RE/MAX franchise broker/owner Len Iannuccilli isn’t letting a slumping housing market slow down his sales. He estimates that he and his team of six at East Greenwich-based Len Iannuccilli Group sold about $50 million in homes and land last year.
Maybe the office has found success during an economic downturn because it’s a buyer’s market. But Iannuccilli proudly points out that his team members are specialized in different areas of the real estate sector – existing homes, new homes and subdivisions, buyer representation and some commercial sales. His office also boasts a Web site, www.lennyland.com, that allows potential buyers to examine available lots in subdivisions and homes the office currently has on the sales block.
PBN: Where in the state are you seeing the highest percentage of your business right now?
IANNUCCILLI: The majority of our business right now for land sales is in Richmond. Lots are selling from $130,000 to $150,000. New single family homes are selling for between $360,000 and $475,000. Residential re-sales in North Kingstown over the past 30 days are selling between $300,000 and $1 million. Condos have been selling in Narragansett and Providence. Bottom line, if it’s priced right, buyers will find it and it will sell, usually under assessed value.
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PBN: What effect, if any, has the rising cost of building materials had on your business?
IANNUCCILLI: The rising cost of materials has impacted us primarily in the construction of our subdivision infrastructures, i.e., roads, etc. On average, a half-acre to one-acre lot in a cluster subdivision is costing between $80,000 and $100,000 per lot for development. This escalation in cost is causing a drop in raw land value [that is] in some cases as much as 40 percent. Contractors have significantly reduced their profit margin, as have subcontractors who are in need of the business.
PBN: How will the Housing and Economic Recovery Act that was just passed affect the residential market here in Rhode Island?
IANNUCCILLI: I am not expecting much relief from the act. I am sure there are individuals that will benefit providing they can fulfill the gamut of parameters the federal government will require of them.
PBN: And are you reaching out to the younger, first-time buyers that can receive a tax credit?
IANNUCCILLI: Absolutely, yes. Generation Y is 73 million strong. Over the past 12 months the majority of our sales have been to Generation X and Generation Y. We have enlisted a number of young people in our organization who have had a natural focus on this particular demographic as it is their peer group and a very fluid opportunity.
PBN: What advice would you give to someone who’s thinking about selling now, in this buyers’ market?
IANNUCCILLI: That answer depends on the individual homeowner’s personal needs. Some people have to sell and waiting out the housing crisis may not necessarily leave them in a better position 12 months from now, as I feel confident the market will continue to drop through the first quarter of 2009 and who knows where after that. I also don’t expect a rebound to values anywhere near where they were in 2006. If you don’t need to sell it’s an excellent time to evaluate your options to change your residence and your lifestyle. There are bargains which will balance out any disappointment on the selling side.
