Archive for July, 2007

Element Highrise Condos Tampa Offering Buyer Incentives

July 27th, 2007 categories: Tampa Condos, Tampa MLS, New Projects (Condos)

Downtown Tampa’s next highrise condominium project, Element is offering some nice incentives for buyers this summer. Element is currently under construction and is being built just north and east of Skypoint, Tampa’s first high rise condo project from the same developers, Novare and intowngroup.

Element, which will look very similar to the just completed Skypoint, will be 34 stories up, with 395 residences and over 15,000 sqft of retail space. Features of the building will be similar to Skypoint with the “resort-style” pool, outdoor bar and cabanas, clubhouse, fitness center and 24/7 concierge. It will also be high tech with wi-fi throughout and telephone and video over internet.

Pricing starts at about $220k currently for a 1 bedroom unit of about 630sqft (interior) with a 60sqft balcony. The 2 bed units begin at about $450k for 1140sqft interior.

Want the top floor penthouse? The penthouse on the front (west) side of the building, is a 2/2.5 of about 2400sqft and is listed at just over $1.1m dollars, while the larger east side penthouse is listed at $30k less.

Incentives for buyers right now include some nice upgrades such as a stainless steel refrigerator, added hardwood flooring, washer/dryer, paid condo fees, storage space, 42” plasma TV, etc. Buyers can get $5k worth of upgrades on a 1 bed unit and $10k on the 2 bed units.

Next door at Skypoint, buyers have begun closing on the lower floors and the first high rise residents of downtown Tampa are beginning to move in. There are a few resales popping up but not many as of yet. There are 13 of them on the market currently, with a 12th floor, 1 bed listed at $234k and change at the bottom of the price spectrum. The 2 bed resales begin at $370k for a 10th floor unit. The upper floor buyers have not yet closed on their units, and many would-be buyers are most likely waiting to see what will be available once these closings begin.

Browse Condos For Sale at Skypoint

Browse Condos For Sale at Element (pre-construction sales)

Data used is from the Mid-Florida Regional MLS

Element is marketed by Smith & Associates with cooperation from other brokers/agents.

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Posted by Lenny Gurvich | No Comments »

What It Means To Sell “As-Is”

July 25th, 2007 categories: Tampa Condos, South Tampa, Tampa Florida Real Estate, Home Inspection Tips, Tips for Sellers

It sounds self explanatory, but understanding what “as-is” means with regard to selling or buying a home usually takes some explaining.

When homeowners put the home on the market, they have a choice to sell the home in its current condition (as-is) or offer to make repairs for the buyers before the transaction closes. We always recommend a home inspection before the marketing process begins. That way the seller is made aware of any problems that may come up when the buyers have their own home inspections done. The seller can either make the repairs before putting the home on the market or wait for the buyers to request certain repairs. Alternatively the seller can offer the home in its as-is condition and price the home with regard to any repairs that need to be made.

But here’s what usually happens in an as-is sale: The buyer will agree to purchase the home as-is but with the right to inspect the home for say, 10 days or so. A smart buyer, or one who is well represented, will also have the right to cancel the purchase based on the results of the home inspection(s). Or they may have the right to cancel the purchase if necessary repairs exceed a certain dollar amount.

So the buyer, in holding the “right to cancel card”, certainly has a strong asset in negotiating any repairs, price reduction, etc. If the buyer finds any major repairs that need to be made, that buyer will most likely ask the seller for some help. The buyer may demand a price reduction or that some cash be held in escrow to pay for the repairs. And if the seller does not agree? The buyer may just walk, especially in this market, where more realistic sellers with a home that needs no repairs may be just down the street.

Hopefully, for the seller, the home inspection passes with flying colors and the buyers accept the home in its “as-is” condition, waive the right to cancel, and proceed to closing. Which brings us back to the pre-listing home inspection, something we always recommend. Our advice, especially in a strong buyers’ market, is to get the home professionally inspected and make repairs before putting it on the market. A seller can then have confidence in promising to make any needed repairs for the buyers because no repairs will be needed.

But maybe a seller has major repairs to make but no cash to make them. Then be sure to disclose all known repairs that need to be made and price the home accordingly, or be ready to give up some proceeds from the sale so that the buyers can make the needed repairs.

Also Read: Why Hire A Home Inspector?

 

Posted by Lenny Gurvich | 2 Comments »

Tampa Listings Break Through The 9000 Level

July 24th, 2007 categories: Tampa Real Estate, South Tampa, Tampa MLS, Tampa Market Conditions

While it’s no big increase, it is significant. The number of residential listings in Tampa started the year around 7200. Shortly thereafter the sellers came on strong and drove the number of listings up to around 8800, where they eventually stabilized by the first of May.

But a quick check of the number of active listings in the City of Tampa this morning shows 9011 of them. Not a big increase, since we were at 8987 back on June 29^th, but significant nonetheless, especially since the number of pending listings (under contract to be purchased) has begun to decline somewhat. Pending listings had been stable at around 1500 to 1600 for a awhile but as of today they are at 1343. Granted these are not big changes but what is significant is that the difference between the two numbers is the greatest it has been since the the roller coaster began its downward run in late 2005. There is a large gap between sellers and buyers or supply and demand.

So what does all of this mean? It means that supply is still creeping upwards while demand for homes in Tampa is waning even more. For sellers, generally speaking of course, it means things are not getting any better and in fact they may be getting worse. Add to that the fact that we are approaching the slow season around here, where buyers will be even fewer and farther between. Sellers must be aggressive in making their property stand out in the crowd. Pricing and packaging are most important, and offering incentives and being flexible with any prospective buyers is a must.

For the buyer who has decided now is the time to buy, there is plenty of room to roam and much to see. For example, let’s say you’re looking for a single family home between Kennedy and Gandy boulevards, at least a 3/2 with a 2 car garage, and priced between $300k and $400k. Two years ago, it was hard to find anything in that area with a 2 car garage for under $500k. Today you’ve got 12 of them to choose from. You’ve got another 20 with a 1 car garage. Garage not important? Well then take your time in sifting through the 81 homes on the market that may fit your needs. Oh, and 12 of them have a pool if that’s important. Those 81 homes have been on the market for an average of 106 days. 

So while the market as it relates to supply and demand has not seen a major change, the advantage to the buyer is becoming slightly more pronounced and will most likely continue to do so as we move through the second half and end of 2007.

Data used is from the Mid-Florida Regional MLS for residential properties where city = Tampa.

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Posted by Lenny Gurvich | No Comments »

Ghost Buyers Of 2005

July 16th, 2007 categories: Tampa Real Estate, New Projects (Condos), Tampa Market Conditions

A Realtor friend of mine recently sent this photo out in an e-mail announcing a new listing of his. When I saw it I immediately replied informing him that the place was haunted and asked “What’s up with the ghosts?”, to which he replied, “That’s some buyers from 2005”.

So while the place is haunted, at least it’s haunted with the happy-go-lucky speculative, aggressive, well funded, credit worthy, harmless buyers of 2005. And since there are such spirits occupying the place, it should bode well for the seller in the fact that some of that should wear off on any buyers passing through this Tampa Condo in the summer of 2007. No need to call the Ghostbusters on these guys. They’re cool.

Posted by Lenny Gurvich | No Comments »

How Long Should It Take To Sell My Home?

July 16th, 2007 categories: Tampa Real Estate, Homes For Sale in Tampa, Tampa Market Conditions, Tips for Sellers

This is a question we receive from just about any homeowner interested in selling, especially with our current market conditions. And I just spent some time reading a good discussion on the same subject by a group of Realtors.

The point made in this article was that there are some crappy agents out there who, in wanting to move the sales process along, will get their sellers to reduce price instead of being patient and making more of an effort to market the home.

I once heard a very successful agent state that “If it doesn’t sell in 60 days, it’s overpriced.” Is this correct? It really depends on the market and the property, right? If there are no serious buyers in the market for that type of property in those first 2 months, then you can assume that it’s going to take some time to sell. If it’s a median priced home for the area, there may be many buyers in the market at any given time. But if it’s a $5m dollar waterfront contemporary, it may take many months for a serious buyer to enter the market.

So to best answer this question for clients I usually look at how many comparable have sold in the last 6 months and how many are pending. This gives you an indication of demand for the product that you will be bringing to market. I then look at current inventory of comparable properties, which indicates supply.

If similar homes are selling at a rate of 4 per month, and you decide to price near the bottom of the current inventory of active comparables, then you may appeal to the buyers who are in the market currently, and get a quick sale. If you price at the top of the inventory, you may be waiting a while longer in making the other properties look like a better value.

I always compare the real estate market to a retail store in trying to answer the “how long will it take” question. If no one is “in the store” when you price the product and put it on the shelf, you’ll need to wait until the door opens and someone comes in the store. But if there are plenty of people in the store when you put the product out there, you may sell it quickly.

But right now the shelves are full and the store is pretty darn empty. So when you bring your widget out there to display on the shelves, it better be priced so that the few people in the store will see value. If not you’ll have to wait for more customers to come in the door to the store. The doorbell isn’t ringing too often these days. And once you begin the process of mark downs, some customers will sense that no one else wants the thing and they too will pass it over or wait for further reductions.

Granted the this is a simplistic analogy, and the question is not an easy one to answer. But the homework has to be done to find out where to best position the product with respect to pricing. And the quality of the homework, the product itself, the packaging, and supply and demand will help decide the answer to “how long”.

Posted by Lenny Gurvich | No Comments »

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