Rob's Blog

Beach Condo Sales - St Petersburg, FL

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Tue, 08 Sep 2009 11:36:47 -0500

As I continue to write about the different beach condo complexes, I thought I should take a look at how the sales of beach condos are doing in 2009.

There are currently over 400 beach condos on the market. For my purposes, the condos had to have at lease 1 bedroom, 1 bathroom and 500 square feet. I looked from St Pete Beach, north to Sand Key. When possible, I tried to exclude condo-hotels from my numbers. Though many of the condo complexes allow rentals for as few as 1-night as a time, do while they are not condo-hotels, there is not much difference. Of the condos currently on the active market, 58 are listed for $1,000,000 or more (with a high of $3,595,000). Another 56 are listed between $750,000 to 999,999. There are 114 listed between $500,000 to $749,999. There are 90 listings between $400,000 and $499,000. You can find 68 listings between $300,000 and $399,000. And believe it or not, there are 26 listings under $299,999 (3 below $200,000). Understanding that the lower priced units are very small and the water view is generally not gulf view. But you can get something for a lot less than you can several years ago. For the lower priced condos you are also looking at older buildings, of the 58 units over a million dollars, 49 of them have been built since 2000, where as the lower prices units are in buildings generally built in the 1960s and 1970s. Of the units built since 2000, only 3 are listed for less than $500,000 and they are around 1,100 square feet. There are several nice choices between $500,000 and $600,000, all of which allow short term rentals.

After the Active listings, there are 24 units currently listed as "Active with Contract." Today, that generally means it is a short sale, with a contract pending the bank approval. Another 27 units are under contract, pending the sale to go through. So people are still buying.

In 2009, 164 gulf front condos have sold. They have been fairly consistent throughout the year. Sales by month are: 9, 18, 16, 26, 32, 21, 20 and 22. Prices have remained consistent. This year only 6 units have sold for over $1,000,000, with a high of $1,250,000. One unit that was listed for $1,950,000 and had 5,100 square feet, sold last month for $800,000. It was a short sale, but sold for much less than the original sale price of $2.7 million. There have been 12 sales between $750,000 and $999,999, another 13 between $600,000 and $749,999. In the $500,000 to $599,999 range, 20 units sold this year, and another 28 units sold between $400,000 and $499,999. As we go down in price, the sales increase...58 units have sold between $300,000 and $399,999 and another 27 units sold for less than $300,000. On the average, sellers are getting 90% of their list price price for their sales price, after an average of 166 days on the market. In summary, beach condos are selling, but not for the high prices some sellers are looking for. If you are a buyer and have thought about a beach condo, but thought they were too expensive, now might be the time for you to start looking for the right beach condo. After four weeks of living on Indian Shores and watching the sunset from my balcony, I'd highly recommend beach living!

PA Designation

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Thu, 05 Feb 2009 16:41:16 -0600

Many real estate agents have a PA designation. Can anyone explain what that is? I know Public Accountant, Physicians Assistant, but I know several agents and they have not been to medical or law school. One person told me it is related to business, like an LLC, but I can't find one answer that satisfies me, any ideas?

New Office

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Thu, 01 Jan 2009 10:30:36 -0600

As I enter my 4th year in Real Estate I am full of excitement. For anyone who entered the business in late 2005, it has been a very interesting three years. As a Realtor in Florida, the prices have only gone down since I started selling real estate, yet I remain hopeful that things are only getting better. My first three years were with RE/Max and it was a very good experience, yet our team recently had the opportunity to open our own office on Beach Drive in downtown St Petersburg and everything about the venture is exciting and full of hope. ALVA International is named after my great grandmother, who was the first in our family to enter the real estate business. Now my mother, sister and I have the opportunity to make our own unique place in the market. We can concentrate more on our clients and give them the individualized service they deserve. From Downtown condos, to Snell Isle and the Old NE, all the way to the Beaches, we can help them sell their homes or find the right home for their future. So, while many are leaving the business, we feel this is the time to make our mark and be ready for the future. Happy New Year to you all and may we all have a great 2009.

Short Sales - Long Time

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Tue, 12 Aug 2008 11:24:47 -0500

After making 9 short sale offers this year, I finally had the bank accept one. The offer was made on February 19th. Since then I've had made offers on 8 others, all of which did not make it to closing. Some were rejected immediately as they already received higher offers, others went to bank la-la land and my buyers gave up before we could get any real responses to our offer. Had one that went nowhere because the sellers refused to sign the offer...they liked living in a mortgage free house and were holding on as long as they could before the bank could force them out. But in my first case, the buyers really liked the house and did not give up (though they did let several final dates pass). Finally, a week ago, the bank signed everything and we have a closing scheduled for the 29th. My fingers are crossed. We've made it through the inspections and are two weeks away. Let's see if a short sale can actually close!

Beach Front Condos

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Sun, 13 Jan 2008 21:16:34 -0600

As the prices of condos have dropped, I've seen a big spike in the desire for beach front condos. Many people have wanted to sit on their patios and listen to the waves come in and watch the sunset. Unfortunately, as prices were skyrocketing, the average cost for a 2 bedroom/2 bathroom condo was closing in on $700,000. But now there prices are dropping below $500,000 (can even find a few 3 bedroom units) and more and more out of town buyers are interested. From Canada to France, I have buyers calling and flying down to get thier piece of the beach. I think the most surprising part of the new trend, is that while many of the lower priced units need lots of upgrading, you can also find some really nice deals. On Friday I was looking at a 4th floor, corner unit that had been purchased for $625,000 in 2006...the list price is now $499,000 and the unit has already been upgraded and is very move in ready.

Even though the newspapers are continually writing about the doom and gloom of our industry...it you want a condo on the beaches in Tampa Bay, this is a great time to be a buyer.

Tidewater Preserve - Builders

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Fri, 05 Jan 2007 09:59:10 -0600

There have been a lot of articles lately about builders, both local and national, that are having big problems due to the current housing market. Just read a long article about Lennar projecting a fourth-quarter loss and am not overly surprised. It is not because of thier product, which continues to be excellent and I continue to show and sell when I can, but in my opinion the large number of communities and developments they are currently working on. Within a 15 minute drive of my house their are three different Lenner communities under construction, all competing with themselves. Not only do they have many of the same floorplans, they are also competing with each other to give the best price. The largest of which is Heritage Harbor, with its many neighborhoods inside the development they have a very high overhead to keep going.

Now they will have some big competition from the new WCI Community of Tidewater Preserve, on the Manatee River near Bradenton. With homes starting around $500,000, and on Luxury Tower with 70 residences and 4 penthouses...overlooking the river, it will be a very desireable location to live in and with only a 30 minute commute to Sarasota or 35 minutes to downtown St Petersburg, the location is excellent. Anyone not fimiliar with WCI need only look at the Westshore Yacht Club in Tampa to see what they can do. For anyone looking to get in early, now is the time to look at Tidewater Preserve.

Manatee County

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Thu, 04 Jan 2007 19:33:46 -0600

When I moved to Florida 2 years ago, I fully expected to move to St Petersburg where I had lived in my youth, and where most of my family still lives. However, during my home search I went across the Skyway Bridge into Manatee County. I looked at new developments in Bradenton, Palmetto, Parrish, Ruskin, and Apollo Beach. Since I was looking for newer construction, Manatee County had much more to choose from than St Petersburg and Pinellas County. In the end I found the perfect subdivision of Ancient Oaks in Parrish. I was able to buy a lot from the builder with almost 1/2 an acre of land, and then build what I call the perfect home on that lot. In the 14 months since my home was finished I am ever thankful that I found this neighborhood. Whenever I am showing property in St Petersburg, I make sure my clients are aware of the many choices they have only 25 minutes away, in Manatee County, and I almost always take them on a tour of Ancient Oaks if they have any interest in Manatee County. With only 246 homes, built by 5 different builders, we have a small community, yet not all of the homes are alike as you find in many one builder developments. I am very fimiliar with all of the neighboring communities and can recite the pro's and con's of each and try to help each of my clients find the perfect fit for them and thier families.

Many of my clients still think of Manatee as that place over the bridge, south of St Petersburg, but I for one will tell you it is a great place to live. I love my 30 minute commute over the bridge every morning and evening. I have only four stop lights between my home in Parrish and my office in Downtown St Petersburg. I cruise along at 80 miles an hour (I mean 65) and enjoy the peace and quiet of the drive.

If you are looking for a place to live, think of Manatee County.

Extreme Low Balls

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Thu, 16 Nov 2006 09:16:52 -0600

Lately I have encounted two very interesting "buyers" who have called me to look at two of our listings. While I have encounted individuals who want a house, but offer something so low that it will never happen. But in these new cases, the buyer was going around to every house in the neighborhood, offered something very low ($500,000 for a $575,000 listing, and $600,000 for a $825,000 listing) and were making similiar offers to other houses just seeing if some seller was desperate enough to take the offer. Neither buyer was in love with the house, but was willing to take whatever house the seller was willing to have a fire sale at. Strange dealings. I'm glad to say neither of my sellers accepted these offers. Buyer was not willing to negotiate any higher and the "deals" went away. Are others having similiar experiences?

Exclusive Buyer Agreement

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Thu, 21 Sep 2006 12:33:10 -0500

Just attended the ABR class in Miami...really enjoyed it. One of the things the instructor focused on was the Exclusive Right to Represent Buyer Agreement. In her mind, the first thing you do with any buyer is get them to sign the agreement...you don't get in her car, or get any help looking at property unless you first sign the agreement and officially become her client (side note, buyer agreements are state law in Conn. where she is from). I agree with the concept completely and would love to have everyone who comes into my office or calls about seeing a property to sign an exclusive agreement for six months, it does not seem completely practical in many cases. Someone calls out of the blue, wants to see a listing this afternoon and will meet you at the property....hard in today's buyers market to say no, you first need to stop by my office, get my introduction and sign an exclusive agreement with me, and then I'll show you the property. What are your thoughts?

Bad reputation for Realtors

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Wed, 13 Sep 2006 09:52:58 -0500

My wife has been reading lots of articles on real estate on the internet since I joined the business last year. I am really surprised by the number of articles and letters to the editor that bash Realtors. While, as with many other professions (lawyers, used car salesmen, ect), there are some bad apples, I have been very surprised by the number of individuals who are really upset with the agents they used in the past. I have always believed that we must take care of the clients, because it is repeat business and referrals that make us successful, so it was a little shocking to me the number of people that think all Realtors are money, hunger parasites. I feel I am here to help someone in need of a home, find someone else who desires to sell thier home, and if I can make a living while doing that...great. But my number one concern is taking care of my clients.

Designations

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Wed, 13 Sep 2006 09:40:58 -0500

As I get ready to drive to Miami for my ABR class to furture my Real Estate education and add another designation to my biography, I am amazed to see the number of agents in my office that have been an agent for over 10 years and have not bothered to receive even one designation. I'm not saying eveyone needs to get every designation that comes down the pipeline, but there are so many that seem essential that it amazes me that agents don't bother with it. Even if you don't like to travel, you can take many of the classes on-line. E-Pro is a great example. I took it on-line, was done in three weeks, learned a few things (actually enjoyed taking it, which is why I was able to finish it fairly quickly) and I have already received a referral from another e-PRO. When referral calls come to our office, mostly because of Sharon's designations, they ask about my designations when they are told they will be working with me...they want some assurance I have some knowledge, so again, it encourages me to get the basic designations. As I finish my first year in the business, I think I have recieved the basic designations to show other agents I have an interest in continuing my education and have some knowledge.

Why do so many agents have no interest in designations? Am I off base? What do you think?

New Listings

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Thu, 07 Sep 2006 20:48:13 -0500

I listen to other agents talking all the time about taking all the listings they can get, regardless of thier abilitiy to sell the properties. While I agree listings are key...they bring potential buyers to our website that look at all of our properties, as well as the chance to pick up a buyer for other agents listings. But I have started to look much more closely at the listings we accept. I have several sellers that are just unrealistic about their sale price. While the list price started out well, when everyone else in the neighborhood drops their price, my seller refuses and says he might be willing to negotiate a lower price, but will not list a lower price. So every week I am explaining to him why his house doesn't get new showings and offers...because the buyers can get a larger house for much less just down the street!!!!! It gets to you after a while. Now during listing appointments, I try to get a very good read on a seller and only accept those who will be realistic. I'd love to accept all the listings, but too much of our time is being spent on homes that are not going to move until the seller accepts the current marketplace.

Price Per Square Foot

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Thu, 07 Sep 2006 08:05:43 -0500

More and more I hear buyers asking about or talking about the price per square foot. While it is a useful ballpark figure, it is very hard to get everyone to understand that the price per square foot does not take into consideration so many things...pools, lot size, lot location, privacy, landscaping, ect. You see listings these days that advertise their low price per square foot, and last week I even had a builder pushing the number (after he took off the lot premiem price). What does everyone else tell there clients when they are asking about the price per square foot?

The worst part about showing property - the day after

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Tue, 29 Aug 2006 13:06:49 -0500

From time to time we all end up spending a day showing property. Whether it is 5 homes or 15, it can be a full day depending on our clients. I honestly enjoy setting up the appointments, as I talk to many realtors who are only too eager to tell me how motivated their sellers are. I enjoy looking at the homes with my clients, working toward our goal of finding them the perfect home, and in many cases becoming good friends at the same time. But the worst part of the day, is the day after, when every one of those agents is calling me (starting as early as 8 a.m.) is asking for feedback. In one recent case, the agent called me less than 15 minutes after I left the house. I realized feedback is important, and I want it for my listings as well. However, I do try to wait a day or two (or after the weekend, depending on the day of showing) and I try not to call to early. I am scheduled to show an out of town couple 13 houses on Friday and another 14 on Saturday, and I am dreading the calls that I know will be coming all weekend. Comments?

Tired of Junk email from other agents

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Sat, 26 Aug 2006 15:11:29 -0500

Are any of you as tired of junk email as I am. I understand I will never stop all the junk email from everyone trying to meet me, sell me viagra, or offers me a free plasma TV (if I do everything they ask), but I really hate the number of emails I am getting these days from other real estate agents telling me of their listings. With our local MLS, I can do a good job finding the listings that interest my clients, so I really don't need the 10 plus extra emails I get from agents I have never heard of telling me about their listings. Is this a problem just with our local MLS board (how do they get away with sending junk email to all the agents?) or is everyone having a similiar problem?

Competition for Sellers

Rob Johnson CLHMS, ABR, e-PRO, CSP (Simms Team - ALVA International) — Sat, 26 Aug 2006 14:58:43 -0500

While much is being said about the many homes currently on the market, new home sales are increasingly becoming part of the competition. Two years ago the idea of a builder negotiating with buyers was unthinkable in Tampa Bay. The builder put an ad in the newspaper, and the next morning lines formed in front of their office with individuals willing to write deposit checks immediately. But with the cooler market, builders are now offering huge incentives to entice buyers, and normal sellers are having a very hard time to compete.

Today builders are willing to negotiate on the price, throw in many costly upgrades (to include pools), and with many owning their own mortgage companies, the builders can offer discounts on closing costs and interest rates that make their packages very hard to compete with. I showed 16 houses to a family yesterday, only one of which was brand new and sold by the builder. But the price offered was almost $25,000 less than the same model was selling for three months ago, and included a pool and spa, and they were throwing in up to $16,000 for closing costs (to include buying down the interest rate). Last week I was looking at townhouses. Checked on one I visited in June. In June, the cost was $274,900. Today, for the same model, they offered it at $200,000, zero closing costs, and all prepaids (insurance and maintenance fees) included. Hard for a seller trying to sell his same model (in many cases bought for a higer price) to compete.

These are just a few thoughts for you to consider when you are wondering where all the buyers have gone.