Merritt Island Foreclosure News

The good news is that if you are looking for a deal through a foreclosure or a short sale, the time couldn't get much better!

Florida has now moved into the number 2 position nationwide in the number of foreclosures. The top four states are 1. Nevada 2. Florida 3. Arizona 4. California. These states account for over 25% of the nation’s foreclosed properties. As a result these states will receive the bulk of the 100 billion in foreclosure bail out money, I wish I could shed some light on how this money will be used but I have no clue. Now these numbers don’t include short sales and a lot of these are in the foreclosure process.

I believe you will see the banks move to get to be more cooperative in closing these properties and get them off the books. At least we want to believe this in order to make our lives a little easier. At the present time we have 8 contracts in negotiation for short sales. It involves a whole lot of work especially for the listing agent. In no way do we represent the lender in the short sale process we represent the buyer, seller or both. However the lenders can be the biggest obstacle in this process. Look for an experienced agent!

My favorite properties in the foreclosed world of Brevard County.

An 1800 sq ft home in Viera priced at $169,900. This home has 4 bedrooms and 2 baths with a 2 car garage. Home was built in 1997 and features vaulted ceilings.

A home with over 2500 sq ft located in beautiful Villa De Palmas on a deep water canal that will accommodate up to a 40’ boat. This is a pool home with 4 bedrooms 2 ½ baths. This home was originally listed for $629,000 and is now on the market for $549,000.

Thanks

Jim Bagwell

2008 Recap

I thought we would recap the market for 2008. We will do Merritt Island this blog and next we will do Suntree/Viera.

2008

In all of Merritt Island there were 421 single family homes sold in 2008. The price range ran from low of $47,500 all the way up to $2,800,000. Of these 421 there were 98 of the homes on navigable water be it canals or river. These 98 ran from $153,000 to $2,800,000. You do pay a premium for being on open water.

2005

In order to get a feel of the turn of the market, I went back to 2005. In 2005 there were 719 single family homes sold. The price range started at $65,000 (trailer) up to $2,275,000. Of these 719 homes 175 were on navigable water they were priced from $159,000 up to $2,275,000.

To start off 2009 we have 469 homes active in Merritt Island. The price range runs from $34,900 up to $4,242,500. The higher price is a home that can be built and seems to be an albatross as in one form of another it has been on the market since 2003. Of these listings 166 homes are on navigable water priced from $171,000 up to $4,242,500. When you get in the middle $200K range it is now possible to get a home on the water that you can actually move into and enjoy Florida.

A buy?

It is not often I recommend one of our listings as a buy but we do have a great house at a good price. It was built in 1968 and we all know what you get for a home built in 1968. This one is different since it has been taken down to the bones and put back with everything new including wiring and plumbing. This home shows great with 2324 square ft, 3 bedrooms 2 baths including a work shop on the back of the house for escape. The lot is landscaped to the 10th degree and includes a covered boat lift and dock. It sits on a wide canal with great views. Priced at $389,000 or $168 per sq ft.

Happy new year to everyone!

Jim Bagwell

"What would you do if I sang out of tune"

Too bad that is how I sing!

Recently I read an article on MSN by Scott Burns about Madoff. Hopefully you all know who he is and what he has done. Mr. Madoff has made 50 billion of other people’s money disappear. Now that is a lot of milk money. Mr. Burns suggested that we revert to medieval times and declare Mr. Madoff an outlaw and the punishment would be he forfeit all his property and if anyone found him they could kill him on sight. Mr. Burns doesn’t think this would cruel and unusual punishment. Now I have my doubts that this would not be cruel and unusual but as yet I am not homeless so my opinion could change any minute.

Parallel universe

My wife showed property this weekend to some dear folks who are looking to relocate to Cocoa Beach. They already have a short sale contract in on a nice condo on the ocean. We suggested they continue looking since you never know the outcome on a short sale. They went to several complexes built by the same builder on the river and on the ocean. They look very well built with great views. The thing that bothers us is that even though the builder says a lot of units are sold when we search county tax records nothing shows up as changed as far as owners. The builder still controls the association since the percentage has not been met for sold properties.

Doubts

At Walker Bagwell we have always been cautious with buyers when they approach a complex we are not sure of the solidity of the complex or management of the complex. I spoke with my wife and my partner about being too cautious. We decided what we have done in our time of business is to advise our friends and clients in a way that doesn’t have anything to do with commission but everything to do with protecting their interests. We feel good about every deal we have advised against going to closing. No money made but when the turn comes the clients will still know where to go to when they want to buy their dream. If you think about the agents that didn’t see the downturn of the market and advised their clients to buy pre-construction and are now in foreclosure or short sale situations, it is mind boggling what commission was made and what money was lost. Fortunes were made or lost in the last 3 years.

Conclusion

What we have lost in commissions we have made up in trust and goodwill. I do believe we will continue what has worked.

Jim Bagwell