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Tag: Anna Maria Island real estate

Prepare for hurricane season

Written by Louise Bolger on . Posted in Business, Castles in the Sand, Hurricane Guide, Special Sections.

Call me crazy, but whenever the hurricane predictions are disclosed for the impending hurricane season it seems to always be the highest number of storms EVER. Well, this year’s predictions are again warning of an extremely active hurricane season, so batten down the hatches and tie up the kids.

According to the Colorado State University forecast, which came out on April 4, they are indicating 23 named storms, 11 hurricanes and five major hurricanes with between four and six making landfall. By comparison, a typical year averages about 14 tropical storms with seven turning into hurricanes.

The reason for this is a combination of very warm water in the Atlantic and La Nina, which supports more storms. Warm water gives hurricanes fuel and contributes to a more unstable atmosphere. Ocean temperatures in much of the Atlantic have been setting records for more than a year and scientists have been unable to fully explain why.

At the top of the preparedness list are always non-perishable foods and, although many cans have pull tops, it’s best to buy a manual or battery-operated can opener. Next is bottled water and buy it early because, with the prediction of a storm, the shelves are quickly emptied. Batteries, cash in case the ATMs go down in a bad storm, and a full tank of gas are a must. Battery-operated lights and flashlights with candles as a backup are also a must. Once storms are on the way, it’s too late to purchase storm shutters, but this is something you should consider long before you need them.

Charge up your smartphones and tablets and buy a battery backup. Know where your important papers are like insurance policies, school records, mortgage information, tax returns, photos and any other papers you might need in a hurry if your evacuation is longer than you expect. Also, take prescriptions and information to renew them in case you don’t get home for a while. Outside, remove any objects that can be blown away in heavy wind, furniture, toys, plants and awnings. Secure vessels that can’t be relocated with plenty of fenders and extra lines to accommodate the tides and turn off power to the boat.

Have an evacuation plan in place with either a friend or relative and prepare a list of hotels. Don’t forget the pets, their food and medications. It’s also a good idea to take current pictures and/or videos of the interior and exterior of your property for insurance purposes should you have damage.

The mymanatee.org website has a great deal of detailed information concerning everything I just outlined but in more detail. It’s worth taking the time to read it and implement some of their recommendations.

Finally, if you are in the process of selling or purchasing a new property, remember when storms are in the forecast it is usually not possible to bind an insurance company to cover the new property. This could delay your closing, but hopefully, everyone involved in the transaction will be cooperative.

It’s not all bad news. The hurricane season outlook from the National Oceanic and Atmospheric Administration isn’t due out until May. However, their forecasters are looking at some of the same problematic models. Nevertheless, we are all warned not to focus on these predictions since other factors come into play in how many storms we get and how strong they are.

My job is not to make predictions but to remind you to get your property and your family ready for the worst and hope for the best. Just assume it will be an active season and start stocking those cans and cases of water.

New world of home sales

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

The world is changing so fast with artificial intelligence, electric and self-driving vehicles and instantaneous information on every subject at our fingertips. For professionals who are members of the National Association of Realtors, their world has just been upended.

Last week we reviewed the National Association of Realtors’ landmark settlement regarding the agent commission system. The major conclusion of this settlement is that compensation in the form of commissions will no longer be shown on the multiple listing services. Listing agents can still negotiate commissions through private conversations and written agreements, but these agreements cannot be shown on the multiple listing website.

The disadvantage for sellers is that buyer’s agents do not know what their commission will be immediately and some of them may be reluctant to show the property to potential buyers without this information. Regardless of what many people believe, commissions have always been negotiable between the seller and their agents, the difference now is that this percentage is not obvious to buyers’ agents immediately. In an effort to work with this new ruling, brokers and their agents are looking for new payment models.

Starting in July, sellers won’t need to make an upfront offer for how much they will pay a home buyer’s agent. Sellers and their agents could, however, continue using the selling model that has been in place for generations and share the agreed-upon commission, it just won’t become part of the published listing agreement and will require buyer’s agents to call the listing agent and ask what their share of the commission is, another layer to an already busy job.

Flat fees for service provided might work as a new commission model. Under this approach, buyers would agree to pay their agent directly, but they could still choose to ask the seller to cover this cost. Asking sellers to cover the cost of mortgage points for the buyer has always been a part of the negotiation on a property in addition to other fees or a portion of property taxes, therefore, asking to pay buyers’ brokers is not a stretch for sellers.

Many customers like the flexibility of flat fees or hourly rate models which can significantly lower the fees paid to a buyer’s agent and might also work for selling agents. This would require the buyer or seller to perform more of the work to close out a transaction themselves but save on commissions.

It’s not as easy as it sounds. Paying for advertising, open houses and following up on inspectors, mortgage commitments and title companies is something realtors are accustomed to doing every day. Taking time out of your workday may not look as attractive once you have to make all of the phone calls yourself and the savings in money may not justify the time spent.

The National Association of Realtors provided these statistics: 86% of buyers purchase their home through a real estate agent or broker; 89% would use their agent again or recommend them; 51% found their home on the internet and 29% found their home through an agent; and for sale by owner properties accounted for only 10% of home sales in 2021.

No doubt agents will leave the business rather than deal with the complications of the changes and that’s a good thing. Since COVID there has been an influx of new inexperienced agents to the business. It’s not an easy job and anyone who has done it will understand that. No matter how much the world spins with changes every day, you can’t take away the importance of in-person contact with other humans, and that’s what realtors bring to the table.

Real estate in earthquake mode

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

The day I was scheduled to fly home from my visit to the wild, wild west, the news broke that the National Association of Realtors had settled legal claims relative to real estate commissions. When I finally returned home very early the next morning, I was faced with an avalanche of real estate information which I will attempt to boil down.

In a nutshell, everything about the way we buy and sell homes is in the process of changing. Traditionally, real estate agents’ commissions were paid by the seller out of the proceeds of the sale when the property closes and split between the selling and listing agents. Starting this summer, that long-standing model is being shaken to its core.

The NAR reached a nationwide settlement claiming that the industry conspired to keep agent commissions high. They agreed to abandon longstanding industry rules that have required most home sale listings to include an upfront offer telling buyers’ agents how much they will get paid. As a result, the commissions most home sellers have paid real estate agents for decades, generally between 5% and 6%, among the highest in the world, will be more negotiable. A note here, real estate commissions could be negotiable between the homeowner and the listing agent in the past, however, they always had to be stated on the listing agreement so the buyer’s agent knew what the split was.

Starting in July, most homebuyers will have to sign agreements saying how much their agents will be paid. If sellers don’t want to cover those costs, buyers might have to agree to pay their selling agent. If this arrangement stands, it will be particularly difficult for first-time buyers or buyers who don’t have a surplus of cash to pay agents out of their own pockets.

Most sellers at the outset will opt to continue paying the commission for the buyer’s agent, recognizing they need the buyer’s agent to help with their home sale. It is possible and likely that little will change for buyers and sellers in the immediate future. Sellers are accustomed to including the cost of a buyer’s agent in their sale price, but over time new brokerage business models could emerge as everyone settles into a different reality.

The entire real estate industry is based on the spirit of cooperation between buyer’s agents and seller’s agents. A lot goes on behind the scenes between these two brokers since it’s to their advantage to make the negotiations come together. I would hate to see this new world order create an adversarial relationship between the buyer and seller agents. I do believe that after the dust settles and agents begin to develop methods to work together to their benefit and the benefit of their clients, everyone in the transaction will find a way through it.

Remember that real estate transactions also affect mortgage brokers, title companies, inspectors and closing agents who are carefully watching what’s going on. The paperwork at the beginning will be confusing and may be difficult to explain to the buyers and sellers, but this is the hand the industry has been dealt. Next week, we’ll look at the effect on real estate brokers as a profession and some of the future possibilities.

The day the news broke about the first serious change to the real estate industry in decades happened to be St. Patrick’s Day. I’m still not sure if the industry had the luck of the Irish that day or just a wake-up call to the confusion it left in its wake. To be continued…

Save our homes

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

This column should be titled “Save our Taxes,” since that’s what we’re really talking about. However, saving on property taxes is part of the Save Our Homes benefits and portability transfers are another piece of this law.

In January of 2008, the Florida Legislature passed legislation that allows homeowners the ability to move an existing homestead exemption to a new homestead. If you are moving, you may be able to transfer or “port” all or part of your homestead assessment difference.

To transfer the Save Our Homes Benefit, you must establish a homestead exemption for the new home within three years of Jan. 1 of the year you abandoned or sold the old homestead. You must file the Transfer of Homestead Assessment Difference Form with the homestead exemption application. The amount of your portability will be reflected on your Notice of Proposed Property Taxes that is mailed in mid-August. If you do not qualify for portability, you will be notified by certified mail no later than July 1.

A portability exemption can be used each time you move and establish a new homestead, and it can be applied for if your new homestead is a higher value than your old homestead or if the just value of your new homestead property is less than the just value of your old homestead. The law was enacted in order to free up homeowners to move on from their homestead properties with low taxes and still protect to some degree the amount of taxes they pay.

The calculation is not straightforward and there are caps to consider. If you don’t yet have a property ready to purchase or have already purchased, you will not know for sure what the benefit will be right away. On the Manatee County Property Appraiser website under Exemptions/Portability, you will find a calculator and more information about this benefit. I found it was a challenge to calculate without knowing the exact purchase price and assessed value of the new property; nevertheless, it will give you an idea of the process.

Based on February sales statistics for Manatee County reported by the Realtor Association of Sarasota and Manatee, we are at a balanced market or getting very close to one:

Single-family homes closed 8.7% more properties from last February. The median sale price was $499,990, up 2%, and the average sale price was $722,563, up 13%. Median time to sale was 102 days compared to 88 days last year and there were 53.5% more new listings leaving us with a 4.2 month supply of properties.

Condos closed 0.5% more properties from last February. The median sale price was $349,493, down 5.5%, and the average sale price was $385,521, down 11.5%. Median time to sale was 93 days compared to 67 days last year and there were 28.1% more new listings, leaving us with a 6.2 month supply of available properties. Six months of availability has traditionally been considered a normal market.

Now that the market is adjusting to the benefit of buyers and sellers, utilizing the option of tax portability becomes even more valuable. Save our taxes will also save our homes ultimately, so enjoy another tax benefit Florida offers. You do need to wade through the paperwork, but it’s worth it.

Energize your home

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

When you think of energy you probably think of power used to generate light and heat. But have you ever thought of the type of energy that isn’t physical or chemical, the kind that can’t be seen?

When it comes to improving your home, there are forces beyond updating and repairing. According to energy healers, you need to harmonize the property’s energy and honor previous owners. Using ancient spiritual practices and healing arts unblocking creativity, and creating tranquility and rejuvenation will result in a safer, wealthier and happier home.

This is a lighthearted column for me, but more than a few homeowners and their realtors are taking it very seriously. Across the county, house energy specialists are being hired to reset and elevate the home’s energy, especially if they’re getting it ready for sale or a potential buyer is viewing the property with an eye towards its energy fields.

Some of the healing techniques are a Celtic space-clearing blessing, tarot cards and a drowsing pendulum, something I never heard of until I read it and then I had to look it up. Apparently, the dowsing pendulum is used to observe the motion of a pointer or stick as it changes direction responding to unseen influences. Interesting, I wonder how that would work pointing it at potential buyers coming into your home, if it points up, they’re good if it points down, forget it?

Another popular healing practice is crystal healing, which, according to professional energy healers, is an oversimplification of the power of crystals. Realtors who are always looking for a way to make their homeowners happy are getting on board with crystals positioned around the inside and outside of the home to usher in vibrancy and aliveness. This process could come with steep fees in the thousands, not including the crystals and tarot cards.

I’m having some fun with all of this since my brain is more left-oriented than right, leaving my creative abilities and invisible energy untapped. But what do I know beyond the value of a renovated kitchen and spa tub? I do, however, have some interest and faith in feng shui.

I love the idea of a red entry door; aside from the fact that it looks smashing, it does encourage good energy to come in hopefully along with a good buyer. Red front doors mean good luck, protection, prosperity and the fire energy it represents makes the property stand out while promoting wealth and inspiration.

The other thing about feng shui that appeals to my left brain is following some basic house-selling rules. Declutter – open neat space allows the energy to flow and not get stuck, probably on your toddler’s three-wheeler hanging out in the kitchen. Soft colors, plants and strategic lighting are things realtors emphasize on a regular basis but are also elements of feng shui. The Chinese also like water elements in and around the home – that should be easy on Anna Maria Island – comfortable furniture (no wicker please) and natural textures.

I may not get the whole crystal energy thing but every homeowner needs to find their comfortable environment and how to achieve it. Since I love a lot of things associated with Asia, the food, the furniture and I do play Mahjongg, feng shui fits my sensibility and is acceptable to the left side of my brain.

Energy is powerful. Use it to your advantage.

Declutter, depersonalize, clean

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

After perusing what I like to consider my very organized database of columns, I realized it’s been some time since I wrote about getting your house ready for sale. Since we are dead in the middle of the busy selling season, it may be time for a tune-up.

According to the National Association of Realtors, more than 40% of buyers look at listings online as their first step. Because of this, you need to have excellent and clear pictures of your home done by a professional photographer experienced in real estate listings.

Before the pictures are taken you need to declutter, depersonalize and clean your home within an inch of its life. Out of the three of these, cleaning is by far the most important and the most obvious to buyers when they walk in the front door. Even if you are a good housekeeper or your regular housekeeper does in your opinion a good job, you should consider hiring a company that specializes in deep cleaning. Dust building up in corners and on baseboards, fans – especially high ones – and bits of mold are frequently overlooked when you’re living in a home day to day.

Next is decluttering and packing away excess furniture and things you don’t need for everyday living, including any items overstuffing your closets. Not only will this make your home appear cleaner and more spacious, it will also give you a head start on packing for your move.

Not everyone views clutter through the same eyes. Kitchen countertops cluttered with toasters, air fryers, two kitchen types of coffeemakers, countertop ovens, panini presses and every other type of small appliance we’ve all been guilty of buying and infrequently using should be put away. All of this also applies to bathrooms – hairdryers, electric razors, 10 different types of shampoo and crème rinse is something buyers don’t need to know about.

We all have collectibles and souvenirs from vacations and gifts from family members displayed around our home. Well now is the time to decide that the plastic hula girl statue your son insisted on bringing back from Maui has to go and pack away everything else that you aren’t attached to.

The part of the decluttering process that is the most painful is the pictures. Family photos are wonderful reminders of weddings, vacations and those big special moments in our lives, however, don’t forget this is your life, not a potential buyer’s. Family photos also can become a distraction for buyers touring your home. Everyone is a little curious by nature and they love to stop and look at your daughter’s wedding and your children’s first day of school down through the years.

All of this declutter advice also is important on the outside of your home. Whatever you can do to perk up the curb appeal with flowers, trimmed lawns, fresh paint and pressure washing will be helpful.

It should go without saying that all appliances and systems be in working order along with any booklets about them and the year they were installed.

After you have done everything above, the final cleaning job is to clean the windows. Again, a professional window cleaner will do wonders at least until it rains again. Plan on having him or her on retainer while your home is on the market, especially if you live on the beach.

I think I’m done, at least for the big stuff. The object is to set a stage that will make the buyers feel they can make your home their home where they aren’t distracted by personal items and want to stay awhile. Hopefully, it will be a busy season and you all have successful transactions; good luck.

Winter of the big freeze

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

You should have warmed up from the unusually cold Florida winter. Now the question is, has the housing market unfrozen? The entire country has been gripped in an exceptionally cold and stormy winter, including sections of the south like Texas, Tennessee, Georgia and, of course, Florida. In January, more than 93 million people across the country were under windchill advisories as low temperatures stretched both north and south.

We don’t know yet what effect the cold Florida weather has had on the tourist season; it could work both ways. However, make no mistake about it, weather during the winter in the northern states has a profound effect not only on our tourist market but also on our real estate market.

The success of the Florida real estate market depends to a good degree on the northern markets and their ability to sell their homes. True, falling mortgage rates have encouraged home shopping activity in January, bringing buyers back in the market, but first they must get here, and many of our buyers are frozen in place.

Since last year was the worst year for existing home sales since 1995, anything will look good. It’s predicted that home purchases won’t return to normal levels unless mortgage rates fall further. A rate below 6% is a key level to attract more buyers and, despite the recent increase in activity, we are far from a healthy housing market. A lower mortgage rate will also likely attract current homeowners who want to move up or down but feel frozen, that word again, at their ultra-low mortgage rates.

On Anna Maria Island, the number of available listings compared to those pending are as follows as of this writing:

Anna Maria has 112 properties available and six pending. Listing prices range from a low of $895,000 to a high of $12,000,000.

The combined cities of Bradenton Beach and Holmes Beach have 217 properties available and 40 pending. Listing prices range from $100,000 to $31,750,000.

Cortez has 19 properties available and seven pending. The listing prices range from $595,000 to $1,900,000.

Keep in mind available and pending properties are just a snapshot in time. The figures can change daily and frequently do, nevertheless, it’s still interesting to see the movement of the real estate market.

The above numbers represent properties ranging from building lots, boat slips, mobile homes, condos, single-family homes and duplexes. And it clearly explains what a diverse area we’re living in with a wide range of price points and the choice of lifestyles available.

Listings are up and we’ve been waiting for that to happen so that’s the good news. Let’s hope when the thaw comes, so will the buyers. I’ll leave it to you to interpret these numbers however you like. Typically, the busy selling months are March, April and May before the real buyers go back north, so let’s assume our market is only experiencing a temporary pause.

The country is thawing out and we certainly are too. In our typically strong selling season, the time when lookers turn into buyers is still ahead. After the thaw, the statistics will tell the real story about the effects of the winter of 2024.

Are mortgage rates really going down?

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

Did we ever think this day would arrive? Those in the know kept saying rates will be better next year, and this is finally next year, and by golly, it appears they were right. Since nothing is ever that easy, there are discrepancies in rate predictions but generally the arrow is pointing down.

Forbes is predicting three rate cuts this year, assuming that inflation continues to slow. The National Association of Realtors’ Chief Economist Lawrence Yun says that because high budget deficits and inflation are still not at a comfortable level, mortgage rates will likely be in the 6% to 7% range for most of the year.

The Mortgage Bankers Association is forecasting 6.1% at the end of this year and 5.5% at the end of next year. Bank of America’s head of retail lending Matt Vernon is more cautious. He says rate cuts could breathe new life into the housing market but significant drops in mortgage rates might not happen in the early months of 2024. The Fannie Mae housing forecast is that the 30-year fixed rate mortgage will average 7% in the first quarter of this year and slowly decline over the year, landing at 5.5% in the fourth quarter. There certainly are more opinions but these are some of the top players in the industry and apparently, they all are looking to decline.

As of this writing, the average rates were 7.45% for a 30-year fixed rate and 6.68% for a 15-year fixed rate. Not bad, but we’re not there yet as you can see from the above opinions, however, there are ways to obtain a better rate now.

Boosting your credit score is a surefire way to pay a lower interest rate. Just a few points can help a lot and here are tips on how to achieve this: Make an extra payment on an existing mortgage or on credit card balances, spend less than 30% of the amount of credit offered to you on credit cards and pay off your balance each month in full.

You can also reduce your mortgage rate by paying points upfront on a new mortgage. Do the math and see if out-of-pocket money now to lower your long-term rate works for you. Finally, shop around and don’t take the first offer from a lender you call.

Let’s see what our January sales in Manatee County are, as reported by the Realtor Association of Sarasota and Manatee:

Single-family homes closed 10.9% more properties compared to January of last year. The median sale price was $525,000, up 3.8% and the average sale price was $735,836, up 13.1%. The median time to contract was 35 days this January compared to 32 days last January. New listings were up 32.3% from last January and the month’s supply of available properties was 3.9 months compared to 3.2 months last year.

Condos closed 8.8% more properties compared to January of last year. The median sale price was $357,990, up 3.8%, the same as single-family homes, and the average sale price was $441,573, up 12.6%. The median time to contract was 47 days this January compared to 26 last January. New listings were up 37.9%, and the monthly supply of available properties was 5.6 months compared to 3.2 months.

The increase in listings we’re seeing points to a more balanced market that favors buyers, along with the interest rate arrows pointing down. The weather arrows, however, are starting to point up, so go to the beach and let the real estate market find its own level.

In love with luxury

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

Happy Valentine’s Day! Every year this day is put aside for the lovers of the world and the greeting card companies. But this year, deep-pocket lovers have even more to be in love with, since luxury real estate has a new benchmark of an outrageous $100 million.

Granted, this number isn’t for everyone. In fact, only 5% of the overall housing market is defined as luxury, but we can all dream, can’t we? Based on how quickly Anna Maria properties have increased in value over the past three years, why shouldn’t $100 million be the new norm for a narrow percentage of the population?

According to The Wall Street Journal, since 2020, at least 24 homes nationwide have traded for $100 million and up. Florida has had a dramatic increase in nine-figure transactions in recent years. Since 2020, three homes over $100 million have changed hands in New York City compared with six in and around Palm Beach. Tampa is also benefiting from the ultrarich due to the lack of available luxury properties in the Miami area. Tampa’s sales have been boosted by 35.8% in the luxury market during the third quarter of 2023 compared with the same period last year, bringing in buyers who were disappointed with the availability of high-end homes on the east coast of Florida.

In 2023, there was a record set for a sale in Florida of $170 million. A broker selling high-end properties in Palm Beach said there are more billionaires than there are oceanfront estates to sell them. Don’t get too comfortable with the $100 million benchmark, $200 million is waiting in the wings as the number of billionaires around the world grows. There were 3,194 billionaires in 2023, up from 2,170 in 2013, according to the wealth research firm Wealth X.

The ultra-rich aren’t much different from any buyer. Not comfortable with the higher interest rates, especially for jumbo loans, they’re using cash to buy their estates. These cash buyers are propping up the overall real estate market, shifting from a downturn in late 2021. According to Redfin, the median luxury sale price during the third quarter of 2023 rose 9% year-over-year to $1.1 million, almost three times the annual jump for nonluxury homes, which rose only 3.3% during the same period. The median price is the mid-point of sale prices; half of the sales are above and half are below.

Redfin also reports that 42.5% of luxury buyers paid cash during the third quarter of 2023 compared to 34.6% during the same period the previous year. In the third quarter of 2023, only 28% of nonluxury homes sold for cash. In addition, inventory of luxury homes rose 2.9% during the third quarter of 2023 compared to a decline of 20.8% for nonluxury homes nationwide.

If there’s a lesson to be learned here, it’s that wealthy people watch their money the same as the rest of us and use cash if the numbers make sense. It also means that it’s far better to be rich and have the option of an all-cash offer on a property.

Be careful, the ultrarich will be coming for your home when the inventory of appropriate billionaire estates runs out, and Anna Maria Island is prime for their next stop. Nevertheless, the Gulf of Mexico that we all love is the same whether your home is a cottage for $1 million or a sprawling estate for $100 million. Luxury is in the eye of the beholder.

Condominium disclosures a different animal

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

There are loads of different animal species in the world and although some are part of the same group, like mammals, they still have differences within their group. This is the same with real estate. Family homes are one subset of the real estate group and condominiums are quite another.

Last week we talked about stigmatized properties and when and if disclosing certain information to a potential buyer is critical. Now we’ll talk about all the other typical elements of selling a condominium property that may require disclosure.

The seller’s property disclosure form outlines and questions many areas of the property. For example, condition and brand of appliances, water heaters, heating and air conditioning systems, anything permanently affixed to doors and windows like mirrors, window hardware, mounted speakers, water softener, pool and hot tub condition and many more. In addition, the seller needs to disclose any ongoing plumbing issues, roof leaks, water intrusion and wood-destroying organisms.

Homeowners’ associations have additional restrictions that must be disclosed, primarily the fees and assessments and if these items are up to date. Potential buyers will be provided with a copy of the current Declaration of Condominium and Articles of Incorporation. Buyers have three business days from the date the documents were delivered to review them and cancel the transaction if necessary.

Whether you sign a property disclosure form or not, the seller is still responsible for disclosing all items contained within the disclosure form. Since condominiums are a complex entity with a board of directors, there are discussions at board meetings that might not become a change for several months. This could involve special assessments, use-of-property rules or leasing regulations for the property.

If one of these is imposed before the effective date of the contract for sale, then of course any change must be disclosed to the buyer. However, if there is a discussion at a board meeting, a mailing, an agenda item, a note in the board meeting minutes, or even a discussion by a board member that involves a future assessment or a future material change, the best course of action is to disclose the possibility. As an additional step, researching the previous 12 months of meeting notes adds another layer of protection for the seller. By being as transparent as possible, the seller eliminates any possibility that a buyer could seek legal recourse against the seller for a post-closing assessment or material change.

While a seller’s property disclosure form is not required under Florida law, Florida does require sellers and their realtors to disclose any significant property defects that may not be easily visible to the buyer. Buyers still have the responsibility to have the property inspected.

Disclosure is a thorny thing to maneuver through when selling since there are no perfect properties. In my opinion, the best thing is always to disclose. That said, as I’ve stated many times in this space, I am not an attorney so if there is a question in your mind about disclosing, an attorney would be your best source of confirmation.

Think of selling a condominium as a subset of the real estate animal world, understand what’s unique about it and how to protect yourself in the wild real estate kingdom.

Disclosure vital in ‘stigmatized’ property sale

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

You may think in the land of sunshine, surf and sand there can be nothing defined as stigmatized. Maybe not, since the word can mean different things to different buyers.

The National Association of Realtors refers to “stigmatized property” as a property that has been psychologically impacted by an event occurring on the property, even where there was no physical harm to the property.

The typical property that is considered stigmatized by events occurring there is one where a crime occurred. A violent crime is a problem for both buyers and sellers. Buyers may not feel comfortable buying the home since they might be uncomfortable living in a property with a violent history. Because of this, sellers may face the possibility of an adjustment to their price or a renovation to remove any reminders of the event. Two infamous stigmatized properties are the house in Fall River, Massachusetts where Lizzie Bordon is said to have murdered her father and stepmother in 1892. The Borden house has been turned into a tourist attraction for those with a macabre interest. And, of course, the most well-known murder home in the country is where actress Sharon Tate and four others were murdered by the Manson Family cult in 1969. The Los Angeles house was ultimately demolished and a new home with a different address was built in its place.

A price adjustment can depend on whether the property has any notoriety attached to the violent act, especially if the event was reported in the newspapers with details and police involvement. A death on the property, whether natural or suicide, is less of an issue to most buyers. Nevertheless, in the real estate market, we’re experiencing a shortage of available properties. Buyers may be willing to overlook many negatives, especially if the pricing is favorable.

Another potential problem for sellers is not necessarily a property stigmatized because of a death or violent act, but because it is out of the norm for the region. For example, something quirky about the property, whether it’s construction or decorating that can’t be easily removed.

One-of-a-kind architectural properties not compatible with everyday living, actual castles, or castle-like construction, and caves built into the side of a mountain are all examples of stigmatized properties. The problem here is the narrow market for unusual properties and the impact that may have on their value.

The National Association of Realtors goes on to say that selling a property with a reputation may be difficult. In Florida, state laws do not oblige a seller to reveal extraordinary occurrences such as a crime, suicide or unnatural death that occurred on the property or even cases where there are reported hauntings.

However, sellers and their agents would be advised to disclose all potential psychological negatives about the property. Hauntings might be a stretch to disclose but certainly, deaths of any kind could come back to haunt the seller if withheld.

That said, there are certain disease-related negatives that buyers may want to know about, like AIDS and COVID-19. This is a very gray area and may be considered a protected class and not able to be disclosed. This type of situation requires careful consideration and legal input if you are an owner getting ready to sell a similar property.

Like all discussions about disclosure, whether it’s water pipes or death, always best to be cautious and disclose. Grandma’s ghost and nasty sharks in Tampa Bay may be exceptions.

Changing tides

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

Every day I watch the tides change. Sometimes they’re low, sometimes they’re high, and every day is different. You could say almost the same thing about mortgage interest rates, but the tides for rates are starting to get lower.

Mortgage rates are ringing in the new year much lower than their near 8% peak this past fall. The 30-year fixed rate mortgage has decreased for multiple weeks with a slight uptick. However, the overall trajectory of mortgage interest rates in 2024 is expected to decrease according to the National Association of Realtors.

While mortgage interest rates ease there will be weekly shifts in the average rate, however, the National Association of Realtors is predicting that the 30-year fixed rate mortgage will average 6.3% in 2024. Between late October and mid-December 2023, the 30-year fixed rate mortgage decreased by more than a percentage point. In real money, the difference between a 6.62% rate and a 7.12% rate is $173 monthly on a $400,000 loan, enough of a difference for some buyers to qualify for a home or a better home. Lower mortgage rates are certainly welcome and will make news, but the problems of dealing with the challenges of low inventory and high home prices will not change quickly on a national basis and may continue to rise. Buyers are more optimistic but are still facing a lack of properties that are being held onto by owners with ultra-low mortgage rates.

End of year 2023 sales and December sales for Manatee County are both looking better than the national numbers. Let’s see what those statistics look like reported by the National Association of Realtors and the Realtor Association of Sarasota and Manatee.

Nationally, sales of previously owned homes dropped to the lowest in 28 years, down 19%. Manatee County single-family sales were up 7.3% and sales of condos were down 0.8%. The single-family median selling price for Manatee County in 2023 was down 2.1%, but the median selling price for condos was up 5%.

The December sales compared to December 2022 nationally for previously owned homes fell 6.2%. Manatee County’s single-family closed home sales were up 13.6% from December 2022 and the median sale price was $499,900, down 1.4%. Condos closed 25.4% fewer in December 2023 compared to the previous year, and the median sale price was $350,000, up 1.6% from December 2022.

The month’s supply for both single-family and condos is up. Single-family homes have a 3.3-month supply of properties available and condos have a 4.6-month supply of properties available.

Our area continues to outpace the national market. Manatee County appears to be stabilizing with more inventory available and is pointing to a good upcoming sales season, however, what happens overall in the country can still affect Florida.

We’re all hoping for a good year since the tide of real estate has an overall effect on the economy. The number of properties sold impacts the furniture business, remodeling companies and the sale of everything from paint to lawnmowers. The jobs market is also closely tied to the real estate market, not only in retail but for real estate companies and their employees.

The owner of the first real estate company I worked for once said, “If you’re gone for a week, the entire real estate market is different when you return.” That is essentially true. Properties sell, others are listed and interest rates change. The ebb and flow dictate the marketplace and always will.

New world order: Renting

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

Like fashion, real estate goes in and out of vogue. What was all the rage in one decade can be out the next. Well, now the real estate reset is homeownership.

My parents grew up in a big city that, not unlike other big cities, had more renters than owners. The suburbs didn’t exist and most people either lived in the “city” or the country. As we all know, after World War II, homes were built creating suburbs adjacent to big cities and for the first time, middle-class people could buy a home near where they worked.

We’re seeing the beginning of a new trend and Americans who would traditionally be homeowners have become long-term renters, many of whom have made this choice as a lifestyle change.

For decades renting was only a steppingstone for the upper and middle class before it was time to buy. Owning a home was always considered by most families their major asset and they depended on building equity in that home. But what we’re starting to see now are high-income families and seniors who aren’t ready for retirement communities but don’t want the responsibility of home ownership opting for renting.

These new American renters are looking for luxury and services including concierge services and amenities. They’re choosing to invest their money or spend it on vacations and their children’s education. Benefiting from tax breaks and capital gains exclusions no longer holds the same appeal. Investment portfolios are being reworked to invest in tax-free products and municipal bonds without a thought of building equity in homes.

About 64% of people in the U.S are homeowners compared with about 89% of people in China and 87% in India. These numbers set me on my heels. Didn’t we invent middle-class home ownership and the American dream?

Like so many other changes in our lives, COVID-19 is the pandemic that keeps on giving. The effect on the real estate market is significant. Interest rates went up, making mortgages unappealing to buyers even if they could afford the higher rates. The lack of inventory discouraged them even more and the mobility of work and living arrangements played into the new world order we’re starting to see. Of course, the big losers here are the lower-income renters who are being hit with increases in rental fees and a lack of available properties to rent.

Entire single-family home rental subdivisions, build-to-rent, are being constructed, marketing to high-earning families and seniors. This is no longer a transition for people, it is a lifestyle choice and likely permanent. In the state of Florida, I found build-to-rent projects in both Charlotte and Lee counties, Jacksonville and Port St. Lucie. In 2022, 14,500 of these communities were constructed around the country. One report said there are now 44,700 under construction and another report by an online firm Yardi says that number is 84,459. Either way, we are seeing a significant trend.

None of this will be affecting Anna Maria Island, which always moves to its own drummer. However, the trend in lifestyle with fewer homeowners and more renters could change how home investors on the Island view their investments. You never know what will change the real estate market. Who could have predicted what has happened in the last three to four years?

I hate to sound like a senior citizen, which I am, who is stuck in a time capsule, but with Americans becoming more and more self-centered, the appeal of community and homeownership is being threatened. Wouldn’t Mom and Dad be shocked?

The heat is on

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

The U.S. Census Bureau has released its population statistics for the year 2022 to 2023. All I can say is the heat is on in the South.

The takeaway here is that Texas and Florida’s population grew by a much larger number than any other state in the country. By now, it’s commonly accepted that the COVID-19 pandemic changed the way people live and do their jobs. Remote work has allowed many in the home labor force to relocate to more affordable living with better weather and a sense of security and freedom. This defined the state of Florida before incoming COVID escapees pushed up property values, which are only now starting to stabilize.

So, let’s dig into the actual numbers of the top three on the U.S. Census Bureau’s list of states with the highest growth.

The population of Texas on July 1, 2022 was 30,029,848. The population on July 1, 2023, was 30,503,301, an increase of 473,453 or 1.6%.

Florida, coming in second, had a population on July 1, 2022 of 22,245,521, increasing to 22,610,726 on July 1, 2023, an increase of 365,205 or 1.6%, same as Texas.

Third on the list is North Carolina, which on July 1, 2022 had a population of 10,695,965 and on July 1, 2023 had a population of 10,835,491, a growth of 139,526 or 1.3%.

The five states with the highest populations are California, Texas, Florida, New York and Pennsylvania. However, only Texas and Florida are in the top 10 of growth between 2022 and 2023. The other three all lost population during the same timeframe, with California being the biggest loser of 2023. Remember that population growth or decline has everything to do with real estate values.

Another survey by Bankrate.com analyzes the hottest metro areas in the country. Here they are in order: Gainesville, Georgia; Knoxville, Tennessee; Cape Coral-Fort Myers, Florida; Northport-Sarasota-Bradenton, Florida and Charlotte, North Carolina.

The Sarasota metro area, which also appears on the Best Places to Live list, ranks second nationally in price appreciation and 12th in population growth, but 206th in active listings.

The Fort Myers metro area ranked fifth in price appreciation and eighth in population growth, also with a lack of available listings. They too appear on one of the best places to live lists. These two South Florida regions are closely linked, sharing the same quality of life appealing to people relocating to the Sunshine State.

Bankrate also analyzed the five hottest large metro areas, placing Tampa at number three and Orlando at number five. This, among other area studies, will explain why the South added 1.4 million residents, accounting for 87% of the nation’s growth this year according to the Census Bureau.

The Census Bureau’s numbers aren’t perfect. They include everyone living within the U.S. except short-term visitors, but the number of immigrants without legal status is difficult to accurately count. The estimates are based on birth and death certificates, IRS and Medicare records and the American Community Survey. In addition, the Census Bureau released projections showing that the population is expected to continue growing slowly to approximately 2080.

You may have a love/hate feeling about our increase in population. You love the influx because they keep the property values moving up, expand the tax base and are responsible for the many new shops and restaurants in the area. But it comes with the price of increased traffic, especially getting to our outstanding beaches.

If you’re still worried about property values, remember housing density increases the price of homes, and we’ve got the density, good or bad. What we don’t have is the snow.

Happy new real estate year

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

Despite homeownership being a pipe dream for many Americans, there is good news on the horizon. If you’re a first-time buyer and are still stuck on the sidelines, this may be the time to get started.

One-third of buyers in 2023 were first-time home buyers, below the historical average of 38%, according to the National Association of Realtors. In addition, the median age of first-time buyers was 35 years old. It is now less affordable than at any time in recent history to buy a home, and that isn’t changing any time soon – except for one interesting point.

When the Federal Reserve started raising rates aggressively two years ago to curb inflation, mortgage rates went up right along with all the other rates for borrowing money. Well, a funny thing happened on the way to 2024; rates started going down. The Federal Reserve stopped raising rates during the last several meetings, the stock market started going up and mortgage rates started heading to 7%. As of this writing, according to Forbes, the rate for a 30-year fixed rate mortgage was 7.26% and the rate for a 15-year fixed rate mortgage was 6.34%. Also, the Federal Reserve signaled it may cut interest rates next year and possibly have multiple rate cuts.

This may not help the housing shortage that has kept asking prices so high, but for those who can finally find a home, the carrying charges are starting to look more affordable, allowing more first-time buyers to qualify for financing. However, Gen Z and Millennials, the primary buyers of first-time homes, will continue to be facing a limited supply of single-family properties. This will put pressure on prices to stay elevated unless or until supply catches up.

Locally, there is more positive news. WalletHub.com, an online company that analyzes market trends, has placed Tampa as the best place to retire. In fact, their analysis places the five top best places to retire as Tampa, Scottsdale, Arizona, Fort Lauderdale, Orlando and Miami, four out of the top five in the state of Florida.

Just to be fair, U.S. News & World Report placed Tampa as #4 in their analysis as the best place to retire, moving up from #6. Both surveys are based on affordability, quality of life and health care.

And very close to home, imagine my surprise when about a month ago I opened the second page of the Wall Street Journal and found Cortez, Florida as the dateline in a good size news story.

The story was about the Hunters Point new construction on Cortez Road just east of the Cortez Bridge. Hunters Point single-family homes are all energy-efficient homes, explained by the developer as the first “net zero” single-family home development in the country. This means that the homes generate at least as much energy as they consume.

The homes have solar panels and a battery system to keep the power on even if the power grid experiences outages. They are also built with flood vents to accommodate rising water and living space that is about 16 feet above sea level. Hunters Point’s goal is to fight both the cause of climate change and carbon emissions while protecting their properties during major storm events.

It looks like little Cortez made the big time, and you can too if you start the new year with an optimistic outlook. In the words of Mark Twain, “The secret of getting ahead is getting started.” Happy New Year!