Long Island Real Estate Market – To Sell or Hold – Real Estate Marketing

Many homeowners on Long Island are pondering whether or not they should sell their homes now or “wait it out”. I want to discuss a few factors that may aid in this decision. These factors may also shed some light into why it’s so important to choose a competent real estate agent.During the years between 1999 and 2004/2005, the real estate market, especially on Long Island, realized a tremendous upsurge in appreciative values, as the prices of homes could see as much as 30% appreciation in 12 months. In this article I want to feature the “real estate roller coaster”. This is a graphic that some pretty smart people put together in order to trace the trends of real estate for the past 110 years. You can view the coaster at google.com – http://video.google.com/videoplay?docid=-2757699799528285056.Now you have to try and stay with me on this. Toward the end of the roller coaster, you’ll notice an incredible incline that never seems to end. It is the steepest incline and the longest of the entire roller coaster. Unfortunately, we’re at the end of the incline and now face the decline. The good news is we’re well on our way slowly down. The simple question to ask a homeowner who is considering selling right now is, “How far down do you want to go?”However, that’s not what I want to focus on. I don’t want to focus on the downward forecast of the real estate market. Rather, I want to focus on that steep incline and compare it to the other inclines. Throughout recorded history, the real estate market has generally produced a steady 4% to 6% appreciation per annum. Now applying that standard to today’s market is what I want to point out.Many homeowners are currently in a situation where they are hemming and hawing about whether or not to sell their home. They are also losing valuable time (and money) not putting their home on the market with a top team of agents. However, some are also in a position where they do not have to sell and they’re saying to themselves, “We’ll just wait it out.””Waiting it out” is a relative term that I want to build this entire article around. House prices have dropped on Long Island. So let’s just take one homeowner as an example. We’ll call him Joe. Joe owns a home in Smithtown and bought it for $245,000 in 2000. He put it on the market in January of this year for $689,000 (wow, that’s over 150% appreciation in less than 10 years). In 2005, had he chose to put it on the market then, he probably could have sold it for a reasonable price of $589,000 given the appreciation values (remember the roller coaster).The only problem is, Joe didn’t put it on the market in 2005. He put it on the market in 2007 but assumed the same upward appreciation. Joe thought the roller coaster was still going up when in fact, just before fall of 2005, that roller coaster started to level off and by winter of 2006, began to dip down slightly. Since that time, Joe’s home, like many other Long Island homeowners, has lost “value” in his home. That “value” we call equity (the difference between what is owed on the property and the true market value).So now assuming that by this time in 2007 (December), Joe has taken his lumps (and so has his realtor who overpriced his home in January) and he has realized that his home actually lost value since 2005, what do you think Joe is going to do? What do you think he should do?Aside from hiring me to sell his home, we can’t answer this question. We need more details. Okay, Joe and his family want to move to North Carolina. In fact, they “have to” because they’ve already purchased a new construction home in Lake Norman (not physically in the lake, but the area – wink). Here’s where it’s very important we all pay attention.It’s not the market that causes our troubles; It’s the circumstances we create in our own lives that create most of our troubles. Joe has created his own trouble, not the market. His previous agent didn’t help him by over pricing the home in January when he put it on the market for $689,000, but that’s life (lesson: choose your agent wisely). So Joe “needs” to sell.For those of you homeowners who don’t “need” to sell, don’t. Unless of course you want to and in that case, call me (631)587-1700, ext. 51. Okay, so Joe has to sell. Here’s what he must consider. His home was worth $589,000 in 2005 (that’s what the buying public would have actually paid for his house – market value). All the houses are on the market right now in his area are “listed” for around $549,000. The homeowners who are actually “selling” their properties are accepting somewhere around $519,000 and less. These sold houses on the market for about 195 days (over 6 months) and all started around $569,000 asking price originally.Pause. Okay, we went from $689,000 to $519,0000. Is this a loss of $170,000 in market value for Joe’s home? Of course not. And here’s the kicker. Joe’s home was never worth $689,000. It was worth, at it’s best day, $590,000 in 2005. After 2005, the 30% appreciation stopped. It vanished. And we were left with about a 10% loss in value from January 2006 to March 2007. And here’s where it gets really bad for Joe…poor Joe.Since March of 2007, Joe has lost another 3% to 5% in “value”. So, his home was actually worth, at the height of the market, in his given area in Smithtown, $590,000. We’re going to assume a 14% reduction in value, again what the buying public will pay for homes in his area NOW. This leaves Joe at around $508,000. So Joe, in reality has lost $82,000 in value since 2005.Let’s leave Joe alone for a moment (he needs a break). If you own a home right now and you’re reading this, take what you think your home was worth in 2005 and subtract 14%. Now for all homeowners who don’t “need” to sell their home and are planning on “waiting it out”, let’s look at that roller coaster again. You’ll see that the average incline is steady. Since we just saw the most significant incline in the history of real estate, do you think the roller coaster is going to go right back up?The answer is no. It will eventually start to go back up and we’ll assume the normal ride on the roller coaster. So assuming 5% appreciation, it will take about 3 years to recoup the lost 14% market value of homes throughout Long Island. But wait. And here’s where it gets bad (sorry for the doom ‘n’ gloom)…the market is not leveling off just yet. Long Island homeowners are still losing market values in their homes because buyers are not buying. Not only are they not buying but many can’t buy due to the mortgage difficulties and overall lack of liquidity in the market place (banks just don’t have the money to lend at the same rate they did in 2005 due to investors pulling out large (gigantic) sums of money from the mortgage lending business).So on top of what has already been lost, where do we go from here. Let’s go back to Joe. Right now he could put his home on the market for $520,000 and be $29,000 less than his competition (remember the “listed” homes in the area are on the market now for $549,000). Most realtors, including myself, might think that’s an acceptable asking price to start at with room to come down. In reality, Joe’s optimal price is exactly $508,000 and not a penny more. This price would grab market attention.Homes are sitting on the market now (as of December, 2007) and have been sitting for quite some time. The average listing period for a home in Suffolk County is over 6 months. Does Joe want to sit on the market? No, he wants to sell and be out of his home in 3 months. This is where a good agent comes in and gives Joe nothing but the facts. Joe thought his home was worth $689,000 in January of 2007, only to find out in June of 2007, that his home wasn’t worth anywhere near that amount. And while he spent the last 6 months (July through December) trying to get 2005 prices (he had a $590,000 list price on some for sale by owner website), he has finally realized that he needs two things; A good price and a good agent to market his property.So now for the people who are going to hold on until the market “picks back up”. Five years. That’s it. You’ll have to wait 5 years before you will be able to get a 2005 price for your home. Let me repeat that: 5 years to get 2005 prices. Why? Here’s my personal speculative view: Assuming 12 more months of current declining market conditions, most homeowners will realize another 5% to 8% loss of market values in their homes (a conservative outlook). Again, market value is what the buying public is willing to spend on something – anything, whether it’s a hamburger, a shirt, a purse or a house. Everything that’s for sale has a “market value” (and I’m not even talking about the factors of supply and demand in this article as it pertains to the real estate market conditions).So now remember that 14%. Add…let’s say 6.5% (the blended rate of declining market value – I added 5 + 8 and divided by 2 = 6.5).So 20.5% is the projected total loss of market values for homes on Long Island. Again this is just my personal speculative view. It could be much worse, or it could be much better. That’s why it’s called speculation. But I will prove my point right now.Is it safe to say that a home, where ever it is located, that was selling for $480,000 in January of 2006, is now (December 2007) selling for around $420,000?The answer is yes.So, now minus 6.5% from $420,000. We’re at $390,000. That’s a loss of $90,000 or 19.5%. So I’m one percent off. My point is that this is the reality of home values on Long Island. So in December 2008, we can safely say that all homes throughout Long Island will be about 20% less in price.Assuming a 5% appreciation beginning in winter of 2009, in winter of 2010, homes will be at a 15% loss in market value in comparison to 2005 home values. In winter of 2011, homes will be at a 10% loss in market value in comparison to 2005 home values. In winter 2012, homes will be at a 5% loss in market value in comparison to 2005 home values. And in 2013, homes will be at breakeven from where they were valued at in 2005.This is of course, all speculative. But let’s look at some quotes and statistics that are going to back it up:

“So far, prices have dropped only slightly. But it was enough to cause alarm around the world,” he said. “Prices are going to fall much lower yet.” Alan Greenspan

“What we see in our residential brokerage business is a slowdown everyplace, most dramatically in the formerly hottest markets…We’ve had a real bubble to some degree. I would be surprised if there aren’t some significant downward adjustments, especially in the higher end of the housing market.” Warren Buffet

201 – The number of mortgage lenders that have closed since the mortgage crisis began.
Foreclosure Trends: Nationally, the number of foreclosure filings has risen from 323,101 in the first quarter of 2006 to 345,554 in the fourth quarter of 2006, to a total of 437,498 filings reported in the first quarter of 2007.* – source: Yahoo! Real Estate

Report by realtytrac, the leading online marketplace for foreclosure properties, shows a foreclosure rate of 1 foreclosure filing for every 134 U.S. households for the first half of 2007.

Check this graph at http://www.erealtyonline.net/graphs/eastend_2q07.gif showing the average selling price of homes in eastern suffolk. The graph only covers up to the second quarter (up to June 07). Notice the downward trend for almost every town.
So where does all this leave you, the seller? This depends a great deal on your circumstances. In the world of business, financial transactions are engaged in for expected profits, based on market research and numbers. The residential real estate market is based on people making decisions for their families more so than the almighty dollar. So my suggestion to you is to contact me in order to discuss your options as they pertain to the real estate market. With this information you can decide what is best for your financial situation and more importantly, your family’s future. I can be reached at (631)587-1700, ext. 51.If you take anything from this article, please note that the real estate market has trends. In order to “wait out the market”, you’re looking at a long-term waiting period of at least four years. Please understand this and if you have any questions at all, call me. And please remember that no matter what the circumstances may be, you always have options. Consult a good attorney if you are in financial trouble and please do not make decisions based largely on emotions. Remain calm, call professionals in, get second and third opinions and after getting as much information as possible, then and only then make the most rational decision you can based on information.

The 7 Secrets Of Real Estate Marketing Success – Real Estate Marketing

It looks like every real estate professional on the planet is looking for fresh marketing ideas! At any one time we have a number of ideas and concepts in play to make sure our clients keep the edge in their local area. So I made some notes and want to share some thoughts and ideas with you that you can begin using today to attract more business.I’m continually astounded at the lack of quality marketing produced by our industry to promote real estate services.The amount of money wasted each year must be in the hundreds of millions. I notice Radio, Television, Billboard, Newspaper and Internet ads that cost a fortune but generate little or no response and this is before we consider the dismal quality of most letter drops and marketing cards.Advertising experts all agree that the power of re-stating a message is a whole lot more effective than introducing a new message at every opportunity.Notice how a new ad on TV gets played and replayed until the advertiser is sure we get the message? It’s not ten different ads in ten different spots. Corporations spend millions testing their marketing messages to make sure they work. Why don’t we just save our money and copy the giants by using a consistent response driven message?Here are the 7 Mistakes of Real Estate Marketing
They confuse the target market (I don’t know what they stand for. They just want me to list with them)

They fail (dismally) to create any connection between each message. Each ad carries a different message and the time lapse between messages is too great.

They are mostly without any design element or layout and look dreadful. Too much copy no image.

They have no definable point-of-difference or Unique Selling Proposition that sets them apart from other real estate agents.

They are too ‘busy’ and have obviously never heard of the power of white space and cram not one but two sides of the flyer. White space is our friend not our enemy.

The communication is all about the agent not the target (fatal) Remember our favourite radio station; WIIFM?

They have no call-to-action. They give me no reason to want to call them so they can ‘capture’ my details and begin a relationship.
Let’s consider what MUST happen to boost the effectiveness of communication and get a serious return on our marketing investment.Here are The 7 Secrets of Real Estate Marketing Success(They must be secrets because so few people actually do them!)1. Establish a dynamic point of difference. This is what you stand for and what you believe in. If you were a country it would be your national anthem.2. Repeat your message consistently at every opportunity. (Don’t chop and change) From your office, in your emails, your on-hold message, at your opens, on your webpage. It needs to be compelling and interesting. Create a can’t-say-no offer!3. Develop your personal marketing plan for 12 months (Printing and all advertising is cheaper if you do it bulk)4. Use a call to action at every opportunity so you can…5. Take names. A contact base is currency in real estate. Used correctly, every name on you database is worth hundreds of dollars. This will allow you to…6. Initiate ‘value contact’ with your database so when they think of real estate, they will think of you. This is top-of-mind marketing. We need to give them enough reasons to call us when they’re thinking of selling or know whom to recommend when someone asks. (Referral business is the best business)7. Develop your professional contacts as well and include them in your marketing. (Your local mortgage broker or finance professional probably has hundreds of clients who would benefit from your expertise. Why don’t you look at doing a joint venture promotion?)These 7 ‘Secrets’ actually define relationship marketing. People do business with people they know and like. We need to build a relationship with potential clients before we can expect them to call us.One final word of warning; Putting your logo on everything is not going to help. In fact, I’m convinced it will work against you. It’s not about you. It’s about them! There will be plenty of opportunity to ‘logo up’ with For Sale signs and local paper ads once you have a heap of fresh listings as a result of your dynamic lead generating campaigns.Advertisers love to tell us how we need to constantly promote our brand. They call it ‘brand awareness’ and commit us to expensive advertising by convincing us that it’s the only way to go. (Sound familiar?) Relationship marketing is a whole lot more effective and a fraction of the price which allows individual real estate salespeople as well as real estate companies to build personal marketing profiles with a very affordable investment.As you read these words, there is someone in your target market ready to list their property for sale. Have you given them enough reasons to call you?

Making Use of a Bad Real Estate Market to Build Fortunes – Real Estate Marketing

If you have received the proper training as a real estate investor, you realize there is no such thing as a “bad” real estate market. The real estate market fluctuates cyclically, driven mostly by the laws of supply and demand. As you probably learned in grammar school, supply and demand drive prices and opportunity based on availability and desire, and this is true in most areas of business. Therefore, in the real estate market, when there is a greater supply of real estate than there are buyers demanding it, you have a buyer’s market. When the opposite is true and there are a number of buyers demanding property and few for sale, you have a seller’s market.Unfortunately for the typical self-proclaimed real estate investor, the media drives his or her decisions based on reports that are unfounded and full of sensationalism and hype meant to drive ratings. On the other hand, a real estate investor who has the proper training will ignore what is said on the news, following the trends and using his or her own wits to make important decisions. Of course, the fear that the media can strike into the hearts of the uneducated can easily lead to your profit as a skilled investor.Take, for example, the occurrence of a buyer’s market. What this means to the uninformed is that, because there are too many homes on the market, the value of their property is going to plummet due to a lack of interest. Therefore, in order to get out from under the property before they “lose money”, they will be willing to sell the real estate for what you can offer. This means you can get into some great properties at low prices all because of media hype.Had these individuals received proper training as a real estate investor, they would have realized it would have made more sense to sit on the property and wait for the real estate market to cycle again, creating a seller’s market in which they could have demanded any price they liked for the property or get better trained from qualified sources on how to move properties in a slow market.As a savvy real estate investor, you have several options. You can sit and wait for the next seller’s market, demanding a high price and turning over a large profit on the property, or you can set up the property in a manner that allows you to turn it right back around, even in a buyer’s market, and make a profit. While any real estate investor can come in and buy up properties during a buyer’s market, it is still quite difficult for the average aspiring homeowner to purchase a home, especially since the majority of potential buyers don’t have what it takes to qualify for a traditional mortgage loan. Therefore, you can offer lease purchases and seller financing options on the home, both of which actually draw a higher price for the property than straight financing.Such an option offers a solution to someone who can’t get the help they need elsewhere and allows you to draw income from the property. It’s a win-win situation, one which was created because you made use of what the media felt should be dubbed a “bad” real estate market.

Tips for Successful Real Estate Marketing – Real Estate Marketing

Real Estate Marketing is booming. However, with a rise in the potential real estate investors, the number of Realtors has also escalated. Today, there is a great competition among Real Estate Agents to expand their clientele. This rush has led to the development of many new Real Estate Marketing Strategies. Following are some tips that can help you to succeed in real estate business:Research and the First ImpressionAs you start off, you have to research the market. Know your competitors and study the strategy they use. Also be well informed about every property you include in your listing. The more authentic knowledge you have about the real estate properties, the more trust you can instill in your client. Any marketing is about winning the client’s faith. Once you accomplish this, the rest is a cakewalk.Goodwill Does MatterYou must understand that your client wants to be dealt well, just as any other human being does. Try your best to earn his goodwill. Don’t just consider him to be just another opportunity to grab. Even after he has made the purchase, keep good terms with him, helping him whenever he needs you. It is unlikely that he would buy a new home again in the same city or town, but his friends and relatives may need an agent. If he feels cheated or scorned by you, he will never refer them to you. Be good to your past customers and you can get more business, by their reference. Goodwill is actually one of the major Real Estate Marketing Strategies you stand to gain from.A Smile Costs Nothing But Buys EverythingNo matter how much stress you are in, always sport a lively smile on your face. Try being friendly to everyone; you never know, when a normal chit-chat leads to a business deal. Keep all your worries aside while communicating with your customers. It is hard to do. Success doesn’t come easy!Learn, Learn, LearnWhen devising a strategy, always remember to glance at the past. Learn from your own mistakes. The more you learn from yesterday, the better you make your today. We often make a mistake and realize it later. No problem. It is never too late. Just ensure yourself that you won’t repeat it. Avoiding one mistake may get you a successful deal.Online Real Estate MarketingHaving invaded into almost every sphere of life, the Internet has also ensconced itself in the field of Real Estate Marketing. And the best thing is that, you can continue your offline office as before, along with your website. A real estate website can be a major gateway for clients, a reason for huge numbers of Realtors going for it. A steep rise in the number of online Realtors has also led to an increase in the competition between them. If you want to enter this rat race of online real estate marketing, you must enter fully prepared. The points mentioned above are also applicable when you communicate with the potential clients guided to you by your website. However, there are some other things you have to learn so that you can make the most out of your website. And believe me, it works wonders!

Today’s Real Estate Market – Up or Down? – Real Estate Marketing

One of the most frustrating things a REALTOR has to put up with in the current market is all of the whining, complaining, and smear campaigns preaching the end of the housing market as we know it. Right now, the media is dead set on the idea that our strong real estate market is crashing down around us. As home buyers and sellers are inundated with this negative publicity, they are slowly beginning to believe real estate is in a downhill spiral. The reality is… well, perception is reality, and whatever consumers believe about real estate is likely to have consequences.Currently, the real estate market is an example of how “perception as reality” drives the real estate market. What is specifically frustrating as a REALTOR is that numbers can be made to say anything – while nationally overall sales are down when compared to the past few years, the local real estate market is still going strong. In fact, if you were to leave out the past 4-5 years (which saw increasing gains in real estate sales) and compare 2007 to every prior year, you would see that homeowners are still receiving a pretty high rate or return on their investments. Unfortunately, no one wants to talk about this fact, since the overwhelming amount of negative publicity has convinced people that there’s nothing good about real estate right now. However, in smaller market (Rolla, Missouri for instance), a shift in market conditions is much more gradual, so the highs and lows of real estate are much less extreme.The concept of “curb appeal” also demonstrates how real estate personifies perception as reality. Multiple times, I have been preparing to show a client a house when they were turned off by the outward appearance. Before we even pulled into the driveway, the client told me not to bother stopping. Despite the many hours and countless dollars the homeowner may have spent remodeling the home, the outdated siding or unkempt shrubbery meant the buyer would never see more than the less-than-perfect exterior. If people are unhappy with a home’s curb appeal, their assumption is that the inside of the house must not be to their liking either.Similarly, buyers perceive a home’s cleanliness as vitally important. If clothes and toys litter the floor and dirty dishes are piled in the sink, the potential buyer is likely to assume there are other “hidden” issues with the home. The assumption is that a homeowner who doesn’t take pride in the daily tasks of keeping a house clean, they are probably neglecting the larger issues as well. Buyers aren’t interested in whether or not you were on vacation until late last night or that your 4-year-old has been sick for a week. Instead, buyers believe that the condition of the home is a reflection of the homeowner. Whether or not that is true, in real estate, perception is reality.Now, you’re likely to continue to hear gloom and doom media coverage regarding the national real estate market, but remember that perception is reality. In the Midwest, the sky is not falling; believe it or not, people are still regularly buying and selling homes. Whether the “state of the economy” is on a downswing or an upswing, there will always be plenty of buyers out looking for their dream home – and willing to purchase one! Yes, there will be ups and downs, but it is never as good or as bad as it seems at any given point. While perception may seem like reality in real estate, your perception is not always fact.

The Cyprus Real Estate Market – Real Estate Marketing

On the 12/1/08 Saturday Mr Antonis Loizou has given a lecture at Ayia Napa on behalf of the U.K. Alzheimer’s Society, which was attended by 120 mainly foreign residents in Cyprus. The subject was the Real Estate Market in Cyprus. We provide a shortened version of the speak.Real Estate Investment, be it a house, land income producing property or development, has been so far a “safe” investment in terms of security of capital. Since 1974 prices have been moving upwards at varying rates p.a. Upto the year 2001, prices moved upwards on average 7% – 10% p.a., but since the Cyprus Stock exchange crash, investors interest turned towards real estate. Cyprus’ inclusion to the E.Union, coupled with the most favourable tax system in the E.U. and the Russia-Cyprus double taxation treaty, has caused Cyprus to attract an increasing influx of European and Russian interest, which has helped real estate investment in Cyprus.The lifting of restrictions regarding property purchases by E.U. companies and citizens, has widened the scope of real estate investment and now, it is estimated that foreign buyers in Cyprus real estate contribute around CP700 mil. This is just short of the biggest foreign exchange earner, the Tourist Industry and its CP1.200 bill. p.a. and far ahead from the third biggest foreign currency earner i.e. the offshore companies contribution of around CP350 mil. p.a.This keen foreign demand, coupled with the local interest as well as the added taxation on real estate, such as V.A.T. of 15%, has caused prices to move at a rate between the years 2002 – 2004 of around 15%p.a., whereas the very recent years prices have shot up by almost 20% p.a.This is particularly so regarding building plots and land and more recently towards agricultural land. With prices of development land being so expensive and with the planning laws allowing the development of a single house just about everywhere, the public’s interest has been diverted with an increasing volume towards agricultural land, where prices have shown increases in excess of 30% – 50% over the last year alone.This situation of high development land cost, converts now to around 40% of the total development cost of any house/apartment, whereas a couple of years ago, the land cost on a building sales price amounted to 20% – 22% only. This unhealthy state of affairs will get worse with the introduction of VAT on building land from 1st August, 2008.So, when it will end and more importantly are we heading for a real estate crash? I doubt it. Since so far these substantial increases in property prices, have been absorbed by the public, be it, it has affected the rate of sale mainly for the less competitive projects making in part, the market, rather unpredictable and somewhat uncertain.To this negative picture one must bear also in mind that various positive/balancing measures that are now in hand. The reducing interest rates [as for 1.1.08 from 4.5% this rate it is reduced to 4.0%] and the longer repayment periods of loans that are now offered have helped.The new Central Bank measures regarding own contribution in buying or developing real estate which has increased the original contribution of 20% to 40% [for non own users – permanent residents] is expected to affect the “by to let” market, since returns/fields in Cyprus are very low [around 4% p.a.] and it is one of the lowest in the popular holiday home destinations in Europe, whereas high cost of air tickets etc. makes letting not as easy as in other countries [some balance may be gained when low cost air fair airlines are in full operation in Cyprus].The pending new infrastructure measures such as the pending development of the two airports in the Island, the pending development of the 4 new marinas [expected to come around the year 2012] now under offer, as well as the expected 7-8 new golf courses, will add to the island’s attraction, making Cyprus, perhaps, the most densely area in Europe in terms of golf courses per population. On the other hand if these projects materialise [i.e. golf/marina/Larnaca port projects] they will place in the housing market [mainly directed towards the foreign people] around 10.000 new housing units in addition to the normal number which are now produced [approx. 5.000 p.a.] With the existing demand of around this number [5.000 units] and even considering an increase in demand due to the above infrastructure properties, the supply will surpass demand in the year 2010 -2015 with possible negative affects on the holiday home market prices.Buying / building real estate/homes in Cyprus is easy, since it is the most popular business. At this point of time “Property Development” is carried out by just about everybody independently of qualifications, financial status, honesty etc. For this reason we note an increasing percentage of delays uncompleted projects, projects without a permit etc. and as such, care is needed. For this reason I have prepared for your consideration our firms “10 Building commandments” which every potential real estate buyer should follow as much as possible.Buying in Cyprus is easy, but selling your property is another matter however. One must compete with the aggressive and well connected developers, well organised estate agents [some of which charge in excess of the legal 3% -5% – rates reaching upto 15%] so you must take into account not to be in a particular hurry should you want to sell your property.As I have said before, real estate prices have recently moved upwards at a rate of 20%. This is partly due to the foreign interest which represents approx. 20% of the total real estate acquisition in Cyprus. This is a very high percentage especially where it is concentrated in certain areas. So care is needed since if you chose to invest in such popular areas of foreign people concentration, you stand a higher risk of price adjustments up and down, since foreign people behave differently than the locals whose demand/supply is inelastic.The following table is quite an interesting one illustrating foreign peoples concentration [on a % of the total demand of the area]Pafos Limassol Larnaca Nicosia Famagusta90% 40% 50% 5% 50%What are we going to do with the Russians my dear friends? As this country becomes more stable and as oil prices move upwards so the middle/upper middle income, Russian people will become more and more financially able and to turn their attention to the holiday home destinations. The average sale prices per sq.mt. for this type of property that the Europeans usually buy is in the region of CP1.500 – CP2.500 [max.] per sq.mts., the Russian market with a particular interest for Limassol, has even shown prices of CP4.000 – CP6.000/sq.mt. for beach units.With a mathematical calculation Cyprus beach and even the near the beach locations will be acquired by the foreign market and this is something which one must consider. Foreign buyers demand affects the local population whose income is not competitive to the foreign market and who is gradually outpriced.This will create several problems, whole areas/towns will be inhabited by foreign residents, at periodic visits [see Sotira area west of Ayia Napa] and even the complete take-over of small villages and I dare say towns [see Pafos in 10 years’ time]. Ofcouse I am not against the foreign market and I know that Cyprus cannot go back to the restrictive system on foreigners real estate sale, so it is more of a theoretical approach than otherwise.We live in a global economy and now with the E.U. travelling and settlement abroad will become easier and easier. Cyprus is at a fortunate position regarding the weather, be it with little drinking water, but in closing, I will say that yes, invest in real estate, but take care and do not outstretch yourselves financially. Do not depend on rental income to repay the loan, bearing in mind that you need around 10% of the 12 month income of a residence to cover repairs/void periods and management, in addition to any tax implications, including your tax liability in the event of a resale.For those who are permanent residents however, my advice is try to learn some Greek words or even better, to speak the local language. I know that trying to learn Greek is most difficult [two types of languages, the written proper Greek and the local Cypriot speaking Greek – quite difficult]. If you manage to master part of the language, it will make your life much easier, although I am aware that even when you attempt to practice your Greek language skills, people will quickly reply to you in English.If you manage to speak the language I can assure you it will make your life much easier/happier here.

Luxury Real Estate Marketing – Discovering Your Unique Voice – Part 1 – Real Estate Marketing

There is a Gold Rush Out There!While most luxury real estate marketing professionals are still reeling from the downturn in the market and working harder than ever just to keep up, some are seeing the enormous opportunity that the new era of the internet has to offer and they are starting to reach for the gold ring.  Yes, there is a gold rush out there. But, what may not be obvious is what the new gold looks like and how to find it.To find the gold you first need to discover your unique “golden” voice.The new gold is all about identifying an uncontested niche in your marketplace where you can add extraordinary value; then staking your claim to ownership of that new market space. It is about cashing in on who you are, what you are most passionate about and leveraging the new media tools to reach and connect with your ideal clients in a focused manner.What is the catch?  You need to know who you are, what you stand for, what you are passionate about what you can do better than anyone else in your marketplace.  You need to discover you unique “golden” voice. Only then will the new media tools make any sense to you in terms of their potential to tap the gold reserve that awaits you.  The tools are meaningless otherwise.  Only when you become “follow-worthy” will you attract and retain your audience, and also convert that audience into cash flow.The opportunities for cashing in on your passion and your unique golden voice have never been more abundant than right now because of the new media tools. Be sure to read Part 2 of this series for more details about how to discover your unique voice and how to become follow worthy.

What Are the 5 Worst Performing Real Estate Markets? – Real Estate Marketing

With reports about the worst real estate market situation since the dreaded Great Depression, it is no surprise that both sellers and buyers are scrambling along with real estate agents and brokers to survive. For three straight years the numbers of homes on the market has exceeded the buyers that can afford to buy, especially because of inflated home values. What we are seeing is the pendulum swing in most real estate markets to combat this problem.Though not all real estate markets in the United States are experiencing the dramatic declines, some are definitely showing themselves to worse off than any others.At present, according to the real estate market listing for 2009 from the Housing Predictor, there are five real estate markets in the US that are suffering the greatest and definitely showing the worst performance. Within those markets is not only a downed trend prevalent but the devaluation has reached an all time high.The worst market is found in Detroit, Michigan where average home prices are projected to fall this year by 24.3%. To put that into perspective – your $200K home in Detroit will only be worth around $150K by the end of the year. The second, third, and fourth place goes to California cities. With Riverside and Stockton, California projecting a decline in home values of 23.9% and 23.8% respectively, expect to see local home inventories to rise dramatically. Los Angeles is not far behind at 21.7%. Finally, in fifth place is Miami, Florida at 21.4% average fall in home values.

Real Estate Marketing: Media Options – Real Estate Marketing

You have decided it’s time to sell your home, and hire the real estate agent, you feel, might do, the best job, to meet your personal needs, and necessities. Since, for most of us, the value of their house, is their single – biggest, individual, financial asset, it’s important to pay keen attention, to what each, potential agent, says, and proposes, and choosing your representative, as wisely as possible! One important issue, and consideration, to thoroughly, discuss, in advance. is determining, which media sources, and types, might bring, the most, bang – for – the – buck, and produce the results, you seek, and desire. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 categories. and differentiate between them.1. Print: Some print sources, to be considered, include: newspapers (local, regional, state – wide, and national); magazines (different sizes, distributions, niches, etc); circulars; etc. How will you use these, and, how do these relate, on the cost/ value, scale? Today, real estate marketing, often, depends less on print media, and more on internet marketing, but, for certain properties, in specific areas, the buyers you seek to attract, still focus on print ads. Know your market and your niche, and maximize the bang – for – the – buck!2. Radio and television: These vehicles are probably better, for getting, a greater degree of name recognition, than, in most case, for marketing any particular house. However, obtaining wider recognition, often, makes other forms of advertising and promotion, more effective!3. Websites: A real estate agent’s personal website, as well as his broker’s, should attract qualified, potential buyers, as well as enhance recognition and awareness. They should be used to make a statement, which should be, how you, specifically, differ, in a positive way, from your competition, as well as what your broker’s presence, can do, for your client! Many print vehicles also have a significant presence on the internet, so pay attention, to the possibilities! It is often valuable, to ensure, your listings, are promoted, also, on significant real estate websites, such as Realtor.com, Zillow, Trulia, MLS,com, etc.4. Social Media: Many studies indicate, today, many people use Social Media, for their primary source of information, etc. Real estate agents should effectively use these vehicles, to gain greater attention, to his listings. This should be used, not only to market properties, but to effectively create your personal brand, in a positive, distinctive way. Ask yourself, why should someone, hire me!5. Direct mail: Direct mail marketing, including, especially, using postcards, is often, an effective way to promote and market, a particular house. Unlike ordinary mail, using a card, immediately, gains attention, so, be certain, you focus, on creating a well – created, message!Smart, quality agents, use a combination of methods, and media sources, to maximize the exposure of his listings, to his client’s advantage. Budget properly, and plan accordingly!

Future Of Edmonton Real Estate Market – Is It Good Time To Buy Now? – Real Estate Marketing

Edmonton Real Estate – What is it worth? Is there a future upside potential? When is good time to buy? These are some of the question we maybe asking ourselves.Most of the first home buyers ask if they should buy now and if their home will increase in value in a future. To answer this difficult and profound question we should before ask couple important and relevant to the subject questions: Do you mean immediate future and how immediate? What is better renting or owing a home? In order to understand the first question, we should look at the historical data and try to derive to an intelligent conclusion based on the historical facts. As to renting, I don’t think there is a need to discuss this subject any further.In August of 2010, the cost of an average residential property in Edmonton and area was $325,588. Those who watch the news have heard about current high housing inventory and low number of sales. By comparison, same time last year it would cost you $318,321 to buy real estate in Edmonton. It is still more expensive this year than in 2009. Looking back to 2006, we all have seen a huge jump in prices where Edmonton real estate went up from $199,148 at the beginning of the year to an awesome $303,820 in January of 2007, 52 percent increase just in one year. If you bought a home prior to that date, you have done well for yourselves and your family. On that note, some of the more expensive homes that have been recently sold, are purchased by second home owners due to the equity which they gained from buying a home before 2006 and selling in the last couple of years.The Edmonton real estate market was at its highest point in July of 2007 during which time residential properties have sold on average for $354,718. It has been down since by 8.9 percent.Ten year age, in September of 2000, the cost of an average Edmonton residential property was $122,397. What about 20 years back, 30 or even 40? Well, at the beginning of 1990 it would cost you $94,566 to buy real estate in Edmonton and same time in 1980, $78,914. Looking back even further, in January of 1970 the average price of a residence in Edmonton was $21,806. Whoa, just in those ten years the gain alone would be a whooping 362 percent. In fact, just in the past ten years alone, Edmonton real estate was up 257 percent, in 20 years 317 percent and 30 years 382 percent. Since 1962 till now when comparing January numbers, out of 48 years in total only 10 years have seen a decline in price, thus 38 years have seen an increase in an average residential price. So what gives, why do real estate prices increase in along run? We all know our little economic friend constantly at work called inflation.Conclusion: To all the sceptics out there and “penny pinchers”waiting endlessly for another 2006 to come, It pays off to buy and own a home, not just because we all have to live somewhere but it makes sense from a financial point of view. When should you buy? Does it matter when, today, three, six or twelve months from now. I would say no, it does not. No one has a crystal ball and nobody knows when the next hike or fall down will occur. Instead, we should look at a larger picture when purchasing real estate in Edmonton or anywhere else. Time is a true measure of greatness!All data provided by The REALTORS® Association of Edmonton