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Tag: Anna Maria Island real estate

Castles in the Sand

Traffic, real estate sales up

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

If you want to know why you’re starting to analyze traffic patterns so you can plan your trips to the supermarket, doctor’s office and Trader Joe’s, here’s the reason. During 2018, Sarasota and Manatee counties had more closed sales, an increase in overall inventory and a rise in median prices compared to 2017.

Sarasota single-family median home prices increased by 5 percent to $282,500, and Manatee single-family median home prices increased by 1.9 percent to $300,475 from 2017. Sarasota median condo prices increased by 3.2 percent to $232,300, while Manatee median condos increased by 5.8 percent to $190,500.

Meanwhile, the volume of single-family home sales in Manatee increased by 7 percent and in Sarasota, the increase was 0.5 percent. Condo sales in both counties as reported by the Realtor Association of Sarasota and Manatee, recorded the highest number of sales over the last 10 years. Sarasota increased by 8.1 percent and Manatee increased by 11.1 percent.

These are great numbers especially when you look at them compared to last year’s sales number as reported by the National Association of Realtors. Nationally, last year was the weakest for home sales since 2015 with buyers pulling back because of rising mortgage interest rates, a shortage of starter homes and a volatile stock market. However, the February home sales of previously owned homes nationally were up 11.8 percent, the largest monthly gain since 2015, obviously due to the lowering of mortgage interest down to 4.28 percent in March from 5 percent at the end of last year.

Let’s take a look at Manatee County’s February closed sales reported by the Realtor Association of Sarasota and Manatee:

Closed single-family sales were up 4.8 percent, the median sale price was down slightly by 0.5 percent to $298,500 and the average sale price was up 2.6 percent to $389,119. Median time to sell was 97 days up a little from 93 last year and the month’s supply of available properties was 4.5 months – no real change.

Condo sales were down, closed sales were down 14.9 percent, the median sale price was down 11.4 percent to $189,000 and the average sale price was also down by 10.9 percent to $227,849. Median time to sell was up to 101 days from 94 and the number of months supply of available properties was up to five months.

Keep in mind these types of statistics are a snapshot in time and there are a variety of things that can influence sale prices and sale numbers in any given month. It’s the overall picture for a sustained period of time that really tells the story, and the year over year story for Manatee and Sarasota Counties is spectacular.

The months of March and April traditionally experience the most closed sales, so I look forward to when those numbers are compiled before we head into our slower summer season. That said I may have to revise that statement down the road since there doesn’t ever seem to be a slow season anymore.

It goes without saying that Florida’s Gulf Coast is one of the most beautiful areas in the country.

We have beaches, sun, culture, low taxes and great choices when it comes to purchasing a home. And what comes along with all that is more people, more cars and overbooked restaurants, even Sarasota Airport is reporting a 35 percent increase in traffic during February this year, but would you change anything?

It just might take a little better planning.

More Castles in the Sand:

Should you digitally – or actually – renovate?

Technology can’t replace real estate brokers

Castles in the Sand

Should you digitally – or actually – renovate?

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

There comes a time in every homeowner’s life when they are faced with the dreaded renovation question. Frequently this question comes about when you’re thinking of putting your home up for sale. There is no doubt that move-in ready homes sell faster and sometimes for more money, but is this a job that you should tackle, or hire professionals?

If you’re convinced that do-it-yourself is the way to go, there are some websites to check out. Old House Online, Young House Love, and How To Sand A Floor will provide more information than any normal DIY project will ever need.

However, know your limits and leave the electrical, plumbing and structural repairs to the experts who will do it within current building codes and not burn the house down. But if you like getting your hands dirty, do your own demo. Naturally, make sure that the wall you’re taking down isn’t structural and doesn’t contain the plumbing to the toilet.

Certainly, the least difficult do-it-yourself job is painting. Exterior painting will be easier and look more professional if you power wash first, removing dirt, mold and peeling paint.

Even if you’re not a carpenter, replacing window and door moldings are pretty straightforward and forgiving of mistakes. Refinishing hardwood floors may be backbreaking but doesn’t require a master craftsman. And finally, know when to give up. If the project is not going well, your spouse isn’t talking to you and the kids are wearing gas masks, it may be time to make that phone call.

There is, of course, another way to go, there always is and with modern computer technology, you can have a virtual renovation if you’re selling your home. Since almost every home search starts with an online search it’s a great way to make your home stand out even if it’s slightly fudged.

Homeowners can take down walls, remove paneling, add swimming pools, garages and even turn your brown lawn green and make your dead plants bloom. This is a long way from the old school marketing of staging homes with rented furniture, pictures and knickknacks. Now all of that can be done digitally making an empty house looked lived in and inviting.

Sounds great right? The problem is when non-digital people come to look at your digitally-enhanced house and want to know why there’s a patio where they thought a pool was and what happened to the hardwood floor.

Needless to say, digital enhancements should be disclosed, and the National Association of Realtors code of ethics requires agents to present a true picture of the property in their advertising and marketing. Problem is since although the technology has been around it is now just starting to be widely used and guidelines for homeowners and agents alike still need to be established. If you watch any of the property renovation shows on HGTV you’ll see exactly what this technology can do to completely change the look and functionality of a home, and why it can be so misleading.

If taking advantage of this type of technology to market your property either personally or through an agent sounds like just the thing for you, full disclosure is a must. I’m not saying don’t to do it, it could bring a lot of eyeballs to the website as long as those eyeballs know what they’re looking at.

On the other hand, doing it yourself or hiring someone to move the wall and install the pool could make life ethically easier. The options are endless.

More Castles in the Sand:

Technology can’t replace real estate brokers

Good news and good news

Are you smarter than a hedge fund manager?

Castles in the Sand

Technology can’t replace real estate brokers

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

Technology has done as much to change the real estate industry as Henry Ford did to change the production of automobiles. However, where Henry Ford brought the cost of cars way down with his technology, the real estate industry hasn’t adjusted their fees. But before every real estate broker within 50 miles of Anna Maria Island starts calling me, let me give you the pros and cons of this debate.

Yes, it’s true that house hunters can go online and see virtually every house on the market in their chosen area. It’s also true that buyers frequently call brokers after they have sifted through the online housing inventory and are ready to get inside the property. And yes, it’s also true that brokers are saving a lot on gasoline by not driving customers around for days on end as we all did years ago. But none of this tells the real story.

Let’s start with selling your home and determining a listing price. It’s pretty easy to gather a bunch of comparable properties that have sold in your area from realtor websites and county records, but are they really comparable? You haven’t been inside these properties, so you don’t really know how they compare. Active local brokers have been in a lot of closed properties and they have the ability to analyze selling prices and recommend where your house should be listed. If your house sells fast because it was priced correctly, you’ll quickly forget about the real estate commission.

How about showing your home. Do you want to field calls and schedule appointments with buyers who may not be qualified financially or who may just be kicking tires? And don’t dismiss the importance of negotiating once a buyer comes forward with an offer. No matter how successful you are in your business life, negotiating real estate offers are a different animal, the element of emotions when you’re negotiating on your own home can’t be overstated.

Finally, here in Florida, it’s not uncommon to be selling to an out of state or out of country buyer. Navigating the details of these transactions can be tricky unless you have someone who has been through it. Not to mention selling a property from out of state that needs to be cleaned out and ready for sale, another job that Florida brokers are set up to do.

What about buyers, why do they need to call a broker after they’ve done all the work on their smartphones. If you’re sitting in New Jersey in February looking at beach properties on Anna Maria Island they all look great. You really need the advice of a local broker to educate you especially in a specialized area like Anna Maria Island.

Are you relocating permanently and need advice about schools, are you buying a second home and need advice about rental possibilities, or do you simply want to know the quality of the restaurants in the area? All of this, the really important and the really not so important is where someone with years of local knowledge becomes crucial.

I love the real estate technology available to everyone today, I love that you can see every property that’s on the MLS, but this technology has been around for about 10 years and real estate professionals are still going strong. There must be some reason, maybe the brokers just decided to get out of their cars and realigned their priorities. Just like Henry Ford, technology is meant to enhance not replace.

More Castles in the Sand:

Good news and good news

Are you smarter than a hedge fund manager?

House hunting – the fun and not so fun

Castles in the Sand

Good news and good news

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

It’s been a while since we had positive news about how the national real estate market was trending. The little black cloud hanging over the head of the market has included a shortage of inventory, first-time buyers being priced out of the market and raising interest rates. Well, we may be seeing the black cloud starting to turn a little grey.

A couple of weeks ago, the U.S. Census Bureau released homeownership figures for the fourth quarter of 2018. The level of homeownership increased to the highest level in five years from 64.2 percent to 64.8 percent. This may not seem like a significant change, but it is a positive indicator of the real estate market shifting back to ownership from renting. The U.S. Census Bureau further states that the U.S. added about 1.7 million owner households in 2018 and lost 167,000 renter households.

Economists are interpreting this as a small but positive movement in the market, in conjunction with lower interest rates and a slight leveling off of listing prices. This may be just the thing some younger and first-time buyers need to put them on the path to homeownership.

And what about interest rates, are they really a lot better? Well, it depends what you’re comparing them to. Taking a look at 2017 and 2018, it appears the low point was December 2017 when a 30-year fixed rate mortgage could be obtained for as little as 3.93 percent. After that, the rates started climbing during 2018 when in November of 2018, they reached 4.94 percent. Then rates started declining to pretty much where we are now in Florida of between 4.36 and 4.40 percent. It’s important to understand that all of the rates we’ve been experiencing during the past three years are all good and all staying below 5 percent, a number that some of us would have envied in past years.

Another interesting thing about interest rates is that all states are not created equal. Three things that have a big influence on the mortgage rates offered in individual states is the cost of doing business in the state, the amount of competition among local mortgage lenders and foreclosure regulations. A state that requires a longer and more expensive foreclosure process will surely have higher interest rates built in by lenders. And in case you’re interested, New York state currently has the highest mortgage rates and, believe it or not, California has the lowest.

However, none of these issues have as much influence on the mortgage rates offered as an individual’s credit score. The lowest rates always go to the applicants with the highest credit scores, so keeping your bills current is especially important if you’re thinking of applying for a mortgage or a refinance.

And for first-time mortgage holders, don’t be surprised if your mortgage is turned over to a “servicer” to administer the mortgage – that is, collect your escrow and pay your property taxes and possibly insurance premium on a schedule that benefits you. Also, it’s always a good idea to verify that these two payments are paid on time by the lender or the servicer before you get a notice from the county or insurance company.

For a while, homeownership was somewhat out of style, particularly after the housing bubble burst. Not only did younger buyers lose faith in homeownership, but they also couldn’t afford it and decided the homeownership lifestyle was maybe not for them. But apparently, the American Dream is alive and well. I think it just took a little nap.

More Castles in the Sand:

Are you smarter than a hedge fund manager?

House hunting – the fun and not so fun

Florida’s new foreign buyers

Castles in the Sand

Are you smarter than a hedge fund manager?

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

The most expensive home in U.S. history was just sold. It’s a four-story condo on Central Park South in New York City dubbed “billionaire’s bunker” and closing for $238 million. The buyer is a hedge fund manager who collects houses around the world so no surprise that the Big Apple was next on his hit list.

Those of us who live a little closer to earth will be interested in my latest three-month analysis of properties in the three cities of Anna Maria and Cortez that have sold or are listed over $1 million. This time we’re looking at November and December 2018 and January 2019. The residential closed property numbers are from the Manatee County Property Appraisers Office and the available or pending properties as of this writing are from realtor.com which reflects properties listed on the multiple listing records.

The little area of Cortez did not have any properties closing over $1 million during these months. The previous analysis was for a four-month period and showed two properties closed. The combined cities of Holmes Beach and Bradenton Beach closed 7 properties ranging from $2,300,000 to $1,050,000. The four-month analysis previously showed there were 14 properties closed. The City of Anna Maria closed 14 $1 million or over properties ranging from $3,300,000 to $1,010,000. The previous four-month analysis reported 17 closed properties over the $1 million mark.

Although the sold properties appear to be a little lower considering we’re comparing three months to four months during the holiday season when there aren’t too many serious buyers around, I think we’re just fine.

The available properties are another story, every location is up considerably from the last analysis. Starting with Cortez, there are currently 6 over $1 million properties on the market or pending, ranging from $1,500,000 to $1,100,000, the last analysis had five.

The combined cities of Holmes Beach and Bradenton Beach have an incredible 85 properties $1 million or more currently on the market or pending. The range is from a high of $9,500,000 to $1,049,000. There is one listing which happens to be land for $7,775,000; one property over $5 million; two properties over $4 million, five properties over $3 million and 16 properties over $2 million. The balance of the properties are between $2 million and $1 million. The previous analysis had 68 properties on the market.

The City of Anna Maria is also listing more properties than during the previous analysis. As of this writing, there were 58 either available or pending properties ranging from $5,496,000 to $1,065,000. There are two over $4 million; three over $3 million and 15 over $2 million; the balance of the available properties are between $1-2 million.

Lest we forget, it’s early March and the buyers are just starting to sniff around.

When you see the listing prices of the island properties lined up in a row it’s a little mind-blowing, considering what you could buy on the island in previous years. It may not be as mind-blowing as the price tag on a home in a 1,000-foot-tall tower with a view of Central Park, but we have our own views and we’re sticking to them. Are we smarter than a hedge fund manager? You bet we are.

More Castles in the Sand:

House hunting – the fun and not so fun

Florida’s new foreign buyers

A home’s equity is sometimes subjective

Castles in the Sand

House hunting – the fun and not so fun

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

I love technology and, although I may not be as well-versed as a 12-year-old, I do feel that for my generation I’m pretty competent. One of the best parts of the high-tech world we’re living in is the multitude of information on real estate at our fingertips. It also can be one or the worst parts of the high-tech world, especially if you’re house hunting.

Shopping online has become more than just a pleasant past time, it has become the go-to form of research for so many things, and house hunting is at the top of this list. Realtor.com makes it so easy to find homes in the zip code, price range and style you’re looking for that it will convince you to stay in your pajamas and make an offer from the bed, but that would be a whopper of a mistake. Online pictures are fabulous. Where else can you peek into someone’s home unobserved? But be careful – the wide-angle lenses typically used in real estate listings make small spaces look deceptively big and water views look endless. Naturally, pictures don’t show flaws in the property like cracked tile, torn screens and mold. Even renovated kitchens and baths will look better in pictures than in person.

The only way to thoroughly check a property is to get out of your pajamas, into the car and set eyes on it. The best thing to do is to use your online research as a guideline to help you pin down a location and get educated in price ranges.

In conjunction with that, getting a home value estimator online can also be a misleading and time-wasting effort. Unless you’re looking at cookie cutter homes or identical condo units, there are too many variables that go into setting the value of a home. Even then, the estimators can’t tell you about renovations and they also can’t keep current with market conditions.

But real estate professionals can keep current with markets and they generally have a pretty good idea about the condition of available properties in your price range and location. That said, remember that all real estate agents work for the seller of the property. The seller pays the commission. Unless you work with a buyer’s agent, be careful not to disclose too far ahead of time your interest in a property and/or an acceptable price for the property, especially if you meet an agent at an open house.

Almost all condo properties and many single-family homes and villas in Florida have homeowners’ associations. Don’t take this lightly. Thoroughly read the condominium rules and regulations, by-laws and financials. Condo boards are very powerful and can and will limit some of your activities. They also have the power to levy assessments. Not all of this is a bad thing; well run HOAs keep the values up and owner’s responsibilities down.

Finally, there are no perfect homes so don’t pass on a property because it may not have the exact color countertops or appliances you want. Changes and improvements you think you will need to make can be a good negotiation point and a little elbow grease could turn into thousands of dollars in real money.

House hunting is like marriage, best approached with good humor and compromise.  If I’m correct, I think you can do that online also. That would have been right up my alley. Where was the 12-year-old when you needed them?

More Castles in the Sand:

Florida’s new foreign buyers

A home’s equity is sometimes subjective

Why is the housing market declining?

Castles in the Sand

Florida’s new foreign buyers

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

I was born in New York state and up until 20 years ago when I moved to Florida, lived my entire life in the New York City and surrounding suburban area. There have been innumerable times during those years when I missed my old home, but frankly, this place in time is not one of those.

About a month ago, I reported the findings of the U.S. Census Bureau’s recent analysis. According to it, Florida was the second fastest growing state in the country after Texas based on an eight-year period ending 2018. In addition, Florida had the highest level of net domestic migration from July 2017 to July 2018, according to the U.S. Census data released in December. Also, Florida has been creating jobs, gaining 231,000 jobs in 2018, a 2.7 percent increase over the previous year. This brought the Florida unemployment rate down to 3.3 percent in December.

Governors and public officials in New York and other high taxed states like New Jersey, Illinois and Connecticut are looking for an excuse to blame the reason residents are leaving their states as well as their state deficits and high taxes on the federal government’s cap on state and local taxes. There is some truth to this contributing to the states’ shortfalls, but not everyone is leaving because they can’t fully deduct their property taxes. Maybe the real question is “Why are these states’ taxes so high to begin with?” Even though Floridians are benefiting from the North’s problems, rather than gloat we should be paying careful attention not to make the same mistakes.

An analysis by Zillow shows the preliminary data indicates a jump in Florida home purchases by buyers from high-tax states, as well as home values increasing in other low-tax states. According to real estate brokers in the Miami area, the loss of their foreign buyers has been replaced by buyers from New York, Florida’s new foreign buyer. Considering that Manhattan co-op and condo sales last year were down 12 percent from 2017 and that New York state was the largest overall population loser, you have to take the census reports seriously.

Down here in Manatee County, we’re ready for all of those tax-soaked Northerners. Just take a look at the January sales numbers from the Realtor Association of Sarasota and Manatee.

For single-family homes in Manatee County, the median sale price (half above half below) was $309,000, 3 percent more than last January. The average sale price was $386,927, exactly the same as last year. Median time to sell was 97 days, up 4.3 percent, and the month’s supply of properties available for sale was 4.4 months, no change.

The condo market is doing better. The median sale price was $195,000 this January, a 13 percent increase over last January, and the average sale price was $241,191, a 10 percent increase over last January. The median time to sell was 94 days, an increase of 11.9 percent, and the month’s supply of properties was 4.7 months, down from 5 months.

Again, the market looks like it’s leveling off as previously stated. However, we have not hit the busy selling and buying season yet, so the jury’s still out.

I guess after 20 years, I’m a Floridian. After all, if Amazon decided not to move to New York City after the city giving it billions of dollars in credits, who am I to whine? My advice to Island brokers – better check out advertising rates in The New York Times. I think it just might be the right time.

More Castles in the Sand:

A home’s equity is sometimes subjective

Why is the housing market declining?

Selling your home – it should show like a model

Castles in the Sand

A home’s equity is sometimes subjective

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

Are you familiar with the expression, “The happiest days of a boat owner’s life are the day he buys the boat and the day he sells it”? It’s not unlike homeownership. The happiest day is the day you walk into your new home deed in hand and the worst day is the one when your real estate broker tells you it’s not worth what you thought.

Last week we talked about the national real estate market cooling off in terms of the number of sales and selling price. We also are beginning to see some signs of this on Anna Maria Island with an overall leveling off of our recent outstanding market. It’s not necessarily a bad thing in a go-go market to take a pause and attract new buyers into the circle, but first homeowners need to readjust their expectations.

Freddie Mac’s chief economist coined the phrase mental recession, not a real recession only the perception of a recession. The danger of the mental recession is that it challenges your mental equity.

We all know that the definition of equity is the difference between the value of the asset (your home) and the value of the liability (your mortgage). Even though you won’t find mental equity in Webster’s Dictionary, all real estate professionals know exactly what it means. Essentially, it’s the value of a property in the homeowner’s mind and only in his mind. Whereas, the actual value of the property is based on comparable sales, location and the climate of the real estate market at the time. Frequently, these two values can be light years apart. Get the picture?

The point I’m trying to make is that real estate markets are dynamic. They’re always in flux, and buyers and especially sellers need to understand that last year’s values may not be this year’s values. Don’t get too comfortable with the mental equity because it can change in a heartbeat for both good and bad.

If you’re a buyer, Valentine’s Day was last week. Don’t fall in love based on previous sales until you’re sure the market will hold. If you’re a seller, turn the reality check button on in your brain and don’t turn down any offers no matter what your brain is telling you. Mental equity is not your friend; don’t get too cozy with it.

All of that said, we are just starting the busy selling season, which continues until about April or May when visitors and potential new residents feel comfortable enough to make an offer on available properties. And based on recent census numbers, there should be plenty of them. As previously stated, Florida’s population increased by 322,000 residents last year alone and is the second fastest growing state in the country.

However, some of those wanting to relocate to Florida could be faced with a slowing market where they’re coming from, particularly big city areas in the Northeast and Midwest who will be most affected by 2018’s change in federal tax deduction.

Everyone needs to keep their options open and flexible. Don’t allow your mental equity to make you mental and make sure that your first day of homeownership is indeed one of the happiest days of your life.

More Castles in the Sand:

Why is the housing market declining?

Selling your home – it should show like a model

Sunshine State population growth

Castles in the Sand

Why is the housing market declining?

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

It’s a curious situation the national economy is in right now. In spite of the stock market having a fit in December, not only did it make a strong comeback, but the employment statistics have remained strong. So why isn’t the housing market living up to the rest of the economy?

According to the chief economist at Freddie Mac, “We’re in a mental recession,” meaning bad news like the government shutdown, the stock market vulnerability in December, higher interest rates and international financial markets in a flux start to snowball, making buyers nervous. This is especially true for first-time buyers who are nervous to begin with and second home buyers who have the luxury to wait and see.

According to the National Association of Realtors, December was the weakest month for home sales in three years. December 2018 sales fell 6.4 percent from November of 2018, and 10.3 percent from December of 2017. Not unexpected, when the number of sales declines, the sale prices can’t be far behind.  The National Association of Realtors reports the median sale price for an existing home in December grew 2.9 percent from a year earlier, however, it was the smallest increase since March 2012.

Even the top two brokers on Anna Maria report that there were no significant price increases in 2018 and that the market appears to be stabilizing and leveling off in 2019.

Mortgage rates have come down in recent weeks and are now back to about 4.45 percent for a 30-year, fixed-rate mortgage, down from 5 percent two months ago. The Federal Reserve has also sent signals that it is carefully monitoring the interest rates as they relate to housing and the broader economy. This means to me that the rates will likely stay pretty much where they are for a while.

Stabilized interest rates and a slow-down in sale prices are not all bad news, especially for the first-time buyers that the market always needs to keep the ball rolling. One of the very real problems that first-time buyers face is the monthly payment on student debt, which may keep them from qualifying for a home or at least is making them concerned about keeping up payments, even if they do qualify. Student debt is now at $1.5 trillion, exceeding credit card debt and car loans, making a sizeable impact on the economy.

The Federal Reserve Bank indicates that homeownership among people ages 24 to 32 fell 9 percentage points to 36 percent from 45 percent between 2005 and 2014. As a comparison, almost 79 percent of people age 65 and older are homeowners; for ages 35 to 44, 59 percent are homeowners; and of all ages, 64 percent are homeowners. This is unfortunate because we desperately need these young buyers.

The Fed said that although many factors contribute to homeownership, 2 percentage points or about a fifth of the decline was tied directly to student debt. This represents 400,000 buyers who did not make a home purchase because of student debt. The Federal Reserve report finally gives us a better understanding of why the housing recovery has been weaker than other segments of the economy.

A strong real estate market is the driver of the economy in many areas since homeownership involves the purchase of goods and services needed to maintain the property. Hopefully, the country will get out of its mental recession soon, but don’t let that stop you from having a happy Valentine’s Day.

More Castles in the Sand:

Selling your home – it should show like a model

Sunshine State population growth

2019 tax nightmare

Castles in the Sand

Selling your home – it should show like a model

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

Every year around this time I try and remind homeowners what potential buyers are looking for. Even though our market remains brisk, we are on the brink of the busy selling season, which will get in full swing as more and more visitors return to the Island with an eye to purchasing their paradise home.

Let’s start with the old chestnuts of getting your house ready for sale. Since cleanliness is next to you-know-what, every inch of your house needs to be spotless. On an island where there are more sand and salt than the average Northerner sees in a lifetime, it’s always a challenge to get it out of our homes and off our windows. But out it must go; not a speck of sand on the floors and not a grain of salt on any of the glass.

Island living also means that mold grows on any damp surface faster than McDonald’s cranks out Big Macs. Scrutinize every inch of bathrooms, kitchens, grout and outdoor furniture looking for mold or the beginning of mold. Remember mold and dampness smell. You don’t want your home smelling like a high school locker room.

Clear off countertops in the kitchen and bathrooms, especially if you have really nice hard surface ones. Organize and declutter closets, the kid’s toys and the laundry room. If you’re lucky enough to have a garage, clean it out to make room for an actual vehicle, not just bikes, lawnmowers and old paint cans.

You also might consider storing away any collectibles you may have on display, including family photos that could become a distraction to buyers touring your home. The object is to make everything look larger than it might really be and keeping the buyer’s eye on the ball, not your daughter’s wedding.

Make sure all systems like heat and air conditioning and appliances are in working order and there is no peeling paint. When buyers pull up to your home, they want a reason to get out of the car, so give them one. Make sure there’s nice landscaping, the weeds are pulled and walkways cleared. How about another old chestnut, painting the front door a jazzy color. They say red is good luck.

You can’t totally remake your property before sale, but you can keep it as neutral as possible.

A little paint goes a long way, so consider painting some of the walls where needed in a light gray color, which is very much in vogue right now. Even removing some heavy dark furniture will give a feeling of more space, as well as a lighter, more open impression.

You may not be able to create high ceilings overnight, but you can make sure the ceilings don’t have any cobwebs dangling from them. And in a hurricane-prone area like ours, owning a generator that can be passed on to a new owner could be just the right touch.

Finally, anything just a little off about your property could raise a red flag to buyers who may already be guarded during their house hunting experience. Don’t make them think that you’re not a responsible homeowner because you missed something as minor as a cracked bathroom tile or broken doorknob.

If you’re putting your property on the market this season, good luck. Everything is pointing to the Island being busy and the real estate market being equally busy. Let the sun shine through those windows.

More Castles in the Sand:

Sunshine State population growth

2019 tax nightmare

Is a piece better than the whole pie?

Castles in the Sand

Is a piece better than the whole pie?

Written by Louise Bolger on . Posted in Archives.

A very long time ago in the history of writing this column, I discovered fractional ownership as a new and interesting real estate topic. I quickly dropped the subject when I realized it wasn’t something that had caught on in great numbers across the vacation real estate industry. Well, recently there was an extensive piece in The Wall Street Journal about fractional ownership which sparked my interest again, so I took another look.

As all of us who live in Florida, and certainly on Anna Maria Island, know, second homes are the ultimate discretionary purchase. Many people would like to have one but no one really needs one. Therefore, it would appear that fractional ownership arrangements would be the perfect fit for potential second homeowners. But are they and how do they compare to timeshares?

Timeshares and fractional ownerships are very similar in that they can be sold, gifted or inherited, and require annual maintenance fees. Fractional owners receive a real property deed whereas timeshare owners receive a type of deed but specifically for an assigned period of time, usually one or two weeks. In addition, fractional properties are usually organized into residence clubs, which appeal to more upscale buyers with higher prices, nicer amenities and fewer owners than timeshares, making the concept as well as the properties more exclusive. But be careful. The more fractions that are sold, the more they resemble timeshares.

Also, proponents of fractional properties point out that a purchase of a fractional property can be arranged for much longer periods of time, creating more of a second home concept instead of just a vacation getaway. In addition, the case can be made that fractional ownership provides equity benefits with more of the possibility of making a profit when it’s sold, but like all real estate, there are no guarantees. Although timeshares can appreciate in value, depending on the property and location, typically they do not. Of course, conventional financing for both fractional ownerships and timeshares is near to impossible.  Purchases are generally made with cash.

So, who are the buyers of fractional ownership? They are generally people who can afford a vacation home but don’t have the time to use it on an annual basis and just want a winter or summer getaway. Or, as the Wall Street Journal piece pointed out, they may be people who want to spend months hopping from one fractional to another around the globe.

Although there are fractional ownership properties in Florida, I couldn’t find any on Anna Maria Island. Two of the big players in fractional ownership clubs are Timbers Resorts and Elite Destinations. There is also the Luxury Fractional Guide online to check out if anyone is interested in further research, and you should do your research. Since fractional ownership clubs make their money on selling the properties and reselling the properties, it’s important to verify that their maintenance program is well funded and well managed.

The fractional ownership concept makes me a little uneasy, but for owners who want a property in an area with escalating property values, it may be the only way to spend time there for more than just a quick visit. While I was doing my research, I found that Cabo San Lucas, Mexico, had several fractional ownership clubs. It just so happens that I’m headed there at the end of the month. What are the chances of me coming back with a new deeded property? I don’t think so; I want all of the pie.

More Castles in the Sand:

2019 real estate trends

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Castles in the Sand

2019 real estate trends

Written by Louise Bolger on . Posted in Archives.

Every profession has its experts and every expert has their expert advice for the future. Sometimes they’re right, sometimes they’re wrong, and sometimes they wish they’d never gotten out of bed. Have you seen the stock market? Nevertheless, the experts still keep on coming, and for the 2019 real estate market, I found a couple for you.

Forbes.com is a wealth of information about any business venue. It will even tell you the net worth of celebrities – Steven Spielberg, $3.7 billion and Oprah Winfrey, $2.8 billion. But what they are really good at is predicting the future or as it calls it, future trends.

For the 2019 real estate market, it talks a lot about the Millennials, which are the largest segment of buyers. Forty-five percent of new mortgages will be applied for by millennials vs. 17 percent by boomers. In 2020, when the Millennials turn 30, Forbes pushes that buying trend up even further and is predicting a good real estate year. This year, however, Forbes says it will be a slow real estate year which could be good long-term since the demographics (millennials) will support the demand. This is expert talk.

It also feels that first time buyers will be looking at condos and lower end vacation homes.

These properties are less expensive, which will make them, more affordable in view of raising interest rates, again talking about Millennials.

On another note, Forbes is recommending purchasing property in the Bahamas, which after being hit by several hurricanes is just starting to rebuild. Waterfront property there is 10 cents on the dollar compared to waterfront property in Florida and only a 20-minute flight.

Realtor.com has two shocking forecasts. The first one is that mortgage interest rates will hit 5.5 percent by the end of the year, and the second is that the market will remain a sellers’ market. Sellers can glow over this, but the buyers aren’t going to cave in to any price sellers are asking, so sellers are going to have a little tough going.

Not tough going, however, are Manatee County’s November sales statistics taken from the Realtor Association of Sarasota and Manatee’s website.

Single-family homes closed 7.6 percent more properties than last November, and condo’s closed 12.9 percent more. The median sale price (half above and half below) for single-family homes was up 8.5 percent to $313,496 from last November. Condo sales were also up 2.0 percent to $186,500 from last November. The average sale price for single-family homes is up 4.9 percent to $379,982, and the condo average sale price is up 1.4 percent to $255,619. The median time to sell for single family and condos are all between 90 and 95 days, and the month’s supply on the market is staying about four months for all housing sectors.

The big news for November is that our neighbor Sarasota has finally broken into the $300,000 price point for the median sale price, increasing 5.3 percent from last year. Manatee County has achieved this several times this year but this is the first time Sarasota has.

Our numbers are looking good compared to Florida statewide results. The median sale price for single-family homes was $255,000, up 6.3 percent, and the median sale price for condos was $185,000, up 5.1 percent. These numbers are reported by the Florida Realtors Research Department.

Are our future lives being dictated by 30-year-old Millennials? Something tells me yes, they are. As long as they keep the real estate market flowing, it’s OK by me, and that’s my prediction.

More Castles in the Sand:

Red tide, hurricanes and interest rates

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Red tide, hurricanes and interest rates

Written by Louise Bolger on . Posted in Uncategorized.

It’s been a strange year and a few months for real estate. Irma took a toll, although not a devastating one, but enough for us and prospective buyers to sit up and take notice. Then the red tide rolled into town and took its time leaving, with traces still floating around, and then interest rates went up, putting a damper on the housing market nationally and the potential that it could trickle down to us. In spite of, this Anna Maria Island still keeps moving forward with selling prices holding and buyers still looking.

Since everyone in real estate, homeowners and professionals alike, are always interested in the upper end of the market, it’s time to do an analysis of $1 million and over sales and listings for residential properties including condos and vacant land. We’ll take a look at July, August, September and October. The closed property numbers are from the Manatee County Property Appraisers Office and the available or pending properties as of this writing are from realtor.com.

Cortez had two properties close over $1 million; last time this tiny area didn’t have any. The city of Anna Maria had 17 properties $1 million or over close during these months ranging from $1,000,000 to $2,500,000; during the previous analysis, there were nine. The combined cities of Holmes Beach and Bradenton Beach had 14 over $1 million closings during these months, ranging from $1,100,000 to $5,000,000. In the previous analysis, there were 19 sales.

As far as currently on the market or pending, Cortez has five, ranging from $1,099,900 to $1,500,000, which is a waterfront lot. During the previous analysis, there were four properties in this price range. The city of Anna Maria currently has 51 properties over $1 million, ranging from $1,049,000 to $5,200,000. Of these, two are over $3 million, and two are over $4 million. Last time, Anna Maria had 64 properties listed at $1 million or more.

And the combined cities of Holmes Beach and Bradenton Beach have 68 properties currently listed over $1 million, ranging from $1,000,000 to $7,775,000, which is a large waterfront parcel of land. Of these, two are over $3 million, three are $4 million or over and one is over $5 million. Last time these cities had 77 properties available in this price range.

Although not exact, the numbers are fairly consistent. Much of the country is experiencing a slowdown of the real estate market because of the lack of inventory driving up prices but resulting in lower sales. We too see that in our marketplace, but we also have the additional element of a reputation for hurricanes and the persistent red tide, which is getting a lot of media publicity around the country. Now that we’re getting into the busy selling season, we should have a clearer idea of the availability of buyers.

I was on Palm Beach Island for a weekend a few weeks ago, and $1 million properties don’t even exist on that island. But on this Island, we have plenty, and, hopefully, that trend will continue into the new year.

Wishing everyone a peaceful and merry holiday.

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No Christmas gifts for foreign buyers

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No Christmas gifts for foreign buyers

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

Almost a year ago, I wrote a column about the proliferation of buyers from other countries coming into the state of Florida. Florida at that time was the national leader for international buyers at 22 percent of all international buyers in the United States. But there are many foreign countries that either prohibit foreign buyers or levy additional taxes to discourage them. These are a few:

New Zealand, in particular, has taken a hard stance on foreign buyers in an effort to make homes more affordable for its citizens. It recently passed legislation to limit foreign buyers to buying only newly built homes, and only 60 percent of units in new apartment buildings can be owned by foreign buyers.

New Zealand’s neighbor Australia has also increased the tax burden on new homes, introducing a buying tax and raising its stamp tax to 8 percent. This is in addition to annual fees for foreign owners.

Property values in the United Kingdom have been very hot, especially in London in recent years. To help cool off the market, the U.K. has added a 3 percent surcharge on the stamp tax paid by second home buyers and a 15 percent buying tax on all homes bought through a shell company. This was a previous technique frequently used by foreign buyers, which has resulted in prices falling substantially in London.

Hong Kong also has a tax stamp fee of 15 percent for foreign buyers and has extended that to include all second-home buyers as well. And Switzerland, which always has discouraged foreign ownership of property, now requires a permit to purchase property with a limit of 1,500 permits a year. There is an exception for EU buyers who have permanent homes in Switzerland. Even Mexico will technically not allow foreign buyers to purchase property within 31 miles of the coast or 62 miles of the U.S. border. There are, however, ways to get around this by having local banks hold title to the property. But there is still hope for foreign buyers who want to purchase exotic properties. The Maldives in the Indian Ocean and Thailand will be glad to take your money.

To my knowledge, I don’t believe the United States government has placed any restrictions on foreign buyers entering our real estate market. Aside from a tax ID number, foreign buyers do not have to be U.S. citizens, do not need a green card and do not require a special visa. As long as they have the cash or can obtain satisfactory financing, they are pretty much free to buy whatever and where ever they want.

The onus is on the lenders to qualify the buyer’s finances, visas and legal right to be in the country to protect their investment from buyers who suddenly leave the country with the bank becoming responsible for the property. However, almost half of property purchases by foreign nationals are made in cash, 44 percent at last count.

Foreign buyers may be boxed out of purchasing real estate in some countries in an effort to keep their real estate prices from becoming overinflated, harming their own citizens. Fortunately, the United States is a big wealthy country and will not be seriously impacted by an influx of foreign buyers. That said, there are areas of Florida, particularly on the east coast, where foreign buyers have some responsibility in running up property values.

We love real estate buyers no matter where they’re from. Tell Mexico and Australia and Switzerland and all the others to send them to us. We’ll make sure they have a merry Christmas.

More Castles in the Sand:

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Tax overhaul saved one thing

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

It’s the holiday season and time to concentrate on family, friends and good cheer for all. There’s also one more thing that starts working its way into the deeper recesses of our brains in December – taxes.

Last year’s substantial tax overhaul resulted in a lot of people being not too happy, especially property owners. Caps on mortgage interest and local and state property taxes have homeowners and investors holding their breath waiting to see what their 2018 tax returns are going to look like. However, one of the favorite tax breaks for investors was not touched and that’s the 1031 Exchanges.

A 1031 Exchange allows you to exchange or reinvest proceeds from your original property and defer the capital gains on the profits from the sale. The exchange only applies to properties held for business or investment, therefore, your personal and primary residence is not eligible for the benefits of the exchange.

Prior to the tax overhaul properties could be exchanged for like-kind properties, which included all real property including artwork and valuable collectibles. Now, however, that part of the law has been amended to allow for only real estate to be recognized as an exchange.

Although the 1031 Exchange benefits big investors, it also can be an advantage for small investors and second home and vacation homeowners who take the time to establish their property as a rental income producing property. It’s possible to trade up your vacation home to a larger one by converting your second home from personal to business use by renting it for a specific number of days for at least two consecutive years. This is a nice way to defer the capital gains on your vacation property, which typically does not qualify for a capital gains exemption since it’s not your primary home, while still giving you the ability to purchase a larger home for your family.

There are certain criteria you have to meet to qualify for the exchange. You have 45 days from the date of the sale of the old property to identify potential replacement properties. In addition, you must acquire the new property no later than 180 days after the sale. It sounds a little complicated, but individuals use this tax break successfully multiple times and just keep rolling over the capital gains into another property. This can also be used to preserve wealth invested in real estate, which is a little more complicated.

As with any tax questions and changes, you need a competent CPA and/or tax attorney to review your particular situation before undertaking this process. And remember, your primary home is not eligible for an exchange and is subject to and also benefits from a whole different set of IRS regulations. Certainly, I have no way of knowing if 1031 Exchanges are used for investment properties and second homes on Anna Maria Island, but my guess is that the Island and its ever-increasing property values is prime for one of the IRS’s most popular exemptions.

So, while you’re sipping the eggnog and wrapping gifts, start thinking about April 15.  If you plan ahead, Santa may leave you a very substantial gift in your stocking in a couple of years. Now that’s what I call a stocking stuffer.

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