A couple days ago I happened to be reading an article in the Atlanta Journal regarding the market in Panama City. There was a quote from Janet Roan, a local (PC, not Atl) real estate agent - "Now is the time to buy. It's a buyer's market." But she says, "If you are looking to buy something to flip it, don't even try it right now."
The catch? That article was from April 16, 2006.
There was another guy who had put contracts on 3 units in Panama City towers, pre-construction, each in the low 200k range. The article says the prices had tripled and then fell back but were still above his contract price. He said at the time he still expected to be able to sell at a comfortable profit although they were not yet completed. He was worried at the time that they may be overdeveloping the Panama City Beach area.
I'd like to see the AJC or some other organization do some follow up stories and talk to some of the same people interviewed previously. What does that agent think now? Did that guy close on his 3 properties and sell them or did he walk from his deposits? Is he stuck in 3 condos, eating a monthly mortgage while taking in some little bit of rent?
Replies
388
Beach Fanatic
Based on what I see in the NRA reports, our local realtor reports, and the vast majority of listings, I'm not entirely sure such a thing exists. My suggestion to any prospective buyer would be - make your own decisions, do your own due diligence, don't trust anyone, and offer what you feel the property is really worth.
I'm mean really, not to be a jerk, but come on, realtors have a vested interest in convincing buyers to pay the maximum amount for a property. It's in their best interests. Why should I trust these people, especially in a down market when times are tough?
If you mean not to be be a jerk, why are you being one?
SoWal Insider
If you mean not to be be a jerk, why are you being one?
Sorry I'm ranting. My apologies.
Beach Fanatic
Ok, but how many realtors' clients who bought in 2005 feel 'happy' today? Come on seagrovegirl, we all know they sell to whoever is willing to pay whatever price. There are no ethics in real estate.
I should point out, I don't blame the Realtors. But trust Realtorsis something you gain by doing right by someone. I don't see a lot of evidence of that in the real estate markets of the recent past. If I did, I'd be less jaded, but I don't. There are a lot of people out there who are totally screwed. Realtor's didn't make the ultimate decision, but they stood by while the purchase was made.
Do you truly think agents just stood by knowing the bottom was going to fall out? I would apply to your "conspiracy theory" if many agents weren't experiencing the same problems as their clients.
Beach Fanatic
If Realtors had a crystal ball our clients would be very happy....but unfortunately we don't. I advised my customers and clients honestly and truthfully, and I bought several properties myself in 2005. IMO, most Realtors do not encourage higher prices just to get a few extra dollars in their pocket. We encourage a medium between the buyer and the seller to make both parties happy....making a deal work and following through with it. I agree, there are some unhappy buyers out there stuck in a mess and I disagree that a Realtor "over sold" a property to line their pockets and intentionally put their client on the road to ruin.
SoWal Insider
I would apply to your "conspiracy theory" if many agents weren't experiencing the same problems as their clients.
That's a good point.
Beach Fanatic
Sorry I'm ranting. My apologies.
It's all good.
Beach Lover
The buyer can look to the realtor for advice and guidance, but in the end it is their ultimate decision as to what,when, and how much to buy. They have to live with the decision they made and cannot look back and blame their relator. Like anything you need to research, research, and then research some more, and then ask advice from your realtor.
SoWal Insider
Who would you ask? Just curious... A baker? A bartender? Actually, all good people to ask... Get a lot of information from everyone and get a good honest agent to help you make some descisions. I think if you are buying to flip in a couple years not so good. If you are looking to hold and enjoy for years to come, great time to buy! Or you can wait until the bottom bell rings and come running with everyone else. Lord knows good investing is when "everyone" is doing it.;-)
Only the buyer could honestly answer the question, "Is now a great time to buy?" They should know if they can comfortably afford the property; they should know what contingencies they've got in place if the market or their finances turn; they should know if they love the area; they should know if they like the property and location. If they don't know--then "now," or any time, is not a good time to buy.
The buyer should also clearly understand that Realtors have no fiduciary responsibility toward their clients and that with Realtors, as with all commissioned salespeople, "now" is always a great time to buy.
Until RE brokers are required to have Series 7 licenses, "now" will always be a great time buy.
.
Edited
Beach Lover
how would a series 7 change anything?
when was the last time your broker told you it wasn't a good time to invest in stocks / bonds / whatever the security flavor of the day is?
when was the last time your broker told you it wasn't a good time to invest in stocks / bonds / whatever the security flavor of the day is?
SoWal Insider
how would a series 7 change anything?
when was the last time your broker told you it wasn't a good time to invest in stocks / bonds / whatever the security flavor of the day is?
The same situation. However there are a number of brokerages that now have fee based service, where the broker isn't paid a commission on every sale. I have one of those and I like it a lot. Maybe real estate need to find new methods of selling their services similar to this.
SoWal Insider
how would a series 7 change anything?
when was the last time your broker told you it wasn't a good time to invest in stocks / bonds / whatever the security flavor of the day is?
(1) A stock broker has considerably more asset classes to sell, so they have a better chance at being right...unlike a Realtor or an Insurance Salesman who have to push a single product line.
(2) No denying that there certainly are a considerable number weasels who carry Series 7 licenses
(3) Unlike Realtors or Insurance Salesmen you have legal recourse against a Series 7 holder who violates their fiduciary responsibilities.
(4) If you totally rely on any of these commissioned salesmen to be working purely in your financial interests--you're screwed.
.
Edited
Beach Lover
i agree 1,000% with #4
Beach Fanatic
Only the buyer could honestly answer the question, "Is now a great time to buy?" They should know if they can comfortably afford the property; they should know what contingencies they've got in place if the market or their finances turn; they should know if they love the area; they should know if they like the property and location. If they don't know--then "now," or any time, is not a good time to buy.
The buyer should also clearly understand that Realtors have no fiduciary responsibility toward their clients and that with Realtors, as with all commissioned salespeople, "now" is always a great time to buy.
Until RE brokers are required to have Series 7 licenses, "now" will always be a great time buy.
.
Shelly,
How long have you had your Series 7 license?
SoWal Insider
Shelly,
How long have you had your Series 7 license?
Maybe a more relevant question might be, "Are you a weasel?"
.Edited
Beach Lover
The PCB market over the last few years has crashed much harder than South Walton. If you have not looked at what things are actually selling for (not the asking prices) you may be amazed. Especially compared to prices in your area.
I subscribe to a site that tracks sales prices of condos in PCB. They have just updated their site with sales into May. I have contacted them to see if I can post some of their graphs on this board.
For what I personally consider a nice condo (as described in an earlier post), the low fruit continues to be picked off and the prices are trending up.
Even more interesting are what I consider the new but lower end condo buildings. They are going for prices that could cashflow off the summer rentals. If you are an end user and are willing to rent it out in the high season you could have the rest of the year for free.
A few months does not make a sustained trend. Prices could drop again in the fall as buying now gives you the summer rentals which is like getting a 5-10% buyer's rebate. But for now there is a definite trend.
Hopefully I can put the graphs up with some actual numbers,
JMHO,
Flyguy
I subscribe to a site that tracks sales prices of condos in PCB. They have just updated their site with sales into May. I have contacted them to see if I can post some of their graphs on this board.
For what I personally consider a nice condo (as described in an earlier post), the low fruit continues to be picked off and the prices are trending up.
Even more interesting are what I consider the new but lower end condo buildings. They are going for prices that could cashflow off the summer rentals. If you are an end user and are willing to rent it out in the high season you could have the rest of the year for free.
A few months does not make a sustained trend. Prices could drop again in the fall as buying now gives you the summer rentals which is like getting a 5-10% buyer's rebate. But for now there is a definite trend.
Hopefully I can put the graphs up with some actual numbers,
JMHO,
Flyguy
Beach Lover
My new mantra is by Warrren Buffett (who I hear has done okay for himself): Be fearful when others are greedy, and be greedy when others are fearful.
That is a good one, I will add that to my collection. Maybe he was channeling to me when I decided not to buy a condo in 2004. Or maybe he is channeling to me now.
Flyguy
Edited
Beach Fanatic
My favorite Warren Buffett quote: ?When you combine ignorance and borrowed money, the consequences can get interesting.?
Especially as it applies to governments. . .
Beach Lover
The points you make about the commissions aren't lost on the clients--I think the holy grail 6% commission will be history very shortly.
If you are a seller in this market, you have not done your homework if you are paying a 6% commission.
JMHO
Flyguy
Beach Fanatic
(1) A stock broker has considerably more asset classes to sell, so they have a better chance at being right...unlike a Realtor or an Insurance Salesman who have to push a single product line.
(2) No denying that there certainly are a considerable number weasels who carry Series 7 licenses
(3) Unlike Realtors or Insurance Salesmen you have legal recourse against a Series 7 holder who violates their fiduciary responsibilities.
(4) If you totally rely on any of these commissioned salesmen to be working purely in your financial interests--you're screwed.
.
I don't follow the logic on 1. 2 seems a bit subjective. 3 is wrong and by extension, so is 4. Real estate brokers can establish fiduciary relationships with clients. You really should avoid dispensing legal advice - you suck at it.
SoWal Insider
You really should avoid dispensing legal advice - you suck at it.
Then one could conclude that people who rely on message boards for their legal advice are suckers.
.
Edited
Beach FanaticAuthor
According to Barbara Corcoran, Today Show's real estate 'expert', now is a great time to buy. But so was last month and the month before that.....
I think she said something this morning like 'we may not be at the bottom but we are in the bottom' while never mentioning any specific areas, states, or cities.
I think she said something this morning like 'we may not be at the bottom but we are in the bottom' while never mentioning any specific areas, states, or cities.
Beach Fanatic
SoWal Insider
According to Barbara Corcoran, Today Show's real estate 'expert', now is a great time to buy. But so was last month and the month before that.....
....she's been saying that since she got her Realtor's license.
.
SoWal Insider
Even more interesting are what I consider the new but lower end condo buildings. They are going for prices that could cashflow off the summer rentals. If you are an end user and are willing to rent it out in the high season you could have the rest of the year for free.
FG,
Can you post a few examples?
.
Beach Fanatic
Maybe a more relevant question might be, "Are you a weasel?"
I have been an open book on these boards. Makes me wonder who the weasel is...
Checking your forum account
Please wait while we verify your forum account.