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

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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 News Press, March 2008

As the economy hobbles along, developers are eyeing the hiatus in housing development as a window for commercial growth in the Cape.

Plans for mixed use and massive commercial projects dominated discussions Tuesday during Futurescape 2008. The event, sponsored by the Women’s Council of Realtors, attracted hundreds of real estate brokers, developers and investors to the First Baptist Church of Cape Coral to share plans and ponder the future of Cape Coral’s growth.

“It’s an exciting time to be in Cape Coral,” said Carl Schwing, Cape Coral’s assistant city manager. “We’ve got a lot of opportunities. I know what the real estate market is like and I’m excited that we’re seeing some additional activity.”

Helping accommodate commercial growth elsewhere, the city is looking to annex up to a square mile of property in several parcels north of Cape Coral. The city hopes it can zone large swaths of land for commercial development making the parcels an attractive investment for developers.

Recently annexed property in the city includes a 2,500-acre parcel in the north owned by the Zemel Trust. Annette Barbaccia of AMB Planning Consultants is working with Zemel Trust to develop a portion of the property. The parcel, Barbaccia said, holds the potential for 11 million square feet of commercial development and the possibility of environment-friendly industry.

Downtown
Capitalizing on the Cape’s abundance of waterfront property, developers are eyeing property in the southwest Cape for extensive redevelopment. Barbaccia, the president of AMB Planning Consultants, detailed her client Tom Cirrincione’s plans for a $500 million project to reshape downtown.

AMB has finished conceptual plans, Barbaccia said, on the Piazza di Venezia, a mixed-use
development that would feature 1,000 residential units, 91,000 square feet of restaurant space,500,000 square feet of retail, a 2,000-seat theater, two five-star hotels, a convention center and a boat barn.

“It’ll change the face of downtown,” Barbaccia said. The project along Cape Coral Parkway stretches from Coronado to Triton Court and will include a new east to west road parallel to the parkway to handle traffic increases. Another of Barbaccia’s clients, Robbie A. Lee Jr. of Island Development, is working on $300 million worth of downtown development in the Village Square and Venetian Towers. His company recently finished the Entrada project in north Cape Coral.

More condos to come
Even with the slowdown in residential building, developers are still floating plans for condominiums and gated communities. The Cape Grande group is looking to build four developments with a total of 522 residential units. Among the developments is a 14-story high-rise near the Cape Coral Bridge off of Cape Coral Parkway overlooking the Caloosahatchee River known as La Brise.

Tuesday night, consultant Joe Mazurkiewicz spoke of plans for expanding office space near City Hall and constructing gated communities in the north of the Cape. Those properties, azurkiewicz said, could be ready for construction when the city expands utilities. Mazurkiewicz highlighted walkable, sustainable communities with light commercial intermingled with residential.

Pine Island Road

Despite boasting a population of over 170,000, developers have historically “missed the mark” on Cape Coral’s potential for commercial growth, according to Dale Hafele, a partner with the North American Properties development group. Hafele’s company brought a BJ’s wholesale store to Pine Island Road about three years ago, where it stood as an island of commerce in an otherwise undeveloped area.

Speaking Tuesday evening, Hafele credited the store with fueling a flurry of economic development along the Pine Island Road Corridor including a SuperTarget and several restaurants such as Panera Bread, which has the distinction of the highest volume of sales in the national chain’s stores. “Why has our company invested so much in Cape Coral?” Hafele said. “The Cape is a market we still consider to be underserved by national retailers, because of this wonderful climate we live in, because of this City Council’s commitment to smart growth.” Restaurants Chili’s and the Olive Garden also will open in the same Coral Walk plaza as Panera.

North of Pine Island Road on the corner of Diplomat Parkway and Del Prado Boulevard, Garrison development is planning to build the Diplomat Shoppes at Del Prado shopping plaza.The project highlights the difficulty of building commercial property by accumulating smaller residential properties. During a City Council meeting earlier this month, council members made clear their intentions to reject the project if the Garrison group could not secure a purchase agreement with a homeowner whose house would have been surrounded by the development. The homeowner and the developer signed a purchase agreement that night.

A short sale means the owner owes more than the house can sell for in the current market or it is nearing foreclosure, and so the lender is agreeing to sell “short” of what is owed… these transactions take longer because of bank involvement… sometimes up to 6 months from the time the offer is made.

While the seller will agree to an offer, it’s really the lender holding the cards and determining if price and terms are acceptable.

So even if the short sale property is listed at, say, $250K that does not mean that’s what the bank will take for the home. Often, they counter at a higher price.

Also, while the buyer is waiting to hear from the lender, other properties, non-short-sale, are selling and buyers may regret missing an opportunity while waiting.

Basically short sales are a fit for pure investors or those with the patience of a saint.

Under a plan approved by the Florida Taxation and Budget Reform Commission Monday, voters will have a chance in November to approve an across-the-board property tax cut averaging 25 percent. The measure also includes a provision giving businesses, second homes and other properties that do not qualify for a homestead exemption a 5 percent cap on annual tax increases. The proposal does not include a mandatory services tax.

Read the full Story on the News-Press web site.

An enclave for the super-rich is getting under way in Cape Coral.

Two Lee County developers are rolling out 42 custom estate homes with prices ranging from $5 million to $20 million. On top of that, a $500,000 nonrefundable deposit is required to purchase one of the homes.

Welcome to Tarpon Estates, the new community under construction in the Tarpon Point Marina development in Cape Coral. Each house will have deepwater access to the Caloosahatchee and be a few minutes from the Gulf of Mexico.

Backyard docks suitable for 100-foot-long yachts and developers bent on harmonious architecture and top-quality construction in an exclusive, deed-restricted setting are also part of the package.

Tarpon Estates’ developers believe the promise offered by this gated community within a gated community will ensure the development’s success, despite the slumping residential market.
The upper end of the waterfront market is stronger than ever, according to Harry Albright Jr. of Fort Myers, who is developing Tarpon Estates along with Kim Wallace of Cape Coral.

“So there is no negative market condition in the upper-end waterfront communities,” he said. “So it’s a matter of going slowly and getting the right homeowners. People that want to have this lifestyle aren’t concerned about glitches in sub-prime markets.”

Albright, Wallace and Bob Hensley, chief executive officer of Tarpon Point’s developer, Grosse Pointe Development, said Tarpon Estates possesses a trait that is highly valued by boating enthusiasts. They said the roughly 24-acre tract is the last stretch of direct-access, deep-water acreage between Marco Island and Sarasota that has yet to be developed.
Each home there will have a different design and be built before hitting the market, with sizes ranging from 4,200 square feet to 20,000 square feet of living area.
Just one house has been built so far, while construction has begun on two others. The finished house, the entry-level three-bedroom, 31/2-bathroom 4,224-square-foot La Torre model, is priced at $4.95 million, furnished.

Wallace said the next step up will be a home with just less than 6,000 square feet of living area, for about $7.4 million, and a roughly 6,500-square-foot home that will have have a list price of roughly $7.8 million.

The builder is Naples-based BCB homes, which specializes in waterfront construction from Marco Island to Sarasota, including in Naples’ ultra-upscale Port Royal neighborhood.

He said the design work is under way on the $20 million home, which will feature a grand ballroom, docking for a yacht of 150 feet or more, 20,000 square feet under air, and captain’s quarters and butler’s quarter.

Albright said plans call for a slow and steady approach to building the homes and placing them on the market, to maximize demand. He said he envisions the project being completed within five or six years.

e said the marketing is being shared by Wallace, BCB and Marilyn Kistler of Prudential WCI Realty in Fort Myers and extends to Canada and Europe.

Hensley said he envisions the typical buyer being someone purchasing their second or third home. “These are affluent people who have a lot of disposable income and they tend to chase the weather,” he said.

Reported by the News-Press, March 8 2008

Pending sales in the region jumped dramatically in the last month, according to the Florida Gulfcoast Multiple Listing System Common Database used by Realtors to track sales in Lee County and small parts of Charlotte, Collier and Hendry counties.

In January, 159 single-family homes in those counties had sales pending. In February, the number climbed to 753.

In addition, the database shows 436 sales, 191 in Cape Coral, were closed in the area in February, compared to 330 sales, 144 in Cape Coral, closed in January.

Read the full Article.

From the News-Press, Originally posted on February 16, 2008

Economy gripes are common these days.

But in the last three months of 2007, there were 83 new businesses that moved to Cape Coral. That doesn’t even account for the home-based businesses, which make up 65 percent of the total operations here.

Still, the city wants more.

Mike Jackson, director of Economic Development, is kicking off a new, national ad campaign to get the word out that businesses can flourish here — and workers can have fun doing it.

“Work. Play. Repeat. Now do both in the same place.”

That’s the slogan. It’s designed to promote the city’s tenant-ready commercial properties and market niches, as well as the waterfront lifestyle. It’s set to be unleashed later this year at business conventions, in trade magazines and in a television commercial airing on CNBC and MSNBC.
“When people think of Florida, they think of retirement and old people,” Jackson said.

“So when I go to these conventions in Chicago or other big cities, people are always surprised to hear that we’re the fourth-fastest-growing city in the country, and that our median age is 43. We want to try to change those perceptions.”

Specifically, the target is the smaller businesses that can afford to quickly pick up and move, and for whom quality of life is a big factor in where they do business.

Elmer Tabor, owner of Wonderland Realty, said the draw for many new business owners is the sunshine. But the Cape is also attractive because the market hasn’t fallen completely flat, he said.

“I always like to ask people why they moved here, and it’s almost always, ‘I was sick of shoveling snow,’” Tabor said. “And regardless of what the economy is, we still have a greater place to live than Ohio or Michigan or Minnesota. Southwest Florida still provides jobs, still provides growth. We’re in tough economic times, but we’re not near as bad as some places.”

Northern areas are dealing with redevelopment, and what is commonly referred to as “The Brain Drain,” in which younger workers move out after being educated in search of better jobs. In the Cape, the challenge is more first-time, smart development rather than redevelopment. Jackson said his office is constantly trying to find solutions to the fact that 90 percent of the city’s developable land is pre-platted residential. When the city was first built, it was broken up into small, residential-sized plots. For years, anyone could build a house almost anywhere they chose.

“The result is not only that utilities and services have to catch up,” Jackson said. “But also we are running into a commercial land use shortage.”

In a future land use analysis report, Jackson indicates that if the city does nothing, it will face a 2,526-acre shortage of commercial land by the time the population is built-out, roughly in about 60 years. Annexation of the Zemel property would reduce that shortage to 1,754 acres, but it won’t eliminate it. To combat this, Jackson is proposing to convert residential land use to commercial/industrial, increase annexations for commercial/industrial development, increase commercial/industrial densities, increase the size of existing commercial/industrial zones and acquire and develop parcels for commercial/industrial uses.

But some might wonder why the city would push for more commercial land when roughly 430,000 square feet of office space is currently vacant. But Jackson sees that vacancy not as an omen of a stagnant economy, but rather a draw for new business owners.

“New companies generally don’t want to move in to a place where they’re going to have to deal with the hassle of building their new office space,” he said. “They want to go somewhere it’s already waiting for them.”

Another tool his office is using is the Cape Coral Prospector Web site, at bizcapecoralgis.com, which was launched in December. With just a few clicks, interested parties can research brokers, building vacancies, see satellite and interior pictures, check out the structure’s proximity to other businesses as well as bus stops and traffic lights.

“We want to make it as easy as possible for people,” Jackson said. “It’s like free market research.”

While it will be difficult to measure the city’s direct success with the advertising campaigns and land use restructuring, Tabor said educating people about what Cape Coral is — and isn’t — can only help.

“In the early days in development in Cape Coral, it was the young, gutsy pioneers who came down to establish businesses,” he said. “When they started seeing they could enjoy it, that’s when the retirees started moving in. They brought their money, and then there was a need for younger employment. So we hope that’s a trend that continues, because it really is an overall great place to live.”

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.

“Up until this past year or two, the insurance companies would purchase reinsurance themselves and then pass that cost on to the consumers. We have now stepped into the place of those reinsurance companies and the savings is passed on to consumers. The state of Florida has assumed a huge amount of potential liability in case of a hurricane or other disaster.”

Aubuchon said that storm seasons several years ago made the reform necessary.

“After the very active 2004 year, the cost of reinsurance doubled or even greater.”

Aubuchon compared private reinsurance policies to one year term life insurance

“If you survive the year, then whatever you paid for that year is lost. If there was another active (hurricane) year, reinsurance rates would continue to rise and rate payers would pay higher rates.”

But while the insurance companies can now charge less because they will not have to pay for private reinsurance coverage, Florida residents could still face serious issues if a hurricane with the intensity of an Andrew or Katrina batters the state.

“There are some things that could become real problems,” Saunders said. “The first is that if there is a major storm we are on the hook for it.”

The senator further explained that the state does not have funds stored up to cover the potential multi-billion dollar losses that it could face with a serious hurricane making landfall and that the revenue would have to come from the taxpayers in other ways.

“If there is a major storm and we have a major loss, we will sell bonds and the debt service will be made up through assessments on all other types of insurance policies,” he said.

That means auto insurance, health insurance, and even life insurance polices would be subjected to assessments to make up the shortfall. Only medical malpractice insurance would be exempt from disaster debt assessments.

“It would be spread out and hopefully would not be too much of a burden,” said Saunders.

But there will be some money for a disaster fund as the state of Florida will set aside the money it takes in during calm seasons like it has experienced in the last two years instead of taking it for profit like a private firm would do.

“The benefit is if the state of Florida provides the reinsurance, we keep all the premiums paid to protect us against active years. Regardless of whether the state was in the reinsurance business or not, if we have an active season the rates are going to go up. The private companies would raise the rates just like the state of Florida would,” Aubuchon said.

“In a quiet year, there is no savings to the rate payers if the reinsurance is issued by the private sector. There is truly an upside to the state doing it, and the downside exists whether or not the state does it.”

The representative also encouraged residents of southwest Florida to get a free home inspection to test their houses’ strength against hurricanes.

Homeowners can go to www.mysafefloridahome.com to get information on how to order such a test.

High-skill, high-salary jobs are goals of city

News-Press
September 28, 2007

Don’t let the economic downturn fool you: New businesses are moving into Cape Coral at an average of about 30 each month.

That’s according to city economic development director Mike Jackson, who said more than 65 percent of the now 8,584 businesses in the city are home-based operations. The three highest categories of industry in the Cape are administration and support, then construction, then professional.

The goal through the next year, he said, is going to be continuing that surge and simultaneously attracting more of the high-skill, high-salary kind of commercialism that means long-term economic strength.

“We’re looking for relatively smart workers and relatively advanced technology sectors,” Jackson said. “We have companies like that here today, and we’re trying to figure out the best way to help them grow and attract more like them.”

He wouldn’t be specific on exact corporations the city wants to hook, but he said his office will be transforming in the next few years into somewhat of a sales operation.

“It is our goal to be able to focus exclusively on identifying the gazelles,” he said. “Those are the fast-growing companies with high wages. We want to look for those in Cape Coral, and we want to identify and target those on the outside. That means literally calling them up, getting them to take a tour of the city, meeting our developers and showing them what a high quality of life we have here that is attractive to workers.

“We’ve been doing extensive advertising in the central U.S. edition of the Wall Street Journal and Crain’s business publications. These are advertising campaigns that allow us to increase people’s awareness of Cape Coral as a large city in Southwest Florida that is not just a retirement community.”

And the city is hoping the results of recent studies will help drive business the city’s way. Two studies — a workforce study and a target industry study — are set to be released in the next month. They will identify, Jackson said, what sort of business clusters would be a good fit for the kind of labor force and businesses already in the city.

About 48 percent of the city’s population works full time, and the median age has dropped since the last census from 45.2 to 43. From 2004 to 2006, the median household income rose from $46,933 to $54,026.

Mayor Eric Feichthaler said he wants to develop the city as a cultural center before going after the big businesses.

“High technology businesses are looking for more of an educational base,” Feichthaler said. “It means we need to provide them with what other cities have, and we simply do not have those cultural amenities right now. We have the land, but we need to mature as a city before we start seeing those results.”

But he does want to focus more on attracting office professional and light manufacturing-type operations, while moving away from the construction and real estate industries. Landing one large corporation, he said, could spur others to follow. He doubted whether the studies were going to be helpful.

“What I said to the economic director is I expect to see substantial and immediate results,” Feichthaler said. “For the money we’re putting into surveys and studies, I’ve not seen the benefits citywide. If they lead us to attracting those businesses, I’ll be happy about that, but I’m not sure it will bring the benefits of that promise.”

The studies are costing the city about $205,000. Jackson said they won’t be a “magic bullet,” but, at worst, they will be a “compass.”

One thing he thinks the studies will show is that building office space before big businesses arrive would be a smart move.

“I don’t like to say, ‘If you build it, they will come,’ ” he said. “But if you don’t build it, they won’t come.”

Large corporations don’t rush to relocate when office space isn’t already available, he said. Site selection can take years, and most want to be able to move in right away, either buying or leasing buildings that already exist.

In the second quarter of 2007, real estate firm Cushman & Wakeman determined Cape Coral had 263,684 square feet of vacant office space, 100,840 square feet of industrial space and 72,110 square feet of vacant medical space. Office space vacancy really did not exist in the city less than two years ago.

Anita Simmons, who owns the Cape Dog Bakery downtown, said that while she doesn’t think the city needs more “big box stores,” bringing in more professionals is probably a good thing.

“There are some businesses suffering, and it’s because we’ve relied so heavily on real estate,” Simmons said. “We need things that will draw big companies to this area — clean up the landscape and have more unique shops and restaurants that will make this a destination.”

Related Posts: INC Magazine Rates Cape Coral-Fort Myers #1

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.

One of the reasons we chose Cape Coral was our excitement about the long-term vision of the Cape Coral Redevelopment Agency (CRA) for the downtown area of the Cape. While we are frustrated that the CRA’s progress has been slower than anyone would like, we are glad to see them dogging it along and making some progress.

The mission statement for the agency is that it “will facilitate the emergence of a vibrant urban village where people of all ages will live, work, shop and be entertained.” The master plan adopted by the CRA and City Council designed the Downtown as a compact urban village.

The primary goal is to create a high-intensity pedestrian friendly urban area with open spaces and a system of both pedestrian and traffic circulation so that visitors, employees, and residents alike can easily find their way, park, and enjoy their walk to their destinations. And the CRA aims, through development incentives, to assist in the development of plazas and covered pedestrians walkways that improve access to waterways and the riverfront.

Visit the Cape Coral CRA website.

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.

The latest version of property tax reform was passed by voters January 29, 2008.

How it works- Nov 1 2007

TALLAHASSEE, Fla. – Nov. 1, 2007 – The Florida Legislature, caught in a game of “chicken,” approved a measure that will appear before voters on the Jan. 29, 2008, ballot. With time working against them, lawmakers agreed on a measure that scaled back earlier initiatives, and even current reforms pushed by the House.

What the current amendment includes:

Homestead exemption

The homestead exemption increases. The current $25,000 homestead exemption remains; but a second $25,000 exemption is added for home values between $50,000 and $75,000. The second $25,000 exemption does not apply to school taxes, however, which translates into a lower-than-expected savings of about $240 per homesteaded owner. The portion of a home valued between $25,000 and $50,000 will still be taxed at all levels. FAR fought to include this taxable portion in order to maintain fairness for smaller cities and counties with lower median home values.

Portability – Moving up

Property tax savings portability (money saved over time on property taxes because of yearly increase limits through Florida’s Save Our Homes amendment) applies to homesteaders (homeowners with a homestead exemption) moving anywhere within Florida. Up to $500,000 of accumulated savings, applied to taxable value, may be transferred when one home is sold and another is purchased, with the transfer applying to all taxes, including the school portion. Homeowners have two years after they sell a home to buy a new one and transfer the savings.

If buying a more expensive home, a homesteader calculates savings by subtracting the assessed value (taxable value) from the just value (market value). The amount (savings over time) is then subtracted from the just value on the new home purchased. In most cases, the $50,000 homestead exemption will also be subtracted.

Example: Susie currently owns a home and has lived there for a long time. The house’s just value is $500,000, but because of Save Our Homes, the assessed value is only $200,000. Susie buys a new house for $700,000. The following year, she’ll pay taxes on only $400,000, however, because she’s “porting” $300,000 in value to her new home. After factoring in the new homestead exemption of $50,000, her total assessed value would be $350,000.

If buying a less-expensive home, the calculation changes and is based on the percentage of tax savings rather than a dollar amount. If the assessed value on the original home was 50 percent of the just value, for example, the homesteader would transfer that percentage to the new home, or have a new assessed value that is 50 percent of the new home’s just value. The percentage system was created to keep homesteaders from effectively eliminating their property taxes altogether by moving from a high-cost area of Florida to a low-cost area – a change that could severely hurt smaller rural economies.

Example: Susie currently owns a home and has lived there for a long time. The house’s just value is $500,000, but because of Save Our Homes, the assessed value is only $200,000. Susie buys a new town home for $300,000. She’ll pay taxes only on $120,000 because when buying down in value, she’ll keep the same ratio (40 percent) of assessed value to just value that she enjoyed in her old home. After factoring in the new homestead exemption of $50,000, her total assessed value would be $70,000.

Also, portability is retroactive to Jan. 1, 2007 – so everyone who bought this year and moved from an established homestead will be able to “port” their savings for next year. Since yearly tax values are based on ownership as of Jan. 1 each year, portability would not affect this year’s tax bills, which most homeowners have already received; but the savings will be applicable to next year’s tax bill.

Non-homesteaded property tax cap

A win for FAR and an important piece of the amendment is a 10 percent annual assessment cap on non-homestead property. Similar to Save Our Homes, this cap limits the assessed increases of commercial, rental and second home property taxes to a maximum amount of 10 percent per year starting in 2009, protecting against high spikes in taxes from year-to-year.

While property values will not rise 10 percent every year, FAR believes the cap offers some relief and protection to properties in high-value markets and waterfronts from unpredictable tax increases. The Constitution mandates a tax reassessment to just value upon transfer for non-homestead residential properties of nine units or less, but allows the Florida Legislature to determine how reassessment will occur for commercial and higher-unit residential properties. However, implementing legislation passed during the Special Session provides for reassessment of these properties upon a change in ownership or use.

Tangible personal property exemption

Under the amendment, the Tangible Personal Property (TPP) exemption for businesses is $25,000. The Legislature estimates that this tax – paid to local governments on items such as shelving, desks, computers, and other office equipment – will exempt about 1 million of Florida’s 1.2 million businesses that currently pay it. The amendment also drops the requirement to file for the TPP tax.

Work not done

While the proposed amendment will save property owners as much as $12 billion (depending on the portability amount used), FAR will work for greater relief measures. The association also has serious concerns about a challenge to the constitutionality of portability.

Earlier versions of property tax reform included provisions to help first-time homebuyers, a move missing in the current version. With that protection gone, FAR considers it possible that it will be challenged under the U.S. Constitution along with the entire Save Our Homes property tax system. If that happens, it could bring everyone back to the table yet again.

FLORIDA ASSOCIATION OF REALTORS®

Click the “more” tag to read about earlier versions that failed.

Older Versions 

The Florida Legislature passed a historic property tax relief and reform package yesterday that will cut property taxes for property owners in Florida by almost $32 billion dollars statewide over the next five years.

From www.100ideas.org:

Last week, the Legislature passed a historic property tax relief and reform package that will cut property taxes for property owners in Florida by almost $32 billion dollars statewide over the next five years. We have a simple message for Florida’s property owners: help is on the way.  The $32 billion dollars in relief will make a real difference in the lives of Floridians - this isn’t just a first step forward, it is the first giant leap forward - still, I believe more can be done. There is more waste that can be cut from government, government can provide greater value to the taxpayers, there are more taxpayer protections that must be put in place, and there are greater tax savings that this Legislature can provide to Floridians.   

The centerpiece of the plan is the constitutional amendment that Florida voters will vote on January 29, 2008. House Joint Resolution 3B will provide the greatest savings for Florida’s homeowners by creating a “Super Homestead” exemption which will provide an average 44% reduction on most home-owners tax bills.

The constitutional amendment eliminates inequities in our current property tax system, provides Tangible Personal Property (TPP) tax relief to Florida’s businesses and eliminates 77%  - more than $1 million - of Florida’s small businesses from the TPP tax rolls, helps businesses by pumping more money into our economy, and helps non-homestead owners by lowering the barriers to homeownership, and lets property owners choose how their homes will be taxed in the future.

The property tax relief and reform package approved yesterday also includes a statutory tax relief bill, House Bill 1B, that will immediately cut taxes and cap future tax increases for all property owners; limit local governments’ ability to unnecessarily raise taxes in the future; and provide immediate savings to homeowners, second homeowners, and commercial property owners. The only limits to our future success as a state are the unfair limits government applies to our people through unnecessary taxation - it will be the charge of the House of Representatives, as long as I preside over it, to destroy those barriers to prosperity. Sincerely, Marco Rubio Speaker, Florida House of Representatives The bills approved yesterday:

HJR 3B by Representative Cannon “Property Tax: Constitutional Relief & Reform”

• Offers $16 billion of tax relief over five years.

The savings by property type in 2008 are:

• Average Homestead switching from Save Our Homes: 44% ($1,306)
• Average Non-homestead Residential: 8% ($245)
• Average Commercial/Industrial: 8% ($1,240)
• Average Tangible Personal Property savings: 17% ($262)

• Allows homeowners to choose between Save Our Homes or the new plan.
• No one will lose their current Save Our Homes protections unless they choose to.
• Homeowners will be allowed to choose between their current Save Our Homes protections or the new, “Super Homestead” and expanded taxpayer protections under the constitutional amendment.
• This creates a form of portability for homeowners who would otherwise lose significant tax savings when they move.
• Rather than starting over with only a $25,000 homestead exemption and zero Save Our Homes protections, the homeowner would immediately have a homestead exemption up to $195,000 as soon as they move in.

• Creates a new “Super Homestead” exemption to transform the inequitable Florida property tax system.
• The new exemption covers 75% of the first $200,000 of value and 15% of the next $300,000.
• Thus, the maximum super exemption is $195,000.
•  All homesteads will receive at least a $50,000 exemption.
• Qualifying low-income seniors will receive at least a $100,000 exemption.
• The upper $500,000 threshold is indexed to grow with changes in Florida personal income, which generally increases 4% per year.

• Authorizes a new $25,000 Tangible Personal Property (TPP) exemption for businesses.
• This creates immediate savings of hundreds of dollars for TPP-paying business owners.
• It also eliminates the administrative burden of filing a tax return for $1 million of Florida’s 1.3 million businesses that pay tangible personal.

• Authorizes targeted relief for affordable housing and working waterfront properties. Implements tax reform and relief for 2008 tax bills, provided the Legislature votes for a special election in January 2008 (HB 5B).

HB 1B by Representative Attkisson “Property Tax: Immediate Statutory Relief”

• Creates meaningful and immediate tax relief for all properties in Florida this year.
• Homestead property owners save an average of 7% ($174).
• Non-homestead residential property owners save an average of 7% ($199).
• Commercial/industrial property owners save an average of 6% ($941).
• Tangible personal property taxpayers save an average of 6% ($92).

• Requires all local governments except school districts to cut taxes this year.
• First, cities, counties, and independent special districts must reduce taxes for the 2007-2008 Fiscal Year by adopting the 2006-2007 tax levy, adjusted for new construction (i.e., adopt the rolled-back rate).
• Next, cities and counties must further reduce taxes by a factor based on whether they have recently levied property taxes responsibly or excessively, compared to a statewide average. The reduction factor will be 3%, 5%, 7%, or 9%.
• All independent special districts are required to implement the 3% reduction factor.

• Requires all local governments except school districts to cap annual property tax revenue growth.
• Property tax revenue growth will only be allowed to increase in proportion to population growth (i.e., new construction) and growth of Florida personal income (which averages 4% annually).
• A revenue cap creates unprecedented protections for all Florida properties - especially commercial properties and non-homestead residential properties, which currently have no specific protection.

• Protects taxpayers while allowing local flexibility by requiring a rigorous procedure to override the required revenue cap.
• Depending on the extent to which the local authority wants to exceed the revenue cap, varying supermajority votes are required.
• A slight increase requires a 2/3 vote, while a larger increase will require either a unanimous vote or approval by local voters.

• Implements provisions authorized in the constitutional reform plan (HJR 3B).
• The implemented provisions are:
• The new “super” homestead exemption.
• The new homestead exemption for low-income seniors.
• The grandfathering provisions that allow certain homeowners to maintain Save Our Homes benefits.
• Homeowners will be allowed to choose between their current Save Our Homes protections or the new, “Super Homestead” and expanded taxpayer protections under the constitutional amendment.
• The new tax protections for affordable housing.

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