PALM COAST & FLAGLER BEACH, FLORIDA WATERFRONT REAL ESTATE

   Ahhhhhh... There's not too much to match walking out on your deck with your morning coffee - and taking in the Atlantic Ocean view!  How about the Atlantic Intracoastal Waterway twice-annual "boat migration parade?"  Maybe you prefer one of our ICW access Saltwater Canals, with your private, protected boat dock and lift?

   In Florida, "Waterfront" is a magic word and buyers seek it like the Holy Grail!  However, if you want "Ocean Front" in Miami, or "Gulf Front" in Naples, you need to belly up to the bar with somewhere from $10,000,000 to over $100,000,000!!!  In Fort Lauderdale, most of the upscale Saltwater Canal homes are in the $2,000,000 to $5,000,000 range!  Yikes!!!

   So, that brings us here to Flagler County, Florida, where Waterfront homes in Palm Coast and Flagler Beach are surely a bargain, compared to other markets in Florida.  Consider this:

• There are currently 101 homes (not including condos) on the Atlantic Ocean, the Intracoastal Waterway, or our beautiful "Intracoastal access" Saltwater Canals, for sale here.
• They are priced from a $219,000 home on a canal, to the top priced home on the Atlantic Ocean, at $4,999,000.
• There are 14 canal front homes under $300,000.
• The least expensive home on the Intracoastal is at $450,000.
• The least expensive Oceanfront home, located on Florida State Road A1A, is at $700,000.
• The "median" waterfront home shares these stats:
• $549,000
• 2,600 square feet, under A/C
• $210/square foot
• 136 days on the market

 

   If "Living On The Water" is something you wish to pursue, please check our website at www.SellPalmCoast.com.  You can email me at frankzedar@gmail.com or cell/text me at 386-931-1987.  Or you can contact my partner (also wife:-) Maritssa at 386-986-9270.  We are at Parkside Realty Group and our new office is located in the Palm Coast Town Center, next to City Hall, at 145 City Place, Suite 104, Palm Coast, FL 32164.

July/August, 2016 - 

     Well, it's time to re-vitalize this blog!  Admittedly, it has slipped as a priority, this past year.  However, I've been told that when I was posting frequently, people actually read it... and liked it!

I've been a seriously active Real Estate Broker now, for (gasp...) 30 years!  The first 15 years were in the Northern Virginia/Washington, DC market (talk about a tough place to compete!)... and the past 15 years have been here in Flagler County, Florida (Palm Coast, Flagler Beach, Bunnell).

     It's been a real roller coaster ride, with two scorching "hot" markets and two "bubble bursting" markets... and now we are 2 years into a "healthy recovery" market.  From 2000 to 2006, we were on fire here in Palm Coast and Flagler Beach.  We were even "The Fastest Growing County in the USA" for 2 years in a row.  But, how the giant crashed...  From 2007 through 2013, we were barely scraping by.  For most of those years, 60% of our total inventory was "Short Sale" business, followed by a rash of "Bank Repossessions."  Ah, but now we are seeing a normal market, increasing steadily & slowly.

     Here is a quick peek at the current market, here in Flagler County, FL:  

Single Family Homes:

• 718 Available
• Priced between $59,900 and $3,250,000
• Median price of $289,900
• Average days on the market of 154 

Condos:

• 279 Available
• Priced between $62,000 and $2,550,000
• Median price of $339,000
• Average days on the market of 228

Building Lots (does not include commercial/industrial or large acreage parcels):

• 1,488 Available
• Priced between $4,000 and $1,498,000
• (high dollar lots are almost all Oceanfront or Intracoastal frontage)
• Median price of $36,500
• Average days on the market of 457

     We think now is a really great time to purchase a home.  Our sense is that we have suffered greatly and are now climbing out at a healthy rate.  Buying now should be rewarded with a great entry price and increasing equity.  And then there is that great tax break!  If your mortgage is $1,500/month and $1,000 of that is interest, you get to deduct $12,000 "off the top" of your taxable income (very rough example, but you get the point).  PLUS, you're not throwing the money at "never to be recovered rent." 

     My wife and real estate partner, Maritssa Vazquez, and I are available to answer any of your questions about the market.  Visit our website at:  www.SellPalmCoast.com 

You can email me at: frankzedar@gmail.com, or call/text me at:  386-931-1987.

Thank you!!!

Frank Zedar

Broker Associate, Parkside Realty Group

Palm Coast - Flagler Beach, FL

JULY 2015 - REAL ESTATE TRENDING POSITIVE!!!

     Things in real estate were scary, from 2006, through 2012.  If you bought a home in 2005 and were needing to sell in 2010, you got the surprise of your life!  Let's see, "You're telling me that I can get $350,000 for my house?  The one I bought 5 years ago, for $500,000?"  
     If you were a Realtor, those were belt tightening times.  My wife and I are thankful we were prepared to weather that storm.  Distressed properties were saturating the market, as owners found themselves owing the bank far more than their home was worth.  Banks played the role of "bad cop" very well and were reluctant to work with people to re-finance.  Here in Palm Coast and Flagler Beach, FL, "short sales" represented 60% of our market for several years running.  These short sales, an attempt to preclude foreclosure proceedings, destroyed values for Mom and Pop "normal" sales.  To say the least, it was a mess!
     As we moved into 2013, we knew the bad stuff was over, as we started a long, slow climb out of a very deep hole.

     To say that we are in a "hot market" would be a stretch, but compared to those bubble busted years, we'll take it!  This July, 2015, shows these very positive trends:

• Foreclosure filings (the beginning of the bank's process to take the house back) are way down from previous years.
• Actual repossessions (the final step for the bank)  are up.  The good news here is that distressed inventory is clearing out of the market, allowing true value to be re-established.
• Values are rising at a sustainable rate.  It's slow and steady, but the trend is heading positive.
• Homes that are well priced and fixed up (staged well) are selling quickly.
• Mortgage money is beginning to be more available.  For a few years it was quite odd, in that it seemed like the banks wanted to make buyers suffer... for the mess the banks created!!!

So, if you are ready, it really seems safe to say:

*** IT'S A GOOD TIME TO BUY ***

   

Where Will 2015 Take Us?

I remember with clarity 1986...
It was the final year of my 20 year career, as a U.S. Army Officer and the beginning of my career as a Real Estate Broker - and that was 29 years ago!  I worked for a terrific firm (Mount Vernon Realty) in the Northern Virginia, Southern Maryland, and Washington, DC marketplace.  Leaving my Staff Officer job at the Defense Intelligence Agency and jumping into the civilian business world was quite a rush!  Let's see... hang up the uniform and go to Nordstrom's for pin stripe suits, button down oxford shirts, power ties, and wing tips... Check!
The real estate market was on fire and I thought I'd died and gone to heaven.  1986, 1987, and the start of 1989 were a Realtor's dream.  Then February of 1989 happened.  Listings stayed on the market longer.  Some strange things called "short sales" and "foreclosures" entered our repertoire. Prices started dropping.  Oh, oh, what was this all about?  A few years later, by 1993, we were back in a climbing market once again.
I moved to Palm Coast & Flagler Beach, FL in 2001.  It was a shock to leave my market of Great Falls and McLean, VA, where $Million dollar+ sales were routine and I was managing an office for Century 21 New Millennium (the highest producing C21 company in the world).  However, from 2001 to 2005, things were hot as a pistol here as well.  I recall our monthly office sales meeting at my Flagler Beach Re/Max office in December, 2005.  I said, "Can anyone else feel "something" happening, or is it just me?"  Well, that "something" was the beginning of the worst real estate crash in US history.  From late 2005, all the way through 2012, we were in freefall.  It was crazy.  The "depressed sales" dominated over 60% of all we did!  Ouch!
However, since the beginning of 2013, we have righted ourselves... leveled out... and started a slow, steady climb out of the hole.  It's a safe bet that, barring a cataclysmic disaster, 2015 and the foreseeable years beyond should hold more of the same.  That is a slow, steady upward real estate trend.  Inventory is available.  Mortgage rates are low.  Foreclosures and short sales are way down.  Oh, and here's the statistic I always love:  Many of the real estate agents who bailed when things got tough, are scrambling to re-activate their licenses.  As a consumer, I'd ask you to consider asking your Realtor if they remained active and productive during those really difficult years.  You're better off with a battle scarred veteran of the real estate wars.  Been there... Done that... Got the T-shirt!!!

Foreclosure/REO Property - "Real Estate Reality"

Note to Self:
"After 25 years, you should KNOW better!"

25 Years!  
That's how long I've been a Real Estate Broker... 
Helping Buyers and Sellers and Investors navigate the mine fields of several crazy market swings.  In 1986, as a newbie, they gave me a manual "mortgage calculator wheel" to help figure monthly payments... and the mortgage interest rates on the wheel STARTED at 10%.  Why?  Because there were no available rates under that.  When I came back from Berlin, Germany with the Army in 1980, to work at the Pentagon, I bought a house with a rate of 16.75%.  So don't complain if you feel abused today with a 4.5% rate.

So, with all this experience and wisdom, I should have discipline and smart business sense, right?  I should look them in the eye and tell them they have little chance to be successful in certain types of transactions, right?  Well, I do... most of the time.  Here's the deal - I have a strong desire to help people get what they want, as far as their Real Estate Goals are concerned.  And I feel pretty good, knowing that's the heart and soul of how I approach things.  If a guy tells me he wants to buy a house, I'm going to work it for him, like a dog on a bone.

But lately, I've been experiencing a lot of push-back from specific areas of the market... and I don't like my lack of self discipline, in how I've responded.  Two quotes come to mind:

• "Knowing that the task was absolutely impossible, I doubled my efforts anyway." (Unknown)
• "A man's got to know his limitations."  (Dirty Harry/Clint Eastwood)

Wow!
"I can get a great deal, right?"

Here's the cheese to go with my whine.  Buyers call me and say something like, "Frank, I found this house at 3113 Chatham Road online, and it's 2,400 square feet, with 4 Bedrooms, for only $119,500!"  "Can you show it to me?"  And I immediately start to think, "Oh, Oh..."  because I KNOW it's an REO (Real Estate Owned - Bank Foreclosure)  Of course my buyer wants to see it, however, it's been on the market for only 3 days and it's listed at a "teaser price" - crafted to create competitive bids.  They race to get a "lender qualification letter" to show they can get a mortgage.  They want to offer less than the asking price, have an inspection contingency, make it subject to their bank's appraisal, and offer a $1,000 max escrow deposit.

So, what's the problem?  As soon as our offer goes in and 5 days have passed, we are told by the listing company that we need a "Multiple Offer Disclosure Form" and that "Highest and Best" offers are now due "by Noon tomorrow."  There are 12 total offers and ours is the only one that's not "cash with no contingencies."  These investors can usually close in 15-30 days and also are not timid about going over the asking price.  They realize the value presented and they know we are at the bottom now.  BOOM!  SPLASH!  (That's the sound of being blown out of the water)...

In Flagler County, Florida today, there are 685 homes For Sale, from $35,000 to $4,200,000.  Only 17% are distressed (short sales/foreclosures) and only 5% are REO/Bank Owned.  Sounds pretty OK?  Sure, BUT in the "Under $150,000," market it's different... Way different!  There's only 175 of those homes and 63% are distressed... with a whopping 35% being REO/Bank Owned!  And that is exactly the market segment that draws all the "investors with cash" looking for rental properties.  And they are driving "Mom and Pop with a mortgage" out of the segment.

I'm not saying that's bad, because it's not.  Actually, it is helping to clear out the market bottom, which is essential to real recovery.  But my "lesson learned" is this:  Keep my "non-investor" buyers with mortgages in the "normal" market and away from REO enticements.  Short sales are OK now (and I'm shocked to hear myself say that).  BUT, stay away from REO's!!!  Fool me once, shame on you.  Fool me twice, shame on me!

Palm Coast, FL, Real Estate Tidal Shift

                                                     

Point of Tidal Shift...
"Ebb Tide"

"Real Estate" has been the "happy" and also the "frustrating" for me, these past 25 years.  Just when you get to thinking that you are an expert... and have it all figured out... BAM!  It all changes, yet again!

Recently, I've had many conversations with a variety of property investors.  From wealthy folks who put millions into real estate in the 2000-2006 boom... to Mom & Pop who bought a modest vacation home here in Palm Coast or Flagler Beach, FL, during those same years.  To see the $580,000 (circa 2005) golf course lot, near the ocean, sell for $65,000 in 2011... or the $220,000 retirement home (in 2004) sell in a "short sale" in 2012 for $110,000, really hurts.  Yet, realistically, it sure doesn't hurt the buyer, does it?  Thank goodness, there are buyers who have faith that things will come back to equilibrium.  They have been keeping us afloat.

Not quite here at Equilibrium...
Yet!

Here's hoping that this is not wishful thinking, yet we seem to be "approaching" that magic place, where things "turn the corner."  We got hammered by the bust here in Florida, yet we read headlines that shout, "Many Major Real Estate Markets Seeing Price Increases!"  Well, not here yet.  We actually saw about a 4% decline in prices again this past quarter.  However, if other markets are trending up, then we will follow.  Good news is that our foreclosure rates are declining and our "distressed sales" fell to less than 50% of total market... (It had been over 60% for a couple of years)

Remember that "Ebb Tide" song, by The Righteous Brothers?

"First the tide rushes in;

Plants a kiss on the shore.
Then rolls out to sea;
And the sea is very still once more.
So I rush to your side;
Like the oncoming tide..."

Well, that's what the market is like... It gets hot and we rush in to buy.  Then it turns the other way and we rush to sell.  Sometimes, however, we get stuck at the ebb...  But it won't be long now.  The tide is changing...

Foreclosure Myths - 2012

Distressed sales (foreclosures and short sales)
are 60% of the Palm Coast, FL market!

   "We meet so many people with mis-guided perceptions about today's market.  Just because it's a foreclosure or short sale, is by no means a guarantee of a great deal.  It's all about "seller motivation and local market knowledge" - and the seller may be Joe and Mary down the street... not a bank or hardship situation.  Make sure you do your homework!  (Frank Zedar, Broker Associate/Sales, Parkside Realty Group,Palm Coast, FL)

1. There is going to be a flood of new foreclosures to the market.

This rumor has appeared every year since 2008 and has been routinely debunked. However, recent announcements that the Feds reached a settlement over the robo-signing scandal have reignited speculation. The idea is simple: Since the cork is now out of the foreclosure bottle, we’ll soon see another flood of REOs inundating the marketplace.  This makes no sense to me at all.  To do so would be a form of the banks "shooting themselves in the foot."  Banks have learned that if they control inventory, they can affect local prices. By releasing homes in measured amounts, they realize higher prices than if they released a glut of homes. In addition, they’ve learned that if they can mitigate their losses by agreeing to a short sale, everyone wins.

2. You can go directly to a bank to buy a foreclosure.

Every few weeks I’m asked how to buy foreclosures direct from a bank. Someone knows a friend being foreclosed on and they want to step in and grab the house before it hits the market. Don’t we all? In reality, banks have a simple system – they first offer properties on the courthouse steps. The rest they assign to asset mangers who then hire local real estate agents to put them on the market along with all the other homes. Want an REO? Pay cash at the courthouse steps or get in line witheveryone else when they hit the local MLS (Multiple Listing Service).  And if you think hiring a lawyer will help - forget it. The banks have a system to release these homes in a reasonable sequence, which satisfies stock holder's interests.

This seems funny on the surface,
yet this is reality for many!

3. You can get a killer deal by submitting lowball offers on foreclosures.

You would think this myth would be dead by now. Unfortunately, like Elvis sightings, it just won’t go away. Here’s the truth: Banks want REOs sold in 30 days or less, so they typically appear on the market priced slightly under comparable properties. If the property doesn’t sell quickly, the bank will lower the price after about 30 days. Lowball offers are ignored and are, quite frankly, a waste of everyone’s time and effort. You might get a deal by offering a lower price on a foreclosure that’s been sitting on the market for more than 90 days, but remember that there are good reasons it’s gone unsold for so long. And even if you have cash, your lowball offer won’t be accepted —seriously.  People think their cash is somehow better than the cash provided by a mortgage company for a well qualified buyer?

4. You can’t use foreclosures when doing an appraisal.

Or short sales, for that matter. That is no longer true. In fact, in many neighborhoods, that’s all that’s there. Therefore, foreclosed or distressed sales represent the actual value of homes in the area and HAVE to be used to appraise other properties.  You may not like it, but it is the new reality. Times have changed and the ways neighborhoods are valued have changed as well.  (In Palm Coast, FL and all of Flagler County, these distressed sales comprise 60% of the market.  Of course they "count!")

5. Foreclosures are only affecting the bottom end of the market.

This used to be true. However, while foreclosure rates on the lower end of the market have actually decreased,they’re actually increasing on the upper end. According to Daren Blomquist, vice president of RealtyTrac, the market share of foreclosed homes under $1 million is shrinking, but those among properties valued over $1 million are rising – up 115% since 2007. And foreclosures on properties valued upwards of $2 million have increased by 273%. While some well-known jet-setters have melted down and lost everything, others are choosing to strategically default. They see it like liquidating a poorly performing portfolio – they have enough resources to cut their losses and move on. Historically, banks have been reticent to foreclose high-end homes and absorb a large loss, but defaulters are now forcing their hands and mansion foreclosure rates are moving on up.  (In Palm Coast, FL and Flagler County, 25% of residential home and condo sales, over $300,000 in the past 15 months, have been distressed.)

Myths control behavior, and this has never been truer than in the housing market in 2012!  If you are in the market in Palm Coast or Flagler County, FL - and you need to buy or sell real estate in this chaotic and confusing market - you will need knowledgeable, experienced help.  I've been at this - in good markets and bad - for over 25 years.  Families and investors alike appreciate my professional approach to this business.  Let's meet and talk about your situation!  Thank you!  Frank Zedar, Parkside Realty Group.  Cell/Text:  386-931-1987.  email:  frankzedar@gmail.com.          (This is extracted from Carl Medford's Trulia Pro blog.  Carl is a Realtor with Prudential in California.  California, like Florida, is among the hardest hit states in this real estate mess.)

"Housing Affordability Update - March, 2012"

Real Estate
 is moving again!

   I liked it better when the prime topic at all social gatherings was "how awesome real estate is!"  Everyone was such a wise investor!  Buy a house and secure your retirement!  $250,000 today would mean $500,000 in a year or two, right?  It was so... easy!

Now, we are ecstatic if we are one of the lucky ones who are not upside down (upside down = you owe more than it's worth).  It's bad all over, but it's brutal in Florida.  And here in Palm Coast, Flagler County, FL... well, we have a "special" situation.  You see, in 2003-2005, we were the "Fastest Growing County in the USA!"  Now we are the "County with the Highest Unemployment in Florida!"  And for those of you old enough to remember "The Honeymooners," you can almost hear Norton say to Ralph, "Well, what a revoltin' development this is!"  We didn't know it yet, but we were in the eye of the storm from late 2005, through the end of 2007.  And we've been in a Category 5 ever since!

But... but... but,
it used to be worth $350,000!

Ah, yet is that a flicker of light I see at the end of yon tunnel?  Yes, the mortgage banks have been keeping the distressed inventory low, by withholding shadow listings from the market, yet we are methodically clearing the bottom.  As they release the next surge of REO/foreclosure properties, I think we'll be ready for them.  Why?  Because people with money are paying cash, because it's not doing them any good in a 2% yield CD... and that trumps even a crazy low 5% mortgage every time.  The Fed insists on keeping these rates "crazy low," yet in the back of my mind I see past recovery periods preceded by modest increases in the mortgage interest rate!

When we compare the numbers (*) in Palm Coast, FL, from the 4Q2010 to the 4Q2011, we see 30% more sales, with a 10% decrease in price.  And that matches perfectly with market trends that say, "Cash purchases can usually net you a 10% discount, when competing against a buyer with a financing contingency."  From the perspective of simple Supply and Demand analysis, this is a trend towards market equilibrium... and that's good news!

Other good news comes from those nasty old banks, themselves!  According to Krista Franks Brock, of DSNews.com, "Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.  Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”  In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV." 

Here's some great information from the Flagler County Association of Realtors MLS database:

• We currently have 1,050 single family, detached homes "For Sale" in our MLS.  This is way down from the worst of it, meaning things are moving!
• 70% are normal listings, 21% are short sale attempts, and 9% are bank owned.
• AND the better news is that we have 622 single, detached homes currently in "Pending or Contingent" status... waiting to actually close.
• And even better, is that 26% of them are normal sales, 58% are short sales, and 16% are bank owned sales.
• That means we are clearing out the bottom at a rate of 3 to 1!  This is a trend with enormously positive implications!

If we are good... and eat our liver and spinach.. we should be nearer to a "new normal" by 2014!
(*) These statistics are "approximate" and rounded off, for ease of discussion.  They include all areas served by our MLS, to include Palm Coast, Flagler Beach, Bunnell, all of Flagler County, and some small numbers of listings out of our immediate area.

"25 BILLION Dollar Housing Handout?"

$25,000,000,000 Handout

As I was paying my mortgage online this week...
for the house I bought in 2006... which now has a market value of about 50% less than I paid for it... while my income as a Real Estate Broker has been significantly eroded...

I heard a news report in the background that My Uncle Sam in Washington, was going to help folks out with a $25,000,000,000
(yes, those nine zeros take us into the Billions) handout, to help rub salve on the pain and suffering of those aggrieved by the crumby housing market.  See, what we're gonna do, is give $2,000 to those who lost a home (especially if a robot signed the foreclosure papers)... and subsidize others in a bad situation to re-finance!  And the neat thing about it is that those of us who have been hammered hard, albeit "2 strokes shy of dead," will pay for it!  How cool is that!

But, wait, who says they have been hurt more than me... or that maybe I dug deeper to avoid a foreclosure, or at least a "short sale" attempt?  You see the reason I'm not quite upside down - yet -
is because I put a huge chunk of what I used to have into my down payment... and now it's all gone!

I sit back and am truly mystified by this government intervention.  Don't they get that this will only slow down the rebound of the housing market, by messing with the market dynamic?  If someone has missed 4 or 5 mortgage payments and the government says, "Here's a no-cost re-finance for you."  What are the chances that that person will default again within a year?  Hint:  80%!  The truth is that reducing a payment by $100-$200/month is not enough for someone in a real financial jam.  So, the result is an 80% chance of another foreclosure, just delayed for a year, keeping the bottom from being cleaned out.


The crux of the problem is the 450,000 Florida homes in bank “shadow inventory” - those homes in the bank’s control, but not yet for sale.  That’s nearly double the second place State of California, with “only” 225,000!  At normal absorption rates, that’s an additional 2.5 years of distressed property, clogging the system here in Florida.  A look at the Flagler County Realtor Multiple Listing System (MLS) shows that 60% of single family home closings in the past 6.5 months in Palm Coast are already distressed sales (split almost 50/50 between foreclosures and “short sales.”)  It’s hard to watch Palm Coast friends and neighbors go through this, yet the primary action in First Aid is to “stop the bleeding.”  This new government intervention will only prolong the agony.

Why won't the government simply let the market find it's own equilibrium, without intervention?
Hmmm, you don't think that politics and winning votes in the next election has anything to do with it, do you?  Nah, how silly of me to think that way!

Palm Coast Is Now "Jingle Worthy!"

   When I first came to Flagler County, Florida, I didn't even know that Palm Coast existed.  It was 1999 and I was thrust here, by chance, for a family wedding.  The bride and groom lived in Flagler Beach and we stayed at the Topaz Hotel (home of "Blue at the Topaz," my favorite Flagler County eatery)

   I had flown from Virginia to Miami and Ft. Lauderdale for Real Estate conventions and training in the 90's, but had never driven around or gotten a feel for the Atlantic Coast.  I graduated from the University of Tampa in 1973 and had ties to Sarasota and Port Charlotte... I was more of a self-declared "Gulf Coast guy."  The wedding was in St. Augustine, so all we did was drive up and down A1A.  Who knew what goodies ITT and the team of "Ponch and Garfield" had to offer across the bridge?

   Well, unforeseen events moved me here in 2001 - and the first few years were akin to "Real Estate Heaven."  Then 2006 happened and my crystal ball has been in for repair ever since!  How can it be, that someone could buy a 6,500 square foot building lot (not on the ocean) in Hammock Beach, for $580,000 in 2005... and sell it for "what the market would bear" in 2011... for $65,000?!?!?  Ouch!

Getting Back on Track!

   So, here we are in the infancy of 2012.  Are those flickers of hope I see?  Will we really start to come out of this quagmire?  Both Flagler County and Palm Coast have renewed and re-energized "Economic Development" initiatives in the works.  The County has a new "Economic Opportunity Advisory Council" and it's new boss, Helga van Eckert, will be on board later this month.  I'm blessed to be a member of this council and we all feel a real responsibility to take decisive action to bring jobs and revenue to Flagler County.  Palm Coast is also doing the same.  See what's going on at:

• www.PalmCoastGov.com
• www.DiscoverPalmCoast.com
• Check out the new Palm Coast video and jingle:  
• http://www.youtube.com/watch?feature=player_embedded&v=pYRP-NNzD3A
• Also, visit the Flagler County site at:  www.FlaglerCounty.org
• For Economic Development news, follow the topic at:
• www.FlaglerLive.com
• www.PalmCoastObserver.com
• www.news-journalonline.com

   Recent political debates and discussions across the country tell us of the burning issue on people's minds, as we struggle to get going again and hear Bill Clinton whispering, "It's the economy, stupid."

RAGE Against Bank Stupidity and Cold Blood!

Right now, it's hard to
love the banks...

Banks are an easy target.  And like any easy target, they get hammered unmercifully.  They're like many politicians, in that you listen to their party line... compare it to what they said last month or last year... and you are forced to conclude that they tell lies for a living!

As a Real Estate Broker and Sales Agent for the past 25 years, I've seen the good, bad, and ugly... in up and down markets... in several states.  To say that this real estate market crash we've been in for the past 5 years is all the bank's fault, would be a stretch.  Yet to say they are a major contributor, is spot on.

So here's the purpose of today's post... My partner has been helping a customer to sell her house as a "short sale" with a well-known bank.  It's been a maddening process, consuming over a year of showings, offers, counters, rejections, and fickle buyers walking away.  Then, as it seemed at least, the stars and planets aligned.  A cash buyer at the bank's requested price... An approval from the bank's "negotiator"... and then... and then... THE BANK DISAPPROVED THE SELLER'S REQUEST FOR A SHORT SALE!  And this, after a year of stringing everyone along!

Single Mom...
of modest means...

Here's the rub - They denied this single mother's short sale because she has a job... and got a small raise this past year!  A single Mom of modest means... living in their personal residence... Denied!

Oh, and did I tell you that last year, I closed several short sale properties for Millionaires... on investment properties... because of hardship?  Hardship like this:  My salary has been decreased by 30% in this economy!  (Translation:  From $400,000 per year way down to $280,000 per year)  These folks were relieved of their mortgages and did not receive deficiency judgements at all!  Man, does it pay to be able to afford a good attorney!

From Perth Amboy to Flagler - A New Beginning

Economic Development = Political Hot Potato.

Let's face it, being a Realtor or a business owner or a Director of Economic Development, from 2000 to 2005, was a sweet gig.  Houses were flying off the shelf, restaurants were packed and Flagler County, FL was the fastest growing county in the country for two years in a row!  Heck, if things hadn't changed, a Palm Coast "starter home" would be $1,000,000 now and Flagler County would now be "skyscraper worthy."

But things did change... in a way that no one could have imagined.  Not since the depression of the 1930's, have we experienced such sustained economic frustration.  As a Realtor, there is a very personal, reverential humility, as I sit in the home of a friend who is hurting.  A typical scenario sees a couple who both had good jobs when I sold them their first home in Palm Coast, for $275,000.  Now, six years later, one or both have lost those jobs... or their hours or salary have been seriously curtailed.  They have missed a couple of mortgage payments... other bills are getting tougher to pay... credit cards are maxed out...

and they are in some eerie composite of denial, shock, and anger.  Their home is now valued at $145,000 and they owe $225,000. They have gotten their first "Foreclosure Notice" from the bank and they are feeling the first pangs of panic.  "Frank, what are we going to do?"  "Can we do a loan modification?"  "What is the difference between a Foreclosure and a Short Sale?"  And most important, "Can you help us?"

Counties and cities around the country are feeling the pinch of decreased tax revenue and familiar businesses, which once served us with a smile, disappear in the night.  All the construction vehicles, which once annoyed us on our roads, are gone... along with the jobs that rode them.  Politicians and their constituents know that something has to be done... but what? 

Flagler County, along with Palm Coast, Flagler Beach, Bunnell, Beverly Beach, and Marineland, to include the resort area in The Hammock and the agricultural areas of the Western County, are making it a top priority.  Enterprise Flagler did so much in such a positive way... and now the torch has been passed to the newly formed Economic Opportunity Advisory Council (EOAC), a nine member board, chaired by County Commissioner, Barbara Revels.  And to be sure, it's not a group which intends to stand alone against the wind.  But, rather, intends to embrace the interests of all the players and groups in the county.  It's just fine that Palm Coast has its own effort.  Why not... it's a big town and can do what it likes to further its agenda.  Everyone working together as a team - Chambers of Commerce, tourism groups, business incubators, training facilities and schools, arts organizations, professional and service groups like the Board of Realtors and Rotary, developers, business owners, and political entities - will be the key to success in bringing jobs and revenue here.

And now, a Director for this EOAC has been recommended to the Commissioners, by the nine council members.  Helga van Eckert, from Perth Amboy, NJ has been offered the reigns.  Assuming she agrees to terms and is approved by the Commission on 1/17/12, she should be on the ground here by the end of February, hopefully sooner.  She is impressive, unassuming, business crisp, and has done a heck of a job in her economic development tenure in Perth Amboy.  She has a friendly, cordial demeanor and  strikes me as one who has the ability to bring groups with diverse personal agendas to the same table.  Another factor which impressed me was that she made no attempt at wild promises or sugar plumb visions.  She made it clear that establishing a plan, based upon challenging, yet achievable goals, was the first order of business...  Communicating realistic expectations to the public and all the players will be the jumping off point.  Welcome to Flagler County, Helga... Time to roll up our sleeves.

Economic Revival Afoot For 2012?

Willis (Sears)
and Trump Towers

Chicago!  City "where the fog comes on little cat feet..."  "Hog Butcher for the World, Tool Maker, Stacker of Wheat, Player with Railroads and the Nation's Freight Handler; Stormy, Husky, Brawling, City of the Big Shoulders!"  Maybe I wouldn't have admitted it back then, but when I was a kid, I had a "favorite poet," and it was Carl Sandburg... and he nailed Chicago with his rugged, yet beautiful prose.


Today, I'm here to enjoy New Years with family and to take them all to a local hill for their first taste of skiing.  Come on, Chicago, we're here from Florida...  Give us some big time "lake effect" snow!  

Skating at Millennium Park

So I pick up the Chicago Journal yesterday and a business page header reads:  "Real Estate Revival Revs Up!"  New condos being built and older condos and apartments being re-furbished into new, modern condos!  Music to my ears!  From a Supply & Demand perspective, that is a huge indicator that the bottom has been found.  A bit of a contrast to my experience in Palm Coast, Flagler Beach, and Flagler County, FL, where last month I sold a gorgeous Yacht Harbor Village condo on the Intracoastal Waterway, on a bank short sale, for $145,000 to a cash investor.  Oh, did I mention that the seller, a mortgage banker friend of mine from Virginia, paid $640,000 for it in 2007?  And then there was the Ocean Hammock - Hammock Beach lot I also sold last month for $65,000... that the seller paid $510,000 for in 2005.  Ouch!  However, and it's really a BIG however... There is movement...  Things are selling...  Investors are back!


As I read the papers and the blogs here... and watch the business & financial news on local TV, I'm psyched to see lots of signs of revival and strong economic development efforts.  Why?  because when large, Northern, urban regions start to rev up... it begins the spill-over to smaller markets.  Also, if we compare the 4Q2010 to the 4Q2011 in Flagler County, FL, our real estate sales numbers were up nearly 30% and prices were down nearly 10%.  Again, the view from Econ 101, says this is good stuff... very good stuff!

Helping Buyers in Confusing Times

(These are helpful hints, from agents around the country, as culled from a recent piece in Trulia.com.  They make sense right here in Palm Coast, FL, as well.)

1) Give them the Facts

Facts and numbers are an agent’s best resource when it comes to buyer counseling.  Know your market - Cold!  Know all the differences among "normal sales, short sales, and foreclosures."  There are significant nuances that can be game changers.  Don't get caught short, without knowing everything a buyer needs to know, to make a good buying decision!

A top NJ agent says “Very often the amount [buyers would] pay for rent is more than forecasted depreciation [for homes].” It’s important that agent point out these facts.

Garret says, “Recent comps, a “cost of waiting” analysis for first time buyers, and news articles” can be helpful as well.

Recent data shows that in many areas buying outweighs renting by large margins. To show consumers how your area shapes up, check out Trulia’s Quarterly Rent vs. Buy Interactive Index or the U.S. Census Burea’s American Community Survey Brief.

2) Explain the Tax Advantages and Fiscal Benefits

“The financial and tax benefits of owning a home vs. renting are very clear,” according to the National Association of Realtors Field Guide to the Social Benefits of Homeownership.

Real estate taxes, mortgage interest, and certain home improvements can all mean significant savings (and potential refunds) for homeowners. Agents can help their potential clients understand these benefits.

To get up to speed on the basics, check out NAR’s Guide or check out this free quick guide from the American Institute of CPA’s on the Tax Advantages of Home Ownership.

3) Show them Interest Rate History

To help her clients take advantage of today’s opportunities, an agent in Colorado Springs, CO, says,  “I talk to [buyers] about the record low mortgage rates”.

To make your own custom snapshots of long term interest rates, check out the interactive Historical Treasury Ratepublished by the U.S. Treasury.

4) Ask the Real Question

Serious buyers make serious moves. “It all boils down to their motivation,” says an agent in Illinois.

“One of the best questions I learned is ‘If I find you a perfect house within the next 2 to 3 days is there anything that would stop you from buying it?’” he says.

His question is an important one for agents to consider. Understanding the level and reasoning behind a potential buyer’s motivation can be valuable in helping clients make the best real estate decision.

At the end of the day, the decision to make the leap into home ownerships rests in the client’s hands. A smart agent’s job is to make sure prospective owners have the right information to make their assessment and understand the unique opportunities today’s markets presents.