Lenny G's Tampa Real Estate Blog

Channelside Condos & Lofts Market Conditions Report

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Tue, 09 Sep 2008 09:27:07 -0500

I recently spent some time in the Channel District with some buyer clients who have decided to make the former industrial district their home upon relocating to Tampa in October. Many of the Channel District projects have been in the news lately. The Towers, The Place and Ventana are all in some sort of financial funk. The Towers and The Place both entered bankruptcy this year and the developer at Ventana handed the project over to the lender. Ventana is in receivership, not bankruptcy.

The Place at Channelside is due to auction its unsold inventory of 170 some odd units in early October. Minimum bid is reported to be $17.2 million dollars, or around $100k per door. Rumor has it that the interested bidders would lease the remaining unsold inventory, much like Grand Central at Kennedy is (has). And in the mix of all of this unsold inventory, The Slade, the Channel District’s newest project is beginning to take shape.

There are 93 properties listed for sale in Channelside on our MLS currently, which really does not accurately indicate availability. Much the available inventory is not on the MLS, just a representative sampling from some of the projects. Prices range from $145k for a 620sqft studio at Grand Central, to just under $2m for an almost 5000sqft unit on the 28th floor at The Towers. Median price for these 93 listings is around $395k.

Sales are slow, but steady. Most year-to-date Channel District closings have been at The Towers, one of the bigger projects and the only true highrise building. Victory Lofts has seen some resales, and there have been some sales at Ventana as well. Ventana, at 84 units, is one of the smaller of the newer projects, and is almost 50% sold (according to sales staff).

And for my $ (and tastes) Ventana seems to be the best value out there right now. Prices have been lowered since the project entered receivership, reflecting a price/sqft more in line with other areas of south Tampa/Harbour Island, etc. It is also a smaller, more intimate building of more traditional condos, as opposed to a loft or loft/condo hybrid. The true loft style of living does not seem to be that much in demand by Tampa buyers, at least from my perspective. Questions about the market?

Looking to sell? Purchase? Both? Give us a call: 813-205-1802 or contact us via e-mail:

Browse Channelside Condos

Home Prices Did Not Drop 15.8% IN May!

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Tue, 29 Jul 2008 15:16:35 -0500

Don’t believe everything you read! Sage advice, especially when it concerns how some of the media report on the real estate market. It’s the end of the month and with it always comes the much anticipated release of the Case-Shiller Home Price Indices report.

The headline on Yahoo! Finance is enough to scare most buyers right back across the fence:

Home Prices Drop by Record 15.8% in May

That’s a very misleading headline (my opinion). Home prices did not drop 15.8% in May!

What the headline should say:

Twenty City Home Price Index Falls 15.8% From May 2007 to May 2008

That conveys the truth. Because that’s what really happened. The composite value of homes in 20 cities fell by 15.8% in a year. To say that home prices fell by almost 16% in May is a bunch of BS! (my opinion) But that’s the media’s way of creating dramatic headlines.

But real estate is local. What’s the value in a composite of 20 cities spread across the USA, if I’m in Tampa? Home prices did not drop 15.8% in May! So what’s really happening in Tampa?

Let’s just take the Case-Shiller numbers and graph them. Shall we? Graphs put numbers into perspective and help us to better understand the facts. Below is a chart of the Case-Shiller Tampa numbers from May of 2007 through May of 2008.

The decline is beginning to subside (flatten). So here are some facts, not some BS headline that conveys a non-truth (my opinion):

1. Fact: The drop in the Tampa Case-Shiller number from April 2008 to May 2008 (1.36) was the lowest drop since March of 2007.

2. Fact: Since March of 2008 the drop in the Tampa Case-Shiller index has been slowing.

3. Fact: The drop in the CS Tampa index from February 2008 to March 2008 (6.05) was the greatest of the current down market.

So maybe the slow down in price declines is only temporary. Time will only tell. But maybe, just maybe, we are approaching, or are at the bottom regarding price declines.

But the fact is Home prices did not drop 15.8% in May!

How Long To Sell In Tampa?

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Mon, 28 Jul 2008 10:55:05 -0500

I was speaking with a prospective seller client recently and she asked the question that most, if not all, seller’s ask. “How long is it taking to sell a home?” The way that I answer this question is to look at homes in the same neighborhood that have either recently sold or are under contract (pending).

Our MLS has a statistic called Days To Contract, which is a measure of the days that the home was listed for sale until going under contract. Of course the numbers are widely ranging, but we can focus on the median as a gauge of how long it will take.

The homes that go under contract quickly are either prime properties or are homes priced where buyers see value, or some combination of both. The ones that take longer to sell most likley had to go through a number of price reductions to find the sweet spot, where buyers saw value. Or maybe the right buyer just had to enter the market. The properties that are overpriced or are not prepared correctly prior to being placed on the market are the ones that are still on the market, expired or withdrawn from the market.

So here are some numbers to consider. For the single family homes in Tampa that are under contract currently, here is what we know:

* Total Number of Pending Single Family Homes: 828 (Yes buyers are buying!)

* Median Days to Contract: 55

* Maximum Days to Contract 492 (That’s a patient seller)

* Minimum Days to Contract: 2 (Does that still happen?)

* Median List Price: $189,000

* High Price: $2,100,000

* Low Price: $22,900

* MLS Grid with the most pending properties: WJ17 (Palma Ceia Area)

The answer to “how long” depends on a number of factors including how many buyers are currently in the market, property condition, property type, LOCATION, etc. The one thing sellers have the most control over is the preparation of the property in anticipation of placing it on the market for sale. Those who prepare best and price best are rewarded with a relatively low Days to Contract.

Considering a sale? A purchase? Both? Call us: 813-205-1802

Tampa Market: Supply And Demand Of Tampa Homes

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Wed, 23 Jul 2008 08:33:46 -0500

Buyer traffic has certainly picked up in recent months, and inventory is trending downwards. But are those buyers actually buying? Yes is the short answer. While there are many wary and uncertain buyers in the market, the numbers speak for themselves. Sales have been rising. I closely watch the number of pending listings on the Tampa MLS. That gives me a real time (sort of) look at demand for Tampa real estate. And while there has been no spike in listings going under contract, the trend is upward.

So with a downward trending supply, and upward trending demand, we are seeing market conditions changing ever so slightly. The gap between supply and demand is (has been) closing. Something we have not seen here in Tampa for some time. Will the trend continue? Time will only tell. Here’s a look graphically:

Tampa Real Estate Market Conditions Chart

More specific questions about the market? Looking to buy? Sell? Call us 813-205-1802 Data used is from the Mid-Florida Regional MLS, all brokers/agents included.

Some Good News In Tampa Real Estate

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Thu, 11 Oct 2007 10:30:59 -0500

The conventional media will tell you that:

Tampa homes sales are down
The median price of homes in our area is down
Foreclosures are up
Inventory is at a record high

And I’ll tell you the same. And that’s all true. No blowing of smoke allowed here.

But did you know this about Tampa real estate?

5800 residential properties have sold year-to-date, with 426 of them closing in September and 94 so far in October.
There are 1033 residential properties in Tampa in pending status, meaning that they are under contract to be purchased. In October alone, 134 have gone under contract (just in Tampa, not Tampa Bay, Hillsborough County, etc.).
Of the 1033 under contract, 905 of them are expected to close by 11/15/2007 (according to what listing brokers/agents have reported on the MLS)

Why do I bother telling you this? Because although the market is not what it was in 2003–2005, we still have a market. This is just the stuff that you most likely will not read somewhere else, whether in print, elsewhere on the web, or that you’ll hear on radio or on television.

But when comparing to 2003–2005, yes, the market is in the tank. We tend to have short memories and only want to compare to the recent past.

I wasn’t in the business then, but back in 1996, when my wife and I were in the market for our first Tampa home, things were very similar to today. We must have looked at 30 homes or more before making a decision (our poor agent). We felt little, if any, competition from other buyers. We made a low ball offer on one home that got rejected. So we kept looking. And that seller came back weeks later with a reasonable counter-offer. We ended up buying that home at a price that was much closer to our original offer, or about $23k less than asking price. That was a big chunk o’ change, as a percentage, considering Tampa home prices back then.

So folks are still buying homes these days. And stories like ours from 1996 are being played out daily across the Tampa Bay area. Just figured I’d tell my side of the story.

Data used is from the Mid-Florida Regional MLS for city = Tampa, and does not include private, non-brokered sales.

Are We There Yet?

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Wed, 08 Aug 2007 09:21:06 -0500

Another in the “Notable E-Mail” series:

“Lenny, I read you online from Dublin, Ireland - surprised not to see the following from you, posted, Aug 3, 2007:

The Tampa Bay area ranks #1! Based on a report by Forbes magazine online issue, Tampa Bay is the best place in the country to buy a home. Forbes notes that the Tampa Bay area is in a V-shape recovery – an area that the market undergoes a freefall, but recovers quickly.”

What the Dubliner refers to is the recent ranking of the Tampa real estate market as being the most resilient. Matt Woolsey, of Forbes.com, published an article back in June, in which he referred to Tampa’s residential real estate market as being “a perfect candidate for a “V” shaped recovery”. This is based on research done by Moody’s Economy.com. In other words, once we reach the bottom, we shouldn’t stay there for very long. Our local economy is strong and housing is relatively affordable.

So when will we reach the bottom of the “V”? Moody’s projects Tampa hitting bottom during the first three months of 2008 with 10.6% appreciation for the year following. But Woolsey notes that predicting the bottom of a real estate market is not that easy. Moody’s prediction is based on data such as affordability, vacancies, the local economy, and the number of investors in the market back in 2005.

While I’m know Moody’s, I do have a degree in Economics. And although it’s been a while, I think I remember one of the first theories I learned was that high supply and low demand puts downward pressure on prices. There’s no arguing that those are the conditions of our current market. But Moody’s does their homework and uses some good data in making this forecast. And you know what? The first quarter of 2008 is not that far off.

Nice to see Irish eyes are watching.

Tampa's Channelside District-Condo Inventory Spike

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Sun, 05 Aug 2007 10:46:00 -0500

The Channel District is adjacent to downtown Tampa and is in the process of converting from an industrial use area to one of residential lofts and condominiums. Back in 2003–2005, when the local real estate market was most heated, some of the first major residential projects in the area were in the pre-construction sales phase. There were many speculative/investor buyers in the market, and many of them jumped at the opportunity to be some of the first to buy in the Channel District, a.k.a., Channelside.

Fast forward to present day reality, and while some smaller projects were completed in the last few years, the first major projects are now being finished. Buyers who went under contract to purchase Channelside condominiums are now closing on them in a market that has turned tail and run in the opposite direction. Many of these buyers never intended to reside in these properties, nor did they intend to hold them for any period of time. Many buyers’ sole intent was to close on their properties and then resell them in a market that had seen substantial appreciation since pen went to paper back in pre-construction. (See: Condos Suck). It’s a risky, speculative move that can pay great dividends if demand is still there once the mortgage payments begin or once the cash is handed over.

But much has changed since those days of fancy sales centers with trailers made into models of soon to be built condominiums. The demand is not there, prices have slumped, and it’s hard to find a buyer or renter for anything really. As the closings mount, so too does the number of listings in the area.

But The Channel District will be a great place to reside and certainly has a bright future. It is a great location adjacent to downtown and sandwiched between two of Tampa’s more popular entertainment areas, Channelside and Ybor City. Fine dining, The Florida Aquarium , cruise ship terminals, professional hockey, professional football, concerts, a world class airport, great malls and more, are all nearby. It will no doubt some time for the current and swelling inventory of vacant properties to find someone to call them home. Buyers will find plenty to choose from and sellers willing to negotiate and offer enticing incentives.

THE NUMBERS:

Back in April there were 148 active listings of condos in the Channelside area. Today there are 247 and that number will likely be growing in the coming months. Grand Central at Kennedy, The Place at Channelside, Ventana and The Towers now have their first residents, but many units sit vacant. For the buyer that likes what the Channel District has to offer, you can expect many options and motivated sellers. Prices (currently) range from $190k for a 600 sqft unit at Grand Central, to an almost $2.5m unit at The Towers, Channelside’s only highrise building. The bulk of the Channelside inventory is in the $250k to $500k price range.

Downtown Tampa/Channel District Projects Map

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Tampa Real Estate Market Conditions Review

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Fri, 18 May 2007 09:30:49 -0500

Since last week at this time the number of Tampa homes for sale has crept slightly upwards while the number of homes under contract remains stable and flat. This is a snapshot view of the market. Data used is from the Mid-Florida Regional MLS for city = Tampa. All brokers/agents included.

But hey, 141 lucky Tampa home sellers did find a buyer to agree to terms with them. Here’s some facts about the properties:

Average property was priced at $271k and is a 3/2, 1685 sqft built in 1976.
Zip 33647 (New Tampa) leads the pack with 18 new properties in pending status.
Listed at $1.5 million dollars, 804 S Delaware in Hyde Park tops the list with respect to price. This home was on the market a whopping 6 days. (more info below).
89 of the 141 had price changes since 1/1/2007, and 23 of them dropped prices with in the last 18 days.

Back to 804 S Delaware: Six days to contract is a rare thing in this market, although we just had one go to contract in two. To find a buyer quickly in this market, pricing correctly out of the gate is most important. But 804 S Delaware, listed by Smith & Associates, is a jewel in the Hyde Park Historic District. Homes like this don’t come on the market everyday, and many like this never need the MLS to find a buyer. The listing agent notes that the home is “One of the most beautifully maintained and sensitively restored homes I’ve ever seen.” Built in 1915, the wood frame home has 5 bedrooms with 3 and 1/2 baths in its 4219 sqft.

But if a property is not such a “rare find”, pricing is of the utmost importance in finding a buyer quickly. Sellers and/or their agents must do the homework to analyze the market and judge the home against the others that buyers may be considering, which can be many with the current inventory. Home sellers need to put the buyer hat on and take a good look at what else is available for buyers that may be looking at their home.

How does the location compare?
How does the condition compare?
Does the home have any hidden amenities?
How does the surrounding area compare?(very important in South Tampa)

These are just a few of the questions that need answering when trying to place a “market value” on a property.

Browse Hyde Park Area Homes For Sale

Gurvich Realty Group of Keller Williams

Notable Q1 Sales In Tampa Real Estate

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Wed, 16 May 2007 05:55:18 -0500

During the first quarter of 2007 there were 5 sales in Hillsborough County of $2 million dollars or more. (There are 131 active properties listed at $2m or more currently).

Tops in sales price was 58 Martinique Avenue, a new canalfront home on Davis Islands which sold at $3.55 million dollars on February 14^th. Built on an 86’ x 171’ lot, the home features 5256sqft of space with 4 bedrooms and 5.5 baths. Listed by Coldwell Banker and sold by Keller Williams Realty South Tampa.

As for size, 4 homes sold in Hillsborough County during the first quarter are 6000 sqft or better. Tops in size goes to 19112 Holly Lane in Lutz. At over 7300 sqft, this home features 400’ of frontage on Lake Brooker. It sold for $863.5k on February 2^nd. Listed by Johanson & Associates Inc.

Need bedrooms? Well you could have purchased 1010 Hickory Fork Drive in Seffner with all of its 7 bedrooms and 4 baths, 4277 sqft, 3 car garage on over a 1/2 acre. It sold for $595k in early January.

As for age, 910 S Rome in Hyde Park was built in 1902 and sold for $747,650 in late March. This home has the original heart pine Corinthian columns at the entry as well as the original heart pine flooring. Listed and sold by Hyde Park Realty.

And if “you gotta go”, then maybe you should have purchased 937 Shoals Landing Road in Riverview with its 7 and 1/2 bathrooms. This 6319 sqft home listed by Keller Williams Realty sold for $905k in late March.

All data used is from the Mid-Florida Regional MLS, all brokers/agents included.

Gurvich Realty Group of Keller Williams

813–205–1802

Browse Tampa Homes For Sale

MLS “Hotsheet” Reflects Market Conditions In Tampa

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Wed, 16 May 2007 05:46:53 -0500

The Multiple Listing Service, or “MLS” contains a wealth of data that reflects the current Tampa real estate market conditions. As members, we can set up what is known as a “hotsheet”. My hotsheet contains new listings, listings with price changes, expired listings, and new pending listings in the areas in which we specialize.

Lately the hotsheet looks very similar to the one shown above with price changes leading the way in the count. The number and frequency of price changes has been on the increase lately as sellers become more competitive and realize what it takes to get the attention of the few serious and qualified buyers out there.

Listings Lost In MLS Misinformation

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Mon, 16 Apr 2007 16:23:03 -0500

While doing some research recently I did a MLS search where the property type = “Single Family Home”. In the results was a condominium. Whomever entered the data for the property had submitted it as a single family home.

So anyone looking for a condo, whether an it’s an agent on the MLS or a prospective buyer on Realtor.com, would miss out on that particular condo. It was lost in the virtual world of MLS misinformation.

When a new listing is entered on the Tampa MLS there are 51 data fields that we, as Realtors, are required to fill. There are many, many more that are optional. So it’s understandable that mistakes are made. I know I’ve made some mistakes. Data entry is not all that exciting and it’s easy to speed through it to ease the pain.

When we list a home for sale, we usually fill out an MLS data sheet that has all the specifics that will be entered on the MLS. The seller, along with the agent, is required to verify that information and then sign the sheet to acknowledge. But when the data is (are?) typed in, mistakes often happen.

How to prevent it? Easy. Look the data over a few times before hitting the submit button. After submitting, go check it out on the ‘front’ side of the MLS. Do some searches that buyers and their agents would most likely do. Make sure the property shows up in those searches. Once posted, I send all of my seller clients the full listing report and ask them to please “take your time and make certain all fields are correct”.

Did you know that there are 99 listings this morning on our MLS in the City of Tampa, but in counties other than Hillsborough? There are 3 listings in Brandon, the Brandon over in Pinellas County (there is no Brandon in Pinellas County). And wrong MLS areas and wrong zip codes are even more prevalent.

Hard to sell a property that buyers can’t find.

Channelside Condo Market Watch 2

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Tue, 03 Apr 2007 09:25:44 -0500

A few months ago we posted the first of what will be an occasional look at what's going on in the Channelside District with respect to the many new condos and lofts for sale.

At that time there were 115 active listings of residential condos and lofts on the Mid-Florida Regional MLS. Some of the new buildings are now almost completed and the closings are beginning.

As of this morning, there are 148 active listings of Channelside condos ranging in price from $215k to nearly $1.7 million dollars. For $215k you can get a 620 sqft studio at Grand Central at Kennedy. For the $1.7m you get a nearly 2500 sqft 3 bedroom/2.5 bath unit at The Place at Channelside. For less than $1.6m, you can get an almost 3000 sqft penthouse at the soon to be completed Towers of Channelside.

Some averages for the 148 active listings:

List Price: $503k (Median list price is $459k)
Size: 2 bed/2 bath, 1383 sqft
$358/sqft

So not much has changed over the previous 2 months. The bulk of these listings is the developers' unsold (or once again available) inventory, some resales, a few assignable contracts, etc.

But as more and more of these properties are completed, and the closings begin adding up, expect to see the resale inventory blossom.

Browse Channelside Area MLS Listings:

Channelside Condo Market Watch 2

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Tue, 03 Apr 2007 09:25:36 -0500

A few months ago we posted the first of what will be an occasional look at what's going on in the Channelside District with respect to the many new condos and lofts for sale.

At that time there were 115 active listings of residential condos and lofts on the Mid-Florida Regional MLS. Some of the new buildings are now almost completed and the closings are beginning.

Some averages for the 148 active listings:

List Price: $503k (Median list price is $459k)
Size: 2 bed/2 bath, 1383 sqft
$358/sqft

So not much has changed over the previous 2 months. The bulk of these listings is the developers' unsold (or once again available) inventory, some resales, a few assignable contracts, etc.

But as more and more of these properties are completed, and the closings begin adding up, expect to see the resale inventory blossom.

Browse Channelside Area MLS Listings:

Tampa Home Sellers Continue To Pour It On

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Fri, 30 Mar 2007 12:32:03 -0500

Looking to buy residential real estate in Tampa? Well, you’ve got more choices than ever! The number of brokered listings of properties in Tampa continues to rise, pushing 8400 as of this morning. That’s right. There are 8398 active listings in the City of Tampa today, over 1000 more than we saw at the beginning of this year.

What about sales? Well, in the first 15 days of March 2006, there were 524 units sold in Tampa. We’ve seen 242 properties sold, same period, this year. But 154 properties did go under contract in the past 7 days. Buyers are buying.

It’s just that supply (sellers) is out pacing demand, not good news for sellers as we enter the busier buying season.

Take a look at what is going under contract in the areas that we typically service.

Data used is from the Mid-Florida Regional MLS. All brokers/agents included.

This Week In Tampa Real Estate: Supply Outpaces Demand

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Fri, 23 Mar 2007 08:12:37 -0500

As much I keep expecting to see more sales activity for homes in the City of Tampa, it just ain’t happening. At least it’s not being reflected in the number of pending listings on the MLS. Pending listings are those that are under contract, or those that have found someone who wants them at an agreed upon price. It doesn’t mean it’s a done deal or “sold”, but it’s a start.

There is certainly more buyer activity in the way of e-mail inquiries, phone calls, showings, etc., but those buyers are still taking their time for the most part. And why not? The “nobody else is buying it, so why should I?” mindset is still strong.

The specifics:

Listings in the City of Tampa jumped to 8314 this morning (3/23/07), a new high for at least the previous 12 months. There were 5374 active listings in early March of 2005. And last year at this time there were about 2500 pending listings as compared to 1592 as of today.

What are buyers buying this week?

The average property going under contract this week is a 1751sqft home built in 1982 with a list price of $338k.

And where are they buying?

The 33647 (New Tampa/Tampa Palms) zip has 13 new contracts while zips 33626 (Westchase), 33624 (Carrollwood) and 33610 (map) each has 11 happy sellers.

Subscribe to these market updates.

SearchTheTampaMLS.com

Data used is from the Mid-Florida Regional MLS City = Tampa

Fairly Stable Week For Tampa Real Estate

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Fri, 16 Mar 2007 09:16:44 -0500

The number of homes listed for sale in Tampa crept slightly upwards this week, while the number of pending contracts followed suit.

And 135 residential properties went under contract in Tampa since March 9th (and as of this post)

Some facts about those homes:

Average List Price = $282,028
Average Bed/Baths = 3/1.89
Average Size = 1645 htd/cooled sqft.
Average Year Built = 1980
Highest Priced Home = 7307 Pelican Island (Dana Shores Area) Listed by Coldwell Banker

MLS grid WO16 has the most new contracts with 6! This is the Palm River Townhomes off of US 41 and Palm River Rd.

Tampa MLS Real Estate Activity For Week Ending 3/2/07

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Sat, 03 Mar 2007 17:55:37 -0600

One week’s activity doesn’t make a trend. But looking back at the last month or so, the state of residential real estate in Tampa has remained fairly stable with respect to supply and demand.

The number of active listings in the City of Tampa has not changed much over the last 7 days, nor has the number of pending listings, or listings under contract to be sold.

With respect to buyer activity, 157 listings have gone under contract in the last week alone. Here are some statistics on what the happy sellers have to offer:

They are selling homes that average:

A list price of $280,000
About 3 beds and 2 baths
About 1600sqft of heated/cooled living area
A year built of 1975

The highest priced home to find a buyer this week is listed at $1.895m and is on Davis Islands in South Tampa.

This Davis Islands waterfront home found a buyer in 22 days.

Data used is from the Mid-Florida Regional MLS (City=Tampa) and does not include non-brokered homes for sale.

Real State Currently Under Contract Mean What?

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Thu, 01 Mar 2007 12:24:47 -0600

No, the title of this post is not a mistake. This is the exact search phrase someone used that brought them to one of my real estate websites. So let’s see if we can get this question answered for the researcher.

“Under contract” or “pending” are terms used for real estate on which a buyer and seller have agreed to the terms of a sale. It means that a contract to purchase has been executed and that the home is most likely no longer available.

When a home goes under contract, there are usually a number of different contingencies that are stipulated in the contract that must be resolved before the transaction is closed. The most common contingencies in a purchase contract for residential real estate are the inspection contingency and the financing contingency.

The inspection contingency usually stipulates that the buyer can inspect the home for a specific period, and if the cost to make repairs to certain items exceeds a specific dollar amount, the buyer can walk away, unless the seller agrees to make some repairs. The financing contingency usually stipulates that if the buyer, using good faith, cannot secure financing by a set date, then that buyer can cancel and walk away.

The fact that a property is “under contract”, does not necessarily mean that it will sell. Homes that have been under contract often go “back on the market” due to the previous agreement being canceled.

But for the seller, going “under contract” essentially takes the home out of the market. Homes that are in “pending” status in the Tampa MLS database will not be displayed on Realtor.com and other public home search sites, and they won’t show up in MLS searches done by Realtors, unless they are searching the “pending” status homes.

If you are looking for a home, it’s best to have your Realtor keep tabs on the “pending” homes that may fit your needs. “Pending” often changes to “back on the market” or “active”, and your dream home may just fall into someone else’s hands.

Sellers often solicit offers even after going under contract with a prospective buyer. The seller may not have much confidence in the primary contract and may seek to enter into a “backup” contract in case the primary contract fall through. Most listings agreements that sellers sign with their brokerages provide that the brokers still present offers that are received even after having signed an agreement with a prospective buyer.

So keep your eyes on the “pendings” as well as the “actives”. The smart buyer realizes that being in the second position, is better than having no position at all.

First Impressions Are Key For Getting A Showing

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Tue, 27 Feb 2007 08:19:22 -0600

Jay, over at the ThePhoenixRealEstateGuy.com, recently posted about the poor images that some agents (or homeowners) will post on an MLS listing or other website as the primary, or first photo. As Realtors, we spend plenty of time on the MLS researching properties, and we are constantly reminded of how important it is to make a great first impression on the web.

I remember when my wife and I were shopping with a Realtor for our first home. We’d jump in the car with her and go on a tour of homes. We never had an opportunity to see the home before the actual showing. The internet was in its infancy and online home photos and tours did not exist.

Fast forward to present day and buyers and their agents now have many sites to choose from to preview homes and even see a neighborhood virtual tour. Buyers now rule out whether or not to see a home first hand while they are online at their home or office.

First impressions are very important with today’s technologies. That first impression (and all impressions really) has to be good or you might just lose that buyer at their desktop. The goal should be to present the property in such a way as to get the buyer or their agent to pick up the phone or shoot an e-mail to schedule a showing.

I learned a lesson a while back when a fellow Realtor and neighbor mentioned what a buyer client of his was looking for. I immediately told him about a listing of mine that sounded perfect. I sent the listing to him via e-mail and he later told me that he had seen it on the MLS, but had ruled it because of something he had seen in one of the images. He subsequently did show it, they wrote an offer and closed on the home weeks later. I am now very cautious about what I post to the MLS.

Things to consider:

Consider a professional photographer to produce the images and virtual tours.
Use caution in deciding what to post on the MLS or anywhere else online.
As a Realtor, if you can’t find 10 images that show a home in a positive light, don’t post 10 images on the MLS.
Sellers should prepare the home prior to the photo shoot.
Put the buyer hat on and ask yourself “Would this image compel me to pick up the phone?”

Buyers today often rule out a home while researching online. Homes are often ruled out quickly based on the first, or early impressions the buyer gets from the listing images and/or virtual tour. Buyers will then send their agent a list of homes to see based on their own research. Remember to make a good first impression, and get the phone to ring.

Stability Is The Word In Tampa Real Estate This Week

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Fri, 23 Feb 2007 07:43:41 -0600

Not much to report this Friday regarding any changes in the state of the Tampa residential real estate market. The number of listings available for sale in Tampa increased slightly, along with an increase of the number of properties under contract pending a closing. Simply stated, demand has kept pace with supply over the last 7 days.

However there is mostly an optimistic view from individuals in the business currently. I have spoken with lenders, Realtors, title agents and home inspectors over the last few days and all are reporting an increase in activity and all had a relatively positive outlook as compared to recent months.

None of this holds water however until we see a corresponding change in hard data, which will lag behind any perceived increase in activity. Stay tuned.

Tampa Homes For Sale Inventory Swells Yet Again

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Fri, 09 Feb 2007 08:18:25 -0600

As it usually does this time of year, the number of homes for sale in Tampa is on the rise. However, the difference between the number of homes on the market, and the number of homes under contract continues to swell as well. Many homes are being listed for sale currently as we begin to enter the busy spring and summer seasons in which home buyers are more active.

The chart above clearly shows the trend of increasing supply (listings) and the trend of demand (pendings) remaining relatively flat.

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Data used is from the Mid-Florida Regional MLS and does not include non-brokered Tampa homes for sale.

Tampa’s Residential Real Estate Inventory Remains Stable

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Fri, 02 Feb 2007 09:03:27 -0600

After a few weeks of double digit gains, the supply of residential properties for sale in Tampa remained stable this week. As of this morning there are 7748 active properties listed for sale in the City of Tampa. Demand has not changed much with respect to the amount of homes under contract as this number has remained stable as well.

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It Just Gets Better For Tampa Home Buyers

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Fri, 19 Jan 2007 09:56:23 -0600

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The trend of increasing supply of Tampa homes for sale continues as we enter the second half of January, 2007. After the inventory of homes for sale stabilized somewhat in October of 2006, the sellers are making a substantial push, widening the gap between homes under contract and homes looking for a buyer.

As we saw last week, the number of properties listed for sale in Tampa increased by about 200 units this week as well. While the number of homes going to pending status also increased, the difference between the two widened, representing an increase in supply over demand. Buyers continue to have the upper-hand with more choices and more anxious sellers, as well as continued low costs to finance home purchases.

Prices are going down, generally speaking. The median prices of homes sold should reflect this during the coming months. Stay tuned.

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Where Is Ridgewood Park?

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Thu, 18 Jan 2007 11:29:06 -0600

This is a neighborhood I mention quite a bit as being a sleeper of a neighborhood. It is small and relatively unknown by most Tampa residents. Most people recognize the names of its neighbors, Tampa Heights and Riverside Heights, but many, if not most, have not heard of Ridgewood Park. If you’ve ever been to Rick’s On The River, just look across the river to Ridgewood Park.

Map Courtesy of Hillsborough Community Atlas

Ridgewood Park is comprised of 83 acres of land adjacent to the Hillsborough River, due north of the University of Tampa and Blake High School. Its boundaries are North Boulevard to the east, Columbus Drive to the north, and the Hillsborough River to the south and west. It is home to the Cruise-a-Cade boating club, and is primarily residential properties with homes built in the early to mid-1900’s, many of which are bungalow style.

Ridgewood Park is in close proximity to downtown Tampa and just across N Boulevard Street from “The Heights“, a recently approved, $500 million mixed-use project.

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This Just In: Speculators Are To Blame

Lenny Gurvich (Keller Williams Realty Tampa, Florida) — Wed, 10 Jan 2007 10:06:42 -0600

The Wall Street Journal is reporting that speculative buying played a major role in the recent run-up of real estate prices in Florida, especially southwest Florida. Ya think?

Were the speculators the cause, or the effect of quickly appreciating real estate in Florida. Which came first, the speculators or the price increases? Were the speculators just fuel added to the already hot fire?

We know that there were many people like Marjorie Dresner, who were seemingly out of control buying up anything that they deemed as a good investment, and are now holding many properties valued at much less than was paid.

Ms. Dresner’s statement as quoted by the The WSJ shows the general mindset of many speculative buyers: “The sellers can ask whatever, but it’s up to the banks in how they appraise it,” she says. “I never overpaid for anything.” Three examples of homes she purchased and now cannot sell for anywhere close to the price paid are given.

Many investors were buying thinking that prices can’t possibly go down. How can I lose? It had been a long time since Florida real estate prices had gone down. There were 900 people per day, on average, moving to Florida. Don’t they need somewhere to live?

But the fire did run out of fuel and examples of bad timing of speculative buying are visible all across Florida and elsewhere. The fire also had many extinguishers in the form of rising costs to borrow, rising insurance rates, rising property taxes, etc. Less $$$ were available for the P and I portion of the PITI.

So the latest about face of the Florida real estate market serves as a lesson for those who choose to buy speculatively betting that prices will continue to rise and that they’ll be able to easily find a buyer at a higher price. It’s a risky bet that some will surely lose.

See: Condos Suck