Brevard County Property Values

In the Real Estate section of our local paper there was an article saying how much the activity has picked up in Brevard County. This is true and in my opinion is due to the pricing of properties. A lot of home owners are seeing what the foreclosure process is doing to their property value and are pricing accordingly.

As of 6/29/09 in our MLS there are 533 bank or corporation owned properties. Some of the corporation owned properties are owned by the developer but most are owned by Freddie Mac, Fannie Mae or VA. There are also 1345 short sales in Brevard. So you see we have to work on getting these properties sold to really get the property values back to a positive posture.

Some of these properties are very interesting to be in foreclosure.

A 727 sq ft condo in Titusville priced at $9,900. This is not in good shape and not a very good location but for a rental property definitely possible.

A 3901 sq ft home on Merritt Island with pool and on the water with a short trip to open water, 4 bedrooms and 4 baths and priced at $719,900.

A 4 bedroom 3 bath ocean front penthouse in Satellite Beach with 3690 sq ft priced at $649,900. This is a good buy for this complex.

Short sale possibility

Remember that short sales can be frustrating but can be worth the wait!

A 3014 sq ft single family home with 3 bedrooms 2 baths and 2 ½ baths; this property is on the ocean on .35 acre. The HOA fees are $1647 per quarter but include structural insurance and lawn service. The only drawback to me is the location which is almost to Sebastian Inlet but for a 2nd getaway with great golf, fishing and surfing then this would be fantastic property.

Thanks

Jim Bagwell

Chinese drywall

I am sure most of you have heard of Chinese drywall, this drywall was shipped during the time period of 2002 to 2008. Testing of the affects is not as yet complete but there are things that we are sure about what this drywall causes in the property.

The drywall manufactured in China emits a sulfuric gas that will turn copper pipes black and can damage A/C coils. Some residents in the affected homes have complained of respiratory problems and dizziness. The health issues are not proved as yet but the FDA is working on the test right now.

Most of this drywall was used in Florida but the class action suit will be heard in New Orleans and contain cases from 3 states including Florida.

Now most people think that if your home wasn’t built in this time period you are safe but when you think of all the remodels and repair of water damage that have been completed in this time period then the possibility is still there in older homes.

We have already put an addendum in place that addresses this issue so if you are buying a property ask your agent to use it. To be safe ask for a complete seller’s property disclosure and ask your home inspector to check for the possibility of the presence of the drywall.

Seemingly good buy!

I have not been inside this home but it appears to be a good buy. Not a short sale or foreclosure, the home has 2115 sq ft with screened pool and is on a canal. Priced at $319,000 located in Diana Shores in central Merritt Island.

Just cover your bases in all transactions.

Jim Bagwell

Your own worst enemy

I have become very frustrated with agents who are still in the booming market frame of mind in a still down market.

Back in the day it was extremely rare to make an offer on a property and get an acceptance without a counter. There are still agents who feel they must have a counter when they get any offer on one of their listings. The fact of the matter is a lot of times the 1st offer will be your best offer and sometimes your only offer. Now what are they trying to do, maybe to say to their seller that they have worth but a lot of times they are hurting the very people they are hired to help.

The key to it all is to perform a very thorough market analysis and be very honest with your seller on what to expect. When you as an agent give your seller false hope on what their property is worth today you are contributing to the down market.

Always remember that as a seller or a buyer it is your call on what to offer and what to accept. Your agent is bound to follow your instructions; the agent is paid for their knowledge of the market and their skill of negotiation and to protect your interests always without fail. You should ask for your agent’s input but it is still your call.

Jim Bagwell

"Should 5% appear too small"

"Be thankful I don't take it all"

Forgive my digression, my wife and I went to a “Classic Concert” featuring Beatle music and brought back all kind of memories. If you get a chance go see this show it is great.

You have heard me talk about Space Talk which is a forum that all our agents get a chance to speak about current happenings or ask for help. Recently we have had an influx of agents speaking about simultaneous closings which involves an investor buying a short sale and reselling the property instantly to another buyer at a profit to the investor. The second buyer was found while the short sale process was ongoing. These agents are screaming fraud which is totally ludicrous since these very same agents were buying pre-construction properties not that long ago and selling the same day at a nice profit.

The only way to recover this market is that there are people who have some money and want to make more money; hence you invest for a return on your money.

At the present time there are 58 short sales in Merritt Island alone, some of these are very good deals if you can get them at list price. The short sales are priced from $69,900 to $950,000; one of these is a 2 story pool home on Sykes Creek with almost 3000 sq ft. This home was purchased for $815,000 and is now on the market for $659,000.

The deals are there and there are buyers who sold at the right time and haven’t owned in the last 3 years which makes them eligible for the 1st time home buyer $8000 tax credit so it may be time to jump back in the game.

Jim Bagwell

"Money can't buy me love"

photo courtesy of Don Hoover since my camera failed.


But it can buy a great property in Brevard County especially if you are a 1st time home buyer. If you haven’t owned a home in the last 3 years you can qualify as a 1st time home buyer. With this in place you can get an $8000 tax credit and this time it is not a loan, at tax time this credit can go toward your refund or reduce tax payment. One of the best parts of this deal is you can use this credit as a bridge loan for down payment and repay at tax time with your credit.

When you add this to the fact that the 1st quarter of 2009 had the biggest drop in property values since the downturn began and puts us at 2002 prices, it is a great time for the buyer and especially the 1st time home buyer. The last 2 months has seen a slight uptick in property value so we may be finally leveling out in prices.

If you are a 1st time buyer and are considering buying a home then you should go to a lender now and get a pre-approval and be ready to go when you find a home. It is now possible to buy a $150,000 home and have a monthly payment of around $1000 including taxes and insurance so now you can say it could be cheaper to own than rent. With a price of $150,000 the choices are endless and you can pick the home will fit your needs.

Now usually we specialize in waterfront homes but it is indeed an exciting time for 1st time home buyers so we have expanded our market. Sunset lakes is a nice gated community in North Merritt Island and there are numerous short sales starting at $162,500 now remember don’t be in a hurry if you are dealing with a short sale. There is a canal front home in Merritt Island priced at $178,200, this home has been stripped by the owner in preparation of renovation but it has now been foreclosed. This would be an excellent opportunity to use the FHA 203B loan and get renovation costs built in the mortgage.

Give us a call today!

Jim Bagwell
Broker