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Thursday, April 28, 2016

Selling Investor Properties: Are Tenants "in place" a Good Marketing Tool?

As a real estate agent, my attitude is simple...tenants are never a marketing tool - ever!  Tenants are people who have rights.

With that said I will also acknowledge good long term tenants can be a real plus when your target buyer is an investor.

I understand the selling process with a tenant involved from experience - as a seller as well as a tenant.

As an owner I have sold one tenant occupied property.  And it worked out very well because the tenant bought it.

As a tenant I have been through the inconvenience of the showing experience.  It was a hassle.  There was the issue of a pet on the property. There was the issue of "my time" on the weekend beings interrupted.  It was a hassle...oops, said that twice.

Yes, I accommodated most reasonable showing requests.

Not unlike my response there are many tenants who will cooperate with the seller within pre-established parameters.  

This is key for sellers.... communicate with your tenants.  I have heard some real estate agents suggest making the tenants part of the "team."   The challenge in this case would be to figure out a way to build support.  People are by nature always wanting to know "what is in it for me?"

At a very minimum I suggest explain to tenants that their lease is not the issue.   In Florida all sales are subject to the terms of the the lease

One other key communication point... advise tenants of your intention to sell before the sign goes up out front!

Selling tenant occupied properties can be a challenge as some  tenants will use the opportunity to make disparaging remarks about the property or even less than ideal marketing reviews about the neighborhood or neighbors.

Sometimes it may very well be to the seller's advantage to incentivize the tenant to go ahead and move before the selling process begins.  While the owner may lose a little rent it may be advantageous to get the property in "show room condition" before buyers walk though the front door.  The lost rental income could very well result in a higher selling price.

There are many very cooperative tenants.  As an owner/seller, treating your tenants with respect will go a a long way to selling your property while it is occupied.

So, are tenants "in place" a good marketing tool?  It depends....

If you are considering buying or selling rental property in Melbourne, Viera or Cocoa Beach, Florida, call or text me at 321-693-3850 if I can help in any way.

Wednesday, April 27, 2016

Baytree National Golf Links Community (Melbourne, Florida) - Homes For Sale/Sold in April 2016

Baytree National Gated Entry
Within the "confines" of the Baytree National Golf Links gates are several  communities.  Most of these sub-areas are differentiated by size and age of the homes.  For this report all subdivisions inside the gates are grouped together.

Currently there are twenty-one homes for sale within the Baytree National community.

Typical Street Scene
 List prices for all homes for sale with Baytree range from $265,00 to $769,000.   Home sizes range from just over 1,700 sq ft to over 4,300 sq ft under air with construction ranging from 1994 to 2005.

Segmented by price there are ten homes for sale between $519,000 and $769,000.  Most of these are larger with over 3,200 sq.ft, tile roofs, private pools and golf course or lake front views.
Typical Baytree House
There are two homes priced in the $260,000 - $270,000 range which are mid-1990s construction with less than 1,800 sq.ft. (one is a foreclosure).
Typical Isle of Baytree House

Priced just above these two listings falls the homes for sale in the Isles of Baytree community which is a separate gated community within Baytree which offers residents a separate clubhouse, community pool as well as landscaping with HOA fees around $548 per quarter.  There are currently three homes for sale within the Isles of Baytree with list prices ranging from $299,00 to $329,900.
Entry to Isle of Baytree

As you leave Isles of Baytree the home prices jump somewhat with only a few in the mid $300,000s before the larger homes (and prices) begin.

There are another eight homes under contract awaiting closing.

What has sold in the Baytree National community?

Over the past six months there have been seventeen homes sold in the Baytree National developments.

Selling prices ranged from $260,000 (in Isles of Baytree) to $795,000 (a5,041 sq.ft. four bedroom six and a half bathroom pool home located at 975 Chatsworth Drive).   All seventeen sales were standard (fair market) sales.

Over the past two months there have been six homes sold with selling prices ranging from $260,000 to $665,000.

Homes sold included:
  • 831 Glen Abbey Way - Located in Isles of Baytree this 2,062 sq.ft. 4/2/2 sold for $260,000
  • 8011 Daventry Drive - With 1,972 sq.ft. this 4/2/2 pool home built in 1998 sold for $357,500.
  • 8932 Kingswood Way -  1996 built 4/3/2 2,580 sq.ft. pool home sold for $415,000.
  • 410 Berwick Way - Also selling for $415,000, a 4/2.5/2 pool home built in 1994.
  • 8242 Old Tramway Drive - 4 bedroom 3 bath pool home built in 2004 sold for $510,000 on April 21, 2016.
  • 965 Chatsworth Drive - 3,772 sq.ft. 4 bedroom 4 bath pool home built in 2001.
The above sales were extracted from the Brevard MLS system and have not been audited for accuracy.

For information on buying a home in the Baytree National communities in Suntree (Melbourne, FL), call or text me at 321-693-3850.  My office is located in the Suntree area near the Baytree National Golf Links.

Tuesday, April 26, 2016

Now May Not Be the Time to Buy a Home

I just finished reading an article espousing the benefits and urgency of buying a home in 2016.   As a Florida real estate broker I can see the benefits quite clearly.
  • Prices are rising so the amount of home one can purchase decreases as time goes by.  
  • Interest rates are at historical lows.  An increase in rates is inevitable and can decrease the amount of home that can be purchased (or at least increase the mortgage payments).
  • Rents have been steadily rising over the past few years so a mortgage payment could be more attractive.  One recently published study says buying a home is 33% cheaper nationally than renting a home.
  • And then is the tax benefit to be gained by paying mortgage interest instead of someone other than your own house payment!
Still, now may not be the right time to buy a home.

Buying a home is a major step that requires long term commitment to ownership.   

Is your lifestyle subject to change in the next year or two?    Could the mortgage be too restrictive in the future as it takes five to seven years to make buying a home a good decision.  Or, if you move away, are you willing to be a landlord or pay some to manage your property

Could there be changes in your family composition (marriage, children)?  What about your career and employment?  Are you stable in your position or eager to move upward at a different location? 

Finally, do you have the funds set aside to manage to closing costs and down payment?  Are you ready to manage the maintenance issues that come with ownership or do you prefer someone else take care of issues and upkeep?

Whether or not the time is right to buy a homes comes down to your personal situation

Sure your lender or a local real estate agent can give you advice but it all comes down to you.

If you decide it is the right time to buy a home, contact a local agent, get your mortgage pre-approval and move forward.

If you are considering buying a home in Melbourne, Florida, please feel free to contact me for help.  Call or text me at 321-693-3850.

Monday, April 25, 2016

Buying Your Florida Home: What Does "As Is" Really Mean?

Many times buyers wonder if they should even consider a house listed for sale "as is" - especially if it states "as is only."

If the buyer asks me I will say it depends on their circumstances and goals.

Besides, there are many many reasons sellers will have their Florida home listed for sale as an "as is " listing.  Sometimes the listing may have problems. Other times its simply the circumstances of the sale which make it more advantageous for the sellers.

But what does "as is" really mean for buyers? 

"As is" very often means there may be problems and, if there are, its now your problem, Mr and Mrs Buyer!  This is especially true with foreclosures where the listing often reads "as is, where is" and should be interpreted as you get what you pay for so beware!

Read "Foreclosure Buyers - Due Diligence is Required!"

Still, here in Florida, just because a buyer gets a house under contract as "as is" does not mean the buyer is giving up their rights and responsibility to perform due diligence.  Even with most offers there will be contingencies to protect you as a buyer

The two key contingencies, in my opinion are the property inspection contingency and the appraisal contingency.  (Cash buyers, consider an appraisal contingency as well.).   The right contingency can allow a buyer to walk away. 

Read "What To Do After Your Offer Is Accepted."

Sometimes "as is" simply means the buyer is just not wanting to make any repairs but may make some concessions.

As an agent I urge sellers who are selling a"as is" to price issues, concerns and needed repairs into the price up front.  If they don't the re-negotiation later may work against them.

Ready to buy a home in Viera, Florida?  Call or text me at 321-693-3850.

Thursday, April 21, 2016

Brevard County, Florida Residential Market Report for March 2016 Compared to March 2015

A quick recap of the Brevard County Residential Real Estate Report for March 2016 compared to March 2015:
  • Closed Sales decreased only 1.0% for March 2016 in which the number of units closed were 906 compared to 915 in March 2015.  There was a decrease in cash sales by 17.0% compared to March 2015.
  • New Pending Sales  decreased 2.2%.
  • New Listings were down 1.0% in March 2016.
  • Median Sales Price for Brevard Single Family homes increased 16.7% to $175,000 compared to a year ago ($150,000).
  • Months Supply of Inventory went down 6.9% at 2.7 months compared to 2.9 months in March 2015.
  • Traditional Sales were 15.4% with a median sales price of $185,000.
  • Foreclosure/REO Sales decreased 51.0% with a median sales price of $112,000.
  • Short Sale Closing were down 50.0% with a median sales price of $157,000.

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