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Real Talk with Big RedAuthor: Denise Petti
Everybodys got that one thing they love. Is your ONE THING related to real estate? Do you binge-watch shows like Love it or List It and the Property Brothers? Do you not-so-secretly wish you could be on one of those shows? Maybe you find yourself mentally staging your neighbors home so you can sell it? Well... if you can relate, then youre in good company. My name is Denise Petti... but my friends call me Big Red... and Im a licensed REALTOR specializing in primary homes and luxury vacation properties across New Jersey and beyond. Ive made it not only my job... Ive made it my passion and my mission to connect people, places and dreams. In this podcast, I GET REAL about all things real estate. Ill be joined by fellow real estate agents and industry experts as we dish about the whos, the whats, the wherefores and the how tos around one of the most reliable and universal means for building wealth since the beginning of time. Even better, Ill be taking your real estate questions, right here on the air. Phone lines are now open and ready to take YOUR real estate questions. The toll free phone number here in the studio is 844-5-BIG-RED so give me a call and ask me anything about real estate. Who knows? Maybe youll be featured on the show! Just to recap If you love a good beachfront bargain hunt If you cant get enough of what this crazy (housing) market is doing... If youre a sucker for a good story and you geek out over a great flip, then youre definitely in the right place. Join me here each and every week as I, along with my guests, redefine real estate with real questions from real people just like you. Its time to kick back, get comfy and grab your favorite real estate app - cause I know you got one - and tune in every (Monday) for REAL TALK with Big Red. Language: en Genres: Business, Home & Garden, Leisure, Management Contact email: Get it Feed URL: Get it iTunes ID: Get it Trailer: |
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Ep 9: Being a Discerning Buyer in a Seller's Market
Episode 9
Thursday, 16 September, 2021
If you are a fan of HGTV, then you know and have seen with your own eyes what buyers tend to look for and desire in today’s housing market: the chef’s kitchen, the soaker bathtub, the large backyard, room for a home office, a workout room, plenty of space to entertain… and of course, all of it completely fresh, modern, clean, updated and turnkey…. MOST of us are savvy enough to know that most TV is scripted, even and especially what they call “Reality TV” - totally scripted - so the question we are posing today has more to do with the buyer mentality that these shows are (perhaps unknowingly) creating in today’s marketplace. Which is to say, buyers with more discerning palettes are finding themselves in quite the dilemma as they find themselves coming up against other buyers who place far greater weight and importance on simply winning the deal at all costs. Can beggars even afford to be choosers in today’s seller’s market? Well all of this and more is what we are talking about today on this episode of Real Talk with Big Red.Episode Takeaways:Why being picky can sometimes do more harm than good in the modern real estate marketWhen to stick to your guns on the dream home wish list and when to set stuff aside for the sake of a positive outcomeHow to hold your real estate agent accountable in helping you find what you want and, more importantly, deserveBull market. Bear market. Buyers market. Sellers market. Sounds like a Dr. Seuss book... They come, they go, or so they say… because the current seller’s market appears to be here to stay with no signs of slowing down, at least not in the foreseeable future… but who among us has a crystal ball and how can we even predict what might happen… the more pressing matter is not what is GOING to happen but what IS currently happening and how to smoothly navigate the process amid so much chaos.Mega Real Estate Extraordinaire, Sam Lepore, is here in the studio with us today… He is the fearless leader of The Sam Lepore Group, a team of powerhouse agents working in and around South Jersey, down at the Jersey Shore and over the bridge, in Philadelphia. He has been in the real estate industry for close to two decades now, getting his launch in the mortgage industry, then transferring over to the sales side not long after the 2008 housing bubble burst. I myself have had the distinct honor and pleasure of working shoulder to shoulder with Sam in recent years, and I can say with authority, confidence and gratitude, that Sam is truly the man. That said, please join me in welcoming my co-host and guest today, Sam Lepore! Welcome Sam!So we’re talking about home buyers today…. First, let’s get your background before we launch into some of the listeners’ more common questions on this topic.Tell me, Sam, HOW… perhaps more importantly WHY did you get into this business and what would you say ignited your passion for real estate?Common questions:1.) So Sam, I’m sure you get asked this all the time… I know I do…. And we talked about this on the last episode with lender, Matt Boyce, who you and I both work closely with… What do you think, is this bubble gonna burst? 2.) Let’s talk about housing inventory… as most fans and followers listening can attest… there’s so few homes for sale, so little time. How are you preparing your buyers to go into battle… and do you consider it a battle to compete and win bids in this current climate?As it relates to a winning formula, do you have a particular strategy or style that you like to stick to when working with buyers? I mean, it’s no small thing, guiding our clients, navigating them throughout the process, encouraging them, supporting them, offering suggestions to overcome transaction challenges… one could argue that it’s not enough to simply be an agile and experienced full time agent…. You also need to have, like, the Midas touch… what are your thoughts?And can we also talk about the challenges surrounding buyer financing? Naturally, buyers today with pre-approved FHA and USDA, VA and even Conventional loans are up against quite the race as they compete with all cash offers. Then you’ve got contingencies and appraisal issues…. What are you telling your buyers to help them stay on the positive and proactive side of things?Hey Big Red, my name is Scott and I have a question for you about getting ready to buy a house. I keep telling myself that I refuse to buy at the top of the market, and yet I currently own three properties and am strongly considering cashing out on all three and making a more decisive purchase in advance of retirement. My issue is that although I know I’ll make out quite well on the proceeds of my three sales, I am reluctant to overpay while values are so inflated. I am considering renting for the short term, just to see how things play out. My hope is that within the next few months or so, values will come down and inventory will improve. What is your prediction? What would you recommend to someone in my position? Thanks Big Red! Speaking of getting your house ready for sale… Real quick, I’d LOVE to share with you some of my favorite home / lifestyle picks that I’ve curated myself on Amazon. I’m a sucker for the perfect stage and I know these items are gonna help you enhance and beautify your home for a successful sale.I’ve created a quick one stop shop where you can grab all the items that will set your home sale up for success, from the photo and video shoot to the open house to the final walk-thru!So, if you’re in need of a little seasonal refresh (or are in desperate need of some home sale staging inspiration)... and you wanna zhush up your home, you should head on over to denisepetti.com/shopAnd here’s the beautiful thing, when you purchase any of the products listed in my curated Amazon collection, not only will you help keep this show going, but you’ll also help others who are interested in all things real estate find the show too.Again, all you need to do is go to denisepetti.com/shopNow if you wanna make it even easier and you’re already on your phone, go ahead and open a new message and text me. That’s right, you can text me directly and I’ll send you the link to my curated Amazon collection.You can text BIGRED to 69696That’s B-I-G-R-E-D to 69696And now it’s time for our Market Analysis segment of the show… Lawrence Yun, chief economist with the National Association of REALTORS® released a piece a couple of months ago, May 2021 in fact, related to statistics surrounding Existing and Pending Home SalesIn it, Yun says we have never seen price appreciation of this magnitude. Twenty-four percent increase in the median home price from one year ago, May of 2020 to May of 2021. Twenty-four percent price appreciation, strongest ever, now surpassing 350 thousand dollars nationwide.Furthermore, the home prices are continuing to hit record-high levels now, with prices rising so much it's beginning to squeeze away some buyers.Home sales decline for the fourth straight month. Latest 5.8 million on an annualized basis, so it's steadily sliding down. We are still above the pre-pandemic home sales activity but only by a small percentage. It used to be, just a few months ago, about 20% above pre-pandemic, so the sales activity is clearly being hurt due to the affordability challenges and also the lack of inventory at the affordable price points.Anything under $300,000, very little inventory. Nonetheless, given that the sales activities are coming down, we may be sensing some turn in the market. We are seeing less prevalence of multiple offers. It is still a seller's market, no doubt, but the prevalence of the multiple offers or the days on the market, very swift at 17 days, but it is not falling anymore and it may begin to increase in the upcoming months. Still a sellers' market, but people need to be very cautious how they price their home to attract buyers, knowing that these sales activities are declining somewhat.Now, the most affordable region of the country is the Midwest region, whether one is looking at Indianapolis, Cincinnati, Cleveland, Des Moines, prices are affordable, therefore, it is the only region of the country with increased home sales. The other three major regions, the West region, South, Northeast, saw a decline in sales activity. More notable decline out in the West for the second consecutive month. The west region is the most expensive region, clearly implying that affordability is becoming a major hurdle for increased transactions out in the West region.Another interesting development is that the vacation home market is outperforming the primary home market. We completed a study from last year as well as year-to-date. Clearly, the vacation home sales are much higher now compared to pre-pandemic, much more so than the primary home, and the price appreciation in the vacation counties, whether it is out in the Smoky Mountains region, Lake Tahoe, Cape Cod, Upper Michigan, the price appreciation showing a stronger rise compared to the primary home market.In summary, the housing market has shown exceptional performance, but expect more inventory coming onto the market, the market to be calmer.As we proceed through the remainder of the year, it will still be a sellers' market. The first-time buyers will face some challenges on the affordability front, but calming of the market and less need for hurried decisions should be a welcoming trend. Links mentioned on this episode:denisepetti.com/shophttps://www.nar.realtor/videos/may-2021-existing-and-pending-home-sales
