FortMyersAreaRealEstate.com

11.05.2011 - Fort Myers Beach Market Report

giovimimmo@gmail.com — Sat, Nov 05 2011 15:39:45 America/New_York

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The Fort Myers Beach Real Estate Market has seen it’s share of fluctuations in years passed. Currently home sales are on an uptrend and are expected to maintain momentum through 2012.

Information gathered from The Realtor Association of Greater Fort Myers and The Beach show a 9% increase in sales of Single Family Homes in Fort Myers Beach from January through October 2011 compared to sales of Single Family Homes from January through October of 2010.

Median sales price of Single Family Homes increased 3.75 percent to $345,000 from 2010’s $332,500 based on sales comparisons from January - December of 2010 and January - October of 2011.

Interestingly, median sales price of Condos/Town-homes has decreased in 2011 by 5.17 percent to $275,000 from 2010’s $290,000 based on sales comparisons from January - December of 2010 and January - October 2011.

Low interest rates have contributed to the overall rise in sales throughout Fort Myers Beach and the Greater Fort Myers Area. However, continued tight credit standards are stimulating more cash purchases as buyers seek alternative methods of financing through private lenders and/or their parents who offer their children loans and receive better returns than from bank accounts or other investments.

Additionally, Baby Boomers recognize the benefit of purchasing their retirement or vacation home now while prices and interest rates are still low.

Mortgage interest rates are expected to rise to 5.5 percent by the end of the year and continue to rise throughout 2012 with an average of 6.0 percent for the year.

11.04.2011 - What is a CDD Fee?

giovimimmo@gmail.com — Fri, Nov 04 2011 10:06:23 America/New_York

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What is a CDD Fee?

A CDD fee is a payment structured by the developer and the County Commissioners prior to the development of the land, designed to pay for the infrastructure and/or maintenance of the community. It is technically a loan to build the infrastructure of the development, the CDD fee is it’s repayment.

What is a CDD?

A CDD is a Community Development District. This is a special purpose government entity that provides valuable community infrastructure (roads, utilities, amenities) which allows a developer to finance building costs of those areas via tax-free municipal bonds. The bonds pay for roads and utilities, in addition to amenities such as clubhouse, pools, tennis courts and golf courses, etc.

CDD Fees are Split into Two Parts

Part 1: The Capital Bond Assessment is the repayment portion of the loan. However, a new bond can be taken out or the existing one refinanced. If the community as a whole decides to put in a new pool, sports field, etc. A new bond may be issued with approval. When this happens, the neighborhood will be involved in the voting and hearing of the decision making process.

Part 2: Operations & Maintenance Assessment is exactly what it states, it is for operations and maintenance of the common amenities. Common amenities such as pools, parks, sports fields, tennis courts, landscaping, etc. are not fixed costs and can rise according to the amenities that need to be updated or maintained.

Is it a HOA, CDD or Both?

Depending on the neighborhood you can have one, the other or both. If you have just one or the other, they will cover basically the same things. However, a HOA also has a policing or monitoring role that ensures all the neighbors are not violating the restrictions (i.e. messy yard, lanai, unkept pool etc.). ??In larger communities it is common to have both, if so, the local HOA will cover a certain portion of the immediate common grounds & amenities where the CDD might cover the larger items such as pools, trails, main club house, etc.

Can a CDD fee change?

Yes. Both parts, the Capital Bond Assessment and the Operations & Maintenance can be updated according to costs or budget increase. When it does happen, each homeowner should receive a notice in the mail and if it is a budget related issue, a hearing will be held with voting for the proposed changes.

Is the CDD Fee a tax?

No, it is not a tax, although since it's displayed as a non-advalorem assessment on your tax bill, it is often misunderstood as one. It is a budgeted community fee, like a HOA fee. The CDD fee is an "assessment" and although it is included in your property tax bill, it is not a property tax. It is included in your tax bill so the tax collector may collect it for the CDD (Community Development District).

These assessments are in addition to county and other taxes and assessments and will appear on the annual real estate tax bill for each owner, payable directly to the County Tax Collector.

How does the CDD Fee Effect My Closing?

It is worth noting that while taxes are collected in arrears (the year that has passed) the CDD portion of the tax bill is collected in advance (for next year). This is important to know for the closing statement or HUD where the proration of tax is listed. At closing the buyer will receive a credit from the seller for the tax portion of the tax bill. The proration is calculated from January first to the closing date. However, the buyer will be responsible for the CDD portion of the real estate tax bill for the following year.

Do all neighborhoods have a CDD Fee?

No, CDD is setup in the planning stages of the development, which is prior to groundbreaking. CDD fees are common in newer communities and unlikely to be found in older developments.

10.23.2011 - Shell Factory - Local Produce, Plants and a Local Friendly Atomosphere

giovimimmo@gmail.com — Sun, Oct 23 2011 14:07:53 America/New_York

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Wondering where to go for great local produce at a fair price year round? The Shell Factory has a flea/farmer's market every Tuesday, Thursday and Saturday from 7:00 am to 1:00 pm. You can access this great market from US 41 (Tamiami Trail).

Also available at The Shell Factory are great deals on landscaping plants and other items, including things that might be hard to find. On one of my trips I was able to find a navel orange tree for $35, on another trip a hand water pump for $25.

Perhaps you have a few items taking up space that you'd like to sell? The Shell Factory's market is a great venue to sell your wares without spending too much in overhead. It is quite popular especially during "season" when our winter residents pay us a much anticipated visit. For $10 you get 2 parking spaces and can set it up any way you like. Just be sure to arrive early (before 7:00 am) to stake your claim and be sure to have cash on hand for the handler when he stops by to collect.

While you are there you will want to check out the many other attractions The Shell Factory has to offer. Along with delicious seafood fare at Captain Fishbones, The Shell Factory has a nature park, arcade, salt water taffy and so much more. As The Shell Factory like to say, "Come Visit and Spend The Whole Day" because you sure could!

Where: The Shell Factory, 2787 N. Tamiami Trail, North Fort Myers, FL
When: Tuesdays, Thrudays and Saturdays 7:00 am to 1:00 pm
What: Flea/Farmers Market and Nature Park at The Shell Factory

10.22.2011 - Condo Financing - Can you get it?

giovimimmo@gmail.com — Sat, Oct 22 2011 11:39:14 America/New_York

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Obtaining condo financing is not easy but not entirely impossible. Lenders are much stricter today than ever and an application for condo finanicing must also include the condo project being approved in addition to the borrowers approval. The condo project will fall under a considerable amount of scrutiny in order to be approved. The level of scrutiny depends on the amount of down payment.

When submitting an application for condo financing, the application must include the following:

Condo documents with budget and Q & A.
The developments management company must complete a one to three page questionnaire.

With 20% down payment:

The lender needs to be certain the budget is adequately funded. Reserves must be a minimum of ten percent of the annual budget. Why? This has to do with insurance deductibles, if there is a catastrophe the lender needs to be certain the development will be able to pay the insurance decuctable.
There are less than fifteen percent delinquencies. There cannot be more than fifteen percent of units with outstanding condo fees to the association.
There must be no more than forty percent rentals in the entire development. The IRS considers condos that are occupied two weeks out of the year as a secondary home, not a rental property. While the percentage of total units that are rented might be over forty percent, the number of units that are rented annually may fall below the forty percent mark.

With 30% down payment:

There must be no more than forty percent rentals in the entire development. The IRS considers condos that are occupied two weeks out of the year as a secondary home, not a rental property. While the percentage of total units that are rented might be over forty percent, the number of units that are rented annually may fall below the forty percent mark.

As with any Real Estate purchase, it is essential to be pre-approved before making an offer to purchase with finanincg. In today's market it's more important than ever as most sellers will not even consider an offer for purchase without a pre-approval letter.

Recieve your pre-approval letter, click here (coming soon).

09.06.2011 - Tips for Buying or Selling Furnished Property

giovimimmo@gmail.com — Tue, Sep 06 2011 16:00:22 America/New_York

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Buying or Selling a Furnished home or condo can be a little tricky. There are a lot of issues that can arise from this type of sale, both for the Buyer and Seller. Once you know the ins and outs of this type of transaction, staying on top of the situation is easy.

Non realty items should be negotiated separately and conveyed via a bill of sale. However, handling this type of transaction is sometimes unavoidable. This comes up a lot in Florida because a large percentage of homes and condos especially on or near the beach, are sold furnished turnkey. What to do in this situation?

Apart from trying to separate the sale of realty and non realty items, other issues and disputes can arise on the actual personal property

For Buyers - I recommend buyers who might be interested in a home that is offered furnished to take lots and lots of pictures of EVERYTHING, BEFORE making their offer. Over the years I had heard countless stories from associates until one day it happened to me, tv's, linens, and appliances etc had been switched out for lesser quality items with nothing for proof other than he said / she said. My solution: Open up anything that contains items included in the sale, kitchen cabinets, linen closet etc and snap away. Any discussion or dispute post sale over personal property is then immediately squelched or resolved because as the saying goes, a picture tells a thousand words.

For Sellers - If you are selling your property furnished but want to keep a few of the items, pick up some little round neon colored stickers, go around your home and place stickers on items you want to keep which are NOT included in the sale. The time to do this is within the first couple of days listing the property and before the home is shown to prospective buyers. The correct place to display the sticker is facing out so it is obvious at a glance and is displayed if a photo is taken.

The best way to handle a transaction which includes furniture is to negotiate the furniture separately and convey it via bill of sale. I've found this can at times be impossible to accomplish because the seller does not want or need the furniture nor do they want to move it all back to their home state if the buyer doesn't want to negotiate the furniture. The furniture must convey with the sale.

This is where it might get a little complicated, if the property is advertised as furniture negotiable, the seller could get stuck with the furniture. Yet it would be misleading to advertise the property as furnished and add furniture negotiable in the marketing comments. This could also deter potential buyers from even looking at the property. The only way to get through it is offer the home furnished, period.

finacing with furniture could be an issue, the property might not appraise at the amount negotiated to include furniture. The furniture must then be separated and sold via a bill of sale. At this point, if the furniture is dated the seller might have to accept his losses and renegotiate the whole sale at the appraised price and haul off the furniture if the buyer refuses to negotiate for the furniture. To save time should this occur, make sure the furniture is listed in an addendum to the contract in your initial offer, not directly in the contract.

For me, the best way to handle this type of sale is to cover all of these points with the buyer or seller prior to an offer. After reviewing closed sales in the area, a price is established based strictly on Real Estate. On a separate paper the furniture is itemized with REALISTIC prices for the personal property. I ask sellers to check e-bay and craisgslist to get an idea of what used furniture sells for, adjusting price for age and condition. This way everyone buyer and seller alike, are prepared once an offer is received for your listing that is advertised as furnished turnkey. Ego's are less easily bruised and there is a strategy in place to handle a situation should one arise.