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Rock It Like a Listing Agent Engel & Völkers’ Bobby Johnson on why the profession may (or may not be) for you b y M i c h a e l J . P a l l e r i n o
Investing at the Beach b y L i e s e l S c h m i d t
J ust how strong has the housing market been over the past 18-plus months or so? One chief economist recently said, “We’ve been tracking housing prices for over 20 years, and we’ve never seen anything like this.” With everyone, everywhere seemingly looking to buy, sell, or both, that means being in today’s real estate transaction business is the place to be. Bobby Johnson tends to think it depends on who you are, what you are looking for, and just how much time, patience, and moxie you have for the game. A longtime fixture on the 30-A beaches scene, today Johnson is a Real Estate Advisor/Partner for Engel & Völkers 30a Beaches. In fact, he entered the real estate game years ago when an old broker friend shared a piece of advice that Johnson has never forgotten: “Listers last.” Sidestepping the great debate between whether it is better to be a listing agent or selling agent, Johnson believes you go to where your heart leads. And yes, if you want to be responsible for helping sellers navigate each step of the sales process—things like running comparative market analysis, pricing properties, and producing all the materials needed to sell and market a home, being a listing agent rocks. So, to be a listing agent or not to be a listing agent, what do you say? Being a listing agent doesn’t really rock for everyone. It does for me because I love working with sellers. In one of my past careers, I was a nurse, so I think the caregiver in me comes out. Listings require care and experience. I love the freedom they allow for my schedule. Also, they rock for me because my previous buyers become my sellers. At this point of my 20-plus year career, I am working full circle. Seventy-five percent of my clients or more are repeat clients. Can every real estate professional be a listing agent? It’s not for everyone. It’s a highly competitive game with zero guarantee of a return. We have developed systems that take time, money, and experience. Some agents prefer not to work with sellers, as it’s just not the way they like to structure their business.
A s someone who’s been in real estate since 2004, Tom Fitzpatrick has seen the landscape—and the market—change drastically. Starting out as a broker of sales for two new developments in Seacrest Beach and Seagrove Beach, he went on to start 30-A Beach Properties, a vacation rental firm, and became a broker associate at Scenic Sotheby’s Intl Realty, a brand that has redefined “global reach”. He now covers all of 30-A with an emphasis in Rosemary Beach, Watersound, WaterColor and Alys Beach—communities that he and his team tour every week, speaking with owners and guests to develop winning strategies. What are your specialties as an agent? For one, I like to understand my clients. The beach is the perfect setting to get to know people and their impetus for buying a beach property. Is it an investment purchase that will generate a supplemental income stream, or is it to spend dearly needed time with family? I like to see what type of home inspires them and if the floor plan is a good lifestyle fit. My team also manages luxury vacation rental properties, so it’s a one stop shop. In addition, I have a great eye for informing clients of the construction quality and potential repair punch items. What first interested you in real estate? I find it fascinating that so many areas of business are bundled into real estate: finance, sales and marketing, legal contracts, business ethics, and construction techniques. Do you think beach real estate will continue to get more valuable? VRBO ranked 30-A and Destin as the #1 vacation rental market in the U.S. That’s amazing. Our drivable regional market is growing with flights from the North and Midwest. National Association of Realtors’ chief economist Lawrence Yun doesn’t see the vacation home market slowing anytime soon. Yun says that they continue to be in high demand, even with companies slowly bringing employees back to the office. The benefits of a flexible work schedule have been discovered, so vacation home pricing itself may moderate—but it’s not likely to decrease in 2022.
What are the biggest advantages? A long time ago a colleague told me that “listers last”. I am pretty simple minded and that comment really registered with me. The big picture is listings lead to buyers. When you have listings, you control your own destiny. What are the downsides? You can get a lot of resources into a listing with no assurance of a return. Also, when things go wrong, regardless of why, you can sometimes get the blame. There are many things that can go wrong in a real estate transaction—things that are just out of your control. What made you choose this path? It seems all my past careers have led to being a successful agent. My stepfather is a builder, and I was always fascinated by the selling side. I also used to be in the art business. One day after moving an armoire up 21 flights of stairs, I said to myself, “If I’m going to work this hard, I should at least get paid better for my time.” Real estate was just a natural evolution for me and is something to this day I still love doing. Is there a story you can share about why you love what you do? I love driving down 30-A and seeing my market in the eyes of a new buyer. I grew up along 30-A, so you can imagine that it is easy at times to take for granted how unique and cool this area is. When I see clients look out over one of our coastal dune lakes in awe of what they see, I am reminded how lucky I am to be doing this for a living. At this point in my life, I find myself wondering about life and purpose. I get reminded how many families are impacted on just one transaction. In a sense, it makes me feel like I am helping people by helping them buy and sell their homes. I just love that.
substantial. For example, a Rosemary Beach home with carriage can generate $225,000 to $300,000. Your first consideration is location. Is there an area that intrigues you? You’ll be more successful if the location resonates. Where is the beach access and are restaurants walkable? Next, evaluate the floor plan. Ideally, each bedroom should have a private bathroom. Bunk rooms, preferably on the top floor, are popular. Also, is there a second TV room or play area? Nice community pools are sufficient. You’ll want a courtyard and balconies. And finally, calculate the “Costs to Own”. Those include property taxes, HOA dues, mortgage interest, and utilities. Compare it against your rental income minus the management fee. Renters will gladly pay more for homes that showcase our 30-A coastal look and feature cool grays, pale blues, and whites. Venetian plaster, pecky cypress, and wood shiplap can all be combined to create amazing looks. Offer guests a property that is unlike what they live in. Maximize income with updated countertops. Simple, uncluttered rooms work best. Offer a comfortable living arrangement where three generations can spend time together. Is it better to go invest in a property for long- term rentals or short-term vacation rentals? The returns are significantly better for short term weekly rentals. Plus, you can decide to only rent three months in summer, profit nicely, and then use it the other nine months. There are different ways to get to your target income. What is the market like right now? It continues to be a competitive market, where properties don’t stay on the market long. You need to be following inventory changes closely and act quickly when the right property comes along!
Tom Fitzpatrick
Bobby Johnson
Why do people love investing at the beach? Real estate investing has been a cornerstone towards building personal wealth. Income producing properties can generate a whole new revenue stream that supplements your yearly income. The ability to leverage your purchase by borrowing perhaps 75 percent makes it unique. You only need 25 percent to purchase the asset, whereas other investments could be 100 percent. How do you help people find their perfect beach property for investing? Families will always travel to take vacations; that won’t change. Therefore, rental income is dependable. Real estate prices have risen, but so have rental rates. The income that a 30-A beach property can generate is
(850) 213-2800, bobbyjteam.evrealestate.com, bobby. johnson@engelvoelkers.com, Facebook: @EV30A, Instagram: engelvolkers30a
For more information, visit 30abeachproperties.com or call (850) 225-4674.
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