The Cape Coral-Fort Myers area is the second most undervalued residential real estate market in the country, according to a new research report

That means this is a good time for investors looking to buy land, experts say.

 "Is land undervalued?" asked Fort Myers-based real estate broker RandyThibaut of Land Solutions. "Yes and no. Land prices for residential development land has bottomed out, it can't get much lower. But not commercial property."

Douglas Hannah, a partner in Fort Myers-based Silverleaf Capital Group LLC, which puts together deals for investors, said a lack of demand has caused prices to fall sharply since the boom ended late in 2005.

"Because it was overvalued (in the boom), it's really swung back," Hannah said. "We just bought some freshwater lots for 10 grand apiece that would have been 150 grand four years ago. They're down more than 90 percent. Are they worth 10 grand today? Maybe they are, maybe they're not, but because there's an oversupply of homes, there's no market for them here.

There are a lot of local opportunities now, Hannah said. We're aggressively bullish on real estate in Southwest Florida right now," he said.

Lee County's homes, with a median price of $112,800, were selling for 40.5 percent under value in the fourth quarter of 2009, down from being overvalued by 31.5 percent at $236,200 four years earlier, the report by financial consulting company IHS Global Insight states. Las Vegas, Nev., was No. 1, undervalued by 45.3 percent at $123,000 compared to being overvalued by 35.3 percent at $287,000 four years earlier.

 But Michael Timmerman, a Naples-based senior associate with Fishkind & Associates, an Orlando-based economic consulting firm, said he doesn't agree that Lee County's property values are that much out of whack. The Global Insight survey, released Friday, looks at too short a time frame to be accurate, he said. "From the point of view of overall fundamentals, if you look at 1980 to today, we're probably about where we should be, maybe a little below that," Timmerman said. "It's all in the eye of the beholder."

He was also skeptical about another, contradictory survey released this week by Money Magazine predicting that Cape Coral-Fort Myers home values will fall 5.6 percent in the coming year. The report predicts the Naples area will fall 10 percent. People generally are better off not making decisions based on how they think home values will change, Timmerman said.

 "Real estate is for use, your home, your office," he said. "That's how real estate should be viewed."

Source:News-Press 3-25-2010

Whether you are buying your first home, or your fifth, the process of buying a home is a detailed, time-consuming venture. At the same time, it’s an emotional period laden with difficult choices. You want to ensure that the home you purchase meets your family’s needs now, and in the future.

Each of these decisions often involves money. When you consider all that money represents, you’ll want to ensure that you don’t pay too much. This article helps you become a savvy buyer, by pointing out some of the pitfalls inherent in the home-buying process. These include such things as knowing what you want before you begin shopping, taking your time to shop, choosing the right realtor, and remaining objective while viewing potential homes. With this information, you’ll be closer to finding your ideal home.

1. Before you shop, develop a needs vs. wants list 
Everyone has a picture of an ideal home. This would include all the features you not only need, but have long desired. However, when it comes time to buying a home, the desires cost more. While it’s nice to think about having a beautifully landscaped backyard, or a solarium, perhaps even some built-in appliances, these are usually considered luxury items, which can add considerably to the price of your home.

That’s why it’s a good idea to develop a needs and wants lists. With this list, begin with items you really need like adequate space, garage and number of bedrooms. For most people, basic needs should be considered first. After that, you could consider additional desires, if you can manage these benefits financially.

With such a list in your hands, you’re less likely to be caught up in the excitement of the pursuit. You’ll have a good idea of what you want, within you price range, and if you can afford those additional items.

2. Get pre-approved prior to shopping
Visit your financial or lending institution prior to home buying. Quickly, you’ll know the amount of mortgage you’ll receive. Be sure to get a mortgage commitment in writing. Most importantly, you’ll tell sellers that you are a serious prospect. Depending upon market conditions, a seller may lean towards an unconditional offer. You’ll have less negotiating power if you have to wait for mortgage approval.

Banks and financial institutions have developed many programs especially for home buyers, be that first-time buyers or those with equity in their homes. When you review your needs and objectives with a lending officer, you’ll be one step closer to purchasing your home.