Blog
How to get Results?
I had some free time on my hands between our two early February Blizzards, so for kicks and giggles, I pulled up all of the single family homes in Longport, Margate, and Ventnor that are currently on the market. I was surprised to see there were only 426 homes for sale with the least expensive being $125,000 and the most expensive being $20,000,000 which is located in Longport. The average house to be listed seemed a little high at $1,096,000, but the median price seemed a little bit more reasonable at $699,000.
Next, I did the exact same thing for the sold properties over the past 12 months. We, as in all of the realtors, sold 275 single family homes with the least expensive at $90,000 and the most expensive, at $6,000,000 which was an oceanfront in Longport. The average sold price was $618,000 and the median sold price was $440,000. More importantly are the average list price or asking price and median list price or asking price of the properties that were actually lucky enough to sell, were $705,000 for the average list price and $489,000 for the median list price.
If you compare these two sets of numbers you can make some obvious conclusions. Currently we have about a year and a half worth of inventory on the market provided we continue to sell homes at the same rate as last year, which in a worst case scenario seems to be a given. This 18 months surplus of inventory is much less than other cities. Homes in more desirable areas such as Saint Leonard Tract, Parkway, South Side, and Beachblock are selling more briskly.
Next, given the huge discrepancy from asking price of the active listings and selling price of the sold listings leads me to believe that approximately 75% of the homes listed currently are at least 30% over priced. Additionally, the homes that were lucky enough to sell over the past year, sold within approximately 10% of their listing price. Basically, the sellers that had their homes listed properly were the ones that got the most activity and achieved the results they were looking for. Getting their property sold.
Lastly, we had buyers who were lucky enough to achieve their goals as well, which was buying the right property at an acceptable price. These savvy buyers who were able to take advantage in a slight down turn in our market were making shrewd purchase decisions based on in depth intimate insight on who the most serious sellers were, which properties were priced to sell, the idiosyncrasies of particular neighborhoods, detailed property searches, and clever negotiations. I tell my buyers all the time we try to give you as much information as much as we can, both the pros and the cons, both the ups and the downs in order to put you in the best position as possible to make the best purchase decision available.
See you around the block!
Donald ‘DJ’ Gluck
Broker/Owner
Ph 609-487-8000
Cell 609-214-1266
Email: dj.gluck@sothebysrealty.com
Lastly, we had buyers who were lucky enough to achieve their goals as well, which was buying the right property at an acceptable price. These savvy buyers who were able to take advantage in a slight down turn in our market were making shrewd purchase decisions based on in depth intimate insight on who the most serious sellers were, which properties were priced to sell, the idiosyncrasies of particular neighborhoods, detailed property searches, and clever negotiations. I tell my buyers all the time we try to give you as much information as much as we can, both the pros and the cons, both the ups and the downs in order to put you in the best position as possible to make the best purchase decision available.
See you around the block!
Donald ‘DJ’ Gluck
Broker/Owner
Ph 609-487-8000
Cell 609-214-1266
Email: dj.gluck@sothebysrealty.com
Want it Sold? Price it right!
With the recent change in the housing market, where real estate prices had become overinflated, the best informed move for a “real” seller is to price your property correctly from the start. Do not fall into the misguided mindset that people will “make an offer”. Many realtors will take listings no matter what the seller says, they agree with the owner, knowing full well it will never sell at that price, or even close.
Over pricing a property can result in very few showings or none at all. The “buyers” today are more knowledgeable than in years past. They have access to information on the internet, whether correct or not they are sticklers for a fair deal, or dare I say, a bargain. The realtor that accepts an over priced listing will no doubt come back to seller and ask for a price reduction, probably more than once. A realtor who does their homework, is honest, and savvy about their market, will stress the importance of pricing a property correctly from the beginning.
Too many realtors take on too many overpriced listings. In actuality these realtors get a very low percentage of their listings sold. As shocking as it is, in some cases less than 10%. Sellers should consider these facts, even if it means not realizing the profit one had hoped for. In reality today’s buyers are only willing to pay market value. A sold property is better than an overpriced one just sitting there. After all, if you sell your home sooner, even for less, it is money in your pocket, not money being spent to up keep the home. Technically, you win. Also, if the house is overpriced, you just may be missing your perfect buyer, the buyer that is ready, willing and able, but also smart enough to know what they can afford.
This year marks my 50th year in Margate, a great place to live and work and remember “real estate is local”.
Please feel free to contact me at anytime with any questions.
Charlene Polakoff
Realtor Associate
Ph: 609-487-8000
Cell: 609-432-4017
Charlene.polakoff@sothebysrealty.com
"A CONUNDRUM INSIDE A RIDDLE, FROM BAD COMES GOOD"
Historically low interest rates, the bulls running wild on Wall Street, real estate prices down approximately 30% on a national level, and the fact the worst is behind us; all have contributed to placing luxury home buyers in a favorable position provided their able to connect with serious sellers. The most serious sellers are those that have to sell for many different reasons. Even in the most high end of markets, for instance Margate, New Jersey, the data suggests prices are stabilizing and units sold are trending upward. In Margate foreclosures, deeds in lieu, and short sales are far and few between. To spite this fact, there are still some rare opportunities to capitalize on. Buyers can still capitalize on some rare opportunities. One prime example of this is a listing with Soleil Sotheby’s International Realty on 500 North Union Ave, Margate. This house is located on an over sized lot in Margates premiere Parkway neighborhood directly positioned on the open bay with panoramic views and multiple boat slips. The property appraised in excess of $2,000,000 less than 24 months ago. The current debt on the property is $1,200,000. The serious seller is willing to entertain any reasonable offers.
For more information please contact Troy Rosenzweig. 609-209-4495 or troy.rosenzweig@sothebysrealty.com
"Artfully Uniting Extraordinary Lives with Extraordinary People"
Don "DJ" Gluck
Broker / Owner
Ph: 609-214-1266
Email: dj.gluck@sothebysrealty.com
Margate Residential Real Estate – Where are we now?
If anyone were to ask 100 folks “How’s the real estate market in Margate?” my guess is you would probably get 100 different answers. That’s probably because everybody has their own opinion and it is an open ended question with many different interpretations.
Whenever I am asked a question like this, I like to support my answer with precise analytical data. Here are a few facts that most people probably don’t know. Across the Country, in Florida, Vegas, Arizona, and other shore points such as Ocean City, NJ the market had started to decline between 2005-2006. Margate residential real estate has remained pretty steady through the middle of 2008. Margate real estate had its first significant down turn from the 4th quarter of 2008 through the end of the 2nd quarter of 2009. Over the course of the summer Margate real estate has had a robust recovery from the previous three quarters and the sellers, as well as your local real estate agents, are hoping we can carry this momentum through the winter of 2009 and into the spring and summer of 2010.
Year Units Sold Median Sales Price Average Sales Price Average Sales Price for sales under $3m
Nov 1 2005 – 2006 143 $600,000 $820,000 $722,000
Nov 1 2006 – 2007 152 $525,000 $764,000 $697,000
Nov 1 2007 - 2008 144 $675,000 $781,000 $764,000
Nov 1 2008 - 2009 124 $472,000 $599,000 $599,000
For the most part we, as in all of the realtors on the Island, sell about 140 plus homes per year. Last year as already discussed we had a few slow quarters and we only sold 124 homes. The average sold price and median price dropped a little more drastically about 20% from the high depending on what set of numbers you are looking at. With that being said we are selling a few less homes and buyers are the beneficiaries.
I took a quick look at what’s happened so far in the past 12 months as well as how many homes we have sold in the month of October 2006 through 2009. In October of 2006 we, the realtors, sold 8 homes, in October 2007 we sold 11, in October 2008 we sold 7, and in October 2009 we sold 14. Average sold price and units sold is up since the beginning of the year and our supply of inventory is down.
The long and short of it is, it seems like our real estate market is getting stronger and buyers who are willing to make purchase decisions are being rewarded. Serious sellers still have to be proactive with their pricing which will lead to additional sales.
Hope you found this information enlightening and helpful whether you maybe a buyer, seller or waiting on the sidelines.
Good luck to all and happy house hunting. See you around the block.
DJ Gluck