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cjgrenier

7 Mistakes Sellers Make

By | Real Estate

7 Mistakes Sellers Make

The market is on fire right now and Sellers are taking advantage of it from every price point. The average days on market right now in Orlando is around 60 (over the past year my average Listing is sold in 7 days…just saying)  if your house is taking longer than that to sell than 60 days here are a few reasons why that might be the case.

1. Pricing Too High

Everyone wants to get top dollar for their home whether it is their primary residence or an investment property. When deciding to list a property it is important to be realistic in the price point and make sure it is within a small margin of error of the comparable sales in the neighborhood. If you do want to get a premium for the property make sure there are the upgrades & features that support such a price difference, initially overpricing a property will ensure it sits stagnant on the market and be ignored by savvy buyers who have done their research. 

2. Just ‘Testing The Market’

In this hot market some Owners are tempted to test the waters when it comes to their homes value and dramatically overprice it. I have definitely seen circumstances where houses have received ridiculously high offers in comparison to the property’s true value, but keep this in mind…no matter what price you get, you are still at the mercy of an appraisal (if it is not a cash offer). If you are not in a rush to sell, do not put the property on the market and waste a real estate agents time and allow the property to lose massive marketability by scaring away potential buyers due to a massive price tag.

3. Getting Too Clingy

Home owners always think their house is the most valuable and expensive one ever made. This is unfortunately very common, and far from the truth. It is normal to be emotionally attached to your home, however be realistic when it comes to selling and just because your children learned how to walk there it does not necessarily add any true market value to the property. (If any appraiser says otherwise, please contact me now). 

4. No Attention To Detail

If you are selling a house on the retail market be sure  to do everything possible to make the house move-in ready. If you are selling a property that is missing pool screens, poor landscaping, old water heater, broken dishwasher, ripped window screens, etc, have them fixed! Nothing deters buyers more than when they walk into a home and see immediate issues and imagine how much it is going to cost to have them fixed. Unless the price reflects the condition of the property, people want to move into a house and focus on getting the furniture put together and filling the cabinets with dishes, not fixing things you ignored for the past few months. 

5. Using An Odd Price

This is a personal gear grinder for me, when I see a house listed for $243,740, it makes me immediately skip over it. I guess it is ‘numbers OCD’ from my perspective but it is a proven fact that houses listed at odd-numbers get substantially less visibility from Buyers. If a Buyer has a search for $200,000 – $250,000 they will not see your house if it is listed for $199,900. 

6. No Professional Marketing

9 out of 10 buyers search online for properties, professional photos and marketing will draw a significant great audience than poor cell phone photos. It is truly amazing to see real estate agents who have Exclusive Listing Agreements for homes and they do not even spend the $150 to have professional photos taken. There are multiple properties currently for sale in Orlando OVER $1,000,000 that have basic photos taken with a cell phone! So yes there are in-fact real estate agents who are potentially earning $30,000+ in commission selling a property and do not even spend the $150 for professional photos. 

7. Not Keeping House Show Ready

This one is rather obvious, if your house is for sale, be sure it is ready to be shown at any given moment. You would be surprised how common it is to see dirty clothes thrown in a room, dishes in the sink, lawn not cut, family photos plastered over every end table, beds not made, etc. While your house does not need to be a model-home, it should certainly be clean & kept up well at all times while for sale! 

Click below to see the original Infographic from Florida Realtors!

Whistler, Canada December 2017

By | Travel

Whistler, Canada December 2017

That time of the year again, voluntarily visiting snow for a few days to get into the Christmas Spirit and test our ability to make it down the mountain in 1 piece. Whistler was awesome, compared to Vail & Aspen which we previously went to years prior, it was a bit more of a trip to get there but the mountain was massive and area was amazing!

Saudi Prince Buys Worlds Most Expensive House

By | Real Estate

$300 Million Castle In France Sells To Saudi Prince

This might not be breaking news since this deal happened in 2015, however it was not until recently the identity of the Buyer of Chateau Louis XIV was revealed as the 32 year old Crown Prince Mohammed bin Salman of Saudi Arabia.

Not only does this mind blowing property sit on 57 acres and likely has a toilet more expensive than the average car, but the irony of it being purchased by someone who preaches fiscal austerity is simply fantastic.

I looked into this property a little further and the history of it is quite intriguing. You would think it is some Castle built in 1225 that has been occupied by Kings & Queens over the years, however it was only just built in 2008 and completed in 2011. And most importantly, Chateau Louis XIV was a final contestant on where Kim Kardashian wanted to get married.

The 50,000 square foot palace near Versailles includes 2-master suites, a grand reception room with a trompe l’oeil ceiling (whatever that is), two custom-made artisanal kitchens, min-club, an entire floor for recreational activities, as well a wine cellar, a cinema and pretty much every expensive detail you could ever imagine.

Going back to the hilarious irony of this 32-year old Saudi Prince buying the most expensive house in the world, he has also recently purchased a $500 Million Yacht and set another record buying a $450 Million Leonardo da Vinci painting.

Florida Foreign Figures & Facts

By | Orlando News, Real Estate

International Money Pouring Into Florida

It is no secret that Florida is prime target for investors and home buyers from all over the globe. Each year the Florida Realtor Association puts together a report about where the money is coming from, and how much. This is some pretty interesting stuff, I went ahead and did the research & cliff noted it here for you…you’re welcome.

Here is what they found in the past year from August 2016 – July 2017.

Florida Property Purchases By Foreign Buyers

  • Foreign purchases increased to $24.2 billion, a 19.75% increase from last year
  • Foreign transactions accounted for 21% of Florida’s volume or property sales. 2% increase from last year
  • Foreign buyers purchased 61,300 Florida properties. 23.25% increase from last year
  • The median purchase price paid by foreign buyers increased to $259,400 ($252,500 in 2016)
  • The median price paid by foreign buyers was 18% HIGHER than the median price paid by all Florida buyers

Where Are The Foreign Buyers From?

  • Latin America & Caribbean Buyers were the largest portion of foreign buyers at 34% but that is a decrease from last year when they made up 39%
  • Canadian Buyers increased to 22% (up from 19% in 2016)
  • European buyers was unchanged at 23%; Asian buyers at 10%; and African buyers at 1%

Foreign Funds & Flavor

  • 72% of foreign buyers made an all-cash purchase
  • 68% of foreign buyers purchased single family / detached homes, 49% bought a townhouse or condominium (not quite sure how those numbers add up, but I think they factored townhouses into single family in some instances)
  • 35% purchased in a central areas; 15% purchased in a resort area
  • 93% of foreign buyers visited Florida at least once before purchasing a property

Foreign Interaction & Future

  • While international business rose, fewer Realtors in Florida (44%) said they worked with an international client in 2017 (48% in 2016)
  • 61% of Realtors said they did not have cultural and language problems
  • 43% of Realtors expected the same or an increase in international clients, 42% expected a decrease, and 15% had no opinion (thanks to the 15% for not being helpful at all)
  • 56% of Realtors expect foreign retirees to be potential clients

Avocado Toast Is Back

By | Real Estate

Who Needs Assets When You Have Avocado Toast

A few months ago an article quickly went viral from The Guardian about Millennial’s not purchasing homes and other investments due to their financial irresponsibility in purchasing ridiculous things like avocado toast, might just be right after all.

An initial reaction amongst myself & other millennials is to of course to bitch & moan and point out how that articles assumption is inaccurate, but when the average millennial has significant student loan debt, average net worth of just $10,400, credit score below 700 and average income below $40,000, it is not surprising more millennials are living with relatives.

More Millennial’s Living With Relatives

McLEAN, Va. – Nov. 22, 2017 – The share of older millennials living with relatives is still rising, underscoring the lingering obstacles faced by Americans who entered the workforce during and after the Great Recession.

About 20% of adults age 26 to 34 are living with parents or other family members, a figure that has climbed steadily the past decade and is up from 17% in 2012, according to an analysis of Census Bureau data by Trulia, a real estate research firm. The increase defies record job openings and a 4.1% unemployment rate, lowest in 17 years.

Not surprisingly, a much larger portion of younger millennials age 18 to 25 (59.8%) live with relatives, but that figure generally has fallen the past few years after peaking at 61.1% in 2012.

All told, 38.4% of 18-to-34-year-olds live with family. That’s up from 28.7% in 1962 in part because a growing number of young people are delaying marriage, Trulia’s chief economist Ralph McLaughlin says. The living-at-home trend accelerated during the recession but has been stable since 2012 as more younger millennials, but fewer older ones, leave the nest.

The older group got hit hardest by the recession of 2007 to 2009 because that’s when many graduated from high school and college, economists say.

Early this year, however, unemployment had again fallen to 4.7% for the older workers but was just 7.8% for their younger counterparts – the smallest difference between the two populations on records dating to 1962, according to annual data compiled by Census and analyzed by Trulia.

There are other reasons more older millennials are living with relatives. Many are burdened by student debt and can’t afford high rents, especially in larger cities. Total U.S. student loan debt hit a record $1.36 trillion in the third quarter, the Federal Reserve Bank of New York said last week.

And with a housing shortage driving up prices in recent years, some people in their late 20s and 30s prefer to live with relatives so they can save more money to buy a home, McLaughlin says. But he and Gould say the battering that age group endured early in their careers is the main factor.

A 2012 study published in the American Economic Journal found that graduating from college in a recession causes an average 9% loss of earnings initially and that deficit disappears only slowly over a decade or so. Graduates typically start at smaller, lower-paying companies and switch jobs more often to catch up.

Top 10 Deals Of 2016

By | Real Estate

Top 10 Deals Of 2016

Here is a classic situation of wishing you had a time machine to just go back 18 months & pocket some massive equity!

After looking through some old files it really had me curious about deals we did in the past few months and how much money we/investors made on the flips.

The basic strategy of flipping a house is to be in & out as fast as you can, but taking into consideration what the market is doing here in Central Florida, it is interesting to see what just 1 year does to the market values of the properties.

Although every single deal we sold in past 18 months (over 150) has had great equity & cash flow potential, here are my Top 10 Favorite Deals that were sold based on their equity growth & marketability:

DEAL 1)

Empire Pl, Sanford FL 32773

  • Beds/Baths: 3/1.5
  • Size: 1,217 sq/ft
  • Year: 1972
  • SOLD Price: $67,000
  • Current Value: $136,000
  • APPRECIATION: 101%

DEAL 2)

Gracie Ct, Deland FL 32720

  • Beds/Baths: 3/2
  • Size: 1,340 sq/ft
  • Year: 2001
  • SOLD Price: $94,000
  • Current Value: $172,000
  • APPRECIATION: 83%

DEAL 3)

Grand Junction Blvd, Orlando FL 32835

  • Beds/Baths: 3/2
  • Size: 1,150 sq/ft
  • Year: 1988
  • SOLD Price: $113,000
  • Current Value: $175,000
  • APPRECIATION: 55%

DEAL 4)

Lace Fern Rd, Orlando FL 32811

  • Beds/Baths: 3/2
  • Size: 1,287 sq/ft
  • Year: 2004
  • SOLD Price: $78,000
  • Current Value: $135,000
  • APPRECIATION: 73%

DEAL 5)

Lake Sherwood Dr, Orlando FL 32818

  • Beds/Baths: 3/2
  • Size: 1,952 sq/ft
  • Year: 1978
  • SOLD Price: $112,000
  • Current Value: $194,000
  • APPRECIATION: 73%

DEAL 6)

Luzon Dr, Orlando FL 32809

  • Beds/Baths: 3/2
  • Size: 1,295 sq/ft
  • Year: 1964
  • SOLD Price: $88,500
  • Current Value: $170,000
  • APPRECIATION: 92%

DEAL 7)

Laurelwood Dr, Orlando FL 32808

  • Beds/Baths: 3/2
  • Size: 1,250 sq/ft
  • Year: 1966
  • SOLD Price: $70,000
  • Current Value: $145,000
  • APPRECIATION: 107%

DEAL 8)

Vatican Ave, Orlando FL 32810

  • Beds/Baths: 3/2
  • Size: 1,520 sq/ft
  • Year: 1959
  • SOLD Price: $50,000
  • Current Value: $166,000
  • APPRECIATION: 232%

DEAL 9)

Gamble Dr, Orlando FL 32818

  • Beds/Baths: 3/2
  • Size: 1,740 sq/ft
  • Year: 1967
  • SOLD Price: $103,900
  • Current Value: $160,000
  • APPRECIATION: 54%

DEAL 10)

Jordan Ave, Orlando FL 32809

  • Beds/Baths: 3/1
  • Size: 1,058 sq/ft
  • Year: 1967
  • SOLD Price: $85,500
  • Current Value: $153,000
  • APPRECIATION: 44%

THE NUMBERS

86190

Avg. Sales Price

160600

Avg. Current Value

91

Avg. Appreciation

Biggest Bubble In The Business

By | Uncategorized

And this is what a bubble looks like. 

San Francisco has such a ridiculous housing market right now that a burned-out home is selling for what is described ‘below market value’ at $800,000.

Granted, the high price tag is strictly for the land that the property is located on, however it is not exactly like this house is sitting on 1-Acre lakefront lot. The total land/lot size is 1,746 square feet. Yes, that is 0.04 acres, or plot of land approximately 25 feet wide, and 75 feet deep.

1 acre of land is 43,560 square feet, therefore a price tag of $800,000 for only 1,746 square feet of land, prices an acre in that area at about $20,000,000.

The listing agent even stated this property should sell above list price!

Granted the location of this property is in a hot area of San Francisco, it is still difficult to completely wrap your head around the idea of a lot of land under 2,000 square feet selling for such an enormous amount that is not even in the middle of New York City or Malibu Beach.

The average median price in San Francisco is now at $1.36 million which is up 75% from just 5 years ago. With the explosion of silicon valley and developers moving in at record numbers it is only a matter of time until the next tech valley is created elsewhere and these brilliant minds creating Tinder updates & Snapchat Filters move to the new hot area leaving San Francisco totally susceptible to what could be the largest housing crash in the history of the country.

Tupac’s California Mansion For Sale

By | Real Estate

Tupac's California Mansion For Sale

Tupac’s last house is now for sale in Woodland Hills. Located about 25 miles outside of Los Angeles, this 6,000 square foot home is listed for $2.65 Million.

Although this house is now trending online as being owned by Tupac, he never actually owned it!

Tupac rented the house after being released from prison in 1995 and was under contract to purchase it but was gunned down in Vegas before signing the closing documents.

Property Details:

4730 Azucena Rd, Woodland Hills CA 91364

  • 6 Bedrooms
  • 5 Bathrooms
  • 5,895 Sq/Ft
  • Built 1995
  • Recent $1mil Renovation!

7 Crazy Facts about Orlando today.

By | Business, Real Estate

ORLANDO LEADS NATION IN JOB GROWTH

If you drive around Orlando, it would almost impossible to be on any main road for more than 5 minutes and not see construction taking place.

Right now Orlando has over $9 BILLION in infrastructure construction taking place. Some of those big jobs include Ultimate I-4, Orlando Airport expansion, Sanford Int’l Airport expansion, Phase 2 of the Sunrail,  and of course all the road construction happening on 528 and other major roadways.

(So if you are a local in Orlando, you know how much of a pain the ass it is driving through downtown on I-4 but in a few years it will all be worth it…hopefully!) 

BREAKING NEWS

Orlando is one of the Nation’s fastest-growing labor markets. Although the most common thing people think of when they hear about employment in Central Florida is working in the theme parks & hotels, it is actually a multi-industry growth that is leading the nation. From medical, tech, industrial, insurance and everything in-between can be seen with enormous employment growth. Orlando lead the nation in job growth this year at 4.2% growth rate followed by Salt Lake City, San Jose & Seattle each at just 3.4%.

Here are some facts to know:

  • Total payroll employment between March 2016-March 2017 grew by 3.6%, one of the fastest rates among metros with more than 1 million jobs.
  • On any given day, there are more than 30,000 job postings in Orlando.
  • Growth was seen in the business and professional services industry that added the second-largest share of new jobs during the past year with 7,100 new jobs. The business and professional services industry encompasses legal, accounting, computer systems design and administrative services.
  • Business investment was the fastest-growing segment of retail activity, increasing 25.2% since January 2016.
  • The leisure and hospitality industry added 12,000 new jobs over the last year. This growth can be attributed to the record-breaking 68 million visitors Orlando saw last year.
  • Growing 8.8% over the last year, the demand for construction industry employment is far exceeding every other industry.
  • Orlando has created 3,500 new jobs per month and is on pace to continue that growth for the foreseeable future.

Look at those facts, now take into consideration Orlando has only ‘really’ been around since 1972. Although it was established in 1885, The City Beautiful was just a small city with a population less than 400,000 in the 1960’s. In less than 60 years it has grown to the number 1 tourist destination in the world with a population over 2.4million and worldwide recognition!

Here’s How Much You Need To Make To Buy A Home In Orlando

By | Orlando News, Real Estate

Here’s How Much You Need To Make To Buy A Home In Orlando

According to a report published by the mortgage website HSH.com, an annual income necessary to buy a house in Orlando based upon the current median property value is $50,871.

Let’s break that number down real quick to make it relative.

If you make $50,871 which is the 15% tax bracket, you will take home approximately $42,000 NET after taxes, social security, etc.

$42,000 will come to $3,500/month.

The median price for a home in Orlando is $215,000.

Purchasing a home for $215,000 with a 5% downpayment at a 4% interest rate, that will be a total monthly payment of just $1,400 which includes principal, interest, taxes & insurance. Taking into considering another $500/month for cable, water, utilities, and maintenance, that still leaves you over $1,500/month for other bills & expenses!

Quit buying avocado toast and buy a damn home! 

Orlando Is Still Cheap

The report lists 26 other Metro Areas across the country and how much salary is needed to buy a home in that area.

San Francisco is the winner of the list with the highest salary necessary at $160,589 to afford a home there and Pittsburgh requires the minimum of just $32,373 with a National Median of $51,962.

If you think property prices in Orlando are getting expensive, lets keep things in perspective.

The Average List Price in Orlando is $249,900 as of March 2017 according to Zillow and avg. list price per sq/ft is $133.

The Average List Price in San Francisco is $1,195,000 and avg. price per sq/ft is $987.

In Orlando, it seems a hell of a lot more attractive to make $50K a year to buy a house at $133 sq/ft in Orlando than to live in San Francisco and make $160K and buy a house at $987 sq/ft!

Take a look at this ‘teardown’ that just sold in Palo Alto, CA for $2,550,000!

That is over $2.5 MILLION for a 7,500 sq/ft lot. That comes to about $10,000,000 per acre in that area. (No wonder you hear about Managers at Google making $300K/year and living out of their car)

Without question prices are rising by the day in Orlando and it is a fantastic time to buy because this time next year, the same property is likely going to cost you 10% or more. However even today, you can still buy a brand new 4 bedroom house in the desired Lake Nona area for under $400K!

Investors were incredibly spoiled between 2010 – 2014 with property prices at historic lows, and although the ROI has been taken down quite a few points on investment properties due to the increase in prices, there is still enormous opportunity for growth & profits!