Raanan Katz RK Centers Miami

Raanan Katz on Miami Commercial Real Estate

Misconceptions About Working in the Real Estate Industry

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Misconceptions about working in the real estate industry

The real estate industry is one of those industries where there is a lot of potential to be very successful and make a great living. However, there are many misconceptions about working in this field for a variety of reasons. One reason could be that the whole process of buying and selling a home can seem complicated and somewhat of a mystery to those who unfamiliar with it. There’s also the way agents are depicted on television which is typically meant for entertainment but at the same time gives off the wrong impression about the job as a whole. To clear things up a bit, here are some of the misconceptions about working in the real estate industry.

 

This job is easy

This is a very common misconception out there as most people see the job as simply showing people houses or apartments and then selling them. However, there is so much more work put into it that the job almost seems a bit undervalued. Some of the daily challenges that agents face are marketing “not so marketable” properties, managing a huge client database and supervising heated negotiations, and this is all on top of the stress that comes from a commission-based income in a pretty unstable market.

 

You will make a lot of money

This is another common misconception with the job, and while it is true that the earning potential is great, sadly it is not the case for everyone. One has to realize that the average commission is six percent of the total sale price and then that commission is split between both the buyer and seller’s agent and then they each must split that with their brokers. On top of that, most agents are essentially working for free until that payout. So before they receive that big payout in the end, they would have already been working for months without a regular paycheck.

 

You will have a pretty flexible schedule

While it is true that most agents are not required to work the typical 9-5 schedule Monday through Friday, that doesn’t mean that they can simply abandon their office at will, or go on vacation at a moment’s notice. You have to remember that you are working with your clients and sometimes will have to cater to their schedules as well. You will have buyers who are constantly wanting an immediate showing of a new listing and then there will be sellers who want you constantly monitor leads. So while it is true you can choose how flexible you want to be, you have to take into consideration the needs of your clients and be available when necessary.

Ways to Prepare Your Home For An Appraisal

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Ways To Prepare Your Home For An Appraisal

Hot weather conditions, such as it is in Florida, can lead to faster deterioration of housing and the foundations they sit on. Heat causes ground shrinkage that can split concrete and unsettle the foundation, not to mention the wear and tear on air conditioning units from overuse. Fortunately, there are ways of delaying long-term damage particularly if a person is having a home appraisal done. Home appraisals are required in order to sell or even refinance for that matter. With that being said, it is essential to prepare your home ahead of time. Expert appraisers will tell you that there are a few things one can do to maximize the value of a home.

 

One of the first things to consider is finding an appraiser that’s been in the industry for a long time, has a good comprehension of the territory and is state certified. An appraiser with these attributes will be able to better detect market trends and changes. Curb appeal is also a significant factor in attaining home worth. Clean up any clutter, trash, weeds and any dead or browning plants. You want the yard to be as green and vibrant as possible. Cutting the grass right before is a great trick as it will not only be more pleasing to the eye but also have that just cut smell. Nice landscaping will lead to a positive and significant lasting impression.

 

Another great tip is to make sure all appliances, doors, doorknobs, windows, screens, carpet, light switches and fixtures, plumbing and other items are in good working condition. This should be done even if you have to hire a service repairman. It is worth the effort to fix any chipped or peeling paint. Leaky faucets should also be repaired. Damaged items will dramatically devalue your property because the appraiser will compare it to houses that are actually more aged than yours is. Having a list of repairs and replacements you have made throughout the years is helpful. List the costs next to the repair or have receipts attached. Provide the appraiser with any land surveys as well.

 

Ensure all areas of the home are accessible especially the attic and crawl spaces. Property value is determined through a complex analysis of information including size, condition, comparable sales of other homes in the area, location and how close the home is to vendors and other resources. Appraisers are generally unbiased, but it can’t hurt to make their visit a pleasant one. The temperature of your house should be comfortable, all pets should be secure, and the house should be clean and organized. Performing these tasks ahead of time will increase your chances of a higher home assessment value.

Natural Sights to Visit in Florida

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Natural Sights in the Miami Area - Raanan Katz (2)

 

There’s no denying that Florida is filled with nightlife and excitement, but there’s a different side to the this area that few rarely think about: the natural sights of Florida. Florida offers tourists and residents the chance to take in the beautiful wildlife and plant life that is unique to the area. The following places are not necessarily sought after by tourists, but they do offer visitors the chance to get in touch with nature.

 

The Florida Keys

Located at the tip of Florida, the Florida Keys are on many people’s checklist when it comes to visiting the area, and it’s no surprise why. The 120 mile stretch of the Florida Keys offer crystal clear waters, a chance to see sea life like manatees and dolphins. Take a swim or, f you’re feeling adventurous, try snorkeling in the water to truly experience the serene setting.

 

Timucuan Ecological & Historic Preserve

Located in Jacksonville, the Timucuan Ecological and Historic Preserve gives visitors a history lesson in addition to a beautiful area to look at. Before Europeans came to America, this area was ruled by Timucuan Native Americans and for 6,000 years this area was preoccupied. Learn the ways that humans were able to take advantage of the land throughout the centuries and what species of animals also live in the area.

 

Gulf Islands National Seashore

The Gulf Islands National Seashore stretches across the beaches of Mississippi and Florida, with many different spots along the way to visit. Along the shores, you can take in the natural beaches, hiking areas, wildlife, and even historic sites. For example, the Fort Pickens Area is home to Fort Pickens, one of 4 forts that were built to defend the nation. It was used throughout the Civil War and was even modernized years following the war. Tours are available daily on the fort.

 

The Everglades

The American Everglades is a huge reserve in the south of Florida that covers 1.5 million miles. Within the reserve lives hundreds of species of protected wildlife, hiking, canoeing, and events throughout the year. Be a part of a tour group and learn about the endangered species that live in the area, or learn about the effects of climate change and unique ecosystems that thrive in the Everglades.

Computer Algorithm Designs Perfect Prefab Houses

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Computer Algorithm Designs Perfect Prefab Houses - Raanan Katz

Let’s say you want to build a new house or a building for your backyard. Where would you start? Building a house from the ground up takes months of planning, and insight from architects, building planners, and your local government for zoning permits. There’s no denying that the process of building a home or structure is a large task from start to finish, which is why many people opt to purchase a home that is already built, but what if the process was made infinitely simpler?

 

A startup company in Los Angeles called Cover has been taking the headache out of home building, allowing a computer algorithm to design a prefabricated home or structure, based on your specifications. Prefab buildings typically come with a few different layouts, depending on the company, and you have the opportunity to tweak and adjust certain aspects of the design based on you and your family’s needs. Instead of looking at layouts, Cover sends a questionnaire to their prospective clients, asking both basic and specific questions about what they’re looking for in their home, what appliances are essential to have, and how many people are expected to be in a room at any given time. The computer then takes this information that is provided and comes up with the best possible layout for their home.

 

The best thing about working with Cover is the fact that they take on all of the work once you hire them. They get the building permits, provide the design, and install it on your property. This guesswork of working with different contractors, designers, and architects is completely eliminated from the equation.

 

Right now, Cover specializes in outdoor structures that would be used in addition to the client’s current home, like guest houses and pool houses, however, they are able to create prefab homes on any property.
Their design is generally pretty modern. The homes have clean lines and are easy to maneuver and has interesting storage capabilities. At this time, the average price for a single guest room is $70,000, around $130,000 for a studio with a kitchenette, $160,000 for a one-bedroom and $250,000 for a two-bedroom structure. For those that are looking to add on to their property or create a whole new home, Cover offers a unique choice that takes the guesswork out of homebuilding.

What You Need to Know Before Moving to Florida

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What You Need to Know Before Moving to Florida

 

To many people, moving to Florida would be a dream come true. Harsh winters and expensive costs of northern large cities can make those in the north look to the south for better options. It could be a great move, depending on what you’re looking for, but there are things to consider before making the big move to Florida.

 

There are Distinct Areas

 

In Florida, there are distinct areas of Florida: Northern, Central, and Southern Florida. Each section has its own sense of culture and there are distinct features for each area. For example, there is a huge difference between living in Miami and living in Fort Lauderdale. My advice is to research each area and, if possible, visit each area so that you have a good idea of what kind of place you’ll be moving to. Some areas are busier than others, and some may have more employment opportunities than others. Within each of the areas in Florida, there are even more distinct cultural areas within them. For example, within Miami, there are many distinct districts, each having their own unique personalities.

 

Cost of Living

 

Compared to the majority of the United States, the cost of living in Florida is in line with other parts of the country. According to cost of living, the state of Florida comes in 99 out of the 100 national index and living expenses and cost of goods is in line with the national average. However, the cost of living in different areas of Florida can be drastically different. The average rent amount for a one bedroom apartment in Miami is $2025, however in Gainesville, the average drops dramatically to $955 per month. Do your research before the move to see how your current location compares to your new destination in Florida by visiting the Cost of Living Calculator on Nerdwallet’s website.

 

Tourism Capital

 

It’s no surprise that Florida brings the tourists. With Disney World, Universal Studios, and the beautiful Florida beaches on every shoreline, Florida is definitely a tourist destination. Florida cities like Tampa and Miami are regularly visited by tourists, specifically spring break students. If you’re planning on living in one of Florida’s tourist cities, just know that the traffic is probably going to be difficult to navigate at times and it could get busy during the months of major tourism.

 

More Miami Luxury Real Estate: Aston Martin and The WorldCenter

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Miami has long been known as a prime market for luxury real estate. Despite the most recent turmoil in the city’s luxury market, the general trend is an increase in Miami real estate valuations. This is by in large due to the market’s adapatation to a new wave of buyers. Two new additions to the skyline are set to make their appearance in the coming years. Here’s a look at them.

The Aston Martin Residences

Aston Martin designs cars and yachts, did you know that they are also in the architecture game?

In 2014, the Coto family of Argentina purchased a small site of land off of the Miami River. At the time and still to this day, the land is regarded as the highest price per sq. ft. of undeveloped land in South Florida. Now on that land a new luxury property is set to be built; one that will join the ranks of Porsche, Armani, Fendi, and Missoni-backed properties in the city; one that will be built in partnership with Aston Martin.

You might know of Aston Martin as the producer of James Bond’s cars in every Bond movie since Goldfinger or maybe you already own one yourself?  In partnership with Coto, Aston Martin will be building the Aston Martin Residences—a 66-story condo tower replete with fitness centers, multiple lobbies, and a spa. It’s part of the companies initiative to be present “in all of the cities where it’s important to be,” says Katia Bassi, vice president of the company.

Signifying the city’s inextricable ties to the ocean, the skyscraper’s sail-shaped form was conceived by local firm Revuelta Architecture in collaboration with Argentina-based Bodas Miani Anger.

via Forbse.com

The Coto family, the Argentinian backer of the project is banking on three things working in the developments favor: brand appeal, an excellent location right on the Miami River and Biscayne Bay, and the ability of the Coto family to finance the project without a construction loan.

Although pricing is yet to be determined, buyers should expect roughly $1,000 per sq. ft., in line with Miami’s most competitive luxury real estate properties. Sales are set to start in March of 2016 and construction is to commence shortly thereafter, with a completion date set for 2021. The hope is that by that time, the luxury climate will again return to a setting that is favorable for investors.

Where other big local developers like the Related Group and Alan Frena have opted to delay luxury development amidst the untoward state of the market, the Cotos and Aston Martin are braving forward with what may very well be a new staple to the Miami skyline. And it looks like they won’t be the only new addition.

Miami WorldCenter

Little more than a year ago, an expanse of abandoned warehouses dotted Miami’s Northside. Recently, the foundation was poured for Paramount Miami Worldcenter, one of several large structures that will make up America’s second-biggest urban development. The Paramount Miami Worldcenter will clock in at $500 million, 700 ft. tall, and will host 60 floors of residential real estate. Alongside the Paramount will be an expanding array of residential, dining, entertainment, hotel, convention center, and transportation structures—all of which will be contained within a six-block retail and residential promenade. Additionally, the center will serve as the epicenter of the MetroMover and MetroRail elevated transit systems.

via ParamountMiami.com

The Paramount Miami Worldcenter will offer 512 units with 10-foot ceilings and outdoor “living room-style” terraces. Penthouses start at $4 million and one-room residences start at $700,000.

Art Falcone and Nitin Motwani are the Founding and Managing Principals of the project, respectively. They will be partner with The Forbes Company and Taubman for retail development, MDM Group for Convention Development, and Elkus Manfredi Architects for Master Planning. This impressive entourage aims to make something that will truly revolutionize what it means to be in downtown Miami.

One feature that will set the Paramount Miami Worldcenter apart is its private amenity deck—planned to be the largest in the world—that will be located 90 ft. above street level. On the deck, residents will be able to access pools, bungalows, tennis courts, soccer fields, and more. Then, on the 60th floor, residents can visit an astronomy observatory and a plunge pool from which they can take in panoramic views of the Miami and its environs. This level of verticality, of capitalizing on the sky will be a huge game-changer in Miami real estate and luxury real estate as a whole.

Thanks for reading.

Raanan Katz

Miami Real Estate: December

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US Home Prices Rise, but not in Miami

Home prices, raanan kats

Home prices rise across the nation, but not in Miami

Throughout the Fall, the nation saw a rise in home prices. The Standard&Poor’s/Case-Shiller 20-city home price index rose 5.5 perecent between October 2014 and October 2015. Home values rose about 5% during 2015 and while they did so, unemployment decreased down to 5%. A better job market is making for more people buying homes. However, home listings haven’t been able to keep pace. So what we’re getting is not necessarily in increase in homes sold, but an increase in the price of each home sold given competition for what few listings are available. This limit in inventory seems to be serving newly listed homes better than existing homes. Existing homes dropped 10.5%. Mortgage rates are looking stabilized thanks to 30-year fixed-rate mortgages averaging less than 4%, whereas mortgage rates have traditionally hovered closer 6%. This increase in housing prices has primarily affected San Francisco, Denver, and Portland, Oregon. Miami, in addition to Tampa, Detroit, Minneapolis, and Cleveland, is still maintaining lower pre-recession prices.

Matheson Estate Goes for $47 Million

matheson estate, raanan katz

The new mansion built on the Matheson Estate

The picturesque Matheson Estate located on Key Biscayne just sold for $47 Million. The anonymous new owner has built a modern mansion on the property. The Matheson Estate was once home to the wealthy industrialist W.J. Matheson during World War 1. In 1908, Matheson bought a 1,700 acre estate and built an opulent mansion he called Mashta (“resting place” in arabic) House. in the 1930s the house was badly damaged by storms and was eventually abandoned. Years later in 1989 it was acquired by Fernando Caballero for $1.3 million. And just the other day it was acquired for $47 million.

South Beach

the webster, south beach, raanan katz

The Webster, South Beach

“This beachfront neighborhood wasn’t the place where Art Deco was created, but between the spacious, sleek hotels and pastel colors, its appear like one of the truest expressions of the form.” The real estate website Curbed.com recently listed South Beach as one of  10 Neighborhoods that Influenced US Architecture. Some highlights to see include The Webster, The Carlyle, Cadillac Hotel, The Delano, and the Bass Museum. 

Miami: A Billionaire’s Market

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Miami is a hot market. Whether it’s the trendy Design District or the bustling Ocean Drive, real estate is one of the most attractive elements of the Floridian city. The city’s glamor is quantified in its subsequent real estate trades: everyone wants to own a part of Miami.

Last month, one of the richest people in the world purchased an entire block of the city in one of the largest real estate deals in Miami-Dade history According to an article from The Real Deal, an entire block of Miami Beach’s Lincoln Road traded hands for $370 million to the 79-year-old self-made Spanish billionaire Amancio Ortega.

zaraOrtega, whose fashion empire includes the well-known Zara brand is currently ranked by Forbes as the world’s fourth richest person, pegging his wealth at $70.2 billion.

In 2012, Forbes wrote that Ortega “seems to be using more of his free time to invest in real estate. He has pulled money from Spanish investment funds and poured it into buildings through his Ponte Gadea real estate investment firm.”

Investors started leasing the property in 1999, paying a total of $12 million for spaces that now go for $300 per square foot. Michael Comras was one of these investors who sold the property, saying, “It’s a project that we started 16 years ago, and Jonathan and I felt that we had really created one of the most incredible retail blocks on a High Street around the world,” The timing was right, and “it made sense to sell the asset.”

The sale to Amancio Ortego occurred this August. The Real Deal scoured the Ponte Gadea buyer until they traced the address to Amancio Ortega, who keeps a low-profile in Spain and abroad.

This is a great development in the Miami market. People notice where influential buyers such as Amancio Ortega put their money. And if that’s in Miami, then we are moving in a great direction.

The Current State of Miami Real Estate

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Raanan Katz Miami Real EstateLocal real estate industry leaders recently gathered in Miami to discuss the real estate market in South Florida. Interest in South Florida real estate from both the United States and abroad has made the real estate market attractive for developers. Due to the increased interest in real estate development in Miami, the luxury market has followed suite and thrived along with the increasing real estate costs. Commercial real estate prices have skyrocketed, as they have doubled over these last six years.

Although the real estate market is looking great in Miami, as buyers are making 50% down payments on condos, experts still believe that there will be volatility. As Miami is becoming a hot bed for real estate, and prices are soaring, developers are turning their focus on under developed neighborhoods with potential expansion. Developer’s favorite so far is the Biscayne Boulevard corridor. The area is right on the bay, close to the beach, has a major road, and there is plenty of empty land for real estate development.

There have also been discussions to create public green spaces in the Miami-Dade area.  One potential project in the rumor mill is a 10-mile bike path under the Metrorail line that goes from Dadeland to Brickell Station. There is plenty of unused space in the area, and public officials are interested in re-purposing that land to give back to their community and increase the allure of living in South Florida. Other proposals have been put forth to convert unused railway tracks into lush pedestrian walkways as seen from the skyline in New York City.

Traffic is an issue in Miami, so city officials and real estate professionals agree that some major additions need to take place in the transportation sector if Miami wants to compete on an international level. To read more about the foreign interest in the real estate market in Miami, please refer to this  blogpost from Raanan Katz.