South Florida Real Estate and Community News

June 13, 2017

Key Considerations When Selling a Rental Property

Key Considerations When Selling a Rental Property

The strong real estate market conditions here in South Florida could mean that it's a great time for you to cash out of a rental property.

While this can often be a complex decision, today I'd like to address a couple of common key considerations.

Tax efficiency is always a concern where capital gains are likely. However, for those investors who are selling rental property as a means of, say, buying a more attractive or larger property, the 1031 Exchange is a really great option.

A 1031 Exchange enables investors to take money that would otherwise go towards taxes and use it to make more money. It recognizes that you are selling an investment property and using the money to pay for another property intended to be used as an investment.

As you would expect, there are plenty of rules governing what's eligible in a 1031 Exchange, including some flexibility in terms of what can be classed as business property. For instance, you can even include a vacation home if it's only used by you for two weeks out of the year or for less than 10% of the time it's been rented for.

Inevitably, you need to talk to an expert to make the most of this opportunity and we have excellent contacts with experts in this field that we can put you in touch with.

Another concern for landlords can be how to handle the impending sale with existing tenants. Clearly there will be contractual obligations, but effective communication is absolutely key.

It's sometimes feasible to negotiate the sale of the property to a new investor who will be happy to have existing tenants and to honor the terms of a still active lease agreement.

Most of the time however, it's more straightforward to give your tenant the legally required notice to vacate. If a very fast sale is essential, it is not uncommon for tenants to be paid to leave early. Again all a balance of your individual circumstances and needs.

It also makes a lot of sense to put the property on the market 90 days before the lease is up so that the unit is not unoccupied for an extended period of time.

I hope that the above is of help to you and I would be delighted to answer any other specific questions you have if you're exploring the possibility of selling rental property.

Please don't hesitate to contact me
.

Kind regards
Aaron Novello

May 26, 2017

Should I Relist with the Same Agent?

News from The Novello Group - Should I Relist with the Same Agent?

 

Should I Relist
with the Same Agent?



There's no doubt that the current South Florida real estate market is doing really well at the moment.

So why, then, do some homes still remain unsold?

While there can be many reasons behind this failure, unfortunately we've observed that an all too common one is a lack of effort by the appointed listing agent. If you're listing is soon to expire with your current agent, with no sign of an offer, you owe it to yourself to consider whether he/she has earned your loyalty for another few months.

Ideally, you should meet with your agent and carefully examine why the home hasn't yet found a buyer.

Apart from any considerations to do with the presentation of the home, the discussion should also include a thorough breakdown by your agent of exactly what has been done to market the property.

Has, for example, the agent been selling your home on a daily basis by prospecting with existing clients and their contacts and keeping in touch with the area's top buyer's agents? Is the latest technology being used to ensure that your property is available for viewing across multiple platforms online and across multiple devices? Is there a proven track record that can demonstrate the effectiveness of marketing efforts?

No matter what you're told, a tell-tale sign of inactivity on your behalf is if the home has attracted very few showings or no offers.

And if you don't know already, don't be afraid to ask the agent the direct question as to whether he/she is working full-time in real estate, or if there are other calls on his/her time. In spite of the buoyancy of the current market, it still requires a great deal of effort to attract viewings from qualified buyers and achieve the best return in the shortest timeframe.

Selling a home is a business decision and as such it always makes sense to get more than one opinion to get an alternative view of what needs to be changed in order to get what you want in the time you want. Naturally we hope you will include us in that process, so you can discover how we consistently sell a home every 72 hours and have ranked among the REAL TRENDS Top 1000 agents nationally for the past three years.

Please don't hesitate to contact us today.

Kind regards
Aaron Novello



The Novello Group Sold 16 Homes This Month!
Here are some of the highlights:

770 NE 70th ST
SOLD $430,000

14704 Via Tivoli Court
SOLD $419,900

33 Glens Dr West
SOLD $215,000

410 Golden Isles Blvd
SOLD $210,000

1850 S. Ocean Blvd
SOLD $205,000

6650 Perry St
SOLD $185,000

2910 Point East Dr
SOLD $159,900

215 SW 7th ST
SOLD $141,500

10422 NW 24 PL
SOLD $140,000

1401 SW 134th Way
SOLD $115,000

2226 N. Cypress Bend
SOLD $114,000

6661 NW 25th ST
SOLD $95,000

The average Realtor sells less than one home each month. There is a method to working in this market and a reason for the success of Aaron and his clients. Contact us today to find out more!

 

 

Latest South Florida
MLS Stats:


Single Family Homes
Active:17,987
Pending: 3,001 (past 30 days)
Closed: 3,958 (past 30 days)
Days on Market: 172
Months of Inventory: 4.54


Condo
Active: 29,963
Pending: 3,106 (past 30 days)
Closed: 4,042 (past 30 days)
Days on Market: 187

Months of Inventory: 7.41

Contact Us

Aaron Novello
The Novello Group
Keller Williams Realty
FL
954-626-8768
Fax: 954-809-3003
Send an Email

www.soldinsouthflorida.com

 

Follow us online
Follow us on Facebook

From Our Listings

3140 S. Ocean Blvd #107N $670,000

10761 NW 5th ST $512,000


19380 Collins Ave $499,000


" Aaron and his team take care of clients like no other. As a lender, when you work with a group of realtors that care about their clients the way they do, it really makes a huge difference. I would definitely recommend working with this group of hard working, caring, honest, and ethical realtors. This group is second to none."

- Daniel Tokar

 

Aaron Novello
The Novello Group
Keller Williams Realty, FL

May 12, 2017

Why All Home Valuations Aren't Equal

 

I'd be very surprised if at some time you hadn't looked to see your home's value on one of the well-known generic home pricing sites.

These sites are great fun and they can at least provide a very, very rough idea of what your home might be worth.

But they most certainly are not accurate.

The fun of getting a home evaluation in this way can lead to unrealistic expectations and ultimately disappointment when sellers come to the realization that the price they were given online was not realistic.

If you look carefully at the definition of the value online sites provide you for your property, you will see based on geographic location, they can be off by as much as 10%.

So why are these home valuations unreliable?

Each site has its own calculation method. There is therefore no consistency to the methodology and also no account taken of current market trends, or actual condition of the property or modifications that have been done.

Ultimately, getting a home valuation in this way is simply not an accurate measure of your home's true worth. To obtain that, you need to engage with a highly experienced agent who will know exactly what is happening in the property's market sector, not only in terms of very recent sold prices, but current buyer trends. When these factors are taken into account in combination with an in-person walk through of the home, the result is an assessment of value that is much more precise.

If you would like to get an accurate assessment of your home's worth, please let us know.

Kind regards
Aaron Novello

April 6, 2017

What's Happening to Mortgage Rates?

News from The Novello Group - What's Happening to Mortgage Rates?

What's Happening to
Mortgage Rates?


One of the most frequent questions I'm being asked by clients at the moment is what is going to happen next to mortgage rates?

Following a steady, though hardly dramatic, increase in rates since around the time of the election last November, they've made a slight downturn very recently, which is making people very curious as to what will happen next?

In truth, no one has the answer.

What can be said, however, is that buyer sentiment hasn't been at all affected by the recent rate increases. Rates averaged 4.17% for a 30 year fixed rate home loan last month, simultaneous with the highest single month pending home sales data for 11 months!

We've seen the greatest drop in rates for months following some nervousness in stock markets of late. There appear to be concerns that projected economic growth strategies aren't going to happen as fast as was initially anticipated.

As a consequence of increased risk aversion, there's been a stronger trend for investors to retreat back to safe haven investments such as bonds. And because bonds have a very direct effect on the fortunes of mortgage rates, their regained popularity has caused the falls we've seen of late.

My advice to homebuyers would be to deal in the "now" and recognize that we still have very low rates by any historical measure and not to expect the very, very low rates that we experienced for most of last year to come back. The rise in rates since the election can rightly be seen as a long overdue market correction.

As always, don't hesitate contact us today for any 
advice you need related to real estate.

Kind regards
Aaron Novello

The Novello Group Sold 17 Properties This Month!
Here are some of the highlights:


4750 NW 112 Drive
SOLD $409,000

4404 NW 67th Way
SOLD $360,000

1250 S. Miami Ave
SOLD $342,500

660 NE 39th ST
SOLD $300,000

4421 NW 3rd ST
SOLD $265,000

7236 Tropical Way
SOLD $206,000

8081 Palmetto Circle
SOLD $205,000

777 S. Federal Hwy
SOLD $200,000

1001 SE 16th ST
SOLD $146,000

1320 NE 18th ST
SOLD $145,000

640 Tennis Club Drive
SOLD $99,999

1100 Colony Point
SOLD $85,000

The average Realtor sells less than one home each month. There is a method to working in this market and a reason for the success of Aaron and his clients. Contact us today to find out more!

 

 

Latest South Florida
MLS Stats:


Single Family Homes
Active:18,449
Pending: 3,022 (past 30 days)
Closed: 3,389 (past 30 days)
Days on Market: 177
Months of Inventory: 5.44


Condo
Active: 30,678
Pending: 3,253 (past 30 days)
Closed: 3,534 (past 30 days)
Days on Market: 191

Months of Inventory: 8.68

Contact Us

Aaron Novello
The Novello Group
Keller Williams Realty
FL
954-626-8768
Fax: 954-809-3003
Send an Email

www.soldinsouthflorida.com

 

Follow us online
Follow us on Facebook

From Our Listings

3140 S. Ocean Blvd #107N $799,000

2941 Hidden Harbour Street $599,999


19380 Collins Ave PH-16 $525,000


"Thanks to Aaron Novello and the team at The Novello Group for taking care of business. Very respectable and efficient group of people who will go the extra mile to make sure you are satisfied and make sure the client is comfortable. Definitely recommend The Novello Group to take care of any of your residential real estate needs."

- Andre Davis

 

Aaron Novello
The Novello Group
Keller Williams Realty, FL

March 14, 2017

How to Speed Up Your Home Sale

How to Speed Up Your Home Sale

While everyone wants to sell their home as fast as possible, it's also true that, for some sellers, the need is greater than for others.

Take the example of a couple whose kids have left home and decide to downsize. While they will move when they find the right home and get the best deal for their current property, there is generally no pressing deadline.

On the other hand, many sellers may have a move imposed on them, most usually by having to relocate for a job or a death in the family. Every second can count in such situations, so it makes sense to have everything lined up so that the sale can happen as quickly as possible.

Here are four ways of helping the process to move along rapidly:

Price - There's a tendency for many sellers to want to start at a higher price than the market will bear, which inevitably means that an adjustment will have to be made in terms of the price somewhere down the line, in order to attract potential buyers to view the property. Here's where listening to the advice of an experienced agent pays particular dividends when time is of the essence. Good agents will know exactly where your home sits in terms of the local competition and be able to suggest an optimized price that will immediately stimulate interest and, as a result, possibly attract multiple offers, improving the return (We actually had a client this week who received 3 offers and ending up selling the property for the full asking price).

Condition - It's a well proven maxim that a home in great condition will sell quicker and for more money than a similar property in an inferior state. If you have any suspicion that you could be moving in the coming months, there's no time like right now to check everything is working as it should and that furniture and decor is both well-presented and in neutral colors to appeal to the widest possible customer base. Some sellers are even going as far as to get a home inspection carried out, instead of waiting for one after an offer has been made. It's a great way of creating buyer confidence and avoiding any nasty surprises that could delay the sale, or worse...

Showing Availability - Inflexibility in terms of when you would be willing to let buyers view your home can be costly and slow down a sale. Consider that some of the most well qualified potential purchasers work some strange hours, including those in the healthcare industry and law enforcement. Make sure you're on their viewing shortlist by accommodating their schedules.

Professional Quality Pictures - When you're in a hurry to sell, you need to make a fast impression. Don't hire an agent who uses a mobile phone and then posts poorly lit and amateurish images online. At The Novello Group, we always use professional photography to promote our listings, which means your home will look at its best from the very moment it is listed, giving you the best chance of a very positive early response.

These are just a few pointers as to how you can help to influence a quick sale. Why not contact us today for a more detailed discussion related to your own situation.

Kind regards
Aaron Novello

Jan. 31, 2017

Is Your Agent Working Proactively For You?

Whether you're buying or selling a home, you are relying on the professionalism and determination of your agent to get you the very best deal possible.

When you consider that the average agent sells less than a handful of homes a year, however, it's more likely than not that your own agent will only engage in passive sales and marketing, as opposed to adopting a highly active approach.

A passive approach is essentially a "sit back and wait" policy whereby the agent doesn't make strenuous efforts to promote the property and purely relies on market forces and often sheer luck to get the job done for you.

This philosophy, of itself, often explains why homes don't get sold and buyers don't get the best options.

So what does an active agent do every day on your behalf?:

For Sellers

  • Proactively looking for buyers and sellers daily.
  • Networking with the top agents in town.
  • Talking to your neighbors in the search for buyers.
  • Giving you regular updates as to why your home is not selling with suggestions to turn the situation around.

For Buyers

  • Vigorously searching for properties that are not on the market yet.
  • Staying on top of the newest listing with technology to ensure you get notified ASAP when new homes hit the market.
  • Constantly speaking to sellers so they know when a home is about to go on the market or get a price reduction.

If you aren't getting the right results from your agent, find out today if he/she is working to the above principles. If not, well it's probably time for a change, so why not contact us to learn how we will adopt an active approach on your behalf at all times.

Kind regards
Aaron Novello

Posted in For Buyers, For Sellers
Jan. 16, 2017

Reasons to be Buoyant about South Florida Real Estate in 2017

Incredibly, we're already halfway through the first month of the New Year, but as it's our first newsletter of the year can we take this opportunity to wish you and your family a happy, healthy and successful 2017.

In the world of real estate it certainly does indeed look like it's going to be happy, healthy and successful in the coming months.

Inevitably, the election last November has altered the landscape. The subsequent and still ongoing rally in stocks has caused mortgage rates to rise. However, this should be seen as a long overdue correction from the totally unsustainable ultra-low rates of recent times. It's also a result of much greater confidence in the direction of the economy.

Measured on any historic scale, mortgage rates are still very low and continue to create great opportunities.

It's also pleasing to see growing inventory of available homes for sale in some segments of the market. More choice is a vital component in the buyer purchasing equation and is far preferable to a situation where poor supply levels can delay that all-important buying decision.

Various geopolitical situations abroad mean that money is still coming in from around the globe. The nature of our area means that South Florida real estate always does well out of this sort of very welcome cash injection.

It's also a very rosy outlook for those of you involved in or considering investment property for income. With a an always lively rental sector, we're commonly seeing 6-8% annual returns, while banks continue to give out very little in terms of interest.

The very welcome return of first time buyers last year shows no signs of letting up in 2017. The National Association of REALTORS® recently commented that we're going to see even more millennials buying a place of their own this year, and not just at entry level!

Corelogic predicts that homeowners' net worth will rise by 5.2% in 2017, building on rising home equity levels in recent years to encourage more fluidity in the market, as more people look to move to a more upscale residence.

It's just a great time to be buying or selling. Why not contact us today for an informal discussion of how to best achieve your real estate goals this year.

Kind regards
Aaron Novello

Posted in For Buyers, For Sellers
Dec. 22, 2016

Thank You

I want to thank all of our past clients who have used our service this year (sometimes for the second or third time) or referred us to their friends or family, the highest compliment we can receive.

My thanks too to our great vendors that we have the good fortune to work with, who service our clients needs to make their customer experience as smooth and efficient as possible, be it handyman work, getting stuff cleared out, moved, shipped or stored.

I'm also so grateful to all our staff who did a great job with helping clients.

All this culminated in the team here at The Novello Group having the great fortune to help 152 families either buy or sell a home in 2016.

Thank you for this opportunity. It sincerely is a privilege.

Can I also take time, time to wish you and your family Happy Holidays from The Novello Group. We hope the season is full or warmth and comfort and a chance to spend time with loved ones.

We're expecting a really strong and robust 2017. Our intention is to sell 185 homes next year and we look forward to being of help and assistance to you in the future.

Happy Holidays

Aaron Novello

Posted in For Buyers, For Sellers
Dec. 6, 2016

The Importance of Continuing to List Your Home during the Holidays

With the holidays approaching fast I hope that, if you've been listing your home, that you've not been tempted to take it off the market until the New Year.

Sadly this a trap many sellers fall into at this time of the year, prolonging the sales process. The usual reason is that they're under the very common misperception that homes do not sell at this time of year. The truth, in fact, is quite the reverse and at this time we see some of the most motivated and determined buyers in the entire 12-month cycle.

Many people relocate to start new jobs in January, which means that they are looking right now to ensure a smooth transition.

Locally, of course, we welcome many of our winter residents, so now is the time to be selling to them. Wait until the New Year and you'll have missed much of the chance to attract this key market sector, plus there'll be more sellers chasing the remaining seasonal buyers.

Remember that while you're taking a break from work, so are many buyers. This means they actually have more time than usual to view homes!

And if you’re concerned about having too many visitors while you’re trying to take a break, we can work with you to limit the number of viewings and avoid any specific dates.

Tax incentives for people to buy before the end of the year can be another important motivating factor.

Unfortunately, no matter how good the advice, some sellers will withdraw from the market until January. This in itself presents a great opportunity, in that you'll have less competition for the next few weeks and, as a consequence, your asking price will be that much more robust.

We’d be pleased to answer any questions or concerns you have about selling your home at this time of year. Please contact us today.

Happy Holidays
Aaron Novello

Posted in For Sellers
Nov. 4, 2016

What To Do When An Appraisal Comes In Below The Agreed Selling Price

I've noticed in a few recent transactions, where we are representing a seller and have procured a contract with the buyer and agreed to a purchase and sales price, that the lending company's appraisal comes in a bit light.

For example, the agreed price may be $300,000, but the appraisal comes in at $290,000.

As a seller in that situation you have three distinct options at your disposal.

The first is to simply accept the reduced price and just go ahead.

The second option is to say "no" and ask the buyer to come up with the difference. However, with some changes to supply and demand in the market, and more choice for buyers due to better inventory levels, I'm not seeing them coming up with that difference in the way they might have done a couple of years ago.

Your other choice is to enter into negotiation with the buyer, perhaps agreeing to meeting around the halfway mark of the difference between the agreed and appraisal prices.

I hope this helps you in terms of spelling out your options in this situation.

Don't hesitate to contact us if you have any additional questions and concerns or if you are considering putting your property on the market.

Right now is actually a great time to be listing your property. A lot of people take their homes off the market for the holiday period, so you have less competition and stand the best chance of getting a great return on the sale.

As a buyer, it's a great time to be looking for a home as those sellers who remain on the market at this time are very motivated.

We look forward to the opportunity to earn your business.

Kind regards
Aaron Novello

Posted in For Buyers, For Sellers