Earlier this week we noticed an influx of web registrations on our Search MLS site from up North and we wondered if perhaps the weather up North was turning cold.  Each year, and especially in the brutally cold years, we receive inquires from our Northern friends looking at what they can purchase in sunny SW Florida.

Weather Up North Affecting Real Estate in SW Florida

Weather Up North Affecting Real Estate in SW Florida
Weather Up North

I understand their interest for our family moved to SW Florida in the 80’s from Illinois.  I didn’t have to search too hard as last Monday night I turned on Monday Night Football from Chicago and the temps were below zero.  I remember those days well.

Even people flying in and out of the Fort Myers airport were delayed due to cancellations in Dallas and delays up and down the Eastern seaboard.   Weather up North is frightful and it’s starting early in December.  This could be a long winter if this keeps up.

Chicago on Wed was forecast for snow and a low of -2 degrees.  Green Bay WI was forecast at a high of 2 degrees and low of -8. Minneapolis isn’t forecast to even hit zero.  I’m writing this article on Tuesday just for frame of reference.

Back in the 1990’s I put a little graphic on our website www.TopAgent.com that showed Fort Myers current weather.  It registered like 80 degrees while GunnisonCO was about -40 that day.  I had many inquiries that week from frozen people who were sick and tired of shoveling snow and dealing with the ice.

Every bad winter since then we’ve noticed an uptick in fed up people looking to relocate.  Not everyone is in a position to do so, but every year the baby boomers get one year closer to retirement and they start planning.

Many snowbirds, as us Floridian’s affectionately like to call them, will come down and pick out a place they can purchase and use for vacation until they’re ready to make the move full-time.  Some never make the move full-time but buy places their entire family can come vacation to in cold wintry times just like we have this week.

We call it Season for a reason here in SW Florida because just as we enjoy some of our most beautiful weather of the year Jan-March, the snowbirds suffer through their worst.

Some buyers look for a 1 or 2 bedroom condo on the beach, while others look for a single family home close to the airport for easy access in and out.  Others want property on a golf course so they can golf while their friends back home are suffering through another snowstorm. Still others want a waterfront home on a canal so they can take their boat out and text pictures of the big fish they just caught to their co-workers.  Nothing like rubbing it in.  I can’t tell you how many times customers in our office can’t wait to rub it in to their friends about the place they just bought in SW Florida.

We’ve even had a few customers ask us to email pictures of their new place to their friends just to boast about their new found vacation home.  Of course, many of these vacation owners end up moving here permanently, or split time between the two homes.

The vacation home purchase begins the process.  Typical buyers who buy a vacation home will buy another home down here in the future once they get their job and family in a position where they can move.

So here’s to that process beginning early this year, and with each cold snap or snowstorm we and other Realtors alike look forward to more phone calls and web registrations from our snowbird friends.  Good luck and Happy House Hunting!

If you’d like to search the market as either a buyer or seller, visit www.Topagent.com If you need extra help we’re always available to talk to you and help you make better decisions. Our phone number is 239-489-4042 Good luck and Happy House Hunting!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

We’ve been waiting on inventory levels to rise so that sales can pick up and as is traditional for this time of year, the market has responded. Single family home inventory rose over 400 units from September. Last year inventory rose almost 300 units in October.

Listing Inventory on the Rise Fort Myers Cape Coral

Listing Inventory on the Rise

Inventory levels peaked this January and then began to fall as we outsold inventory as it came to the market. Hopefully our inventory will continue to increase heading into season so we have enough to sell this season.

Median prices are up about 12% over last year. In recent years most of our big price gains have occurred February though May, so we’ll be watching to see this year how season affects prices. We expect to see higher prices this season which sets the bar for the rest of the year. In season we tend to have more cash sales which are less affected neither by appraisal issues nor from changes in interest rates.

Fort Myers real estate sold

The economy seems to be improving which could lead to more market strength; however there are some wildcards on the horizon that could temper market gains.

No one knows what affect ObamaCare will have on disposable income. If people end up saving money on the exchanges they’ll have more to spend on other things, which could help the economy and housing. However, if as is being reported insurance costs rise for a great number of people, this could have an adverse affect on the economy and housing. If more of people’s income goes to health insurance then they have less to spend on house payments or other things. If it adversely affects the economy, this slows down people’s disposable income as well.

If employers either drop coverage altogether after 2014, or cut back on full time employees, this could definitively adversely impact the real estate market. It would also affect the stock market, business, and the economy as well.

Interest rates are set to rise at some point as the government phases out buying treasuries to keep interest rates low in a down economy. The Fed’s have signaled the will end this buyback soon, and the question is simply a matter of when and how they will taper.

If the economy takes off perhaps it can weather these two wildcards. People think the real estate market is either set by Realtors or happens in a vacuum, but the reality is it is influenced by many market forces and Realtors have little to do with prices. Realtors simply help buyers and sellers interpret the market based upon facts and data, and ultimately buyers and sellers make decisions about what they buy and sell.

It’s kind of like walking into a store. If a product presents as a good value, buyers will purchase. If a product is inferior or over-priced, buyers will walk. Buyers today shop many stores and look things up on the Internet. A Realtor or seller can’t just set a price and expect the market to respond. It has to be based off of data and logic.

If you’d like to search the market as either a buyer or seller, visit www.Topagent.com If you need extra help we’re always available to talk to you and help you make better decisions. Our phone number is 239-489-4042 Good luck and Happy House Hunting!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

Back in the spring we sounded alarms that due to rising interest rates and rising prices buyers on the fence should seriously consider purchasing sooner rather than later.  On July 5th we posted a graph on our Blog “What Do Buyers and Sellers Need to Know About Rising Interest Rates?”

Why Now Might be the Best Time to Buy
Reduction in Purchasing Power

Back then we shared a chart which we’ll re-print today that showed how much purchasing power a buyer lost in 2 short months when rates rose a little over 1% in that time.  A buyer lost about 10% purchasing power due to rising rates, not to mention prices have been going up so it became increasingly harder, if not impossible to find the same home for less money.

Why Now Might be the Best Time to Buy

We bring this up because we think it’s going to happen again.  Prices are still rising and rates have dipped a little bit.  As of today Bankrate.com is reporting a 4.33% 30 year fixed rate mortgage.

Economic Indicators Interest Rate Graph

The reason we see rates going up in 2014 is because the Fed has signaled it will cut back in buying US Treasuries that have been keeping rates low.  Market forces would say we should have rates over 5% but the US government has been trying to spur the economy by buying down the rates.  It sounds like robbing Peter to pay Paul, and it is really, but its net effect has been to keep rates down which helps people buy homes.  When people buy homes, they also buy appliances, carpet, paint, etc.  Each home sale sets off a chain of events that pumps money into the economy.

As the economy improves there is more pressure for the Feds to cut back on this program.  Several large industry publications are speculating that possibly ObamaCare will harm the economy buy taking disposable income out of consumers and forcing them to either buy insurance or pay higher premiums.  If this does harm the economy, the Feds will be able to continue buying down the rates artificially.  If the economy would improve rates will go up.

We have artificially low rates that will rise someday, and many are banking on 2014 coupled with rising prices nationally and locally.  Prices may come down nationally for a few months due to seasonality but they do start heading up again in Feb or March if history holds true.

We also posted an article on June 13 on the Blog on how rising prices and rising interest rates affects a buyer’s down payment and monthly payment.  In one year the average down payment went up $8,360 and the average monthly payment went up $173.23  It’s getting harder and harder for buyers to save up the down payment, and the longer they wait the more they have to come up with.  With rising rates, putting more down doesn’t mean lowering the payment.  This is why buying now could save you both ways.

We’re not saying this to spur more sales.  I think the public thinks Realtors just do this because they need more sales.  In fact, inventory is limited and it’s tough finding homes for buyers.  There is no shortage of buyers, there’s a shortage of sellers.  We say this to inform you of your options and hopefully educate you on what’s best for you.  What we say is also backed up by facts and evidence that you can go back and read for yourself and compare to today.

If you’d like to search the MLS check out www.TopAgent.com and hopefully you’ll find a home that meets your needs.  Feel free to call us too at 239-489-4042  Sometimes we know about certain properties coming to the market before they hit MLS, or we may be able to help you with your online search.

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

We’ve noticed a trend developing this year with more home sales in the $500k-$1 Million price range in 2013.  In fact, within the past month or so the Ellis Team has sold and closed 2 homes in this range that were previously on the market and didn’t sell before.

High End Market Heating Up in Fort Myers-Cape Coral-Estero Real Estate Markets

The first home was located in Carillon Woods and had been on the market previously with another agent.  They had several offers but just couldn’t come to any agreements.  We listed the home and raised the price a little and sold it within 20 days.

 

33 Timberland Cir Fort Myers, FL 33919 Market Heating Up in Fort Myers-Cape Coral-Estero Real Estate Markets
Carillon Woods Sold in 19 Days $565,000

 

The second home was located in Belle Meade and had also been listed with another agent.

The first home in Carillon Woods was listed at the correct price but just needed a little negotiation help.  The second home may have been priced a little high in the beginning and needed help finding where the true market was for that home.  The previous Realtor had lots of expensive brochures at the home for the buyer viewing the home but that marketing didn’t necessarily drive buyers to the home.  Even if an agent spent a million dollars marketing the home it still wouldn’t sell if it was over-priced.

8510 Belle Meade Dr Fort Myers FL 33908
Belle Meade Sold $635,000 Nov 8, 2013

 

In both events, the sellers needed guidance and market advice.  Yes, our marketing brought buyers to the table.  In the end, it was the advice and guidance we provided that closed the sale.  Neither sale was a particularly easy deal.  Both buyers were concerned about inspection items and negotiating the best deal they could.  The expertise of the agents involved, for both buyer and seller made these two transactions successfully come together.  These two deals are similar to sales across SW Florida in this price range.

Many people believe the value of a Realtor is the marketing.  Others believe it’s pricing.  Others believe it’s just handling paperwork.  It’s all those things, but it’s a lot more.  A good Realtor handles the emotions, the objections, and the road blocks that are put up as a transaction unfolds and knocks them down.  A good Realtor advises their client on how to act, how to respond, and what to do when difficulties arise.  Experience is the key! Sometimes what a client says isn’t what they mean.  Sometimes what the other side says isn’t what they’re really asking for.  An experienced agent provides the wisdom and can be the difference between listing a home and actually selling one.

Buyers in this price range shop and make sure they get a fair deal.  In fact, they’ll take a bargain if they can find it like any other buyer, but they want to make sure they’re getting a good deal.  Buyers in this range tend to be selective, and why not because they are investing a good amount of money on their home.

Sales in this price range are up 28.4% over last year.  MLS shows 624 single family home sales YTD this year in Lee County versus 486 same time last year.  We’ve definitely seen an increase in higher priced properties this year, and the past month is a perfect example.

If you’re a buyer, you can search for properties in MLS right on our website www.TopAgent.com  If you’re a seller, it pays to consult a Realtor with experience who can properly guide you from A-Z, not stop at C or D.  You don’t pocket the cash until you complete all steps.  Many sellers think steps 1-3 are good enough and they find out later on they either didn’t get the offers they wanted, or they couldn’t get it closed.  It’s usually best to find out your options upfront rather than find out later on.  Call us at 239-489-4042 and we’ll be happy to discuss your situation.

If you’d like to search the MLS, visit our website at www.Topagent.com  If you’re considering selling and would like the Ellis Team to show you what we think we can get for your home, go to www.SWFLHomevalues.com or call us at 239-489-4042  Good luck and Happy Selling!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

SW Florida real estate market continues recovery. Many would say our market is Hot, and compared to 2006-2009 it’d be pretty hard to disagree with that statement. While we are seeing some nice gains, our market is healing, which is a good thing.

SW Florida Real Estate Market Continues Recovery

A couple of things we look for are the percentage of cash vs. financing to identify the liquidity in the market as well as the percentage of traditional sales vs distressed sales. Our market has good volume now and would be higher if we had more inventory to sell.

We’ll come back to inventory in a moment. As you can see from the attached graph, traditional sales are above 70% of the total sales. Back in 2009 they were close to 20%, so that’s a big swing.

Cash sales are dropping as a percentage of total sales. Many would say that’s a bad sign, but it’s actually a good sign. Banks add money to the market. For awhile banks weren’t lending much. There is a cap on cash sales and the amount cash buyers will pay, but not so much on financing. Buyers will use leverage to purchase more, so it helps add liquidity to the market. Cash is always good, and having cash buyers is a good thing, but relying on them is a sure fire way to a stagnant market. Infusing capital into the market helps pull the market higher, and we’re seeing definite trends in financing. Banks have finally made it possible to borrow again, and that will help us continue this recovery.

I recently had a potential seller ask me why I didn’t say the market has fully recovered and that we were in full blown market mania. When I showed the seller how much his home value had increased from 2009 he was impressed, but he had refinanced his house during the boom and owed more today than it’s worth. Had he not taken money out at the height of the market he would have had equity, but since he did, he was still underwater. He chose not to sell today but we’d revisit the issue next year.

This is exactly why I say we’re still recovering. Back in 2005 we had artificial influences affecting the market, and we still do today. Today the artificial influences are the fact that some sellers still owe more than their property is worth today. If we didn’t have upside down sellers we’d have more inventory, and if we had more inventory we’d have more sales.

Short sales, foreclosures, and traditional sales in Fort Myers Cape Coral Florida real estate market

Some sellers are above water but just don’t like their equity position because it doesn’t leave them much down payment for the next home. In any event, equity positions are holding back many sellers who’d otherwise like to sell but are still trapped in their homes. This is perhaps one of the last barriers to calling this a full blown market recovery.

When the economy finally takes off, we could move closer to that point. Signs point to a recovering economy, but things like ObamaCare could stall that if companies cut back to stay afloat. We’re also hearing from small business owners who are facing large premium increases, so this cuts into their disposable income and their real estate purchasing power. Something tells me that when fully implemented, the public will turn to their congressmen and demand some changes, and they’ll make some changes to lessen the effects.

In the meantime, let’s keep this economy rolling, and keep the banks lending. We’re doing our jobs in the trenches and we’ve got this market heading in the right direction. If the banks and Washington all play nice, 2014 is going to be a great year. To search the MLS go to www.TopAgent.com You can always call us at 238-489-4042

If you’d like to search the MLS, visit our website at www.Topagent.com  If you’re considering selling and would like the Ellis Team to show you what we think we can get for your home, go to www.SWFLHomevalues.com or call us at 239-489-4042  Good luck and Happy Selling!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

Battling low appraisals.  In the past few months I’ve had agents call me from all over the country asking how we’re handling properties that sell for more than the appraisal.  We’re tied into dozens of private Realtor discussion boards, Realtor networks, and organizations and this topic has been popping up frequently, so we thought we’d take a moment to help those in SW Florida with some tips we’ve learned over the years to combat this problem.

Battling Low Appraisals

Let’s identify the problem.  Appraisers are looking in the past for data that supports today’s value, but the problem in a rising market is that the data in the past is lower by definition because prices have been rising.  When a market is on the move appraisers can make a time value adjustment but it seems they’re quicker to make adjustments in a declining market than they are in a rising market.

Here are some tips for agents to get appraisals up to market value:

  1. Once property goes pending make showings by appt only.  When appraiser calls meet them out there with comparables you used to value the property.  Appraisers have a difficult job.  They’re underpaid and expected to turn these around within a day or two.  If you have legitimate information that may help them it is usually welcomed.  If you go in with an attitude and trying to persuade them to come in with a value just because you need a sale at a certain price it won’t work.  Appraisers legitimately want to get it right; they just need facts that fall within accepted guidelines to backup the value they issue.
  2. If the loan was placed with a mortgage broker and not a direct lender and you feel the appraisal is bad, the mortgage broker can request an appraisal from a separate appraisal management company if the lender they’re brokering it to accepts from more than one management company.
  3. Since HVCC (Home Valuation Code of Conduct) went into effect May 1, 2009 lenders can no longer work directly with appraisers.  This is why agents may only get one chance to talk to the appraiser at the time they inspect the home.
  4. FHA appraisals are good for 6 months, so once it’s completed you’re pretty much stuck with that value.  You can dispute a FHA appraisal and provide documentation and it can be amended, but this is not guaranteed.
  5. The seller can pre-pay the mortgage insurance which might eliminate the need for the property to appraise
  6. If an out of town appraiser calls with an order to appraise the home, don’t let them in.  Call the lender and tell them you want an in-town lender and to re-order with another appraiser.  Over the years out of town appraisers unfamiliar with the local market have wrecked many deals.

 

Remember one thing about the new HVCC.  They have cut what they pay the appraisers and shortened the time the need results.  When you call an appraisal management company to ask for business the typical question is what is your cheapest price and fastest turnaround.  This isn’t always conducive to an appropriate value on the home.  Perhaps one day somebody in authority will re-work this process as it can hold back the real estate market.  Thank Goodness we have cash deals bolstering the market.

If you’d like to search the MLS, visit our website at www.Topagent.com  If you’re considering selling and would like the Ellis Team to show you what we think we can get for your home, go to www.SWFLHomevalues.com or call us at 239-489-4042  Good luck and Happy Selling!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

For the 3rd month in a row median sales prices increased in SW Florida.  Median sales prices are up 24.8% over last year so it’s safe to assume all properties in SW Florida are sky rocketing, right?  Not so fast.  Media prices county-wide are increasing, but that doesn’t mean every property is going up.

September 2013 Real Estate Sales Numbers Just Released for SW Florida

September 2013 Real Estate Sales Numbers Just Released for SW Florida

Average sales prices are coming down.  Since April the average sales price is down about $60,000.  So how can two sets of data tell two very different stories?  The answer is, they’re not telling two stories.

Average sales price is influenced by high end sales.  If there are several multi-million dollar sales it can skew the average up.  When using the median price, it really doesn’t.  Let’s say for example there are 10 sales of 5 million dollars+.  That’s at least $50 million in sales in just those 5 sales.  By using the average, that adds $50 million to the total number, but by using the median it just counts as 5 sales at the top.  Remember, median sales are the number in which half the sales occur at or below a certain price and the other half are at or above that price.  When we use average they all get thrown in together and divided by the total.

The average price is more seasonal because that’s when our high end buyers are visiting Florida and purchasing higher end homes.  This is why you’ll always see the peak of the average market around March-May.  They typically go to contract January through April and close March through May, sometimes even June.

Realtors like to use the median price because it’s more stable and less affected by a few sales.  Median prices have been fairly constant to the upside.  Even the median can have fluctuations if certain closings get delayed.  A government shutdown for instance could delay certain types of loans which would disrupt closings.  One year we had flood insurance coverage lapse and we couldn’t close until the program opened up again.

Speaking of government shutdown, the government is open since last time we wrote an article.  Yeah!!!!  Don’t hold your breath though as we might be right at it again in a few months.  November is shaping up to be a big month for the Ellis Team.  Let’s hope that’s indicative of the entire market.  Buyers have been particularly active in recent months.  October has been a good month too, but November is shaping up to be fantastic.

Inventory is on the upswing, which is good.  We need more inventory to sell.  We’ve even been going out to developers and builders looking over their inventory as sometimes we just don’t have much to sell in certain price points with certain features.

If you’re considering selling, now might be a good time to call us. 239-489-4042  We recently listed a home that was previously on the market but failed to sell with another Realtor.  We raised the price and marketed it using our advanced marketing system and it sold in 19 days.  If you price it correctly and market it where the buyers are, it should sell today.  Call us while prices are rising and before interest rates creep up next year.  Good luck and Happy Home Selling!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

Official SW Florida sales numbers are out for SW Florida and August showed a slight rise in median price over July’s numbers, and a 26.9% rise over last year’s number.  As I write this article Congress has still not approved the re-opening of the government or a debt increase, so those are two ominous signs that could definitely impact not only the local Fort Myers/Cape Coral real estate markets, but also the entire US market overall.

Prices Holding Steady Slight Rise in August.

The other piece of good news is that listing inventory rose slightly this past month, and pending sales rose as well.  Foreclosures and short sales are way down from a few years ago, and money is creeping into the market as lenders are starting to lend again.  Cash is always good, but when 70% of the sales were cash a few years ago, it limits the prices.  Now that cash sales are down to 50% we see more money coming into the market fueling growth.

We produced a short video on our YouTube channel that shows all of these graphs and how it’s affecting the market.  You can view it from our website www.TopAgent.com and click on Future of Real Estate or visit youtube.com/brettellisfl

A solution to the budget crisis might also help keep interest rates low, although we do expect an interest rate increase by next year no matter what Washington decides.

The SW Florida business climate is as hot as the temperature is outside.  Hertz is relocating its world headquarters here and other companies are looking here as well.  We really are on the rise and all Realtors I speak with are optimistic about 2014.  After suffering 6-7 long years through a real estate mess people around SW Florida are welcoming positive news, and we’ll take it in bunches.  Lord knows we fell on hard times and had bad news in bunches in the past, so I don’t think it’s unreasonable to bask in the sunshine of an upward market.  We deserve it.

We can probably expect anemic growth until season starts in full force in January.  In past years September through December has translated into bouncing along the status quo.  Personally, this October and November are shaping up to be very good months for the Ellis Team, so 2013 might be better than past years if that is any indication.

Next week the Greater Fort Myers and the Beaches MLS is scheduled to begin using a new MLS system.  This will make gathering statistics easier and less duplication as agents won’t feel the need to enter listing into two MLS’s to gain exposure for their seller.  Going forward this provides an opportunity to provide and even more accurate picture of the listing inventory and closed sales.

We’re in for some exciting times in the SW Florida real estate market.  We’ve enjoyed bringing you the latest trends and statistics, and going forward we’ll be able to bring you that quicker.  We won’t have to wait for official numbers to be released from the board.  We’ll all be working from one set of data, and that’s exciting.

If you’d like to search the MLS like a Realtor, go to www.TopAgent.com  We have a basic search and a tab for an advanced search so you can enter more criteria.  Good luck, and Happy House Hunting!  And remember, we’re here to answer your real estate needs should you need an agent. 239-489-4042

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

Like clockwork closed sales are on the rise starting in August. Last year we closed 896 single family home sales and in August 2013 we closed 1,069 for a 19.31% gain. This is especially interesting considering inventory levels are low. Closings on the Rise in SW Florida.

Closings on the Rise in SW Florida

Higher closed sales and lower inventory levels led to an increase in prices again. Median prices in August 2013 were $165,000 which was up 26.9% over last year’s $130,000 level, and average home prices were up 26.4%.

Single family home listing inventory in SW Florida Fort Myers Cape Coral real estate market

We also like to look at month over month prices and median sale prices increased 1.23% from $163,000 in July to $165,000 in August. Average price gains were only .28% but a gain nonetheless.

As we write this article the government is still shut down and it’s impossible to tell what effect this will have on the economy, financing of mortgages, both conventional and government mortgages, and closings in general.

The consensus is that a prolonged shutdown will affect the economy as we’re taking hundreds of thousands of paychecks out of the economy. The larger affects could be to the confidence of the consumer, so suffice it to say Congress and the President should be talking instead of blaming each other.

Should Washington get its act together we could be in for another good season. 2014 is shaping up to be a better year in many regards and the last thing we need is government getting in the way.

Next week our MLS systems are supposed to merge. I’ve heard Oct 12 is the date and Oct 21. In any event, after the glitches are worked out, using the MLS and gathering data should be much easier for Realtors and consumers. Our website Topagent.com lets you search the entire MLS. Soon the data feeds should contain listings from Naples to Cape Coral. Sanibel and Captiva will be the only area not included in the new MLS although many of the listings end up in the common database anyway as island agents want the extra exposure.

After the MLS merger there will be increased pressure on small MLS’s like Sanibel and Captiva to join. Typically Sanibel and Captiva have resisted as they’ve wanted the island to themselves and have tried to shut out Realtors from off the island, but in this day of technology that may be increasingly harder to do as buyers and sellers with multi-million dollar properties demand more from their agents.

If Naples can join a common database so too can Sanibel and Captiva.

If you’re a seller, now is the time to gear up your home sale for season. Give us a call at 239-489-4042 and find out how we sell our homes fast and for more money. We’ve got a marketing system that works and we’ll be happy to share with you how we do it.

Good luck and happy house hunting!
To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

Most SW Floridians don’t realize that the US government raised rates on flood insurance back in 2012.  The Biggert-Waters Flood Reform Act of 2012 was signed into law July 6, 2012 and is being phased in over time.

Big Changes in Flood Insurance You Need to Know
Danger- Rising Rates Could Keep You Underwater

Big Changes in Flood Insurance You Need to Know

Realtors have been sounding alarms in Tallahassee and elsewhere because flood insurance rates under the new program could double or triple, effectively pricing new homeowners out of buying certain properties.  To make matters worse, FEMA (Federal Emergency Management Agency) has reclassified certain properties that weren’t previously located in a mandated flood zone into a now mandated flood zones.

Some homeowners have never had flood insurance on their property but when they go to sell it will be required.  Some homeowners have received letters from their lenders requiring them to obtain flood insurance.

The issue is Congress is essentially raising taxes by raising flood rates and making more people buy flood insurance.  The program was losing money so something had to be done, but the Biggert-Waters Flood Reform Act of 2012 said FEMA was to provide an affordability study on what the effects of implementation would be on consumers.  That study was to be completed by April 2013 but has not been done yet.

Florida Realtors President Dean Asher spoke to the members of the Florida Cabinet recently at the request of Governor Rick Scott.  He urged the Florida Cabinet to call on Congress to act now to delay “implementation of the Act’s rate increase provisions for grandfathered and newly purchased properties, pending FEMA’s (Federal Emergency Management Agency) report to Congress on the results of the affordability study that was required by Biggert-Waters.” That still-unknown affordability study was supposed to be submitted to Congress this past April, he pointed out.

Existing homeowners were protected by phasing in the rate increase but new homeowners have no such protection.  This may limit the growth in real estate as added costs to the buyer curtail how much they can afford to pay for the home.  It’s a total cost issue.  A buyer must weigh cost of home, interest rate, down payment requirements, home owner’s insurance, condo or HOA fees, taxes, and now rising flood insurance rates.  The total cost impacts buying power, and if a buyer is impacted you can bet sellers will be too.

FEMA has recently updated its website to help consumers identify a property’s flood zone and estimate the cost of a new policy.  It can be found at www.FloodSmart.gov The website gives a large range of costs but at least you’ll get an idea of a low end and top end and a list of agents that can write flood policies to check with.

We’re not sure what effect states can have on the federal government, so it’s probably safe to assume flood rates are going up and it may impact all of us in some form. We welcome any attention the State if Florida can give to the US government on this issue.

New disclosures to purchase contracts have just been released for new sales contracts.  Be sure to factor in the new changes as it could affect your cost of ownership.

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

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