January 16, 2010

 

Hope everybody is staying warm. Our cold snap is finally past and the temperatures are getting close to 70 during the day. I just wanted to make sure you are aware of the exciting new addition to our real estate repetoire, our new Real Estate Radio Show. As of today we have recorded the inagural show which is available to listen to any time. It is a market recap for 2009 and comparing market activity for 2009 to 2008. It is very informative.

 

We have also planned our next show which will center around lending and what prople looking to borrow money are encountering in today's market. It features a guest speaker, Dan Krispinsky with SunTrust Bank. I will also talk about what we are seeing real estate wise as we work our way through the first month of 2010 and head into the height of season.

 

The link to the radio show can be found on our home page. 

 

 

May 11, 2009

 

Short sale, bank owned, and foreclosure are very “hot” words right now in real estate. We have received quite a few calls from buyers searching for properties that fall into these categories on Sanibel and Captiva as they perceive these present the best value.

 

Our family would like to give a brief explanation of each of these terms and the pros-and-cons of attempting to purchase real estate in each of these categories. We’d also like to address how Sanibel and Captiva real estate relates to these types of distressed sales.

 

Given the historically high property values on our beautiful islands and the general financial fortitude it takes for investors to purchase real estate on Sanibel and Captiva, we are experiencing only a fraction of distressed sales that plague other real estate markets, even those as close as Ft. Myers and Cape Coral. While these financially distressed properties often present fantastic buying opportunities buyers should be cognizant that properties that don’t fall into these categories can sometimes present just as good or better buying opportunities.

 

For example take the exact same property on Sanibel or Captiva which at the height of our real estate market in 2005 appraised at $1.5 million. Let’s also say this property is for sale in today’s market for $1 million.

 

In this example let’s say seller one purchased this property in 2005 at the appraised value and bought it utilizing 80% financing which is a loan amount of $1.2 million. This property would be considered a “short sale” since the loan amount is higher than the listed price and the bank would have to agree to take a loss on the home. Or maybe this property is in the foreclosure process where the sellers have ceased making loan payments and the bank is in the process of taking title on this property.

 

Seller number two has owned the home for thirty years and owns the property free and clear. They are cognizant of the market and although they know they could have sold for a higher number several years ago, they are willing to take what they can and move on. Even though this property is not labeled short sale, bank owned, or foreclosure it would appear that a buyer can get just as good of a deal if not better on this property than the previous example since there are no real losses being realized by a third party.

 

We do see this happen on the islands where even though some properties do not fall into the distressed categories they present just as lucrative of an investment as some that do. And, if a property does fall into one of these groups it doesn’t always present the best buying opportunity as there is a possibility it was over leveraged.

 

We feel that this is the reason for enlisting experienced and knowledgeable real estate specialists. The Burns Family provides our clients with the years of experience and connections not only to have the pulse of any distressed properties on the island, but the market knowledge to identify value.