A Better Open House

Homeowners trying to sell their Palm Beach homes already have enough to worry about what with the real estate downturn and the various economic woes the country is struggling with. Realtors, real estate websites, and pretty much any and everybody who knows a thing or two about Palm Beach real estate have been giving out advice on how to achieve a successful sale. What they often fail to mention is how imperative the open house phase is. Take these tips into account the next time you’re planning on having buyers over to your home.

Cleanliness is next to godliness. While this may seem like a given, many sellers fail to remember that this home is being presented to strangers who will likely be inspecting every inch of the home thoroughly so take the time to really make sure the home is presentable and dust free. This includes the interior as well as the yard and the home’s exterior.

Make it feel like home. That old saying “There’s no place like home” is more or less the feeling you want to evoke in a buyer. This can be done by ensuring there are welcoming scents emanating through the home such as the aroma of freshly baked cookies or something else. The point here is not necessarily to get your guests to actually eat anything more as it is about making the home feel inviting.

Encourage a bright atmosphere. Make as much use of natural light as possible and in those spots that could use a lighter shade, also install new lights to highlight the home as a whole. After all a seller’s goal is to convince the people walking through their Palm Beach homes that they’d want to live in the place themselves so it only makes sense to showcase the home in shimmering light.

Plan to spend the day with your pet. The same way a guest can feel like they’re interrupting when visiting your home, so can a buyer if you’re hanging around the property. Plus since there may be buyers that may not like or allergic to them, it’s best to make some arrangements so that your pooch or kitty are away for the day the open house is scheduled to take place.

Fighting Economic Downturn and Reviving the Real Estate Market

While the Palm Beach real estate market has been troubled the past two years, sometimes it takes an election for public officials to do anything about it. Last month the U.S. economy saw several actions to boost economic stability and scathe off a trend of recession. The most popular plan was the Emergency Economic Stabilization Act that put together an impressive $700 billion dollars to "bailout" troubled banks. The plan was received with little confidence from consumers as stock plummeted to all time lows. However, recent meetings with the heads of state from Europe and Asia have begun to turn things around.

European economists believe the trend of economic downturn can be reversed by energizing the stagnant credit industry. The Europeans have criticized the U.S. for allowing Lehman Brothers to go bankrupt and for bailing out "toxic" lending companies. The European plan--which has been met with great confidence from America and Asia--set off rapid growth in stock markets across the world.

The real estate industry must focus on getting interest rates on mortgage lower so consumer confidence will be restore sales in Palm Beach condos and Palm Beach homes. Seventy percent of U.S. spending is used by the individual to buy food, gas and other material goods. Our society has become reliant on credit purchasing and when it is stagnant our economy will only continue to go down. So the plan to restore the credit industry seems like the right solution.

But the plans set forth by the Emergency Economic Stabilization Act and recent European advice isn't the only forces in play to assist the real estate market. Hope for Homeowners, a FHA program, launched its campaign to assist distressed homeowners last month and has begun resolving mortgage issues around the country. According to their website the Bush administration has equipped them with $300 billion dollars to provide "mortgage assistance for homeowners at risk of foreclosure".

Palm Beach Still Attracting Those Seeking Luxury Lifestyle

While overall sales in Palm Beach real estate have slowed, one area seemingly less affected have been the luxury homes and condos.

In the last three months several of our biggest sales were

820 W Ocean Ave sold for over 21 million
159 Via Del Lago sold for over 11 million
1428 S Ocean Blvd sold for over 10 million
231 Coral Lake sold for over 6 million
642 N County Road sold for over 4 million
232 Sandpiper Dr. sold for over 4 million
1006 Adam Rd. Sold for over 3 million
19647 Riverside Dr. sold for over 3 million
351 Bald Eagle Dr. sold for over 3 million
151 Seaview Ave sold for 3 million

With season right around the corner the agents at Scott Gordon Realty and Exclusive Estates are gearing up for a busy winter in our tropical paradise - Sunny South Florida!

The Present and Future of Palm Beach Real Estate

Just three years ago, if you put an offer in that was fifteen percent less than what the seller was asking for a Palm Beach home it would probably be followed by laughter. But times change and so do business markets. The current real estate market offers great opportunity for those looking to invest in real estate. Prices are thirty percent lower than they were three years ago and time-crunched sellers are eager to get their homes sold.

The real estate market has gone through a dramatic change the past several years and buyers now tend to have the upper-hand in negotiations. This doesn't mean that sellers can't adequately perform business in the market, but that they need to make concessions for market conditions. The era of inflated property values has come and gone, buyers and sellers are more interested in temperance and performing legitimate real estate transactions.

The future of Palm Beach real estate is fairly clear at this point. The demand for Palm Beach condos is low, but as property on the market is being sold to property investors and opportunistic potential homeowners the supply is shrinking. As soon as the supply of Palm Beach condos and homes reaches a specific low it will meet the demand and real estate market normalcy will resume. This is the pattern that Palm Beach real estate seems to be following at this time with the inventory of Palm Beach condos and homes slowly going off the market.

This is basically a waiting game, but the question on everyone's mind is…how long? Most economists believe we are reaching rock bottom prices right now, but that we'll probably need to wait around two years to see prices begin rising again. So if you're interested in owning Palm Beach real estate, now is the best time to invest as property values should linger around their current prices until their inevitable rise in value.

Baby Boomers Seek Palm Beach Living

Now that the economy, real estate market and consumer confidence is at an all time low in the United States there’s not much to be happy about in terms of finance. But is this economic downturn bad for everyone? A silver lining for the Baby Boomer generation that is saving up and working on their golf game as retirement approaches is that real estate is cheaper than it has been in a long time. But, Florida is a big state and choosing somewhere in its 1,200 miles of coastline may prove difficult.

Palm Beach has seen a significant growth in popularity. South Florida is divided by three major counties: Miami-Dade, Broward and Palm Beach. Miami Dade and Broward have seen large commercial growth and urban renaissance, this development has made them lose a touch of residential seclusion as high-rises pock their skylines and mass transit floods their once quiet streets. Palm Beach has maintained its quaint appeal throughout the flood of development that has engulfed South Florida.

Palm Beach has seen a growth in interest from baby boomers, oddly enough during Florida’s traditionally slower summer months. Prices for condos and homes have dropped so drastically that interest has swelled among those hoping to purchase an underpriced property to spend their golden years. In some parts of Palm Beach oceanfront property has dropped over fifty percent.

Many have insinuated that Baby Boomers buying up cheap Florida real estate may help repair the states current housing market woes. Florida is currently just behind California in total economic loss from the housing market downturn. But real estate isn’t the only industry that stands to gain in Florida from Baby Boomers moving in. Many different industries have been preparing to service the Baby Boomer generation from medical care facilities to golf courses and are expecting the Baby Boomers to put an economic boom in the economy.

Pricing for Success

Is it impossible to sell a Palm Beach Florida home in the existing market? Not really. Probably the only major difference hindering a successful sale involves having to take the extra time out to ensure the initial list price the home is sold for is as strong and attractive to buyers as possible while making sure the Palm Beach home itself looks good.

Staging has always been a vital component of home selling. Proper pricing is also essential but perhaps more people were able to get away with demanding an inflated price than the property was worth back when South Florida homes were selling at a rapid pace which didn’t make the research quite as necessary. The market situation has changed considerably since then.

Pricing has always been fundamental but it appears that even in a real estate market where values have dropped and buyers are meticulous about where their money goes, many sellers are not taking the time to effectively and realistically price their home. Whether it’s because they believe the property is worth a certain value or perhaps because they’re trying to generate as much profit from it as possible, some properties have been languishing much longer than necessary on the market.

What’s causing this mostly unnecessary problem? It’s very simple. Some sellers are listing a property for $199,000 when existing homes in the area may have a value of or may be listed for something within the $160,000 range, that’s over $30,000 dollars a buyer would save. The higher figure instantly stands out and gives off the impression that the seller may be asking too much when the price is not justified.

Considering some of the roadblocks that could affect the sale of the property in the future (drop in value due to buyer non-interest, foreclosure depreciation), it makes total sense to take the time before listing a home on the market to make sure the price is competitive. What could be perceived as selling at a loss may actually prove beneficial.

A Simplistic Housing Crisis Remedy

Foreclosures weigh heavy on our lagging economy making real estate's immediate future unclear. Palm Beach and South Florida homes have been substantially affected by the amount of foreclosures on the market, prices have dropped and so has consumer confidence. With no clear future in sight what should those who can help do to ensure a better future for the real estate market?

Many plans have been considered with varying levels of commitment and complexity from Federal Government subsidies to the creation of a department that monitors credit lending. The method they are employing immediately is a simpler form than most but has proved effective nonetheless. The Federal Housing Association (FHA) is the government body poised on recovering the real estate market. FHA has formed FHASecure which allows borrowers the opportunity to refinance their loan into a more feasible payment plan.

There were many poor lending practices that led to the current foreclosure fiasco. The one type of loan in particular that stands out is subprime mortgage lending. Though this type of mortgage only makes up ten percent of mortgages in the U.S., it’s done enough damage to nearly bring real estate transactions to a halt. Rates have gone up after a sharp rise in defaults and foreclosures, causing serious disincentives for potential consumers in the housing market.

The FHASecure initiative that has been put forward by the federal government provides help for distressed homeowners by allowing them to refinance into payments that are more realistic. This will hopefully prevent foreclosures from driving down the price of homes across the nation. The FHA has already assisted 150,000 homeowners with this service and hopes to bring stability to the market by further assisting those that would otherwise default or foreclose on their property.

The FHA has been criticized for not having enough funds and resources to handle the expansive foreclosure problem in the real estate market. Their progress in the next couple months will either silence the critics or bring more attention to their criticisms.

Vera Wang’s Via Tranquilla For Sale

Wang and her brother Kenneth inherited the Spanish Mediterranean-style residence from their father, C.C. Wang, who bought it in 1995. Located at 640 S. Ocean Blvd., the 1923 mansion designed by noted Palm Beach architect Addison Mizner has fond memories for the well-known fashion designer.

Wang remembers the days when her children, now 17 and 14, were younger and the house seemed to be bursting at the seams with children running around, recalling with pride that it sometimes felt like a day care center.

Wang, who describes Mizner’s architectural style as “Spanish lite” says she has always been fascinated by his work, especially the sense of whimsy that shows through. She describes Mizner’s style as dramatic, and appreciates the fact that some of his proportions aren’t quite, well, proportional. When asked how she would design an Addison Mizner inspired dress, Wang immediately offered that it would have an uneven hemline. Add some exotic color combinations and some peacock feathers and there you go – another one-of-a-kind Vera Wang creation!

Via Tranquilla is offered for sale at $19 million. Its east wall faces the Ocean, where the master suite and four guest bedrooms, each with its own bathroom, are located. There are a total of 11 bedrooms, one of which on the Northeast corner could be used as a second master suite. There are 10 bathrooms, and the total square footage is 11,654, with 9,706 square feet of indoor living space.

Foreclosed Hearst Mansion Sells at Auction for $22 Million

One of the country’s most expensive residences, the Hearst mansion, sold at a foreclosure auction on Monday for a bid of $22 million from New Stream Capital. According to the attorney representing Veronica Hearst, the property will go back on the market so the creditor can recoup its investment.

The 20,000 square foot home was designed by Maurice Fatio and bought by Randolph Hearst in mid-2000 for $29.87 million, at that time the highest sale price on record in the state. Hearst passed away six months later, leaving his widow Veronica without the means to maintain the property.

Veronica Hearst borrowed millions against the home’s value to pay for property taxes and renovations. She sold 150 feet on the property’s south end for $6.2 million, explaining that potential buyers were uncomfortable with the considerable size of the home. She stated that, with an older property – the home was built in 1929 – you can either destroy it or refurbish it, and her decision as the owner was to refurbish it.

However, to some, any change to the historic home is unacceptable. According to one source, the daughter of the architect who designed the home says that any variation from the original design is wrong.

The home is located at 1100 S. Ocean Blvd. in Manalapan, which does not have a preservation board that may have been able to block Hearst’s decision to split the lot if it had been designated a landmark.

To Rent or Buy in Palm Beach

Let’s assume someone is looking for a place to call their own for the very first time in Palm Beach. The general consensus seems to be that they should wait a little longer, buying Palm Beach real estate will result in losses which is true. Renting, once considered a silly decision, now holds a larger degree of worth, just ask the experts.

Per the National Association of Realtors yet another mass of people contributed to another boost in renting. Considering how “iffy” real estate is right now and the lower prices of South Florida homes, this research makes complete sense and some may say is indicative of smart money management on behalf of the renter.

When we take a look at renting, it does make complete sense. After all, the renter gets a place to live and to customize to a certain degree without having to trouble themselves with all these things like property insurance, closing costs and most of all, mortgages. Once they’re ready to move to a larger place, the responsibilities on their end are mostly relegated to ensuring that the last month’s rent and utilities have been paid off and that the potential lease agreement has been satisfied.

Now let’s say this renter stayed in the home for a year. On the lower end, that’s more than $10,000 dollars spent in rent alone and all that money does not contribute to any long term benefits, a notable difference when a renter owns a home that can generate substantial equity and/or value. It’s also worth nothing that the year’s worth of rent payments are practically equivalent to a down payment on a no frills Palm Beach home.

Is this a thinly veiled advertisement persuading readers to buy a Palm Beach condo or home? Not necessarily. After all, buying is expensive and it requires large capital to deal with the numerous costs involved. Renting has its own excellent benefits but instead of just playing it safe because a friend says buying is a bad idea, try doing your own research or consulting an impartial real estate agent. A venture that seems audacious at first could reap long term rewards.

Affordable Beach Property Becomes a Reality

A couple of years ago, South Florida luxury homes were too high-priced even for some successful Americans. Waterfront properties seemed unattainable as they crept close to averaging one million dollars in some places. Even some in the wealthy class shrugged at the prospect of paying that much for a home. But now the prices are much more realistic, ranging from $400,000 to $600,000 in those same places. The sharp decline in real estate values the past three years has been devastating to homeowners but has potential investors "licking their lips" thinking of the opportunities.

The current status of the Florida housing market is unusually chaotic. The South Florida real estate market has not fallen so sharply in the last sixty years and South Florida's long term real estate investments are traditionally strong. Many investors are seizing this opportunity to buy up luxury property they believe is underpriced. Examples of this are Palm Beach Condos on the water which are considered luxury property but at the moment are certainly not priced for luxury.

Most people remain reluctant to buy into the current market. This decision may prove to be ill-advised because some projections are claiming the price of houses will go up at the end of the year, making it the best time to buy now. Existing and potential homeowners should evaluate their financial situation to determine whether or not they have the resources to invest in property now, so they don't miss this great opportunity to own luxury property.

Make sure you have valid risk assessment. If you have the capital to make a down payment and the resources to maintain mortgage, insurance and utility payments, then you're a viable candidate for property ownership. Check the prices of beachfront property in your area and see the valuable opportunities for yourself.

How to Sell Your Home

If you’re considering selling a Palm Beach home you know you have much to consider. How should I price the property? What realtor should I use? How can I get the property more exposure? The answers are simpler than you think, it’s all about appearance. In order to sell a home you need to peak a buyers interest, would you go on a date or job interview without wearing your finest attire? The same rules apply to showing a home. It is important to make your home as presentable as possible and perform every possible preparation in order to maximize your potential to find a buyer.

You should begin where your buyer will, from the curbside view. Check the perimeter of your home to make sure there aren’t any minor, or even major, repairs that need to be made. An hour pressure cleaning, trimming the garden, or adding a layer of paint to cover a blemish on your home could prove invaluable when your home is sold for the price you want.

As soon as you’re finished outside, you can begin your work on the inside. The inside of a home can be a “deal maker” or “deal breaker” depending on how you add or subtract decoration for a more aesthetic appeal. The house is obviously great, after all you chose to live in it. So, you should highlight the qualities with appropriate decoration. Buying a set of drapes, or a sofa cover can increase the inner appeal of your home immensely. Realtors can give you the advice you seek to let the interior of your home have a universal appeal with home buyers.

Buying and selling a condo or home is a tricky business. Real estate agents use their professional experience and insider knowledge of the real estate market to provide valuable services toward property transactions. Realtors can help: stage a home, price a home and sell a home. So if you’re considering selling a home, you should try to find a realtor you trust and get your home sold for the price you want in the timeframe you want it sold.