Real Estate in Cape May, NJ

Dear Mr and Mrs. Listing Agent,

STOP MAKING MY BUYERS PUT IN LOW-BALL OFFERS!!! How is it your fault you ask? Well let's see, all of my clients get my newsletter every month that shows what has sold in my market because I want them to be informed and educated when ready to put in an offer. And guess what? They just saw the property that you had listed for $4,950,000 just sold for $3,000,000. And they also saw that the property you had listed for $725,000 sold for $410,000.

So of course when they are out with me and see a property listed for $500,000 they now think a starting offer of $250,000 isn't unreasonable based on what has sold. So please do me a favor; either educate yourself and stop taking overpriced listings only to sell them in house at a deep discount (not to mention doing your sellers a disservice by not allowing them to get potential offers that would be higher because people are scared of the listing price) or after realizing a list price is too high, admit the mistake and lower the price so your sellers get what they deserve!

And please help STOP MAKING MY BUYERS PUT IN LOW OFFERS!

Here is the video that I provide all of my clients with for the Cape May New Jersey area. This video includes a little info about what is going on in town as well as a slide show at the end of all the properties sold in the previous month. I have also included a link below to a spreadsheet that includes the listing price, sold price, and days on market for the sold properties. If you would like to receive this on a regular basis just join my mailing list below.

Cape May Area Sold Properties Spreadsheet

Here is a news story that just ran yesterday in the Philadelphia Area. The Philadelphia market is a big part of our summer rental vacationers here in Cape May.

View more videos at: http://www.nbcphiladelphia.com.

Here is the monthly Sales Video I do every month for all of my clients. Basically it is a short 2 minute or less video that gives a brief overview of the transactions for the previous month as well as any special things that are going on in town. After the video I provide a slide show as well as spreadsheet data for all of the properties so people can put a picture to the property sold. I have included a link below to both the spreadsheet as well as the Constant Contact Email I send that includes all the info. Constant Contact has been a great investment to combine with the video. As always I welcome any questions.

Here is the Spreadsheet for Cape May Sold Properties for February

Here is my full Cape May Area Newsletter Make sure you sign up to recieve them weekly or monthly if you are interested.

I work in a seaside resort, actually the Nation's Oldest Seaside Resort: Cape May, NJ. A lot of my buyers and sellers are involved in Condo Complexes. There are two main reasons some people here prefer condos:

1) It is a little more affordable and hassle free to own a condo as a second home or vacation property as opposed to a single family,

2) The way Cape May is situated, unless you want to spend $2 Million or more on a Big Beach Front home, the only other Beach Front option is a condo.

That being said, most complexes have average turnover and even though some value has been lost since the height of the market in 2006, they are still selling........except one.

I represent sellers in the Sandpiper Beach Club. This complex was completely renovated in 2006 and is one of the best run complexes in Cape May. These 1 and 2 bedroom Units have Ocean Views, top of the line finishes, and great amenities such as a pool, and fitness center.

Sounds great right? Well the problem is that most of the people in the Complex bought in the height of the Real Estate Boom and had no intention of holding on to the Units Long Term. Now they have to realize that they will probably have to take a 20% hit on that "great investment" they had. But even the owners who have come to realize that still cannot sell their units, why?

The complex has gotten an undeserved bad rep.

1) The complex is run as a "Condo-Tel" which some of you will say is the start of the bad rep. But this complex has very little restrictions and is run better than most Hotels.

2) The management fee scares people away. The complex charges 42% of all rentals.

So here is the problem I have. In one case I have alone bedroom unit in the Upper $400,000 range. That unit brought home $16,500 AFTER MANAGEMENT CHARGES. Yet people say that it is priced too high because of their "perception" that the fees kill your income potential.

Really?????? Then why did another unit in a complex 6 blocks off the beach, in an older building, with half that income just sell for $480,000?

I'm stumped and am determined to change the perception about this complex. Real Estate is an emotional decision sometimes and as a Realtor we are supposed to be able to keep emotions out of it. This is a case where I think the Realtors are the ones who have allowed emotions to cloud their judgment and I am going to make sure that my clients get a far shake.

Cape May, NJ Sold Properties for the Month of January 2011

Every month I do a quick video overview of the previous months Sold properties in the Area and then a slide show to let people see what has sold. In addition to the Video I provide a report for people who are more inclined to look at the numbers.

You can access my Cape May Market Reports and also view all my Cape May Market Videos. All of my clients also get weekly and monthly market updates via email with sold properties and New and Price Reduced properties so they can keep up with the market without doing a lot of work.

So if you or someone you know would like to recieve these emails make sure to sign up.

I hope you enjoy the video.

I can't tell you how many times I have heard this over and over, and over and over.

"Ok, I'll list but I think 6% commission is too much for you to make?"

But why should I expect my seller to understand that I don't get all of that money if I don't educate them? Have any of you watched any of the Real Estate shows on HGTV, or other cable networks lately? What is the first thing that flashes on the screen after the show the Listing Price.....The commission the agent gets!

But we all know that if an agent sells a $500,000 listing they don't get $30,000. We all understand that that number gets divided, sometimes several times before the agent takes home check. So let's see what that $60,000 commission actually turns into for an agent:

First, most sales are completed by two separate cooperating brokers, so first lets share HALF of that with the other broker, after all, they did bring me the buyer.

$30000/2 Now I'm down to $15,000

Next, I don't get to sit in an office rent free! Most offices charge a number of fees, desk fees, supply charges...the list can go on and on. So to make things simple lets say this office charges a 2% fee from every sale to cover these charges (We won't even get into an agent who pays all of this up front!)

$15,000- 2% Now I'm down to $14700

Oh yeah, now most offices have a commission split with the agent. Most have sliding scales depending on production, the more you sell the more you get to keep. Let's say this agent is pretty good and gets 60%

$14,700+ 60% Now I'm down to $8820. Finally I'm done but.....

Did I mention that the total of all the ads your property was in during the listing cost me $1000? Oh and I spent $50 for the open house you wanted me to have, and did I mention the $150 I paid for your video tour?

So after all my expenses I am now down to $7620.Still not bad, but one more thing. Did you know that I am considered self employed and that I have to pay an additional 18% in social security taxes on that income that your employer usually pays for you?

So do you still think 6% is too much for me to make?

Chris Bezaire
@capemaychris
www.facebook.com/capemaychris
609-972-6927
chris@capemaychris.com

Buying a Summer Home in Cape May NJ-

I get asked all the time..How do I start the process of Buying a Summer Home in Cape May? When is the best time to start to look at Buying a Summer Home in Cape May? Can I afford to Buy a Summer Home in Cape May?

The answer to all of these questions, ironically enough, is never the same. One client may be buying a summer home to use for themselves and aren't worried about rental income and carrying costs. In that case the right time to buy is whenever you find the right home!

Some of my clients are planning to use the proeprty as a rental home. In that case, when buying a summer home, the best time to close is as close to the beginning of the summer season as possible. If you buy a house in May and rentals start in June, you get all the deposits already paid as well as the balances. If you don't close till July, you only get the rental income that is left. A lot of times buyers sellers neglect to factor that income, which when you are dealing with $40-$80k in rental incomes, can be substantial.

The bottom line is every situation is different and you need to make sure your agent is in tune to what your needs are when it comes to buying a summer home to make sure that the time is right for you.

So how's that for answering the question without answering the question??? So check out the current inventory and I'll see you in Cape May!

Chris Bezaire "Cape May Chris"

chris@capemaychris.com
@CapeMayChris
facebook.com/capemaychris