It usually starts with a phone call.  “I have a property at xxx Atlantic Avenue that I’m looking to sell.”  That always gets my immediate attention.  Oh boy, a listing!

“Would you like to list the property?”, I ask in anticipation.

“Well, no, I don’t want to list it with a realtor,” he’ll say, “I’m calling all the realtors on the island to let them know I’ll pay a three percent commission to anyone who brings me a buyer.”

I slump in my seat, the hair standing up on my back.  I’m pissed.

“Are you saying that you are NOT going to list with a local realtor?”, I shoot back.  I’ve have this same type phone call a dozen times a year so I go right on the offensive.

“No, but let me tell you all about my property in case you have a buyer.”

“Don’t bother,” I retort.  “In a couple days I won’t even remember your name or the property address.  List it with a local realtor – it doesn’t have to be us – and your property will get the attention it deserves.”

“No, I’m going to sell it myself.  I don’t need a realtor,” he says.  Of course if he doesn’t need a realtor, why is he calling all of us?  Answer – he thinks he can entice some realtor to help him save half the commission expense.

“Well, good luck,” I say in a pleasant voice.  “If you decide to list the property, consider Jewell Real Estate Agency.”  Then I hang up.

I sit at my desk and hope the other realtors on our island understand the implications of helping this guy out.  We are cheating one of our colleagues out of a three percent commission – usually about $10,000 – by going along with this guy’s scheme.  Times haven’t been tough enough on agencies that we should help cut each other’s throats?

And so I say to prospective sellers:  Feel free to use us as realtors, but don’t use us to achieve your ends while depriving realtors of their fair commission.  We’re professionals.  We work hard at our craft.  We’re constantly educating ourselves.

Treat us in our business as you’d expect us to treat you in yours.  Is that too much to ask?

- Mountain Man

Well, Jewell Real Estate Agency was a success right away.  The combination of the local vacation home real estate market taking off in 2001 and people really appreciating the personal service of a mom-and-pop realty company was a hit.  We doubled our anticipated sales earnings the first year and by 2005 City Girl herself sold $27 million worth of real estate properties. 

Our laid back demeanor and knowledge of the market, land use, zoning, and latest trends gave us a very loyal client base.  Because we so enjoy meeting people and establishing lasting relationships, we lived up to our motto “…Where you’re more than a customer, you’re a friend”.

Then the hard times hit.  In 2006, it was like turning off a water spicket.  Our entire vacation home market went from very busy to totally dead.  The phones stopped ringing at our agency and every agency in the Wildwoods.  What just happened?

While local real estate agencies began to go out of business, close satellite offices, or shrink their staffs, we adopted a business plan to keep our advertising at the 2005 levels.  Perception is everything in our business and we had to maintain our presence.  Our plan was sound and we survived the devastating years of 2006 through 2009.  Additional  keys were undoubtably our continuing to answer our phones 6am to 9pm, 365 days a year and our popular newsletter, composed by Mountain Man (a retired writer) and published six times a year.  We mail out about 5,000 a month, plus over 900 are sent free by email to subscribers.

In 2010, the real estate market turned around.  Folks who had been sitting on the sidelines the past four years seemed to lose their apprehension, much of it induced and prolonged by the media.  They figured that they had survived the recession and now it was time to live out their dream to own a second home.  Prices were about 40% less than the highs of 2005 and interest rates were under 5%, giving added incentive.

Now, in 2011, with buyer traffic like we haven’t seen since 2001, we are expanding our Wildwood Crest office.  We are currently hiring sales agents, enlarging our rental department, and have opened a cleaning company – all housed in the building next door that we’ve purchased.

With 10 years under our belts, we look forward to the next 10 years.  We’re excited.  That’s living the American dream!

- Mountain Man 

So what does $201,343,605 mean?  Unfortunately, it’s not how much money we won in the MegaMillions or Powerball lotteries.  It’s not our national debt, it’s not New Jersey’s budget deficit.

It is the total value of all properties sold in the Wildwoods in 2010 by realtors belonging to the Cape May County Association of Realtors.  That amount includes sales in Wildwood, North Wildwood, West Wildwood, Wildwood Crest, and Diamond Beach.  Just think, $200 million changed hands.  Dreams were realized for some, while broken dreams were a reality for others.  For others, it was business as usual.

In all, 673 properties changed ownership.  Let’s break down the numbers:

148 single family homes sold at an average price of $338,950 and were on the market an average of 242 days. 

14 lots sold at an average of $216,817 and were on the market for 243 days average.

15 commercial properties sold for an average of $386,500 after being on the market an average 323 days.

38 multi-family properties sold for an average of $253,318 and were on the market an average of 234 days.

Now the big one.  458 condos and townhomes sold for a total of $137 million plus, with the average price $301,173 after 245 days on the market.

To summarize, 673 properties sold in 2010, or slightly less than two every day of the year.  They were on the market about eight months.  And condos and single family homes averaged over $300,000 apiece.  That’s not bad, and after the market conditions we saw in 2006-2009, it’s quite encouraging. 

As you no doubt noticed, the media finally acknowledged – or most of them did – that the real estate market was making a comeback in 2010.  Here at Jewell Real Estate Agency, our sales were up 205% as compared to 2009.  And guess what.  We have set our goal at again doubling our business in 2011  compared to 2010.  A bold prediction, sure, but we can do it!  The numbers don’t lie.

- Mountain Man

Well, here it is.

We have a signed agreement to purchase the property next door.  A former upscale home decor business, the owners were forced to close their lucrative business due to health issues.  They listed the 100′x60′ property for sale with us, Jewell Real Estate Agency.  The building has about 1,900 square feet on both the first and second floors, plus a third floor for storage.  There are also eight parking spots in the asphalt parking lot, a valuable asset in the busy summertime.

The first floor of the new building will house four full-time real estate sales agents, plus our rental department.  There is also a stockroom with a separate outside rear entrance that will accommodate our cleaning company, Timber Lane Cleaning Service.  The second floor will undergo a makeover next year that will see the two bedroom apartment transformed with the carpet replaced by hardwood floors and the vintage 1980 wallpaper steamed off and replaced with a more modern look.  Then we’ll have room for four more desks for agents, plus a large conference room and full kitchen.

Our current building, a cramped 800 square feet, will continue as the offices for City Girl and Mountain Man – the two broker/owners – and our secretary and right-hand woman, Chris.  With just three of us in the building, we’ll no longer feel squeezed into a small space.  Adding our 50′x60′ property into the mix, we will have 150′ frontage on the main thorofare through the Wildwoods – New Jersey Avenue – with ample parking.  Our current concrete driveway will be utilized as a deck, hosting two outdoor tables with colorful beach-themed umbrellas and chairs.  We will also have an information kiosk there, loaded with maps and pamphlets about local tourist attractions.  The landscaping will feature plenty of flowers and color.

We’re excited.  You should be, too, because when a realtor expands their business capacity, it means good times are right around the corner.  As we’ve said before, the real estate market was the first to collapse in 2006 and it’s leading the resurgence in 2011.  Isn’t that great news?!!!

- Mountain Man

Recently, there has been a small voice in Americana that is extolling the virtues of renting a home rather than owning.  Poppycock!  Perhaps it is a reaction to the government’s threat of revoking the mortgage interest deduction (MID) that makes home ownership less attractive.  That is an ill-conceived idea and it will definitely stall the real estate market just as it’s poised for a recovery.

Let’s look at the MID.  The average 35-45 year old gets a $13,829 deduction off their gross income.  Ages 45-55 get $12,374 deducted, and 55-65 write off $11,099.  The reason it drops with time, obviously, is because at the beginning of a mortgage the principal is a smaller amount of each payment.  Farther into the loan, the interest becomes smaller as the principal increases.  Keep in mind, the amounts mentioned are NOT how much less they pay in taxes, just how much is deducted from their gross income.

The “let’s rent” folks are ignoring several facts.  Renters, by and large, do not exhibit the pride in ownership that results in nice landscaping, replacement of shrubs and pruning of trees, and minor repairs to broken fixtures, windows, etc.  “It’s not mine” is their mentality, and it shows.  There are exceptions, but for the most part their properties are not as well kept as a homeowners.  Folks who own also tend to be more involved in their community and schools.  I can go on and on.

If the MID is revoked, it’s a clear sign that the government has an interest in hamstringing the U.S. economy.  There can’t be any other reason.  Let’s hope that’s not the case!

- Mountain Man

That’s a bit profound, but definitely true. 

That’s why depressed people are depressed and chronically sick people are chronically sick.  It’s also why lively people are lively and upbeat people are upbeat.  It’s mind over matter.  It’s the vibes you put out to the universe that steer your mindset.

The same holds true for the recession of the late 2000 decade.  People who go around moping about how bad things are typically find that things remain bad for them longer.  While they whine about the economy, jobs, real estate, the stock market, etc, others are going out and making a good living and seizing the opportunities at hand.  Insightful folks, those with vision, aren’t complaining about the present but instead are setting themselves up for a prosperous future.  It’s that simple.

Since City Girl and I are realtors, let me run through the real estate gauntlet.  When the Cape May County, New Jersey shore vacation home  real estate market went south in 2006, many realtors went into a funk.  Not all, but many.  They were all doom and gloom and that attitude prevailed in their offices.  They sat around and played cards all day, bemoaning the fact that the phones weren’t ringing and no prospective customers were walking through the door.  In the next four years, many offices closed up shop and the ranks of licensed realtors in the county board shrunk by one-third.

Meanwhile, Jewell Real Estate Agency took a different approach.  We saw it as a break from doing so many real estate deals and an opportunity to focus on the future and to tweak our operation.  In the boom years of 2002 through 2005, we didn’t have a chance to step back and analyze our business.  The money was flowing so we were content.  Our inward look began by us realizing that we couldn’t cut back on advertising.  In the hard times you have to maintain your presence.  The offices that cut back or even cut out advertising were amongst the first to go belly-up.

By mid-2008, we decided to expand by adding a second floor to our Wildwood Crest office.  We were positioning ourselves to be ready for the next boom.  It wasn’t until the final day of 2009 that we received our final approvals to go forward with the construction.  The winter of 2010 delayed us further and it wasn’t until late in the summer that the complicated concrete footing and block work was completed.  A busy autumn, with a renewed flush of real estate sales and prospective buyers gave us the same feeling we got in 2001 – the local real estate market was coming back.

Buoyed by the surge in activity and our own optimistic outlook on real estate and life, we decided to undergo a full-fledged business expansion.  The time was right.  We would catch the real estate wave while it was still far from shore rather than wait for the wave to nearly break at the beach.  Too many folks jumped into real estate near the end of the 2002-2005 boom and missed the ride to the top.  They crashed and burned.  

We would take our philosophy of personal attention and unbridled integrity and select a few top-notch local agents to join our real estate family.  We would offer four desks for sales agents, two for rental agents, plus house our new Timber Lane Cleaning Service and its 10 employees.

So how are we expanding without completing the construction of our second floor?  Stay tuned.  The answer comes in a couple days.

- Mountain Man

Not so fast, my friend.

Sure, the national unemployment numbers are still tough to swallow.  And yes, we are still seeing more vacant store fronts popping up.  Discretionary spending is off, too, though you have to wonder when you see folks descend on a mall and drop hundreds of dollars on trivial junk for Christmas.

But here in Cape May County, New Jersey at the shore, the tide has turned in the real estate market.  Pun intended.  With interest rates hovering around 4% and prices nearly half of what they were in 2005, sales have been brisk.  We’re also seeing that folks are tired of sitting on the sidelines and after five years they ackowledge the opportunity is there to finally purchase and own a vacation home at the Jersey Shore.  If they were 55 years old back in 2005, they’re now 60 and not getting any younger.  I call it the “now or never” syndrome.  If they waited much longer to buy a second home, some would probably just say forget it.

Back in 2004, we began telling our clients that the days of buying pre-construction condos, then flipping them a year later the day after closing, were over.  We saw an overabundance of new construction and sensed that the market was shifting.  Unfortunately, we were right.  We are getting that same feeling again, except this time it’s a turn in the other direction. 

We believe that the vacation home market leads the way.  Our real estate market was the first to fall apart, and it is the first to recover.  And why not?  Folks who can afford second homes usually own their own business or they are high enough up on the corporate ladder to have a solid income.  When the national media began their gloom and doom predictions, the frugal upper and upper-middle class folks pulled back and stopped spending.  Now that they’ve endured five years of a recession and the sky hasn’t fallen in, they’re back.

Here at Jewell Real Estate Agency, we have sold 2.5 times more properties this year than in 2009.  We’re not bleeding greenbacks anymore.  Not only are we relieved, we’re very optimistic.  No doubt, it will take the primary home market another two years to catch fire.  But when it does, all will be well in Whoville.

- Mountain Man

This past year, our thoughts in the warm months turned to many other diversions.  First up was The Free Meal Center, Cape May County’s first-ever daily soup kitchen.  We formed a non-profit organization on January 25, 2010 and took possession of the 4,275 square foot building situated on 2.38 acres on March 15th.  We spent the next eight months gutting the interior and improving the grounds and exterior of the building, thanks to the hundreds of dedicated volunteers who pitched in to make it a reality.  We received our building permit the day before Thanksgiving and now the renovations can proceed.

We also began the second story addition to our real estate office in Wildwood Crest.  The complicated footing is now in place, with a three-foot concrete block foundation above.  When the warm weather returns, we’ll begin building skyward.

We also began site work on our restaurant/sports bar in Green Bank, West Virginia.  We purchased the seven-acre bottom land on July 1st.  The beautiful property has 750-foot frontage on Routes 28 & 92 and 1,050 feet along Deer Creek, a 50-foot wide river that takes water from the Allegheny Mountains to the Greenbrier River.  The site work is just about done and the riverfront has been transformed into a beautiful setting. 

As you can see, we keep ourselves pretty busy.  And so, you’ll excuse us if we only find the time to relax and write blog posts in the winter.  Sit back and enjoy the next four months of opinions and observations on real estate and life in general.

- Mountain Man

The township completed a full-blown revaluation in 2007, raising the total value of all properties from $1.5 billion to $4.73 billion.  While the new figure was more in line with reality, it came at the time when the real estate market was in a deadfall.  Property values were dropping about a half percent per month.

A petition signed by 1,500 property owners against the new valuations put the township on notice to expect plenty of costly tax appeals.  It would also cause an imbalance in values, since those folks out of a total of 15,930 property owners in the town that didn’t bother to appeal would unfairly be picking up the new burden.

Township Tax Assessor Art Amonette undertook an in-house reval in 2009, which cost just $25,000 instead of the $1 million price tag associated with a full reval.  Smart thinking, big savings!

The completed revaluation shows that the value of the township did indeed decline, from the previous $4.73 billion down to $4.1 billion, a drop of about 15%.  About 15,500 properties had their values reduced, while another 400 saw increases.

The range of change had some properties dropping 30%, as opposed to a high of a 10% increase.  Anyone who’s value dropped more than 15% will see a lower tax bill.  A reduction less than 15% will see the owner’s tax bill increase accordingly.

So once again, the playing field appears to be leveled for Lower Township property owners.  Town officials being proactive was a wise decision all around.

- Mountain Man and City Girl    http://www.MountainManandCityGirl.com

The blogsite of Jewell Real Estate Agency, Wildwood Crest, NJ    http://www.JewellRealEstateAgency.com

In 2005, there were 3,628 properties sold.  The asking price total was $2.01 billion and they got $1.92 billion, meaning sellers got 95.5% of asking price on average.  The average property was listed at $555,000 and it sold for $530,000.  (All prices are rounded off).

In 2006, there were 2,386 properties sold, a volume drop of 34% from 2005.  The total asking price was $1.43 billion and sellers received $1.34 billion, or about 94% of asking price.  The average asking price was $601,000 and the selling price averaged $563,000.  Did you just notice that the 2006 price average was up 6% over 2005?

In 2007, there were 2,279 properties sold, a slight drop of 4% from 2006.  The asking price total was $1.33 billion and sellers received $1.28 billion.  The average asking price was $583,000 and sellers averaged $539,000.  So even in 2007, prices were still higher than in the benchmark year of 2005.  Of course, sales were off 37% in volume in 2007 from 2005.

In 2008, there were 1,901 properties sold, a drop of 16.5% from the previous year.  The total asking price was $1.07 billion and they got $978 million, or about 91% of asking price.  The average property listed at $564,000 and sold for $514,000, which is still in the ballpark of 2005.

In 2009, there were 1,879 properties sold, a 48% drop from the gold rush era of 2005, but still close to 2008 totals.  But here’s where the numbers dive.  The total asking price was $889 million and sellers received $813 million.  The average listing price of $473,000 went for $432,000.  Selling prices dropped 16% from 2008.  That’s substantial.  Hopefully the market found the bottom and will now level off.  Short sales were a big part of 2009, driving down price averages.

Here at Jewell Real Estate Agency, our figures for sales and commissions from 2001 to 2009 tell our story.  Our most sales, in order, were 2002, 2004, 2005 and 2003.  Those four years had double – and sometimes triple – the sales volume of 2001, and 2006 through 2009.  Our best year of gross commissions was 2005 (no surprise there), followed by 2004, 2002, and 2003.  Again, 2001 (our first year in business, so it might not be a fair comparison) and 2006 through 2009 were the dog years. 

We do expect 2010 to be our best year since 2005.  In January, we’ve already had 25% as many transactions closing as in all of 2009.  And the phones are ringing and the offers are coming in.  Yeee-haaa!

- Mountain Man and City Girl    http://www.MountainManandCityGirl.com

The blogsite of Jewell Real Estate Agency, Wildwood Crest, NJ    http://www.JewellRealEstateAgency.com