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At Home with Gary: Selling your home? Don’t fear a changing market

Gary Lanham • July 7, 2022

What a difference a few months make for Fort Lauderdale home sales.



This winter, homes were flying off the market at record sale prices and at a fevered pace. Now, rising interest rates have some prospective buyers delaying their decisions, so homes are staying on the market longer than before.


Truth is, if you’re considering selling your home, the changing market should make little difference to you.


Let’s look at the realities on the ground. Listings lasting “longer than before” means most homes in desirable neighborhoods like Pompano Beach, Fort Lauderdale, Coral Ridge Isles, Wilton Manors, Oakland Park, and other areas, are selling in weeks, not days. This is a more “normal” time period than what we’ve seen since the pandemic. Experienced Realtors knew the fast contracts at thousands over the listing price were the anomaly.


Nationwide, a correction is occurring. As sales slow, more homes are being added to the inventory of available listings. This is good for a stable market, giving prospective buyers more homes to consider and taking the “frenzy” out of the equation. Frankly, that’s not a healthy condition for any market, but especially something that’s likely to be a consumer’s largest transaction they’ll ever be a part of. Yet one reality remains. Greater Fort Lauderdale, and South Florida as a whole, remains among the nation’s most enviable places to live. A higher quality of life at a lower cost of living than most metro areas – in a state with no personal or corporate income taxes – still tip the scales for many weighing where they want to spend their futures. For those nonetheless nervous about higher interest rates, we’re also seeing homeowners and buyers exploring various options to make home buying – or staying in place – a viable option.


As we discussed earlier this year with Donn Rubin with Fairway Mortgage, one option is the home equity conversion mortgage for purchase [HECM]. This program, designed for those 62 or older and living in their primary home, provides the possibility of refinancing your existing property or buying a high-end home – with no required mortgage payment.


It also lets homeowners with a HECM for purchase to preserve their retirement portfolio and allows the homeowner to use the equity in their home to make a deeper investment in the market.


We also see “2-1 buydowns” returning to the market. Instead of lowering the price of their home, sellers can offer the buydown to help the buyer qualify for the property. The buyer receives an interest rate usually two points off for the first year of the loan, which then rises a point for the second year. In the third year, it rises to the full rate.


Some market followers are anticipating interest rates will stabilize once inflation cools. Home buyers concerned about higher rates could find the opportunity to refinance when that happens.


As we look at the broader picture, we’re seeing a shifting and evolving real estate market. Again, continued low home and condominium inventory combined with inflation means that prices could remain high for the foreseeable future, especially in communities like Coral Ridge Isles, Deerfield Beach, and coastal neighborhoods with abundant single-family homes and condominiums, especially Greater Fort Lauderdale’s desirable east side. Despite high home prices and rising mortgage rates, demand is still strong.


If you’re interested in selling your home and buying another quickly, a knowledgeable real estate expert is critical to helping guide you navigate this landscape. This is a market rich with opportunities for those who take the time to study the conditions.


Truth be told, opportunities like this don’t come along often. What was a seller’s market a few months ago has become more balanced. Some prospective buyers are taking their time. Maybe you should, too.

Take the time to have an appraisal performed to see your home’s worth in the current market. Do some upgrades – from a fresh coat of paint inside or out, to landscaping upgrades, to other renovations to boost the home’s appeal. This will prepare you to act – no matter the market.


Gary Lanham is team leader for the Gary Lanham Group at Coldwell Banker Real Estate Fort Lauderdale Beach Office. To learn more, visit instagram.com/garylanhamgroup or call 954-695- 6518.

At Home with Gary: Selling or buying your home in “interesting times”

By Gary Lanham • May 1, 2023
By Gary Lanham | Contributing Columnist The past several years have been interesting times for the Fort Lauderdale home sales market. As we’ve explored together in this column, the boom times of too many buyers chasing too few homes, and then, how rising interest and mortgage rates cooled what had been one of Florida’s hottest

At Home With Gary: Five steps to sell your home in a digital world

By Gary Lanham • April 3, 2023
Studies report that the vast majority of home buyers (97 percent) first see online - whether with their smartphone, tablet or computer - the home they eventually purchase. [Courtesy] By Gary Lanham | Contributing Columnist In recent columns, we’ve discussed the importance of “digital curb appeal.” That is, using tools like digital photography, videography and

At Home with Gary: How staging presents your home in its best light

By Gary Lanham • February 28, 2023
Remove furniture that may clutter the home - and open the space to make it more airy. This gives the buyer a chance to visualize the space with their own furniture in it. However, we suggest never emptying a home of all furniture; buyers need a spatial perspective to see how a dining room table

At Home with Gary: Digital curb appeal makes property attractive from the street to the world

By Gary Lanham • February 1, 2023
A major national magazine recently asked me about the definition and importance of digital curb appeal. My short answer was that it’s the way the overwhelming majority of home buyers start reviewing properties for sale. In fact, my answer understated the impact digital curb appeal has today. Digital marketing in real estate takes first impressions to a higher level (another level), don’t miss this opportunity. Whether on their smartphone, tablet or personal computer, about 97 percent of today’s home buyers are first attracted to properties online. As the internet and social media become the way many prospective home buyers see properties of interest, it’s critical that your home shines online. We all know traditional curb appeal. It’s the view of the house from the street, sidewalk or curb out front. Don’t think curb only means single-family residence. Condominiums, townhomes and duplexes also can benefit from digital curb appeal. How is digital curb appeal accomplished? Experienced listing agents encourage sellers to apply fresh paint to their house, or paint a contrast color on the front door. They’re told to manicure the lawn and garden to improve the home’s general attractiveness. This is all outside the home; it has nothing to do with the home’s interior. As buyers drive through the neighborhood, often on the weekends, what stands out are the houses that look like the place they would want to call home. It becomes the invitation to prospective buyers to “see more.” Digital curb appeal takes that presentation a step further to present the entire home to the world – from outside to inside the front door. When we list a home, we hire professional photographers, videographers, even drone operators, to capture the home in the best light. I mean that literally, as photography is shot when the sun shines best on the property. Areas of the home – the kitchen or bathrooms or the pool and patio deck – that have been upgraded or are especially alluring get special attention. This appeal translates to a warmth and charm the home radiates to the viewer. Tech-savvy realtors also routinely provide 3D tours, such as those provided by Matterport, EyeSpy360 or Cupix to show the home as if the viewer were walking through it themselves. How is that viewer found? Realtors versed in digital marketing work in concert with leading SEO partners who use keywords and phrases meant to elevate the property and specific community or neighborhood. We write engaging copy, full of rich details to tell the story of the home, the neighborhood and the lifestyle that could be enjoyed by the buyer. The result is that digital curb appeal allows buyers to “drive” the internet anytime, 24/7 to find properties of interest that coincide with their living/lifestyle requirements. Think of it as a vetting process; they have an earlier opportunity to review the exterior and interior of a house. They can learn about neighborhood assets – parks, restaurants, schools, churches, retailers, even hospitals. The buyers then can take a list of homes or neighborhoods they’ve discovered to their realtor to help guide the search. “This is what I like,” they can advise. “But don’t spend time looking at this area.” That’s why the listing agent must capture the attention of prospective buyers browsing through hundreds of listings. This digital curb appeal becomes the seller’s online chance to make that critical first impression. This is the first in a series of articles exploring the importance of presenting your home online. The next article will explore the strategy behind staging the home and shooting the best photographs and videos unique to the given property. As team leader for the Gary Lanham Group at Coldwell Banker Real Estate Fort Lauderdale Beach Office, Gary Lanham is a veteran listing agent skilled in the most complex transactions. ​He knows how to get sellers the most money in the shortest amount of time, even in this changing market. See Gary’s digital promotions of his listing and contact him at instagram.com/garylanhamgroup or call 954-695-6518 .

At Home with Gary: South Florida real estate predictions for 2023

By Gary Lanham • January 3, 2023
If the COVID and post-COVID era made for interesting times, 2023 promises to be just as challenging – or exciting – depending on your tolerance for the unknown. Below are 12 predictions for the year ahead . . . 1. Home prices will hold in 2023. A shortage of homes in South Florida, combined with homes still selling at record levels, translates to strong pricing. Home prices will go up 3 to 4 percent because of low inventory. While people overpaid for homes in the last two years just to get in, home buying will be an even smarter call in the year ahead than during COVID. 2. Home inventory will shrink. The dilemma of Florida homeowners has been clear: if I sell, where am I going to move? Only homeowners forced to sell due to life events – divorce, death, recession and unemployment – will be motivated to sell. Others will stay put, putting downward pressure on inventory. 3. Foreign investors return to Florida. Political and economic instability and uncertainty across Latin America will continue to drive a flight of capital to the U.S., and particularly South Florida. Lenders flush with money will be eager to loan, meeting the needs of those foreign nationals looking for mortgages. 4. Fix-and-flip home activity will slow down in 2023. The high cost of real estate, coupled with inflation and ongoing supply chain issues, will take these investors out of the market as profitability decreases. 5. Mortgage Interest rates will drop. It’s curious how sometimes when the Fed raises the Federal Reserve rate, mortgage rates may drop. After unprecedented rate hikes over the past year, the Fed has indicated rate increases will slow in 2023. These will end up in the 5 percent range by the end of the year, calming borrower concerns and driving buyer enthusiasm. 6. The number of real estate transactions will go down. The year 2022 saw up to 25 percent fewer real estate transactions than 2021. The year 2023 will have even fewer real estate sales than 2022, as the market finds equilibrium. 7. Rental demand will grow. Fewer real estate transactions and low inventory for sale will fuel growing rental demand. This will cause further increases in rental rates, which are forecast to rise by up to 13 percent for the year. The interest on rent is 100 percent, meaning that you get nothing for your rent. You pay your landlord’s mortgage and, at the end of your rental term, you own nothing . . . so you might as well be paying 100 percent interest. 8. Investment properties will return to the market. These properties, especially Airbnb and other rental properties, will start to hit the market as investors recognize lower returns due to increased supply and lower short-term rental rates, as well as higher taxes and insurance premiums on non-homesteaded properties, and as consumers grow more cautious about their expenses in a questionable economy. 9. Fewer first-time home buyers. High home prices, coupled with increased interest rates, and again, economic uncertainty surrounding their budgets and income, will dampen buyer enthusiasm. Those first-time home buyers who do decide to buy will be pushed to less desirable areas. 10. Seller concessions will grow. The days of “as-is” home sales and waived inspections are over. Fewer buyers, coupled with higher inventory, will induce seller concessions, such as inspection-report repairs, purchase of mortgage rate buy downs, and other creative ways to stand out against other real estate listings. Buyers don’t care about the interest rate or the sales price; the buyers care about their monthly payment. 11. Seniors 62 or older will seek creative cash flow. Seeking a better, more stable retirement, seniors will explore ways to eliminate mortgage payments, increase cash flow and leverage their current residence to live in the home of their dreams through reverse mortgages or other options. 12. Say goodbye to Fort Lauderdale’s older homeowners. Seniors and retirees tired of the region’s congestion – and hoping to capitalize on home values – will cash out and move north. They’ll stay in Florida, but head to places like Stuart, Port St. Lucie, Vero Beach and The Villages. If you’re hoping to list and sell your home, the right realtor can help. As team leader for the Gary Lanham Group at Coldwell Banker Real Estate Fort Lauderdale Beach Office, Gary is a veteran listing agent skilled in the most complex transactions. ​He helps sellers get the most money in the shortest amount of time. Contact him at instagram.com/garylanhamgroup or 954-695-6518 .

At Home with Gary: How real estate can be your ticket to citizenship

By Gary Lanham • December 8, 2022
By Gary Lanham Group | Contributing Columnist Those hoping to immigrate to the U.S. have limited options. Those with means can do so through real estate, business investments, or business investments comprising real estate. They invest a fixed amount of money into a business entity that guarantees the creation of a certain number of full-time

At Home With Gary: Selling your home takes creativity and commitment, Part III

By Gary Lanham • October 31, 2022
By Gary Lanham | Contributing Columnist Selling a home in today’s market takes creativity, collaboration, and commitment. In the course of a few months, fast-rising interest rates and fears of inflation have halted bidding wars and over-asking-price deals. If you’re looking to sell a home or condominium, how can you stay calm while luring a

At Home with Gary: Welcome mat or “No Pets”: HOAs struggle with support and service dogs

By Gary Lanham • October 31, 2022
By Gary Lanham |Contributing Columnist Dogs have gotten a bad rap lately. So have condominium HOAs struggling to enforce their rules. Can’t the two just get along? In the “emotional support” era, some dog owners have paid for the paperwork from a licensed mental health professional or doctor needed to make their canine a comfort

At Home with Gary: Selling and buying homes in a time of change, Part I

By Gary Lanham • October 8, 2022
By Gary Lanham | Contributing Columnist If you’re trying to sell or buy a home in today’s real estate market, the Chinese proverb, “May you live in interesting times,” may come off as a curse. The bidding wars and over-asking-price sales of just a few months ago are gone. With inflation on the rise, the

At Home with Gary: Home sellers: Creative incentives can sell your home, Part II

By Gary Lanham • October 8, 2022
It’s getting cold in the Sunshine State. Buyers with homes under contract are getting cold feet, and Florida had four of the nation’s top 10 markets with the highest cancellation rates in the past three months, according to CNBC.  Rising interest rates, still-high home prices and uncertainty about the economy have buyers thinking twice about inking the contract or closing the deal. Yet in Fort Lauderdale, including Wilton Manors, Oakland Park and Pompano Beach, listings have increased. If you’re a home seller, what creative incentives can you offer to improve your chances for a sale? Consider the 2-1 buy down . This seller incentive can help lower the interest rate during the first two years by the seller agreeing to “pay points,” or award the buyer a certain number of percentage points of the sales price, which will, in turn, be paid to the buyer’s lender as discount points that bring the buyer’s interest rate down. Rates revert to the contracted rate for year three and for the duration of the loan. If they sell the home, any leftover buy down money reduces the principal; it is not lost like if the mortgagee paid points to reduce the rate permanently. This incentive decreases the pressure buyers feel to guess the right day to lock in their interest rate [a common source of serious stress among buyers] and sends the message that if they buy your home, they’ll automatically beat the market rate. Seller-paid points are usually tax deductible to the buyer. Closing cost credit . Many buyers trying to break into the market while prices are low are already scraping the bottom of their savings account barrels to come up with their down payment money. With most home loans, the buyer will have to come with anywhere from 3 to 6 percent of the loan amount, in cash, on top of their down payment, to cover closing costs like loan fees, escrow services and title or mortgage insurance. Some sellers [and their agents] include in their home’s listing and marketing materials the offer to pay a credit from 3 percent to 6 percent of the home’s sale price at closing to defray the buyer’s closing costs. Turn requested repairs into improvements . By showing repairs to the air conditioner or roof as improvements or offering a home warranty or applying an allowance for such repairs at closing, you’ll boost buyer confidence and help them win over their lender. HOA dues credit . If you are selling a home in a homeowners’ association [HOA] that charges monthly or annual dues, paying those for the six to 12 months or more can help defray significant costs for the buyer. Talk with your agent about how to do this in a way that will offer the maximum lure for buyers but will not run afoul of any guidelines for seller credits imposed by the buyer’s lender. Then, find a realtor who is as eager as you. Will they offer perks like lunches and cash giveaways from a drawing with business cards from open house attendees; partner with another brokerage who has a listing near or in the same neighborhood – and perhaps split the expense by one house offering cash give away for attending; or connect with realtors who have had recent sales in the neighborhood to bring the house to their attention? Will they change up the MLS entry data, or allow any broker to advertise their listing, or increase the commission to the buyer’s agent from 3 percent to 4 percent? These incentives can create an audience for any brokerage where you can assure those agents that you have a property that can compete effectively. If you’re eager to sell your home, the right incentives from you and your agent can prove you’re serious – and win over your buyer. Click here for Part I. As team leader for the Gary Lanham Group at Coldwell Banker Real Estate Fort Lauderdale Beach Office, Gary is a veteran listing agent skilled in the most complex transactions. He knows how to get sellers the most money in the shortest amount of time, even in this changing market. Contact him at instagram.com/garylanhamgroup or call 954-695-6518 . Gary Lanham is a New Pelican advertiser.
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