Scott & Jennifer's Blog

Absolute Auction!!

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Wed, 18 Nov 2009 11:05:47 -0800

Southwest Airlines coming to NEW Panama City Airport!!

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Wed, 21 Oct 2009 15:30:26 -0700

Southwest Airlines announced today that the they will be providing service to the Northwest Florida-Panama City! This is HUGE for our area. Our market is stable and growing and homes and condos are at an all time low!! Check us out!! Now you will be able to get here quicker!! We are very excited about our new Air Port and what it will do for our area!!

http://www.blogsouthwest.com/blog/news-flash-new-service-coming-next-may

CDPE - You should have it!!

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Tue, 22 Sep 2009 13:55:28 -0700

The Neighborhood of Make Believe

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Tue, 28 Jul 2009 07:08:11 -0700

As a Realtor, I must first disclose that YES I too have taken an overpriced listing. However these days things are different. We need to pull our customers out of the Neighborhood of Make Believe! Many people that bought homes during the "Boom", with a "Creative Home Loan" are going to have to realize that their money was made up front. There is no easy way to say it except just SAY IT! When taking a listing I always take a Sellers Net Sheet with me with the "TYPICAL" closing costs for the seller on it. This way they will see a pretty close estimate as to what they will be putting in their pocket IF the home sells for the listed price. If that price goes into negative numbers, I am not taking that listing, unless they are realistic and decide on a short sale or have cash to bring to the table. As Realtors we need to understand that there are years worth of inventory out there, Why would you spend money on a listing that is not going to sell in this market. You need to educate your seller and make sure they are not living in the Land of Make Believe.

Some people are in situations where they HAVE to Move, as professionals we need to educate them what their options are. If their house is not worth what it once was then they need to know that. It is much easier to let them know up front then to do it while you are trying to sell the house. Make sure your seller is not living in the LAND OF MAKE BELIEVE.

Buying a home?

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Tue, 26 May 2009 13:34:41 -0700

Unlike an automobile, you can't test drive a home before you purchase it. You have to base your decision on other factors such as layout, condition and much more. And, of course, the seller is obligated to disclose the property's condition that may alert you to issues such as previous mold, defective water heater or leaky roof. Yet, that still doesn't always paint the entire picture. Here are six questions you should consider asking the seller to gain additional insight about the prospective home before you make a final decision.

1. Why is the seller selling the house?
This question may help you evaluate the "real value" of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly.

2. How much did the seller pay for the home?
In some instances, the answer to this question may help you negotiate a better deal. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.

3. What does the seller like most and least about the property?
By asking the seller what he or she likes most and least about the property, you might get some interesting information. In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a "happening neighborhood," the buyer might consider this a negative factor because the area may be too noisy or busy for his or her taste.

4. Has the seller had any problems with the home in the past?
It is also a good idea to ask the seller if he or she has had any problems with the home while living there. Has the seller had problems with a leakage from the upstairs bedroom in the past? If so, even if the leak has been corrected, the floor and walls around the bathroom might have been damaged. You should check that these items were repaired properly.

5. Are there any nuisances?
Use this question to find out about barking dogs, heavy airplane traffic or even planned changes to the community, such as a planned street widening. This may give you insight on why the seller is really moving.

6. How are the public schools in the area?
Because the value of a community is usually greatly influenced by the public schools in the area, finding out the buyer's perception can give you some insight about the quality of the area's schools.

Knowing all you can about a prospective home will help you make a more informed decision as well as offer. Your real estate professional can be a great resource in helping you get your key questions answered and give you advice on how to evaluate your findings.

Why Panama City Beach?

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Sun, 15 Feb 2009 20:26:41 -0800

Here is part of an article that was in Micorsoft Money Feb 09 addition!

Pick your sweet spot

The current downturn has hit virtually every corner of the market. So you can find deals almost anywhere; the trick is to home in on locales where the houses also have a good shot at maintaining their value going forward and eventually appreciating. Your best bet: areas with large employers in growth industries such as health care and technology or that offer other extras that will help fuel expansion. Examples include the new airport planned for Panama City Beach, Fla. and the Goldilocks weather (not too hot, not too cold) in the Carolinas, which have seen a recent influx of new residents from the Deep South, typically former northerners who are coming partway back up the coast to recapture a taste of the four seasons.

See complete article at this link.

http://money.cnn.com/2009/02/11/retirement/retirement_home.moneymag/index.htm

Why would you buy anywhere else?

For more information on Panama City Beach Florida BUZZ THE BOWMANS 850-258-1509 or visit us on the web at www.PanamaCityHomeSales.com

CDPE - You should have it!!

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Thu, 12 Feb 2009 09:00:27 -0800

If you are doing short sales you need to look into this. This is the best training I have had in years!! I am confidant that I will be able to get more short sales closed by having this designation!! Special thanks to the North Florida CRS Chapter for bringing this to our area!!! This should be a REQUIREMENT for anyone doing short sales!!

Open Houses haveing a comeback??

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Thu, 12 Feb 2009 08:52:18 -0800

I sat an open house this past Sunday in a gated neighborhood. I put the code on the keypad so folks could get in (which is against the rules!!), put it in the paper and had 5 people show up. they all LOVED it and ended up writing an offer and having it accepted later that evening!! Are Open Houses coming back??

Home Savers Seminar

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Mon, 02 Feb 2009 15:24:13 -0800

Trouble paying your mortgage?
Trouble trying to make ends meet?
Don't want to go into foreclosure?
Don't want to file bankruptcy?

Then we have the seminar for you!

This is designed to inform the public how to avoid losing your home in these hard economic times!

There is a way out!

February 19th, 5-8pm

Association of Realtors

1123 Harrison Ave, Panama City, FL 32401

This seminar is FREE but PLEASE RSVP so we have enough material for everyone!!

850-784-1435

ask for Terry or Jennifer

Government Bail Out for Home Owners

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Sat, 24 Jan 2009 06:39:24 -0800

Before you file your taxes this year, don't forget about the $7500 tax credit for first-time home buyers, which was enacted by the 2008 American Housing Rescue and Foreclosure Act. Designed to help stimulate interest in the housing market, this temporary provision provides a first-time home buyer (someone who hasn't owned a home in the last three years) a tax credit of up to $7500 for homes purchased between April 8, 2008 and July 1, 2009. Basically the tax credit, which must be repaid over 15 years, is an interest-free loan from the government to help you offset the costs of home ownership.

But here's the best part. The law allows qualified taxpayers to take the credit against either their 2008 or 2009 taxes. This means, if you qualify, you can buy a house this year before July 1st and receive the credit on the 2008 tax returns you're filling out right now. Imagine having an extra $7500 in cash to pay bills or credit cards or even pay for renovations on your new home. If you choose to utilize the credit on your 2009 returns, your tax professional can help you reduce income tax withholding up to the amount of the credit. This will help you to increase your take-home pay throughout the year to save money for a down payment for a qualified purchase before July 1st.

There are certain income restrictions and rules for repayment, but give us call today to learn more about this valuable government program for first-time home buyers.

when looking for homes in Bay County, Gulf County or Franklin County There is only one phonecall you need to make.

BUZZ THE BOWMANS

850-258-1509

or visit us on the web at

www.PanamaCityHomeSales.com

Panama City Florida Welcomes NEW International Airport- Construction update

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Wed, 07 Jan 2009 07:53:32 -0800

PANAMA CITY - BAY COUNTYAIRPORT

CONSTRUCTION PROGRESS REPORT

NEW PANAMA CITY - BAY COUNTY AIRPORT

PANAMA CITY, Florida (December 29, 2008) - The Panama City-Bay County International Airport team announced today that the construction at the new Panama City-Bay County International Airport continues to run smoothly and is currently about 3 and a half months ahead of schedule.

"The entire project is about 35% complete, with the heavy civil portion, which includes the main runway, approximately 66% complete. In general, almost 250 workers are regularly onsite each work day. Offsite quarries, asphalt plants, concrete pipe plants, truck drivers and other ancillary activities will normally employ another 350 people in significant activity. As the terminal construction and utility installation contracts begin to ramp up after New Years, these numbers will increase. The foundation for the terminal building is underway with concrete being placed in the footers. Foundations are also underway for the various support buildings and the air traffic control tower. Concrete is being produced by local plants (offsite). Approximately 40,000 tons of asphalt has been placed on the project to date. Contractors are currently paving the main apron areas. Approximately 55% of the main runway's 15" concrete paving lanes are now in place. To date 5.4 million cubic yards of earth has been moved on the project site. Work on the underground utilities portion of the project is expected to begin on January 5, 2009."

This is the first "GREEN" airport to be built in our country! It is going to bring jobs and new industry to the Panhandle of Florida!

If you need more information on the New Panama City International Airport, visit our website at

www.PanamaCityHomeSales.com

5 Top Places to buy a home

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Mon, 20 Oct 2008 16:39:06 -0700

This is a link to a fantastic article that may help these 5 communities come back to life in the Real Estate world. Our market is slow but things are selling, it is a work in progress and if you are not working you are not selling. However if you have customers in one of these areas its a great article to pass on to them about home prices in the Top 5 places to buy a home.

http://www.smartmoney.com/spending/deals/Top-5-Bargain-Places-to-Buy-a-Vacation-Home-23773/

WILL FEMA BE THERE TO HELP YOU????? I BEG FOR YOUR HELP.

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Thu, 16 Oct 2008 11:33:13 -0700

Please pass on to others!! These people need some help!

Via Christina Strommen Stevens:

I beg you to read this blog post and pass it on. Galveston needs your help. This could be you no matter where you live. Mother nature can rear her ugly head anywhere. Maybe not in the form of a hurricane.

This post is about Galveston residences who are getting no help from our government. Residents who may have insurance ye the coverage is not enough. The coverage offers them no temporary housing. Did you know that the national flood coverage does not offer benefits for any temporary housing aid?? This falls under general homeowners yet when your house floods you can't use that coverage.

PLEASE READ THE ABOVE AND PASS THIS ON. WE REALLY NEED YOUR HELP AND THE MEDIA DOES NOT CARE.

This post is focused on my bother yet there are countless other just like him. His friend was granted a FEMA trailer yet they can't put it in Galveston because its a flood zone. HELLO Katrina was a flood zone. ALL OF THE GULF COAST IS ARGUABLY A POSSIBLE FLOOD ZONE. Parts of Vegas flooded once due to rain when we lived in Nevada.

Help us please. It could be you next. Pass this on.

NEW AIRPORT IN FLORIDA

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Wed, 01 Oct 2008 10:08:38 -0700

Well you would think someone would be shouting this from the roof tops! But they are not. The fact is Panama City Florida is getting a new INTERNATIONAL airport that will open in 1 year 7 months!! I am an avid watcher of CNN, CNBC and listen to many talk raido shows around the United States. However I have not heard the mention of this at all. What is the probelm?? The United States has not seen a new INTERNATIONAL airport since before 9/11. Would you not think especially since this will be our link to the outside world without having to travel through Atlanta, and the fact that it is America's 1st GREEN Airport. That someone would be paying more attention to what is happening here in the panhandle of Florida.

If your interested here is a link to the new airport website to see the progress they are making.

http://newpcairport.com/

Reduced to sell!

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Tue, 23 Sep 2008 09:53:11 -0700

You'll be amazed at this beautiful home full of upgrades with no expense spared in a custom home, If your looking for a custom built home, look no further - this is the home of your dreams. This beautiful Arthur Ruthenberg, Baber Construction home awaits you. Built for the 2005 Bay County "Parade of Homes", this home features all the upgrades you would expect in a home of this caliber. You'll be impressed from the moment you walk through the front door. From the lavish tile flooring with custom accents, to the custom Cherry kitchen cabinetry, this home says "QUALITY" throughout. You'll lose yourself in the magnificently tiled master bath complete with Jacuzzi soaker tub. This four bedroom and three bath home was designed for someone that appreciates the finer things in life and also includes, raised dishwasher, stainless appliance package, granite counter tops, rain soft water softener, surround sound, 2 living areas, gas fire place, built in shelves, formal dining room, custom paint, spacious bedrooms, high ceilings, and custom trim detailing throughout, fenced yard, 3M Hurricane film on the windows and oversized 3 car garage for plenty of extra parking. Located on a quiet community pond, See it today because it will be gone tomorrow. Click on the picture for additional photos and virtual tour. All sizes approximate, please verify if important

$465,000

Call me for more information on this home and others!

Short Sale Update

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Sat, 20 Sep 2008 20:30:41 -0700

Ok several months ago I posted my short sale nightmare! Well the same house is FINALLY going to close! September 29th we are scheduled to close on the house and I FINALLY have a clear to close letter from Country Wide! After 4 buyers we are finally in the home stretch. I have had several short sales but none like this. It has been a long 9 months but next week it will be all over. We are already through the loan process and the majority of the process is over. We just need to get through underwriting and then get it closed. I am still keeping my fingers crossed because it is not closed YET but it looks better then it has in months!

Reduced!! Beautiful home Panama City Beach

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Sat, 20 Sep 2008 20:22:24 -0700

Beautiful home in Palmetto Trace, walking distance to Pier Park!

$345,000

This home is in the desirable neighborhood of Palmetto Trace, Home offers spacious living, and an easy flow for entertaining. Home has 4 bedrooms 3 baths and an office, is walking distance to Pier Park and Frank Brown Park. Neutral colors and great location. Seller is motivated! Come see this house today!

Seller will look at all offers!!

Great Lots in Panama City Beach!

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Sat, 20 Sep 2008 19:43:53 -0700

Are you looking to build your dream house in Panama City Beach! Check out these fantastic lots in Panama City Beach!

This is one of the premier oversized Waterfront lots in this beautiful Mediterranean waterfront community in Panama City Beach, Finisterre, overlooking Grand Lagoon, Bay Point Harbor and St. Andrews State Park This lot can accommodate your own private dock at your back door. Gated community offers so much for someone looking to build a home on the water.

$1,000,000

This is one of the premier Waterfront lots in this beautiful Mediterranean waterfront community in Panama City Beach, Finisterre, overlooking Grand Lagoon, Bay Point Harbor and St. Andrews State Park This lot has a community boat dock already in place just along your property line and can accommodate your boat at your back door. Gated community offers so much for someone looking to build a home on the water.

$350,000

Remember my short sale

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Mon, 08 Sep 2008 15:55:20 -0700

Ok a few months ago I wrote about the short sale that never ends, well guess what it still has not ended. I am on my 4th buyer and I am waiting to see if Country Wide will stall on yet another buyer! I have a great negotiator so maybe this will be it. Catch is,,,,, we have to close by the end of the month for the buyer to get the ameridream program. This will be interesting.

We shall see..... Ill let you know if I loose yet another buyer or if we end up selling it!

Facebook and Real Estate

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Sat, 23 Aug 2008 21:11:14 -0700

Just wondering if anyone is using Facebook for Real Estate, I have quite a few friends added to me but wondering how I can sell Real Estate using it? IF you are using Facebook to sell Real Estate will you please share?

Some other Great Free sites I have found are postlets.com, craigslist.com

TS FAY

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Sat, 23 Aug 2008 21:08:49 -0700

Ok so its been raining here in Florida for I don't know forever it seems like. Tropical Storm Fay went off the west coast of Florida and right back on to land this morning. We had the eye right over us here in Panama City but I will tell you I am SOOOO Tired of this storm! I feel like a duck! we have standing water everywhere and the poor people on the east coast! Man did they get some rain! Brevard County took a beating. Hopefully she will be gone tomorrow and we will see the sun Monday. Great just in time for work! Praying for sun for Labor Day weekend! Yea

Should you use a Realtor?

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Sat, 23 Aug 2008 20:34:57 -0700

With just the stroke of a few keys, you can find myriad resources on the Internet to help you in your search for a new home. Besides property listings, you can find out about specific communities, schools and mortgage options. Prudential Real Estate has made three great resources - Environmental Profile, Property Profile and Value Range Estimate - available on prudential.com/realestate that provide detailed real estate information just by keying in a U.S. property address.

    With this wealth of information at your disposal, do you really need a real estate professional to represent you? Absolutely.

    Think of it this way, when you go to an unfamiliar place, sure you could do a self-guided tour. However, your tour is much more rewarding and enriching when you have someone who is familiar with the location to guide you along because he or she has inside knowledge on the history, culture and stories that you may not have otherwise received.

    The same can be said about sales professionals. Their role is more than someone to drive you around from property to property. They can be a great resource, especially to homebuyers relocating from other communities. He or she knows the local area including home values, taxes, utility costs, and school data, and may even be knowledgeable about resources pertaining to your special interests or needs. For instance, should you require help relocating an aging parent with you, your real estate professional may be able to direct you to local services or organizations for the elderly.

    A sales professional can familiarize you with the processes involved in buying a home, alert you to potential risks, help you determine how much house you can afford, explain alternative financing strategies, as well as provide tremendous moral support.

    Another benefit is having a strong advocate during the negotiating process. Sales professionals can help you objectively evaluate an offer then work to negotiate a favorable contract. During the process, he or she will review the contract and obligations before you sign, explain how contingencies and release clauses work, and so on.

    And something easy to overlook is our familiarity with the complexity and risks inherent in the process. In the years I have been practicing I have been continually amazed at how quickly a seemingly simple transaction can grow legally complex and risky. When complex questions arise, a sales professional can help you quickly locate an attorney or other licensed professionals whose services you may require, such as home inspectors, engineers, surveyors and lenders.

    As your single point of contact, a sales professional can manage the entire transaction including coordinating inspections, keeping in touch with the other real estate professionals, managing the documentation for the loan process, monitoring deadlines associated with contingencies, providing applicable paperwork, estimating closing costs, and helping prepare for a smooth and uneventful closing.

    If you're about to begin the process of buying or selling a home, consider involving a real estate professional. When the stakes are high, it's comforting to have a specialist by your side.

Etiquette at the office meeting!

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Tue, 19 Aug 2008 15:38:48 -0700

Just wanted to point out for those who can't get it together. When your company offers an office meeting, it is to inform people in the company as to what is going on. So when there is an office meeting the polite thing to do is to turn off your cell phone, close your laptop and don't make comments out loud that are distracting to other people.

This is also a great time for Brokers to offer training to their agents, it is very distracting to agents when your cell phone is going off or your typing away on an email or chatting in your own conversation during these types of training classes!

Is there not a book on Office Meeting Etiquette??

Pier Park in Panama City Beach! Its happening!!!

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Tue, 12 Aug 2008 08:29:59 -0700

Pier Park is up and running! Take a look at the pictures of this place, Panama City has needed a great Shopping place forever! Now we have it. I was at Pier Park last Friday night with my family and there were bands playing on the open court yards, people sitting around talking enjoying each others company, having a cold drink, kids playing on the open grass areas, What a time it was! These are great updates that get posted by PCBDaily! Read them and see what is happening in the great Northwest Florida Region that was once named the "Redneck Rivera" Not anymore! We are uptown now! And we LOVE IT!

Pictures of Pier Park, Post 2 of 2

Posted August 8, 2008 @ 10:00 am by Jason Koertge, Filed under: Pictures, Pier Park, Uncategorized

Yesterday was hot, very hot. The humidity kept me moving quickly in anticipation of getting back to cooler temperatures. Pier Park was bustling for a relatively slow tourism week. One of the goals that I had with pcbdaily early on is for it to document our area so we can look back on it in times to come and see where we've been. Like I said the other day, I actually had no final shots of all of Pier Park. So, enjoy!

Panama City Beach Condo Market Analysis

Scott & Jennifer Bowman (Prudential Shimmering Sands Realty) — Tue, 12 Aug 2008 08:01:20 -0700

This is a great article by Sam Portman on the Condo Market in Panama City. I was at this auction and it was very exciting to see so many units sold at one time. Much to my advice not to do so, my buyer tried to negotiate a lower price after the auction on BULK units in a closed door meeting and the developer was less then pleased. He would not even discuss it. I do think if you have the money, now is the time to buy.

Panama City Beach Condo Market Analysis After The Palazzo Auction

Posted August 11, 2008 @ 6:01 pm by Sam Portman, Filed under: Real Estate Market

The Palazzo condo building had a successful auction Saturday, August 2, 2008, with around 50 units selling. Some have heralded the event as an indication that the bottom of the condo real estate market is finally here. However, a closer analysis may have a much more sinister conclusion.

Let's analyze the current market value of the Palazzo 2BR/2Ba units the day before the auction. The current market value defined as the highest price that would attract a buyer, given a defined marketing period.

The 2BR/2Ba Palazzo units have 1,345 SF with beach-front master bedrooms. Similar, large 2BR/2Ba units with beach-front master bedrooms over at the Calypso and Splash buildings have had recent re-sales in the high $300,000s, say around $380,000 furnished. Calypso and Splash have overall superior buyer appeal because they are established and have superior amenities.

A Majestic Beach Towers II 2BR/2Ba 1,180 SF unit with beach-front master bedroom sold recently at $340,000 furnished.

Let's look at an inferior development, the Emerald Isle building. Emerald Isle has overall inferior appeal. The 2BR/2Ba units are smaller at 1,146 SF and have somewhat inferior interior quality. These units have been selling around $300,000 furnished.

Ignoring typical appraisal style adjustments, it is reasonable to assume that a buyer of a superior Splash/Calypso unit would pay something less than $380,000 for a Palazzo unit. It is reasonable to assume that a buyer of an inferior Emerald Isle unit would pay more than $300,000 for a Palazzo unit. That leaves us with a roughly estimated current market value for a Palazzo 2BR/2Ba unit the day before the auction somewhere between $300,000 and $380,000, say $330,000 (just a rough estimate to establish the trend).

The Palazzo 2BR/2Ba units sold at auction for $295,000 (including the 10% auctioneer's commission). That is fully 10% less than the current market value on the day before the auction. For those who say the bottom has been established, the current market value for every Panama City Beach condo just decreased by 10%. That is not an unreasonable conclusion. However, that was the bottom as of Saturday, August 2, 2008.

Is there are large, pent-up demand by buyers that are willing and financially able and just waiting to jump into the market? The Palazzo auction indicated that there were at least 50 buyers willing to buy at a 10% discount. However, there is no evidence that there are enough qualified buyers out there willing to buy to turn the market around.

As of July 29, 2008, Bay County public records indicated 1,203 unsold developer units at Aqua, Seahaven, Shores of Panama, Tidewater, Emerald Beach, Grand Panama, Sterling Breeze, and Ocean Reef. Add the 17 remaining developer units at Palazzo for a total of 1,220 unsold developer condo units along Thomas Drive and Front Beach Road. That is not counting the 2,000 or so unsold units at new, off-beach developments (Laketown Wharf, Marina Landing, etc.).

Some have said that the developers will just keep their remaining units until the market turns around. Let's look at the Sterling Breeze building. Sterling Breeze has a total of 145 units of which 83 remain unsold (four closings since 6/1/2008). Sterling Breeze paid off half of their $55,000,000 construction loan and extended the remaining $27,000,000 until September 30, 2008. That's somewhere around $325,000 per remaining unit. Interest only at 7% is around $1,900 per month per unit. HOA, taxes, insurance, and utilities add another $1,000 per month per unit. The total cost to hold is around $34,800 per year per unit. That is 10% of the value of each unit. In a declining market, the sale price may go down another 10% over the next year. If the developer holds his units hoping the market will turn around, he risks losing 20% of the current market value over the next year. That's a lot of money. The pressure to sell sooner rather than later is enormous. And that does not count the pressure from the bank (see September 30th above).

The auction process appears to be a good way to sell unsold units if a developer and his bank are willing to sell at what ever the current market value is as of the day of the auction. However, it is reasonable to assume that the current market value established by an auction will be something less than the current market value established by the previous auction. That sounds good for potential buyers but would be disastrous for would-be sellers of existing condos. The auctions would suck up most of the financially able and willing buyers that may have purchased re-sale condos.

An individual condo owner who needs to sell would be well advised to sell sooner rather than later. The caveat is that if there is a stampede to sell it will tend to accelerate the rate of price decline.

The Panama City Beach condo market will not hit bottom until most if not all of the unsold developer units are transferred to private ownership. The condo market will not hit bottom until most of the condo units whose owners are significantly upside down, with high "loan-to-purchase price" mortgages and who do not have the financial horsepower to hang on are sold at current market values.

There is no logical scenario that will stop this runaway train in the near term. That is the bad news. The good news is that most of South Florida is in worse shape than Panama City Beach.

Sam Portman
www.Condosaletrends.com