Cococa Beach don't look now!

Cocoa Beach, Don’t look now!

Recession? I believe we are already there. As the talking heads are discussing if we are heading into a recession, it doesn’t take much to figure out that we were into it a month ago. People are struggling to make good on their existing obligations, there are over 4000 short sales in Brevard County, foreclosure’s are at an all time high. Credit card companies are going to take a big hit when people decide what to pay and what to skip.

Opportunities

As strange as it may sound the opportunities are endless as they always are in the down turns. When the average American finds themselves paying 2 mortgage payments and the carrying costs that go with it then something has to give. 2 to 3 year’s ago the investor bought a property in hopes of turning it over in a short time and bank the proceeds. This worked for over a 2 year period. As sad as it is to say there were some agents who couldn’t stop saying “This is a no lose opportunity” we saw the market changing about 2 ½ year’s ago, at that time we would advise all our clients not to enter into a transaction with the intent on flipping in a short term manner. The lives changed for the worst due to bad advice is staggering. If you can’t afford to lose the investment then you shouldn’t invest the money.

At the bottom

Everyone comments that they are waiting for the market to bottom out. The smart buyers are determining what the bottom is with their offers. A lot of these offers are being accepted and the buyer is well on their way to building equity. I have been through several down markets and I have yet to see the sign that tells us “We are at the bottom”.

Good buy!!!

This is a sweet home with state of the art pool, 2 docks, over 120 ft on the canal. This home has had a new roof, stucco and paint, recessed lighting and on and on and all improvements made in 2007. Bought 12/06 for $640,000 and $60,000 put into the home. It is now listed for $599,000, now this could be the bottom.

Cocoa Beach Condo Market

Cocoa Beach Condo Market
The one certainty with the Cocoa Beach Condo market is that prices are coming down to accommodate the buyer’s market. We are seeing prices that we have not experienced in quite some time. To the inexperienced buyer the prices seem to not have fallen that much. To the agent who is constantly doing their homework on sale prices then it is evident that there are people who are in financial trouble and have to sell now.

A lot of sellers are still in denial with what value their unit is worth in today’s market. These owners do not take into account what the carrying costs are running them on a monthly basis. If you are willing to list your property at a price that is 100,000 higher than similar units in the complex then you are not a serious seller. At these prices they get no phone calls or showings but their neighbors that are priced less get their showings as well as their own. Some of these owners are paying $5000 a month in carrying costs, when your unit stays on the market for 1 year or more then it doesn’t take much to figure out what you are losing by listing at a price that is not going to sell or be shown.

We have talked about the volume listing agent before but when units in the same complex are listed as much as 100,000 apart it makes the agent seem to not know the market or simply do not care except for the listing. They are banking on phone calls and steering the buyer to another unit. This is shameful and takes away all the knowledge they have worked so hard to acquire.

Walker Bagwell Properties
We started this company 2 years ago at the worst possible time in the market. Today we are thriving because of truth and honesty. I could not express in numbers how many listings we have turned down because of price. It only causes ill will to list a property at a price you know as a professional has no chance to sell at a close proximity of the listing price.

My partner and good friend Larry Walker and I meet every morning to discuss the market news and the state of Cocoa Beach Real Estate. Most of the time we share horror stories of what we have been through the previous day with other agents. We started this business with the thought of changing perception of the “Real Estate Agent”. I feel that as a company we have done a great job on putting forth a professional attitude and taking care of our clients. I have had no negative feedback as yet and I don’t expect any forthcoming bad news.

What really concerns me is the fact that a lot of agents are under the gun to make a living in the down market that we are experiencing at the present. I see a lot of behavior that I find totally unacceptable. As an agent when another agent presents an offer you have to look at the rationale of the offer. If there are comparables to support the offer you should receive the offer in good faith without inserting your own unfounded expectations. The listing agent should have prepared the seller for what was likely to come.

There have also been several instances of blatant false presentations. My partner recently had an out of country buyer call to say he had found an ocean front unit at a fantastic price. On examination the unit is in an ocean front complex but there is no view whatsoever. When confronted the listing agent said that he had done one virtual tour for the entire complex. This is a terrible practice and I hope we have corrected this problem.

I hope all the readers can see what we are up against to change our profession but we are very resilient and will persevere.

A top floor condo in beautiful South Cocoa Beach with 1800 sq ft, 3 br, 2 ba, and fantastic views just closed at $350,000. A tremendous deal.
A good time for the well informed!!


Jim Bagwell

Property Tax in Florida

Property Tax reform

Jan 29th, we will vote on the proposed tax amendment that will benefit the long time property owners in Florida. It will not do anything for the people moving to our state or the 1st time home buyers.

I will probably vote for the amendment as a start. We rank 38th in the nation at the present time on Property Tax rates with no state income tax which is the good thing. What I would like to see is the county governments and the municipalities being held to a responsible budget. When the property values were soaring and the economy was roaring just what did the local governments do with all the money received from the increased tax dollars. It would seem they spent or allocated every dime with no thought of what would come when the market would turn and the market always turns. Our education system has made significant strides upward which is a very good thing. I feel with our diverse culture in Florida we should be at the top or near the top in education. Our teachers are still underpaid along with law enforcement agents & fire fighters and this I believe falls again on local government. The voting process is the only way to make significant change.

Insurance
I was very pleased to see the State suspend Allstate from writing new auto policies until they turn over their records that the State has requested for the last decade. The insurance lobby is one of the largest and well funded lobbies in the world so again look at your candidate and see if they are in the pocket of the insurance industry. Since this post the courts have overturned the State's decision to suspend Allstate from writing policies.

The Real Estate Market
The 1st month of 2008 has been rather positive for our little company. We are seeing more calls, more hits on the web and more people looking to buy. Some complexes are seeing realistic sellers who have lowered the prices of condos and individual sellers of homes. The weekly rental condos are still very popular with the investor.

There was very recently a home hit the market on a Cocoa Beach canal. Less than 3 years ago it was purchased for $1,000,000 it hit as a bank owned property listed at $534,900. It is now in negotiations with 3 offers. It needed a lot of work but the value was there. This just goes to show there are deals to be had when you are ready to buy.

A new year!!!!

Hope you all had a great holiday season!

I had a great one and ended up going to Tampa to watch the Bucs lose! It was a crummy game but a great time since I watched with my son who is just home from Afghanistan and just getting back to Law school at the U of F. You take your blessings where you can get them.

As Seinfeld would ask "What's up with the buyer agent bonus's"

I was taught Real Estate in the way that commission was the last thing you looked at after the property was under contract, I teach Real Estate in the same way!

When the Real Etate market went south with the birds the philosophy changed with a lot of companies and experts including the late Robert Bruss. The new theory is if your property won't sell then raise the commission and offer a buyer's agent bonus. This sounds rather innocuous but when you examine it the theory is flawed. You, the buyer, tell your agent what you need in a property. Does your agent then find the properties that fit the criteria of your needs but then go through the listings and cull the ones that are low on commissions. What happens when the agent finds a bonus, does this property go the top of the list even though it is flawed? The buyer is the person buying the property, the buyer deserves the best deal going regardless of the commission or bonus. The agent's mission is to serve the buyer not the commission. I don't know of any Real Estate company that is a non-profit organization but we are a repeat business industry and that entails taking care of all your clients. If you look at one sale or cashing in on one bonus you will surely fail.
As Seinfeld also said "If a man is walking a dog and a man is carrying the poop, who is in charge"

A couple of my picks of the week are a never lived in condo 3br 2ba,2348 sq ft, river view priced at $289,000 or $123 a sq ft.

A home that is a 2 story, 2256 sq ft, direct river,4br 3ba,this home has been reduced $250,000 and is now priced at $499,900. It could be that the seller is motivated.

Wish all of you a happy new year and if I can help you just call Jim at 321-213-0615 or email walkerbagwell@aol.com

LOCATION,LOCATION,LOCATION

Are you as tired of this mantra as I am?

I heard Donald Trump still use this as a Real Estate term the other night and it may well still apply in Manhattan. I really feel that in the market we are trying to recover from in Florida, we need to adjust this outlook.


PRICE, PRICE, LOCATION

Hopefully in 2008 we can change to PRICE,LOCATION,LOCATION but at the present time for the buyer the inventory is still at the point that you can specify the location that you are interested in pursuing in Florida. Your agent can then give you choices,investigate the circumstances of the sale,then make a offer with the price you are comfortable with paying and go from there. It all depends on research and giving your validation of price to the listing agent or owner. It takes work to get a deal but it can be done with a happy ending for all.

Deals

There are deals to be had in our market and more coming on the list everyday.
There are several bank owned condos that are priced to sell! Direct river condo,2300 sq. ft.,3/3 priced at $445,000. $200K less than the owner paid for the property. Direct ocean penthouse,$725,000, 3400 sq.ft.,4/3 1/2,2 car garage,beautiful beach,the unit needs some cosmetics but the price is well under market.
We also have a townhome in a oceanfront complex with private beach access,tennis,pool on the beach side,2br,2 1/2 baths,1 car garage and reduced to $199,900.

Canal Homes

Flickr: Photos from jimbagwell