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.

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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