Article by Jim Beggins – The Property Wizard Broker – Century 21 Beggins Enterprises
Our beach clients seem overwhelmed and indecisive. The ‘boomers’ say they want to go back up north, rent rather than buy, downsize, go from house to condo, move downtown, etc.. They talk about doing all these things, but few are acting. Soon they will all act at the same time and put a glut of Barrier Island properties on the market. That will force prices down.
Supply and demand govern real estate prices. Explore your options while supplies are low. Many options will go away as supply increases. The ‘Baby Boom’ generation has created trends in everything from baby diapers to school and house construction, job creation, retirement trends and, soon, adult diapers.
Every day in the U.S., 10,000 Baby Boomers reach age 65. It’s around that 65th birthday (and for the 10 or 20 years that follow it), that Baby Boomers feel especially motivated to sell their homes and move on out.
It’s time to get out or settle in for the long haul. Many will simply downsize. Others will go to some form of retirement living. It’s not so much about where they will go but what will we do with the buildings they are trying to leave behind that will change the real estate market for the future. Boomers didn’t save enough for retirement. For most of them, their home is their biggest asset. But many will need to sell their homes to finance their post-work years. Most Boomers will want to, or need to, sell the big family homes they purchased years ago. And here’s the rub: There aren’t enough buyers to soak up the kind of housing inventory that downsizing Boomers will leave in their wake. The younger generations can’t afford or don’t want the Boomer properties.
Think about the job market, demographic forces, shrinking family size and younger generations not believing that the “American Dream” is owning a house anymore. I’d like beach homeowners, especially those on the water, to think about the two 800-pound gorillas in our living rooms… flood insurance and the newest one, seawalls. Both gorillas already impact our property values. I’ll say more about these in next month’s Wizard. The housing market is starting to look good again, Yes? BUT is it? Be informed while others have their heads in our beautiful Pinellas beach sand. We earn your trust by telling you the truth. It’s not always a good time to buy, or sell. We all have different needs.
If you think you might want to sell, consider the following:
1. Get your real value. We give clients 15 valid comps, free on a 1-page Strategic Market Analysis.
2. When you know the selling price of your property, you can decide whether to stay or go.
3. Interview three local agents with international exposure. Pick the one with the best marketing plan.
4. If you post a ‘By Owner’ sign, use it to pick the best agent. FSBO’s generally sell for 16% less.
5. Pick an agent who represents your best interests–As a “single agent” (in writing).
6. Consider holding a mortgage with a big down payment and high interest rate to attract buyers.
7. Get advice before spending money on repairs or upgrades.
Century 21 Beggins Enterprises has 11 offices serving Pinellas, Hillsborough, Manatee and Sarasota Counties. Since any real estate view can be supported with facts, I will inform you to the best of my ability so you can unconfuse the facts to your personal advantage. I think I can use my “hands on” experience in Florida real estate since 1970 to help achieve clients’ desired outcome.
Date: August 2014
Please let me know how I’m doing. Email – JimBeggins@C21BE.com or call my cell 727 254 8144
5050 Gulf Blvd. Suite B, St. Pete Beach, FL 33706
Office: (727)-367-9500 • Fax: (727) 367-9784.
Check out our listing presentation on C21BE3.com or www.PropertyWizardTeam.com