A recent news article regarding the Cape Coral Foreclosure crisis had city officials stating they were contemplating using the $7,000,000 to purchase and rehab up to 80 homes in the City of Cape Coral and re-sell them to home buyers.
The City of Cape Coral could find much better things to do with the $7,000,000 that just buying and selling 80 homes. Banks are having a difficult enough time trying to move properties they presently own. Keep in mind that the bank owned homes will sell... they always have sold... and they always will. Banks will liquidate these homes if necessary, but the home exteriors need some sprucing up to speed the process along. As part of the agreement to recieve the money the City of Cape Coral does have to buy a certain number of homes to rehab and turn them around to new buyers. But does it make sense to spend all $7,000,000 on turning around 80 homes... or could the money be spread around more?
The Cape Coral Real Estate Market has been very active this year. We have seen a large influx of buyers from all around the United States, Canada, and Europe coming to Cape Coral Florida to purchase Homes, Condominiums, and Vacant Land.
Cape Coral residential sales for third quarter of 2008 have increased 150% from the same time period in 2007. In the last three months 1358 residential improved properties have sold in the City of Cape Coral compared with 541 residential improved properties last year.
Cape Coral Vacant land sales for the third quarter of 2008 have also seen a 130% increased from the same time period in 2007. In the last three months 334 vacant properties have sold in the City of Cape Coral compared with 146 vacant land sales for the third quarter of 2007.
As of today October 20th, 2008, here are statistics on what is presently available for sale in the City of Cape Coral:
- 4304 Single Family Homes
- 696 Condominiums
- 238 Residential Income (Duplex, Triplex, Fourplex)
- 3488 Lots / Vacant Land (Already city maintained through lot mowing assessments)
With a look at the numbers above and the City of Cape Coral's plan to buy 80 homes with $7,000,000 is ridiculous. 80 homes only represent 1.8% of homes presently listed for sale. This doesn't even take into account other potential abandoned properties throughout Cape Coral. Does it make the best sense for the City of Cape Coral to invest $7,000,000 to only benefit 1.8% of properties available?
Realistically it's going to take atleast three to five years for our market situation to get back to some state of normalcy. As a real estate professional selling homes in this market the first deal killer on many of these foreclosed and abandoned properties is the exterior appearence aka "The Curb Appeal Test." $7,000,000 could go a lot farther maintaining property exteriors which would in turn allow many homes to sell faster.
As an example lets say the city of Cape Coral was going to maintain 4500 property exteriors on a biweekly basis between now and the time they sell... because homes are selling. Now not every home for sale in the City of Cape Coral is an REO or abandoned property. I arrived at this figure based on an estimate of homes for sale and the number of foreclosure filings occuring. Weekly lawn care in Cape Coral on an average costs $80 a month. So $40 to maintain the properties biweekly would cost $180,000 a month. Obviously it is going to take more money initially to get the properties looking good... but once they are mowed down the money can still go a long way.
If a home looks good on the exterior you will get the buyers inside the homes and they will fix the interiors. Pretty much any home out there these days is going to need interior work anyways, buyers know this already plan to make improvements. If the home looks bad outside the buyers will most likely never go inside and by chance the interior may be beautiful and not need any work.
The City of Cape Coral needs to bring up the curb appeal of homes citywide and we'll speed up the real estate market recovery process at a much more alarming rate.
ARE YOU FACING FORECLOSURE AND NEED HELP? - Follow this link for more information on performing a Short Sale on your home. We will send you the information and forms needed for us to start the process of performing a Short Sale on your home, condominium, or property.
ARE YOU AN INTERESTED BUYER? Follow this link for more information about buying a Short Sale/Pre-Foreclosure property. By following this link you can search for foreclosures, pre-foreclosures, short sales and other competitively priced properties throughout our market area. Follow this link to be added to our list of foreclosures, pre-foreclosures, and short sale notification list. Once you're on the list you will receive updates as we place new properties on the market for sale and assist on sellers in getting their properties SOLD !!!
ADDITIONAL QUESTIONS FROM BUYERS OR SELLERS ? Contact me for additional information or call me direct.
Scott Slocum, REALTOR
Licensed Real Estate Broker Associate
Florida Future Realty, Inc.
2816 Del Prado Blvd South Unit 2
Cape Coral FL 33904
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"Copyright © 2008 by Scott Slocum. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed without the written consent of the author.