Real Estate Experts

In the Real estate industry just like a lot of other industries some people can become a Real Estate expert just by proclaiming that they are the expert. Their opinion will apply to every situation because they are the expert.

A few months back I saw a printed ad from an expert that shouted “We are at the bottom, it is a great time for buyers” now is this fact or an opinion. In my opinion it would have to be an opinion since we are still seeing more price reductions than new listings. As always some properties are priced at the bottom and some properties are not there. Some of these properties will never be at the bottom. Now the bottom is some line in the sand that some expert will tell me when we get there. I can give you a pretty accurate market value but that figure is still missing a critical input.

Listening

The missing critical input is of course the buyer or seller’s motivation and needs.

Listening is one of the lost arts in America today. Some experts are capable of hearing their own voices but not the sound of what is coming back. They sometimes miss the critical input. The reasons for buying are always different for each buyer, the reasons for selling is always different for all sellers.

If you are retiring and you know what area you want to retire to and what you desire in a property then you are not as concerned with the price as someone who is only planning on residing in the property for a few years and then moving up. If you are concerned with what school you want your kids to attend and are willing to relocate to achieve this then the price may not be the ultimate factor to base your decision on whether to buy or not to buy the property. If you have a 2 year job commitment then price should be very important to you and your agent.

Some sellers are in a very good position still today in what they paid for their home and what the market value is today. There are some sellers who are stressed to the max on the amount of their mortgage due to adjustable rates, no interest loans due or change in their income, these sellers need immediate help with their situation and could account for short sale or foreclosure. Some sellers are at a mindset that they will not consider a short sale or foreclosure because they signed their name to the mortgage; these sellers need the experts to tell them truthfully if they can sell without bringing non-existent money to the table at closing.

The big difference is listening to each and every person as a person who has their own needs and motivation.

“Are those turnips on the side of your head?”

Thank you

Jim Bagwell

Condominium Governance Form

I seem to have neglected the condo market in both Merritt Island and Viera. Effective in Jan of 09 if you write a contract to purchase a condo you should be given a copy of the “Condominium Governance Form” this form tells you about the owner’s rights, voting procedure, board procedure and etc. Ask your agent if they do not provide you with this form.

With the mortgage rates at the lowest point in 30 years if you plan on moving to our area,
This could be a good time to look. Even if you are looking for a winter place, winter golfing residence or if you have a student in this area the buys on the table are hard to ignore.

You can still spend as much as you desire to be on the water or for a couple of million you can have various penthouses with fantastic views of the Indian River.

A couple of my favorite condos on the market are as follows:

A 2 bedroom 2 bath unit 1122 sq ft located on the Rockledge Country Club is in foreclosure and listed at $62,900.

A 3 bedroom 2 bath unit 1376 sq ft located in Viera very close to the Viera East golf course is now listed in foreclosure at $69,900.

There is also a never lived in foreclosure on the water in Merritt Island with 2122 sq ft, 3 bedrooms 2 baths beautiful views and listed at $274,900.

I hope you all have a happy and very prosperous 2009!

Jim Bagwell

"Computerized"

I was talking with a friend the other day about the state of Real Estate in our area. It is no secret that many large, medium and small companies have closed their doors. Other companies have found that using computerized programs can cut their costs. These programs include scheduling showings, agent call backs, answering phones on the weekends and many other tasks.

Here at Walker Bagwell Properties we have not cut services nor have we resorted to the computer to cut costs. We started this company with the notion that if there is one thing we excel at it would be customer service. We will continue that business model and it will always serve us and make us feel we are worthy to serve the public.

I have spoke before about the fact that most of our agents are in the business for the people. If a computer schedules your showing then you can’t give the important reasons that would make the property worthwhile to you. In my humble opinion the agent who is well versed on the market is the most valuable asset in the art of a deal...

Buying or selling Real Estate will end up being personal so do not sell yourself short with inferior service. You are in charge of the transaction!

Jim Bagwell

Distressed Property versus Distressed Prices

With a lot of talk going on concerning short sales and a lot more coming up in 2009, I have noticed that the majority of people think this happens in the low to middle income areas. We are seeing more upscale homes coming on the market and selling by foreclosure and short sales.

GOLF

One of my favorite courses in our area is “The Duran” in the Viera section. There are some very nice upscale homes on the course. These homes were custom built and range from 3000 to 7000 sq ft. Some of the builders include the Toll Brothers and designs include Christopher Burton and Arthur Rutenberg.

At the present time there are 6 active listings in this section. These homes are priced from $599,000 to $1,650,000 of these listings 3 are short sales.

There have been 3 closings in this section this year. 1st home was listed at $1,199,000 and sold for $915,000 short sale, 2nd home listed at $1,350,000 and sold for $1,150,000 again a short sale, finally a home listed for $1,299,000 and sold for $1,250,000.

Just food for thought, that the market has affected all buyers and sellers regardless of price range and the bargains are not always distressed properties only distressed prices.

Jim Bagwell

Cocoa Beach Turkey Day

Thanksgiving day the headline on the front page of Florida Today was “Home prices allow more buyer’s in the game”. As you know I usually am very skeptical of most stories in print since they are usually skewed to fit the story.

During the past 2 weeks some sold homes were extremely good deals for the buyers and I would have to agree that buyers are able to get much more home for the dollar. The area will always dictate the prices to a certain degree, for example the prices on beachside condos are still remaining quite high although more good deals on beachside homes are starting to appear.

In Merritt Island there were several very good deals closed for the buyers and for the sellers depending on their circumstances.

A home built in 1965 with 4 bedrooms, 2 baths and a 2 car garage was listed at $139,900 sold for $139,500. Days on the market was an incredible 29 days.

A foreclosed home on the golf course in “The Savannahs area of Merritt Island” was originally listed at $304,900 after foreclosure it was listed at $199,900 and sold for $160,000. Pool home on the golf course with pool, 4 bedrooms, 2 ½ baths, 2477 sq ft.

The good deals in Suntree/Viera are still so numerous it is becoming difficult to quantify. For the retiring person or the1st time buyer I will highly recommend this area. Even if you have very specific wants and needs in a home it is becoming easier to find the home of your dreams.

Have a great Thanksgiving weekend!

Shuttle

We took this picture last night during an open house at the historical home we have listed on the Indian River in Titusville. It is amazing that during the early 1900’s people used to gather in the back yard to watch riverboats now they gather to watch the shuttle.

Recently my wife asked all the agents in our office to respond on what they liked about Real Estate, almost unanimously all our agents said it was meeting people. One agent likes the paperwork, strange but we couldn’t get along without her.

We had one of our most emotional closings this week that I have ever been part of to date. It was a short sale that took long hours and a lot of paper work faxed and emailed back and forth to the lender and the PMI Company. There was not a lot of money to the Real estate companies involved in this transaction but it definitely was rewarding.

The sellers are two very nice ladies who just didn’t want to live with a foreclosure. During these times there are a lot of people who have never had to deal with the stigma of foreclosures and bankruptcies’, there are people who just can’t live with this and short sales are an alternative to worse hits on your credit reports. It takes a lot of patience and a lot of work but it can be accomplished.

To be successful you have to love what you do.

Jim Bagwell

"Its a beautiful morning"

You got to love the "Rascals"

Another beautiful Florida day, I must admit it is hard to complain about where we live.

Veteran’s day is upon us again. With the election and the economic downturn debacle we are currently enduring we sometimes lose touch with some very important issues. There are still American men and women dying on foreign soil and it is being largely overlooked unless you have a loved one in the conflicts that are underway. Most enlisted men and women have significant others who are in the same economy that we civilians are facing today, the big difference is with the pay scale enjoyed by enlisted personnel in today’s military they are more dependent on the 2nd income than most especially when children are involved. There is also the small item of facing hostile action everyday they are in harm’s way. So I just ask that we give thoughts to the sacrifices being made by all our military serving all Americans.


The market
I would still have to say that prices are still on the downward trend and may last for another 6 months. The new listings that I like are as follows:

Merritt Island in a beautiful section off S. Tropical Trl. Over 2300 sq ft with pool on .34 acre, priced at $299,900.

Viera on Crane Creek again, a beautiful pool home with almost 2000 sq ft that is now a short sale. This is priced at $225,000, we have sold identical homes for $350,000.

Merritt Island on a canal with pool. Now a short sale priced at $239,900.

This Merritt Island home has definite possibilities. Direct Banana River with almost 1/2 acre. 4 bedroom 2 ½ baths, over 3500 sq ft, 3 car garage, pool, great views. For the right price this will be worth the money.

The bargains are there if you are diligent.

Jim Bagwell

Yada Yada Yada

Picture provided to me by our good friend Steve Donnelly from Auburn, NY.

Listing stuff

I was recently doing some research on listings that have sold or not this year. For a Real Estate firm to survive you must have listings, the trick is to get the listings that have a chance to sell in today’s market. One of the hardest things for the listing agent to do is to tell their client they are overpriced. In reality you are doing your client a disservice by not telling them. The primary point of listing the property is to sell the property not to make the company phone ring.

One home that I looked at hasn’t sold and looks to be a beautiful home which I have shown. It went on the market in Jan of 2008 priced at $749,000 this company had the listing for 6 months and reduced the price to $675,000. It was then given to another company and listed it at $675,000; it stayed at this price and company for 90 days. It was then given to another company and is now priced at $599,900. I submit that it may have been the price all along. I hope the seller’s get it sold and it will be a nice home for someone.

On the other end of the spectrum is a home that just recently closed. Originally it listed in April of 2006 for $799,000 with a very good Real Estate agent. It was reduced and reduced and reduced and the final list price was $459,000 sold for $395,000. It was on the market for 905 days with the same agent.

As a seller you can always go to the real estate office and have your agent go on the computer and show you the comps for your home. One of the best methods is to take you and show you the competition. That way you can actually see what you are up against.

Thanks

Jim Bagwell

"Chicken Little"

Last week we had some very rare good news from the printed media about the Real Estate market. Home sales for Sep of 2007 in Brevard County totaled 313. Home sales for Sep of this year totaled 444. This represents a great turn year by year. I am normally skeptical about the trend on our market so what I did was to compare the sales of 10/07 to 10/08. From 10/01 to 10/29/07 the sales totaled 303; in the same period of Oct in 2008 the sales totaled 288. I would surmise that the sales for Oct 2008 will end up roughly the same as Oct 2007. This is not exactly bad news and I am grateful for any positive bump in the market. I feel it is not the time to be a “chicken little” agent and scream to all the buyers that the bottom is upon us. You can still get a great buy but it takes good comparables and negotiation to get the selling price to a point a year from now.

Condos

I was just looking at some riverfront condos in Merritt Island. There is a large complex on the Indian River called Island Point. This complex was built by “Homes by Town”; they are a very reputable builder and put together a quality condo. This is one condo complex where I would recommend buying from the developer since they have lowered their prices below the resale’s and sometimes we can negotiate a upgrade package. Right now they have a unit that is 3 bedroom 2 bath with 2275 sq ft with granite, tile etc. This model is never lived in and priced at $290,000. The units go all the up to $405,000 for the penthouse with 3 bedrooms 2 ½ baths and 2528 sq ft.

In Viera/Suntree area you can literally pay as little as $75,000 and on upwards to the $400,000’s. One that caught my eye was a 3 story townhome on the golf course with 2374 sq ft and a 2 car garage priced at $264,000. There are also some great buys in Heritage Isles which is an over 55 community with all the amenities on the Duran golf course.

On a side note we are a registered HUD broker which means we can get you in HUD homes and make bids for the buyer. There is now a small home on Merritt Island priced at $66,000. This could be a positive cash flow home as a rental.

It boils down to the fact that this can be a good time to invest in Real Estate if you are careful.

Jim Bagwell

"There's a hole in the world tonight"

"there's a cloud of fear and sorrow"
"Don't let there be a hole in the world tomorrow"
Courtesy of The Eagles!

My wife and I stayed up late the other night watching Eagle's dvd's. We both said wow that sounds like the world today.

Prices of all properties are definitely showing the state of the market and the economy. I still have people asking me if we are at the bottom of the market in Real Estate. I still have the same opinion of the market that I have had for the past 2 years. Some homes and condos are at the bottom of the market if you priced them a year from now. What I mean by that is there are seller’s who are overextended and need relief. Some of these people have owned the property for a significant number of years but the other aspects of the economy makes it necessary to sell assets. These are generally the best buys without having to go to the short sale or foreclosure process.

This week I am going to concentrate on Merritt Island since I have been showing waterfront homes there this week. One note to remember about listings that I have learned is that if the property is on the water but there are no pictures of the water then the water is limited at best or the agent didn’t want to go outside.

Merritt Island 10/24/08

Some bottom priced canal homes with boat access either docks, boat lifts or even a boat house.

In Diana Shores which is a nice middle class neighborhood. A 4 bedroom 2 bath home on the canal with dock priced at $269,000.A 4 bedroom 2 bath home on the canal priced at $324,000 and another 4 bedroom 2 baths with 2 car garage and renovations have been completed and priced at $289,000.

There is also a home directly on the Banana River priced at $609,900. This home has over 2700 sq ft, 3 car garage and sits on .41 acre.

Best buy non-waterfront is located in a gated community in north Merritt Island. This home is a short sale. It was built in 2003 and contains 0ver 3300 sq ft, 3 car garage, great pool and convenient to everything. Priced at $299,900, keep in mind on short sales you can’t be in a hurry to close but it can be worth the wait.

Next week we will concentrate on Suntree/Viera.

Thanks for your support!

Jim Bagwell

"Vote for me and I'll set you free"

Courtesy of “The Temptations” from “Ball of Confusion”

It doesn’t matter who you support as a candidate, it is a personal decision. The important thing is just to vote. Vote your conscious, vote your mind but just vote.
“This is Jim Bagwell and I support this message”

With the stock market being what it is we are seeing some relief in the Real Estate market since the property invested in is a tangible asset. Hopefully it will never be worth 0. We are having a very good month as a Real Estate company contributed to the very downturn of the financial market. Real Estate is always the safest investment if you find the value. I tell myself I won’t look at the stock market and my 401K but I can’t help myself, it is like watching a train wreck.

As far as the Merritt Island, Viera market goes in value, I do believe it is there.

Favorite closings this month.

Not a short sale, listed at $299,900 closed at $254,900. 2432 sq ft, 3 car garage, pool and built in 1997. We have sold several in this neighborhood and it appears to be a great place to live.

Brand new home with 2700 sq ft, 2 story on a lake. Listed at $279,400 sold for $275,000, new home with warranty.

Brand new home on a golf course in Merritt Island, listed at $399,900 and sold for $375,000. 3256 sq ft on .34 acre on the golf course.

Short sale in Viera! Listed at $195,000 and sold for $202,000. 2236 sq ft, 2 car garage and in a great community.

Favorite listings

A home in Merritt Island, foreclosure and listed at $142,500. This home is in a great area convenient to everything and has 2000 sq ft with 2 car garage. Built in 1997, this is a good buy regardless of condition.

Merritt Island home on the Banana River, .41 acre, 2700 sq ft and built in 1997. Priced at $609,900.

Foreclosed home in Merritt Island. 1248 sq ft, 1 car garage and built in 1962, the value is the price $68,900.

I recently had a friend tell me that a agent was looking for a home in a specific price range and couldn’t find a property. The mistake the agent made was that he looked only in the price range and not above the price. In today’s market you have to search sometimes $100,000 over the price range to allow for negotiation.

Just food for thought!

Jim Bagwell

My favorite generation

Sorry for my absence in the blogging world. In addition to the financial crisis that we are facing, we also experienced the passing of my mother who was just short of her 88th birthday. She was a fabulous lady and will be greatly missed.

Being a 60’s child I hate to see the generation of my parents leaving us. I personally think they are the greatest generation of all. As we endure this financial debacle it makes me ponder on the trials and tribulations of that generation. I feel our pain pales in comparison. Being a Real Estate small business owner, of course I follow the ups and downs of the market. I don’t see a quick fix coming to us.

The good news is the real estate market is picking up for the buyers and for the motivated sellers. There are actually some investors back in the game.

I recently had to write a letter to a major bank and tell them what my thoughts were on the decline of the market because of a short sale we are trying to help some nice folks get off their plate. The subject property is a small condo conversion that is around 600 sq ft, totally renovated and was purchased in 2006 for $123,000. When I researched the market, I found that there were 9 sales of this type condo during the 1st quarter of 2006 in a 3 block radius that averaged $123,222 per unit. In the same period of 2008 there were 6 sales in the same area with similar features, the average sale price was $56,328 per unit. This unfortunately for the seller is where the market is today. I feel that it will be a buyer’s market for another 2-3 years, good for many and bad for many.

The picture shown is a new listing we have in Titusville. Being a history buff, I was enthralled with this property. Tax rolls show it built in 1939 but it was actually built in 1891. .81 acre on the Indian river with original hardwood floors, if you are interested in seeing I can send you the visual tour or pics.

There are so many good buys out there I haven’t had time to prioritize but will do so in the middle of next week.

Hang in there and don’t despair!

Jim Bagwell

Different but the Same

We are going on more and more listing appointments with people who are very frustrated by the fact that they have had their house on the market with a Real Estate agent and their home has not sold. Now most people feel that it is the agent’s fault that they haven’t gotten a buyer. In some cases this could be the truth but in most instances it will be the more obvious reason.

We have had people tell us that their agent refused to do open houses or to provide flyers. These things should be discussed up front. This is a very difficult time for everyone and particularly for Real Estate agents. The truth is that open house’s are not as popular as they once were but in my opinion they are still a valuable tool. The majority of people you will receive at open house’s are friends and neighbors but people talk and they may have motivation for their friends or family to buy in their neighborhood. We have gotten a lot of calls from the flyer box, I also think this is a valuable tool but it does involve printing costs for the company but you are either in the business or you are a “discount broker”. We are a full service brokerage so we will try our very best to fulfill our seller’s expectations.

In today’s market some things have changed but the basics are still true. When selling a property, keep these 3 things in mind and you have a better chance to succeed.

1. The available inventory is still staggering. You need legitimate comparables and you need to be in the bottom 1/3 of the price range. If a serious buyer is available and they have a good buyer’s agent then they will have the same comps as you.

2. Ease of showing is imperative. When agents are showing 20 homes in a day they are not going to call Uncle Ned to get the key. Try your best to have a courtesy call and use electronic lock box.

3. Condition of the home is critical. There is so much to compare your house to other properties that if the buyers have to walk around Butch the pit bull then they will quickly cross you off the list.

This is a great market for a lot of people; you just have to have the knowledge to make it work.

I do hope this helps a lot of you frustrated seller’s.

On a side note with the Fed’s taking over Fannie Mae and Freddie Mac, look for the mortgage rates to drop some more. This may create a positive bump in the housing market.

As always thanks for your time.

Jim Bagwell

Fact or Fiction

Are we seeing a stabilization of the market?


I recently read another MSNBC article that stated that foreclosures in July were up 55% over last July. I know there are an abundance of foreclosures all over the nation. I also believe that different areas have very different markets especially when it comes to foreclosures. Most if not all government relief programs are geared toward the primary residence owner and in my opinion rightfully so. Investors should be more knowledgeable about mortgages, interest rates and loan programs. They are also the first owners to bail since it is not their homes it is strictly business and I understand that theory.

What I did was research the last week’s sales and this I thought was fascinating. There have been 7 homes sold in Merritt Island and Viera areas during the last week. The interesting part of this is that of these 7 closings the sale price versus the list price was an incredible 95%. I must believe that these homes were priced right and the low ball offer didn’t work. These homes were priced from $99,900 to $309,900 so you see it was most of the middle consumer levels and only one of these homes was a foreclosure or short sale.

Does this mean market stabilization? I believe it shows that owners who price their homes to sell will still find a buyer and that some short sales and foreclosures are still priced too high.

There are still bargains galore if you are contemplating making Brevard your home.


Jim Bagwell

Love, love, love

Positive thoughts. I was out on the porch last night talking with my wife. Lightning was flashing over the ocean, surf was lapping and believe it or not a hawk was screaming. I just had an Epiphany that I had become much too negative. I will never go back to wearing pink pants but there are opportunities at our feet with the market we are in at the present time. We are working with a very good friend and his fiance at the present time to find them a home to buy at a good price naturally. We have recently closed their home for over $500,000, we are now looking for a home around $200,000. The choices are endless and of course you are hesitant to pull the trigger. If you are buying a home to live in then the market is not as important as if you are moving in a couple of years. The value is in the home itself and I guarantee that eventually the market will rebound, I just don't know when.

I don't really know when we evolved in this direction but negativity brings more pop and more readers, listeners and viewers. All you have to do is look at Rush Limbaugh and the huge contract he recently signed. The brilliance of this man is that he can't lose since you know he will have improved ratings if Obama is elected and he has already came out and said he doesn't support McCain. 4 more years of negativity guaranteed with higher ratings. So if you are against everything then life is very simple but not very fulfilling.

"Truth will set you free"

I firmly believe that all professions should always tell the truth about what the market is doing at the present time. This does not only apply to Real Estate, if you have a money manager then you know what I mean. If you count on one commission at a time with no regard to protecting your client then you are committing the ultimate sin and it will always bite you in the butt.

Merritt Island & Viera

There continue to be very good buys in this area of the market.

I noticed a 1700 sq ft home in Merritt Island 4 bedroom 2 bath with a new pool and completely upgraded. Priced at $209,900. I would expect to get this home under $200,000.

For you people over 55, there is a 1/2 duplex never lived in with over 1800 sq ft. This property was priced over $300,000 and is now $195,000.

A property in Sunset Lakes on Merritt is a great home, priced at $459,000. This home has over 3000 sq ft, great pool, 3 car garage and all the bells and whistles. It sits on 1/2 acre.

There is always a short sale. This one is on Merritt Island. It is a 2 story home with over 2000 sq ft, pool. Priced at $199,900, this could be a good buy with the appropriate inspections. Be very patient when presenting offers on short sales.

It is usually easy to tell your family that you love them but it is usually hard to tell a friend.

Next post I may be back to being cynical.

Jim Bagwell

Friends and other misconceptions

As you know I have always said to get a good agent who knows the market when making a Real Estate purchase. You have to be very diligent in order to be assured that you won’t pay over market value.

What I have not stated near enough is that you have to be just as diligent when shopping for a mortgage. Just as there are many properties that are overpriced for the market there are still many mortgage brokers who are still charging excess fees in order to inflate their profit. There is usually nothing illegal about these fees as the industry is being watched as never before. You just have to shop and make sure to look at your good faith estimate or get another opinion of someone you trust.

We are in the process of closing a single family home. The buyers are very qualified and decided to use VA as the method of mortgage. They decided to use a family friend as their mortgage broker. We asked to see a copy of their good faith, what didn’t sound right was the origination fee. The normal use of an origination fee is to buy down the interest rate of a mortgage. In this case the buyers were paying 1% origination fee and were receiving a higher interest rate that is available without the origination fee. This makes the closing costs for buyer much higher and the mortgage payment higher through the life of the loan. Luckily this was caught before we were all at the closing table.


Market News

Not many people realize that we have a lot of part time residents that do not reside on the beach. Merritt Island canal homes have become more and more affordable. A lot of full time Orlando residents are keeping homes on the canals to serve as a weekend, holiday getaway. They don’t have to trailer the boat over and can spend more time on the water. We will go over a few of these buys.

There are 2 possibilities in Diana Shores on the west side of Sykes Creek. This takes a little longer to get to the locks but it is a pleasurable boat ride to spend a day in the ocean. One of these homes is 3 bedroom 2 bath home with a 2 car garage priced at $315,000, the other is a 4 bedroom 2 bath home with a pool and it is priced at $389,000. Keep in mind that these are list prices and you won’t be offering full price, also make your contract contingent on the appraisal being at or above the purchase price.

The other 2 are on the east side of Merritt Island on deep water and a very short trip to the locks. Both these homes should accommodate larger boats. One is an almost new home with over 2200 sq ft, pool, 4 bedrooms and 3 ½ baths. It is priced at $579,000. The other is a home on the end of a cul de sac and has over 2700 sq ft, pool, 3 bedrooms and 3 baths. This home sits on a beautiful .79 acre plot and has great water views. The home is priced at $895,000.

Irritation

It totally irritates me that an agent will take a listing on a great property and then takes no pictures, too few pictures or crappy pictures. They are not doing their sellers much of a service.

Hit them long and straight!

Jim Bagwell

Agent Fees

I recently read a article on MSNBC. The article was about agents charging a transaction fee. It is very true that some agents will charge a transaction fee to their buyers. The article made it sound like this was SOP. In reality there are a small minority of agents who follow this practice. It is also the large companies who do this since their agents are charged a transaction fee by the mother ship. The agents are trying to recoup their expenses however they shouldn't’t do this at the expense of their clients. The article also stated that a lot of buyers didn’t know they were being charged this until they were at the closing table, if this happens to you then your buyer’s agent is in violation of the disclosure regulations and if I was the buyer I would just refuse to pay. I guarantee the agent won’t stop the closing because of this fee. When I was with large companies, we had the option of charging a transaction fee however if ever challenged legally then the agent has to prove what the transaction fee was spent on outside regular business. That is very hard to document as a outside of regular business expense. In summary it is just as slimy as undercoating and no agent in our company will ever charge a fee to a buyer.


Update
The market is still very active and the prices are getting more insane on a daily basis. Some of my favorites are as follows:

Merritt Island

A listing has just been raised in price from $350,000 to $450,000 after 2 days on the market. This could have been a mistake by the listing agent or seller’s remorse. It would be a low listing at $350,000 even in today’s market. This home has over 2100 sq ft but the best part is it is on the east side of Merritt Island which means it is a straight shot to Port Canaveral with no bridges. This means you never have to take down the flying bridge and can be at the locks in 10 minutes.

A short sale on a canal was listed at $195,000 and sold for $185,000. This was a great buy even if in bad condition. It even has a pool.

A foreclosure in south Merritt Island in a great school district was listed at $84,900 and sold for $85,000. Just over 1000 sq ft and built in 1957 but at $85,000 this was a great buy.

Viera

A short sale listed at $449,000. This home has over 2900 sq ft and a pool and is located on a lake. This is a brand new listing and I don’t think it will last long.

Another lake front home is listed at $239,000 and is not a short sale. It has over 1700 sq ft and a pool. This is a good listing in a very nice neighborhood.

A home with over 3300 sq ft, pool, and a 3 car garage was listed at $435,000 and sold for $387,000.

If you should find a perfect home that will fit your needs then by all means look at all the options. You may be able to find another home that is a little smaller or doesn’t have a pool. If you can get this one like $100,000 less then you could have one heck of a pool.

Jim

News, News and more News!

Being in the business that I am, I tend to be a news junkie. I have a son who is in law school at the University of Florida and is also in the Army Reserves and recently returned from a tour in Afghanistan. He has a few years left on his Army commitment which also serves to motivate me to stay on top of things.

We have endured 2 years of our local paper playing “chicken little the sky is falling syndrome”. Now the latest headlines in the local paper and national news is the month of May having the 1st increase in home sales over May of last year by 2%. As you can imagine I really hope this is a trend but I really think that distressed sales are what is driving the volume upwards. Now this is still a good thing since it will aid toward price stabilization. I investigated the figures of what is happening in our market as far as single family home sales as well as condo sales.

We have 2 associations in Brevard County, Central Brevard which is my home association is called Space Coast Association of Realtors (SCAR), south Brevard is the Melbourne association of Realtors.

I have researched SCAR only and this is my findings:

During the month of May this year there were 475 single family homes sold in the month. During the month of May in 2007 there were 474 single family homes sold. You can see that the increase is one home.

During the month of May this year these were 120 condo and townhomes sold. In the month of May 2007 there were 130 sold.

The prices of single family homes sold in 2008 were down between 17 to 20% depending on the range of prices. The prices of condos are still falling and average between 22% and 30% decrease and I believe we will see a further reduction. We have seen one large complex go to auction with about 19 sales that sold for about 50% of the original list price. We will see other complexes go this route or be reclaimed by lenders.

Now I don’t want to be known as Gloomy Gus but my thoughts are as such. There will be tremendous opportunities to be had for buyers for at least the remainder of 2008 and possibly the 1st quarter of 2009.

Pick and choose very carefully and know when to walk away.

Find a buyer’s agent if you are relocating to our area, it is just too difficult to drive by and look for signs. Most of the time the listing agent is not your best bet to get the deal on his or her listing and that includes me.

.

Jim

Real Estate is like a box of Chocalate?

Almost everyone knows that most things in Real Estate are not as true as they used to be in the recent past. Change is always inevitable and usually some good will come from change.

One of the truths that still remain is that the worst house in the best neighborhood will still draw interest. One example of this is the foreclosure in Cocoa Beach that recently closed for more than the listing price. This home is located on Andros Av in a very desirable neighborhood. It was listed at $399,900 and received multiple offers ,our company had one of the offers. It closed for $419,700. This home needs a ton of work but could still have built in equity.

Another home that has gotten my attention is a Suntree home built in 1986. It is also a foreclosure and is the worst house in the best neighborhood. This home has over 2400 sq ft, pool, 2 car garage, 3 bedrooms, 3 ½ baths and sits on a lake with .26 acre lot. I am sure it needs a lot of work and it is also frame construction so a detailed inspection would be imperative to see if it is worth the price but this is definitely a possibility as it is priced at $170,000.

A Merritt Island home that is not a foreclosure or a short sale is in Villa De Palmas Sykes Cove subdivision. This is a great smaller neighborhood of homes with some located on the water and some not on the water. This one is not on the water but is priced to sell. It was built in 1995 and is concrete construction. It has over 2100 sq ft, solar heated pool, 3 bedrooms, 2 baths, 2 car garage and all the bells and whistles. This home is priced at $229,900. I believe the appraisal should be more that the purchase price.

The good deals are becoming more and more prevalent both in single family homes and condos. The sellers who are not in the position of foreclosure or short sales do realize that in order to complete they have to price accordingly. For the sake of argument lets assume that we have another 8 months of market decline. If this is the truth which I really don’t know it to be then you need to do the comps and get the property at a price that would be of value 8 months from now. That seems rather easy, however there are some properties that are priced to sell at a year from now so if you low ball you will lose the property i.e. the Cocoa Beach foreclosure.

Bottom line is to find an agent that is knowledgeable and aggressive and has their buyer’s best interest at heart without the commission being the most important part of the transaction.

Busy Busy Busy !

I have spoke about this before but to be successful in Real Estate you have to build your reputation and depend on referrals and return business. The worst sin you can do in Real Estate is to assume you are much more intelligent than the public. There was an article in the paper this past weekend that the agent was offering the following for the buyers, if you buy an ocean front home for 1M plus then you will receive a Merritt Island home free of charge. Now let’s face it if the Merritt Island home is worthless to the seller then what is worth to the buyer. Now could it really be that the home on the ocean is overpriced and the seller won’t reduce the price. Now I have been in the grocery store and found a 2 for 1 sale on a 24 pack of toilet paper, I really don’t need that much toilet paper so sometimes they will give me one pack at the sale price. So I would ask to see an appraisal on the 2nd home and ask for a reduction on the 1st home.

This has been a busy week for the Viera and Merritt Island market.

From June 7th through June 19th there have been 23 single family homes sold and closed. Of these there were 10 in Merritt Island and 13 in Viera.

A few of my favorites in Viera are as follows:

A 2400 sq ft home with 3 car garage, pool built in 2001 by Lennar. This home was listed at $335,000 and sold for $315,000.
A 2300 sq ft home built in 1996 was listed as a short sale for $264,900 and closed at $237,000.
Now there was a beautiful 3300 sq ft home with a 3 car garage, great pool sitting on .86 acre listed at $599,900 and sold for $534,000. This was a deal even in a down market.

Merritt Island picks:

A short sale sitting on the 11th hole of Savannahs golf course. Over 2000 sq ft with a pool listed at $295,000 and sold for $297,000.
A Banana river front home 1700 sq ft, pool, 2 car garage with direct access to the Banana River. This home was listed at $399,000 and sold for $358,000
This is a Swiss family Robinson special. A very tropical A frame Banana River 1 car garage with an additional 3 car garage detached over 3000 sq ft. Listed for $699,000 and sold for $500,000.

In this same period there were 84 new listings in Viera and Merritt Island with 44 in Merritt Island and 11 of these were short sales, in Viera there were 40 new listings and 7 of these were short sales. A lot of agents will shy away from short sales because it takes longer to close, much follow up and there is no guarantee on the commission. Short sales are great tools for buyers and sellers if you are not in a hurry to close. I have put together a team to handle short sales for both buyers and sellers. We have all the necessary tools to make it work and we have a dedicated team of 3 lovely ladies to bring a successful closing. Don’t be afraid to ask for help!

Good Morning Viera!

We are going to look at an update on what is selling in the Viera area at the present. Viera is one of the most unique areas in Brevard so you have to stay on top of it. Before we do that I want to take you through a typical history of Real Estate in a capsule during a down market.


I met a client in 2002 who was relocating to our area. We found and purchased a 3/2 home on Merritt Island for $175,000, we listed and sold this home for $205,000 in 2004. The client had decided to upgrade so we found and purchased a very nice 2000 sq ft pool home in Viera for $260,000. In 2006 we listed and sold this home for $340,000. So far so good but the client upgraded again with a waterfront home and the market turned on us like a fickle friend. If we can sell this home it will be at a significant loss. Now as you see that the 1st 2 homes were sold at inflated prices. The 3rd will be sold at a deflated price. I know it is very hard to reconcile yourself with this but if you consider your enjoyment of your home while you lived there, mortgage interest write off and previous profits then it could be a wash. If you were of the mind set that the market would never correct and took all value out of the home through refinance then that is where the short sales, foreclosures, sub-prime mess and all the factors that cause a down market have came from today.

Viera update

Since April 1 of this year there have been 93 single family homes sold in the Viera area. Of these homes there were 24 that closed under $200,000. There were also 2 that closed over $1M. Some of the ones that caught my attention are as follows:

2 pool homes sold on the same street as mentioned in the previous paragraph. One sold for $250,000 and the other sold for $255,000. Interestingly 1 of these was listed at $248,800 and sold for $255,000 and the other was listed at $250,000 and sold at $250,000. Now remember that the one sold in 2006 for $340,000. Some homes are priced right with no room for negotiation.

Another home was a short sale with over 2700 sq ft, pool, 3 car garage and all the bells and whistles listed at $465,000 sold for $465,000.

Another short sale listed at $229,900 sold for $230,000. Home has over 2100 sq ft and a 3 car garage. Multiple offers because it was priced right.

A foreclosure with over 1900 sq ft, 2 car garage and built in 2002. Listed at $189,900 sold for $175,500.

Now finally we have a brand new home that contains over 6000 sq ft, 2 story, top of line pool, custom kitchen, 3 car garage. This home showed beautifully and was custom built. Originally listed at $1.79M and sold for $1.4M.

Sorry to be so long but I wanted to show you how many choices there are in this area. You just have to be diligent in finding what suits your needs in home and price.

Next time will be shorter.

Jim Bagwell
walkerbagwell@aol.com
321-213-0615

As promised

As I mentioned in last post, following are the last sales figures for Merritt Island and Viera.

Jan 1, 2007 thru May 30th 2007 there were 184 properties sold in Merritt Island. The prices ranged from $65,000 to $2.275M. In our MLS system we didn’t include short sale stats in 2007.

Jan 1, 2008 thru May 30th 2008 there were 151 properties sold in Merritt Island. The prices ranged from $41,000 to $2.8M. Of these sales 8 were short sales or foreclosures.


Jan 1, 2007 thru May 30th 2007 there were 286 properties sold in Viera. Prices ranged from $112,000 to 1.075M this was the only home over 1M sold during this period.

Jan 1, 2008 thru May 30th 2008 there were 231 properties sold in Viera. Prices ranged form $80,000 to 1.4M, in this time period there were 4 properties sold over 1M. Of these sales there were 16 short sales or foreclosures.

A couple of my favorite picks in Merritt Island are as follows they are in the higher price range, the multitude of choice in the low and medium priced homes are endless.

#1 is a short sale located on the Banana River. This home has over 5000 sq ft, pool, and 3 car garage and built in 2006. This home is priced at $929,900. It is a short sale so you have to be patient if you are the buyer.

#2 is a home built in 2006. The home has over 3500 sq ft with pool, 3 car garage with RV or boat space. This home is priced at $995,000. This is not a short sale so conventional closing will occur.

#3 is a home also on the Banana River. Priced at $849,000, it contains over 2400 sq ft with pool, 2 car garage and the views are amazing.

Next time we will explore Viera. This is a new community with upscale shopping and dining. Most shops are new and most properties are newer. The community has many golf opportunities as well as being convenient to everything. Why they even have a super Wal-mart and a super Target.

Stay in the game.

Jim Bagwell

"Its the economy stupid"

I know new home sales went up for the 1st month in forever and that is good news. The rise was 3.3%. I also know that all pundits want you to feel we are at the bottom.

“It is all about the economy, stupid” Just a paraphrase not an insult. All agents in our community are busier now than in couple of years and I believe the reason is twofold. One is the prices of the properties we are selling and two is there are fewer agents working in Real Estate.

I have just completed a course to become a “Certified Short Sale Professional”. I did this because I believe that there are a lot of people out there who obtained a mortgage in 2003 or 2004 which was 100% financed and was an ARM. These loans are due to adjust this year or next. The value is no longer there in order to refinance. These home owners are going to need help in order to stay on track financially for their future. Since we all helped these people buy the properties then we should be willing to learn what we can in order to help the same people get out with their future. Yes there are good buys everywhere you look; all you have to do is find the good buy not the buys that are stuck in 2004. Foreclosure and short sale no longer have the stigma that it once did, since there are so many people that are facing the fact that the value in property is no longer what it once was back in the day. The difference in foreclosure and short sale is the hit you will take on your credit score; it is probably about 150 pt difference.

There are remedies to the tax consequences also but I will have to refer you to your CPA but I can point you I the right direction.

Merritt Island canal homes were once the hottest investor property out there; recently there was a 4 bedroom 2 bath canal home with pool and boat lift that closed at short sale for $242,000. 3 years ago this home would have closed in 30 days for $389,000.

So if you selling price it well and if you are buying, get the price you need to make it work.

I believe the correct thing to do is to work for the people both buyers and sellers.

Jim Bagwell

"Change will do you good" Cheryl Crow

Diversity

Although I live on Cocoa Beach, my wife and I have been doing a lot of business in Merritt Island and the Viera area.

There are several active blogs in the Cocoa Beach area, a couple are cheerleader type blogs that will tell you that it is the time to buy. There is another that is down to earth and is realistic to the market. It all boils down to the buyer’s motivation. In an effort to service all potential buyers, I am going to focus this blog on the Merritt Island and Viera area. Of course I live in Cocoa Beach so if I can answer questions or show you properties, please contact me at walkerbagwell@aol.com. Keep in mind that if a Real Estate professional ever says you can’t lose, then run don’t walk to the nearest exit.

I hope you continue reading and I will start sharing with you deals and not so good deals in the Merritt Island and Viera area. For people who are relocating to our area, the choices are great. For the young family transferring to start a life the price range on the mainland is much more varied.

Consider this:
The median priced canal home in Cocoa Beach is priced at $465,000, good condition with dock.

The median priced Merritt Island canal home is priced at $329,000, completely renovated, 100 sq ft larger than the Cocoa beach home.

A 4 bedroom home in Viera, median price of $459,900, 3 baths, 3 car garage, pool and built in 2003.

A 4 bedroom home in Cocoa Beach, median price of $459,000, 1 car garage, pool and built in 1958.

These areas are great if you are relocating to our area or if you are looking for a canal front home to get away to enjoy a weekend of fishing. The choices are almost unlimited in the number, prices and style of homes.

At the time of this post there were 631 single family homes active in Merritt Island priced from $74,900 to $4M, of these 61 are on the Banana River priced from $299,900 (a short sale) to $2.5M and also 98 on navigable canals priced from $199,900 (a short sale) to $1.1M. Now it seems that a canal front home is more affordable than they have been for years. More people than you realize keep a home on the canals with their boat on a lift and commute from Orlando for weekend fishing and other holiday events.

At the same time there were 598 homes in the Viera area priced from $72,000 (foreclosure) to $1.799M, there are 26 homes in this area over $1M and one of these is a short sale. There are some beautiful golf course homes that are becoming very affordable.

The next post will be on sales in these areas and any trends that I can decipher.

We also do a newsletter for our complex and 2 adjacent complexes. You can view this at www.cocoabeachwindward.com . Research shows that 1/1/05 thru 5/18/05 there were 7 units sold in these 3 complexes. In the same period of 2008 there were 12 units sold only the prices were changed to protect the buyers.

Your friend
Jim Bagwell

Real Estate Excitement ?

It doesn’t take a whole lot to make us Real Estate people excited these days. We had a very much improved 1st quarter compared to the last couple of 1st year quarters. That being said it is still very much a buyer’s market and the price reductions are showing it to be true.

I have been attempting to assist a reporter on some research on the condo market which has been much more distressed than the single family home market. The results are interesting if you are into that sort of thing. I have to try to keep my finger on the pulse of the market so I do this sort of thing continually.

Please keep in mind that averages are just that averages. All kind of things affect the averages. You aren’t buying the average property; you are buying the property you desire with the amenities you desire.

Details

During the 1st quarter of 2005 in the Cocoa Beach/Cape Canaveral area there were 58 condos sold in this area. The average sale price was $529,328. Of the sold units 16 were new units which drove the average upward. These units are all oceanfront.

During the 1st quarter of 2007 in the same area there were 30 units sold for an average price of $464,237. Of the sold units 3 were new units which didn’t have a lot of effect on the average. Again all oceanfront.

During the 1st quarter of 2008 in the same area there were 38 units sold for an average sold price of $396,448. Of the sold units there were 4 new units and 1 was a foreclosure which had little effect on the average. Again all oceanfront.

Pick

The condo I mentioned on a previous post is a 2nd floor condo with over 2400 sq ft, totally redecorated with great ocean and river views. It is listed at $489,000, in 2005 there were 3 sales in the complex with an average sale price of $680,667.

I hope I have helped you and not confused you but the point is the prices we are seeing now are a much more true feeling of the market. The most severe price reductions are in the low to medium range priced condos.

At the end of the 1st quarter there were 803 condo town homes active in our area of that number almost 20% were new construction condos with a lot more than that not on MLS.

May the force and a good agent be with you in finding your buy!!!!!!

Jim Bagwell

Busy April !

We have had a very active April which makes everyone in our business very happy. There were 49 properties closed in the Cocoa Beach, Cape Canaveral area and another 39 went under contract. Almost every full time agent is showing on a daily basis. There are a lot of experts saying we are at the bottom of the market and we could very well be however I can’t call the bottom. I do know the prices I expected are not materializing; there are good ocean front buys that are priced at 2003 and 2004 prices. When I look at it this is what we should have expected to occur. I charted 3 complexes and this is what I have found in my research. I tried to take a very low priced complex, medium priced complex and a top end complex.

Essex house condo (river front complex of efficiencies)
Aug 2005, a 512 sq ft unit listed at 154,900 sold for 150,000
Oct 2003, a 512 sq ft unit listed at 62,500 sold for 60,000
April 2008, a 512 sq ft unit listed at 75,500 sold for 60,000
2003 Prices

Crescent Beach Club (a medium ocean front complex with above average sq footage)
Nov 2003, 1804 sq ft unit on the 5th floor listed 398,000 sold 394,000
Jan 2008, 1804 sq ft unit on the 7th floor listed 409,000 sold 350,000.
Below 2003 prices

The Constellation (A top end complex with large sq footage and all amenities)
Oct 2005, over 2400 sq ft in this 7th floor unit listed 859,900 sold 825,000
Oct 2007, over 2400 sq ft in this 7th floor unit listed 430,000 sold 415,500
2003 prices

Now you wonder what the hell he is talking about, I am saying that I think some prices are right where they should be even if it took 2 years to get there. I am concerned about the bounce when a couple of properties sell at listed prices and then serious buyers will be disappointed on the price they will end up paying.

For those of you who have been in the military you will remember how it was in basic training when they got in your head and you were so gung ho, ready to kick ass. Then you were deployed, the crap hit the fan and you were wondering what the hell was I thinking, these people are crazy!

There are some Real Estate people who are in the same frame of mind; it is a matter of survival. No expert can call the bottom; all we can do is look at the evidence.

Excuse my rant

Jim Bagwell

Foreclosures ????

I am sure you have all seen all the foreclosure web sites with all the foreclosed properties. The problem with these sites is that they are for the great majority not foreclosed properties. If you want to see the details of these properties you have to join with a fee. When you do this you will find that most are people that have missed 2 mortgage payments or some type of lien has been filed on their property. These properties are far, far away from foreclosure. There has been fantastic money made by techies who just access public records and sell membership to the public. Banks and lenders are very reluctant to foreclose on properties in today’s market, when they foreclose it comes off their income sheet and goes on the bad debts. If we only knew how many people were behind in payments, we would be amazed!

The lure of the deal!

We are rather predictable in our behavior. You would not believe how many shirts I have bought that 50% were off only to bring them home and not to ever wear them. I totally felt good when I left Macy’s, in your face I got the deal! Don’t even get me started on how many shoes my wife has bought on sale, we are totally getting over on Macy’s. If I want a lot of looks at a property, then put sold as is, short sale, preforeclosure, etc. Anything that makes the buyer think the seller is at a disadvantage. Truth is all sellers are at a disadvantage in today’s market however some don’t realize it but are slowly catching on to the truth.

I have shown all sorts of short sales and foreclosed properties. For the most part all these properties are in extreme disrepair. When you think of it, if you find a property that is priced well and is not in a short sale or foreclosure situation you will get a much better deal than the foreclosed property since you will have to put much less into the property to make it livable. My wife recently put in an offer on a foreclosed property for $200,000, the property closed for $320,000. In my humble opinion this property would have required $100,000 in repairs so who won? The bank won this battle since the foreclosure contained the lure of the deal.

Win Win

The best real estate deal is the one that is a win win situation for the buyer and seller. There are many sellers out there who just need to be out of the property for various reasons. These sellers are willing to take a loss and who are still taking care of their property, this is much better than buying a property at a distressed price but is a distressed property. A lot of these properties are such that the power and water has been off for sometimes a year. Know what you are getting into before you buy.

Ocean front

We now have a condo on a 2nd floor in beautiful south Cocoa Beach. It has been totally redone by a prominent designer with over 2400 sq ft. It is now priced at $489,000.

Have a good day!

Jim Bagwell

Do you know what site you are on???

Real Estate Deception

If you have been searching for property at a distressed price and find yourself inundated with emails from RE agents that are unsolicited on your part, there is an explanation.

Almost all RE agents in our area are members of Space Association of Realtors, we pay significant dues for the right to be part of this group. Part of our dues go to supporting the web site with public MLS access, this feature allows the public to view all listings that all realtors have on the market in our area. We also get ethics training from SCAR, Hmmmmm!

With the market being how it is, I am sad to say it has brought out the worst in a lot of our peers. If you search www.brevardmls.com you will get the Innovia site which is the official site of our board to allow the public to search all listings. However if you google brevardmls you will find that you are on a brokerage site or an agent site that is funneling inquiries to their personal site and they will commence to inundate you with emails for business.

Is this right? Absolutely not, can it be corrected, only with a willing board to step on toes and hold people liable to following the few rules that we have to serve the public. I have faith in our board and the situation has been brought to their attention. I hope this will not become a legal or ethical problem but we will see what shakes out of the bushes.

In the meantime find a buyer’s agent you can trust and go with it. There are good deals out there!

Example:
A brand new home on a canal in Cocoa Beach priced at $599,900. It appears that the original price was $629,000 however if you do the research the original listing price was $799,900. This home sold in 2005 for $400,000, it was then taken down and rebuilt. It is now a beautiful 2 story home 3250 sq ft 5 bedrooms 3 ½ baths 2 car garage, dock and all the upgrades. Is there a downside, yes the street will take years to catch up to this house. Upside, if you plan on making this your home you have time to wait and meanwhile enjoy this wonderful home on the water.

Enjoy

Jim Bagwell

Cocoa Beach Confusion

I can only say that we are seeing some positives and some negatives in the market as of late. Yes there have been some excellent choices made by property buyers and they are very happy with their investments. There are also some property owners who are trying to sell their property but are still priced out of the market. I totally understand to feel that you are losing money on a transaction is a bitter pill to swallow especially when your neighbor sold the same house 3 years ago for $100,000 more than what you are listed right now. Look to your motivation and your carrying costs and the fact that the market price may slip again before we see the light. Now if you sell your property today and then the market slips again, you would be the winner.

1st quarter sold stats

Brevard county residential Cocoa Beach/Cape Canaveral
Jan 341 units sold Jan 34 units sold
Feb 474 units sold Feb 40 units sold
Mar 537 units sold Mar 30 units sold


The other shoe?

Interestingly enough, we were talking about auctions in last week’s sales meeting and the fact that they weren’t working because of the minimum bid requirement. Today we received a card advertising an absolute auction with no minimum bid or reserve. This complex is new construction and some units have ocean views. All the units are large modern units, most have 3 bedrooms 2 baths and the complex appears to be well built. We have talked before about what will happen to the large complexes that are built and not sold out, this could be a preview. I plan on attending the auction and I will let you know how it went down.

We have also talked about the large developer in town who never lowers prices but offers incentives, well today that just changed with the developer lowering prices for the 1st time that I know of in the Cocoa Beach area.

The sound you hear is the other shoe dropping or maybe opportunity!

Next week we will explore Real Estate deceptions. You may think you are on a public site but in reality you are on a brokerage or agent site and you wonder where those emails come from.

Jim Bagwell
321-213-0615
walkerbagwell@aol.com

Not a bad March day in Cocoa Beach!

Things you need to know

Because of the drop in prices we have all been showing new never lived in condos at distressed prices. As a buyer there are certain things you need to pay close attention to when preparing a offer on new condos.

I do believe that my partners and I have showed every new condo on the market on Cocoa Beach/Cape Canaveral. There are some very good buys in some very nice buildings, there are also some on the other end of the stick.

Even when buying new, always get a thorough inspection. I am not a builder but there are certain things you can't skimp on when building on the beach such as exterior doors,sliders,windows and outside fixtures. I showed a unit the other day that is new construction but the stairwell door is rusted shut. All these doors should be replaced immediately since it is a fire escape. If you have ever bought a new construction of any kind you will remember how the punch list wasn't quite as important once you have closed on the property, I believe it is called motivation.

There are situations where the amount of people who have closed are very limited. This makes you wonder what may happen to this kind of complex, someone is paying the everyday expenses and the carrying costs. Be very afraid if there are 100 units available and only 10 have closed and no owner lives in the complex. It could be that you would pay new construction price but the other 90 may go to the bank.

This may sound depressing but the deals are there you just have to be diligent and have someone who will do their research on each and every unit. We do have a very well known developer who has built very nice complexes in our area for a very long time. They never lower prices to their credit in order to protect the owners, they do offer incentives like decorator allowances etc.

Hang in there and there is a deal for you!

Jim Bagwell

Cocoa Beach Buyers

I showed a foreclosure yesterday in Cocoa Beach. The unit is a 4 bedroom 3 bath over 2700 sq ft with a 2 car parking space under the building. This unit is new never lived in and priced well under what the investor paid 2 years ago. This unit is on the 4th floor with fantastic views. As we were looking at comps in order to prepare an offer, we looked at the unit listed one floor above identical to the one on the 4th floor. It is priced over $130,000 more than the one I showed to the potential buyer.

This is what is confusing in today’s market. There will always be sellers who are not going to accept the truth about value in today’s market.

If you are seriously considering buying a property on the beachside then you have to be even more diligent than when the market was on the upswing. There are deals to be had but you have to search these properties out of the entire market. This takes work and research but it can be done. You also have to put several contingencies in the contract to protect you as the buyer of the property. With the lending market the way it is today, you will almost certainly have to put down at least 20% down payment but you can put in the contract that it must appraise at or above the purchase price.

Market update

So far this year there have been 90 properties in Cocoa Beach/Cape Canaveral closed in 2008. In the same period of 2007 there were 107 properties sold in the same area. This is rather indicative of the market as a whole. The difference is the sale price of all properties. If a seller doesn’t really want or need to sell their property in today’s market then they shouldn’t be in the market at the present time. I fondly remember the days when all it took to sell a property was a sign, the table has now turned and Realtors have to step up and out of the box to sell a property. Don’t feel bad about making your Realtor work in today’s market. We should all be checking the market on an hour by hour basis in order to find the best deals for our clients!

Good Alternative

If you really don’t have to be on the beach side then the deals on the mainland side are very impressive. My wife has been showing single family homes in the Viera area for the last month and the short sales and foreclosures are abundant and the prices are phenomenal for the amount of house you can purchase in today’s market. If you are relocating or retiring to FL then the deals are there with the details you desire.

Thanks for your time!

Only in Cocoa Beach

Only in Cocoa Beach

I have never thought of us as the Mayberry of Florida but I have worked all over the country and I have never encountered a situation like I did yesterday. I was walking from our office to the bank. A UPS driver stopped me and said I had a package being delivered to my home and I would have to sign so he gave me a number to call the other driver. The other driver then came to my office to deliver my package. I can tell you this just doesn’t happen in Miami or Atlanta.

.

Market update


In a snapshot of the market looking at only Cocoa Beach/Cape Canaveral the numbers for February are as follows:

After I clean the data I come up with 115 new listings in the month of Feb I am not relying on this information since there is so much manipulation going on with days on the market. This includes some new condos that you could have purchased one year ago but come up as new listings.

There were 39 sales in the month. Naturally this is our peak season for activity and it has been rather active. I believe the closed sales in March will be higher yet. Truthfully 3 year’s ago these numbers would be terrible for the beachside and one company would easily beat that by themselves. In Real Estate the market always changes so we have to be able to change with it. Weekly and monthly rental properties are still the hottest commodity because of the cash flow. A lot of these properties make sense even today because of the price reductions.

Frustration

A good friend of mine used to always say in Real Estate “We have met the enemy and it is us”. Short sales are good for the owner and good for the investor or home buyer, it is also a time consuming process. It does no good whatsoever to put a listing in MLS as a short sale if the owner has not done their homework. They should prior to listing, contact the lender and inform them of their decision. They will then have to submit a package to the lender showing why they have to do this and ask for permission for the agent to contact the lender. If you don’t follow these steps then the lender has no idea what to do if they receive a contract from the listing agent. When you make an offer on a short sale ask your buyer’s agent to ask the listing agent if the package has been submitted and if the agent has talked to the lender. It will usually still take longer than a normal contract but there is at least a light at the end of the tunnel.

Have a good one

Cocoa Beach

Cocoa Beach


An epiphany I would share. This weekend was a very busy weekend in our limited world of Real Estate. My wife and I did take time to go over to Coconuts sit on the deck consume fish, shrimp and yes a cold beer. As we were sitting there in about 75 degree weather, I realized that we didn’t really appreciate where we live. I remember when I was a kid and the family would go on vacation. When I would hear the sea gulls cry I would know I was on vacation so it was time to get wet, run and build sandcastles. I haven’t really heard the sea gulls in awhile so it was time to step back. This morning I went driving around looking for the Great white pelicans which come to Cocoa Beach once a year. Interestingly enough they don’t go to the ocean they stay in a protected canal and it is a site to see. Sadly I didn’t find them today but maybe tomorrow if they haven’t already left. I did find a regular guy sitting on the boat ramp sign which I have shared.

Snow Birds

I also got a visitor down from Michigan who stopped by our porch for awhile. He felt much the same way I felt about life. His kid sister had just passed away and he was feeling that he was not enjoying life as he should since you never know when it will end. He is looking into at least getting away from the cold weather part time.

Market

I am not going to delve too deep into the market state at the present time I will bring more detailed info as the time is right. As far as our little company goes we are having a good year but I think it relates to our methods and doesn’t have any correlation to the general state of the market. I am sure that most of you have seen in spite of all the FED cuts the mortgage rates are going up a bit; I believe this is because of inflation. The FED does not really control the mortgage entirely.


Party like a rock star because you never know when it is over!

Jim Bagwell

"What we have here is a failure to communicate"

Total confusion?

This guy was playing in front of me the last time I played golf at Cocoa Beach (A beautiful 27 hole public course)

I have been reading an endless supply of opinions on the state of the Real Estate market. I think a lot of people just chose a side and stick to it until it doesn’t work anymore. I personally feel that nobody really knows. There are always means to manipulate statistics to support your argument.

Selling Real Estate

I have seen that there still are a lot of agents and companies that follow the opinion of NAR (National association of Realtors) and FAR (Florida association of Realtors). As far as I know NAR and FAR don’t sell real property. I am a member of both associations and they do good work at what they do. They provide excellent education for Realtors; they have standards of ethics that we are all held to as Realtors. They promote the Real Estate market in general. No one likes to see people quit the business but it is happening and that means less dues paid to both associations. I think it has been proven recently that no group can turn or influence the Real Estate market not even the FED. I believe that “what we have here is a failure to communicate” (Cool Hand Luke), the market is going through a market correction and it is very hard on sellers, investors and Real Estate agents. It is a natural occurrence and as hard as it is to bear, it has to happen. If it never happened then no one would be able to buy a property in years ahead. If we had continued to see property values increase 20% a year then consider this; a home bought in 2000 for $150,000 would sell today for $644,944. Now that would mean that you could own a nice little 3/2 1500 sq ft for $644,944.

We recently closed a short sale on a never lived in luxury town home. It was purchased pre-construction in 2005 for $299,900 as a flip. It closed last week for $195,000! This is an extreme example but that is what is still happening in the market today.

Repeat business and referrals

As a smaller company we depend heavily on repeat business and referrals, we really have to try our very best to perform for both buyers and sellers to get the good word out there. We can’t afford to count on a buyer coming in and making a purchase and then we will never see this person again. We have to have satisfied customers and usually they become friends. We don’t get some listings or we can’t take these listings because of price and expectations. We market our listings heavily and do whatever it takes to get them seen. When they are priced at the owner’s price rather than the market price it usually results in bad feelings by both. I think the best way to do this type of listing is to try it at the owner’s price for 30 days then lower to the market price if the owner agrees on this strategy.

I am convinced the most creative people in the world work for bumper sticker companies, send me your favorite and I will post it.

Jim Bagwell