Sanctuary Open House Extravaganza!

DearĀ Friends and Neighbors,


I am excited to announce the first event of it's kind "Sanctuary Open House Extravaganza"
Please join me to view some of the Islands' most beautiful offerings on Thursday March 11th from 11 to 3.
Your personal invitation is below! Hope to see you...

Things Are looking up!

HI! Good news is all around us...Here are some of my notes from our business meeting this morning.

Foreclosure watch LeeCounty
1228 last month 2010 Jan
2304 Jan 2009   numbers are decreasing.
Building permits in LeeCounty
34 Jan 2010
 13 Jan 2009
Florida realtor article on home starts says that the first indicator of the market rebounding is the increase building permits. It means prices are coming up to make building a viable option. Yes!
Lee Co. set a record last year for sales. 16,260 single family sales vs. 8272 the year before ! (it doubled)
Real estate pro.org significant increase in people searching over a year ago
David Wright from San cap community bank talked about owner financing. Talk to sellers about the idea of holding a mortgage. The buyer can take out a bank loan to pay off the seller’s loan and costs, and then a seller can hold a mortgage for a qualified buyer, get 6% and possibly more for their home! Dave is a pretty creative guy…

 

Vacation Rental Condo as a Business

Times of change are upon us and there are some things to consider when promoting your vacation property for sale to today’s buyer. Buyers today are really doing their homework, are eager for the best deal out there and want something turnkey with good rental history.
I feel we should consider selling many of the properties here on the Islands as a vacation rental business rather than just any old vacation home.
 First, we need to prove that it's a profitable business. Selling your vacation home as vacation rental business could be very attractive to prospective buyers. I always like to have the last year or two's rental revenue history. Many buyers seek vacation homes that they can rent out for part of the year to defray expenses. Buyers may even pay more for a property with proven rental income. If you don’t have the history, I can look to other comparable units and quote projections. The more information, the better in my opinion! At the end of a long day viewing properties I want prospects to have a clear idea of what will be the best property for their needs and providing them with everything under the sun up front will put the most well presented properties in the front of their minds while they mull over the days viewings at dinner.
Second, having the right realtor representing you in the marketing and sale of your property is paramount. Extensive web exposure, extensive web exposure, extensive web exposure…..I cannot stress this enough. This, coupled with hundreds of other things I do keeps my listings in the foreground locally and globally.
As a seller, if you have an established personal website for your investment property and other portals such as VRBO.com you can transfer your listing to the new owner at a minimal cost…Now you are really ahead of the game!!!
Think of the advantage of saying, "Property with a great rental history and complete website is included." Now you're selling an established business rather than just another property.  Lets get to it and get it SOLD!

What Shape is the Recovery In?

Feel free to give us your thoughts on how you think the economy is shaping up and how it will effect our real estate market!

NEW YORKAug. 14, 2009 – With the launch of an economic recovery all but certain this year – many experts say it’s already begun – the debate among pundits has turned decidedly alphabetical. In other words, what letter will the rebound resemble – U, V or W?

Typically, sharp downturns like the current one yield equally rapid, or V-shaped, upswings. But the worst recession since the Great Depression has been anything but typical, with housing and credit markets devastated. In a
USA
TODAY survey, 63 percent of economists said the recovery will be slow and gradual, or U-shaped.

Yet 37 percent said it will be moderate or fast. And a smattering of experts say the rebound will look like a W, with a precarious economy sliding back into recession before turning around for good.
USA
TODAY presents the case for each scenario:

Consumers aren’t spending
Sharp downturn followed by slow and gradual rebound


Most economists, including Federal Reserve Chairman Ben Bernanke, predict a slow and gradual upturn. To be sure, the telltale recovery signals have been flashing green lately. Factory output and new orders grew last month at the fastest pace in two years. The government’s cash-for-clunkers program has lit up a moribund vehicle market.

And with inventories of stores and manufacturers depleted, factories must soon ratchet up production just to restock.

Comparison Numbers

 

 

January 1st to June 30 (first 6months) Sanibel
unit sales
 
 
 
2008
2009
 
RES
   97
   66
-31.90
average $
 923,120
823,443
-11.60
 
 
 
 
CON
   60
   43
-28.30
average $
 750,112
 751,023
0.12
 
 
 
 
VAC
 9
 5
-44.40
average $
 424,728
 407,000
-4.20

 
Looking at all Sanibel Inventory for the first 6 months vs. the same period, we are down -31.2% in Unit sales
 
Look at average prices for Condos. The average of the higher priced stuff that has sold and cheaper units are averaging the same. Good news for my past condo buyers. 
 
All indicators point to the Fall as a big buyer’s month. Fence sitters are getting news reports of increasing pendings which are making them trigger happy. Overall Optimism has been reported by NAR and other agencies.  Remember a BUYERS Market represents excellent values.

Market Update

Pricing CRS

According to the CRS magazine
“Realtor Frazier from California says when a properly priced house comes onto the market, it excites prospective buyers and has something of a halo effect, as they imagine their idyllic lives in the home. But when a home is priced too high, it has the opposite effect. “They look for every possible flaw, real or imaginary” he says. Buyers are deflated when they like a home but it is overpriced”.
 
In today’s market, price is everything. Despite the overall downturn in the market, homes are still selling, and people are moving. But with high inventory levels in many markets across the country, buyers have a lot to choose from, and sellers need to get their attention. Setting an attractive price goes a long way toward getting those  potential  buyers in the door. 
 
 
Case Studies
Beachview update Eagle Run sold recently and here are some reasons:
·         Was $1,095,000 and was lowered to $994,000
·         75% of the listings in Beachview are over $1 million
·         50% of the sales are lower than one million dollars
 
 
Market watch update
 
Median price info for Sanibel
RESIDENTIAL                    CONDOS
07 $790,000                      $670,000
08 $700,000                      $612,500
Down 13%                         down 9%
 
Median price for South Ft Myers 33907,33908, 33919
RES IDENTIAL                   CONDOS
Down 18.1%                     down 20.7
 
 
From 2001 to 2006 Lee county constructed more homes than there were people to absorb. Currently there is the opposite effect taking place. We are not building enough and inventory levels are dropping. This usually indicated the beginning of a stabilizing market.
 

 

Market Statistics- 2007-2008 Comparisons

 

Sanibel Residential
 
                             2008        2007       % change
Unit sales            148          143            ↑ 3.5%
Volume            952,699    1,024,007   ↓7.5%
 
Sanibel Condominium    
 
Unit sales              95             87             ↑9.2%
Volume           731,648     782,644    ↓7.0%
 
Captiva posted its largest average sales price of all time at $3,465,385!
 
Our market is not like the national, state or local Ft. Myers market… The difference is just that… we are different, no oversupply, low crime, eco-friendly, walk ride and skate and no traffic lights!

 

Citizens Opening Protection Requirements for Residential Property in the Wind Borne Debris Region.

1. What are Citizens’ shutter requirements for residential property located in the WBDR?

 

The table below lists the opening protection classifications and relates them to the eligibility requirements.

 

Hurricane Eligible -everywhere

Rated Glazed- Eligible except for Dade and Broward

Basic- Eligible except for Dade and Broward

Not Rated- Not eligible

Wood Panels- Eligible except for Dade and Broward

None- Not eligible

2. Where do I have to live for this to affect me?

[More]

How to Sell Your House in a Tough Market

Anyone looking for advice on how to sell your house in a tough market might get some inspiration from William Bronchick and Ray Cooper, authors of How To Sell A House Fast In A Slow Real Estate Market(2008: John A. Wiley & Sons).


Here are some of their ideas:

  • Position the house in the right price range. Buyers search by price range. Positioning a property in the middle of the range increases the likelihood people will see it.
  • Have information available. Deals fall apart when the buyer has unanswered questions. Have key information available, including cost of utilities and taxes, neighborhood liens and covenants, and an evaluation of the schools.
  • Put out a good flier. People are much more likely to read the flier than they are to call the number on the "For Sale" sign.
  • Market to the neighbors. Market to people who have just listed their own homes in the same areas. Chances are they like the neighborhood and could be persuaded to stay in the area by the right property.
  • Offer creative financing. For many people these days finding money is the biggest stumbling block.
  • Follow the first-offer rule. In this market holding out for a better offer is a big mistake.

Sanibel-Captiva Real Estate outperforms the market!

 
Average price  San-Cap MLS  YTD 
2007   $ 1,006,317   
2008   $953,917            Down  5.5%    
 
Unit sales         San-Cap MLS  YTD 
2007   325
2008   337               Up 3.5%     
 
Unit Sales     Naples, Bonita and Estero MLS YTD
2007  4109
2008  4778            Up 16%
 
Dow Jones Industrials
2007 October 5   14,066
2008 October 6   9699             Down 45%
 
Summary
Real Estate on a unique barrier island that has so much dedicated green space and no high rises is valuable.  There are some excellent values in our market right now. Inventories are decreasing which usually indicates a bottoming of the market and a transition to a higher buyer demand.  I’ve heard that last month the Naples MLS reported a 107% increase in pending sales for September! The market may be turning ahead of the news reported.  Considering the decrease over the last year in the stock market, scarce island real estate is the best alternative of available options.  Park your money on high demand island Real Estate.

Jay Richter-John R. Wood Island Real Estate, Inc.-Broker

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