Naples Property Management

Premier Property Management Will Be Sponsoring The Brew Ha Ha Fundraiser

Thu, 18 Aug 2011 13:23:29 0300

Premier Property Management is proud to announce our sponsorship of The Brew Ha Ha Fundraiser.

The Brew Ha Ha Fundraiser is a fundraiser to benefit children with Autism and Developmental Disabilities.

The event is being held on August 20th from 6pm-10pm at Boston Beer Garden in Naples. For more information and ticket purchase, visit the Brew Ha Ha ticket registration.

Linkage in Income, Home Prices Shifts: Survey Finds Some Homes Underpriced

Thu, 18 Aug 2011 13:15:10 0300

Since March 2007, NABOR's inventory has been reduced by over 5,000 units. In April of 2007, NABOR started tracking the months of inventory. In the first month of tracking, April 2007, NABOR reported 34.78 months of inventory. Since the first month of tracking, the inventory has been reduced substantially over the years and demand has picked up. As a result, as of July 31, 2011, NABOR is reporting 8.83 months of inventory, which is the lowest since we started tracking months of inventory. According to Zillow, Naples is just about back to historic norms!

Case Shiller: Here Are The 15 Housing Markets That Will Fall The Most By 2012

Thu, 18 Aug 2011 11:46:19 0300

Reprinted with permission of Michael Lissack lissack@lissack.com (239) 254-9648

It seems the media does not take the time to explain what Case-Shiller is and how it is to be understood.

Lets start at the beginning:

The Case-Shiller Index (NOT THE FORECAST) looks at single family houses (and only single family houses) which have sold multiple times in the data base and tries to establish “like to like” pairings. The Index ignores condos and all other forms of non-single-family housing. It uses 2000 as its base year. The Index (NOT THE FORECAST) is HISTORICAL only.

Further it looks at the median transaction number. Medians are the point where 50% of the data is higher and 50% is lower. The Case-Shiller Index correctly notes that the median transaction value has dropped.

What the index does not tell you is how prices are distributed around that median, what effect including condominiums would have on the index, and the bias involved in looking only at “repeat transactions.” For example, if a newly constructed house was sold by its original purchaser (and we have many such sales in Naples) that sale is EXCLUDED from the data base because the original purchase from the builder was never included. Only when that home sells again (to its third owner) will the data be included. Thus over the past few years the vast majority of the sales included in the Case Shiller index are older homes in Golden Gates Estates and on Marco with a sprinkling of homes in Naples proper. Since Golden Gate saw the wildest swings in prices, the excess of data drawn from that area versus say North Naples (where the bulk of the post 2000 construction has been) results in an excess downward weight on the Index.

The Index is NOT the FORECAST. The Forecast looks at the trends in the Index value and then adjusts for the ratio of median prices to median reported incomes. It then further adjusts for unemployment and demographics. Again the Forecast is not about anything other than medians. What the decline in the forecast median tells us is NOT that values will collapse but rather that builders will perceive a demand for homes in the $100k to $250k segment and will build those homes. The greater the number of such homes built and sold the lower the median price (since the median is where 50% of the sales are above and 50% are below).

This version of the Forecast is dead on target. Numerous builders (DR Horton, Lennar, Pulte, GL Homes, WCI) have announced projects in the $100k to $250k price range. The builders see what the forecasters see – increased demand at the low end.

The “doom and gloom” “market collapse” is thus pure nonsense. In reality what the forecast means is that the low end will bloom.

The forecast says NOTHING about individual home values.

But that would not be a sexy media story.

******************************************************************

as my broker wrote to all of us

Let's look at some data... The Naples inventory in March of 2007 was 12,440 properties. It is now down to 7,010 properties. That is a huge reduction in inventory. We all know that property values are a function of supply and demand. The supply has seen a huge reduction. Ok, what about the demand? For the first 10 days of August 2010, Downing-Frye agents turned in 53 pending sales. For the first ten days of August 2011, Downing-Frye agents have turned in 104 pending sales contracts. That's a 96% increase in pending sales for the first ten days of August for Downing-Frye!!!! Now, let's look at the closings. Downing-Frye agents have participated in 2,064 closed transactional sides for the first seven months of 2011. If you throw out the two " bubble years ", I believe that this is the first time we have ever participated in 2,000 closings in the first seven months of the year.

****************

From the definition of the Forecast

http://www.economy.com/csi

Key Features

The model identifies long-term influences on house prices, such as income trends and demographics, and cyclical factors such as unemployment and changes in mortgage rates.
Analysis and forecasts are based on a fully specified supply-and-demand model.

Forecasts for baseline and alternative econoconditions.mic scenarios. Forecasts house prices under stressed economic

In addition to the baseline forecast (the most likely economic scenario), Moody's Analytics forecasts the CSIs under alternative economic scenarios. Understanding the future path of house prices in relation to economic stresses such as oil price shocks, financial market distress, dollar devaluation, and others is critical to successful strategic planning and risk management.

The county house price forecasts are driven by county data on median household income, the unemployment rate, mortgage interest rates, population growth, and metro area or state house price trends. Moody's Analytics currently forecasts the aggregate index for 367 counties, updated monthly.

********************************************

The doom and gloom has been in the "forecast" since last November (see attached)

I hope the above helps address your concerns (and yes I do have a doctorate and 20 years in finance so am not just a "know nothing")

As always please call Ruth Anne or I with any questions

Michael Lissack

2338 Immokalee Rd #292 Naples FL 341101445
phone (239) 254-9648
Fax: (239) 254-9649
Cell: (239) 404-5079
www.lissack.com, www.mynaplesagent.com
www.isce.edu, www.emergence.org

Michael conducts his real estate activities through Michael R. Lissack PLLC if you desire no more future mailings please send an email to lissack@lissack.com make sure to include the email address you want excluded

The Resident In Bankruptcy

Mon, 20 Jun 2011 12:00:51 0300

For many property managers, the eviction process is a source of great frustration. Managers must be patient, as budget cuts have slowed down the court system and the sheriffs’ civil process divisions. In addition, the property manager may be dealing with a resident who is contesting the eviction, causing hearings to be scheduled by the judge. Meanwhile, the property manager’s account receivable balances grow. This eviction process becomes even more complicated when a resident near or in the eviction process files for bankruptcy. Therefore, it is crucial at this stage to immediately consult with an eviction attorney. Although this may be a stressful time, as the bankruptcy process will be uncharted territory for many property managers, if you follow the advice of your eviction attorney, in most cases the resident will still be successfully evicted. One key point to remember is that once the resident files for bankruptcy, the property manager is prohibited under federal law from undertaking any collection or possession activity without first obtaining permission from the Bankruptcy Court, or the property manager will risk substantial penalties and liability.

Concessions and the Property Manager

Mon, 20 Jun 2011 11:57:49 0300

A concession is a thing of value, usually in the form of a rent discount, given to a resident as an inducement to rent at the apartment community. Giving a rent concession is a common and effective marketing technique when trying to increase occupancy. The first month may be free, there may be a reduced security deposit, some product or service is given, or most commonly, the rent for the full or partial term may be reduced. A clear understanding of the concession is crucial to avoid problems later in the tenancy when the resident is in default, gets evicted or otherwise breaks the lease prior to the expiration of the term. A concession addendum should always be used rather than simply writing the terms on the special stipulation section of the lease, and this concession addendum must clearly spell out all the terms and condition of the concession. It should never be complicated, convoluted or ambiguous.

Is The Unit Ours Yet?

Mon, 20 Jun 2011 11:54:31 0300

There are three ways a landlord obtains possession of a rental unit: surrender, abandonment or eviction. Abandonment and surrender are covered here. Once the landlord has obtained possession by any of the three methods, he may be required to deal with the resident’s remaining personal property, if the resident has left any behind.

2011 Hurricane Season - Are You Prepared?

Mon, 20 Jun 2011 11:47:13 0300

June 1, 2011 marks the official beginning of hurricane season for 2011. Do you have your mold remediation, water extraction professional and roofer on speed dial? Business interruption insurance? Do your owners expect you to take precautionary steps that are not detailed in your management agreement, such as installing the storm shutters? Is your data being safely backed up each night offsite? Do you have a spare computer loaded, up to date and ready to go?

Naples Premier Property Management Introduces "Tenant Guarantee"

Thu, 25 Mar 2010 16:46:17 0300

Naples leading property management company is offering yet another ground breaking product, the Tenant Guarantee.

Naples Florida Property Management Company Introduces "100% Owner Satisfaction Guarantee"

Fri, 19 Mar 2010 11:33:47 0300

The leading Naples, FL property management company has introduced a ground breaking new product, the 100% Satisfaction Guarantee! This new offering is aimed at revolutionizing the local annual and seasonal property management industry.

Naples Property Management - Are You Getting Robbed By Your Property Management Company?

Wed, 17 Mar 2010 16:53:27 0300

So, you think your property management fee is only 10%? Think again! Here is a common, deceptive practice that your residential property management company doesn't want you to know about!