AARP Magazine over the years has ranked retirement destinations under a variety of criteria, from "The Best Places to Live a Simple Life," to the "Healthiest Hometowns" and "The Best Places to Reinvent Your Life". From these lists, CNBC.com has focused on a selection of towns and cities recognized as top places to retire, picking the best and most unique locations from AARP Magazine's overall reviews.
Top Retirement Hotspots includes as #4, Sarasota FL.
Sarasota is perhaps one of the most popular retirement destinations in the most popular US state for retirees. Located on the Gulf Coast, Sarasota has 35 miles of beaches and offers residents opportunities from golfing to boating and gourmet dining. The town also offers a range of activities, including an opera, symphony, film society and a range of art galleries.
This destination is attracts plenty of vacationers in the winter months which does make it a bit more crowded during those times. The area also finds median home values at $185,200, which is slightly above the national average. Regardless, AARP Magazine has identified Sarasota, a city with the nickname "Paradise," as #4 on its list of "best places to reinvent your life.” Add that to its recent designation as the most undervalued city in America, and Sarasota is the obvious choice for a second, vacation or retirement home.
Sunday, February 07, 2010
Monday, January 25, 2010
Want a Sarasota Condo? You'll Need Cash
Although lenders and brokers will tell you differently, it is becoming increasingly obvious that if you want to purchase a condo, you will need to be a cash buyer.
In the last several months, we have watched prospective buyers place their hopes in a lending system that promised a condo financing package, only to be left with nothing at the end of the day. While there may be a few programs out there, the rules are so stringent that everyday people are not eligible.
This of course has far reaching implications not only for buyers, but sellers of condominiums. The pool of prospective buyers shrinks considerably when the financing disappears, and sellers are beginning to consider seller financing as an alternative.
Buyers with cash are holding the power card in the Sarasota condominium real estate market.
In the last several months, we have watched prospective buyers place their hopes in a lending system that promised a condo financing package, only to be left with nothing at the end of the day. While there may be a few programs out there, the rules are so stringent that everyday people are not eligible.
This of course has far reaching implications not only for buyers, but sellers of condominiums. The pool of prospective buyers shrinks considerably when the financing disappears, and sellers are beginning to consider seller financing as an alternative.
Buyers with cash are holding the power card in the Sarasota condominium real estate market.
Thursday, January 14, 2010
Sarasota's Rebel Real Estate Market
I've always been a big of a rebel. I love seeing people or events that buck the trend. That why the latest numbers out of the Sarasota Real Estate Association had me smiling - while much of the world continues to insist on gloom and doom predictions and dire outlooks, no one appears to have told the buyers in Sarasota. Or we are just a bunch of sunshine-loving rebels!
******************************************
From SAR -
With 648 total property sales reported in December 2009, the Sarasota real estate market saw the most closed transactions since March 2007, a 33 month span. Overall sales in December 2009 were also 52 percent higher than December 2008, when only 406 properties changed hands, and 70 sales higher than the 578 sales reported in November 2009. Median sale prices were also up last month for both single family homes and condos.
For the full year 2009, the trend lines have been dramatic. Monthly home sales have climbed to the high 500s and low-to-mid 600s, compared to 2008 when sales often dipped to the low 400s and even into the 300s. The overall number of closed sales in 2009 stood at 6,699, compared to only 5,459 in all of 2008, for a 22.7 percent increase. In addition, the overall property inventory has plunged from the 10,000 to 13,000 range in 2008, down to the low 6,000 level at the end of 2009.
For local Realtors®, the monthly and annual trend stands in contrast to the national picture. Sales nationally have slowed during the early winter months, but not in Sarasota.
“This is very good news, especially considering the fact that our market is showing considerable strength against a national backdrop of uncertainty,” said 2010 SAR President Erick Shumway. “Sales are continuing to rise, and we’re starting to see a return of appreciation as the available property market tightens and buyers look more toward arm’s length sales instead of short sales and foreclosed properties.”
The first-time homebuyer tax credit was extended and expanded to include many other homebuyers on Nov. 6, so the home buying sales rush could easily continue through the season and the first quarter of 2010. Recent statistics continue to point to a local market in a prolonged recovery period.
Short sales and bank-owned property sales continue to impact median sale prices locally. Normal arm’s length sales bring more than double the price on average than those for distressed properties. For the full year 2009, distressed property sales accounted for 40.7 percent of all sales, compared to 2008’s total of only 21.2 percent. Thus, while the median sale prices did drop in 2009, this was due in very large part to the distressed segment of the sales.
The inventory level in December 2009 was at the lowest level since late summer of 2005 and the years prior to the boom period from 2003 - 2005.
“One of the biggest statistical positives in December was the month’s supply of homes, which fell to 8.1 months for single family homes and 12.3 months for condos,” noted Erick Shumway. “These are the lowest figures in two years. Once they reach 6 months, the market is considered to be in equilibrium between buyers and sellers. Last year at this time, the figures were 19.1 months for single family and 31.8 months for condos. This is a huge difference in only a short period of time.”
******************************************
From SAR -
With 648 total property sales reported in December 2009, the Sarasota real estate market saw the most closed transactions since March 2007, a 33 month span. Overall sales in December 2009 were also 52 percent higher than December 2008, when only 406 properties changed hands, and 70 sales higher than the 578 sales reported in November 2009. Median sale prices were also up last month for both single family homes and condos.
For the full year 2009, the trend lines have been dramatic. Monthly home sales have climbed to the high 500s and low-to-mid 600s, compared to 2008 when sales often dipped to the low 400s and even into the 300s. The overall number of closed sales in 2009 stood at 6,699, compared to only 5,459 in all of 2008, for a 22.7 percent increase. In addition, the overall property inventory has plunged from the 10,000 to 13,000 range in 2008, down to the low 6,000 level at the end of 2009.
For local Realtors®, the monthly and annual trend stands in contrast to the national picture. Sales nationally have slowed during the early winter months, but not in Sarasota.
“This is very good news, especially considering the fact that our market is showing considerable strength against a national backdrop of uncertainty,” said 2010 SAR President Erick Shumway. “Sales are continuing to rise, and we’re starting to see a return of appreciation as the available property market tightens and buyers look more toward arm’s length sales instead of short sales and foreclosed properties.”
The first-time homebuyer tax credit was extended and expanded to include many other homebuyers on Nov. 6, so the home buying sales rush could easily continue through the season and the first quarter of 2010. Recent statistics continue to point to a local market in a prolonged recovery period.
Short sales and bank-owned property sales continue to impact median sale prices locally. Normal arm’s length sales bring more than double the price on average than those for distressed properties. For the full year 2009, distressed property sales accounted for 40.7 percent of all sales, compared to 2008’s total of only 21.2 percent. Thus, while the median sale prices did drop in 2009, this was due in very large part to the distressed segment of the sales.
The inventory level in December 2009 was at the lowest level since late summer of 2005 and the years prior to the boom period from 2003 - 2005.
“One of the biggest statistical positives in December was the month’s supply of homes, which fell to 8.1 months for single family homes and 12.3 months for condos,” noted Erick Shumway. “These are the lowest figures in two years. Once they reach 6 months, the market is considered to be in equilibrium between buyers and sellers. Last year at this time, the figures were 19.1 months for single family and 31.8 months for condos. This is a huge difference in only a short period of time.”
Tuesday, December 15, 2009
Sarasota Real Estate Homestead Exemption
One of the great benefits to home ownership in Florida is the Homestead Exemption. If you own a Florida home that is your permanent residence, you are likely eligile to the $50,000 entitlement.
The exemption allows for $50,000 to be subtracted to the assessed value of the home prior to the calculation of taxes. Once a home is homesteaded, it is protected under the "Save our Homes" cap, which stipulates the property's assessed value cannot increase more than 3% per year, a protection that greatly benefited homeowners during the recent boom.
In order to qualify:
* You must hold title to the property
* You must reside in the property (more than 6 months per year)
* You must be a permanent resident of the State of Florida
You must apply in person at the property appraisers office (information below) before March 2nd of the qualifying year in order to receive the exemption.
You will need to bring the following items, which must have been obtained before January 1 of the qualifying year. If a husband and wife reside in the home, these items are required of both.
* Tax bill or deed
* Florida drivers license
* Florida Voters Registration Card or Declaration of Domicile
* Florida Automobile Registration
* Social security number
Resident aliens must present their Permanent Alien Card along with a Declaration of Domicile.
Applications are taken Monday through Friday at one of the following Property Appraiser offices:
2001 Adams Lane, Sarasota FL 34237 (941) 951-5650
4000 South Trail, Room 115, Venice FL 34293 (941) 492-3030
www.SarasotaProperty.net
The exemption allows for $50,000 to be subtracted to the assessed value of the home prior to the calculation of taxes. Once a home is homesteaded, it is protected under the "Save our Homes" cap, which stipulates the property's assessed value cannot increase more than 3% per year, a protection that greatly benefited homeowners during the recent boom.
In order to qualify:
* You must hold title to the property
* You must reside in the property (more than 6 months per year)
* You must be a permanent resident of the State of Florida
You must apply in person at the property appraisers office (information below) before March 2nd of the qualifying year in order to receive the exemption.
You will need to bring the following items, which must have been obtained before January 1 of the qualifying year. If a husband and wife reside in the home, these items are required of both.
* Tax bill or deed
* Florida drivers license
* Florida Voters Registration Card or Declaration of Domicile
* Florida Automobile Registration
* Social security number
Resident aliens must present their Permanent Alien Card along with a Declaration of Domicile.
Applications are taken Monday through Friday at one of the following Property Appraiser offices:
2001 Adams Lane, Sarasota FL 34237 (941) 951-5650
4000 South Trail, Room 115, Venice FL 34293 (941) 492-3030
www.SarasotaProperty.net
Monday, December 07, 2009
Sarasota Real Estate - Rates Hit Record Lows
The average interest rate for 30-year mortgages has fallen to the lowest level since Freddie Mac began compiling its weekly survey in 1971, declining to 4.71 percent this week from 4.78 percent a week ago.
Rates also were more attractive for 15-year fixed loans, which fell from 4.29 percent to 4.27 percent, but many consumers may not have qualified for them because they now face higher credit standards from lenders.
This of course bodes well for the continued recovery of the real estate market as more people are drawn to buy, attracted by the combination of low rates and low prices.
Rates also were more attractive for 15-year fixed loans, which fell from 4.29 percent to 4.27 percent, but many consumers may not have qualified for them because they now face higher credit standards from lenders.
This of course bodes well for the continued recovery of the real estate market as more people are drawn to buy, attracted by the combination of low rates and low prices.
Monday, November 30, 2009
Invest in Sarasota Real Estate? Yes and No
The investors are back in Sarasota.
After a 3 year hiatus, the front runners - those investors who come back buying before the general population - have been here in Sarasota for months.
While I do agree heartily with investing in Sarasota property right now, I have to throw in this caveat - buy NOW. Sell later.
Flipping of property, or buying/rehabbing/reselling, is still very risky business. The "general" buyers are still making their way into the market. Not to mention, prices are still low.
Given the ability to purchase homes well under market value, the smart investors are buying now, at the bottom...renting the property for a year or more to allow market recovery while collecting income...and then planning to sell at that time.
Investing in real estate is always smart - you just need to know how to read the market for your maximum benefit.
After a 3 year hiatus, the front runners - those investors who come back buying before the general population - have been here in Sarasota for months.
While I do agree heartily with investing in Sarasota property right now, I have to throw in this caveat - buy NOW. Sell later.
Flipping of property, or buying/rehabbing/reselling, is still very risky business. The "general" buyers are still making their way into the market. Not to mention, prices are still low.
Given the ability to purchase homes well under market value, the smart investors are buying now, at the bottom...renting the property for a year or more to allow market recovery while collecting income...and then planning to sell at that time.
Investing in real estate is always smart - you just need to know how to read the market for your maximum benefit.
Tuesday, November 24, 2009
Sarasota Real Estate Market Encouraging - Again
The skeptics are running out of ammunition.
While the numbers have been on a steady positive trend for months now, many have remained reluctant to acknowledge that the real estate market may actually be recovering.
However, the October numbers recently released show that yet again, Sarasota area sales are up 50%. It seems that the tax credit, coupled with fire-sale pricing, is bringing buyers out in increasingly strong numbers.
Deals are still to be had as median sales prices are not yet recovering, but buyers are learning that the very best deals don't last long. Some are even selling over list price, unheard of just a short year ago.
With the tax credit now extended to all buyers and through the Sarasota high season, we expect to see sales numbers -and competition for the best properties - to rise quickly.
While the numbers have been on a steady positive trend for months now, many have remained reluctant to acknowledge that the real estate market may actually be recovering.
However, the October numbers recently released show that yet again, Sarasota area sales are up 50%. It seems that the tax credit, coupled with fire-sale pricing, is bringing buyers out in increasingly strong numbers.
Deals are still to be had as median sales prices are not yet recovering, but buyers are learning that the very best deals don't last long. Some are even selling over list price, unheard of just a short year ago.
With the tax credit now extended to all buyers and through the Sarasota high season, we expect to see sales numbers -and competition for the best properties - to rise quickly.
Tuesday, November 03, 2009
Loan Limits Extended - Tax Credit Next?
In an effort to spur the real estate market, Washington is attacking the issue on various fronts. While the homebuyer tax credit remains on the floor - discussing both extension and expansion - another key issue has been resolved.
Last week, the House and Senate passed legislation to extend the current loan limits for FHA and Freddie Mac and Fannie Mae through December 31, 2010. These loan limits, set at 125% of local area median home price and capped at $729,750, would have expired on December 31, 2009 in which case loan limits would have been reduced in many markets. The President is expected to signed this bill as of this writing.
Cash buyers continue to enjoy the greatest savings in this market, as they have the agility and ability to pick up the deals quickly.
Last week, the House and Senate passed legislation to extend the current loan limits for FHA and Freddie Mac and Fannie Mae through December 31, 2010. These loan limits, set at 125% of local area median home price and capped at $729,750, would have expired on December 31, 2009 in which case loan limits would have been reduced in many markets. The President is expected to signed this bill as of this writing.
Cash buyers continue to enjoy the greatest savings in this market, as they have the agility and ability to pick up the deals quickly.
Tuesday, October 20, 2009
Real Estate Cynicism
A friend of mine recently closed on a home. He had waited 3 years to purchase. He watched the markets carefully. He finally decided on a great home in a highly desirable subdivision. He got the home for 50% of what it sold for 3 years ago, and a full 10% under the current market value.
His comment to me? "I just wish I could prevent the powers that be from using this sale as part of the 'market is recovering' hype"!
Now, I understand a healthy dose of caution when purchasing in this, or any market. But to be so cynical just after making such a great buy? His take on it is that although he purchased, he didnt want someone else to use him as an example of a recovering market.
Folks, the market starts recovering when people start buying. Even at depressed prices, decreasing inventory means less available to purchase. Homes selling more quickly means that we begin to see "list to sale" ratios declining and approaching equilibrium.
Lately, there is a lot of resistance from sellers to go any lower. Just ask a few of my buyers who have been frustrated on several properties. On others, there are multiple offers. These are all signs of a market that is ready to recover, if it is not well on its way.
It's not "hype" if all the numbers are favorable. If people are buying. If inventory is decreasing, sellers are holding, and buyers are competing. Its reality.
Could something happen tomorrow to change those facts? Of course. But for now, things are heading in the right direction.
His comment to me? "I just wish I could prevent the powers that be from using this sale as part of the 'market is recovering' hype"!
Now, I understand a healthy dose of caution when purchasing in this, or any market. But to be so cynical just after making such a great buy? His take on it is that although he purchased, he didnt want someone else to use him as an example of a recovering market.
Folks, the market starts recovering when people start buying. Even at depressed prices, decreasing inventory means less available to purchase. Homes selling more quickly means that we begin to see "list to sale" ratios declining and approaching equilibrium.
Lately, there is a lot of resistance from sellers to go any lower. Just ask a few of my buyers who have been frustrated on several properties. On others, there are multiple offers. These are all signs of a market that is ready to recover, if it is not well on its way.
It's not "hype" if all the numbers are favorable. If people are buying. If inventory is decreasing, sellers are holding, and buyers are competing. Its reality.
Could something happen tomorrow to change those facts? Of course. But for now, things are heading in the right direction.
Saturday, October 17, 2009
Sarasota Short Sale Pricing is Changing
This week we received word that the short sale process is being revamped and standardized at the highest levels. The most welcome news is that if the new provision passes, the banks will actually be setting the short sale price, not the listing agent.
I have heard a collective cheer go up amongst my customers. The short sale process is daunting, and most frustrating for many people is seeing a price on a listing that may not be acceptable to the bank, even if they make a full price offer.
I have noticed lately that when the daily "status change report" makes it to my inbox, that many properties have raised their price by a considerable amount. Further investigation shows that they were a short sale that has gone pending at the higher price. For instance, this morning, a home which had been listed at $109K went pending at $136K. What happened? This may be price the bank would actually take as opposed to a fantasy price set by a well meaning listing agent.
So when the short sale pricing is set by the bank, the issue of "list price reality" will be solved. What folks are not going to like, however, is that the false veil of "rock bottom prices" will be lifted. Many people express shock when a home goes into foreclosure, and the bank actually raises the price of the home from its short sale levels. It's not a surprise to me - the bank is simply finally revealing what they will accept. The reality of that number has been the same all along - we are simply finally privy to it.
Take heart, folks. Many of those prices werent real anyway. I for one would rather deal with accurate reality than fantasy.
Postscript
There is a whole other discussion to buying a short sale - if the short sale price is unbelievably low, the chances of the winning bidder paying that price is slim. They probably made an offer OVER list price. If the home is set 50% below market, making an offer 5-10% over list still makes perfect sense in order to score a great deal over the competiton who are likely offering at or less than list. In case this all sounds familiar, it should. It's called a "bidding war", and it happens in any market for well priced properties.
I have heard a collective cheer go up amongst my customers. The short sale process is daunting, and most frustrating for many people is seeing a price on a listing that may not be acceptable to the bank, even if they make a full price offer.
I have noticed lately that when the daily "status change report" makes it to my inbox, that many properties have raised their price by a considerable amount. Further investigation shows that they were a short sale that has gone pending at the higher price. For instance, this morning, a home which had been listed at $109K went pending at $136K. What happened? This may be price the bank would actually take as opposed to a fantasy price set by a well meaning listing agent.
So when the short sale pricing is set by the bank, the issue of "list price reality" will be solved. What folks are not going to like, however, is that the false veil of "rock bottom prices" will be lifted. Many people express shock when a home goes into foreclosure, and the bank actually raises the price of the home from its short sale levels. It's not a surprise to me - the bank is simply finally revealing what they will accept. The reality of that number has been the same all along - we are simply finally privy to it.
Take heart, folks. Many of those prices werent real anyway. I for one would rather deal with accurate reality than fantasy.
Postscript
There is a whole other discussion to buying a short sale - if the short sale price is unbelievably low, the chances of the winning bidder paying that price is slim. They probably made an offer OVER list price. If the home is set 50% below market, making an offer 5-10% over list still makes perfect sense in order to score a great deal over the competiton who are likely offering at or less than list. In case this all sounds familiar, it should. It's called a "bidding war", and it happens in any market for well priced properties.
Wednesday, October 14, 2009
Sarasota Real Estate Numbers
Trends continue to signal recovery in the Sarasota market according to the Sarasota Association of Realtors September report:
* Home and condo sales skyrocketed - a 35% increase in sales over September of 2008
* Sales up 10% over August in our traditionally slowest month
* Pending sales have exceeded 800 for 7 of the 9 months in 2009, after lingering between 400-500 much of the last two years
* Time on market numbers are down to 9.8 months from over a year for a single family home - 6 months is considered a market in equilibrium
* Inventory numbers - 3,915 single family homes and 2,337 condos - are the lowest they have been since August 2005.
Median sales prices are lower , fueled by short sales and foreclosures. As these inventories dry up, prices will again begin to climb and we will begin to see more multiple offer situtatons - bidding wars - on the best properties.
* Home and condo sales skyrocketed - a 35% increase in sales over September of 2008
* Sales up 10% over August in our traditionally slowest month
* Pending sales have exceeded 800 for 7 of the 9 months in 2009, after lingering between 400-500 much of the last two years
* Time on market numbers are down to 9.8 months from over a year for a single family home - 6 months is considered a market in equilibrium
* Inventory numbers - 3,915 single family homes and 2,337 condos - are the lowest they have been since August 2005.
Median sales prices are lower , fueled by short sales and foreclosures. As these inventories dry up, prices will again begin to climb and we will begin to see more multiple offer situtatons - bidding wars - on the best properties.
Sunday, October 11, 2009
Right Under Your Nose
The market has been abyssmal for so long in Florida, that there is a sense that it will never change. Buyers are content in the knowledge that they are firmly in the catbird seat, and that they should still wait out the "bottom" of the market.
The problem is, that as exclusive buyer agents in Sarasota, we are seeing the exact opposite. Three times this week, my buyers found themselves in multiple offer situations. Often, these situations are resulting in the successful bidder offering list price or higher to get the property.What is happening? The best deals are being scooped up quickly, and there is no more luxury of "wait and see". The fact is this - the list price is the most irrelevant number in the whole process - the VALUE is what is important.
Its a strange time in the Sarasota real estate market. The prices have fallen remarkably low. However, no matter how low they fall, buyers still seem convinced prices are too high. With all evidence to the contrary, they want to lowball the offer thinking that the seller will be thrilled to get an offer. However,the sellers have come to the opposite conclusion. With inventory shrinking, and sales AND values rising - they think they have gone low enough. With season approaching and news media reporting that everyone should consider a Sarasota real estate purchase - they are feeling more empowered than they have in years.
So what happens when buyers don't want to admit that times are changing, and sellers insist they are? Buyers are often missing out on incredible deals as savvy investors are buying the best deals right out from under them. The market is undeniably changing. Buyers will need to adjust their thinking or face the fact that they missed the opportunity.
The GREAT NEWS for buyers? The prices are likely still near the bottom, the properties are still available, and the deals are still there. For now.
The problem is, that as exclusive buyer agents in Sarasota, we are seeing the exact opposite. Three times this week, my buyers found themselves in multiple offer situations. Often, these situations are resulting in the successful bidder offering list price or higher to get the property.What is happening? The best deals are being scooped up quickly, and there is no more luxury of "wait and see". The fact is this - the list price is the most irrelevant number in the whole process - the VALUE is what is important.
Its a strange time in the Sarasota real estate market. The prices have fallen remarkably low. However, no matter how low they fall, buyers still seem convinced prices are too high. With all evidence to the contrary, they want to lowball the offer thinking that the seller will be thrilled to get an offer. However,the sellers have come to the opposite conclusion. With inventory shrinking, and sales AND values rising - they think they have gone low enough. With season approaching and news media reporting that everyone should consider a Sarasota real estate purchase - they are feeling more empowered than they have in years.
So what happens when buyers don't want to admit that times are changing, and sellers insist they are? Buyers are often missing out on incredible deals as savvy investors are buying the best deals right out from under them. The market is undeniably changing. Buyers will need to adjust their thinking or face the fact that they missed the opportunity.
The GREAT NEWS for buyers? The prices are likely still near the bottom, the properties are still available, and the deals are still there. For now.
Monday, October 05, 2009
Why didn't you show me this one?
As exclusive buyer agents, we look at a lot of property. We research neighborhoods, scour county records, and run out to preview homes that look like great deals as soon as they are listed. We pride ourselves in knowing the current inventory in Sarasota.
Often people will call us and give us their criteria, asking for our assistance in finding a great property. Criteria usually includes price range, monthly budget, lifestyle preference, and size of home. Most often, I begin to visualize great options before I even open up the search screen.
Because of the great tools on the internet, folks can search on their own. This is valuable to us, because we can begin to see those types of properties that catch your eye. The most common question I get, though, is "Why didn't you send me these homes? (see attached link) They look great!"
The answer lies in access. I simply have more access, and more information, than you do when looking at listings. It's a perk of the license. The most common reasons I didn't send you the "perfect home at the almost unbelievable price" include:
1) The home isn't in Sarasota. Yes, I know the listing says it is. But it isn't. Sometimes listing agents put a more desirable address on a property. You can't tell its 30 miles away and 15 miles from a beach. But I can.
2) It's a short sale. Some clients are well educated on the short sale process and are willing to take on the challenge, and the waiting game. Many others do not have the time luxury to wait around months for a bank. Unfortunately, the listing that you see doesn't always say that the crazy low price you see is actually not bank approved. If you are looking to buy within a time frame, a short sale is not for you. But you can't see the status.
3) I know why its so cheap. It backs up to a major road, or is located next door to a garbage dump. Or it may just have really small lot sizes. Whatever the reason, you have told me your criteria, and I know this won't cut it for you.
4) Country clubs cost money. In this market, many of the homes in the country clubs have dropped in price dramatically, making lovely homes seem too good to be true. But while the home is great, and the community is awesome, there is a required membership fee to the club - and what I have learned in in most cases, only the most avid golfer is willing to pay a membership fee that seems pricey given the price of the home. By the same token, some condos have low prices, and sky high condo fees. These are often not evident on your information.
5) Your kids, your dog, or your work truck are not welcome there - That sounds terrible, but 55+ communities often will not allow occupants under 18, many places have pet policies, or HOA rules. Based on what you told me, I know you aren't moving here without your dog - or your kids! :) So I didn't include the property. Another spin on this is when you are looking for investment/rental property, and the association does not allow rentals.
I understand that when you see a home that looks fantastic, you want to know the information on it! And I am happy to provide it. Just know that we are working diligently behind the scenes, looking at every listing, evaluating if it is good for one of our folks, and sending it along to you. We are also screening the homes that may look good on the surface, but we know to be contrary to your needs or budget.
Together, well find a great Sarasota home.
Often people will call us and give us their criteria, asking for our assistance in finding a great property. Criteria usually includes price range, monthly budget, lifestyle preference, and size of home. Most often, I begin to visualize great options before I even open up the search screen.
Because of the great tools on the internet, folks can search on their own. This is valuable to us, because we can begin to see those types of properties that catch your eye. The most common question I get, though, is "Why didn't you send me these homes? (see attached link) They look great!"
The answer lies in access. I simply have more access, and more information, than you do when looking at listings. It's a perk of the license. The most common reasons I didn't send you the "perfect home at the almost unbelievable price" include:
1) The home isn't in Sarasota. Yes, I know the listing says it is. But it isn't. Sometimes listing agents put a more desirable address on a property. You can't tell its 30 miles away and 15 miles from a beach. But I can.
2) It's a short sale. Some clients are well educated on the short sale process and are willing to take on the challenge, and the waiting game. Many others do not have the time luxury to wait around months for a bank. Unfortunately, the listing that you see doesn't always say that the crazy low price you see is actually not bank approved. If you are looking to buy within a time frame, a short sale is not for you. But you can't see the status.
3) I know why its so cheap. It backs up to a major road, or is located next door to a garbage dump. Or it may just have really small lot sizes. Whatever the reason, you have told me your criteria, and I know this won't cut it for you.
4) Country clubs cost money. In this market, many of the homes in the country clubs have dropped in price dramatically, making lovely homes seem too good to be true. But while the home is great, and the community is awesome, there is a required membership fee to the club - and what I have learned in in most cases, only the most avid golfer is willing to pay a membership fee that seems pricey given the price of the home. By the same token, some condos have low prices, and sky high condo fees. These are often not evident on your information.
5) Your kids, your dog, or your work truck are not welcome there - That sounds terrible, but 55+ communities often will not allow occupants under 18, many places have pet policies, or HOA rules. Based on what you told me, I know you aren't moving here without your dog - or your kids! :) So I didn't include the property. Another spin on this is when you are looking for investment/rental property, and the association does not allow rentals.
I understand that when you see a home that looks fantastic, you want to know the information on it! And I am happy to provide it. Just know that we are working diligently behind the scenes, looking at every listing, evaluating if it is good for one of our folks, and sending it along to you. We are also screening the homes that may look good on the surface, but we know to be contrary to your needs or budget.
Together, well find a great Sarasota home.
Friday, September 25, 2009
Are you working with a Dual Agent?
In Florida, real estate agents have a legal obligation to disclose their relationship to you before you enter into real estate transactions. Most often, although the terminology may be different, these agents are "dual agents". Dual agents represent both sellers and buyers. There’s one clear way to prevent representation from a dual agent: Assume most real estate agents are dual agents, then ask them.
However, there is more to the issue than simply asking, “Are you a dual agent?”
The problem is that this question doesn’t get to the heart of the matter, leaving a little too much room for interpretation. For instance, an agent assigned solely to representing that firm’s home buyers could reasonably answer, “Of course not.” Meanwhile, his or her colleagues are actively adding listings for sale on the multiple listing service.
Here’s the question that gets right to it, leaving no room for creative interpretation: “Do you, or anyone in your firm ever list homes for sale?”
Some agencies might reassure saying the two functions are kept completely separate, with different agents representing buyers and sellers. But remember, when a house sells, real estate agencies split a commission of the purchase price. When an agency represents both seller and buyer, it also splits the commission—and then gets to keep both halves!
So ask yourself, what is the true reality that there will not be an implied incentive to sell the company's own listings? And that you will be presented, up front, with ALL the properties that match your requirements, regardless of who listed them?
The biggest issue that has bothered me is this - when you work with a real estate agent, you are actually represented by the brokerage firm. If this firm has entered into an agreement to get the highest and best fair offer for their seller's home - how can the same brokerage effectively negotiate the LOWEST fair price for the buyer?
If you want true, unadulterated buyer representation, and there’s any company connection to homes listed for sale, that’s your cue to move on. You will meet resistance from the traditional real estate model, because that's the way it was always done. But this is a challenging market, and you need someone representing your interests - and yours alone.
Postscript - I am continually alarmed in speaking with people that have been out with agents and have not been presented with a representation disclosure. It is Florida law that we present you with a Brokerage Relationship Disclosure. Ask for it!
However, there is more to the issue than simply asking, “Are you a dual agent?”
The problem is that this question doesn’t get to the heart of the matter, leaving a little too much room for interpretation. For instance, an agent assigned solely to representing that firm’s home buyers could reasonably answer, “Of course not.” Meanwhile, his or her colleagues are actively adding listings for sale on the multiple listing service.
Here’s the question that gets right to it, leaving no room for creative interpretation: “Do you, or anyone in your firm ever list homes for sale?”
Some agencies might reassure saying the two functions are kept completely separate, with different agents representing buyers and sellers. But remember, when a house sells, real estate agencies split a commission of the purchase price. When an agency represents both seller and buyer, it also splits the commission—and then gets to keep both halves!
So ask yourself, what is the true reality that there will not be an implied incentive to sell the company's own listings? And that you will be presented, up front, with ALL the properties that match your requirements, regardless of who listed them?
The biggest issue that has bothered me is this - when you work with a real estate agent, you are actually represented by the brokerage firm. If this firm has entered into an agreement to get the highest and best fair offer for their seller's home - how can the same brokerage effectively negotiate the LOWEST fair price for the buyer?
If you want true, unadulterated buyer representation, and there’s any company connection to homes listed for sale, that’s your cue to move on. You will meet resistance from the traditional real estate model, because that's the way it was always done. But this is a challenging market, and you need someone representing your interests - and yours alone.
Postscript - I am continually alarmed in speaking with people that have been out with agents and have not been presented with a representation disclosure. It is Florida law that we present you with a Brokerage Relationship Disclosure. Ask for it!
Tuesday, September 22, 2009
The View from Down Here
"Success is simple. Do what is right, the right way, at the right time." Arnold Glasgow
Oh that we could guarantee every move we made was the right one. As Sarasota buyer agents we are continually asked the "crystal ball" questions that all come down to this one sentiment -
"Is it safe to buy now?"
I can rattle off numbers at you. I can give you statistics. I can show you trends. Actually, I have done all that...read through the posts! Yes, it seems that in most cases, it is safe to buy right now. But you need to know what your goal is, and do the right thing to attain what you want.
If you are moving here to live indefinitely (once you get here, I predict you'll want to stay), now is a fantastic time to buy. Although the experts may disagree as to when the actual bottom will be - or already was - they do agree we are pretty darn close. As long as you have good information regarding neighborhood values, you will be just fine in the long run.
If you want to live by water or the beach, now is a fantastic time to buy. Can you get in for $200K? Probably not. But property that was listed for $1m just three years ago is now listed for $400K...this is a fire sale if ever there was one. Beach and waterfront have not lost their inherent value - we simply lost our buyers. But with so little true beach available, it will always - always - retain value. Investment 101- buy low!
If you want to buy and flip property, I would strongly caution you. I understand the draw. Prices in some cases are SO low that it seems like a no brainer. But the market is still not healthy enough to guarantee you can flip a property in a timely manner, especially after you sink money into renovation and upgrades. And even the aforementioned beach and waterfront property is a gamble - high end properties have not been moving the way people expected them to, even at deeply discounted rates.
What it comes down to is this - if a property will make you happy...if it will provide years of enjoyment...if you have always dreamed of sunsets over the bay - this is one of the best times in decades to buy a Sarasota home. If its strictly business, I recommend you build in a good amount of time needed to re-sell the property.
Overall, the view from down here - is looking up.
Oh that we could guarantee every move we made was the right one. As Sarasota buyer agents we are continually asked the "crystal ball" questions that all come down to this one sentiment -
"Is it safe to buy now?"
I can rattle off numbers at you. I can give you statistics. I can show you trends. Actually, I have done all that...read through the posts! Yes, it seems that in most cases, it is safe to buy right now. But you need to know what your goal is, and do the right thing to attain what you want.
If you are moving here to live indefinitely (once you get here, I predict you'll want to stay), now is a fantastic time to buy. Although the experts may disagree as to when the actual bottom will be - or already was - they do agree we are pretty darn close. As long as you have good information regarding neighborhood values, you will be just fine in the long run.
If you want to live by water or the beach, now is a fantastic time to buy. Can you get in for $200K? Probably not. But property that was listed for $1m just three years ago is now listed for $400K...this is a fire sale if ever there was one. Beach and waterfront have not lost their inherent value - we simply lost our buyers. But with so little true beach available, it will always - always - retain value. Investment 101- buy low!
If you want to buy and flip property, I would strongly caution you. I understand the draw. Prices in some cases are SO low that it seems like a no brainer. But the market is still not healthy enough to guarantee you can flip a property in a timely manner, especially after you sink money into renovation and upgrades. And even the aforementioned beach and waterfront property is a gamble - high end properties have not been moving the way people expected them to, even at deeply discounted rates.
What it comes down to is this - if a property will make you happy...if it will provide years of enjoyment...if you have always dreamed of sunsets over the bay - this is one of the best times in decades to buy a Sarasota home. If its strictly business, I recommend you build in a good amount of time needed to re-sell the property.
Overall, the view from down here - is looking up.
Monday, September 21, 2009
Forest - Meet Trees
You've heard the saying "you can't see the forest for the trees". Simply put, sometimes we get so hung up on details, that we fail to see the big picture.
In this real estate market, we see it alot. Caught up in the negotiation game, buyers walk away from a GREAT deal because the seller wouldn't give "just a little more". People pass on an incredible deal because the home needs new carpets...or a new roof...or an updated kitchen. But when a home is priced at 50% of market value, adding in the cost of these upgrades still makes it a steal.
Every day new clients tell us that they want "alot of house, a little bit of money". Of course they do, that's what everyone wants. But in the quest for the needle in the haystack, the deal of a lifetime, they often overlook opportunities that are, quite frankly, disappearing quickly.
As unfair as it may seem to everyone else, the incredible steals are sold to Sarasota area locals within hours of listing. The good news is, though, that with a qualified local professional sorting through the opportunity, we can still get you a fantastic deal before the window closes...
In this real estate market, we see it alot. Caught up in the negotiation game, buyers walk away from a GREAT deal because the seller wouldn't give "just a little more". People pass on an incredible deal because the home needs new carpets...or a new roof...or an updated kitchen. But when a home is priced at 50% of market value, adding in the cost of these upgrades still makes it a steal.
Every day new clients tell us that they want "alot of house, a little bit of money". Of course they do, that's what everyone wants. But in the quest for the needle in the haystack, the deal of a lifetime, they often overlook opportunities that are, quite frankly, disappearing quickly.
As unfair as it may seem to everyone else, the incredible steals are sold to Sarasota area locals within hours of listing. The good news is, though, that with a qualified local professional sorting through the opportunity, we can still get you a fantastic deal before the window closes...
Thursday, September 10, 2009
It's Not a Lowball Offer if its Accurate
I can't believe its still happening.
A seller puts a list price on their home. Apparently, they either have a misguided agent, or they choose not to listen to them. Granted - its a great house! But the home is grossly overpriced based on current market value and comparable sales. With the neighborhood knowledge we have, we can spot them immediately as overpriced for that area. I understand the psychology in play, but this market demands reality.
When our clients make an offer on a property, they do so with every bit of information we could find on value, comparables, upgrades, upcoming assessments...and we make FAIR OFFERS. Now, if someone has overpriced their home by $100K, and I make an offer $100K under their asking price, its not a lowball offer. It's a realistic offer. A market offer.
My home is worth about $400K in todays market. I can put a list price on the home of $750K if I want to, there is nothing to stop me. So does that mean if someone offers me $450K, that they are "low-balling" me?
No.
Sellers need to be open to hearing about the reality of market value, and realistically price the home. Then they, like other well priced properties, will likely experience multiple offers as the market improves. But getting offended because someone undercut your inflated price is not going to sell the home.
By the way, the elephant in the room is this - no matter what the agreed upon contract value, the home has to appraise. These days, getting a generous appraisal is unlikely at best. If you truly want to sell your home, take a deep breath, and find out what its worth and price it accordingly. Then my offer will be right in line with your price, and the deal will get done.
A seller puts a list price on their home. Apparently, they either have a misguided agent, or they choose not to listen to them. Granted - its a great house! But the home is grossly overpriced based on current market value and comparable sales. With the neighborhood knowledge we have, we can spot them immediately as overpriced for that area. I understand the psychology in play, but this market demands reality.
When our clients make an offer on a property, they do so with every bit of information we could find on value, comparables, upgrades, upcoming assessments...and we make FAIR OFFERS. Now, if someone has overpriced their home by $100K, and I make an offer $100K under their asking price, its not a lowball offer. It's a realistic offer. A market offer.
My home is worth about $400K in todays market. I can put a list price on the home of $750K if I want to, there is nothing to stop me. So does that mean if someone offers me $450K, that they are "low-balling" me?
No.
Sellers need to be open to hearing about the reality of market value, and realistically price the home. Then they, like other well priced properties, will likely experience multiple offers as the market improves. But getting offended because someone undercut your inflated price is not going to sell the home.
By the way, the elephant in the room is this - no matter what the agreed upon contract value, the home has to appraise. These days, getting a generous appraisal is unlikely at best. If you truly want to sell your home, take a deep breath, and find out what its worth and price it accordingly. Then my offer will be right in line with your price, and the deal will get done.
Thursday, September 03, 2009
Follow this Blog
Like what we have to say? We have added a feature where you can now follow this blog and be notified of new posts - simply scroll down and click the box!
New features also allow you to search the archives by keyword (also below) and easily leave comments, as well as email a post to a friend. Enjoy!
New features also allow you to search the archives by keyword (also below) and easily leave comments, as well as email a post to a friend. Enjoy!
Why Buy Before Season in Sarasota?
"Season" - Sarasota residents have a love/hate relationship with this time of year. Officially November through May, the real brunt of season is New Year's through Easter.
What is "season", exactly? Sarasota is a town with a growing residential population, but given our gulfside location, fantastic beaches and year round golf - we also have a huge popualtion of "snowbirds" and part-time residents. Add to those numbers the influx of tourists and vacationers, and the Sarasota population swells to twice its normal size.
While it can get a bit more crowded, season is a boon to local businesses, who often rely on seasonal visitors to sustain their business for the rest of the year.
With experts coming to a consensus that the overall market is heading for recovery, we have our own indicators. Sarasota's sales numbers are up, and our inventory is decreasing. Prospective buyers are reporting that their favorite "Watch properties" are being sold, and we are beginning to see multiple offer situations again on well priced property. US News and World Report says we are the 2nd most undervalued market in the country. Sales are expected to tick up as the first time home buyer credit program expires in November, further depleting inventory.
How does this tie to season? In Sarasota real estate, season has traditionally brought an upswing in prices as sellers anticiapte the influx of prospective buyers. While in recent years sellers weren't quite so optimistic, this year we are already seeing increases. With all the positive news, and homes selling better than they have in years, there is a real possibility that the months prior to season are a closing window to the best deals.
Besides, if you own property during season, you can rent it out ! We are, after all, a seasonal town. And traffic aside, for the most part, we love it.
What is "season", exactly? Sarasota is a town with a growing residential population, but given our gulfside location, fantastic beaches and year round golf - we also have a huge popualtion of "snowbirds" and part-time residents. Add to those numbers the influx of tourists and vacationers, and the Sarasota population swells to twice its normal size.
While it can get a bit more crowded, season is a boon to local businesses, who often rely on seasonal visitors to sustain their business for the rest of the year.
With experts coming to a consensus that the overall market is heading for recovery, we have our own indicators. Sarasota's sales numbers are up, and our inventory is decreasing. Prospective buyers are reporting that their favorite "Watch properties" are being sold, and we are beginning to see multiple offer situations again on well priced property. US News and World Report says we are the 2nd most undervalued market in the country. Sales are expected to tick up as the first time home buyer credit program expires in November, further depleting inventory.
How does this tie to season? In Sarasota real estate, season has traditionally brought an upswing in prices as sellers anticiapte the influx of prospective buyers. While in recent years sellers weren't quite so optimistic, this year we are already seeing increases. With all the positive news, and homes selling better than they have in years, there is a real possibility that the months prior to season are a closing window to the best deals.
Besides, if you own property during season, you can rent it out ! We are, after all, a seasonal town. And traffic aside, for the most part, we love it.
Friday, August 21, 2009
More Assistance for 1st Time Buyers
FannieMae announced this week new rules regarding the sale of their foreclosed properties. From now on, properties must be on the MLS for at least 15 days prior to any cash offers being made.
This move is structured to assist buyers who will occupy the home, and have lined up solid financing. In the current "cash is king" envoronment. cash investors were scooping up great deals on foreclosed properties and effectively locking out the traditional buyer.
This new move will allow prospective owners to see a home and negotiate an offer before the cash investors swoop in. This move should go a long way to helping the "ordinary home buyer" take advantage of the great deals in this market.
For more information, give us a call.
This move is structured to assist buyers who will occupy the home, and have lined up solid financing. In the current "cash is king" envoronment. cash investors were scooping up great deals on foreclosed properties and effectively locking out the traditional buyer.
This new move will allow prospective owners to see a home and negotiate an offer before the cash investors swoop in. This move should go a long way to helping the "ordinary home buyer" take advantage of the great deals in this market.
For more information, give us a call.
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