As of April 11, 2024, Margate had 47 homes on the market. 34% of those Margate properties had a price reduction.
DownbeachBUZZ Real Estate webcast, April 11, 2024. Covering news & info from Ventnor, Margate, Longport, Brigantine and Lower Chelsea.
Topics covered:
Art or science? How does a Realtor determine what price tag to put on a home for sale?
Some Realtors quote dramatically different (much higher) prices. They’re quoting a high price to win the seller’s business. Some consider this unethical.
Do not over price your home.
Your home sits on the market longer. You still have all those carrying costs too. You soon have to reduce the price. All costs considered, you ultimately could end up selling it for less.
Properties priced too high get a stigma, even in a low inventory, hot market.
If you price it at market value or just below, you’re going to get much more interest. More potential buyers will look at your home. A little bit below market value actually generates a whole lot more interest, more showings, and competitive activity.
Psychologically, if you’re ready to sell your place, you hopefully have 3 Realtors come in. You’re going to interview all three because you’re going to spend the next 60 to 90 days with this person. You better like them. You better trust them. You better think that they’re reading all the fine print. Will they make sure you’re aware of any potential landmines that could come up?
The psychology of picking somebody based on their promise to get you $50,000 more than the other Realtor. That’s dangerous. A lot of sellers fall into that trap.
Properties priced too high attract fewer buyers, fewer showings, and fewer offers.
Downbeach Short-Term Rental Hell.
Up to 500 short term rentals could get dumped on the seashore market as STR entrepreneurs say ‘I’m done with this.’ STR legal issues changing zoning law. Can’t run a commercial business in a residential neighborhood. What happens when another 50 homes are dumped on the market from Airbnb? It could depress prices.
Margate has a seven night rental minimum. Exact # of STR’s not publicly known. Spotty enforcement.
Ventnor has a 3 night rental minimum with little or no enforcement. Ventnor has more problems with party nights, crime and lack of enforcement.
Atlantic City has over 1,000 short-term rentals. They have no restrictions or STR regulations. You can rent one night or one hour. CRDA plays role with STR’s located within the ‘tourism district’.
Brigantine, currently in litigation over STR’s are also very lax with a poorly enforced, 2 night rental minimum.
Why are Real Estate agents quiet about this direct threat to their livelihood? Some STR properties could be transacted back and forth when put back on the market.
Short-term rental market is over-saturated along the shore. A race to the bottom to fill those properties.
Few towns check if STR’s have proper commercial insurance or are operating using commercial mortgage.
Lack of long-term rentals chase away families and local employees. Shore towns are bustling during those 15 summer weekends, but die in the off season. Year round population declining a faster clip.
Seller’s Agent Monkey Business
Let’s say I’m a cash buyer and I pay a specific buyer’s agent to represent me on a specific house. The listing agent does not answer the phone. They don’t answer emails or snail mail. Why is that? He wants both sides of the commission. Later, I learned that the house sold for less than what I was willing to offer. Now what happens? The seller got less money and possibly more problems. The listing agent, representing the seller, got a much bigger commission, getting both sides of the commission, the buyer and seller commission and the qualified interested buyer and the buyers agent. They lost both time and money. So now what? Can I tell the seller that I was willing to offer more, but the listing agent was hiding? I smell a lawsuit here. I find out later that the property sold for a lot less than my formal cash offer. Go figure.
Sherri Lilienfeld: When I submit buyer offers, there’s a form the seller is supposed to sign that acknowledges they saw your offer and why they’re rejecting it. I get many excuses as to why that form can’t be filled out. ‘We don’t have to sign your paperwork’. These excuses make you wonder. It’s highly recommended that the consumer files a complaint with the New Jersey Real Estate Commission or the local RE board.
Consumer should keep close tabs on those who represent them in a Real Estate transaction.
Dangers of Dual Agent
NAR lawsuit could get rid of dual agent, where a realtor gets double the commission. Dual agents, dual agency can control offers in order to get both sides of the deal.
The New Jersey Real Estate Commission is looking to get rid of controversial dual agent or dual agency
DOJ, Department of Justice reopened case or threatening to do so. Goal is to provide more transparency about commissions, pricing and control of housing inventory.
The DOJ woke up maybe because prices became so huge and commissions much larger too?
The MLS, multiple listing service facing more scrutiny. Who owns the MLS? It’s NAR. National Association of Realtors. Who owns the listing? The seller? Actually, it’s the listing broker who has the control.
Your job as the fiduciary is to get the best possible deal for the seller. Your job is to make the seller happy. Buyer is a secondary concern.
Downbeach Real Estate Disruption
Real Estate. One of the last industries to be disrupted, after cars, journalism, music, shopping, etc. Real Estate desperately holding onto traditional ways of doing business. Control everything.
DownbeachBUZZ Webcast powered by Sherri Lilienfeld from EXP Realty, Paul Zgalich of Guaranteed Rate Mortgages, C & S Custom Builder and EnergySSI, HVAC.