Real Estate in Northeast Florida and Around the World

Summertime in Northeast Florida is like reading a novel....warm sultry nights, cool afternoon seabreezes, sitting under the shade of a Southern Live Oak tree while sipping sweet tea.  You can almost set your watch by the unfailing afternoon thunderstorm, and you know it is July when you start hearing the cicadas chirping in the trees.

One of the great things about Northeast Florida is that you truly feel like you live in the south.  Funny as it seems, the further south on I-95 from Palm Coast (the southern portion of Northeast Florida), the less it feels like you are in the south.  Northeast Florida brings all of the southern charm that you expect from the south, but blends a different flora, accent and flavor than parts south of us. 

We have white sandy beaches, clean surf to swim, fish or sail in and golf courses a-plenty!  If you are interested in owning your own place in the sun, but want to enjoy a break from the heat after the summertime wanes, give me a call and let me show you around my neighborhood - it's a great one, and I know you will think so too!

You may have heard that Congress may be extended the Home Buyer Tax Credit, which expires today.  As always, the reader needs to be disciplined to read more than the headline.

On Tuesday, the House of Representives passed a bill which includes extending the tax credit closing period, allowing buyers who were under contract by April 30, 2010 to close as late as September 30, 2010.  What this will allow is for those buyers who are trying to close on a short sale transaction more time to get their transaction closed, although there are other types of transactions that will also benefit.

Because short sale transactions involve the lender approving accepting a short payoff, the amount of time to gain approval of the terms can be very lengthy, in some cases up to six months after the seller's accepts the terms of the offer.  While HAFA (Home Affordable Foreclosure Alternatives) sets out guidelines that buyers and servicers must follow, thus helping to standardize the process and reduce the processing time, it is still a lengthy process. 

So, if you are waiting to buy a home thinking that Congress will extend the tax credit, understand fully what you are waiting for - it does not appear that Congress will extend the overall program to allow new buyers to participate, only to give more time to those that were under contract by April 30, 2010.

For more information on the tax credit, please visit my page by clicking on the menu item to the left.  If there is other information that I can provide, do not hesitate to contact me by email (MissiHowell@MissiHowell.com) or telephone, 904-716-1713, or just stop me next time you see me around the neighborhood!

At the top of every newscast, newspaper and radio broadcast is more information on the BP Oil spill.  Why?  Because it is a tragedy of unequaled magnitude that just won't stop. 

Unlike the recent earthquakes that did damage over a matter of seconds, and where cleanup could be estimated and started as soon as the earthquake quieted, this tragedy continues every moment of every day, making the charge to recovery a postponed event with every passing hour.  While BP's people in front of the media may be bungling responses, I have no doubt that there are many, many people working around the clock to discuss, analyze, test and implement the solution.  Engineers typically do not make good spokespeople - they are very good at what they do, but many times lack media worthy communication skills.  Although interestingly, the people that they have put in front of the media didn't get that right either.  I digress. Sorry.

Why am I writing about this?  Because of the direct and indirect effect on the Gulf region and specifically Florida.  In conversation with my colleagues in the gulf areas, they have seen a shying away from prospective buyers from oceanfront property, because of the fear the damage will reduce values along the coast.  The same is said for the already challenged South Florida real estate market.

What about Northeast Florida - what is the risk to our white beaches?  According to studies done at University of North Florida and Jacksonville University, it has been determined that Northeast Florida beaches are at a very low risk of contamination, as the gulf stream that would carry the red-brown sludge around our borders runs from 40 to 60 miles east of our coast line.  This is another blessing to not having the warmer gulf stream waters so close - the other of course, is that hurricances typically like to hold onto that warmth.  Our beaches appear to be safe - and while I hate to even say that because some may say it sounds as if I am bragging about our shores at the detriment to others, I am one that believes the attributes of Northeast Florida are not elevated enough.  Our hearts go out to those in the impacted areas - we also enjoy those gulf coast beaches in our personal lives, and suffer as an industry when our Florida real estate is suffering.  However, if you are a prospective investor who is shying away from Florida real estate because of the oil spill, don't overlook Northeast Florida.

This is not an article to slam BP or promote or condemn off-shore drilling.  Trying to simulate a disaster recovery plan where so many failures occurred is beyond most people's comprehension.  Eventually the facts will demonstrate the points of failure not only from the physical side, but from the planning and management side as well.  I was trained in process improvement and risk analysis in my former career, and what cannot be done now is a knee jerk reaction, even though that feels to us like that needs to be done.  The process to resolve this problem is one step at a time, analysis of all possible solutions and then applying the hypothetical improvement one step at a time.  Because, they have to solve this problem without creating another one.  The emotion that is being displayed from anger to grief does not create a solution - only the methodical scientific approaches that are being discussed and attempted will effectively work. 

My wish and everyone's wish is that whatever the  approach that will finally plug this bounty of oil is found and soon.  Our oceans and the undiscovered wealth of life that it contains and is in jeopardy depend of speed and accuracy in stopping this mess.  Our neighborhoods depend on it - ask me how next time you see me passing through your neighborhood.

On a daily basis I am asked at least once about the state of the Northeast Florida real estate market.  How's business, is the market improving, what's going on, etc.  The answer is not a one word or a one sentence answer.  What we have is a Tale of Multiple Markets.

The first market is the one most discussed.  It is comprised of the distressed sales - the short sales and foreclosures.  42% of the overall closed sales in May 2010 were lender-mediated transacations, so the influence of this population is definitely still being felt in Northeast Florida.  This will continue to influence prices in this market, and in some cases in the non-distressed sales.  Some areas have greater than 50% of the homes for sale in the distressed or lender-mediated category, and in these areas, prices have seen the sharpest declines. 

The second market is the non-distressed market.  These are homes where there is no duress on the seller to sell, other than they want or need to for a reason other than they are in some type of financial distress.  Several areas in town have less than 20% of homes for sale in this category, and in a couple of areas, less than 10% of the homes for sale are distressed. This inventory is divided into 2 parts - the house that needs updated, and the house that is move in ready and updated to today's buyer's tastes.

So what is selling?  Depends on the buyer.  The thing to ask yourself as a buyer is what is most important to you?  Price, condition or location?  And if price is the most important thing, remember that sale price does not equate to what you will end up spending if the condition of the house is less than what you desire.  You may pay $20,000 less than market value to get your name on the deed, but you may end up putting another $30,000 for paint, carpet, updating the kitchen/baths or replacing a roof or a/c unit, all because the previous owner neglected to do any of these things.

I have had many buyers begin their process telling me "show me the short sales and foreclosures, I'm not afraid of paint and putting in my own sweat equity".  Until they go through this inventory and see about 15 or 20 houses that all have been neglected, they always think this is what they want.  Do I forewarn them?  Sure.  But this is a market where the buyer has to see it, feel it, smell it, etc., before they really understand what they want - and it typically is not something they have to put that much time/energy/money into.  Many people do not really understand the magnitude of what they are asking for until they are faced with it.  That's OK, I understand this and show them, because at the end of the day, I want my customers satisfied with their decision.

So - the distressed markets see the more drastic price declines and also the non-distressed sale, but where the house has not been brought up to snuff for today's buyer.  Today's buyer wants "move in ready" and "updates to today's look" - meaning the flooring, kitchen and bathrooms need to be updated, walls painted and absolutely clean.  Anything less will result in offers that will be surprisingly low to the seller.  As we learned in Econ 101, price is driven by supply and demand.  The supply of move-in ready and updated homes for sale is in short supply, and these are the homes - in all price ranges - that are not only getting their asking price when they are appropriately priced, but also are getting competing bids from multiple buyers.  The other houses - well, they sit on the market and eventually will sell - once the price has been dropped to "make up" for the deficiencies that the buyer feels is present.  This is why even with the inventory levels still above average, I have buyers asking "is this all there is?" when I show them the list of homes that have met their criteria.

If you want top dollar for your house, you need to understand that condition will always bring the highest and best offer or the low-ball offer.  And if you are looking for a "bargain", trust your real estate professional to help you find value - because lowest price does not equate to value - and in this market, you need an expert to help you understand the difference.  I am continually looking at our market inventory all over NE Florida, as my customers have varying needs and interests, and this market changes every day!  If you need help navigating through the neighborhoods, just give me a shout or a wave - cause I'll probably be cruising through - or better still, just give me a call and we'll chat over a glass of iced tea.

See you around the neighborhood!

Tomorrow is a day a remembrance for those who have sacrificed time with their families, in pursuing personal dreams and even their own lives to defend the wonderful freedoms that we enjoy on a daily basis in the United States of America.  We honor those who have provided their service, whether drafted or voluntary, in the Navy, Army, Air Force and Coast Guard.

Let us not forget those who stood in their places while they served their time as well - the women who worked in factories, farms and motor garages during World War II, women and men test and training pilots, merchant marines and the like.  And all of the folks at home who also sacrificed.

And even today, the sacrifices that are made so that our nation remains strong, defending our right to worship as we please, live in our homes without fear, have food on our table without paying dearly on the black market.  We have had so many liberties for so long, we sometimes take even the small things for granted. 

So tomorrow, as you are in your neighborhood, remember those who have served and sacrificed and thank them - even just giving a wave will let them know you care.

To all the Mothers out there - or those who provide a Mothering touch to those who need it - Happy Mother's Day!

In 1905, Anna Jarvis of Grafton, West Virginia, swore at her Mother's gravesite to continue her mother's work to have a day of honor for all mothers.  In 1907, at the St. Andrew's Methodist Episcopal Church in Grafton, Anna passed out 500 white carnations - one for each mother in the congregation.  A year later, on May 10, 1908, the Church responded by dedicating a Sunday service to mothers.

West Virginia became the first state to adopt Mother's Day as a recognized holiday in 1912, and in 1914, the United States Congress made Mother's Day a recognized national day of remembrance. 

Interestingly, Anna Jarvis strongly opposed the selling of flowers and greeting cards associated with the day of remembrance.  So maybe in honoring the original spirit of the holiday, make a handmade card and pick her a wild posey (OK, maybe check the state laws first on the cutting of wild flowers).  At a minimum, call that person in your life that you think of as a mom - whether it is your mom, or someone that you know that does a great job of being a mom, and tell her thank you.  Being a mother, I will tell you she will appreciate it.  And being a native West Virginian, I am proud to continue Anna Jarvis' work and let my friends, family and customers who are mother's know that they are appreciated.

Have a wonderful day - and maybe I'll see you around the neighborhood picking a wild posey!

Ahhh, one of my favorite times in Northeast Florida.  Time for The Players Championship at the TPC Sawgrass at Ponte Vedra Beach.  Am I a golfer?  Unfortunately, no.  Between being a mother, wife and having a full-time career for most of my life, I never really had the opportunity to learn (but it is on my bucket list).  But - I am always intrigued to watch these fabulous players with their masterful strokes and wonder how they can get that dimpled orb to go exactly where they want it to go.

But, the most fascinating thing to me is the people that come out to this magnificent sporting event in our own backyard.  There those who come to follow their favorite golfer from hole to hole, jockeying for the best viewing position, those who come to claim their spot at the famous "Island Green", the 17th hole surrounded by water, where many a famous (or infamous) quote or stunt has been witnessed of golfers by their insatiable fans.  There are the fashion-conscious that come in their spiked heels, flowy dresses and hats, and those that come in their camoflouge, I guess trying to hide from the likes of me who come to watch all of the diversity of people that stream by like the waters of the Atlantic Intracoastal Waterway that flows nearby. 

I also enjoy the peacefulness and beauty of the TPC Stadium Course at Sawgrass.  Even with thousands of people mingling about, there is quiet.  You can see and hear mother Ospreys teaching their eaglets to fly.  Mallards and geese and water turkeys in the ponds around the course.  Landscaping that would make Martha Stewart envious.  One year I was engulfed in the drama of an alligator in the pond along the 18th fairway chasing a water turkey.  The water turkey knew he was there - they just played all afternoon and I'm guessing the gator went hungry that night.  This is my favorite spot by the way, on the hill along the 18th fairway.  I am fortunate to be provided a Clubhouse pass each year, however, I prefer to sit away from the throng to do my people watching.  For networking, the Clubhouse is great and grand, but for my own time - my people-watching time, it's the hill along the 18th fairway that is my favorite spot.

So, if you are in the area this week for our famous golf tournament, look for me - I'll be there, checking out our newest housing inventory in between rounds, which is how I spend most of my time. Give me a wave when you see me around the neighborhood!

You've decided to sell your house, you've found your Realtor, discussed the price and signed the listing documents.  Congratulations - this is a huge step and one that takes a lot of emotional and physical fortitude to accomplish.  But it is still not time to celebrate.

Ring, Ring - you have just been notified that someone wants to see your house.  Congratulations - but still not time to celebrate.  While your house will not be sold unless it is seen, typically there will be many buyers preview your house before an offer is submitted.  Be patient, keep the faith and keep the house in showing condition.

Ring, Ring - your Realtor just called and has informed you that an offer has been received.  Congratulations!  Oh, what's that?  It's 5% less than your asking price and the buyer wants you to pay closing costs?  Deep breath.  After discussing options with your Realtor, you decide to accept, counter or reject......but still not time to celebrate.

Ring, Ring - your Realtor just called and you have a ratified contract.  Congratulations!  Yes, this is a milestone moment, but save that champagne.  There is loan processing for the buyer, inspections to be done and titles to be searched.  Keep packing but don't uncork that bottle just yet.

Ring, Ring - your Realtor just called.  The buyer's lender has not yet approved the buyer - that preapproval didn't account for unverified items, and they are having a hard time with the verifications.  Breathe slowly and deeply.  There is nothing you can do but pray (unless you want to offer seller financing).  Keep packing.

Ring, ring - your Realtor just called.  They buyer's financing has been fully approved, closing confirmed and in just a few days.  Packing is almost done, but you are reluctant to celebrate.  You are getting the hang of this.

Cha-Ching - that is the sound of the closing being finalized.  All documents are signed and the check is now in your hand.  NOW YOU CAN CELEBRATE!!!

Now, I did not write this to be discouraging to anyone.  This is a reality check.  There are many moving parts in a real estate transaction, and the message I want to convey is that when you work with a Realtor, you have a partner to help keep the moving parts moving, and hold your hand along the way.  If you are considering selling your house, and are not yet working with a Realtor, please give me a call.  I'm probably working in your neighborhood - so look for me and give me a wave!!