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Tag: Anna Maria Island real estate

Castles in the Sand

Move over and make room, there’s more coming

Written by Louise Bolger on . Posted in Business, Castles in the Sand.

As if the COVID-19 pandemic and political unrest last year and, of course, going into this year, aren’t enough, the Census Bureau started reporting population counts and Florida is one of the states at the top of the heap.

Florida’s population has been growing for the last 10 years, making us the third-most-populous state in the country after California and Texas. Coming from New York, I’m always surprised to hear from friends and relatives that they had no clue Florida’s population surpassed New York State’s. This occurred back in 2014 with a slight margin that has grown every year since then.

According to the U.S. Census Bureau, Texas, Florida, California, North Carolina and Arizona were the states with the biggest population growth from 2010 to 2020. Florida’s gain during that period is just under 3 million residents. The states with the biggest declines during the past 10 years are Vermont, Connecticut, New York, West Virginia and Illinois.

These numbers, however, do not reflect the mostly coastal states and Illinois that have lost population from July 2019 to July 2020. Much of this decline may be contributed to the pandemic but chances are the numbers will decline even more when the balance of 2020 is counted, when people started relocating. In addition, Texas (373,965), Florida (241,256) and Arizona (129,556) are the top three states in the country that have gained population this year.

It’s no surprise to anyone who is even remotely interested in the real estate market that people are leaving high-taxed states and embracing Florida’s low-tax and friendly business environment. This year the number of people relocating to Florida from other states has exploded and now many companies are looking to Florida and Texas to relocate their businesses.

After almost a year of running businesses remotely, corporations are starting to understand they don’t need the expense and inconvenience of a bricks-and-mortar building to operate. They can offer their employees alternatives increasing both their bottom line and that of the company. Miami, in particular, is attracting major financial investment companies, a few of which have already relocated and others considering the move.

As previously stated, COVID-19 is certainly playing a big part in the movement of populations. But a lot of this started after the 2017 tax reform, which included a cap on state and local tax deductibility on federal income taxes. States with high personal income tax and exorbitant property taxes that could no longer be fully deducted had residents sharpening their pencils at tax time. Many upper-income families decided it just wasn’t worth the taxes they paid to stay in certain states and started looking elsewhere.

With a new administration in Washington, it’s possible that the tax reforms of 2017 could be reversed. This could have somewhat of an effect on people’s decisions to move, however, paying $30,000 a year in property tax is not the same as being able to take a tax deduction on that amount. So, the real estate community will wait and see if a different national tax environment changes the movement of populations to the sunbelt, which started well before the tax reforms of 2017.

Florida frequently is the subject of jokes from more sophisticated regions of the country. Dave Barry wrote a whole book about it. But based on the 10-year population growth, no one really cares. I-10 and I-95 are jam-packed with moving trucks headed south and properties are selling in one day.

Make room Floridians – we ain’t seen nothing yet. Stay safe.

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Waterline resort units on sale now

Waterline resort units on sale now

Written by SUN contributor on . Posted in Business, Real estate | Development.

HOLMES BEACH – If you’ve ever dreamed of owning a piece of the Waterline Marina Resort and Beach Club, now is your chance.

The 37 two-bedroom, fully furnished units went on the market at 10:08 a.m. on Aug. 8. Pricing for the units starts in the low $500,000s. Interested buyers can contact the sales office at 727-379-4656, email waterline@cbrealty.com, go to the realty website or visit the onsite sales office at 5325 Marina Drive in Holmes Beach. The sales of the units are a collaboration between hotel developer Mainsail Lodging & Development and Georgia Salaverri of Coldwell Banker Residential Real Estate.

Each of the units, or villas, features two bedrooms, a gourmet kitchen with full-size appliances, living area and balcony. All units are provided to the owners fully furnished. With Waterline remaining a full-service resort, onsite amenities include a meeting room, fitness room, pool, marina access and a full-service restaurant, Eliza Ann’s. Due to COVID-19 precautions, Eliza Ann’s and the hotel’s bar are currently closed.

Owners of the units will be able to stay in the units whenever they’re in town and also put them in a program to be rented as hotel rooms when vacant. All current reservations at the hotel will be honored despite the unit sales. Guests will still be able to make reservations at the hotel through the resort’s website.

The Waterline Marina Resort and Beach Club was developed by Mainsail and opened in December 2017 as the first full-service hotel on Anna Maria Island, located in the downtown commercial district within walking distance to salons, restaurants, shops, art galleries and more. It is part of the Marriott Autograph Collection of boutique hotels.

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Castles in the Sand

Florida’s in the tax driver’s seat

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Real estate | Development.

It’s almost tax time again so why not talk again about Florida’s advantageous tax position and the influx of new residents. I like to tie in our growing population with real estate sales statistics since it’s my opinion there’s a direct correlation between the two. I’ll also report the January sales in this column.

But first, it’s been two years since the new tax law was signed and we’re just starting to see the effects. Local economies and housing markets are motivating residents of high tax states to relocate to more tax-friendly states like Florida with no state income tax. Even though the tax overhaul resulted in many people experiencing lower taxes, homeowners in high tax states are being seriously hurt and when many of these high-end individuals move, it has a ripple effect on the economies of that state.

If you remember, part of the new law capped how much homeowners can subtract from their federal taxes for the payment of local property and income taxes. The cap is set at $10,000 which, in states like New York, New Jersey and Illinois to name a few, is far below what most homeowners pay in property tax and state tax combined.

The average property tax in the United States in 2018 was about $3,500 according to a national data real estate firm. However, this is far below what much of the northeastern states pay in property tax. In Westchester County in New York State, the average property tax was more than $17,000, the highest in the country. In addition, the law also lowered the size of mortgages for which new buyers can deduct the interest to $750,000 from $1 million, just adding to the high tax and high property value states’ misery.

Not everyone is moving because of taxes exclusively, some were considering a move already and many were near retirement and just needed a little push. Whatever the reason, Florida is one of the beneficiaries of the movement with increased sales and rising property values.

These are the January sales statistics for Manatee County from the Realtor Association of Sarasota and Manatee: Single-family homes closed 22.4% more homes in January compared to last January. The median sale price was $329,500, an increase of 6.6%, and the average sale price was $420,775, an increase of 8.7%. Condos closed 47.7% more properties this January compared to last year. The median sale price was $210,000, up 7.7%, and the average sale price was $236,687, down 1.8%.

An ongoing problem continues to be a lack of inventory, with 3.4 month’s supply for single-family properties and 4.7 month’s supply for condos. These numbers are either down double digits from last year or even. As the Realtor Association of Sarasota and Manatee headline reads in its press release “Home Sales Out-Pace Supply.” Not a great place to be.

For those who want to change your address to one in Florida, make sure you establish a legitimate residency. States are known to conduct residency audits to verify you’re really leaving their state. This happens a lot when people own two homes in different states and want to move their residency. Florida wants you to get a driver’s license, obtain Florida license plates and auto insurance, file a declaration of domicile, apply for Florida homestead exemption, register to vote and open a bank account. Floridians should get ready for this influx to continue.

As with most changes, there’s always a good and a bad aspect and we’re sure to experience both.

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Jason Sato tops county real estate rankings again

Jason Sato tops county real estate rankings again

Written by Joe Hendricks on . Posted in Business, Real estate | Development.

ANNA MARIA – For the fifth consecutive year, Sato Real Estate’s Jason Sato was the top real estate agent in Manatee County in 2019 in combined total sales and listing volume.

Duncan Real Estate owner and broker Darcie Duncan was again the Island’s second-highest seller and she ranked fourth in total volume countywide. AMI Beaches Real Estate agent Gregg Bayer ranked ninth.

The rankings are according to the 2019 Agent Market Share Report for Manatee County.

Sato made 30 sales and had 42 listings for a total volume of $81.5 million. Duncan made 23 sales and had 38 listings for a total volume of $40 million. Bayer made 17 sales and had 18 listings for a total volume of $35 million.

AMI Beaches Real Estate agent Gregg Bayer did more than $35 million in sales and listings in 2019. – Submitted | AMI Beaches Real Estate

Two agents in the top 20 made more than 50 sales and two others had all listings and no sales.

Sato’s streak

“It’s been five years in a row. It’s a lot of hard work and a lot of time put into it,” Sato said. “I grew up on the Island, I live on the Island and people see that I’m active in the community. I don’t stretch myself thin. I focus all my attention on Anna Maria Island and I want to thank my loyal customers.”

Sato said his sales assistant, Grace Wenzel, and office manager, Monica Reid, contribute significantly to his success.

“They’re very helpful setting appointments and getting the paperwork organized. I’ve got a good team behind me. My customers love Grace and she helps me stay organized.”

Sato was asked how 2019 compared to 2018.

“I was up by about $7 million, but for the most part, it was about the same. Hopefully, we can keep it rolling,” he said.

“If you’re doing $30-35 million a year, you’re doing really well,” he said of his peers.

When asked about market trends, Sato said, “People like the newer stuff. Builders are building nicer spec homes and people seem to like those. The market seems pretty solid. Inventory’s good and interest rates are low. A lot of people are buying second homes and more people are buying for themselves rather than for renting. It’s about half and half. It used to lean way more toward the rental side. People still love the Island. People want to be a part of the Island and I think that’s our biggest selling feature. People love that ‘old Florida island’ feel that we still have.”

Proud mom

Sato co-owns Sato Real Estate with his mom and fellow Realtor, Barbara Sato.

“Five years in a row. Nobody’s done that before,” Barbara Sato said. “I’m super proud of him and I believe he gets there by being honest and hardworking. He was raised here, he lives here, he loves the Island and he knows the Island like the back of his hand. The whole office is so proud of him. He’s very deserving.”

Duncan delivers

When asked about her annual appearance near the top of the rankings, Duncan said, “I attribute it to hard work, good client relationships and being in this business for 30 years. I get up every day, work hard and do the best I can to bring my customers the best service I possibly can. And I love what I do.”

Darcie Duncan was once again second on the Island in sales and total volume. – Submitted | Duncan Real Estate

Regarding market trends, Duncan said, “Prices have stabilized and there’s a lot of interest. I see the market being strong this year and you have never seen interest rates as low as what you’re seeing right now. Out here, we’re seeing rates in the low 3% range. You get a lot of house for your money right now with interest rates so low.”

“A lot of people want to buy here and it’s not as rental driven as it was in the year prior. People are looking to retire here. The inventory levels are stable and there’s a lot of different price points, so there’s something for everyone,” Duncan said, noting she has a nice mixture of on-Island and off-Island clients.

When asked about the Island’s older, traditional, ground-level homes, Duncan said, “We’re seeing more people buy them for permanent residences.”

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Castles in the Sand

What does a mortgage broker do?

Written by Louise Bolger on . Posted in Business, Castles in the Sand.

I’ve talked many times in this space about getting a mortgage for a home and how it is one of the most stressful aspects of purchasing. Many people don’t have the time to contact numerous lenders and comb through the details when shopping around and choose instead to go to a mortgage broker for help. But what do they really do and how much does it cost?

Mortgage brokers are licensed in the state of Florida and most states as well. They are financial professionals who act as the bridge between borrowers and lenders. They originate loans and help you connect with a variety of lenders who best fit your financial situation. Working directly with a bank will not give borrowers any flexibility in rates or loan requirements, however, mortgage brokers can offer buyers products of many banks and many more options. This is particularly important for buyers who may not have perfect credit scores and have small down payments.

In addition, mortgage brokers coordinate and manage paperwork and typically close a home loan faster than a traditional bank. They work in cooperation with real estate agents, underwriters, lenders, title companies and attorneys. They are part of the closing team and are trained to anticipate glitches and troubleshoot problems standing in the way of a closing.

There are disadvantages to using a mortgage broker. Since they are motivated to close as many properties as possible, keeping up with the hands-on service can be a challenge for them. It’s critical that you choose a broker who comes with a good recommendation from a friend, family member or real estate professional who has had recent transactions with the broker. Also, you must feel comfortable with the mortgage broker and feel you can tell them anything since you are essentially telling them everything about your personal finances.

Mortgage brokers are paid by commission by either the borrower or the lender. The fee is typically 1% or 2% of the total loan amount and usually is rolled into the loan in the case of a no-cost loan. However, be alert since rolling in the mortgage broker origination fee could result in a higher interest rate.  The other option is to pay a loan origination fee to the broker separately, again 1% to 2% of the loan amount.

Mortgage brokers are required to disclose all fees up front and can charge only that disclosed fee amount. Further, each fee should be itemized, and the broker should be ready to tell you, the borrower, exactly what each fee was for. Mortgage brokers, like real estate brokers, do not get paid unless there are a closed loan and a closed transaction regardless of how much work they do prior to closing.

After the financial crisis, the Dodd-Frank Act restructured how mortgage brokers get paid. Before this legislation came into effect, lenders could compensate mortgage brokers for getting their clients to agree to high-interest rate loans and signing off on costly fees. This left the door open to an unscrupulous loan broker and hidden fees, affecting many inexperienced buyers.

With so many details involved in purchasing a home, working with a competent mortgage broker whom you’re comfortable with can be a good idea to help you get through the process. They could be invaluable in procuring the best loan for your financial situation and taking some of the work off your shoulders.

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Real estate winter

 

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Castles in the Sand

Real estate winter

Written by Louise Bolger on . Posted in Business, Castles in the Sand.

It’s winter in southwest Florida and although we talk a lot about beach, road and Publix congestion, we really do love visitors to the Island. We, of course, would love them even more if the visitors converted to owners and not just on Anna Maria Island.

Florida and Arizona have built a real estate market catering largely to retirees, specifically baby boomer retirees. As much as we boomers want to continue influencing the culture and finances of the country, we will inevitably pass away. Not only do we have to face death we may also need to face not being able to live in our homes and migrating to family or assisted living facilities.

Now that I’ve completely ruined your day, these numbers will further depress you. According to Zillow, one in eight owner-occupied homes in the U.S., or roughly nine million residences, are set to hit the market from 2017 through 2027. In addition, Zillow calculates that by 2037 one-quarter of the U.S. homes for sale, or roughly 21 million homes, will be vacated by seniors.

This is a lot of real estate and a good percentage of these homes are in over 55 communities where at least one owner needs to meet that age criteria. These communities have been popular with baby boomers for decades. However, the concern is that the next generation of homeowners are not only looking for a different lifestyle but there aren’t even enough of them to fill the vacancies.

In theory, older homeowners are replaced by younger homeowners and the recent lack of available properties to purchase has kept many millennials stuck in rentals, so this should be a good thing. However, in the case of many of the baby boomer properties, the properties are located in areas where younger buyers don’t want to buy. Suburban living is less of a draw than for previous generations and millennials prefer cities and major metropolitan areas. In addition, even generations below the baby boomers who may be in pre-retirement years have little or no interest in living in planned, age-restricted enclaves no matter how great the weather is.

Economists worry about what the impact of unpopular large retirement communities will have on the local economy surrounding these areas. There are some market experts who suggest that a retooling of these communities to make them more attractive to families and lifting the age restrictions could be a better use of these properties down the road. Arizona and Florida are naturally in the crosshairs of potentially having an overabundance of senior housing. Thankfully for us, Florida’s east coast will be harder impacted.

Real estate markets are a balancing act. If one part of the market has a problem, another part may benefit from those problems. For example, the beautiful and exotic state of Hawaii.

Who doesn’t love Hawaii for vacations, but do you want to live there? Apparently lots of people don’t since Hawaii is experiencing the third straight year of negative migration, with the young, highly educated and well-off being the ones most likely to leave.

Hawaii has the highest cost of living in the country, and according to the Tax Foundation, the real value of $100 in Hawaii is $84.39. According to Zillow, the median list price for a house is $630,000 compared with $284,999 for the U.S. as a whole. In Hawaii, gasoline has been as high at $5.00 a gallon and a gallon of milk $7.00. Hawaiians may be going kicking and screaming from their beautiful state but they’re leaving for the same reasons residents of New York, California, Illinois and New Jersey are leaving – taxes, cost of living and public education.

Inevitably, we will see a dramatic change in the real estate market in the near future. Right now, the baby boomers still rule and will for a while.

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Castles in the Sand

Is Anna Maria Island still Old Florida?

Written by Louise Bolger on . Posted in Business, Castles in the Sand.

There’s no doubt how much Anna Maria Island has changed over the past 25 years since I found the Island. One might say it’s gone from shabby chic to polished coastal, but has it also gone from Old Florida to upscale Florida pretending to be Old Florida.

Last month the Island, or at least Holmes Beach, had another “best of” rankings bestowed on them. This time it was from Trip Advisor who picked the top seven “delightfully low-key Florida beach towns you might not know about.” Well if they didn’t know about it before they sure know about it now. Just what we need, more cars on the Island. On the other hand, for people who own property on the Island and want to generate some profit, this may be the right time if you follow a few simple rules.

There are lots of ways to get your property out there if you’re considering rentals, VRBO, Airbnb, the new Marriott Homes & Villas and of course, traditional Island real estate companies.

Starting with a great location is key and the Island has a multitude of great locations. Properties closer to the beach always rent for more but it’s hard to find anywhere on Anna Maria Island that’s undesirable.

Next is the number of bedrooms, the more the better. If there is any way to turn available space like an office or storage room into another bedroom it will make your rental more attractive. Also, remember the children and furnish the property with sturdy and well-built trendy furniture that is washable and somewhat indestructible. Leave the Chippendale in storage.

Provide big sectional sofas and seating areas for everyone to get cozy on, and also a large enough dining table for the maximum number of guests allowed. Add some beach essentials like beach chairs, beach toys, beach carts and maybe even paddleboards. If you have a pool having a floating chair with a drink holder could seal the deal. A gas grill is also appreciated by renters as are ping pong tables, bikes, games and restaurant recommendations. Towels, including beach and bedding that are not expensive but in good condition, are essential. No one likes a dingy towel. Don’t forget toilet paper, paper towels, bath soap and dishwasher soap, providing at least enough to get started if it’s a long-term rental and enough to get short-term renters through to the end.

Leaving a complimentary bottle of wine and some welcome cheese and crackers is a nice touch that people don’t forget. And don’t be afraid to decorate with some cute and beachy stuff. I read somewhere it’s a good idea to have a plaque made with the name of your rental placed in a position where renters might take a picture, free advertising when they show their vacation photos to friends.

The bottom line is to create a space that you would like to spend time in.

Trip Advisor loves the slower pace of Holmes Beach and the “Old Florida” vibe without the crowds. But we’re not alone – the other top six low-key Florida destinations include Venice, Cocoa Beach, Englewood, Daytona Beach Shores, Lauderdale By The Sea and Longboat Key. I’m not sure if Longboat Key residents would agree with the “Old Florida” characterization, but polished coastal does fit.

There’s no argument that Anna Maria Island is one of the most beautiful beachfront communities in the country and to people coming here for the first time it still epitomizes Old Florida. So, if you’re considering using your home as a rental there certainly is a thriving market. Old or upscale, it’s still the tops.

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The Grinch that stole your real estate deal

Written by Louise Bolger on . Posted in Business, Castles in the Sand.

If you’re in a home negotiation, whether you’re the buyer or seller you better watch out for the home inspection grinch. To the buyer, the grinch is a kindly and informed fellow who will uncover all of the home’s secrets and to the seller, the grinch is a nosey picky guy who when he uncovers all of your home’s secrets will tell the buyer. Whichever grinch you see he is a necessary evil to the purchase transaction.
Home inspections have become standard operating procedure for both single-family homes and condos all over the country. Generally, a seller is entitled to a home inspection within a specified number of days after both parties have signed the purchase of sale agreement and/or contract of sale. The number of days is determined by the culture of the region and the availability of inspectors in that region.
Inspectors are looking for defects in major systems like electrical, plumbing and heating and air conditioning. In Florida in particular, inspectors are very sensitive to mold and mildew and may use a moisture meter looking for damp areas behind walls from a plumbing leak. They will also check for water pressure in toilets, tubs and dishwashers, as well as the condition of appliances and outdated wiring.
If an inspection comes back with legitimate problems, the buyer and seller should come to an agreement and time frame for repairs. If they fail to do so, the contract is voided, the buyer gets their earnest money back and everyone walks away.
Some buyers will waive the contingency of inspection in an effort to make their offer more appealing, however, they may still have an inspection. This means that in theory if an inspector finds a problem the buyer cannot walk away from the contract and will forfeit their earnest money. But, as we all know, anything can be litigated, tying the house up in court while the buyer tries to get his money back or renegotiates a new price. The point is, be careful with a buyer who removes the inspection contingency as a strategy.
As a seller, there are a couple of ways to keep the real estate grinch away from your door. One is to have your own home inspection prior to putting your home on the market. This will give you a heads up on any problems you may not know about or may not think are serious. An inspection is also a useful tool to provide your broker with to pass on to potential buyers along with other disclosure documents. Buyers will likely still want their own inspection, but it will give them a nice warm feeling about the home and you as a seller.
Another positive to present to buyers is a gift of a home warranty that covers certain repairs to appliances, plumbing, electrical systems and heating and air conditioning units. Warranties are typically for a year and will cost about $700 for the average single-family home. According to the National Association of Realtors, only 17% of all sellers offer a home warranty as an incentive to potential buyers. Again, buyers will get a nice warm feeling about the transaction and it will also make your home stand out among others. Home warranties included in the sale should not, however, remove the home inspection from the buyer’s list of due diligence items.
Even though the inventory of homes is way down, sellers should still attempt to provide quality disclosure about their property and remedy serious issues. It’s the ethical thing to do and it’s the best way to keep the Grinch from stealing your real estate transaction.

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Castles in the Sand

Today’s challenge for buyers

Written by Louise Bolger on . Posted in Business, Castles in the Sand.

There’s a big predicament out there all over the country for home buyers, especially first-time buyers. There’s nothing to buy and, apparently, it’s my generation’s fault.

United States homeowners are staying in their homes much longer than ever. Nationwide, homeowners are remaining in their homes typically 13 years, which is five years longer than they did in 2010, according to Redfin. This fact is keeping the housing inventory low resulting in low sales statistics month after month. Except for the early part of this year, the inventory of homes for sale is now near the lowest level in 37 years of record-keeping, according to the housing data firm CoreLogic, Inc.

You don’t have to be an economist and expert in the housing market to understand that when owners don’t trade up to a larger home for a growing family or downsize when children leave it there are availability consequences. When this happens, which is rapidly becoming a fact, it puts a cap on the number of homes available for buyers either looking to upgrade or just coming into the market.

The baby boomer generation, who are now entering their seventies, is partly to blame for the lack of inventory since many of them are staying healthier later in life, are more active and don’t see any reason to downsize. Some states make it easier for seniors to stay in their homes with generous tax benefits. In most states, once you move you lose that benefit which only encourages senior homeowners to stay put.

In Manatee County, however, there is a program for homesteaded residents that allows homeowners to move to a new home and retain some of the tax benefits of the original home. This is called portability and it gives you the ability to transfer the “Save Our Homes” cap to a new home. The “Save Our Homes” cap is the difference between your market value and assessed value. For example, if the just value of your new homestead property is more than the just value of your old homestead, you will be able to transfer your cap up to the $500,000 limit. This went into effect on January 1, 2008, and allows you two years to make the application for portability. In addition, there is no limit on the number of times you move and apply for portability.

October sales statists from the Realtor Association of Sarasota and Manatee is showing a similar trend in inventory. Here are the numbers.

Both Manatee and Sarasota counties continue the upward drift in sales prices with Manatee doing a little better. The number of closed single-family homes in Manatee County increased by 5% compared to last October. The median sale price for single-family is $325,000, up 9.1% from last year and the average is $396,342, up 7.4%. Sarasota’s single-family median sale prices increased by 5.6% to $285,000 and their average sales price increased by 12.5% to $385,131.

Condos in Manatee County closed 0.5% fewer sales, however, the median sale price increased 0.9% from last October to $192,999 and the average sale price increased 20.2% to $262,724. Sarasota’s condo median sale price decreased 5.7% to $220,352 and their average also decreased by 0.9% to $297,501.

Inventory of available properties continued to drop in Manatee County to a 3.4 months supply for single-family homes and 3.7% for condos, putting additional pressure on the market. Who knows what the inventory future holds and the effect it will have on the upcoming selling season? In the meantime, buyers are just waiting and waiting and blaming their parents and grandparents. Happy Thanksgiving!

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Castles in the Sand

Are condos the future of housing?

Written by Louise Bolger on . Posted in Business, Castles in the Sand.

In case you haven’t noticed, interest rates are low, real low. Most rates for a 30-year fixed-rate mortgage are hovering around 4% based on credit scores and income to loan ratios. In spite of this, condo financing has always been somewhat of a poor stepchild to single-family home financing. New condo construction loans have been especially vulnerable to government regulations, but now The Federal Housing Administration has issued some new guidelines making available more advantageous condo financing programs.

FHA is trying to be more responsive to market conditions as well as accepting that condo units are being viewed more broadly as a way to provide affordable housing in many markets. Generally, single-family homes may not be accessible for first-time buyers and others who are trying to gain access to homeownership and condos nicely fill that need.

The new regulations are geared for new condo construction primarily but will also have an effect on the availability of condos for first-time buyers. Among other changes is one that has been a big issue for condo builders and that’s the owner-occupancy rate. The new FHA regulations have lowered the number of owner-occupancy rates as low as 35% from 50% before individuals can qualify for financing in new condo construction.

Condos are a big deal in Florida and in Manatee County. Although the number of condo sales was down in September for Manatee County, the sale prices were up, so let’s take a look at the county overall:

In September Manatee County closed 15.2% more single-family homes than last September. The median selling price for single-family was $315,000, 6.8% higher than last September. The average sale price was $381,577, 9.6% higher than last year.

Condo sales in September were down 8.6%, but the median sale price was up 6.7% to $199,000 and the average sale price was also up by 16.1% to $244,587. Both single-family and condos are low in inventory with the single-family home months supply at 3.3 months and condo months supply at 3.8 months. As a reminder, 5.5 months supply is the benchmark for a balanced market.

Sarasota County is also showing some increases in sales and pricing for single-family and condos. The median sale price for single-family in Sarasota increased by 6.4% to $298,000 and for condos, the median price decreased slightly by 1.8% to $232,000.

Statewide single-family homes reached a median of $265,000, an increase of 5.3%, and an average of $339,862, an increase of 4.9%. Condos statewide also increased with the median selling price at $193,000, a 5.8% increase, and an average of $261,532, a 1.3% increase.

All county and statewide statistics are from the Realtor Association of Sarasota and Manatee website.

Evidence continues to mount that condo sales will play a more significant role in the mortgage origination market in the next few years, according to CoreLogic. With a flood of millennials and other first-time homebuyers expected to soon enter the market for affordable housing, CoreLogic foresees a rising demand for condos in the near future.

Millennials aside, Florida is a hot market not only for retirees but homeowners relocating to a tax-friendly state with a lot of new construction and fundamentally great weather. But if you’re starting to think of relocating to the Sunshine State, you better get moving. Inventory is low, prices are high and interest rates are still historically low. Come on down!

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Written by Louise Bolger on . Posted in Business, Castles in the Sand.

I never really believed in ghosts and evil spirits. It was always fun to talk about other people’s experiences at parties but since I never had any first-hand knowledge it was just that, fun until it wasn’t.

Anna Maria Island has its share of ghost sightings including haunted restaurants, even one with a ghost cat. Hotels have had sightings – how about a bride ghost – and, of course, Coquina Beach has its resident ghost. Naturally, some clever entrepreneurs have packaged these events into entertaining tours around the Island, so you can get up close and personal. But if you’re selling your property and you think you may have a ghost, what do you do?

Thankfully, Florida absolves property owners of the responsibility of disclosing paranormal activity in homes or the fact that a crime was committed in a home. In addition, the seller does not even have to disclose that their property was suspected to be the site of a crime. Further, a seller has no obligation to disclose homicides, suicides or deaths that occurred on the property. Basically, you can sell your property with all the ghosts, ghouls and goblins as an added bonus.

Florida is one of more than 20 states with laws that say agents and sellers won’t be held liable for failing to mention that 20 years earlier a wife stabbed her husband in the home’s master bedroom, for instance, or the possibility of paranormal activity. Our state does not consider these events material facts and therefore property owners are not subject to possible lawsuits down the road; you can do absolutely nothing within the law. However, in plenty of other states, you may be legally required to say something about your haunted house, deaths, suicides or crimes.

To me it does sound a little unnecessary to disclose deaths in a property; after all, how does an aged grandfather dying comfortably in his bed impact the structural integrity of a home. Even more unfair is a home that has no past history, but rumors have taken over facts and turned it into a stigmatized property that now has to be disclosed to potential buyers. This has happened in cases of celebrity or well-publicized events like the home where JonBenet Ramsey lived. Owners of some so-called stigmatized properties have even resorted to changing the property address in an effort to remove some of the stigma. Unfortunately, since you can’t prove the unproven, sellers are stuck and must disclose in states that require it.

As a general rule, it’s always better to disclose everything you know about a home, whether or not the law requires it. It will give your buyer a sense of honesty that is always important in a business transaction and will allow you to move out with a clear conscience knowing you’ve done the right thing.

My up close and personal ghost experience happened in a 17th-century hotel in Rome. Although I never actually saw a spirit, they did move several things around and made a copy of The New York Times disappear and then reappear in the exact spot. It was enough to give me the creeps and start paying closer attention to cocktail party talk.

If you’re selling your home and you think that it may be stigmatized in any way, ethics should prevail; if it makes you uncomfortable probably a good thing to disclose it even though you’re not obligated. Have a boo time on Halloween!

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You found the perfect house; now what?

Written by Louise Bolger on . Posted in Business, Castles in the Sand.

You may think it’s finally over – you found your dream home, your forever home or your long-dreamed-of beach house. But guess what, unless you have lots of cash in your checking account, you will have to apply for a mortgage.

There have been for many, many years two basic types of mortgages, the fixed-rate mortgage and the adjustable-rate mortgage or ARM. The fixed-rate mortgage is just that – your principal and interest payment are fixed for the life of the mortgage or until you sell the property and satisfy the mortgage balance. Fixed-rate mortgages give you a set amount of money every month to budget for and builds equity for a home that you feel will be a long-term purchase. Building equity will also give you the option of refinancing in the future if rates go down possibly resulting in a lower monthly mortgage payment.

Adjustable-rate mortgages are typically a fixed rate for a specific number of years, for example, 5 years, and then are adjusted annually either up or down. Generally, adjustable-rate mortgages start at a lower rate than a fixed rate, but you take the risk of monthly payments increasing substantially as the rates fluctuate after the fixed number of years has been reached.

Adjustable-rate loans could be a good choice if you’re planning on selling your home within a short period of time prior to when the fixed-rate term expires. However, this type of mortgage does not build much, if any, equity, a consideration in a real estate market that may be on the way down.

Whichever type of mortgage you choose, the amount of money you put down will influence the rate you are offered. A 20% or higher down payment will likely provide the best mortgage rates and the most options as well as substantially reducing the risk of the home not appraising.

Putting down between 5% and 19% will put you in the position of having to pay a higher interest rate and/or fees. In addition, lenders most likely will require private mortgage insurance (PMI). Private mortgage insurance is an insurance policy that allows you to make a lower down payment by insuring the lender against loss if you don’t make your mortgage payments. A lower down payment could be a good thing for buyers with little cash or if the home requires work and the cash to do it. PMI payments start going down after equity has built up in the home.

Finally, there are no-down-payment or small-down-payment loan programs which are more expensive but are an alternative. If you or someone in your family are trying to get into a home with little cash, they should research FHA loans or, if qualified, VA loans, both with low down payment options.

Two things you should try and avoid in-home financing are balloon payments and prepayment penalties. Balloon payments are a large payment required usually at the end of the loan repayment period with varying amounts based on the terms of the loan. Prepayment penalties are an amount required if you refinance, pay off your loan early or sell your home. And one nice little trick to help you pay off your mortgage sooner and build equity is to make extra payments during the course of the year.

Once you find the perfect mortgage and get through the mortgage qualifying maze, you’re ready to enjoy your perfect home; I hope for you, it’s the beach house.

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Is homeownership threatened?

Written by Louise Bolger on . Posted in Business, Castles in the Sand.

For most Americans, their biggest source of wealth is the equity in their homes. But what if you never own a home? What if being a renter is your fate? How does that impact your future wealth and state of mind?

Homeownership rates for younger Americans have fallen over the past 10 years and are near the lowest levels in more than three decades of recordkeeping. About 40% of young adults ages 25 to 34 were homeowners in 2018 according to federal data analyzed by Freddie Mac. That is down from about 48% in 2001.

In addition, the median age of a home buyer is 46, vastly increased from when I purchased my first home at age 27. According to the National Association of Realtors, this is the oldest median age since they began keeping records in 1981. For young people, it’s a vicious cycle of rents going up and student debt putting more financial pressure on young adults who can’t seem to get a foothold in the American dream.

Generally, lower homeownership promotes lower growth by forcing older Americans to stay in their homes because there are fewer buyers for entry-level properties. And even though the price of entry-level homes has been rising, without savings, the pool of buyers keeps shrinking.

So, is homeownership worth it? Sometimes yes and sometimes no depending on individual needs. These are some of the questions you need to think about:

What can I afford, should I keep paying rent until I find the perfect home, or should I take the plunge now with the goal of trading up down the road?

How long do you plan on staying in the home? If you know your job may relocate you within a year maybe you want to wait before spending the money required to get into a home. Or if you’re living in a “hot” market you may want to go for it with the hope of turning a nice profit in a short period of time.

Even if your job is not a factor, are you the type of person who likes stability or flexibility? Owning a home by definition is not a flexible choice considering maintenance and repairs that are required in most homes, not to mention the cost of upkeep. If you want to be footloose and fancy-free, better keep renting.

Finally, your decision may be all about the family. If you have children, the quality of the schools may be your deciding factor. Do rentals even exist in the school district of your choice or is purchasing a home the only way to provide the best education for your children? Also, having property space for kids to run around may require you to purchase a home.

The advantages of owning your home are many, with building equity and establishing good credit being the primary reasons people buy homes. Even with the new tax laws limiting some deductions, many homeowners may still see tax benefits to owning. And of course, there is the independence of Americans to own their own property and not having to answer to landlords.

The disadvantages of owning start with finances. It costs more money to own and maintain a home than renting. When you rent, someone else is responsible for the repairs and the cost of those repairs. Renting also insulates you from falling home values, which we all remember has happened.

It’s nice to have a choice in life and a choice in whether you want to own or rent. Unfortunately, it appears we are building an ever-increasing group of permanent renters who may not have another choice. Let’s hope the American dream isn’t shattered forever.

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Written by Louise Bolger on . Posted in Business, Castles in the Sand.

Is there an algorithm in your future? If you’re planning on buying or selling a house, get ready for the future of real estate.

In a world where technology has remade everything from your morning coffee to tracking your investments, the real estate market has remained very old school. Reams of paperwork are the norm and interaction with local real estate professionals is the custom in most markets around the country. It wasn’t that many years ago when local real estate associations opened up multiple listing access to consumers making practically everyone an informed expert. If the availability of multiple listing properties to everyone was a big step, wait until you see what’s coming down the road.

iBuyer computer platforms have been gradually immersing themselves in the real estate market, offering buyers and sellers practically on-the-spot gratification. An iBuyer is a company that uses technology to make an offer on your home instantly. iBuyers represent a dramatic shift in the way people are buying and selling homes, offering a simpler, more convenient alternative to traditional home sales. Just search iBuyers and you’ll be amazed at the hits you get.

Companies like Knock and Zillow are betting big time on the success of these platforms in a world where everyone is too busy to complete traditional real estate transactions. Knock, for example, helps customers buy a new home, usually an upgraded one, and then stages the old home and gets it on the market right away. There are, of course, fees for this service but for many professional couples, it’s worth it.

Zillow and others buy the property after an appraisal and the sellers move on without the hassle of selling. So far Zillow is moving along with its business plan, buying more than 1,500 homes in the second quarter of the year.

Then we have startups who are offering people with good income but not so good credit a way to get into a home. Divvy Homes buys homes then rents the homes to their clients so they can have a place to live, pay rent and build equity towards eventual ownership. This is an idea that has its roots in the real estate industry known as rent with an option to buy, which was a private contract between two parties. It worked for many buyers and sellers in the pre-tech world, especially for difficult-to-sell properties.

Now Divvy and others like Flyhomes are offering high tech plans to fill a need aimed at first-time buyers who are probably already renters. It’s not uncommon for first-time buyers to be faced with student loan debt and little or no savings while they’re getting their careers up and running.

Divvy’s plan is to charge monthly rent with about 20% of the monthly payment going toward equity to buy the property. The monthly rent is higher than what the going rate for a similar rental would be, but equity is being built. Naturally, Divvy makes most of their money from the rent paid.

Flyhomes offers a full-service brokerage, buys the homes for cash giving their clients an edge and then underwrites the potential mortgage. Naturally, there are fees attached to this as well as traditional real estate brokerage commissions.

Ask five different real estate agents what your home is worth and you’ll get five completely different answers. Ask an algorithm what your home is worth and you’ll at least get one answer which may or may not be correct. No matter how you feel about technology getting involved in real estate, we can all agree that it’s definitely a disruption.

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Written by Louise Bolger on . Posted in Business, Castles in the Sand.

Recovery, what recovery? That’s a word we left in our rearview mirror a long time ago. It’s true in Florida generally, and Anna Maria Island specifically has recovered nicely since the financial downturn. There are areas of the country that are still struggling, but August may have been the turn-around month.

According to the National Association of Realtors, August was the strongest month for sales of United States homes in nearly a year and a half. Sales of previously owned homes rose 1.3% in August with a median sale price of $278,200, up 4.7% from the previous August. Conversely, the availability of homes for sale fell in August further increasing prices. Add to this the average fixed-rate mortgage for a 30-year loan was 3.73% at the end of September.

Is this the beginning of the national real estate market starting to turn the corner? Real estate sales have been underperforming relative to jobs and the economy as a whole and economists are viewing the statistics for the past two months as a very good sign.

If you’re interested in how the national market compares to our local Manatee County market, keep reading.

Closed single-family homes were up 10.3% from last August and the median sale price continues to be strong at $317,000, 7.1% higher than last year. The average sale price for single-family homes was $408,738, up 4% from last year. The median time to contract is down by 4.5% to only 42 days and the month’s supply of available properties is 3.3 months.

Condos closed fewer properties down at 25.9%, however, the median sale price was higher at $205,000, up 7.9%. The average sale price was also up 13.1% to $251,339. The median time to contract was up 6.4% to 50 days and the month’s supply of condos is at 3.6 months.

Sales statistics are from the Realtor Association of Sarasota Manatee.

Our sales in both the numbers of properties sold and sale prices continue to perform well compared to the national statistics. Nationally, the median single-family sale price for August was $278,200 up 4.7% from last August, compared to Manatee County’s median of $317,000 up 7.1%.

Based on the above, it’s not a surprise that the southern region of the country ended August with an increase of 3.6% in sales, making it the largest annual growth in sales volume in the country. And this may be just the beginning, as more and more high-income residents of high taxed states are just beginning to feel the effects of the Tax Cuts and Jobs Act of 2017 and are taking refuge in the South.

There are 41 states that collect taxes on wages and salary, with California taking the highest percentage at 13.3%. The remaining nine states that are income tax-free are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. If you’re a part-time resident of one of these states and are considering full-time residency, check out the individual state’s qualifications to establish permanent residency. Both the state you’re leaving and the one you’re coming to have strict and varied residency rules.

It looks like there will be big changes for Florida and other low tax states right around the corner. Nevertheless, don’t get too comfortable with what you see in the rearview mirror when it comes to real estate markets. You never know when that truck will start gaining on you.

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