Great article on Cape Coral and Fort Myers in the May 2008 Issue of Boat US magazine.

View Acrobat PDF Article

View Boat US Online Magazine

View Acrobat PDF Article

View Boat US Online Magazine

UPDATE May 6, 2008:

Read the Wall Street Journal’s View of the national market “Housing Crisis Over” from May 6, 2008 Editorial Pages.

“The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.

How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won’t happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor.

Most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005. New home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50% and, adjusted for population growth, are back to the trough levels of 1982.” [Read more...]

Fort Myers, FL April 8, 2008

The REALTOR® Association of Greater Fort Myers and the Beach, Inc. reports that a total of 437 existing single family houses were sold in March 2008. The percent of sold to active listings has nearly doubled in the past 12 weeks.
In addition, 1096 single family homes are pending, reflecting a 45.3% upswing since the end of 2007.
While there has been more activity in the market, the median sales price was $205,000, up $15,000 from last month but 18% off what it was a year ago at $250,000.
“We’re cautious and optimistic about the recent activity in the market as the current absorption rate (supply in months) for residential properties is less than half of what it was at the end of December – 11 months vs. 23 months, and the lowest it’s been in over a year”, said President Ron Carpenter. “This means that buyers are realistic that good values and good properties are on the market and are buying while the interest rates are low. “

And we are fairly confident April numbers will be even stronger. The small indicators that don’t get reported are adding up: home inspectors are swamped, title agency offices are busy and open late on Friday nights…

Last year, the battle cry was for sellers to be realistic about home values.

And now we are happy to see that properties in our area are priced right. Looking at single family pool homes that sold in the last 30 days in zip code 33914, the average purchase price was 94% of list price. A few of those closed higher than the asking price, suggesting a bidding war on a well-priced property.

Here is a link to the CMA report (PDF Format):

33914 Pool Homes Sold, Last 30 days

Related Links: Lee County Market Stabilizes

Existing Home Sales Stabilize for February in Fort Myers-Cape Coral

Fort Myers, FL –The REALTOR® Association of Greater Fort Myers and the Beach, Inc, dba CORE, reports that existing single family home sales for February 2008 are even with last year, with 445 units sold in both February 2008 and February 2007. This is in comparison to statewide figures which show a declining trend of negative (25) twentyfive percent for single-family, existing home sales.

Existing condominium sales for Fort Myers-Cape Coral are up 19% versus a year ago, with 181 units sold in February 2008 versus 152 units sold a year ago.

The median sales price for existing single-family homes was $211,900 in Fort Myers-Cape Coral, which was above the statewide average of 198,900, but off from the prior year by (17) seventeen percent. Existing condominium prices fell short of last year by (19) nineteen percent, with a median price of $199,200 for the Fort Myers-Cape Coral market.

“These figures reflect what our members have been seeing in the past few weeks – we’ve had more buyers interested in viewing properties, more prospects attend open houses, and more home buyers presenting sellers with tangible offers”, said President Ron Carpenter. “There are some beautiful properties available in this market at a very good value, and with the low mortgage rates, buyers are realizing that now is the time to buy”.

From the Cape Coral Daily Breeze, Nov 2007 

Controversial property insurance reform passed in January should start to make an impact at the start of the coming year, according to a pair of local legislators.

State Sen. Burt Saunders, R-37, said Friday that Florida’s Office of Insurance Regulation informed members of the state’s legislature that residents can expect a major drop in the cost of property insurance.

“There are estimates that with the new proposal that went into effect this past year is that the insurance rates could be dropping as much as 20 to 25 percent as we get into 2008,” he said in a telephone interview.

Rep. Gary Aubuchon, R-Cape Coral, took a similar view.

“The rates come down as each individual insurance company purchases their reinsurance policies,” said Aubuchon. “Depending when that renewal period is is when ratepayers should see lower rates and for some, it’s already begun.”

Before the reform measures were approved, insurance companies in the state of Florida would provide their own insurance to customers and cover the cost of losses through the premiums that they receive. But it would also “insure the insurance” by purchasing coverage for themselves from reinsurance companies. These firms, many of which are based overseas, allow for insurance companies to smooth their income and transfer risk so that they can provide higher limits of protection than they could underwrite on their own. The new insurance laws have changed that system completely. (more…)

It’s that time of year when we have many vacation property buyers. For some, the idea of owning a property far away from home is new and a bit daunting. But rest assured, it’s business as usual in our neck of the woods and there are several options for keeping your property safe and secure while you’re away.

Vacation Property FAQs
If you are thinking about purchasing a vacation property, chances are you have these questions in mind:
• Who will take care of the home or condo while you’re away?
• What does it cost?
• What other expenses should I expect?

Of course you want to protect your investment and so you will need someone who looks after your property and ensures that small problems don’t become big ones. For example, if the air conditioner were to break down and go un-noticed for a long period of time, mold and mildew will creep in. There are a couple of options for protecting your investment.

OPTION A: Professional Home Watch
In our area, many property owners hire a Home Watch company to perform routine inspections. This is true whether the property is a single-family residence or a condo. First, let’s look at the basic services a home watch firm typically offers:

• Check Security of all doors and windows
• Check for water intrusion
• Check security system
• Monitor A/C and humidistat
• Check smoke detectors
• Inspect circuit breaker for tripped breakers
• Check and run all appliances and plumbing
• Check automatic sprinklers
• Check ice maker for on/off production
• Check for pests/insect intrusion
• Check lanai and screens
• Verify pool, pest, and lawn service consistency and quality
• Immediate reporting of any abnormalities found

Additional services that might be offered or required are:

• Start and run vehicle(s) and boat(s)
• Guest or tenant check-in/check-out
• Meet and provide access for service people and deliveries
• Arrange cleaning services (prior to your arrival, for instance)
• Storm preparation and inspection
• Airport transfers
• Pre-arrival shopping and errands (concierge-like services)
• Handyman jobs

Routine inspections are usually once per week and you should receive regular correspondence from the service company detailing what was inspected and if any action is needed to prevent or address issues. Most often, the report is “all A-OK,” giving you peace of mind that nothing is amiss.

Depending on the location and size of the property and the frequency of service, fees range about $60 to $100 per month. If yours is a home, you will also need separate services for lawn care (about $90/month) and pool care (about $80/month). If yours is a condo, the association fee covers all exterior maintenance, including lawn care.

The Home Watch option is ideal for vacation property owners who are not renting their property, or for those who are renting, but are managing the rentals themselves (through a vacation rental web site, for example).

OPTION B: Professional Leasing Firm
For those planning to seasonally rent the property, and for those who want soup-to-nuts service, a property leasing firm can help.

Along with the services of a home watch company, the leasing firm markets your property, handles tenant applications and payments, checks tenants in/out, arranges end-cleaning, pays expenses out of your escrow account, provides monthly reports, and supervises repairs. Expect to pay 10-20% of gross rent for a full-service property management firm. Note that not all property management firms offer routine inspections, so a separate home watch service may still be needed.

WHEN TO HIRE
Most of our clients start the selection process after there is an accepted contract because the service firms usually operate in specific geographic areas. And some limit the types of properties they service (condos only or homes only) or the types of rentals (annual only or seasonal only). So it’s not necessary to start shopping for a service until you know the type of property, its location, and the specifics on what you’ll want them to do for you. Otherwise, you likely will spend a lot of time interviewing companies that are not right for the property.

Yesterday, I had the pleasure of meeting Bob Hensley, CEO of Grosse Pointe Development Company, and the developer of the beautiful Tarpon Point Marina community in Cape Coral. What a breath of fresh air. Bob is one of the few developers in the Cape that is still making significant investment in his holdings and he’s got the passion, vision, and resources to get the job done. Soon Grosse Pointe will break ground on Marina Village, a condo-hotel project on the waterfront with full resort services along with retail and office spaces.

Tarpon Point Marina is a luxury waterfront community on the Caloosahatchee River, with full service marina and many other amenities. Shown here is Tarpon Landings, the most recently completed project in the community.

It’s heavenly now and with Marina Village built-out fall of 2009, it’ll be one of the most spectacular waterfront resorts in South Florida. Oh, and Brenda was happy to confirm what we’ve long suspected: yes, that’s Bob’s helicopter that passes over our neighborhood every Friday afternoon on his way home from his commercial projects in Orlando.

Can’t wait until 2009? Check out current resales in Tarpon Point Marina.

Many people are under the impression that homes that are being sold as a “short sale,” are priced lower than market value. The short sale is new phenomenon where the mortgage holder is the ultimate decision maker on price, terms, and all aspects of the real estate transaction. But hey, many say, they are selling “short,” and therefore it’s worth the hassle to get the bargain.

It is “short?” Here are two nearly identical properties: both built in the last 6 years, both 3 bedroom, 2 bath, tile roofs, pool, and on Gulf Access canals. One priced at $534,900; the other at $449,000. Which is the short sale?

The $534,900 house is the short sale. A bargain? The $449,000 house is the one that was priced right and a “normal” transaction. It sold for $400,000. (If you would like MLS details on either of these properties, let us know and we’d be happy to send it to you.)

It can take weeks or months before the lender will even respond an offer. So that means a buyer and seller are on hold while the lender keeps the property on the market. All the usual protocols of offer, counteroffer, and acceptance are thrown out the window; the lender holds the cards. This means a lot of confusion, frustration, and sometimes heartache.

There’s a lot more to know about short sales, and we advise proceeding with eyes wide open if you entertain this option. And, yep, we know this is a controversial topic and undoubtedly we’ll get some passionate feedback on this one.

You know the saying… if it sounds too good to be true, it almost always is. Unfortunately, the real estate industry has its fair share of scammers, whether on the mortgage front or slick tricks for conning property buyers.

Because Florida is a popular choice for people looking to purchase a second home, there are a few bad guys our there trying to swindle the vacation home buyer segment.

Here are some tips to help you stay away from the bad guys, ensure your property shopping and buying experiences are happy ones, and that your next purchase is one you will be proud to have completed.

• Be cautious about interpreting property values that are published on the Internet. Some home valuation sites can be helpful in getting a ballpark figure, but they are typically not up-to-date and they might be showing manipulated data. Use an independent human resource (your agent or an appraiser) to present you a qualified opinion of a property’s value. That human being will also provide you the facts behind the valuation so that you know it’s not smoke and mirrors.
• Run, don’t walk, from anyone who says the property is “guaranteed to appreciate.” There is no such thing as guaranteed appreciation in real estate. Property values fluctuate over time. 
• Hire a real estate agent to look for homes and represent you. Don’t contact a builder, talk to the representative in the model home, or contact an anonymous person selling real estate online. In those instances, you do not have anyone representing your interests.
• Get help with contracts. Standard builder and developer contracts can be very one-sided in their favor and there will be pressure to sign while you are emotionally in love with the property. If you have a real estate agent working for you from day one, they will represent you in negotiations with the builder or developer and ensure that you have adequate safeguards in the contract.
• So much to feast on, it smells funny? It can be appealing to consider buying an investment property that offers soup-to-nuts services included. Some scammers offer to do everything for you after you buy… paying your mortgage, taxes and dues, finding tenants, collecting rent, managing repairs, and more. But that scammer might disappear after your closing, leaving you without resources for managing the property. There are certainly many reputable property management firms and brokerages that are full service and stick to their word. Check references and have your buyer’s agent look into the entire situation.
• Unless you are familiar with the neighborhood or development and you are working with an agent that you trust, be careful about buying sight unseen. This is especially true if there is pressure to BUY NOW of if there is flimsy rationale as to why you should not to view the property in-person. Buying sight unseen is not always risky. For example, suppose a condo in one of your favorite developments (one that you or a friend has visited) becomes available and has all the ingredients you’ve been looking for (the view, the floor plan) but you are unable to travel to inspect the unit. Your real estate agent can present a contract to the seller that protects you, even though you’ve not seen the property.
• Always have a professional inspection prior to closing. While doing an inspection is the buyer’s choice, be wary of any seller that suggests an inspection is unnecessary. Even on new construction, you’ll want a professional’s report on the property’s condition. 

For most people, their second home is a dream home and is one of the most rewarding investment and lifestyle decisions they ever made. And it can be for you too. Be wary of anything that sounds too good to be true, work with an agent to look out for your best interests, and you’ll be on your way to that dream home and the lifestyle you deserve.

ORLANDO, Fla. – May 31, 2007 – A top Florida economist has declared the housing slump a done deal. “It will take another 18 months or so before closing volumes reach more normal levels, but the worst is behind us,” says Hank Fishkind.

Fishkind says the turn-around is important to everyone, attributing housing troubles to the recent 75 percent drop in GDP (gross domestic product). The current 1.3 percent rate is down from the historic 4 percent pace, but Fishkind says that dropoff would go away completely when housing simply returns to normal levels.

“With (the number of home) starts below (the number of) closings, the inventory of new but unsold homes is slowly being absorbed,” says Fishkind. “Sales of existing homes are the best leading indicator for national housing markets. April sales were off sharply, falling below 6 million at an annual rate. At these levels it will take 8.4 months to sell all the homes that are for sale. However, prices remain stable. And the sales levels, while down this month, were up sharply earlier in the year.

“What all of this means, is that we have seen the worst for housing markets,” Fishkind says.

Related Posts: Are We There Yet?, Looking for Great Lot Prices?

Thinking about purchasing a wet slip or dock in Southwest Florida? This slip comes with a 16,000 lb lift and a 2 bedroom, 2 bath condo with community pool. So after a long day of fishing or cruising and all that fresh air, you can stumble up to your 1,100 SQFT condo and crash or take a refreshing dip in the pool.

The condo’s dedicated slip can accommodate a 38′ boat without the lift. With the already-in-place 16,000 lb lift, it will accommodate about a 30′ boat.

This Cape Coral, direct (sailboat) access property is located literally just a minute or two from the Caloosahatchee river and is on a wide 200′ canal. No bridges, no locks, no marina fees. Just one low price and low condo association fees, and a place that is your own.

Compare the price and value of this property with slips nearby…..

• This Beach Parkway condo and its dedicated dock with lift: $239K. Monthly condo association fees $300. No extra fees for dockage.
• Gulf Harbour 38′ marina slip: $225K. Monthly association fees $250.
• Sanibel Harbour 30′ dry (rack) slip: $120K. Monthly association fees $250.

Oh, and bear in mind that there is property tax on standalone deeded slips. For example the 2006 taxes on the Gulf Harbour 38′ slip were just over $2000. The 2006 taxes on the Beach Parkway condo with slip (non-homesteaded) were $4500.

Beach Parkway in Cape Coral is a popular location for boaters. It’s close to area shopping, dining, and the wonderful riverfront Jaycee Park is just down the street.

Sound interesting? View more details about this well-priced condo.

If you are thinking about snatching up some vacant lots in Southwest Florida, particularly Cape Coral, you’ll love this trend chart.  Dry lots that were close to $100,000 over a year ago are now selling for under $30,000. Freshwater Cape Coral lots are on a similar trend, going from $140,000 at the peak down to $45,000 at the bottom (Freshwater appears to be edging back up a bit).

Good news for buyers. Not so good for sellers (there is a surplus of vacant lots on the market right now, so sellers, if you can, hold off until inventory is reduced).

 Related Posts: Are We There Yet?, Lee Belies National Trend

Just like the kids in the backseat… the question we hear over and over about the Southwest Florida market bottom… “are we there yet?” For today’s market update, we looked at waterfront sold properties in Cape Coral covering a span of just over two years.

The graph below paints a vivid picture. You can see that the peak prices for all Gulf Access homes occurred in the 4th quarter of 2005. Prices steadily declined from that point, and after steep drops, a beginning of a levelling off. The bottom of the bottom for Gulf Access Homes (one or more bridges) is behind us, having occurred in Q1 of 07. Price per square foot on Gulf Access Homes appears to be creeping back up.

Related Posts:  Lee Belies National Trend, Knock Me Off My Chair, Vacant Land Dry and Freshwater Update, Search All Area Listings

While helping a family member to relocate from St Paul, Minnesota to Florida, we recently had the opportunity to get familiar with a little-known 55+ community in Fort Myers called Seven Lakes. It’s a tucked away hidden gem in the heart of Fort Myers.

Seven Lakes is a retirement golf community for active seniors, and boy are they active. Golf leagues, tennis, pools, bridge clubs, bingo nights, poker rooms, ceramic and woodworking hobby rooms, exercise classes, beach trips, shopping trips, casino trips, dancing and entertainment… the list of community activities goes on and on.

All that and it’s also surprisingly affordable to live there. There are small 1 bedroom, 1 bath condos under $100,000 (not a typo) and larger 2/2 condos or villas ranging from $120,000 to $289,000. Association fees (about $400-$600 monthly, depending on the location) include bundled golf and all the other amenities.

Most residents zip around the community on their golf carts. All in all, a friendly, active, well-managed 55+ neighborhood… we’ll be visiting often.

More About Seven Lakes, More Communities, Search All Area Listings

For the last 18 months, our local newspaper had only doom and gloom reporting when it came to our local real estate market.

Our editorial cartoonist, Doug McGregor (a.k.a. Mr. Negative) has been on the same bandwagon week after week after week.

So you could have knocked my off my chair this morning when I flipped to the editorial page to see a cartoon that is… gasp… positive! See also Lee County Belies National Trend.

From the News-Press, April 25, 2007

The number of existing houses sold in Lee County spiked up sharply in March, after a long slide that began last summer.

Meanwhile, prices increased slightly although still far below the salad days of late 2005 and early 2006.

There were 636 single-family homes sold with the assistance of Realtors in March, according to a report issued Tuesday by the Florida Association of Realtors.

That’s up 50 percent from February’s 423 but still below the 955 sold in March 2006.

The median price increased 5 percent to $268,000 from February’s $256,100 although that was still 5 percent less than $281,300 a year ago.

Nationally, the situation was gloomy.

In a separate report released by the National Association of Realtors, sales of previously owned homes in the U.S. declined to the lowest level in almost four years, delaying housing’s recovery from a slump that’s shown signs of reaching bottom.

But in Lee County, one seller said he’s happy to see the market come back to life a little. Jeff Bryan sold a house in The Forest in south Fort Myers in three days recently for $1,005,000.

“I sure did, and it’s in the just-over-a-million-dollar market, which is a pretty rough market,” said Bryan, who built the four-bedroom, two-and-a-half-bath house as an investment. “There’s no way it would have happened six months ago.”

He attributed the quick sale to a growing awareness by buyers that “they can get some bargains out there.”

Sales and prices topped out in 2005, with the median price reaching a high of $322,300 in December and sales a high of 1,309 in May.

Prices have generally been increasing slightly since October 2006, but the number of sales has been flat or declining since July 2006.

The inventory of unsold homes on the market was 12,644 in March, about the same as February’s 12,436 but more than three times the level of a year ago, according to figures compiled by the Realtor Association of Greater Fort Myers and The Beach.

While the inventory isn’t falling, sales and showings are increasing.

In Collier County, the Naples Board of Realtors hasn’t reported its sales to the Florida Association of Realtors since December.

Naples Board President Spencer Haynes, of John R. Wood Realty, said his group decided to issue its own numbers “unless they change the way they present the numbers.”

For one thing, he said, the statewide figures include any sales made by an agent in the associations based there. For example, if an agent who belonged to the Naples group sold a house in Estero, that would be counted in the Collier County report. He said the Naples group will only release quarterly figures because monthly doesn’t tell the whole story because of volatility in the real estate market.

The Naples group’s figures show the median price in the first quarter of 2007 was $399,512 compared to $375,000 in the fourth quarter of 2006.

In Charlotte County, the price fell 14 percent to $193,000 from $224,700 a year ago while the number of sales fell 25 percent from 315 to 237, according to the Florida association’s report.

Related Links:  Southwest Florida Market Cycle, Search All Area Listings

INC Magazine rates Cape Coral-Fort Myers #1 for 2007 in its Best Cities to Do Business annual report. The magazine rates the Cape Coral-Fort Myers as #1 for mid-sized cities and #4 overall (all cities, no matter the size).

Read the full story: INC’s Best Mid-Sized Cities for Doing Business

Related posts: Lee County Homes Sales Belie National Trend

Live, work, shop, play all within walking distance from your new home. Bell Tower Park is an amenity-rich gated community in the heart of Fort Myers, Florida. This 2nd floor Devonshire unit has sweeping views of the lake and common grounds.

This contemporary floor plan of over 2300 SQFT under air has 3 bedrooms, 2.5 baths, media room (a.k.a. den/office/guest room), great room, lush master suite, and a wrap around lanai that’s heavenly for entertaining and taking in the sights. You’ll find beautiful tile, crown molding, solid surface counters, and more details to appreciate. And room for all your toys in the 2 car garage.

Relax or entertain at the resort-style pool (shown above), clubhouse, and game room and there is plenty to keep you active: tennis, walking paths, billiards, and more.

View Details and more photos on this property. Search the Local MLS.

View more featured properties.

This impressive Lake Finisterre pool home is THE best lake property value in Cape Coral, Florida. Not only can you enjoy boating, fishing or skiing on the lake, but also boat out to the Gulf of Mexico. This property is Gulf Access, no locks or lifts, 20 minutes to the Caloosahatchee River/Gulf, and one bridge (10′25”). Check out the view from the huge lanai and pool area!

A rare find that’s right-price and move-in ready. The savvy buyer will have it all at an unbeatable price:

• wonderful 3-2-2 pool home
• enviable corner lot with 140′ of waterfront
• spectacular views
• tranquil and private setting
• mature landscaping
• fantastic boating

This home is sold turnkey—fully furnished right down to the silverware. So bring your toothbrush and move right in. 

Home features include cathedral ceilings, pocket sliders (living, kitchen, and master bedroom), large kitchen, in-residence laundry, new roof in 2005, new screening, and beautifully decorated. Priced at just $425,000, there is not a Finesterre house or even a lot that comes close to this value!

Related Links: View Details on This Listing, Search Cape Coral-Fort Myers MLS, Learn More About the Waterfront 

In a prior posts, we mentioned that in this buyer’s market, one strategy that works for “getting the deal,” is to make a list and work the list. Here, straight from our client’s fingertips, is a case story on how the strategy worked.

Buyer’s Profile: UK national, avid boater, entrepreneur in manufacturing, self-proclaimed “cheap Irishman,” looking for a DEAL
Objective: one or two waterfront homes for investment and for seasonal vacation for him and his immediate and extended family
Budget and Timeframe: $750,000 US, November 2006

IN JIM’S WORDS:

Last year I decided to start looking for a nice waterfront property on the gulf coast of Florida, it’s a place I’ve been to several times and I’ve absolutely loved it. The climate is perfect, the people are friendly, the fishing’s good, the wildlife is wonderfully different and most importantly….. you get a lot for your ££££’s (pounds) !!!

I’d heard quite a lot about Cape Coral from various TV travel shows in the UK and by word of mouth, and the apparent lifestyle there really appealed to me, having a home with a pool and my own boat at the bottom of the garden sounded like paradise…

So I got in touch with Brenda from SageRealtor Group, through a web connection. I was initially very impressed with their professional and easy to use website and I started bombarding her with questions… She was a terrific help and it was great to know at that stage that the whole process of finding, and buying a property was going to be no problem with Brenda and her husband Dave as my right hand !! It was the icing on the cake when I discovered that the property seller paid their commission , it was going to cost me nothing !!

For the next 4 or 5 months we kept in touch and they quickly got a good feel about the type of property I was interested in and were terrific at steering me in the right direction for the right property.. When my partner and I arrived we were made to feel most welcome by Dave and Brenda, genuinely lovely people, nothing was a problem.. Armed with numerous property leaflets, we set off to view the first properties with Dave and Brenda, feeling like royalty in the back of their Jaguar. At the end of the first day they had a good idea of what we liked and didn’t like, with this information in mind Dave and Brenda arrived the next morning with a fresh set of properties for us to view, which they had found, studied and printed off the night before.

We saw many wonderful homes, and during the day I started compiling a list of places I would be happy to buy, without getting too sentimental about any of them. We ended up with a possible list of 6 favourite properties, I knew that I would be happy with any of the properties that I had selected, if I could get an outrageously good deal on any one of them.

I started by selecting my 2 favourites and put offers well below the asking price on both of these properties, in the knowledge that if they weren’t accepted I’d move on to the next ones on the list. With expert lobbying by them to the listing agent, the offer on my first choice was accepted and I was extremely happy….

“He who dares, WINS” is the motto to this story !! I will be eternally grateful to Brenda and Dave for helping me, without them, I would NEVER have been able to get such a wonderful dream home at such a fabulous price.

- Jim

END RESULT
This strategy worked for three key reasons. First, having the market knowledge to know which properties met the client’s objectives and that were ripe to sell below asking price. Second, the buyer was emotionally ready to move on to the next “top pick” if an offer was not accepted or if the counter-offer was not acceptable to him. Third, the listing agent was informed that the buyer was working a list, an important factor in presenting the offer to her client. The seller decided to take a firm offer on the table now, rather than wait and see if another comes later and perhaps with less favorable terms.

This strategy is less effective without strong terms. For example, it likely would not fly if the offer had a contingency of 80% or more financing. Most sellers would not concede such a drastic price reduction when it’s iffy if the person will qualify for a loan.

MORE DEALS AWAIT
Those waiting to hear about the bottom in the news will be too late, as the news media generally reports what has happened, often using statistical data from several months prior. Having said that, rumbling of the bottom hitting is already dripping into national news, to wit:

“After bottoming in the fourth quarter of 2006, existing-home sales are forecast to gradually rise through 2007 and into 2008,” says David Lereah, chief economist.

But more meaningful is what’s happening locally. A month ago, for example, we could find ridiculously great deals on sailboat access waterfront homes all day long, but inventory is diminishing. Never ones to use high-pressure sales tactics or to create a false sense of urgency, we do feel it’s our obligation to say that if you’re thinking about buying in SouthWest Florida, you’d be wise to get the ball rolling now. Condos are especially good buys right now, as are waterfront homes.

Related Posts: Buyer Shopping FAQs, Buyer Closing Costs, UK Buyer Experience

Along the San Carlos Canal, this condo offers great dolphin watching and you’ll enjoy watching the boaters cruise by too.

It’s a Gulf Access 2/2 condo in Southern Cape Coral Florida. Ground Floor with a large comfortable lanai with expansive canal and pool views. Impeccably maintained and updated with top-quality materials: new appliances, raised white panel cabinets, new lanai tile, wonderfully rich Pergo wood floors, new Lexan Glass sliders, new air conditioner, new hot water heater and more.

Lush Master Suite with sliders to the lanai. Only 32 units in the building, with wonderfully maintained exterior, lush grounds, and LOW monthly fees of just $186/month. Just 15 minutes and one bridge (10′) to the Caloosahatchee River and Gulf of Mexico via the San Carlos canal.

All this for just $269,000. 

View details, or email us if you are interested in knowing more about this property.

If you are starting to shop for a home, condo, or investment property, you’ll be pleasently surprised by our NO PRESSURE, EVER philosophy. Our job is to help you find the ideal property, one that meets your objectives for location, price, features, cost of ownership, and similar requirements that you have. Here are a few FAQs that will help you get to know how we start working with buyers. If we have not answered your questions, please email or call us anytime.

#1 Which Listings Do You Show?

We show you any property on the market that you want to see. It does not matter if the property is offered by a different brokerage firm or a developer. Our responsibility to buyers is to scout out the best properties that match the requirements, period.

#2 When I Search Your Web Site, Which Listings Do I See?

Your search results will show all properties on the market that match your search criteria. Again, it does not matter which brokerage has the property listed. You might get some of our listings, but you’ll also get listings from brokerages all over SouthWest Florida. As in Question #1, we show you any property you want to see. We don’t show you properties you don’t want to see. We’re not going to “push” you towards our listings; we believe that’s an unethical way of working with buyers. If you have not yet, try the property search on our web site: search area listings in Cape Coral, Fort Myers, Punta Gorda, Naples, and surrounding areas. It’s a powerful search tool and you can save favorites, save listings, and more.

#3 So If I Like A House Listed by ACME Realty What Do I Do?

Let us know. We’ll get you more information on the property and schedule a showing appointment at your convenience.

#4 What if I Drive By a House Listed by ACME Realty?

Call us. We’ll get more information and schedule a showing for you. Often, it’s possible to schedule a showing within an hour and sometimes even less.

#5 Who Pays Your Commission?

The seller pays the sales commission. The seller is hiring the services of real estate professionals to find a willing and able buyer for the property.

#6 Why Is it Beneficial if You Search Properties For Me?

If you are not familiar with the neighborhoods, we save you a lot of time and frustration. Our expertise and experience on neighborhoods, pending assessments, construction details, association fees, and location, location, location is what we put to work for you. Instead of searching and searching only to find out that what appears on the surface to be a great house is not…. Let us do the leg work for you.

#7 How Do You Send Me Properties Online?

If you’d like us to scout out properties for you, there are a couple of ways we can get you listing details. We set up search criteria for you and then email links to the listings. And (or) we can also set up a “portal” for you that has great features, such as the ability to save or reject listings and save notes. In all cases, you browse the listings at your leisure. Our job is to point out which are the best of the bunch (price, location, features, etc.).

#8 Have More Questions?

Let us know. We respond quickly and there’s no obligation, really. We love what we do and consider it a pleasure to help buyers move in the right direction, whether now or months or years down the road.

Related Posts:  Best Searches Online, UK Buyer Experiences, Buyer Closing Costs, CMA - What to Look For

Talk about opportunity knocking for European property buyers who are thinking about purchasing property in Florida. This is a rare situation where there is both a buyer’s market and an excellent exchange rate. 

A pound buys $1.95 to $1.98 US and the Euro is holding at $1.33. When you take into account that Real Estate prices have dropped 20% to 30% in the single family market in SouthWest Florida, Europeans can now buy a beautiful waterfront home along Florida’s gulf coast of Mexico for 30% to 40% less than it would have cost one to two years ago.

 Wish I could buy a flat in South London for a 40% discount!

- Mark

Over 80% of home buyers start their search for a property using the Internet. And it’s wonderful. At your own pace, and on your timeframe, in the middle of the night or on a lunch break… you can preview properties, neighborhoods, school information, and so much more. So where is the best online location to search? Web sites such as realtor.com, craigslist.org, oodle.com and others offer tons of properties, but are they the right place to search?

Aggregators = Not Always Current Info

Those web sites are aggregators, meaning they pull data from regional Multiple Listing Service (MLS) databases from all over the nation or world. Pretty nice, right? The issue with aggregators is that they most often have out-of-date information. The aggregator web site is not real-time (not instantaneous) as are most regional MLS databases. This means shoppers are bound to get frustrated with the process. You find a property, start to get excited about it, and then find out later that the entire time you were dreaming about the property it was already sold or no longer on the market.

We’ve seen it often enough: a client finds a property on realtor.com, asks us for more information, and we look up the current listing in our local MLS database to find that the property is no longer available. The client wonders how can that be? I’m looking at it right here, right now, on realtor.com… and it’s for sale. If the property status (price, sold, withdrawn, etc.) has changed in the last week or two, chances are the data on the aggregator’s web site is old as they only periodically grab updates from the regional MLS databases. If you think about it, it makes sense. If they are aggregating data from hundreds or thousands of databases, how can they realistically have “up to the minute” information every hour of the day or even every day or week… for the entire world?

And most people spend a few minutes or and hour studying a property online: reviewing its features, going over the pictures once or twice, viewing the virtual tour, showing it to the significant other and checking out the neighborhood or schools nearby… only to later learn the home is not available. Arrrgh.

Good News

The good news is that for sellers, it’s great to get a for-sale property on as many web sites as possible and the aggregators are a big help for just that.  We publish listings to the consumer sites mentioned above, and others too. (Unfortunately, we don’t have any control over how quickly our listing data gets updated on those aggregator web sitses.)

And for buyers, the search options are many, and options are a good thing.

Searching Local MLS Only

To search a local MLS, it is easy to find regional MLS search tools directly, from a number of resources, and know that you are seeing up-to-the-minute, correct and accurate property information.

Most regional Realtor boards offer a public search tool, directly linked to the board’s MLS database. Or better yet, look for an advanced tool, such as the search tools on our SageRealtor.com web site. (Try it now: search area listings in Cape Coral, Fort Myers, Punta Gorda and surrounding areas). Ours is a direct link to every listing in the regional SouthWest Florida MLS database. And it’s a powerful search: you’ll find advanced search criteria (pool, waterfront, view, etc.) and “shop while you sleep” by signing up for email updates based on preferences. There is also a save properties feature, to a “cart” or “wish list,” so that you can review favorites again later. So you have the convenience of advanced tools, without the frustration of old or incomplete information.

SageRealtor offers the advanced search free of charge, with NO obligation. And it’s private: no phone number is required to sign-up and we won’t contact you via any means (phone or email) unless or until you ask us to.  

For those who want even more advanced features, we offer a client portal, essentially a private, personalized shopping basket that automatically updates the second something changes in the local MLS. Clients get email updates, log-on to the portal anytime and view additions, view changes, and decide which ones you want to save or reject. There is even a comment feature, so that you can make notes for each individual listing. (Contact us if you’d like us to set up a portal for you.)

So when starting a property search, it’s worth a few extra minutes looking for a local regional MLS search tool that will save you time and aggravation down the road.

In Florida, the bulk of the closing costs are paid by the seller (title insurance policy and real estate commissions). But there are some costs buyers need to be aware of.

Here is a summary of estimated closing costs for a typical residential transaction:

• Recording of Deed: $60
• Pro-ration of property taxes for the calendar year (annual taxes are paid in arrears in Florida)
• Pro-ration of dues (HOA fees or similar)
• Property boundaries survey (if required by you or your lender): $200
• Professional property inspection: $350
• Appraisal, if required by you or your lender: $300
• Miscellaneous other fees: $150 to $300
• Attorney Fees, if required by you or your lender: variable amount

There are additional fees if you are taking out a mortgage:

• Documentary stamp on mortgage: 0.35 per $100 financed (e.g., on a mortgage of $250,000 the doc stamps are $875)
• Recording of Mortgage: $60
• Intangible tax on mortgage: .002 on mortgage amount (e.g., $500 on a $250,000 mortgage)
• Fees charged by your lender (processing fees, points, and so on)

The above estimates are a good guideline, but be sure to work with your agent on a buyer’s “net sheet” before writing a purchase contract to determine your specific costs. Also, a week or a few days before closing, the title company will provide you a settlement statement (called a HUD) that states all fees, to whom they are paid, and your final amount due at closing. Both you and your agent need to review this carefully prior to closing.

UK nationals love Florida. And they love the current exchange rate even more. In the last 10 days, we completed two property purchase transactions for UK clients. One client lives south of London. The other is from northern Ireland. Both purchased beautiful waterfront vacation homes in Cape Coral.

Their parting words before heading back: “It was so much easier than we thought it would be! Thank You.”

The thought of purchasing property in another country is daunting, but the process is much smoother and faster than most non-US residents think. Our London client said that what took him just a few days in Cape Coral would have taken him months to do in the UK. We completed all the critical steps in the purchase transaction, from seeing many properties and choosing the best of the best, to writing the contracts and completing negotiations, to getting the home inspection done (equivalent to a survey in the UK), to getting all of the paper work and wire transfers completed.

Now that the key steps are done, we facilitate the remaining activities required for closing and communicate progress and status with the clients on a regular basis. The actual closing will occur via overnight mail. The buyers do not need to return to Florida to close the transaction and take possession of the property.

The keen efficiency of the process boils down to three key elements. The first is that the SageRealtor Group does a lot of proactive work to prepare for the client’s visit, the objectives, and the properties that will be of interest. This preparation includes educating our client on the process, the contracts, what to expect at each step of the way, and how best to protect their interests. The second is that the Florida’s real estate contracts and processes are wonderfully standardized and highly regulated by the state.  The third is that there are no government hurdles to jump through and no special requirements of European buyers. The process is the same as it is for us.

Outside of the real estate purchase itself, both clients were quite impressed with other services they received. While at a local bank, both clients were delighted with how friendly the bank personnel were and how little time it took to set up local accounts with online bill pay features. Both could not believe the speed and thoroughness of the inspection team and how quickly we could get the inspection scheduled. And of course, both enjoyed lovely weather, savored relaxing boat cruises on our ‘31 Tiara (there is nothing like seeing SouthWest Florida from the water), and are thrilled with the purchases they made (our Irish client is 6 foot 5 inches tall and a strong man; he picked Dave up off the ground when he heard the news that he got the house he wanted at the price he wanted… I guess he was, as he’d say, a wee bit happy.)

From our side, we too were impressed and our now fortunate to call them our friends. Thoughtful and courteous, funny and warm, fair and honest, and full of life. We’ve been very lucky these last few days to have the opportunity to get to know them and look forward to their speedy return when they vacation for the first time in their new waterfront homes.

Related Post: Foreign Ownership of Vacation Property

Also: Search Area Listings, Visit our Web Site

Looking for the hot real estate deals in SouthWest Florida? Each week, we scan the inventory and spotlight properties that we think are the best in class for the property type. Properties make the Hot Property list when they reach the right price and are prime candidates to be snatched up by the savvy buyer.

For today’s Hot Property Update, we reviewed lower to middle priced Gulf Access waterfront homes with a great view and quick access to open water. We then factored in neighborhood, condition of the property, and future value. The top picks are ‘best in class, best value” for their respective qualities.

SW 5th Place, Cape Coral FL (View Details)
Why We Like It: Big View, Big House, Big Pool. Great floorplan. One of the most desirable locations in the Cape. Gulf Access, about 25 minutes to open water, one 9’ bridge. The house has great “bones,” good quality construction, well taken care of. Does not need any immediate work. Kitchen is a bit dated, but nice and clean. Quiet cul-de-sac street surrounded by new construction homes (700K+). Great value now + future. Lowest price per sqft on the lakes. Asking price $589,900.  (REF 56965)

SW 50th Terrace, Cape Coral  FL (View Details)
Why We Like It: Wide canal view. Quick access. Priced right “at lot value.” Older home in neighborhood of 1M$ homes (vacant lot next to it is listed @ 599,000; others nearby from $599,000 -$899,000). Huge Lanai and pool area – one of the largest we’ve ever seen. Great seasonal rental potential. Needs some updating in the future, but in overall good condition. No bridges, but there is a lock (at Cape Harbour). Asking price $495,000.  (REF 72516)

Update 10-10-06: Both properties are gone.

In local SouthWest Florida MLS listings, there are two measures of a home’s square footage. The first is the area “under air” (the portion of the home that is air conditioned and heated).

A newer 3 Bedroom, 2 Bath home in the price range of $275,000 to $500,000 typically is 1500 to 2300 square feet under air. Property taxes are based on the under-air square footage (a good thing!).

The second measure is the total living space. This total adds the lanai, pool, patio, and garage. The lanai and pool area are almost always screened (or “caged”) for 24 hour, 365 days a year comfort, keeping out the pesky mosquitoes and no-see-ums that show up at dusk in the summer. An under-truss lanai (pictured here) is a 4 season room that is either used for dining or as an outdoor living room. Here in SouthWest Florida, our living space most definitely includes the lanai and pool/patio area. It’s where we spend the majority of our time.

Total square footage is the better measure for evaluating a property. A large pool and patio area and/or a large lanai adds significantly to the property’s value and marketability.

Consumer sites such as realtor.com pull in the first measurement, the under air square footage, which can be confusing to shoppers comparing living space in a northern home to living space in a Florida home.

Case in point, after browsing homes on the Internet, a couple from Minnesota presumed they’d be looking at small living spaces. Needless to say, they were amazed at how much true living space there is. The home they purchased has 3 bedrooms, 2 full baths, and a 2 car garage. It’s 1800 sqft under air but overall has 3700 sqft total living space. Their patio area has room for an outdoor living room, outdoor kitchen (or four-burner-TV-chef-style-barbecue), outdoor dining for eight, and several chase lounges.

It is not new news that both buyers and sellers need to pay close attention to the Comparable Market Analysis report.

As a buyer, your agent should provide this report to aid the discussion on offer price and terms. As the seller, your agent should provide this report to you to help determine listing price. Again, nothing earth shattering here… most property owners know the role of CMA reports in setting, or getting, the right price.

However, there is sometimes too much reliance on the Asking Price (a.k.a. List Price) on the CMA report. The asking price is just that—what the seller hopes to get for the property. The Asking Price may be the start of the negotiations, with both the buyer and seller expecting to counter-offer each other on price and terms, to arrive at an contract that both parties are satisfied with. Also note the difference between Original List Price (the first price at which the property was offered) and the List Price (the current asking price, after the Original List Price has been either increased or reduced).

With respect to determining a price, whether you are buying or selling, be sure to discuss with your Realtor the “in-progress” or completed transactions on the CMA report: 

• Active Contingent. A contract has been accepted by the seller, but there are buyer contingencies, usually financing.
• Pending. Contingencies have been removed (buyer has performed) and the transaction is expected to close soon.
• Sold: The transaction has closed.

Your agent should put forward an analysis of the Pending and Sold categories, providng factual data that tells you what price buyers are willing to pay for similar properties.

Ask not what similar properties are listed for, but what they are selling for.

Wellll… things sure have changed since one year ago! A year ago, no one wanted to sell, but buyers were flocking to the area and out-bidding each other. Now we have plenty of people selling, and fewer buyers. That’s good news for buyers. There are definitely some good deals out there!

Last year, investors overbought. Now they are dumping inventory on the market. How long the deals will be out there is anybody’s guess. The consensus amongst many realtor/mortgage broker associates is that we are nearing the bottom of the softening and those with “wait and see until next year” attitudes might be kicking themselves this time next year. Time, of course, will tell.

Price decreases are showing up in the MLS (last year at this time, we saw only price increases). This does NOT mean that values are decreasing; it means price appreciation is less than many sellers expected. Consequently, we’re excited about some of the great deals out there right now. If you want to buy in 2006 but at 2005 price ranges, now is the time.

Our MLS is chock-full of listings with uppercase and exclamation points… MAKE OFFER!!! SELLER MOTIVATED!!! So we wonder two things. One, if the seller is motivated, why not put the price where it should be? And two, why aren’t buyers testing the waters and getting aggressive with offers?

This makes for a bit of a schizophrenic sales climate. Sellers REALLY REALLY want to sell. Buyers aren’t confident that they really can MAKE AN OFFER. This apprehension is a hold-over from prior years during which buyers were getting out-bid by other buyers. Today’s buyers don’t believe sellers will accept a number below asking. They do.