After a whirlwind two day trip to the Midwest, I can declare that Chicago is an amazing town with a great affinity for Southwest Florida.

Joel Schemmel and I visited with over 200 real estate agents from the three top firms in Illinois including Sudler Sotheby’s International Realty, Crawford Sotheby’s International Realty and BRE Sotheby’s International Realty. Over two days, we promoted new home projects including Seagrove, The Founders Club, Desoto Grande and Devonshire Park.

We expect to see a number of significant sales as a result of the trip including an overwhelmingly positive reaction to our new fractional ownership project Desoto Grande www.desotogrande.com.

Tax records indicate a larger percentage of Illinois residents own second homes in Sarasota and Manatee counties. In fact, residents of Illinois make up the second largest percentage of out of state visitors to our website.

Many thanks to all those who made the trip such a success.

www.schemmelrealestate.com

www.sudlersothebysrealty.com

www.crawordgroupsir.com

www.bresothebysrealty.com

Why is the real estate profession a haven for mediocrity?

1. There are virtually no barriers to entry.
2. Many brokerages are willing to hire anyone who can fog a mirror.
3. The local, state and national Realtor® associations are willing to accept most anyone willing to pay the annual dues.

Isn’t it ironic that with little to no training, someone can become licensed to oversee the single largest financial transaction most consumers ever participate in?The industry needs to create the equivalent of Consumer Reports for rating and ranking real estate agents and brokerages. By working together to define and implement minimum standards of performance, we can dramatically improve the real estate buying and selling experience and go a long way in restoring credibility and dignity to the profession.

My comments have nothing to do with limiting competition and in fact should create more. Educated consumers will seek out agents who can deliver a quality experience not just a listing in the MLS. As a result, Realtors® and brokers will begin to invest time and resources in delivering more innovative approaches to selling homes.

As the Sarasota and Manatee real estate market comes to a soft landing from the dizzying heights of 2005, there appears to be an interesting phenomenon occurring. Specifically, large numbers of real estate agents are afraid to take listings.

In the recent past, a good listing was the near certain ticket to a commission check in a short period of time. Yet more and more, we are hearing about real estate agents who are afraid to sign listing agreements.

Why are many Sarasota and Bradenton realtors afraid to take listings?

1. The potential commission is no longer a sure thing and requires an enormous commitment of time and capital.
2. Sophisticated consumers continue to become more educated and are asking tough questions and demand specifics.
3. Discussions have shifted from how much commission will be charged to how much money the agent will spend to market the home.
4. Many agents and brokerages do not have the financial wherewithal to commit to the industry benchmark of 13 to 25 percent of the total commission on marketing.

In the next few months many home sellers who signed six or twelve month listing agreements in mid to late 2005 will be seeking new agents who are equipped to get the job done. I encourage sellers to keep asking tough questions and demand specifics. They will find qualified agents who have the time and financial resources to successfully market and sell the property. In exchange, sellers must be prepared to pay top dollar for the services performed and set a realistic asking price based on recent comparable sales.

As we approach the fall market, we continue to see a fundamental disconnect between buyers and sellers in the Sarasota/Manatee marketplace. All too often, agents are seeing negotiations end without a successful outcome.

The Florida high end real estate market is driven by buyers purchasing second, third or fourth homes which are discretionary and emotional decisions based on want not need. This fact combined with the perception and partially reality that there is a high supply of luxury properties gives buyers the confidence to make lower offers with more aggressive terms with the expectation that it is a take it or leave it scenario for the seller.

On a positive note, there is a significant pool of buyers on the sideline waiting for the perfect home or right opportunity to present itself. Since mid 2005, a large percentage of buyers have held off purchase decisions due to media hype of a real estate bubble, hurricanes and gut feeling.

In general, it is time for sellers to reevaluate their sales price getting more in line with sales from the last six months rather than the middle of 2005. If you are a seller who is not in a position to sell at a price the current market supports, the best thing to do is take the property off the market for the next 12 to 18 months. While this might be painful for some in the short term, the decrease in supply will improve market conditions faster and return balance to the market.

On a positive note, properly priced properties are getting great showing activity, offers and successful closings.