Ep18: Getting the Real Deal on Real Estate w/ Stefanos August

EPISODE TRANSCRIPT

Episode Summary:

**This podcast was taped when the state of Florida was in Phase 1 of reopening.**

How is COVID-19 affecting the real estate market? Stefanos August, a realtor with 15 years of experience, says the market is moving…and this will be a bump in the road.

While the pandemic has certainly had a huge impact, Stefanos feels confident that the market will rebound. He says, “By this time next year, it’s going to be a distant memory, what happened. Things are still moving, million-dollar homes to hundred thousand-dollar homes, and the market is reflective of that.”

Stefanos credits limited home inventory and low interest rates for creating both a buyer’s and seller’s market. This means that buyers will be able to afford more, and sellers will see higher demand for their properties. He recommends talking to your agent and looking at the inventory where you live before listing your home.

The pandemic also has affected the rental market, especially tenants’ ability to afford rent. Stefanos suggests that you talk to your landlord, if you are having problems.

A former teacher and real estate investor, Stefanos is now a full-time realtor with Coastal Properties Group – Christie’s International Real Estate in Tampa Bay.

Learn more: https://coastalpgi.com/luxury-home-agents/stefanos-august/

 

Raw Transcript:

0:00

I'm Sarina Fazan, taking a risk making a difference and changing the course of your life. Remarkable stories from people defying the odds. You're listening to Trailblazer. Hi everyone. I'm Sarina Fazan and welcome to Trailblazer where you hear from amazing people and their remarkable stories. Joining me right now is one of my dear friends, Stefanos August stephanus. Thank you for being here. Thank you for having me. And you're also in the real estate industry, which everybody is talking about real estate right now with this Coronavirus crisis and how it's affected the community. Right. So tell me tell us about yourself a little bit like, tell us where you work. You've been a real at you've been in the real estate business now for 15 years, right. So prior to being a real estate agent, a school teacher and I always started investing early. So I was 24. So I always had the knack for it. And that's how I met you to through the real estate. Yes. Yeah. So I'm doing the real estate investing and flipping. I decided to get into full time and I've been doing it for 15 years now. And what company do you

1:00

Work for right now coastal properties group are affiliate with Christie's International Realty. And and they're here, they're here in Tampa, Florida in Tampa, Florida. And what's great about this company, I just switched over to them, and after 15 years of being with the same company, and the owner has the vision of conquering the area, so he's flipped through Pinellas County, and he's making headway now into South Tampa. Okay, speaking of conquering the area, though, right now, people are really concerned about real estate. I mean, the country was basically shut down and is still you know, we're just, we're just in here in the Tampa community. Anyway, we're just beginning in phase one. So what is the real estate market look like? So it's interesting prior to the Coronavirus, I have several under contract. One didn't even appraise and during the midst of the Coronavirus, the buyer still spent $50,000 over appraisal to secure a place he and he's Oops, sorry, he's from New York. So you know, I think a lot of the buyers that

2:00

No, this is gonna assume pass. The local market here is still moving nicely. What's happened is best way to describe it is supply and demand. The demand, of course, because of the virus has dropped as soon as inventory. So I think we still have a supply and demand issue. Now there's just an abundance of inventory. Monday morning, I'm showing a property off market because begging the seller to sell it, because we don't see an abundance of inventory in the south Tampa corridor. So let's talk about that before we move on to other topics when you were talking about the inventory is low. Because I mean, the inventory has been low, but the inventory is even lower, even lower because people basically decided not to say I mean, they were hunkering down in their homes correct. For example, a High Park client of mine was relocated to San Diego and in the midst of this Coronavirus. She not put her home on the market. And now she got worried that she's gonna stay put. So I think a lot of people aren't moving right now. And also the fear has come into play, but still, that's applying to many

3:00

In the store their demand is still high and supply still low. But what about the prices? Steph knows because prior to this prior to this happening I mean real estate seemed to me anyway it was booming right and I want to talk about the rental market as well but we're going to get to that sure. It seemed that I have friends of mine that we're so excited about selling their house moving into a new house they have them call me Yeah, no, I'm sorry. I needed to have them call you I'm sorry. They were loyal to another realtor. I apologize. Sorry. Um, but

3:31

are we seeing prices of properties go down there's I don't feel in the south Tampa quarter. There is a good deal to be had and investors are still like hawks watching over the market. There's just not much inventory there's not many good deals period and things are moving. I just got a waterfront in Sunset Park under contract. You know so so water and you know, it went for pretty good price. So just so this isn't limited just to South Tampa in Tampa just real estate in

4:00

General in, in our community, right? Do you do you feel that?

4:06

I know there's been a huge impact but you feel we can recover. I think this is a bump in the road, my thoughts is a bump in the road people, you know, also going in to file for forbearances for their mortgages.

4:19

But I think it's a bump in the road, I think it's gonna sweep back in, it's gonna, by this time next year, it's going to be a distant memory, what happened? Again, things are still moving million dollar homes to, you know, hundred thousand dollar homes, they're all still moving and the market is reflective of that they're not going for, like they did back in 2008 2009 10. For you know, cheap. There's no good deal to be had. And I want to go back to 2008 2009 2010 for I mean, you could buy houses at that time between 20 to 60,000. My friend Serena.

4:54

Back then, how many Yes, yeah. So um, but so we're not seeing those numbers right now.

5:00

Nowhere I've seen them. So if you are a property owner, and you are contemplating selling your house,

5:08

should you sell it right? This is a great time, the rates are still great. And the inventory now is low. Again, I'm had to beg a seller to help me get a buyer, a cash buyer, I have to get into place. And I'm showing it Monday morning. Again, the inventory is low. So you would so don't don't wait, don't wait for a few weeks. I mean, you would suggest if you want to sell your home, go ahead. And I would definitely talk to your agent, if it's not me, and look at the local market where you're at and see what kind of inventory exists. But yeah, I would definitely say now the rates are still great, you know, and the lenders are still lending. You know, another lender, someone told me Oh, well, you know, now if you have a forbearance, it's harder to get a mortgage. Well, of course you're going to struggle with paying that mortgage, why would they give you another mortgage. So I think we're just going to move this along the bump in the road, and this is a great time to put it on the market because there's not much inventory period.

6:00

Well, you know, when you were talking about trying to get a mortgage, and if you're if your mortgage is on forbearance right now, and this may not be your area of expertise, but maybe you can, you know, guide us in the right direction. What do you do at that point? I mean, you talk to your real estate agent, you talk to the lender, I mean, who do you talk to, I would talk to everyone, you had some knowledge and then in the market, but if you're in forbearance, then maybe you should be in a position to pick up the next place right now. You know, just be very cautious about doing that, because it will affect your credit. And the interest rates, though, are very low right now too, as well. Right? So right now, so that's another reason why it if you're in the market to buy, it's a great time, so and don't wait until everyone starts listing their home, because that's going to we're going to get less for your property. Right. You know, that's what you know, we don't have that right now, which is great. So let's talk about that. So so from buying to selling because there is not that much inventory.

7:00

You're saying like right now, if you want to make a move in real estate right now, even though on the outside, it might look like oh gosh, it and we are in crisis. I'm not you know that but, but right now it might be a good time to make that decision. Yeah, absolutely. That because there's not an abundance of inventory. So let's now let's switch gears a bit and we can come back to this to the rental market. What is prior to the Coronavirus crisis? The rental market was unbelievable. I mean, you could not find places to rent and I mean, quite frankly, I mean, the prices were really high. So what is this done to the rental market? Well, I still see that nothing's changed too much. And again, my local niche here with the rental market. I'm about to list of one in Hyde Park village furnish two bedroom for 3800. And in the Miss of the Corona, I got, you know, multiple offers. So I think still the inventory is still low in the room.

8:00

A market aspect, even with my own personal properties, have you found though,

8:06

people can still afford to pay the rent, though? I mean, there's so many people that, you know, their jobs are on hiatus or sadly that they have lost their jobs. I mean, and as far as I can see so far, there's not there. There, of course, is protection for the homeowner with the forbearances. But what about protection for people who have the rental homes? For example, a couple my own properties, a mom bought a couple, two, two of them. Two out of many we have about seven are struggling. So what we did was we talked to them and said, Hey, we have the security deposit, let's take half of that and apply it to April's rent, and we did and then they have the balance. The next half they could apply towards may rent. And, and one of the tenants said, uh, let's only take a few hundred dollars of that. So, you know, we had to work all together, but I think with them too, you know, unemployment will start to kick in and

9:00

Hopefully they'll get a job by, you know, next month or two. So if that was our solution, taking the security deposit and applying it towards a rent, that's a good, you know, that's a good solution and some good advice. What what other advice would you have? I mean, I think that's great. So just basically talk to your tenancy if something can be worked out, right. Yeah. Or, you know, depends on everyone's a different scenario. But actually, I got that advice from a client of mine, and I troubleshot I called the tenants ahead of time and offered it to them, and to them took me up on my offer, but a lot of my tenants and my mom's You know, they're very proud to they don't want to take a handout either, you know, but they did. Well, it's refreshing to see that you don't feel that the real estate market has taken a huge hit. Because of this. I think the supply and demand has helped. Now back you mentioned earlier 2008 2009 10 I think then was different. You have been

10:00

inventory. If I think if now if we had that abundance of inventory issue, we would see the change, prices plummet. But I think people keeping that inventory low is helping you quite a bit. Well, hopefully do you think it will stay that way now?

10:15

You know, I think, I think so because even before the Coronavirus, local market here, there's still low it's not an abundance of inventory. But if everyone starts throwing their homes up for sale, you have problems back in 2009 had a listing in Riverview, okay, and there was nine of the same models on the same street for sale. So then you see prices change and go down. So we're not seeing that. So I'm really seeing it. And thank goodness for that. Right. So hopefully we don't see a repeat of what happened in 2008 2009 2010. Like, I mean, I'm hoping that the economy can recover more quickly

10:57

than it did then. I think so. I think you

11:00

lenders now have gotten wiser jumbo loans have restricted lending. So I think they're everyone's tightening up a little bit. So what is some is say you said to me that you brought some data with you, what is this data that you brought with you today? Just take a look at some good stuff here.

11:18

And in the meantime, as you look, so you were a school teacher for several years, what grade did you teach? third, fourth, and fifth? And you have twins right now, each one seven year olds. Oh, that's awesome. And then you went in into real estate. So you've but always dabbled in it too when I was teaching, which was great. So, you know, just more conversation about, you know, they say 10.5% of FHA mortgages are now in forbearance. You know, again, it's just I think, buying people some time just to get ahead of this for sure. The feds in no hurry to raise rates of rates are still staying low, which is all good news for sure. All prices of going down. So

12:00

Again, nothing bad but just some updates for sure.

12:05

This is just a meeting we just had this week with Airbnb layoffs 1900 people were laid off Airbnb yeah so let's let's actually talk about Airbnb is because with travel shut down clearly, you know, are people not really traveling?

12:21

People aren't staying in Airbnb s right. So So I have some friends that I know that instead of using their places as Airbnb is now they're opting to rent exactly the place out for longer periods of time. would you suggest that until absolutely right versus having a house sitting there vacant, absolutely rented out for a year lease or six months until this is we go through this bump? And again, with what you mentioned, you are seeing people that are interested in renting and buying so there's a desire there's a demand out there. Absolutely. Because remember we talked about earlier the rental market was still slim, back before Corona. So now against that supply and demand

13:00

People are, you know, looking for rentals. My friend has won seminal heights on Highland. He was doing Airbnb making a killing. Of course, now he rented it out to three young ladies and for top dollar as well. So that could be a solution and right for the meantime, right for the meantime through and, and so, and while you're continuing to look through some data and please feel free to interject as far as forbearances. Would you also suggest because I know each bank probably has their own their own

13:32

policies. I know many people have taken advantage of the forbearances. You need to talk to your lender, correct, unlike how to pay it back. Why don't you Why don't you tell us a little bit more? Well, I would say some people have to be careful because it does take an effect on your credit report, which then might hurt you if you're looking to maybe move in six months to a year. So definitely check with your lender and see how that affects your credit report or maybe if the lender your lender for the mortgage might not report

14:00

It just great to check with the professionals for sure. I heard that there are three questions that you need to ask one woman, what you mentioned is make sure it does not affect your

14:13

credit, make sure it doesn't affect your interest rate, right, like down the line. So that's pretty important. And also to find out when when do you pay these three months back? Is it a balloon payment at the end, which personally is making sense if they do that, right? I don't think it makes. I don't think it makes any sense. Because if you're not if you're not able to pay your mortgage, and then all of a sudden you have to come up with that much at the very end. What I've heard a lot of banks are doing is tacking it on at the very end of your loan. Is that what you're hearing as well. I'm hearing some of that too. Right. What else are you hearing, even with car payments, people that are have their payment, they're getting three months and they're tacking it on to the less they're adding three months on to their payment. So if it's a five year process,

15:00

You're in three months, which makes sense. We're gonna have a video on soon with a financial advisor in town. His name is David Duke. And he answers a lot of those questions and goes into more details on what we should do. But right now I'm talking to Stefanos and the real estate markets. Okay, just code from the company perspective. Again, coastal, pretty big in the Pinellas area and just come into South Tampa for sure. In the Tampa Bay area. So just give you an idea APR six, right. new contracts on the last five weeks. So APR, six $6.7 million. And is that and is that just in the Tampa area law? Okay, all right. And then you got to factor in April 13 and went to 9.5. April 20 18 million in April 27, up to 90 million and then now in the last three days, 36 new contracts up to 16.5 million. Wow. So you can tell you that, you know, people are still buying there. I mean, I think they see the light at the end of the tunnel for them.

16:00

Again, these are some prime neighborhoods, but I think you're gonna, from those stats, you see the market is bouncing back. So from April 6 into he went from Yeah, so from April 6, it went from 6.7 million to April 27. To 19. Mm, that's incredible. Right. And then the last three days meeting was on Tuesday. No, Wednesday or Tuesday, yeah, Wednesday, and all the days blend together. So okay, speaking, kind of tells you, you know, we're rebounding, you know, it was low on April 6, because of the epidemic. But now people are thinking or seeing like that we're coming out of this, which is great, which is great. So speaking of that, for people who have had closings and who want to buy a property, how has that been working for you guys? I mean, do you meet them face to face? I mean, how does it like say someone that and I know we're in phase one right now, right? So we are having more face to face meetings and things like that, but here we are right now. Here we are right now. But how does that work with with with people? I mean, do you

17:00

How does it work? So I would say everyone is different. There's too many variables out there. So for example, I was showing on Saturday on a property on beta Bay and touch base with the list agent find out what their shipping instructions are and what the seller is comfortable with and what the buyer is comfortable with. And they just meet in the middle, whatever makes them whatever works for them. So this buyer on Saturday, you know, I'm going to meet him their properties, they six feet apart, and I have requested the listing agent step outside, so there's less people in the house. So I think everyone is different, right? Sam would want and expect that people can so open houses are no longer right for right now, or are there some some signs Yes, for open houses. So there are so and I honestly said there are open houses, there are some open houses, but so we just depends.

17:48

You guys are following the social distancing and what people are comfortable with, right where people are comfortable with basically, and I'm trying to schedule one not this weekend, but next weekend for myself as well.

18:00

So then people are requesting to see houses, people will still come people still come in the midst of the virus, right before the virus. It had one on Melrose, South Tampa and I had about 10 people come through into into ours. Again it had the doors open, you know, lights own, you know, so seeing six feet apart, so you got to be respectful. Right? Absolutely in because you guys are also considered essential employees. I mean, real estate is an essential industry. So So to recap, so do recap, you're saying that people should not be afraid to buy herself. Right. And then exactly talk to your local agent, find out what the market is doing. This is a great time, especially if you want to get top dollar because inventories low. So look for that. Also, there are open houses, there are some open houses, they're here in New head some brokers open where the agents are having their homes open so agents can come through. But you know, again, people are taking some precautions depending on the homeowner and what they request.

19:00

If you opt not to have an open house again, as you mentioned, and then you just make the appointments, find out what virtually what's comfortable. So our Have there been

19:11

virtual home tours speaking of that, the thing is, I haven't had anybody, I just showed a property for a friend of mine a rental just now. And you know, we're six feet apart, but they didn't ask for a virtual, or maybe they just don't know we can do that. But with FaceTime and technology, you know, can be done

19:27

with doing that, though, but that's interesting. Can you talk about that a little bit. So people are actually doing

19:33

phone calls? Yeah, they're doing virtual. Some people have

19:37

3d tours for their properties. So there's other ways you get exposure and take a look at the home for sure. Can you actually sell properties that way though? I've done that virtually before this. I'm in New York coming down here to buy, you know, just some FaceTime with them, showing them the properties and the videos, and they just collect that data and then make their decision. But yeah, so we'll put that before you know, because because isn't it

20:00

Because it's interesting, I and I could see that happening. I'm just wondering if it's more prevalent now. You know, it's it's funny, I think we're the human touch is important, right? So people want to get in there, feel it, smell it, touch it and see it for themselves. I feel that way. I mean, especially if you're buying a property and you're potentially it's a big investment. Yeah. And you're it's like one of the biggest investments of your life is your property. I think maybe some other ones. Some other agents in the office say they go out to preview and if it's a liking to take a liking to it, then then the schedule the appointment to go look at the property. Oh, so that's a preliminary work. Yeah. So that's interesting. So are you guys doing more of that? Would you say some agents are Yeah, preliminary work, just getting some, you know, laid lands with videos and facetiming before client makes that actual point and getting out there. So again, it just all depends on the client. Now I know at the beginning of this and you know, we're still in the midst of it, but

20:56

it's very scary in you can be so nervous.

21:00

Are you? Is this a relief for you to see that the real estate market is I mean, for your own profession? I mean, it's your livelihood. It's my livelihood. Right. And, you know, people that are new in the business might be hurting a little bit more

21:15

people that have their business here for a while, I think they're gonna coast by okay. It'll be safe. Because again, I think from the stats of the company, we're rebounding nicely. That's comforting to hear. All right. It's definitely guys, thank you so much for joining us. And thank you everyone for listening in closing, paraphrasing one of my favorite poets, Ralph Waldo Emerson, go where there is no path and leave a trail. Thanks for listening to Trailblazer everyone I'm Sarina Fazan.


Written by Audra Butler

Sarina Fazan