2016 STATE OF REAL ESTATE

POTUS - me state of union 2015

My fellow citizens of Connecticut,

As always, I hope this finds you and yours in good times and in good health. Here’s the official 2016 State of Real Estate. I always try and figure out where the real state of Real Estate is and where it is headed. I think it is easier to forecast where a hurricane will land and how bad it will be. There are just so many conflicting articles regarding real estate, it makes one’s head spin. You have to look at facts specific to Ct. While the nation’s economy has recovered somewhat, Ct still has a ways to go. Here, Ct. is not a business friendly state as evidenced by the announcement GE is moving to Mass. Nor is it not tax friendly to the elderly. People are moving to states with no income tax and lower probate fees. Bottom line is more people are moving out of the state than in. It clearly is evident along the shoreline. In 5 years from Jul 1, 2009 to Jul 1, 2014 Guilford’s population decreased by 56, Clinton’s by 480 and Madison’s by 565. What does that mean for the real estate industry? Simple supply and demand. Less people, less demand.
So… On the supply side. Using Guilford as an example, I have always said there is parity between buyers and sellers when there are about 175 listings on the market during the height of the spring market. In June 2014 there were 340 listings on the market, in 2015 there were 306. This is a good sign but progress is very slow. Obviously sales were up but please know prices were down. What do we do now coach? First, no time for a pity party! While there are a few exceptions, the market has overall been in a price decline now for 8 years. So, first, we have to be honest with sellers about market conditions and pricing. So many houses are on the market for a long time, many with their second and third Realtor. After 37 years I am saddened to think that a lot of agents rely too much on technology to sell homes. Hey, they did not invent the internet that 90% of buyers use. Sure, we ALL use the modern technology to draw clients to us, but in this market you have to have an old fashioned work ethic. Advice for some of my fellow agents to sell their listings. you have to work harder. Don’t use lock boxes. Get out there, personally show the properties to put it in the best condition, i.e. lights, drapes. Have all the information buyers want and need to make a decision. Provide security for your listings. Be at the appraisal with plenty of comps available. Be at the inspection to prevent problems and be in a better position to solve them if they arise. Monitor all deadlines to insure the transaction is moving smoothly. These basic tips would go a long way.
On the buyers/demand side. Easy. While it is gradually getting better for sellers, there is still a large inventory for you to choose from. If you want a good deal (and who doesn’t?). buy with your head and not just your heart. Get a full document approval before you buy, not just a “prequalification”. Giving the seller the comfort of knowing they are dealing with one who can financially perform will result in a lower price for you. Get current inre the buying process before you start looking. Depending on when you bought things could be a little or a whole lot different now. For example, inspections are far more in depth than ever. Laws have changed. If you have to sell in order to buy, be careful! Let’s talk!
Either scenario, you need to have realistic expectations. Check out our web site. It is easy to negotiate, chock full of great information and some fun stuff. Check it out at Sunset-Creek.com. and meet the team. We have 8 agents with a combined 130 years of experience. Meet the most popular member of the team! Also, if anyone on the team represents you in the purchase or sale of a property, we will give you a $500 credit at Sunset Storage.
As I enter into my 36th year in the real estate business, every once in a while I think about retiring. I think about it for a millisecond before I discard the notion. I truly enjoy what I do. I enjoy the confidence people place in me when dealing with the largest financial investment they will make. I revel in the success of helping people find the dream home, selling for very good prices or sometimes helping them when they are “under water”. My Grandfather had an old sign at his business that said “Seek customers rather than sales and you will gain both”. Good words of advice for any business man. Build relationships of trust. At this point, I have done this over 800 times. So, I plan on being around, enjoying what I do for a long time. We WILL always will treat people right – we are here for the long run. Give us a call for anything, FREE advice, contractor recommendation, or just stop by for a cup of coffee.

God Bless America.

Allen B. Jacobs, GRI, Broker, Owner
203-453-2145

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