1. How HOT is the Bradenton-Sarasota real estate market? Answer

2. What factors created such a hot market? Answer

3. Do you see this market slowing down in the near future? Answer

4. Is there a “real estate bubble” in the Bradenton-Sarasota market? Answer

5. How do you keep up with the State of the Market?Answer

6. What do Buyers need to know about buying in a hot market? Answer

7. What mistakes are buyers likely to make in a hot market? Answer

8. Are Buyers losing the home they want because of multiple offers? Answer

9. How can Buyers position their offer to be accepted by the Seller? Answer

10. What do Sellers need to know about selling in a hot market? Answer

11. What mistakes are sellers likely to make in a hot market? Answer

12. What should Sellers do when confronted with multiple offers on their home? Answer

13. What do Buyers & Sellers need to know about working with a Realtor in a hot market? Answer

1. How HOT is the Bradenton-Sarasota real estate market?

• Most people know the 3 most important words in real estate as location, location, location. The 3 words that best describe our market are HOT , HOT , and HOT .
• The median home price is up 39.1% over June 2004. ($88,000)
• The median Condo price is up 37.7%
• According to Fortune Magazine ( May 30, 2005 ), Bradenton is the 9 th-hottest real estate market in America . Sarasota ranks eighth. No other Florida market is rated higher
• Our June 2005 Median sale price of $336,800 places us the 5 th highest priced market in Florida following Naples , West Palm Beach , Ft. Lauderdale, and Miami.
• In July the National Association of Realtors® (NAR) again raised its forecast for the housing sector, with both existing- and new-home sales to set an even bigger all-time record in 2005.

2. What factors created such a hot market?

• The biggest factor is strong buyer demand and a shortage of inventory. 15,000 new residents are settling in Manatee County each year.
• Buyers just love the Bradenton-Sarasota area: Great weather; Beaches; I-75 Corridor; Access to Airports; Access to Major Employment Centers
• We have strong Job Creation in our local area
• The Baby Boomers retiring to Florida . They represent the healthiest, wealthiest and most active group to ever retire. They are buying a quality of life.
• Our prices are just catching up to other areas, like Naples .

3. Do you see this market slowing down in the near future?

• It’s obvious that these appreciation rates cannot be sustained
• However, forecasts call for continued strong housing demand through 2007.
• Florida was #1 in new housing units for 2004 with over 200,000 new units. Followed by Texas (173,000), California (169,000), and Georgia (89,000).
• As long as it keeps snowing up North, Florida will be a retirement destination.

4. Is there a “real estate bubble?? in the Bradenton-Sarasota market?

• The word “bubble?? suggests that home prices could pop and fall like a bursting balloon. Although that can happen with something like the stock market, the housing market is different. Prices don’t drop overnight. The real estate market is quite predictable.
• We expect our local market to continue this upward trend for some time.
• We too are amazed at the growth in home prices during the past three years. The median home price in Sarasota has gone from $176,000 in 2002 to $326,000 in Jan. 2005. In Manatee County the median price has gone from $150,000 to over $300,000 today.

5. How do you keep up with the State of the Market?

• We study the market on a daily basis. Everyday we look at what’s happening.
• We receive a daily news report from the Florida Association of Realtors
• We have access to market research prepared for the National Association of Realtors.
• We constantly talk with buyers and sellers.

6. What do Buyers need to know about buying in a hot market?

• First of all, buyers need to know what kind of market they are in.
• A hot market is a seller’s market and buyers shouldn’t expect to get a bargain price.
• A buyer must be prepared to act quickly and offer full price or even above full price.

7. What mistakes are buyers likely to make in a hot market?

• Buyers make the mistake of thinking the home they are looking at will still be available tomorrow. It may not be available two hours from now. The best homes sell quickly.
• Buyers may think they are paying too much for the home, but it’s the market that sets the price. I know of buyers who have been looking for months now the price of homes has gone up tens of thousands of dollars.

8. Are Buyers losing the home they want because of multiple offers?

• Some buyers find they may be competing with several other buyers for the same home.
• It’s not uncommon to have multiple offers on a home that’s priced right.
• Some buyers may lose out on 1 to 2 homes before having their offer accepted.

9. How can Buyers position their offer to be accepted by the Seller?

• Price is one important factor, but it’s not the only factor.
• Buyers should try to determine the seller’s hot spots. What is the seller trying to accomplish?
• A well qualified buyer might remove the financing contingency.
• The closing date should be at the seller’s convenience.
• Put down a large deposit and even consider making it non-refundable.
• Shorten the inspection time frame or buy the property “as-is??.
• Be sure your offer is neat, legible, and has no blanks or missing parts. I can’t tell you how many offers are rejected because of sloppy paperwork.

10. What do Sellers need to know about selling in a hot market?

• Even in a hot market, not every home sells. Last month 13% of the listings expired or withdrew from the market. That’s always an indication of over-pricing.
• Sellers should not try to take advantage Buyers. Every successful transaction depends upon Seller and Buyer cooperation.
• If a problem develops the Seller may need the Buyer’s cooperation.

11. What mistakes are sellers likely to make in a hot market?

• The biggest mistake is under-pricing the home.
• Many sellers think, “The market is hot, so I might as well sell it myself.?? That can be a terrible mistake. Your home is probably your greatest asset. It’s much wiser to hire a real estate professional to help set the price, market the home to get top dollar, and guide the transaction to a successful closing.

12. What should Sellers do when confronted with multiple offers on their home?

• First of all, the Seller needs to be thankful for this great position.
• They can pick one offer and run with it…trying to negotiate it up.
• They can counter all of the offers verbally at the same time setting very specific terms. The seller agrees to accept the first written offer from the buyer who meets their terms.
• They can set a deadline for all of the buyers to re-submit their highest and best offer.
• They can create a bidding war, by giving each buyer a chance to improve their offer over the last offer. Prior to accepting any one offer, each buyer is given another chance.
• Of course, there is always the danger that a buyer will drop out of the bidding. And, remember, verbal agreements are not enforceable.

13. What do Buyers & Sellers need to know about working with a Realtor in a hot market?

• It can save you a lot of money, time, and frustration to have great Realtor on your side.
• You get what you pay for. Some seller’s choose the agent who gives them the biggest discount on commission. Don’t be fooled, poor service can cost you tens of thousands of dollars. I’ve never known of anyone who was disappointed by hiring the best.
• You want a Realtor with a good understanding of the market and homes available for sale.
• You want a Realtor who is accessible and keeps you informed.
• You want a Realtor with a team and systems in place to make the whole process go smoothly.

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