“Historic” Drops in Rates, Special Financing Bely Gloomy Economic Reports
Florida Times Union (December 27, 2008)
Prudential Network Realty's Michelle Cummings, currently listing a home on Liberty Drive in Jacksonville Beach, says she's promoting a financing program Wells Fargo that gives buyers 110 percent financing if 20 percent is used for home improvements – a product she thinks would work well for homes like this one that just need some “TLC.” Cummings can be reached at 904-241-2417, or e-mail michelle.cummings@prudentialnetworkrealty.com
While the state of the economy dominates the headlines, giving the impression that banks are “capitalizing” the money received from the government bail-out and that lending is tight, the fact is that buyers with a 600-or-better credit score can still receive financing – and at incredibly lower rates than those available only six months ago.
In fact, special financing programs are still around.
For example, Wells Fargo has a FHA product that will give buyers 110 percent financing. These loans require buyers to spend 20 percent of the loan on improvements, such as remodeling their kitchen or replacing a roof, which can cover up to $30,000.
“It's a great program that gives buyers the ability to buy a home that just needs some TLC, and make the improvements they need to once they move in,” said Prudential Network Realty Agent and Broker Michelle Cummings.
Cummings, who's promoting the program at her home listing at Liberty Drive in Jacksonville, says buyers are surprised when they hear about the program.
“Most buyers think special financing isn't available anymore, but that just isn't the case,” she said. “And for those buyers who find a house that has the floor plan they want at the right price, this program gives them the ability to buy it and make the improvements it needs with no extra cash up front.”
In addition to special financing, mortgage officers throughout the First Coast say there is plenty of money available to lend – and at rates that have “dropped dramatically” on 30-year fixed mortgages over the last six months, says John McKeown, mortgage sales manager with Community First Credit Union.
“Interest rates in the upper six percent range just a few months ago have dropped to 5.125 percent with no points and no origination fees,” McKeown said.
They may drop even further after the presidential inauguration.”
While he admits that credit has been harder to obtain through Freddie Mac and Fannie Mae, which created many of the “exotic” financing schemes that most blame for our current financial woes in the housing industry, conventional FHA loans are easier to come by.
“The bar has been raised a bit on credit standards for conventional, 30-year FHA loans, but with a five- to six-percent down payment, and a credit score anywhere from 580 to 660, these are still very doable for most buyers,” McKeown said. (Credit reporting companies set your credit score within a range of 350 to 850, with 850 being “exemplary” credit.) “With a credit score around 600, Community First can still get a buyer into a home with about a 3.5 percent down.”
FHA loans, and VA loans, are the stalwart of the lending industry. Lenders sell and originate the loans, and the loans are government insured (which protects the lenders).
Seeing that these tried and true FHA loans are making a comeback, SunTrust Mortgage actually sent all their mortgage loan coordinators through an FHA refresher course a few months ago, said Suntrust Vice President of Mortgage Lending Robert Fleishman.
“Two years ago, with all the competing mortgage packages, FHA and VA loans only accounted for about five to eight percent of our business,” Fleishman said. “We project that they'll make up about 40 percent of our mortgage volume next year.”
For buyers on the fence, Fleishman notes that the down payment requirement on FHA loans will go up on January 1 – from 2 ¼ to 3.5 percent.
But he, like McKeown, touts the fall of interest rates and says home buyers are in the best position to take advantage of them now.
“Just last week, rates fell below five percent (to 4.875) on a 30-year loan,” he said. “These rates mean homes are more affordable now than in any time I can ever remember,” he said.
While homes priced at $400,000 or less are selling more briskly in today's market, there is still financing available for the “jumbo mortgages” needed for homes priced at more than $417,000. While some sources have dried up in this area, mainstream lenders have actually never been out of the jumbo market.
For example, Compass Bank offers several programs that offer professionals 100-percent financing for these higher-priced homes, according to Senior Mortgage Banking Officer Tom Callahan.
“Compass is the only institution I'm aware of that offers this program to certain professionals, including self-employed certified public accountants, attorneys, physicians, and people reporting directly to a CEO of a public company,” Callahan said. “They can receive a loan from $650,000 to over $1 million with no money down and no mortgage insurance required.”
Callahan notes that they've recorded a “zero foreclosure rate” on that demographic of buyers, who can receive a six-percent financing rate (paying one point), and that these loans can be extended to construction loans for custom-built homes.
On conventional loans, Compass also offers a “Unity Reinvestment Act Mortgage” program. The program requires a three-percent down payment (with no mortgage insurance requirement) for a 30-year fixed rate mortgage.
“Certainly, on conventional FHA loans full documentation is required, so it's harder to be approved for a loan,” he said. “Everyone has something in their credit history that makes their file more ‘challenging,' but it's a fact there's plenty of money available out there.”
As with the other mortgage lenders, Callahan says the financing rates being offered now are nothing short of historic – especially given his perspective.
“I've been doing this 24 years in Jacksonville and I've never locked in a rate lower than 5 ¼ percent, but here we are,” he said. “If a buyer's in the right position, it's the best time to be in the market for a home.”
Lots of Opportunity
Florida Times Union (October 20, 2007)
Michelle Cummings of Prudential Network Realty, who is listing agent for a $265,000 lot in the Ashton Oaks development in Mandarin, says buyers have to use their imagination to visualize what their custom home would look like on a piece of property.
While it isn't as much as a buyers market compared to new and resale housing, for homeowners considering buying up a piece of property and building their own home this is the best time to be in the market for land.
According to realtors, builders and real estate appraisers in the First Coast, prices for residential lots or large tracts of land will find prices have cooled considerably since the housing market peaked in mid–2005.
“There really hasn't been a better time to buy lots in the last five years,” said Jeff Henderson SRA, president of Henderson Appraisal Group in Jacksonville. “Prices for lots have stabilized for the most part. I would say about 75 percent are showing little appreciation, less than .5 percent, and on the construction side, many builders are hungry. That's where building a home on a lot can save someone money now.”
Henderson says that, just as with single–family homes, new investors flooded the market from 2002 to 2005 – driving up prices for land and properties.
“There were more buyers than there were properties,” Henderson said. “Now, we're all adjusting to the normal activity – people buying properties and homes for living, not to hold and sell as investments.”
Along with Henderson, who has done appraisal work for nearly 20 years in the First Coast, we spoke with Prudential Network Realty Agent/Broker Michelle Cummings, who specializes in single–family homes and lots, Randy Long of J.A. Long, Inc, a custom builder that purchases lots for home construction, and Prudential's Michelle Mousin, who specializes in larger tracts of property.
Q: Are there differences in marketing a lot compared to a home? Cummings: With a home, a buyer can see, feel and touch it and can better visualize what it would be like to live there. It's similar to selling pre–construction, but there you have a rendering of what the condo or new home will look like. With a lot, a buyer has to use their imagination to really see what their home would look like situated on the lot. In terms of advertising, it's about the same. You might go to higher–end publications because of the price points on the land, but you would do that with a higher priced home as well. For example, I have lots in Ashton Oaks in Mandarin now, and I have to consider the size of the other homes already in the neighborhood, in addition to the property, in targeting to the right market.
Q: Are there any differences in the demographics of those who purchase a lot? Cummings: Not really. I've had buyers who are young professionals, more established buyers who have had homes built on lots before, and older retirees who are downsizing. The only thing they typically have in common is that they know what they like in a home and want it personalized to fit their needs, whether it's a certain architectural style, the size, the views from inside, and other specific wants like those.
Q: When buying a lot, what should the buyer keep in mind? Cummings: Certainly, their personal preferences on lot size and location, access to utilities, surrounding zoning and, in some places, the composition of the soil is important.
Q: For residential lots, how is the pricing right now? Cummings: Lots are priced pretty well right now. If a buyer is looking at lot for building their own home, they will find sellers who are willing to negotiate.
Q: From a builder perspective, J.A. Long purchases lots for constructing custom homes. What do you look for in a lot? Long: We really look for properties that have a “wow factor” to them – something that creates emotion for the eventual buyer. We also look for amenity centers, golf & country clubs, nice trees and, of course, waterfront opportunities – whether its water view or access.
Q: What about the land itself? Long: When buying a lot, we look for a combination of things. First, the look and visual landscape of the site are important. We also look for lots with a nice tree canopy. You also want to check out the soil conditions. You don't want too much clay in the soil, which makes the house more prone to settling later. You want nice, compact buildable soil conditions. Also, the height of the site is important. While you can add fill to level out a lot, if you have to add to much soil it will eventually kill the trees, so it's important to check the county's requirement for the finished floor elevation when you choose a lot.
Q: Where are you buying lots now? Long: We're always looking for good lots where we can build. Since we're based in Orange Park, we have several lots in the Fleming Island and Oakleaf areas, but we've begun focusing on lots and possible deals in other parts of town like Mandarin, St. Johns County and areas around Butler Boulevard. We especially look for good waterfront property. We typically own between 15 to 25 lots at any given time.
Q: Are there any bargains out there? Long: We haven't been in any serious negotiations lately, but generally I think lot owners are more willing to listen to an offer now. They're more realistic about the market conditions and not so focused on getting rich with a piece of property, so someone buying a lot today will be in a better negotiating position than they were a couple of years ago.
Q: How about large tracts of land? Mousin: Large tracts of land, and I'm talking about anywhere from 50 to 100 acres or larger for residential development, and especially those with entitlements or the permitting and zoning completed, would be of interest now to some investment groups who are willing and able to buy now at the right price and hold. National builders, or even smaller builders with land inventory, need some time to absorb that inventory. Large land owners who don't have to sell are holding on until the market improves. That's not to say they won't negotiate if they are financially motivated and need to sell the property.
Q: What types of uses do you generally find with large tracts? Mousin: Many are zoned with an agricultural classification, for cattle, crops, and timber uses, for example. The uses vary from single– and multi–family development, for mobile home lots, or for retail. For individual residential buyers, what has become popular are “gentleman's farms” of five to 20 acres. These buyers are generally those who have never owned land before, but who want to enjoy the space with a house, barn and maybe a few horses.
Q: How did you get into selling large tracts? When I started in Ocala in the mid 90's I worked for a land development company that would purchase large tracts to develop as residential or commercial and we would market the finished product through the brokerage. We would also handle the development process for clients and advise them of the highest and best use for their land to make the most return. Since I had an equestrian background, I also specialized in horse farms, specifically Thoroughbred training centers.
For more information, contact Michelle Cummings at Prudential Network Realty/Atlantic, 904–241–2417, or by e–mail at michelle.cummings@prudentialnetworkrealty.com. Randy Long, Chief Operating Officer for J.A. Long, Inc., can be reached at 904–264–3073 or at rlong@jalong.com. Prudential Network Realty Realtor Michelle Mousin can be reached at 904–616–5757 or by e–mail at michelle.mousin@prudentialnetworkrealty.com.
Remodeling Helps Prop Up Properties
Florida Times Union Homes Section (September 30, 2007)
Neptune Beach resident Celina Wolfe completed some remodeling projects in advance of selling her home to increase curb appeal for her $309,000, two-story property on 1916 Strickland Rd. Wolfe says the investment has generated more interest. Wolfe's realtor, Michelle Cummings of Prudential Network Realty, says sellers shouldn't overlook landscaping – many times a low cost investment with a high return when it comes to home sales.
With new home construction slowing down, and contractors and subcontractors looking to make up for the related loss of work, many home owners are taking advantage of a great opportunity to remodel.
First Coast builders and contractors say that with less building activity taking place, contractors and their subcontractors can get the jobs completed more quickly and at better pricing than a year ago.
And realtors say that in this competitive buyers market, remodeling can be the key in making a property stand out from the others when potential buyers come along.
“Whether it's a new kitchen, repair work they've been putting off, or just an interior or exterior paint job, even some small remodeling projects can make a big difference in how long the sign stays in the yard,” said Prudential Network Realty Agent/Broker Michelle Cummings. “With so much housing inventory on the market, these types of improvements can help their homes show better against the competition – which can mean less time with a sign in the yard.”
Cummings says one of the least expensive home improvement projects, landscaping, can become one of the biggest returns on the investment.
“If a potential buyer pulls up to your home and it doesn't have curb appeal, they might just continue on to the next house for sale,” Cummings said. “People sometimes overlook the impact that a $200 to $300 investment in landscaping can make to the overall look of a home.”
Celina Wolfe, one of Cummings' clients who is selling her home in Neptune Beach, invested in landscaping and many other improvements including new interior and exterior paint, installation of new hurricane-resistant garage doors, and some other small remodeling jobs to prepare her home for sale.
“We've had some great feedback from the people who've come to view the house,” Wolfe said. “The new paint on the outside and the landscaping have really worked to highlight the entrance of the house, which has drawn more people to come in and look around.”
Wolfe's two-story, three-bedroom, two-bath home, located at 1916 Strickland Rd., is priced at $309,000.
Looking at the price of moving to a new home and the availability of lots of labor at good pricing, Patricia Cochran of Orange Park decided to enclose her outside patio area to add living space instead of moving to a new home.
“I thought about moving, but I like my brick home and I enjoy the neighborhood I've lived in for the last 25 years,” she said. “We have grandchildren now and I really wanted to add some space. When I looked at the cost of moving, and the number of months I might have to wait to sell my home, compared to the cost of remodeling, it just made sense to me.”
Cochran contracted with J.A. Long, Inc., an Orange Park custom-builder, for her remodeling project. While the company is known as a residential custom builder, company founder John Long says the firm is actively bidding on remodeling jobs now to keep employees busy and a good group of subcontractors intact.
“On major remodeling projects, especially when you have to replace a roof or build a large room addition, custom builders like us have an advantage because we do so much specialized design on our own homes,” Long said. “We also think there's a market for large room additions in some of the older neighborhoods where adding square footage makes more financial sense than moving to a new home.”
In Cochran's case, J.A. Long will be adding 400 square feet, adding a new roof and changing the roof line so it will conform to the existing look of the home, and matching the home's original Norwegian Brick with similar brick. Long says the entire project will cost from $40,000 to $50,000.
“Construction prices are lower than they were a year ago, but the main thing is the availability of labor,” Long said. “Since there are fewer construction jobs out there, you can get great labor at competitive prices and you don't have to wait as long to get the jobs done.”
Jack Gregory, Remodeling Division Director for Vintage Group, Inc., says most of the calls he is getting these days are for adding rooms, rebuilding kitchens and bathroom and general repair work.
He agrees with Long that the availability of subcontractors, from specialized carpenters to tile and floor installers, means the homeowner will get more prompt service – and the jobs are completed more quickly, meaning less disruption around the household.
“Subcontractors are also hungrier for the work these days, so if you get three bids for a job that are close, you can go back and negotiate for lower pricing, which you really couldn't do a year ago,” Gregory said. “A carpenter who might have bid labor at $40 an hour last year may drop the price to $35 an hour or lower, depending on how badly they need the business.”
Prudential Network Realty's Michelle Cummings can be reached at (904) 241-2417 (ext. 331) or by e-mail at michelle.cummings@prudentialnetworkrealty.com
J.A. Long, Inc. can be reached at 904-264-3073 or by e-mail at info@jalong.com
The Vintage Group Remodeling Division Director Jack Gregory can be reached at (904) 208-5555 or by e-mail at jgregory@vintagegroup.com
Cummings' "Back to Basics" Approach Keeps Her Among Top Realtors in Challenging Market
Florida Times Union/Shorelines Edition (April 25, 2007)
Broker Associate Michelle Cummings of Prudential Network Realty, shown here at a Arthur Rutenberg Home she is listing, has continued to prosper in 2006. Cummings has been one of Prudential's top producers in sales, listings and transactions for the last two years and is on track to stay on that list in 2007.
The shift from a seller's market to a buyer's market has been a challenge for realtors throughout the First Coast, but Broker Associate Michelle Cummings of Prudential Network Realty has continued to prosper. Working out of Prudential's Atlantic Beach Office, Cummings was one of its top producers in sales, listings and transactions for the last two years and is on track to stay on that list in 2007. She attributes her success to her work ethic and getting ‘back to basics' when the market began to change early last summer. "Like any job, it comes down to consistency and setting your personal goals and objectives for the year and doing those things you need to do everyday to get there," Cummings said. "When faced with a downturn within the industry you work in, some have a tendency to scale back their marketing and advertising when it is just the time you need it most. But I increased marketing throughout last
year, and I still do the basics like walking flyers, knocking on doors and the networking it takes to be successful in market conditions like these." Cummings said that when she started with Prudential, the market was fairly "balanced" between buyers and sellers before the residential market got "red hot." What amazed her was how quickly things changed last year.
"For about two years, you barely got the sign outside the property and it was sold," she said. "Then the market seemed to change overnight."
Along with sticking to her work plan and continuing her marketing efforts, Cummings said staying with her "niche" and maintaining a balance within the properties she sells have also helped her maintain high sales throughout the last year. Her currently listings range from a $1.05 million property in Ponte Vedra, a spec home constructed by Arthur Rutenberg Homes in the Ponte Vedra East Subdivision, to a $350,000 beach cottage on Strickland Road in Neptune Beach.
Cummings focuses on single-family homes and condos and having a good mix of properties, including this 1,898-square-foot beach cottage on Strickland Road in Neptune Beach priced at $350,000. She says listing a wide range of homes gives her the flexibility to find the right home for the buyer and at the same time generate sales while working with the higher valued properties.
In addition to serving as a listing agent for single-family homes, condos and townhomes, she works on behalf of developers such as Cranewoods Development that is building The Abacos at Salt Run, an 85-acre residential development along Salt Run Harbor in St. Augustine that offers a mix of townhomes, condos and single-family homes.
"I'm really focused on single-family homes and condos, and having a good mix of properties I'm listing gives me the flexibility to find the right home for the buyer and at the same time generate sales while I'm working with the higher valued properties, which typically take longer to sell in the market," she said.
When she graduated from Drury College in Springfield, Missouri with a degree in public relations and organizational communications, Michelle Cummings says selling real estate was the farthest from her mind when it came to her career path. But those skill sets have been put to good use as a realtor.
"I love the marketing and communications aspects of the job, and meeting all kinds of people," Cummings said. "I also like the variety of the job. Every day is different and offers a unique set of challenges. Each real estate transaction is different, the motivation of each buyer and seller is unique, and, of course, the residential market itself is always changing."
When she graduated, she worked for a few years in television and radio advertising before deciding on a real estate career.
"I assessed my strengths, began looking outside the field of advertising and came to the conclusion that selling real estate had a lot of the elements I was looking for in a career," she said. "I was basically working as an independent contractor in the ad business, and that's the way real estate offices are operated. Also, I'm a very structured person, and you need that when you are working in this business."
Reviewing all the real estate companies, Cummings decided on Prudential Network Realty.
 In addition to serving as a listing agent for single-family homes, like this $579,900 home on Crusselle Drive in the Crusselle Cove Subdivision in Mandarin, Prudential's Michelle Cummings also works on behalf of developers such as Cranewoods Development, which is building The Abacos at Salt Run – an 85-acre residential development along Salt Run Harbor in St. Augustine that offers a mix of townhomes, condos and single-family homes.
"Prudential provides a strong base of in-depth training to all its agents, which lasts anywhere from three to six months," she said. "Even though you already have your real estate license, you have to complete at least six transactions to graduate from the program and join a Prudential office."
Cummings, who completed her six transactions within two months, was also impressed with the professionalism of the company.
"Selling real estate, by its very nature, is a very competitive business," Cummings said. "While there is a healthy competition within our office, anything beyond that isn't tolerated by the company, which creates a much better working environment in our offices."
As for real estate advice for today's market, Cummings recommends that sellers need to have their home "turn-key ready" if they want to get it sold sooner than later.
"There is still a lot of inventory out there, so you've got to have a sharp looking home ready to sell to compete in this type of market," she said. "But sales activity is increasing. I've received more calls recently than I have in previous months. And this is the time of year when families begin thinking of the next school year and where they want to live, or downsizing at the other end of the spectrum, so we'll enjoy a seasonal pick-up in activity."
Cummings adds that people looking for a good investment would do well to look at residential real estate now.
"This is still a great place to invest," she said. "There are some great deals in this buyers market and they won't be around for long."
For more information, contact Michelle Cummings at Prudential Network Realty/Atlantic, 904-241-2417, or michelle.cummings@prudentialnetworkrealty.com
First Coast Home Sales Building from the Bottom Up
Florida Times Union (March 10, 2007)
Michelle Cummings of Prudential Network Realty is currently listing agent for a four bedroom, two bath home on Tropical Terrace in Jacksonville Beach priced at $314,900. Cummings says that homes like these in the $200,000 to $400,000 range are seeing brisker sales of late, but the abundance of housing inventory means sellers need to show their home at its best to compete with others on the market.
Over the last month, some realtors have noticed an increase in sales for residential homes valued at $400,000 or less – an early indication that the real estate slide that started last April may soon be over.
"Homes in the $200,000 to $400,000 price point are more active and there are certainly more buyers in that range," said Prudential Network Realty's Michelle Cummings. "There is still a lot of inventory on the market, so people selling their homes still need to do all the things that ensure it shows like a model and market it the best they can. The competition from other residential properties is still there, but more buyers are coming forward, too."
Cummings says that attaining that "model look," plus taking a hard look at the price point of the home, can make a big difference in this competitive market.
"A home in that price range that shows well, is priced correctly and is marketed well will probably sell in about 90 days, compared to six months or longer if it isn't," she said.
For home buyers who have been straddling the fence on whether prices would drop any further, their days may be numbered, according to Trecia Crews, a realtor with The Legends of Real Estate.
"I would call it the "trickle-up philosophy" of real estate," said Crews, who has been in real estate sales for 20 years, 10 of those in the Jacksonville market. "When more houses move in the $200,000 to $400,000 range, the people who lived in those homes are able to move up to the $400,000 to $600,000 range, and it permeates upward through to the million dollar homes and above."
Crews recently coordinated the sale of a home where she lives, in the Westwood area in St. Johns County, of a 2,800-square-foot home that sold for $427,000 that never made it to the market. She sold a similar home, an all-brick, 2,350-square-foot home in the South Creek area near Roberts Road for $418,000.
Crystal Draper of Esquire Title & Trust Inc. says that while homes below $500,000 are moving better than they were the previous six months, realtors are hoping more buyers close deals as the end of the school year approaches.
"While there is a lot of inventory out there, buyers can also purchase more home for their dollars now," she said. "They may be taking a lower price for their former home when it sells, but they are buying more new home on the other end of the equation."
Crews also notes that the recent stock market fall of about 500 points in February could also help speed the real estate rebound.
"Historically as the stock market gets more volatile, people, including investors, look more favorably at real estate," she said. "Interest rates are still at great levels, anywhere from 5.5 to 6.5 percent, so it remains a great investment."
Those low rates, coupled with the great deals offered by area lenders, are also putting more first-time home buyers into the mix – especially on the lower end of the housing market.
Jeff Staggs with Lifestyles Realtors in Riverside has sold three homes since January – all to first time buyers.
"These are the buyers in the best possible position," Staggs said. "There's plenty of inventory for homes in the $120,000 to $200,000 range, they aren't selling their own home in a buyers market, lenders have programs that require little or no money out of pocket, and interest rates are in a great spot."
Staggs has found that the Murray Hill area is "really hot" for first-time buyers – with homes from 800 to 1,700 square feet priced reasonably at the mid-$100,000's and up.
"The higher priced homes, including those in Riverside and Avondale areas where I work, are certainly sitting longer and sellers need to anticipate that," he said. "They need to ensure their homes are priced correctly based on comparable sales in their area and take the steps to improve curb appeal and make the best presentation possible."
Companies like Esquire Title & Trust, Inc., which are brought in at the end of the home-buying process, are seeing a slight pick up in activity.
"Homes in the lower end of the price range are starting to move, and there are pockets of activity on the west side and at the beaches that are doing okay," said Esquire Marketing Representative Crystal Draper. "There is still a lot of inventory and a lot of people ‘kicking tires.' Most of the realtors we work with hoping that as we approach the end of school, buyers who are looking to move laterally or move up will begin closing more deals."
Angela Bradley, a partner with Margi Pettit of Lifestyles Realtors in Atlantic Beach, says it makes sense that with all the choices on the market people are taking their time in making a decision to buy.
"If you had a choice between five cereals to have for breakfast or just two, certainly you make a quicker decision if you only have two, then you move on," Bradley said. "That's what we are experiencing now."
While Bradley's home listings are priced at $625,000 and up, she says that the number of potential home buyers she sees has increased in the last two months. And she does agree that as home sales pick up in the $400,000 and lower category that the buying activity will begin to percolate up into the higher-end homes.
"I have no doubt that will happen soon, and it may be what's happening now," she said. "It's not a question of if, but when."
Incentives for Everybody
Florida Times Union (December 23, 2006)
As listing agent for a condo at Marina San Pablo, Prudential Network Realty Broker Michelle Cummings is offering a $500 Visa gift card to other realtors who find a buyer.
Yes, it is the best time to buy a home.
But if historically low interest rates and a great inventory of homes weren't enough, homeowners and residential developers are coming up with some great incentives to get buyers off the fence and signing on the dotted line.
There are folks offering boats (and even their own dogs) to entice buyers to purchase their properties. And while realtors and sellers agree that the more creative incentives grab attention, which is the ultimate goal of offering them in the first place, incentives have been part of the sales equation for a long time…and will continue to be as the residential market strengthens over the next year.
Incentives can range from sellers offering to pay a portion or all closing costs or buying down points off the mortgage loan, to selling wide screen televisions or offering free upgrades to close the deal.
Some sellers direct their incentives at realtors in the hopes that extra bonuses and commissions will encourage them to identify more potential buyers more quickly.
For example, a condo owner selling her home at Marina San Pablo in Jacksonville Beach is offering a $5,000 gift card for the buyer's agent who brings her a contract for the property, listed at $679,000. The two-bedroom, two-bath condo has a lot going for it already – with amenities like hardwood floors, granite countertops and stainless steel appliances along with a balcony offering a great view of the Intracoastal Waterway.
JP Chase Morgan Bank loan officer Margie Armento cautions home buyers to make sure any incentive agreement is in writing, whether provided through an addendum to the contract or as a separate, binding document.
"Whether it's offering gift cards or giving realtors higher commissions, innovative sellers have many possible incentives to put to use," said listing agent Michelle Cummings of Prudential Network Realty/Atlantic Beach. "In a market like this one, you can get pretty creative."
Cummings says incentives like these are actually pretty common – and many were there even when the market was red-hot.
"Even then we were offering pre-construction sale pricing and other things to get additional interest in our properties," Cummings said. "Today, with so much housing inventory out there and so much competition, these types of incentives represent another way to set our property apart from the others on the market."
Randy Shelton, who represents The Strand condominium project as Vice President of Sales for American Land Ventures, recently announced a $5,000 incentive to realtors who could bring new buyers under contract by the end of November. The amount was $2,000 for those who had a contract in place by the end of December.
"Using additional commissions is a tangible way for us to tell realtors we don't mind paying more if you can bring us buyers," Shelton said.
Condos at The Strand range in price from the low-$200,000's to the mid- $800,000's at the 295-unit development, under construction on the Southbank next to another American Land Ventures project, The Peninsula.
Over in Riverside at The Chelsea Lofts, a 20-unit condominium development at Herschel and Goodwin streets, Cranewoods Development is offering buyers a choice between a Vespa motor scooter, paying homeowner association fees for a year, or a flat-screen plasma television.
Cranewoods Manager Andy Howe says he and Lifestyles Realtors Sales Director Chris Donovan came up with the Vespa idea.
"The Vespa seemed like a better fit for the project," Howe said. "But we also came up with some other incentives so buyers would have choices. For the investor, having your association fees paid for a year may be more inviting than a Vespa. For the buyer who plans to live there, the Vespa or plasma TV. may represent a more valuable incentive."
At two other Cranewoods projects, The Cottages at Ponce Inlet and The Abacos at Salt Run in St. Augustine, incentives include paying the buyer's property taxes for the year and a 10 percent discount during pre-construction. At the NorthShore Condominiums at Jacksonville Beach, Cranewoods employed two interior design firms to beautify two model units there as an incentive for buyers.
Developers and their sellers, through their realtors, typically get the word out on incentives through websites, by using the multiple listing service (MLS) or by sending e-mail cards and flyers directed at other real estate offices.
"When we are discussing how to market a property, that's when the incentives come into play," Cummings said. "We look over the options, whether we want to direct incentives to the buyer or the buyer's agent, and then determine which will work better with a particular property. It really depends on the property itself and the neighborhood."
So will buyers continue to see incentives offered on residential properties as the market improves?
"It's hard to say," Cummings said. "I think it really depends on each seller's situation…how quickly they want to move their property. That's why we're seeing a lot more incentives come into play over the last several months."
Homebuyers who do take an offer on a property that includes an incentive as part of the deal do need to make sure that if it is something tangible that is outside the financial transaction – a boat, a wide-screen television, or even furniture – that the incentive is addressed in writing, whether part of the contract addendum or as a separate agreement.
"Unfortunately, verbal agreements don't mean anything these days," said Margie Armento, a loan officer with JP Morgan Chase Bank, N.A. of Jacksonville. "Homebuyers need to make sure to cover themselves to ensure they get the items they are expecting when they close on the loan."
Waterfront Properties Retain Popularity, Value for Buyers
Florida Times Union (November 10, 2006)
Realtor Michelle Cummings of Prudential Network Realty says that even now most waterfront properties are retaining their resale value better when compared to other inland areas of the Jacksonville. Cummings has two very different waterfront properties she's marketing now – a four-bedroom, two-bath condo at Ocean 22 at Jacksonville Beach, priced at $925,000, and a condo at Marina San Pablo priced at $675,000.
As the residential home market normalizes after a three-year period of staggering sales and record home appreciation, there are exceptions to the rule in the First Coast – especially when it comes to waterfront properties, which seem to defy the odds compared to other homes in the market.
"Within the general market of homebuyers, those attracted to waterfront properties are really a different breed," said Randy Long, chief operating officer of custom home builder J.A. Long. "The house can be on a pond or overlooking a lake at a golf and country club, it doesn't matter," he said. "There will always be a market for those properties because there is such a limited supply available. They are always a hot commodity."
Water views, along with trees and the surrounding landscaping, are some of the features J.A. Long now uses in determining which lots they select for their custom homes. The company also keeps an eye on the views from inside the home when they build, typically incorporating lots of glass and large open areas on the first floor of the house.
"Waterfront properties, whether they are located within a country club or just near water, don't follow the same trends as other homes in the marketplace," Long said. "Since waterfront opportunities are more limited, the market tends to remain strong regardless of what is happening in the overall real estate market."
Watson Realty Corp./Fleming Island Realtor Neil Avery recently resold one of J.A. Longs houses for $734,500, a four bedroom, three bathroom 3,450-square-foot home located on Romeo Point at Doctors Lake.
Avery, who makes waterfront properties his specialty, says that the St. Johns River and its tributaries, the Intracoastal Waterway and miles of oceanfront put the First Coast in a unique competitive position when it comes to waterfront properties.
"We have many more opportunities for waterfront here compared to a lot of areas in Florida, and many beautiful lakes in the outlying counties that many people haven't even heard of," said Avery, who works extensively in Clay, Duval, Putnam and St. Johns counties. "When you compare our waterfront prices to other markets in the state, while most are not cheap, you generally can get more for your money here. And with the slowdown in the market, they offer even more of a bargain for buyers now."
Avery says that about 1,000 people are still relocating to Florida each day and many want to follow their dream of living near the water. Along with those coming in out of state, there are also Florida residents looking at the First Coast for a variety of reasons.
"Our property values are significantly lower than similar properties in south Florida," he said. "I recently had an instance where a buyer who lived in the Florida Keys, got sick of the hurricanes and decided to buy a home on the water here," he said. "The family sold their house there, bought here, and pocketed the difference to bank for their retirement."
Realtor Michelle Cummings of Prudential Network Realty concurs, adding that even now most waterfront properties are retaining their resale value better when compared to other inland areas of the Jacksonville.
"As is the saying in real estate, it all goes back to the location," said Cummings. "And the property doesn't have to necessarily be on the water. It can be located blocks off the actual waterfront and still offer a good view, which is what most waterfront buyers want more than anything."
Cummings has two very different waterfront properties she's marketing now – a four-bedroom, two-bath condo at Ocean 22 at Jacksonville Beach, priced at $925,000, and a condo at Marina San Pablo priced at $675,000.
"It is a great time for buyers to be in the market for waterfront, especially the resale market," Cummings said. "They have more properties to choose from and buyers have more room to negotiate with sellers. For those homeowners who have always dreamed of living near the ocean or the Intracoastal, the market has some great opportunities out there for them to move up to waterfront living."
Waterfront properties also tend to have more variety when it comes to architecture and interior amenities.
"The exclusive aspects of waterfront living tend to make developers add more flair to what they are building because of the unique environment that comes with it," said Andrew Howe, manager of Cranewoods Development, LLC.
"As a developer, I know the location will support the additional investment in architectural design inside and out," said Howe, whose company is currently building the Northshore Condominiums in Jacksonville Beach and The Abacos, a 15-home Caribbean-style residential development that will two single-family ocean manors, five three-story townhome cottages, four two-story townhomes and four penthouse villa flats.
"When the time comes for resale, our initial buyers typically find that their waterfront properties hold up well, despite what the overall real estate market is doing," Howe said. "And when you have these unique design elements, subsequent property owners also tend to make additional upgrades over time, which certainly helps them when they put their property back on the market."
Waterfront properties do vary dramatically in the First Coast. Riverfront and lakefront offer fishing and boating opportunities for homeowners, while some ocean and residential properties offer more secluded living.
Amy Cataland is currently selling her home at Tiffany by the Sea, the only gated oceanfront community in all of the Jacksonville beaches. She purchased an oceanfront property and built a three-story, 5,000-square-foot home, complete with an elevator, on the site in 1996. It's now valued at nearly $3 million.
"It's a fabulous home, and being in the only gated community on the oceanfront makes it even more unique."
Cataland says she has enjoyed the benefits she discovered in a gated community, including security, less traffic and less noise.
"The homes have such beautiful architecture that I can see that we would have a lot more traffic from people wanting to look it over if the gates weren't there, " Cataland said. "With the gates we don't have to worry about people just zipping through the neighborhood and they tend to slow down the residents and guests driving in."
Chris Prescott, who now lives in Atlanta and is selling his home on Beach Avenue in Atlantic Beach, bought the property and completely raised the house that was there to create a beach home that was more "urban and open," which he says better fit his personality.
"I grew up in the beaches, and that's the way it was here when I was a kid and I love that about this area," he said. "To me, living in an open, active environment with a lot of hustle and bustle is whole point of living at the beaches."
Phil Pierce, a Prudential Network Realty Realtor representing both sellers, says there is a wide selection of waterfront properties available to buyers of all types.
"As with any home sale, it's up to the personal preference of the buyer," Pierce said. "There are pluses and minuses with all waterfront properties. For those who are looking for an added degree of privacy and security, or a more exclusive style of living, they can find it on the water. For those who lead more active lives and want to be closer to entertainment or night life, they can find waterfront living that captures that, too."
Whether it's a condo on the ocean or a lake front home in Orange Park, builders and realtors agree that waterfront properties still offer some of the best bargains for buyers and there are plenty of people out there who want to make that ultimate dream of Florida living a reality. For them, the choices available in the First Coast have never been better and, compared to other housing markets in Florida, neither have the prices.
Prudential Realtor Find Niche in Selling Beaches Real Estate
Florida Times Union/Shorelines (July 26, 2006)
Each real estate transaction is different, the motivation of each buyer and seller is unique, and, of course, the residential market itself is always changing,” explains Michelle Cummings, regarding why she enjoys working with Prudential Network Realty out of its Atlantic Beach office.
When she graduated from Drury
College in Springfield, Missouri with a degree in public relations and
organizational communications, Michelle Cummings says selling real estate was
the farthest from her mind when it came to her career path.
Now, 15 years later, Cummings is one of the top producing realtors for the Prudential
Network Realty Office in Atlantic Beach, and throughout the company. She was
top in sales, listings and transactions last year – records she's on track to
match or exceed this year.
"I love the marketing and communications aspects of the job, and meeting all kinds
of people, so I really enjoy working as a realtor," Cummings said. "I also like the variety of the job. Every day
is different and offers a unique set of challenges. Each real estate transaction is different, the motivation of each
buyer and seller is unique, and, of course, the residential market itself is
always changing."
In addition to serving as a buyer's agent for single-family homes, condos and
townhomes, she works on behalf of sellers as well.Cummings represents the developers of Las Olas, a 10-unit
condominium project under construction in Jacksonville Beach, developers HCM
Construction and Cronk Duch Partners, which are constructing The Abacos at Salt
Run, an 85-acre residential development along Salt
Run Harbor in St. Augustine, and she is also the listing agent for the Fourth & Ninth Street Townhome Development – a
six-unit complex in Jacksonville Beach.
"It's fun to work on a variety of projects," she said."Also, my previous work in the advertising field prepared me for
a real estate career in many ways."
Cummings put her college degree to use immediately in the advertising field, working in
television commercial sales for the Fox Network Television Affiliate Station in
Pensacola, Florida for several years.After she married, her husband Andrew was
transferred to Jacksonville, where she took a job with Cox Radio selling commercial
advertising.
"I assessed my strengths, began looking outside the field of advertising and came
to the conclusion that selling real estate had a lot of the elements I was
looking for in a career," she said. "I was basically working as an independent
contractor in the ad business, and that's the way real estate offices are
operated.Also, I'm a very structured
person, and you need that when you are working in this business."
Reviewing all the real estate companies, Cummings decided on Prudential Network Realty.
"Prudential provides a strong base of in-depth training to all its employees, which lasts
anywhere from three to six months," she said.
"Even though you already have your real estate license, you have to
complete at least six transactions to graduate from the program and join a
Prudential office."
Cummings, who completed her six transactions within two months, was also impressed with
the professionalism of the company.
"Selling real estate, by its very nature, is a very competitive business," Cummings
said."While there is a healthy
competition within our office, anything beyond that is not tolerated by the
company, which creates a much better working environment in Prudential offices."
While Cummings and other successful realtors, along with residential sellers, have benefited from the
appreciation in home values in 2004 and 2005, she says today's sellers will need
more patience in the residential market as we continue through the year.
"It's
not like it was before, when you could put a sign in the yard and list your
property on the Multiple Listing Service and expect it to sell right away," she
said."Homes are staying on the market
longer now, which means it's even more important to engage a realtor to help
you market and sell a property."
Cummings says the Jacksonville area still has a great residential market.
"From all perspectives, as an investor or buyer, you don't want too much appreciation
over too long a period because that's when you set up for a big fall in the
market as prices escalate too far," she said.
"You really want what is happening now – a slight slow down in
appreciation and a stabilization in values, which keeps home prices more
reasonable so people can still afford to live here."
Regardless of what the market holds, Cummings says that the changing residential
environment keeps it interesting – and she gets the most joy of the job when
she matches up the buyer and seller to make the sale.
"I get just as excited as they do," she said.
"There's nothing more fun than putting the buyer with the right home, or
helping a seller find the right buyer for their property."
For more information, contact Michelle Cummings at Prudential
Network Realty/Atlantic, 904-241-2417, or michelle.cummings@prudentialnetworkrealty.com
Colonial Design Comes to St. Augustine with The Abacos at Salt Run
Florida Times Union (April 6, 2006)
Michelle Cummings of Prudential Network Realty says the Abacos offers great views of Salt Run and, from the second story of the single-family home, a view of the Atlantic Ocean as well.
People on their yachts, sailboats and fishing boats moving through the Salt Run Harbor in St. Augustine have long used the Conch House Marina as a landmark, but may soon start setting their sights on The Abacos at Salt Run when they boat through the area.
For those boaters who have been to the Abacos in the Bahamas, the design and architecture may even make them take a second look at their navigational charts.
The first two-story, single-family ocean manor has just been completed at this waterfront residential development – part of a 15-home residential enclave located on Inlet Drive that will reflect the same colonial architecture as our Caribbean neighbor to the south.
Over the next 12 months, the colonial look of the islands will take further shape as HCM Construction builds out the rest of the development – which includes another single-family ocean manor, five three-story townhome cottages, four two-story townhomes, four penthouse villa flats and a community pool to complete the project.
"We've heard great feedback about the layout and design of the first home when it was unveiled to the realtor community in early November," said Abacos Listing Agent Michelle Cummings of Prudential Network Realty. "The manors have a second-story balcony that offers a great view of both the inlet and the Atlantic Ocean and the same spectacular view can be seen from the master bedroom as well."
The single-family homes are priced from $1.8 million. Each ranges in size from 3,125 to 3,570 square feet with four bedrooms and three bathrooms – with the option to add a carriage suite above the two-car garage.
"The carriage suite has a walkway that connects it to the home and its own individual entrance," Cummings said. "It is really ideal for visiting guests or for use as a mother-in-law suite."
Cummings said The Abacos at Salt Run is one of the most unique properties she has marketed in the First Coast.
"The interior and exterior designs of the entire development will be fantastic," she said. "I'm excited to see this special project taking shape."
All of the homes feature granite countertops in the kitchens and bathrooms, and a mix of stone and wood flooring throughout. Cummings says that upgrades can easily be made by buyers for the remaining homes since they are in the pre-construction phase.
The first floor of all the units are being built with concrete block, with the upper floors framed to allow for more architectural design elements.
As with all real estate, it is the area's unique location on the waterfront that is The Abacos' strongest selling point.
"Any buyer looking for a waterfront property really needs to see these expansive views to appreciate what The Abacos has to offer," Cummings said.
The Abacos is the first major project in St. Augustine for Cranewoods Development LLC, a company known for assembling project teams to develop, design and build cutting-edge projects. The company focuses on specialty and high-demand waterfront markets along the Florida coast. Cranewoods has other condo projects now under way at Jacksonville Beach and Ponce Inlet.
Cranewoods Development Manager Andrew Howe says that the features along Inlet Drive, including the harbor protection, are very similar to those in the Abacos Bahamas.
"It is the perfect fit," Howe said. "The area looks a lot like Abacos Bay and Hope Town Harbor where the cottages overlook the streets and waterways. The relationship of our houses to Salt Run are similar to what they have there."
Also, the laid-back, relaxed atmosphere of St. Augustine fits the development on another level.
"St. Augustine is resplendent with history and a great place to live," Howe said. "I'm just really glad we have the opportunity to bring this project to the area. Our architectural approach fits right in with the residential designs already available in these coastal areas."
Cranewoods worked with architects from Cronk Duch Partners, to create a West Indies-style architecture reminiscent of the Caribbean Islands. Cronk Duch actually applied some of the elements from projects they designed in the Caribbean. The company drew upon its work on Loyalist Hope, an enclave of 10 residences and a private estate at the north tip of Hope Town in the Abacos, Playa Cristal, a 140-unit condo hotel in Key Largo, and Angler's Reef, a grouping of 52 cottages in Islamorada, Florida.
Cummings says the variety of residential options at The Abacos also appeals to a wide range of homebuyers.
"There are penthouse flats for young professionals or seniors who don't want the responsibilities of yard work, and at the same time The Abacos also offers homes with yards for families who have children," Cummings said. "The best part is that even with the degree of differences in home options, the architecture and community pool will tie it all together in a very special neighborhood."
The flats, offering square footages between 1,150 and 1,250, are priced starting at $675,000. The villa townhomes, ranging in size from 1,900- to 2,000-square-feet, start at $896,000. The prices for the island cottages, offering about 2,860 square feet of space along with a two-car garage, start at $1.3 million.
The entire development is expected to be ready for occupancy by the middle of next year.
For more information about sales, contact Michelle Cummings of Prudential Network Realty at 904-241-7461, ext. 231, 904-477-6668, or at michelle.cummings@prudentialnetworkrealty.com. For more information about the development, visit www.abacosatsaltrun.com.
Cummings Offers Buyers Chance to Own a Piece of Flagler History
St. Augustine Record (January 8, 2006)
In the 1800s, industrialist Henry Flagler filled in a creek to create the land he needed to construct the Ponce de Leon Hotel (now Flagler College) and his servants' quarters on Cordova Street. The quarters recently underwent restoration and is now Lakeview Condominiums.
When Prudential Network Realty Realtor Michelle Cummings hosts an open house at the Lakeview Condominium in St. Augustine, she knows that the condo units offer buyers a unique opportunity to own a bit of history.
After a two-year renovation, the building that once served as servant quarters for Henry Flagler, the industrialist who developed the city, is now a 12-unit condominium.
"Certainly, the history of this place is a strong selling point," Cummings said. "I'm also surprised when visitors come by and share their knowledge about the city and the history of the building."
Standing at the head of Maria Sanchez Lake on Cordova Street, just three blocks from St. Augustine's olde town area, the two-story frame-and-brick building remains one of the city's oldest brick structures.
Developer Curt Farber, who was in the process of moving from San Diego to the First Coast two years ago, purchased the property in March 2004 and began the renovation soon afterward.
"Curt spent a lot of time and effort to retain the ambiance of the building while it was being upgraded into luxury condo units," Cummings said. "The original wood flooring was restored, and the structure of the building maintains the colonial revival style that it was remodeling to in the early 1900s."
According to information collected during a review of St. Augustine properties, the building was constructed between 1885 and 1893 to serve as the servants' quarters for the Ponce de Leon Hotel, which they also built. Originally called the Ponce de Leon Barracks, the building has a foundation of poured concrete, a material used in those years during the construction of the great hotels of the era.
"It was surprising to find out how strong this building actually is," Cummings said. "The materials Flagler used were of the best quality, and in many ways this building has a more stable foundation than that used in residential construction today."
Well known to most history buffs, Henry Flagler was the co-founder of the Standard Oil Company with John D. Rockefeller. When he visited St. Augustine more than a century ago, Flagler was enticed by the city's climate and ambiance and saw great potential for St. Augustine as a popular winter resort and playground for rich Northerners. He moved to the area in 1885 and launched what is now called the "Golden Era" of St. Augustine's history. During this time he constructed two lavish hotels, the Alcazar and his masterpiece - the Ponce de Leon.
Developer Curt Farber restored the existing hardwood floors at Lakeview Condos when he began work on the project in 2004.
"Actually, what is now the Maria Sanchez Lake was a creek that Flagler had filled in to build his hotels and the servants quarters," said Chris Philcox, who owned the building from February 1999 until he sold the property to the developer five years later.
While he doesn't consider himself a historian, Philcox learned a lot about the property's history during his ownership.
"When it was called the Ponce de Leon Barracks, about 150 men who worked on many of Flagler's projects were housed here," Philcox said. "It became an apartment house beginning around 1948, when it was given the name Lakeside Apartments."
Philcox says that Jim and Janet McNabb, who owned the apartment building for about 15 years before he purchased it, were appreciative of the building's history and shared that information with him when he purchased the property.
"When they owned it, the McNabb's favored single women as renters because the couple felt they were more reliable residents than men," he said. "That's why most people who knew of the building referred to it as the Sorority."
While most tenants in those days were retirees, some were young students attending nearby Flagler College – also within easy walking distance of the then-apartment complex. Prior to the renovation, the building had 10 two-bed and two one-bed apartments.
"Certainly, having a location close to the college and the downtown area is still one of the major conveniences Lakeview Condominiums has to offer today," Cummings said.
Lakeview Condominiums is made up of 12, two bedroom units – each designed with 10-foot ceilings and each spanning the full width of the building. Interior furnishings include granite countertops and custom cabinetry.
Each of the units is valued between $300,000 and $360,000, and seven of the 12 condo units have already been sold
Cummings says that the easy walking distance to historic olde town is Lakeview's principal selling point, but that the building's historic link to Henry Flagler can be enticing as well.
"Given his involvement in the development of the city, the Lakeview Condominiums represent a unique link to Flagler's legacy and a way to actually own a piece of that history," Cummings said. "Also, think of what a conversation piece it represents for the owner."
Cummings has pondered that history on the weekends that she holds open houses at the property.
"If these walls could talk, just think of the stories they could tell," she said.
For more information, contact Prudential Network Realty at 904-477-6668 or e-mail michelle.cummings@prudentialnetworkrealty.com.
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