Skip to main content

Tag: Louise Bolger

There are bridges and there are bridges

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

There are a lot of bridges on the coastline of Florida. They serve as an important function to transport vehicles and people to our beautiful beaches and restaurants. However, there is another type of bridge which also serves an important function – a bridge loan.

Bridge loans are short-term loans that can be used to bridge the gap between buying a new home and selling your previ­ous home. For example, you found the home of your dreams, but you need the equity in your current home for the down payment and closing costs in order to go forward and close on your new home.

Bridge loans can be acquired in less time than mortgage loans but aren’t offered by banks or credit unions, they’re usually only offered by specialized lenders

Bridge loans can often be available within 72 hours, as opposed to mortgage loans, which can take 30 to 45 days for approval. They run from six months to three years with a variety of repayment arrangements. You can have a monthly payment, interest-only payment or end with a balloon payment. Bridge loans are also used for investment property when the property is purchased, renovated and flipped or resold for a profit.

Qualifying for a bridge loan is similar to qualifying for a conventional home mortgage. Lenders will check your debt-to-income ratio, the amount of equity in your current home, credit score and income. Having a large percentage of equity and a high credit score are essential to getting approved.

Having an approved bridge loan could make your offer more competitive since there will not be any further mortgage contingencies, practically a guarantee to a seller. It’s also faster than a conventional mortgage, which could be attractive to a seller as well.

The flip side of bridge loans are the higher interest rates, which are beneficial to the lender for short-term loans. Re­member, the higher interest rates and fees are out of pocket money, so be prepared with some extra cash. In addition, you are essentially paying two mortgage fees until you sell your property and are able to close out the bridge loan.

If a bridge loan sounds too risky or you’re worried about qualifying, there are two other ways to pull the equity out of your home. Cash out refinance allows you to borrow against the existing equity in your home by taking out a new mortgage in excess of what you need to close on the new property. Home equity line of credit (HELOC) also lets you borrow against the available equity in your home. Most lenders will also limit the amount you can borrow to 80% of your home’s appraised value. Either way you still need adequate equity in your current home to move forward.

Applying for a bridge loan may be beneficial depending on your financial situation and where you are in the buying and selling process. But make sure to weigh your options and consider alterna­tives like cash out refinance and home equity loans.

Bridge loans are challenging and should be undertaken only by buyers who are fairly confident they can sell their current residence and have the funds to make the bridge loan payments until such time as it can be closed. It’s also important that you have the personality that will sustain the stress that this financial endeavor will likely create. If not, stick to the physical bridges in and around Anna Maria Island; they don’t cost a penny and the views are spectacular.

Big holiday, not so big housing market

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

July Fourth is this week, so fire up the grill and hang up the flags, but go easy on the fireworks. You may not need real fireworks after reading the May sales statistics for Manatee County and the general housing imbalance around the country, but you need to hear about it.

According to Redfin, the U.S. housing market had nearly a half million more sellers than buyers in April. This is the biggest gap on record going back to 2013, comprised primarily of sellers who need to sell for lifestyle reasons or who may be investors who want to pull their money out before prices readjust downward.

Buyers finally have the upper hand in many markets that are turning into buyers’ markets. Concessions are being made and prices are being cut, but not enough to get buyers flooding back into the market. Nevertheless, home prices are still up more than 50% in the past five years and mortgage rates are not moving off an average of 6.5%. Add this to the general economic uncertainty and you’ve got buyers who are scared silly to make a decision. A friend forwarded to me some mortgage information from a SmartAsset study analyzing mortgage rates in Florida. Manatee County’s typical rate was 6.48%, Sarasota’ was 6.91% and Palm Beach 7% to name a few.

Much of the real estate markets are governed by local activity, however, one of the biggest buyers’ markets is the Southeast, where the inventory of homes for sale is above pre-pandemic levels. For Florida, the only positive news is that the Northeast and Midwest have more buyers than sellers, where historically so many of Florida’s buyers relocate from.

Like it or not, here are the May sales statistics published by the Realtor Association of Sarasota and Manatee.

Single family homes closed 1.9% fewer properties in May of this year compared to last year. The median sale price was $478,195, down 8.9%, and the average selling price was $638,855, down 9.9%. The median time to contract was 52 days compared to 45 last year and the new listings were down 6.6%. The available month’s supply of properties was 5.2 months compared to 4.1 months last year.

Condos closed 0.4% more properties this May compared to last year. The median sale price was $313,000, down 13.4%, and the average sale price was $345,549, down 16.2%. The median time to contract was 60 days compared to 56 days last year and new listings were up 12.9%. The month’s supply of available properties was 7.9 months compared to 6.3 months last year. A six-month supply of available properties is considered normal, therefore, 7.9 months is pretty far out of range.

I’m not sure what to say about this month’s report. Perhaps the Realtor Association of Sarasota and Manatee’s press release says it best: “Sarasota and Manatee County shows continued signs of a market in transition. Inventory remains significantly higher that this time last year, the pace of growth has begun to slow compared to previous months. Finally, buyers are gaining negotiating power, while sellers must adjust to a landscape that favors realistic pricing and patience.”

Enjoy the holiday however you choose to celebrate. Most of all be safe during this crazy holiday whether you’re in a car, at the beach or in a boat. Stay positive about the status of the world and our own little piece of it. Eventually, the real estate markets will level off to a more normal one and the world will hopefully settle down.

Time to consider downsizing your home

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

Sometimes it’s just time for a change, and that change can take a lot of different forms – breaking off toxic relationships, getting a new vehicle that isn’t a BMW or Mercedes, or downsizing your living space. We as Americans like space, but enough is enough; we all don’t need to live in 4,000 square feet and most of us can’t afford it, but there are alternatives.

You may not believe it while driving around Anna Maria Island and seeing all the mega-homes being built, but in many regions of the country, including Florida, would-be homeowners are realigning their priorities. Because of high prices, high mortgage rates and a lack of supply, buyers are making concessions and the concession that makes the biggest dent in the cost of a home is size.

Builders are finding that smaller homes are attractive to buyers because they not only cost less to purchase but also reduce the cost to run a home. Heating, air conditioning and even the amount of furniture and accessories you need in a home is reduced.

Resales of single-family homes are also benefiting from the size of a property. Buyers are more willing to sacrifice size if it means finding a home that works within their budget. Even townhomes and semi-attached structures are having a comeback, offering less square footage, a two-car garage and frequently a small yard.

Bottom-line buyers – especially first-time buyers – are getting tired of waiting for interest rates to go down, impacting the amount of home they can afford, and have decided they can be just as happy living in 1,500 square feet as living in 2,000 square feet. The average size of a home has decreased year over year in each quarter since 2022 in the country.

Because of several disasters around the country where owners have lost their homes in the last several years, alternative methods of construction are stepping in. California, Hawaii, Florida and the Carolinas have experienced wildfires, flooding and hurricanes resulting in the loss of homes. Homeowners who have lost a home are finding out that their insurance coverage is not covering the cost to rebuild their home so they’re thinking outside the box and so are businesses.

Modular and prefabricated homes have been around for a long time but are starting to gain favor again. No longer do they have a “trailer” look; instead, they can closely have the same look and feel as the previous home. The homes are built in factories then assembled onsite, saving owners hundreds of thousands in construction costs and deliver­ing the finished production in half the time.

A version of modular homes was offered by Sears Roebuck as kit homes between 1908 and 1942. The pre-cut kit was shipped to customers who either assembled the house themselves or hired a builder to do it. There were 75,000 kit homes sold during this period. I know of one on Pine Avenue but I’m sure there were others on the Island and I had a friend who lived in one on Long Island. Sears was way ahead of the curve when they created the kit house, and they were trailblazers when it came to online merchandising.

Finally, if you really want to have your mind blown, check out companies that use modular construction with 3-D printing. Giant 3-D printers squeeze layers of concrete into the framing for a future home and like magic, the frame of the house is done – no hammers and nails required.

If the future is smaller homes, I’m all for it. Who needs all those bathrooms to clean and guestrooms you may or may not use? But then, my priorities changed several years ago when I sold the BMW – best move I ever made.

Challenges of selling condos

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

Florida is condo heaven. If you’re interested in condo living, Florida offers condos in all price ranges, in all locations and with a variety of amenities and floor plans. The condo selling challenges we’re facing in Florida is both a good and bad thing.

The bad thing is that condo associa­tions are now being held to a standard of disclosure that they previously never had to prove. Many associations now have to pass milestone structural inspections by a qualified contractor and inspector. They need to disclose their financial position and disclose adequate funds in their reserves to meet future necessary repairs.

This is also a good thing. Knowing an association is structurally sound and that it has adequate funding for the future can make units more attractive to potential buyers. Buyers will likely not get scared off by associations that can prove their structural integrity and financial soundness.

In addition, special assessments have become the boogie man of condos in recent years. Some of these assessments have to do with the age of the buildings or repairs mandated by the state, as well as the fact that previous boards neglected to fully fund their reserves. Other assess­ments are for unplanned expenses like storm repairs and increases in insurance.

The best way to handle special assessments that have already been voted on by the condo board or even one that may come up in the near future is to be fully transparent. Hiding the fact that special assessments are looming will not only discredit sellers but will send buyers running. There are no mandates dictating who pays for special assessments. However, sellers need to be prepared to cover any special assess­ments already voted on and leave future assessments as a negotiating point. The idea is to make buyers feel comfortable with their investment.

The Florida condo market is taking a hit on all sides. The median price of a condo in the state was down 9% in April from a year earlier compared to the single-family home market, which had a 3% drop in April per Redfin.

That said, in my opinion, the condo market will return once the state struc­tural mandates are fulfilled and reserves are replenished. Buyers love condo living and, remember, owning a single-family home does not relieve you of repairs, structural expenses and increased insurance costs. The difference is you’re not spreading out the financial shortfall with 50 or 100 other owners, it’s all on you. If you add up dollar to dollar what the cost of single-family homeownership is compared to paying condo HOA fees, you will be surprised how close they are.

Whether you’re selling a condo or single-family home now, more than ever you need to be transparent and disclose everything and anything about the property. This includes any facts or conditions about the property that may have a substantial impact on the value or desirability of the property that may not be visibly obvious.

Any potential claims, court proceed­ings and – as discussed – pending special assessments all need to be disclosed. Disclosure can be in the form of a written disclosure form or a verbal disclosure. I strongly encourage everyone to disclose on one of the disclosure forms available as an additional measure of transpar­ency. You’ll be happy to know that you are not required to disclose if a homicide, suicide or death took place on the property and if in your view the property is haunted, crazy as that sounds.

Like any real estate investment, condos can be good or bad, and like any prop­erty, pricing competitively to the market is the most important thing followed closely by transparency.

Are you tired of homeownership?

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

Everyone who has owned prop­erty – whether it’s a condo or a single-family home or investment property – has had those days when you have no idea why you’re doing this. Isn’t renting easier, less stressful and maybe even less expensive? Well, if you ever thought about renting, you’re probably thinking about it more after last year’s hurricane season. But not so fast.

Renting rather than owning has its own set of positive and negative attributes. Rent­ing gives you the flexibility to move, change jobs or get out of bad weather. Renting is usually less expensive with upfront costs, certainly far below a house downpayment. There is less responsibility relative to main­tenance; usually, landlords make repairs and replace mechanical malfunctions, a fixed payment at least for the term of the lease and no surprise appliance replacement costs or storm damage to repair.

The flip side of the coin is that you’re not building equity for the future by either paying off a mortgage or accumulating appreciation. Depending on your age and lifestyle, this may or may not be an issue. Landlords can raise rent upon the lease renewal to whatever the market will bear. Lack of control as it relates to personaliza­tion or modification of the property is a problem for many people; also, the always unknown of what a landlord has in mind for the future use of the property. There are rent vs. own calculators online if you need hard numbers on a property you’re thinking of renting.

There is also another way to rent rather than own; one way is the rent-to-own option. This arrangement is nothing new and typically is designed to help first-time owners to get a foot in the door of home ownership. Rent-to-own agreements put aside a portion of the buyer’s/renter’s monthly rent payment to use as a down payment on the ultimate purchase of the property.

Another option is the lease/purchase, which obligates the buyer to purchase the home at a pre-negotiation price at the end of the lease, or a lease option at the end of the lease, which allows the buyer the option to purchase if they want. Both lease purchase and lease option contracts have the ability to set aside a portion of the rent for the future transaction. Builders frequently offer the rent-to-own ability for new construction as a way to get people into vacant homes and mitigate the builder’s carrying cost.

These techniques are now also being used by buyers who have adequate funds and ability to purchase a home. Buyers in this category are choosing to rent under one of the rent to own options and hold on to their money for invest­ment purposes. This has become more popular as part of the fallout of increased mortgage rates, making borrowing money more expensive with the hope of reduced rates in the future.

All of these transactions are complicated and may be risky for both renter/buyers and seller/landlords. Legal advice is vital, and every detail of the arrangement needs to be clearly spelled out. Who pays the taxes and insurance, who is responsible for lawn maintenance, is the property furnished and who is responsible for wear and tear on the furniture, I could go on, but the point is the devil is in the details.

So now that we’ve all lived through what we’re hoping was the worst hurricane season ever, do we still want to own or rent? The answer to this question is highly personal and very difficult to decide. I for one am reserving my answer to this question till Nov. 15. Stay safe.

New take on hurricanes

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

I love to write. I didn’t come to writing from anything I learned in “J” school, where I never went, but rather in the school of hard knocks, working in business in New York City. Funny thing about writing, when I look back at the words I put on paper, my reaction is, “Who wrote that?” Sometimes writing is like an out-of-body experience; you know you wrote it but have no memory of doing it.

When I wrote last year’s hurricane column, we were experiencing a down real estate market and the idea of the hurricane season approaching wasn’t making that fact any easier to accept. Based on the April sales statistics in last week’s column, we’re still in a slow market, which may be a serious understatement. It’s been a challeng­ing year for real estate, and we won’t know what happens next until we get into the fall and the buyers and sellers have had a year to forget and relax.

Since real estate sales is such a vital component to the economy as a whole, everyone is holding their breath waiting to see what storms we may be looking at. I have decided not to read any of the predictions and close my eyes and ears every time I hear the Colorado State University forecast as my personal self-preservation tactic. That’s not to say when one gets close, we don’t still all need to prepare.

After last year, if you live on the Island and along the coast, have your evacuation plan in place. Food, medications, first aid kit, flashlights, batteries, radios, cash and some clothing. I remember last year there was a chance the water supply may not be available a few days after the storm so store some drinking water and water for flushing and washing. Last year for the first time, I took my homeowner’s and auto insurance policies when I evacuated and actually looked at them the day after the storm. I’m guessing this year generators will be a hot item to purchase, so if you’re planning on getting one, do it now.

When you leave, secure your prop­erty – lock everything tight – because last year, there was so much damage residents couldn’t get home and there were reports of vandals. Get out or roll down your window and door protections and put away any outdoor furniture or plants that can become airborne. Turn off utilities, particularly gas, and don’t leave your refrigerator and freezer with any raw meat that could damage your refrig­erator if power is off for several days.

Manatee County’s website has extensive information and guidance for after the storm. And remember that the FEMA value of your property now appears on county records along with tons of information going forward if you have damage.

Hurricane Helene was Sept. 24, 2024 and Hurricane Milton was Oct. 5, 2024. These were historic events that we pray won’t repeat themselves. Whatever the predictions are, don’t tell me the stress of anticipation is almost as bad as the actual storm. Florida is a big state, so storms have a very long coastline to choose from when striking.

I’m sure when I reread this column next year, I again won’t believe I wrote these words. If I can stick to my not listening to predictions vow, it will be a miracle.

Insurance rates going down?

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

There’s a lot of reasons not to want to think about insurance. It’s expensive, confusing and boring. However, according to those in the know, Florida insurance rates may be starting to tick down or at least stabilize.

Floridians have faced major increases in their homeowners and automobile insurance premiums in recent years. Florida also ranked as one of the worst states in the country for lawsuit abuse and our courts were flooded by frivolous claims. Our out-of-control litigation rules were a major reason that insurance premiums for both homeowners and automobiles were among the most expensive in the country.

It was so bad in Florida that in 2019 about 8% of all homeowners’ claims filed in the U.S. were filed in Florida. In addition, according to the National Association of Insurance Commissioners, Florida accounted for 76% of all claims that turned into lawsuits that year. Why would any insurance company want to do business in Florida?

The property insurance market was in a crisis and the Florida legislature acted to end frivolous lawsuits and abusive tactics by lawyers, while protecting people with legitimate legal claims. The regulatory authority was enhanced and penalties were imposed on any insurer that failed to pay customers’ claims properly and promptly.

The benefits of these reforms are now kicking in. Florida’s Office of Insurance Regulation announced in February that nearly two-thirds of automobile premiums are declining between 6% and 10.5% this year and more is expected.

Homeowners’ insurance rates are also on the right track. According to S&P Global, Florida premiums only increased 1% on average. This was the lowest rate of increase in the nation and well below the rate of inflation. This bodes well for the future with the hope that further stabilization will make insurance premiums more affordable in the years ahead. Having a healthy insurance market means everything to the value of properties, as well as aiding current homeowners and potential buyers to enter into a more affordable position.

Time to review the April sales statistics for Manatee County published by the Realtor Association of Sarasota and Manatee: Single-family homes closed 1.9% fewer properties this April compared to last. The median sale price was $464,000, down 12.5%, and the average sale price was $618,422, down 13.9%. The median time to contract was 50 days, compared to 44 last year, and the month’s supply of available inventory is 5.2 months, compared to 3.9 months. New listings were up 14.1% and new pending sales were down 3.2%.

Condos closed 1.1% fewer properties this year, the median sale price was $300,220, down 14.8% and the average sale price was $343,558, down 21.1%. The median time to contract was 63 days compared to 44 days last year and the month’s supply of available properties was 8.2 months compared to 6.3 months last year. New pending sales were down 8.3% and new listings were up 8.1.

These numbers are showing a stabilization of the market, meaning the declines are not as significant as they were previously. The Realtor Association still maintains “that the data reflects a market in transition, characterized by a stabilizing inventory, softening prices and a steady sales activity.”

Finally, Florida is setting the groundwork for other states to follow. Georgia and Texas are also considering legislation similar to ours. Whatever helps to improve our real estate market is fine with me, even if it’s boring.

All real estate is local, especially now

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

My favorite real estate expression is “all real estate is local,” which I have used in this space many times. But what exactly does that mean?

Essentially it means that real estate markets are significantly influenced by local factors and conditions, rather than national or global trends. Also, it means that property values, demand and investment potential can vary greatly even within the same city or across the street.

This is important to the value of property because growth, population trends, school districts, amenities and local regulations all impact property values and demand. Relying solely on national or global trends can lead to poor decisions because they don’t capture the nuances of local markets. Therefore, when you read the following national statistics recently appearing in the Wall Street Journal according to Intercontinental Exchange, a financial technology and data company, keep this in mind: The metro areas that had the biggest increase in home prices in April compared to a year ago are:  Bridgeport, Conn., Scranton, Pa., Hartford, Conn., Syracuse, N.Y. and New York, N.Y. These increased ranged from a high of 7.3% to 6.4%.

The biggest decreases were in Lakeland, Fla., Tampa, Fla., Austin, Texas, North Port, Fla. and Cape Coral, Fla. These declines ranged from a high of 7.5% to 2.2%.

The report also compares home prices vs. change in housing inventories. For example, New York’s prices increased 6.4% in April while inventory was down 46% from pre-pandemic levels. This trend continued through the Midwest down through Texas and Florida ending in Cape Coral, Fla with a decline in prices of 7.5% in a year.

Also influencing these numbers is the amount of southern migrating occurring from 2020 to 2024. During that time, the south’s population grew 5.1% with Florida and Texas benefiting the most. Florida’s population increased 8.5% and Texas’ population increased 7.4% during this period, per the Census Bureau.

In response to the increase in population, builders started building in areas of Florida in particular that were farming communities. There are now new home communities going up in west Bradenton and north of the Manatee River in Parrish, inflating the number of properties on the market in Manatee County.

Nationally, the supply of homes for sale is still around 16% below pre-pandemic levels, according to Realtor.com. which is not what Florida is experiencing. Homeowners who locked in low mortgage rates a few years ago are reluctant to sell their homes and take on new mortgages with a higher borrowing cost, and buyers are still waiting for lower interest rates.

The wrap-up on these numbers is that the Northeast and Midwest home prices continue to rise in all major markets. In the South, particularly in Texas and Florida, prices are flat or falling. And in the West, prices are rising in some markets and falling in others.

In addition, the overall U.S housing market is far less active than it was a few years ago when mortgage rates were low and remote work allowed people to move farther from their offices. Again, I would not bet money on any of this. I’m not saying it’s not true only that it can change in a heartbeat. As soon as the snowbirds from all over the country and Canada figure out that Florida’s prices are dropping, and new construction is readily available, they will come back in force looking for a bargain.

Everything in life is dictated by what’s happening in your state, county, and street. All real estate is local; you better believe it.

Tariffs: The great unknown

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

No one likes uncertainty, not stock investors and certainly not homebuyers. Nevertheless, here we are, six months after devastating storms and facing another, what appears to be active hurricane season. Just as homes and psyches are getting back to normal, in rolls the biggest storm of all, tariff policies.

Nationally, buyers started gliding back into the housing market after two years of chronic slow sales. Showings for the week ended April 6 were up 39% from early in the year, outpacing the same period last year per Zillow. This was in spite of mortgage rates not moving off of the mid 6% range. Then comes tariff “reform.”

As it is, we on Florida’s west coast can’t seem to catch a break. Economic anxiety and extreme stock market volatility are destabilizing and confusing threats to the housing market on top of an already nervous housing market fueled by the storms. All of this makes potential buyers rethink their decisions.

A slowing economy raises fears of job security and investment security. If the negative effects of tariffs continue, it could put some pressure on the housing market and 2025 could be the third straight year of lower significant home sales. According to the National Association of Realtors, February pending home sales declined 3.6% from the same month in 2024, which is the weakest year for home sales since 1995.

Keep in mind that lower home sales do not always translate to lower selling prices, but if the trend continues, lowering prices could be a likely result. We as a country have a lot of equity in our homes starting during the pandemic years and not leveling off substantially. Home equity has climbed nearly 80% since early 2020 thanks to the extraordinary rise in house prices. Accord­ing to the Federal Reserve, that was about twice the rise in financial wealth including stocks and bonds as of the end of 2024.

This benefits all homeowners’ buyers and sellers alike. But the difference is that so many homeowners refinanced when the Feds slashed interest rates during the pandemic that nearly three-quarters of households with mortgages now pay 5% or less on their mortgages, giving them very little incentive to sell.

In addition, accruing equity and wealth in your home comes with another set of increasing expenses. Since a large portion of property tax is based on the assessed value of the property, the higher the assess­ment, the higher the taxes. Not all states have a cap on property taxes like Florida has for full-time residents, so if you’re not a full-time Florida resident or if you live in a state where taxes are not capped, you probably have had a large increase in property taxes over the past several years.

Another high financial expense that has increased is the cost of insurance and HOA fees for condos and even some single-family properties. Sometimes insurance goes up because the value of the property is higher, certainly a good thing. HOA fees are also impacted by insurance costs and specifically in Florida, the age of the condo.

And when you finally do sell, be prepared for capital gains tax, which could be a shock to the system if you are fortunate to have a lot of equity. The IRS has not increased the amount you can exclude from capital gains despite the huge amount of value accrued in our homes. It’s still $500,000 for mar­ried couples filing jointly and $250,000 for single filers, less expenses.

Owning a home has always been a sure-fire path to wealth, and I believe it still is and will still be the best investment you’ll ever make. But there are unknowns out there hovering over us and one starts with a big “T.”

Condo ownership challenging

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

If you like the condo lifestyle and you live in Florida, you’ve landed in the right place. But even what seems to be the right place can have challenges, especially in the environment we’re currently living in.

Let’s start with the rights of condo owners. Florida condo law, as outlined in the Florida Condominium Act (Chapter 718 of the Florida Statutes) will explain, in fine print, owner rights as an owner, but for the purpose of this column we’ll hit on some of the key aspects.

As a condo owner, you have exclusive ownership of your unit; remember, when you purchase a condo, you receive a deed just like if you purchase a single-family home. This includes the right to occupy, decorate, renovate, lease or sell your unit. Every condominium association has certain restrictions on these above rights which will be disclosed to a prospective buyer in both the association’s condo docu­ments as well as their rules and regulations. For instance, there could be limitations on types of modifications that can be made and may require board approval for renovations and/or modifications.

Owners have access to common elements such as pools, gyms, docks and clubhouses. Again, all of this is within association guidelines based on hours, noise restrictions and ongoing repair work.

Living in a condo association, you are automatically a member with a voice in the governance of the community. You will be asked to vote on material alterations, elec­tions for the Board of Directors and other significant community decisions. I can’t emphasize enough that becoming active in the community, volunteering on commit­tees and running for a board position is one of the most important things you can do if you want your voice heard.

Florida law ensures that condo owners have the right to inspect the association’s official records. Not all of the financial records can be disclosed in a board meet­ing, therefore, if you want more detailed information, you can ask the board for specific records you want to review.

Since no one is perfect, there may be times when you as an owner feel that rules are not being enforced equally or that there are excessive rules. This is also protected under Florida’s condo law and should be brought to the attention of the Board of Directors.

Certainly, the most important aspect of your rights as an owner is the stability of the association’s finances. This includes increases in fees, the addition of special assessments and a clear justification for fee increases, all of which can be contested by an owner.

One of the reasons to know what your rights are as a condo owner is coming to a head in several states but particularly in Florida. As a result of the Surfside disaster, Florida enacted specific inspec­tion laws relative to the stability of condo buildings that are three stories or higher. Condos need to be inspected by a Florida qualified inspector and if there are any structural repairs required, the association is mandated to make the repairs. In addition, in Florida, condo associations have to prove through their financial records and reserves that they have adequate funds to make any repairs needed.

Condo associations that haven’t prepared for this are facing large assessments and are also putting the ability of buyers to be approved for financing in jeopardy. Fred­die Mac is quietly blacklisting areas of the country or individual associations where mortgages will not be approved. This extends itself to the insurance industry, which could be another obstacle in the way of selling your condo.

A condo is still the most carefree lifestyle and perfectly suited to Florida living. You just need to stay on top of how the association is spending your money, stay involved and understand your rights.

The new real estate reality

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

It’s been six months since Hurricane Milton invaded us and every day we still feel the effects of the storm. Most of us are either continually rebuilding, cleaning up or juggling finances to get our lives back to where they were before the storms.

Last week we talked about buyer and seller remorse, but the deeper emotional issues are losing your home and your possessions. Most people have an emotional attachment to their homes and their community. Seeing disruption or actual loss has a lasting effect. A home is part of a community of friends, family, neighbors and memories.

Adding to the emotional loss is the sudden financial hardship of losing one’s home or experiencing major and costly repairs. Most people invest a huge portion of their net worth into their home and have accrued a great deal of equity, so watching it go literally down the drain leaves many homeowners worrying about their future financial security.

For Island people who have made the decision to move, selling after a major disaster can be challenging at best. These are the sales numbers the Realtor Association of Sarasota and Manatee provided for the two zip codes on Anna Maria as of February:

Zip code 34217, Bradenton Beach and Holmes Beach single-family homes: The median sale price in February was $1,105,000, down 39% from last February. The average sale price was $1,414,583, down 52.4% from last year, and new listings are up 33.3%.

This is the report from The Realtor As­sociation for condos in Bradenton Beach and Holmes Beach. The median sale price was $535,000 this February, down 13.7% from last year and the average sale price was $553,333, down 26.1%. New listings are up 6.7%.

Obviously, the single-family numbers look far worse than the condos, likely because there are so many single-family homes that were not elevated and had se­vere damage selling for reduced numbers compared to last year. The majority of condos are elevated and experienced less damage, at least from flooding.

Anna Maria, zip code 34216, had a median sale price of $1,750,000, down 12.5% this February compared to last year. The average sale price was $1,808,333, down 27.6% from last February. Finally, new listings in Anna Maria are up 31.6%.

Selling your home in the aftermath of a disaster requires patience and a fair amount of creativity. These properties need to be marketed as the future value, not the present value. There is great investment opportunity on the Island and based on the number of visitors in the past month, people still want to vacation here.

Buyers, especially younger buyers, are very much influenced by climate change and the effects that it will have on a barrier island. So, a balance has to be struck when listing the benefits and financial invest­ment available on Anna Maria Island. You can’t hide that we experienced a serious series of storms, and you have to be honest about damage sustained, but here again, we’re looking at future growth.

The effects of the storm, both physically and monetarily, are deeply unsettling. The physical landscape of the community changes and people move away, leaving a constant feeling of loss. It’s important to stay focused on how Anna Maria Island was before the storm and know it will come back right along with property values.

Buyers, sellers, hurricanes – and remorse

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

Remorse is the feeling of regret, second thoughts or disappointment in a decision recently made. When it comes to buying and selling real estate, it’s difficult not to have some level of remorse about the transaction, especially in the situation we’re in now.

Anna Maria Island has always been that special little place different from other coastal areas of Florida. Old Florida was true in Anna Maria, with no high rises, no big box stores and no drive-throughs. Island residents fought to keep it that way and were successful for decades.

The storms that invaded us last fall changed much of that. It took away prop­erty owners’ sense that they were living in a very unique place they loved when they had to make some life-changing difficult decisions. Because of damaged properties and insurance issues, many homeowners were put in the position of having to sell their beloved home and move off the Island, frequently accepting offers that were very discounted.

The seller’s remorse for these homeowners is very real; sadness, regret, anxiety and just plain mad that this happened to them. They not only lost their home but their very special lifestyle and for some, will never get it back. Coupled with the loss of their homes, most homeowners on the Island who experienced serious damage have also experienced a major financial loss. Even when the transac­tion is done, and you know this was the only option for you, it’s easy to still feel like you’ve made a mistake.

Sellers aren’t the only ones feeling remorse these days; buyers who are buying up many of the damaged Island properties are primed to think they, too, may be making a mistake. The high cost of living on a flood- and hurricane-prone Island could be giving even buyers with deep pockets reasons to feel remorse and have them running to higher ground.

Developers who are rushing to buy up properties and turn them into profitable rentals are only looking at their bottom line. They can tolerate the high insurance bills, maintenance issues of living on an Island and threat of storms in return for a big rental payday.

Individual buyers, however, may start to feel remorse buying into a storm zone. Did they make a decision too fast, have they overspent, even though it looked like a good deal, and, in retrospect, are they reconsidering how compatible Island living is for them and their families?

Some buyers wait years until they can afford their special place and then when it presents itself, bam, you’re thinking, “What did I do?” All of these feelings are real and may not actually materialize until the sale is final and there you are living on an Island possibly with homes being rebuilt around you.

It could take buyers years to shake off the feeling of remorse. Eventually, the entire Island will be rebuilt, and small-town life will hopefully be back.

As far as sellers, they’re probably asking themselves, will I ever see those beautiful sunsets again, will I ever be able to walk one block or 10 feet to feel the warmth of the Gulf waters and will I ever live in a place that I think of as special again?

My answer to that is all of what you love about Anna Maria Island is still there, only a short ride over the bridge. Get your Island fix even if you don’t live there anymore; you’ll feel better instantly.

It’s the buyers turn

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

Balance of power is something we usually talk about as it relates to international positioning between powerful nations. Now the phrase is lending itself to the real estate market and the buyers are finally getting the upper hand.

Homebuyers are benefiting from the fading disappearance of bidding wars. Sellers are willing to lower prices and offer incentives. Increased home listings are working to the advantage of buyers with less competition and more negotiating room. And most important of all, sellers are becoming more flexible, accepting offers below the asking price especially for properties that need repairs – like on Anna Maria Island – or proper­ties that are in less desirable areas.

However, all real estate markets are not equal. The National Association of Realtors indicates that homeowners with ultra-low mortgage rates have been reluctant to sell, but that is starting to loosen up as more people decide they can’t keep putting off a move and wait for rates to take a nosedive. The rates are starting to trend under 7% but not enough yet to move the needle and change the real estate market.

Housing inventories are also rising in certain states where properties look overvalued, so buyers are backing off. Because of the migration to the Sunbelt states during the pandemic, property prices in some southern states rose faster than in other parts of the country. In Florida, for instance, the value of the median home increased 64% over the past five years according to Redfin, compared with 42% in Illinois and 17% in New York. As we know, many of our out-of-state residents come from Illinois and New York.

The huge increase in value that Florida has enjoyed is slowing down as migration to Florida has slowed. The state is importing fewer new high wage earners to support the home prices and the insurance costs, putting affordability of home ownership out of balance for many buyers. Nevertheless, Florida is still a popular state and very tax friendly compared to northern states, with insur­ance costs starting to trend downward.

February sales statistics for Manatee County are out, published by the Realtor Association of Sarasota and Manatee:

Single-family homes closed 22.1% more properties since February of last year. The median sale price was $480,000, down 8.6%, and the average sale price was $662,504, down 10%. Median time to contract was 49 days compared to 35 days last year, and the month’s supply of available properties was 4.6 months compared to 3.9 months last year.

Condos closed 7% fewer properties this February compared to last. The median price was $335,990, down 6.1% and the average was $408,238 down 7.5%. Median days to contract was 60 days compared to 47 days last year and the month’s supply of available properties was 8 months compared to 5.6 last year.

The wrap-up on these numbers indicate that sellers are no longer in a competitive market and need to adjust their expectations. Median sale prices are down, it’s taking longer to sell and new listings are going up across all categories.

Homebuyers have the most leverage over sellers in years. In our region, last year’s storms have increased that leverage. Eventually the market will catch up to the number of properties available, so pay attention buyers, this is your window.

It’s the buyers turn

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

Balance of power is something we usually talk about as it relates to international positioning between powerful nations. Now the phrase is lending itself to the real estate market and the buyers are finally getting the upper hand.

Homebuyers are benefiting from the fading disappearance of bidding wars. Sellers are willing to lower prices and offer incentives. Increased home listings are working to the advantage of buyers with less competition and more negotiating room. And most important of all, sellers are becoming more flexible, accepting offers below the asking price especially for properties that need repairs – like on Anna Maria Island – or proper­ties that are in less desirable areas.

However, all real estate markets are not equal. The National Association of Realtors indicates that homeowners with ultra-low mortgage rates have been reluctant to sell, but that is starting to loosen up as more people decide they can’t keep putting off a move and wait for rates to take a nosedive. The rates are starting to trend under 7% but not enough yet to move the needle and change the real estate market.

Housing inventories are also rising in certain states where properties look overvalued, so buyers are backing off. Because of the migration to the Sunbelt states during the pandemic, property prices in some southern states rose faster than in other parts of the country. In Florida, for instance, the value of the median home increased 64% over the past five years according to Redfin, compared with 42% in Illinois and 17% in New York. As we know, many of our out-of-state residents come from Illinois and New York.

The huge increase in value that Florida has enjoyed is slowing down as migration to Florida has slowed. The state is importing fewer new high wage earners to support the home prices and the insurance costs, putting affordability of home ownership out of balance for many buyers. Nevertheless, Florida is still a popular state and very tax friendly compared to northern states, with insur­ance costs starting to trend downward.

February sales statistics for Manatee County are out, published by the Realtor Association of Sarasota and Manatee:

Single-family homes closed 22.1% more properties since February of last year. The median sale price was $480,000, down 8.6%, and the average sale price was $662,504, down 10%. Median time to contract was 49 days compared to 35 days last year, and the month’s supply of available properties was 4.6 months compared to 3.9 months last year.

Condos closed 7% fewer properties this February compared to last. The median price was $335,990, down 6.1% and the average was $408,238 down 7.5%. Median days to contract was 60 days compared to 47 days last year and the month’s supply of available properties was 8 months compared to 5.6 last year.

The wrap-up on these numbers indicate that sellers are no longer in a competitive market and need to adjust their expectations. Median sale prices are down, it’s taking longer to sell and new listings are going up across all categories.

Homebuyers have the most leverage over sellers in years. In our region, last year’s storms have increased that leverage. Eventually the market will catch up to the number of properties available, so pay attention buyers, this is your window.

Tax relief on the beach

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

It’s tax time again and tax time is never fun, but this year could be particularly not fun. In view of the 2024 storms, this tax filing season could be quite a bit different in addition to the normal tax benefits afforded homeowners.

I’m not a licensed CPA or even a tax preparer, so you always need to seek advice from a professional when it comes to finance of any type. I did, however, find a couple of points related specifically to Hurricane Milton. On Oct. 11, 2024, the IRS announced disaster tax relief for 51 counties in Florida.

Affected Florida taxpayers will now have until May 1, 2025, to file various federal tax returns and make certain tax payments. In addition, Hurricane Milton was considered a federal disaster, therefore, personal casualty losses can be deducted to the extent the losses are attributable to a federally declared disaster.

In normal times for the average taxpayer, your home is still the best shelter from taxes. Mortgage interest for a first or second mortgage or home equity loan is a deduction for taxpayers who itemize deductions. This deduction is for your primary home and to a lesser degree for a second home.

Local property taxes can be deducted subject to the SALT (state and local taxes) cap, which is $10,000. However, the cap is very controversial and there is an ongoing battle in Congress to get it reversed. SALT is part of the temporary 2017 tax law that is due to expire at the end of 2025 which could affect taxpayers in all states with high property taxes.

Home office deduction is frequently a gray area for people who do a lot of work from home. The law is if you receive a W-2 from an employer you cannot take the deduction for working from home no matter how much work you do for your employer from your home. The deduction is for individuals who use part of their home exclusively and regularly for business purposes.

There is a long list of expenses you have in running your home that you cannot deduct: Insurance, including title insur­ance; wages you pay for domestic help; depreciation; utilities and home repairs; internet or Wi-Fi access; and homeowners or condominium association fees.

The government does provide certain credits affiliated with energy-efficient home improvements up to $3,200 a year. The credit is for 30% of the cost of the improvement. Insulation, windows and doors qualify as well as heat pumps, water heaters and biomass stoves. In addition, homeowners who add solar, wind or geothermal power generation, solar water heaters or battery storage to their homes can claim a residential clean-energy credit.

The biggest tax savings, however, is when you sell your home, particularly if you have accrued a large amount of appreciation in your property. The gain in value in your property is the difference between the selling price and the adjusted base, which includes what you paid for the house, plus renovations or other capital improvements, which could be a long list.

In addition, the government gives homeowners a home-sale exclusion which further limits your capital gains. The exclusion for single tax filers is $250,000; for married couples filing jointly, it is $500,000. To qualify you must have used the house as a primary residence for at least two of the previous five years.

Good luck with your taxes. Remember to always consult a tax professional, especially this year if you have had home damage. Be happy it only comes once a year.