it in the right aisle.

I have WORDS I could say to the DAWN. There are other issues with the Nosey Neighbor which I’ll reveal later in the article, but first lets address the fact that Homeowners usually have no idea of the real cost of carrying a home.  Many think they bought it cheap and own it free and clear. Ok. Let’s say for arguments sake that they cleared $650,000 in our case and have no mortgage.  Back in the pre-covid world, sticking $650,000 under your mattress was about the same as putting it in the bank. Today, 5% on $650,000 is $32,500.  It doesn’t matter if there isn’t a mortgage, and you bought the place for $160,000. The return of $32,000 is real money. What are your taxes?  $4,500.  How about insurance?  Oh, that went up to $7,000. HOA cost? $400 a month or $4,800 a year. Landscaping another $2,400 a year not including new plantings. Electricity, water, home watch, sewer, stuff that goes wrong.  Basically it’s at least $4,000 a month to carry the house. I wonder if the DAWN would be interested in contributing?!?

Second is seasonality…..

The seasonal renters are leaving in just 4 weeks. While they may or may not buy your home, they spur activity. Once they buy something it typically frees the homeowner to purchase something else. Snowbirds also start to dissipate in April and May.  People do shotgun type purchases since they are zoned in more. The family market is more in April, May, and June.  So, the problem for our homeowner comes if it’s a receding buyer pool come March 31, 2023. If it doesn’t sell then that $4,000 a month could continue on through the summer time. A $690,000 sale price closing on May 1 is be better than a $700,000 sale price on August 1. The three months of $12,000 carry nets you a loss of $2,000.  Homeowners often say “I don’t need to sell” but once you look at it like a business, they really do need to sell.

As far as price goes, Sellers need to understand that in a low activity market, “must” Sellers will lower the price. Meaning if everyone at $725,000 to $750,000 needs to sell and moves the price to $699,000 along with yourself, than you are back to square one with more competition.  Getting ahead of the curve before that happens is critical.

Nosey neighbors can be an asset to real estate agents but usually are a source of confusion to the homeowner and a nemesis of misinformation that the Realtor has to combat.  They confuse on price and marketing, and give tons of misinformation. The one asset is they can spread the word. You want them to be aware of it and bring their friend unless it’s a CRAY CRAY neighbor. Cray cray neighbors can ruin a deal so try to keep those away.

As far as our story is concerned, I suggested we approach the DAWN to see if she would contribute the $4,000 a month carry cost.  I said if you do that, the DAWN will see you and run back into your house and never bother you again. We changed the price to $699,000. This generated 2 separate Buyers and a bidding war broke out. It sold for $712,000.

Now that it dawns on me, our homeowner client will have moved and definitely will never see that DAWN again.

Find your next Florida home:

Search by popular community area

Search by lifestyle

Search by subdivision

Search by price

Search by rental

Search the commercial MLS

Jeff Lichtenstein, originally from Chicago, got his start in the home furnishings textile business where he traveled over 35 weeks a year selling fabrics. After the family business was sold, Jeff moved to Florida and became a real estate agent. Today he is the owner and broker of Echo Fine Properties, a luxury residential brokerage voted best brokerage of the year. Jeff manages a non-traditional model of real estate that mimics a traditional business model. Echo has 80 agents, an average of one million dollars per transaction and over 500 million in annual sales. Between traveling for work and annual family trips to national parks with his wife and 2 now adult children, Jeff has visited 49 states. He is also one of the few Chicago White Sox fans you’ll ever meet.  Some publications he has been quoted in.

Author of business & leadership book How Making a Sandwich Can Change Your World –  The Amazing Success of the PB&J Strategy – Available to Buy Now!

Feel free to ask him a question directly at jeff@EchoFineProperties.com including a complementary  valuation of your home.

The post The Nosey Neighbor appeared first on Echo Fine Properties.

Some people fancy the “Movie Theater Room”. Others yearn “Home Gym”. Me, I crave a “LEGO Room”.

The worst toy ever invented was the LEGO. I would support a federal ban to outlaw this cherished childhood favorite. “What’s wrong with you”, you say?!? LEGO’s are basically an American institution. It helps with creativity, problem solving, motor skills, patience, stress reduction, and imagination according to the LEGO official website. LEGO amusement parks have been built. They offer elaborate designs with Seinfeld Sets (custom Jerry & George pieces), Police Prison Garden sets, the Florida Gator Campus with a bazillion individual unique pieces. Grown adults now play and collect them like baseball cards.

There are even LEGOS that look like you. My son got a knockoff piece of me in the suit next to Jerry Seinfeld. You can see in the photo below. Some people I know get enraged or all vain when seeing their LEGO self. My Mom wanted her hair a bit more blonde. Others thought their LEGO self looked too boxy.  See no good vibes come from this.

The reason why this marvelous and ingenious toy should be banished is it creates a mess. There is no, “put that shambling clutter in the basement!” in Florida. That is why LEGO Rooms are needed. Parents step on them creating dangerous bloody wounds on their soft barefoot feet and then holler for little Joey to put them away. The divorce rate is probably what it is from grownup collector hobbyists and adolescents creating even more chaos all over the house. There are so many fragments that it’s impossible to organize.  You are better off just getting little Sally a nice expensive bicycle. Even a Pony. There is just one to take care of and the mental health and sanity of savings are worth the peace of mind. And don’t even get into the real estate agent’s nightmare to stage the house with this insidious plaything.

Real Estate salespeople are also like LEGOS.  That is why we have “Iron” Blake Tyson at Echo Fine Properties. Blake is our in-house Real Estate Administrator & Closing Coordinator. Realtors excel at doing “sales things”. “Sales things” are talking to people, handing other people’s emotions, strategy, presentation, marketing, and negotiating. Organization – not so much.  If they are not organized, they aren’t going to sell your home and could cause a goof up.  Here are 6 keys that your agent better have support in to assist them (and ultimately YOU) to make for a good transaction and a silky smooth closing…..

The 6 Keys of Organization

Echo is basically a Teamerage. A combination of sales agents with the support of a team behind them. If you as the lay person got your Real Estate license tomorrow, you’d find you are responsible for paying for everything from photos to lead generation to postage stamps to balloons. At Echo, we have deep support staff to take much of the paperwork off the agents hands to free them up for selling, accuracy, and competency. We do it all to take off the agent’s expense and free them up.  It’s part of our 57-promise, Home ECHOnomics Guarantee. Blake and our team assist agents and our customers by handling much of the paperwork. This is vitally important in our 24-7 business because it ensures the listing is entered properly, paperwork is completed correctly, due dates are followed, and mistakes don’t occur.

1. Training and Backstop

New agents and even experienced ones rely on Blake for training and keeping up to date with new procedures. He is also a backstop if they need something drawn up if they are in the field and can’t get to it. I don’t know how many times an agent is out showing property or at dinner, and Blake facilities a deal when time is of the essence.

2. Entering the listing

Rather than the agent entering the listing in MLS, we do this internally. The MLS is littered with mistakes. Mismarked subdivisions and areas are the most serious as the listing won’t even show up in a search. This happens over 25% of the time. Misspellings occur. Having photos in proper order (we usually lead with aerials as they tell the whole story.) Seller disclosures. MLS input sheets. HOA fees. Furniture addendums. All of this we want to make certain is correct and in place. Even details like entering the room size as a 15×12 versus a 12×15. 15x 12 seems larger so we always use the bigger number first.  Little things add up to sales and closings.

3. Attachments

Amendments and attachments that are needed both in MLS and as part of contracts. We load them up in MLS so the Buyers agent can see them. Blake overlooks our contracts as well.

4. Correction to the listing

If we have a price change, those are handled internally by Blake as well as other changes like new HOA fees.

3. Importance of dates

Too many of these to remember. HOA and POA application dates. Inspection dates. Escrow dates. Loan commitment dates. Wire transfer dates. Keeping track of the dates and assisting the agents to keep things organized.

4. Help desk for agents.

When we have questions on contracts or how to do something, Blake is there. “Blake, I don’t want to bother you, but…”  It’s never a bother! Again, time is of the essence and getting help when needed is key for our agents and clients.

5. Help desk for writing up offers!

Agents always need help with situations and paperwork, and at times sending things out for signatures.

6. Closing coordination

Keeping track of dates is the most important part of this but also last-minute things that the title company needs, Blake assists with.

Look, your home transaction is often the largest financial transaction one will handle. Lots of money is at stake. It shouldn’t be child’s play!

Jeff Lichtenstein, originally from Chicago, got his start in the home furnishings textile business where he traveled over 35 weeks a year selling fabrics. After the family business was sold, Jeff moved to Florida and became a real estate agent. Today he is the owner and broker of Echo Fine Properties, a luxury residential brokerage voted best brokerage of the year. Jeff manages a non-traditional model of real estate that mimics a traditional business model. Echo has 80 agents, an average of one million dollars per transaction and over 500 million in annual sales. Between traveling for work and annual family trips to national parks with his wife and 2 now adult children, Jeff has visited 49 states. He is also one of the few Chicago White Sox fans you’ll ever meet.  Some publications he has been quoted in.

Author of business & leadership book How Making a Sandwich Can Change Your World –  The Amazing Success of the PB&J Strategy – Available to Buy Now!

Feel free to ask him a question directly at jeff@EchoFineProperties.com including a complementary  valuation of your home.

The post LEGOS and Real Estate Organization appeared first on Echo Fine Properties.

I have a confession. Since I don’t have a Priest, I’ll confess this morning right here to you directly. Hopefully you will find it in your heart to forgive me.  Here goes. I have lied to my listing clients that I represented through the years.

There. That felt good although you are most certainly aghast with disappointment in me. However, I told this lie not with a black heart. And I did it for the greater good of my client. I call it the “15-minute lie.” The lie I have told over and over was that the showing appointment and time to leave the home was 15 minutes earlier than it really was.  The reason this was a good intentioned lie is because of avoiding the “awkward meeting.”

An “awkward meeting” takes place when an owner, selling their home, purposely stalls leaving the home so they can size up the potential buyer of the home.  Basically, I arrive at the home and work to get lights on and the home in show condition. There is a certain type of homeowner when selling that is never ready. They dilly dally around looking for “stuff”.  It could be some return of a golf club or clothing item. Then they have an extended small talk conversation with me. They wait it out until the Buyer agents and potential purchasers are at the front door. Then they attempt to leave but the agent and Buyer’s car is blocking them.  I must ask the Buyer than to go back to their car to move it so the owner can leave. Now the Buyer is aggravated and not concentrating on their home.

The Seller of the home desires this meeting because they can’t help themselves. They are curious to see who these buyers might be.

There are seven reasons you don’t want to be there when showing the house….

1. Your Agent Needs to Get Ready

We want to “show you the money!”  Real estate agents have to focus. Get the house dolled and pampered up. It’s game time. Showing a house is exhausting. A Realtor is on stage and there is actually a lot of brainpower that goes into a showing. You are constantly reading everyone’s body language. Making sure to point out the attributes. Pointing out competition homes’ weak points. Sizing up where their eyes go for feedback. In order to do all of this, there is a pre-showing ritual you go through. Really no different than an actor or actress getting ready for a play. Let your agent get ready and in rhythm.

2. They don’t like you.

I just saw Seinfeld 2 weeks ago. I remember an episode where Jerry’s Mom couldn’t believe someone didn’t like their son.  Well, sometimes the vibe just isn’t there. The Buyers might not like you especially if you give feedback and you don’t handle that well. We want them to concentrate on the house. You aren’t there to make a friend.

3. Confrontation

I’ve seen people selling the house follow the buyers around making them uncomfortable. One person selling the home would always sit in the den. The people looking at the house wouldn’t open up and would just whisper. Other times a political conversation that starts with small talk ruins a sale. Please, just leave the house.

4. You say something you wish you hadn’t said.

Why are you selling? “ahhhhh”. Will you fix everything that we find in the inspection report?” Ummmm.”  Will you include all the furniture?  “Wellll.”.

5. They feel your desperation.

Sometimes the awkward meeting comes with a comment from the buyer that says, “You don’t have to leave”. And sometimes the Seller just doesn’t. They start trying to hard sell the house and the body language of desperation comes through.

6. You already have the advantage..

We, as your agent are sizing up the Buyer for you. You as a Seller have the advantage because no one is sizing you up directly. For you lawyers out there it like one party getting the advantage of doing a deposition and the other party not. If you want to be deposed, then stay for the showing.

7. They become your new unwanted phone pal..

Maybe that is ok for now. But as a deal progresses, once you give them your phone, they call you directly every time they want to gain access or have an issue. It’s impossible to take back control once they contact you. Plus, if you ask them to stop calling you, now you have a fight on your hands. Don’t open up that window.

They say only a fool represents themselves. So, give your Real Estate consultant just those 15 minutes of fame to get ready.  I promise you won’t regret it. No lie.

Jeff Lichtenstein, originally from Chicago, got his start in the home furnishings textile business where he traveled over 35 weeks a year selling fabrics. After the family business was sold, Jeff moved to Florida and became a real estate agent. Today he is the owner and broker of Echo Fine Properties, a luxury residential brokerage voted best brokerage of the year. Jeff manages a non-traditional model of real estate that mimics a traditional business model. Echo has 80 agents, an average of one million dollars per transaction and over 500 million in annual sales. Between traveling for work and annual family trips to national parks with his wife and 2 now adult children, Jeff has visited 49 states. He is also one of the few Chicago White Sox fans you’ll ever meet.  Some publications he has been quoted in.

Author of business & leadership book How Making a Sandwich Can Change Your World –  The Amazing Success of the PB&J Strategy – Available to Buy Now!

Feel free to ask him a question directly at jeff@EchoFineProperties.com including a complementary  valuation of your home.

The post The 15-Minute Lie appeared first on Echo Fine Properties.

First, I was on our local CBS News, “Eye On Money”, this week, discussing 2023-year end numbers. You can watch the clip here.  Numbers don’t lie and they’ve led to the current state of the market, which brings me to this week’s Jeff’s Journal topic….

They say one spouse complements the other.  Or for every Felix, there is an Oscar.  Well, in this case I had two Felix’s.  This older couple had to have everything just perfect.  They had purchased a home with me, and it was not an easy search and transaction as everything had to be perfect.

I was also hired to sell their home, but when they came to me wanting to do a rental with someone they had just met it kind of shocked me. The reason is that being a rental landlord is not for the meticulous. A million things go wrong, and you have to have thick skin. In addition, a percentage just destroy the house. Everyone’s dog is a “show toy poodle” who never leaves the crate and doesn’t bark.

So, when I was assured that this was a nice young man and to put together a contract, I thought I’d gather some information.  For those of you youngsters who don’t know who Oscar and Felix are, google it.  That’s exactly what I did on the nice young man and found an arrest record along with poker playing. On social media, there he was with cigar and poker parties, puffing it up.  One copy and paste of the photo to the meticulous people and it was “let’s just sell the house!”

During the pandemic the market was simple. Take it or leave it. Cash offers. Bidding wars. No inspection. 7-day closings. Escalation clauses. Today, it is more “Even-Steven”.  There is still low inventory but not a lot of transactions. Mid-February is about the time deals start to get put together in earnest. See Florida Seasonality. Therefore, it’s critical that real estate agents gather information for their clients. Here are 11 tips people selling and purchasing their home should expect and insist on from their Realtor Consultants….

Selling

1. How did your clients come up with the purchase price? It’s a question your Realtor needs to ask for a multitude of reasons. One of which is you might hear back that they thought they would just test the waters. Other times the buyer has good reasons and can justify it. Regardless, if you don’t ask you don’t learn. It’s like spitting into the wind in the dark.

2. Why was the deposit X? If it is less than 5%, this question always should be asked. Deposits can be big warning signs. As a rule of thumb, I follow the 5-10 percent rule. If my client vacates the home, and their stuff is on the truck and they must then move it back, it’s typically not worth it along with losing the heart of season. If you received a 1% deposit with a 60-day closing on a million dollar home right now, how would you feel if you walked away with $10,000? Keep in mind you have to move your stuff back in and have lost the most critical part of the season. Having a good deposit gives you leverage in case the Buyer tries to get out of the contract.

3. Tell me about your folks so I can pass along when my clients ask? Usually, we are there to give this report but finding out as much as the you can about the Buyer of your home is key. If they know the area and have friends here, there is a better chance of closing. People who have no ties are less invested and less likely to go through with a transaction. Do they have a home to sell?

4. Google them. Sometimes you see surprising things. Last year, we saw one Buyer who committed a number of frauds, and it gave our client pause on dealing with an offer.

5. Do they have a preference of when they would like to close? This will give you motivation. Someone who needs to get in fast might pay more but could also disappear from you faster. If you want a longer closing, it also means you might lose them if you won’t compromise.

Buying

Most of these questions are exactly the opposite of the above questions and should be asked before you put an offer in.

1. Google and Social Media. Less important here as when you are making the purchase but sometimes it can give you clues as to motivation and the type of person you are dealing with.

2. Tell me about your folks? For the same reason as above.

3. Have they had offers? This one is different. Sometimes the Realtor blurts out that they have turned down one number, but they will accept another one. Ask a question and let them talk. As they say, you aren’t learning if you aren’t listening.

4. Where are they going? This gives you clues if they have carry cost and further motivation.

5. Ideal time to move? Gives you more clues if they are in a rush.

6. How did they come up with the selling price? Again, sometimes you hear that they are just trying for a number. You never know what the other Realtor is going to say. Hear what they have to say and how they came up with the value. Sometimes, they might not be aware of comparable or maybe their reasoning makes sense. You can’t negotiate well if you don’t understand how it was priced.

I hope you found this advice as good as Poker Royal Flush!  Next week I’ll discuss more on working the offer to have a better chance of completion in this market.

Jeff Lichtenstein, originally from Chicago, got his start in the home furnishings textile business where he traveled over 35 weeks a year selling fabrics. After the family business was sold, Jeff moved to Florida and became a real estate agent. Today he is the owner and broker of Echo Fine Properties, a luxury residential brokerage voted best brokerage of the year. Jeff manages a non-traditional model of real estate that mimics a traditional business model. Echo has 80 agents, an average of one million dollars per transaction and over 500 million in annual sales. Between traveling for work and annual family trips to national parks with his wife and 2 now adult children, Jeff has visited 49 states. He is also one of the few Chicago White Sox fans you’ll ever meet.  Some publications he has been quoted in.

Author of business & leadership book How Making a Sandwich Can Change Your World –  The Amazing Success of the PB&J Strategy – Available to Buy Now!

Feel free to ask him a question directly at jeff@EchoFineProperties.com including a complementary  valuation of your home.

The post Gathering Information appeared first on Echo Fine Properties.

I asked ChatGPT what comedian, George Carlin would think of ChatGPT if he were still around. It coughed up some gobbledygook G-rated mumbo jumbo. Not a 4-letter vulgarity in sight.  I also asked ChatGPT if it would write a Jeff’s Journal real estate article in my voice.  ChatGPT spit out…. “In the sun-soaked realm of Palm Beach, the real estate tapestry is woven with elegance, embodying a unique fusion of luxury living and tropical allure. As we traverse the winding avenues of this coveted enclave, the market reflects a dynamic synergy…blah blah blah.”  I think I can quote George Carlin best on what he would say about Chat GPT in this instance. “Marketing Bull****!”

I just got back from Inman Connect NYC, which is a large real estate conference in New York City. It is a who’s who in real estate and goes over all the latest trends.  I spoke on a few panels regarding The Power of Community in Times of Chaos on our Peanut Butter & Jelly drive after Hurricane Ian. I also participated on a Broker Think Tank and Mastermind.

Here are 12 takeaways from the current real estate market and what to expect in 2024 and beyond……

1. The marketplace has been at a stalemate.  The number of transactions in residential real estate in 2023 was at the lowest point since 1995! In 1995, the population was 27% less than it is today. Much of these statistics from Zonda. I wrote about the Stalemate in August and it turned out to be the theme of 2023. Expect at least 10% more transactions in 2024.
2. Prices of resales have remained flat. This is because the shortage of homes is estimated to be more than four million.  On the new construction side, prices last year were also flat.
3. Inflation is way down and mortgage rates are following.  The economy is no longer overheating.
4. Inventory is up but prices are still holding because of lack of inventory nationwide. Despite the jump in inventory in 2023, it’s still down 31% from 2019. Building starts were up in 2023 but should slow down in 2024.
5. There will be some office conversion to residential. 18% of offices nationwide are vacant. However, it’s very difficult to convert because of zoning, purpose, cost and useability.
6. Pent up demand is growing. Baby Boomers led the way with 39% of home buyers in 2023. They were just 24% in 2022. That is because Baby Boomers have more wealth and make more cash purchases.
7. 72% of the population was under a 4% mortgage in 2022. That number has now dropped to 59%. That 13% drop should continue.
8. Watch for more compromise with buyers settling on alternatives. Smaller homes and expanding search radius.
9. The FED announced future rate cuts.  This along with Pent Up Demand should create activity and a jump in prices. Many in our industry believe that once rates drop below 5.99 or 5.5%, the differential, affordability, pent up demand and less of a percentage of people with low rates will spur a boatload of buying and selling. I was interviewed by CBS News MoneyWatch on this matter as well.
10. Watch for more advances in reimagining a dated room to more of your style with current photos. AI is getting very good at this.
11. Watch for Apples new 3D Vision Pro.  In time, this could be a game changer.
12. AI will be used in real estate to automate monotony. However the content AI produced is of lower quality and easy to detect. After writing this, I saw the estate of George Carlin filed a lawsuit against a group behind an AI-Generated Stand Up Special.  In AI’s defense, I do not know if the George Carlin Estate can or will win the lawsuit for a bad knockoff?  Don’t the jokes have to be funny?!

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The squirrel looked at me with his beady eyes atop the mailbox. I just parked the car for a listing appointment in an equestrian community named Caloosa. The squirrel started making squirrel noises at me. Then I noticed another squirrel on a tree and then another and yet another. By the time I got to the front door, I must’ve had 50 squirrels all staring at me and making those squeaky squirrel noises. It was like something out of an Alfred Hitchcock movie. As I was getting the tour from the owner, I gently brought up the squirrels. He said, “Ya, they started coming in from the roof and I felt bad and started to feed them. Once that starts, they just kept on coming.” He told me never to start feeding squirrels inside my home as they have feelings. I promised him that I would take his advice. He also had a giant pig who wandered on the property. I calmly brought up that the squirrels and the pig might be an issue for a potential buyer. He pushed back that people just had to visualize. Like a squirrel, I darted as fast as I could.

There is a scene in the movie, “A Few Good Men”, where Jack Nicholson tells Tom Cruise that he can’t handle the truth. For us Realtors, staging is like that. Sellers don’t always want to hear what they need to do. Some have bad taste. Others don’t want to spend money. Egos. Many don’t understand it. People who are artistic think others can visualize easily. Plus, who wants to put in effort and dollars just for someone else? However, staging gives you an incredible return on your investment. Most buyers want to buy “new” and have trouble visualizing how something will look. Thus, by staging for them, you paint the picture that they want to see and can’t paint themselves.

Ask yourself if you were in the dating world if you had put a picture of yourself online with unbrushed hair, a tomato peel in between your teeth, and a scowl? When you skip staging, that is somewhat what you are doing.

Well, I am here to help with your curb appeal grooming and get you asked out.

There are a lot of components in staging. Both the inside of your home and the outside. I filmed this video a few years ago and went over 18 tips that will improve outside “curb appeal”.

Curb appeal is the most critical part of staging a home because it’s the first impression.  If a potential Buyer doesn’t like it from a distance, they won’t even walk in the door to see it. Furthermore, as a Buyer walks closer to the entrance of a home, they are forming impressions of how well taken care of the house is and how they like it.  Having a Buyer forming a negative impression, getting in a rhythm of looking for problems or deciding that the home is too dated can cost 10-20% of the value in an offer or kill an offer before it happens.

Curb appeal staging can be broken into 3 parts.  The longer distance view from the street.  The walkway up to the house. Last is the entrance itself.  The video will go in depth into most of these items.

Long Distance Curb Appeal

1. Landscaping

Landscaping is oftentimes the most expensive piece of staging but it also gets the best Return on Investment. Your ROI is high on landscaping because it creates a view where there was none. It can make a boring home look attractive.  Landscaping also should be done with a landscaper who has a creative eye.  They must understand what plants do well with different exposures of the Florida sun.  Landscaping put in must be more mature as the Buyer who purchases for market value doesn’t have the ability to visualize how things will look in the future.  Last, landscaping should also be done from the inside out. Meaning how does the view look from the inside of the house when looking out various windows.

2. Paint the house

Out of date colors or blotchy old paint jobs should be addressed. Old paint = old house.  Dated colors = Buyers not walking in the door.

3. Roof pressure clean

Should be taken care of because will look grimy.  As a side note, landscaping should be put in after the roof pressure cleaned because chemicals can destroy the landscaping.  Protecting the landscaping should be discussed with the pressure cleaner.

4. Driveway pressure wash and paint

If the driveway looks yucky from the outside then a Buyer may not even come in.  If your driveway is stamped concrete, make sure a painter understands what type of paint to put on.  I’ve seen paint just peel off if the wrong material is painted on.

5. Landscaping to block any privacy or ugly points of vision

Strategic landscaping placement can block sight-lines of other homes and unsightly views.

6. Lush green grass

Brown or blotchy grass is a turnoff

Walkway

7. Ivy or foliage or wrought iron or sculpture points of interest to block blah stucco

Stucco or wood can appear very dull like looking at a prison wall.  Pretty points of interest can break that up and turn a negative into a positive.

8. Pressure clean walkway

Dirt or old paint in the walkway starts to form that first impression

9. Flowers with color and/or Orchids

Make your Buyers smile and want to come in.  Color is needed so not everything monochromatic green. Orchids are wonderful but must be blooming so your Buyers will see the color

10. Tall vase with color

Tall vases with color can add dimension to a home and break up a monochromatic colorway.  Very important if you have a wood frame home.  A buyer won’t concentrate so much on the wood if there is a lot of color.

11. Mulch

Red is usually better than brown/black for staging purposes. This is because it last longer and has more of a burst of color.

12. Fountain

Can create interest, beauty and sometimes drain out noise from a busy roadway

Entrance

13. Replace the white standard doorbell with something more substantial

A $14 white builder grade doorbell must be replaced.  Your buyer interacts with it and that visual and touch interaction is a strong first impression.  This is a less than $50 investment.  A Ring doorbell is fine but I think a decorative doorbell is best.

14. Fresh door mat with color

Spend $29 and get a good looking doormat.  Avoid rubber mats as hard to wipe your feet with.

15. Vases/flowers to add color

Add vases if burst of color needed

16. Door handle without rusted spots

Again, an interactive and visual exercise. Replace with something substantial. First impressions. If the door handle is weighty and they spent money on it then the rest of the house must be the same way…..

17. Pressure clean or paint door

Your Buyer will be staring at the door. Replace/Pressure Clean/Paint if necessary.

18. Possible bench

Sometimes a bench adds a visual scene and also can by used to block dull stucco.

There is one staging exception to all of this. Sounds squirrelly, but if a squirrel  ever leaves an imprint on the wet sidewalk if front of your home, leave it be. It might actually increase the value as proved by one neighborhood from my hometown. You might just attract buyer who is a nut!

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I may die this weekend. As a matter of fact, this Jeff’s Journal might be a posthumous Jeff’s Journal. Possibly even a collector’s edition. However, don’t get too excited as a column giving my 2 cents is probably only worth 2 cents!

See, I’m in Chicago this weekend.  Being a good friend to my childhood friend, Jonny S, I accepted an invite to young Ava’s Bat Mitzvah. I’m from Chicago and have come back several times to visit old friends and catch a White Sox game, but never in January. When I checked the weather, it says -5 degrees with -23 degrees windchill 🥶. I already got Chicago Bulls tickets and the thought of waiting for an Uber after the game scares my earlobes and nose hairs to death. Let alone all the frozen slushy ice on the sidewalk from the blizzard 🥶 the day before! Gloves, galoshes, full face masks, and long underwear are not in my arsenal anymore.

Dressing and surviving this dreadful weather was top of mind this week when I was interviewed by the  Palm Beach Post   The reporter wanted to know when Palm Beach County really picked up steam as a destination. Was it boiling frog growth or one big turning point event?

See Population graphs 📈 here

5 things came to mind during my 24 years living here and 30 in total visiting. My folks became snowbirds in 1994.

1. 2000 marked the year of Cityplace opening, Kravis, and downtown Abacoa. Nicks Tomato Pie and Mondos were the biggest restaurant spots in North Palm Beach County and you’d drive 20 minutes to go there. Today add 200 restaurants to the that mix.

2. The rush of 2004-2006 market brought tons of new restaurants and shopping. Downtown at the Gardens and Legacy Place opening at the same time was a shock to the system.

3. 2010. Tiger Woods and Michael Jordan moving to Jupiter were giant stories. They are both the biggest athletes in their respective professions. The entire PGA Tour moved seemed to move here from Orlando at that time (we have the ocean and a 5-10 degree better weather differential in the winter). Jordan likes it so much he didn’t fly into Chicago this weekend even though he is being honored by the Bulls in their new Ring of Honor Ceremony. Instead he is sending in a taped message saying he had other commitments. Other commitments means, a nice golf game in 75 degree weather. MJ is one smart cookie.

4. The pandemic. Wall Street South seemed to move here during that time. But the pandemic was a gold rush of everyone moving all at once. Discovering you could work from home. Save on taxes, Lifestyle.  Lots of things tied into one.

5. But none of those events, even combined compares to the weather. The 100 degree weather differential comparing -23 to 77 high in Palm Beach is the reason why people come here. It’s shorts and a polo versus galoshes, long underwear, layers, gloves, scarves, and more!

I read recently that Buffalo was the hottest market in the United States this summer because of affordability.

Are they nuts?!?

Unless one enjoys ice fishing,  exercise for your arms using ice scraper on the car windshield, let alone high tax rates, Buffalo and Chicago are not long term hot destinations. Summer migration might have been true in Buffalo, but it will freeze up like Niagara Falls after one taste of this winter. If you live to tell about it!

To get out of the bad weather consider searching for a home enjoying the Florida weather…….

Search by popular community area

Search by lifestyle

Search by subdivision

Search by price

Search by rental

Search the commercial MLS

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One of the secrets I found to having wonderful minty breath was given to me by my old dentist in Chicago, Dr Dean Sana, DDS. Back in the mid-1990’s, I received a yellow banana plastic tongue freshener from my dentist, Dr. Dean Sana. One of those freebees you get from the dentist.  It lasted 26 years. Since it was plastic, I would wash with soap and water every time I used it. The yellow banana plastic tongue freshener kind of fascinated me because it was a product that I didn’t spend a dime on except the little soap and water to wash it off.  How many products can you say that about! One day we went on a Baltic cruise ship and to my horror, I left it behind.

I was very upset. It was like a member of the family died. Yes, that is a ridiculous way to feel about a product and something as silly as a yellow banana plastic tongue freshener, but 365 days x twice a day x 26 years = 18,980 uses.  Who wouldn’t get attached? It’s over a quarter of a century.

My kids thought this was the funniest thing. They looked up the dentist in Chicago and sent Dr. Dean Sana a note. Months later a letter came back with a yellow banana plastic tongue freshener he had found!

My daughter actually used this story for her college essay as it shows how being resourceful and not being afraid to ask, gets you to high places (or at least gets you a yellow banana plastic tongue freshener).

Jade applied to all sorts of schools. And she got in despite her college counselors horror about her tongue freshener essay! We visited schools in Colorado, Nashville,  DC, and at FSU. She ultimately choose FSU and much of that was due to “The VIBE”.  Colorado was too laid back. DC was too city-ish. FSU was very affordable and most important there was a campus. Jade figured she can do graduate school or internships in the city at a later date. But the college campus experience was something that you couldn’t rewind.

Looking for a home really starts with the vibe as well.  This week, with the relatives going back north is when searching for a home starts in earnest.  Buyers think at first that it’s about the bedrooms, baths, square footage, and upgrades. But if you don’t like the “vibe of the neighborhood”, then nothing will matter.

Does the community have pickleball?  Is it walking distance to restaurants?  Can I rent it out as an Airbnb?  Golf?  Oceanfront Access?  Gated but no club dues?  All of this is the vibe and best way to start a search. Our “Areas” page breaks this down neighborhood by lifestyle. Furthermore, you can sort by “Area”. Northern Palm Beach County is a different way of shopping than Southern Palm Beach County so it’s divided that way. There is also a map feature in each community search. Give it a whirl and find your vibe. And if you can’t find your neighborhood , give me a buzz.  Like Sam and Jade, we will figure out a home solution by listening to your wants and needs. You might say working with ECHO is like a breath of fresh air!

Jeff Lichtenstein, originally from Chicago, got his start in the home furnishings textile business where he traveled over 35 weeks a year selling fabrics. After the family business was sold, Jeff moved to Florida and became a real estate agent. Today he is the owner and broker of Echo Fine Properties, a luxury residential brokerage voted best brokerage of the year. Jeff manages a non-traditional model of real estate that mimics a traditional business model. Echo has 80 agents, an average of one million dollars per transaction and over 500 million in annual sales. Between traveling for work and annual family trips to national parks with his wife and 2 now adult children, Jeff has visited 49 states. He is also one of the few Chicago White Sox fans you’ll ever meet.  Some publications he has been quoted in.

Author of business & leadership book How Making a Sandwich Can Change Your World –  The Amazing Success of the PB&J Strategy – Available to Buy Now!

Feel free to ask him a question directly at jeff@EchoFineProperties.com including a complementary  valuation of your home.

The post The Yellow Tongue Freshener & The Real Estate Vibe appeared first on Echo Fine Properties.

I always thought going South on I95 from Boca Raton to Miami had the most deranged drivers in the world. Motorcycles going 125 mph and those bizarre little white dividing poles that keep your heart palpitating when you get too close.  Turns out that’s more like a slow sloth compared to driving in Costa Rica.

There are no left turn signals in Costa Rica no matter how busy the traffic is going. There are also no lanes.  You kind of line up and then all of a sudden to the left of you appears a Sanford and Son pickup with 2 goats. One goat standing and one goat lying down. In between a little scooter, scoots in. Then another car to the right. Finally off to the races if there is an opening. Furthermore, its all hills and “stepping on it” doesn’t do much. So, just yell, “ahhhhh” and pray.

Pura Vida.  In Costa Rica it stands for the simple life. The sloth which takes something like 3 hours to get down a tree is the animal that the country showcases as the way of life. Considering the sloth sleeps 20 hours a day, that only leaves an hour to do anything else if it decides to take the 3 hour adventure to the bottom of the tree. Like get a 1/3 way back up the tree. On the other extreme of favorite Costa Rica creatures is the hummingbird, moving a million miles a minute.  Driving in Costa Rica is insane like the hummingbird zigging and zagging. Not so Pura Vida.

I just returned back from Costa Rica. Our son, Sam, just graduated from UCF and will be joining us at Echo Fine Properties. As a celebration, a holiday vacation was in order. The nature is beautiful with sloths, hummingbirds, volcanoes, and of course great dark roast coffee.

My Crystal Ball forecast for 2023 that I wrote last year predicted that 2023 would be a “pause”. I could have said “sloth” and been just as accurate.  Sales activity was slow. The Fed started raising interest rates to curb runaway inflation due to lenient Covid incentives and artificially low interest rates. Inflation hit 9.1% 20 months ago. The Fed raised the borrowing rate exponentially and interest rates skyrocketed from the mid 2’s to 8% in November 2023.  As a result during this time, real estate activity slowed to a crawls pace.  Sellers have hung on to their Lord of the Rings “Precious” 2.9% rate.  This slowdown resulted in what I called a “stalemate” earlier this year.

Just like Costa Rica though, one look can be a sloth and the next the hummingbird. That is where I see the real estate market going in 2024. We are now on the cusp of a new marketplace. I’m referring to this as the “Rachel & Ross Market”.

Month by month, week by week, day by day, hour by… (you get the drift), pent up activity is building. Rachel & Ross from “Friends” had 9 seasons of pent-up energy. Just like the volcanoes in Costa Rica, that energy needs to go somewhere.  In season 10, the volcano finally erupted. (If you haven’t watched the show or are like the girl in the new movie, “Leave the World Behind”, don’t read on as spoiler alert!) Ross and Rachel became more than “friends” and got together.  And that’s where the housing market, especially in Palm Beach County and the Treasure Coast, is going.  Would be buyers and sellers staying in their home until the rate differential becomes de minimis has near hit the 2-year mark.

I was interviewed by the Palm Beach Post on the matter.

Here are 10 reasons why the “Ross & Rachel Market” should blow, and you’ll want to be more than friends and fall in love with a forever home.

1. The demand of buyers sitting on the sideline because of interest rates and first-time homebuyers renting or living at home is the pent-up activity that’s building. People want to move and every day that goes by, it grows.
2. Interest rates have already fallen 1.5%
3. The FED indicated it will lower the bowering rate 3 times. This should get it into the 5% territory. Once there, the differential isn’t such a big deal anymore.
4. Prices have stabilized and have not kept up with inflation.
5. You have a choice now. If the market blows, you will not.
6. The condo market will be in a buying frenzy 12 months from now. Condos under state law have had to have milestone inspections and proper reserves in place by December 31, 2024.  Many have already done so. This creates safety, cost certainty and much more mortgageable condo purchasing. Condo sales activity has lagged considerably and sales of 25 and older condos have built up inventory. Watch for this market to start to heat up. Come 2025 it should be feeding frenzy.
7. Inventory in areas east of 95/Turnpike in Palm Beach County are out of land. Since supply cannot increase with demand, prices should start to go up and will cause more pressure on homes in West Palm Beach County and the Treasure Coast.
8. Insurance costs should stabilize both in the single-family home market and in the condo market. Both markets will benefit from laws enacted in the spring of 2023. Even more so in the condo market as a result of that new regulation.
9. You can date the mortgage interest rate now, but you can’t renegotiate the price of the house later on. Meaning, if you take a 6.5% interest rate on a home and it drops to 5%, then you can refinance. However, once it drops into the 5’s, don’t expect prices to stay where they are at. You can’t have it both ways.
10. Talking to people in our business nationwide and financial experts I know, expect to see a 10-20% jump in prices assuming there is no big world surprise event once interest rates drop to the low or mid 5%. Housing has an estimated 4 million home shortage, a shortage that can’t be corrected quickly. Our special area in South Florida should jump more than the rest of the country due to more population growth and the limited supply.

Don’t forget you can see all statistics including Population and Mortgage Rates, county by county, in real time on our website.

If you’d like to confidentially know how much equity you have in your home and would like to discuss strategies for buying/selling, send me an email.

Here is to Pura Vida, in 2024!

Jeff Lichtenstein, originally from Chicago, got his start in the home furnishings textile business where he traveled over 35 weeks a year selling fabrics. After the family business was sold, Jeff moved to Florida and became a real estate agent. Today he is the owner and broker of Echo Fine Properties, a luxury residential brokerage voted best brokerage of the year. Jeff manages a non-traditional model of real estate that mimics a traditional business model. Echo has 80 agents, an average of one million dollars per transaction and over 500 million in annual sales. Between traveling for work and annual family trips to national parks with his wife and 2 now adult children, Jeff has visited 49 states. He is also one of the few Chicago White Sox fans you’ll ever meet.  Some publications he has been quoted in.

Author of business & leadership book How Making a Sandwich Can Change Your World –  The Amazing Success of the PB&J Strategy – Available to Buy Now!

Feel free to ask him a question directly at jeff@EchoFineProperties.com including a complementary  valuation of your home.

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