Dustin Peters

A New President, Continuing Lower Mortgage Rates, and "What Else"

The National Association of Realtors has been saying for some time: "It's a good time to be buying a house." In Ocean City, we've been saying: It's a good time to being buying in Ocean City." I've been saying: "If you are considering a purchase of a shore property in the next three-to-five years, do it now!

All of the above comments continue to be heard. And during the last couple of months we see the ever so slow, but ever so consistent movement to lower mortgage rates. Rates were't terrible, but now they are inviting. In fact, it is one more motivator for would-be Buyers. Do it now. Will the rates stay that way? Could they go lower? Don't worry ... if they get lower, just refinance again.

Recently when you phone the title companies ... they are actually busier. Why? There is a line of refinancing as many Owners see the opportunity to take advantage of lower rates.

Obviously, the ongoing national economy, the stock market, the car companies, the layoffs, and on-and-on ... a lot of this is "not very good news;" but in spite of all of this, the real estate market in Ocean City, New Jersey is holding its own. Except for all the bad news everywhere else, at the local level we have some good news. We had three strong six-month periods of real estate improvement ... and would have had a fourth six-month period if not for the impact of the national economy. We can't control that ... but we still have a fairly consistent situation here in Ocean City.

Let's look at the total sale listing inventory which is now back to the mid-2005 range. A good and lower sale listing inventory is something many areas would like to have. Let's look at the single family property category in Ocean City. It's difficult to find many attractive options here without moving into the $1 million range and above. Moving to the condominium category, after several years of recovery; this market is alive and well too. There are a lot more properties in this category, and some Sellers are willing to wait it out; but overall this category tends to be the starting choice for most Buyers. And we sold quite a few condominiums in 2008 in spite of a weak couple of months in the fall.

Now more is about to happen at the national level. What can we expect here in Ocean City? First of all, we must continue to say to Buyers ... NOW is still an inviting time. Market appreciation may be right around the corner. Maybe not. But it's a sure bet to arrive within the next few years. "Don't miss the wave." That's not just true of the stock market ... it is also true in real estate.

We can't predict what will happen with a new President, a lot more spending incentives, and everything else. But we can talk a bit more positive about our own local real estate market. We are alive and well here in Ocean City, New Jersey.

This is an open invitation to readers to react to my positive comments. I invite your opinions.

Dap

So What's the Value of Doing an Open House?

Ask a variety of real estate agents, or even a number of Sellers; and you will get a number of different opinions regard the value of an open house. Some Sellers will say that all it does is get the Agent more Buyers. Some Agents will say that they never do open houses ... it's simply a waste of time. Well ... since it's my particular blog, I'm going to give you the opinion that counts ... at least on this particular blog. But I invite points of view for those so inclined.

There is a vast difference between the resort market here in Ocean City, and elsewhere; and the "real world" of real estate in the normal residential locations across the country. Obviously, they do open houses in both worlds. So what is the difference? I would project that the "real world" open houses in the small towns and larger communities across the country are designed to attract the Buyers who live in and around these areas. While the purpose of an open house in a resort market is to attract the Buyers who often spend time in Ocean City over the weekends ... possibly visiting other owners, maybe coming down for a long weekend, or only coming down for the day. Many of these individuals drive around the street checking "for sale" signs. Often they are already working with other agents. Clearly, most of the people coming to these open houses are not people living in the community. There are occasions when you meet a new Buyer who has not been working with an Agent, but mostly the reason for the open house by the Seller's Agent is quite simple: to make the sale listing available to the public - the interested potential Buyer of real estate in the resort market.

There are several other important factors. (1) The Listing Agent knows more about the specific property (having had the opportunity to obtain many additional details from the Owner), and he would be in a position to answer most questions. (2) An organized listing agent will be able to convey where this particular property's listing price is in relation to other listings in this property category. (3) Often the listing agent is able to find out that the buyer is working with another agent enabling the listing agent to make a contact with that agent telling him or her about the interaction.

I have personally found that the time spent at an open house is often well spent. You interact with other agents, you interact with neighbors, you meet new people to the resort market, you are able to assist intersted visitors with good answers to their questions. And on that very rare occasion, you are able to come back to the agency office to write up an agreement of sale.

As a Seller's Agent, how can you do much better than that on behalf of the Seller and the marketing of their sale listing. I'll see you at our next open house in the Northend or Gardens in Ocean City. When? We have ongoing "Open Houses" three out of four weekends (Saturday and Sunday) every month.

Dap

A Cold Weather Blog from Ocean City, NJ

As I battened down the hatches last evening in anticipation of the colder weather arriving in Ocean City for the next few days, I couldn't help thinking of some of the advice that I always give to "new Owners," particularly those who will not be down here that much over the cold winter months. Clearly, there are two or three times during the year when you, as a out-of-state homeowner at least a few hours from Ocean City (NJ), want to rely on "your local real estate agent" for some ongoing attention.

Advice #1 ... If possible, I recommend that Owners keep their heat on over the winter. It is better for the overall house (and in most cases, a requirement for condominiums). I also recommend that they obtain the services of one of the plumbers who go around during the under 32 days checking the property.

Advice #2 ... I recommend that Owners secure outdoor furniture and everything else because the wind will cause damage accordingly.

Advice #3 ... For any Owner that I work with, and serve as a Buyer and/or Seller Agent, I recommend that they use me as "a local contact" to advise them particularly on the weather conditions ... heavy rain and/or flooding, strong winds and/or violent storms or more, and very hot weather in the summer. These tend to be the time frames for potential leaks (we had one last week over on East Atlantic Boulevard where I served as any early contact for the Owner), or minor-to-major flooding, or lost shingles or siding, or breakdowns in air conditioning.

Clearly, these types of events do happen ... but the message for Owners is to have a plan in place, a process for communication, in order to successfully handle any type of emergency. The local realtor contact is what most Owners should be shooting for. I have one Owner who I served with as his Buyer's Agent, and continued to work with him over these years as his local realtor contact ... who refers to me as his "Realtor for Life." I think this term evolved from a conversation where I said he should think of me not unlike a financial planner, a tax person, or some other type of individual or professional that he continues with as a part of his ongoing passage through life. It may sound funny, but I feel that it is not only an important initial service that a realtor provides but also an ongoing one that a realtor should provide. I refer to that as my strategy to "Personalize the Client Relationship."

So as the cold winds blow, the temps go down, or it rains or even floods (as sometimes it does on a barrier island in South Jersey), those Buyers and Owners that I work with know how to reach me. Thanks for taking the time to read my blog.

dap

The 2009 Rental Season in Ocean City, NJ

As my Broker, Robert French, always says: "Every Owner in Ocean City was once a renter." Sure, you might say: "Not every one." But I doubt that you'll run into many who have not first rented in Ocean City before becoming the familar "Rental Tenant/Buyer" which is clearly a different sort of animal. They walk the walks all over town searching and spotting "for sale" signs. Those that catch their attention cause them to drift around to the back, ask people on the porch what the interior is like, etc. Indeed, once the weather gets nice ... you can spot this type all over the Northend and Gardens walking, biking, and driving cars. When they pass our house when the neighbor had their house up for sale, the car would drift by, the bikers would turn around and return, and the walkers would walk up the driveway looking in the windows.

Sorry about drifting off into that "Rental Tenant/Buyer" category ... we'll forget them for the rest of the blog.

The 2009 Rental Season,which starts off during the 2008 Rental Season as rental tenants re-rent for the next year and continues through the remaining months of 2008 and into 2009 running almost as long as the entire rental season even into September and sometimes October, 2009, has been a very unusual one. In fact, as I begin my 17th year as both a Sales & Rental Agent for French Real Estate in Ocean City (Northend & Gardens); it appears to me to be the worst start in my tenure and possbily the worst rental season ... unless things start to pick up in the next few months.

Obviously, the problem is not what is happening here at the Jersey Shore ... it is what has been happening, and continuing to happen, at the national economic level. There is a serious loss of consumer confidence, some lingering and continuing fear, and certain a time when many are just keeping themselves closer to the hearth and kin. Most agents from various offices voice much of the same thing. Certainly it will pick up ... and many are, of course, booking rentals. And agents are continuing to email, phone, and send cards and letters trying to attract tenants.

But Owners must act as well. A proactive stance is important. Many Rental Owners have repeat tenants which is always the best way to start. Others do their own renting which works when it works. However, mostly Owners rely on real estate agencies to handle the search and ultimate "rescue" of searching rental tenants for the rental property that will make or break the summer. Some possible strategies to consider: (1) carefully review your rental rates and consider keeping them the same ... maybe even adjusting them downward ... many owners have done one or the other, (2) compare your rental property with the competition ... not easy, but if you rent in the Northend or Gardens, go to www.FrenchRentals.com and compare locations/rental rates/etc., (3) call your rental agent and ask for advice and assistance, (4) adjust rates as the season rolls along ... miss one week, and it becomes a bad rental year, (5) make your rental property just a bit nicer than the rest ... easy to say, tough to do ... but it works.

Just want some old fashion advice from someone who will enjoy getting your call or email. Contact me. Thanks for reading my blog.

Dap

More Information about "the Gardens" in Ocean City, NJ

In a recent blog I spelled out the general layout for the Gardens area, that section north of North Street. And we did discuss the limited number of single family homes under $1 million. Let's be a bit more specific in this blog.

We find only 55 sale listings throughout the Gardens as of today. That's 36 single family, 4 multi-family, and 15 condominiums. Obviously, that limited number suggests how difficult it often can be for Buyers to find what they might be looking for in this area. Let's break each property category down for more review.

The single family sale listings show a $1,745,000 to $2,110,180 breakdown from median-to-average listing price for the entire 36 properties. One only finds 6 single families under that $1 million figure.

The multi-family sale listings are quite limited with only four properties ranging from $684,000 for a duplex to $1,248,500 for a triplex. This is a lower median-to-average listing price range; but except for one of the listings, all of the others are much further back from the ocean side of the Gardens.

The condominium sale listings show a $549,900 to $582,813 breakdown from median-to-average listing price for the 15 properties in this category. Seven condominiums are listed under $500,000; five more are listed in the $500,000 though the higher $600,000 range. The final three condominum sale listings are as follows: one in the higher $800,000 range, one in the higher $900,000 range, and only one over $1 million.

I personally have 1 single family and 5 of the 15 condominiums as sale listings, and our French Real Estate agency has an additional single family and mutli-family sale listing in the Gardens. I also have 1 vacant lot listing while our agency has 3 vacant lots and a bayfront single family listed, but not in the Multiple Listing Service (MLS).

Clearly, there is a great deal of strategy required to "find and purchase" or "market and sell" properties in the Gardens. Our particular location as an agency, my particular location as an Owner, and my total professional and concentration in this area as a real estate agent provide me with the contacts, the time, and know-how to effectively guide, plan, and satisfy a partiuclar Buyer or Seller in this unusual location in Ocean City. For details on sale listings mentioned by me or our agency, visit www.FrenchSales.com ... interested in renting in this area ... send me an email at Dustin@BeachNotes.net or visit www.FrenchRentals.com

Much more about the Gardens in future blogs ... thanks for taking the time to read this one.

Dap