Island Weather – We had a few much-needed showers here this week and spring is in full bloom. Here are some photos taken today by teammate Dave when he was out on his Friday rounds.
Realtor Rally to Protect the American Dream
Yesterday as part of the National Association of Realtors Mid-Year Business Meetings in Washington DC, more than 13,500 Realtors® from across the country gathered on the steps of Capitol Hill to tell members of Congress that Home Ownership Matters – to people, to communities, and to America. Another nearly 14,000 attended the Rally virtually, through the internet. This gathering is particularly important now, because despite the heated rhetoric of an election year, Realtors® remain focused on home ownership, housing and real estate issues. We know that the challenges our country faces are not going away after November. We believe that everyone should have the opportunity to pursue the American dream of home ownership, and we will fight against obstacles that make it more difficult for people to buy, own and invest in real estate. Thanks to our Sanibel friend and National Association President this year, Moe Veissi from Miami, there was a huge group of attendees from Florida. From just our immediate area in Southwest Florida, last count showed 232 members at the Rally. I am proud to be one of them.
Vacation Homes Beckon
“If you’re thinking of buying a second home in the next five years, this might be your best opportunity…. Vacation-home sales are perking up as low prices pull more buyers off the fence. Yet many are looking for properties close to home instead of in far-off destinations….Near-record-low mortgage rates, bargain prices and dwindling home inventories are bringing some once-untouchable markets within reach for the first time in a decade, say housing-market experts….Sales of vacation properties fell 56% between 2006 and 2010, but climbed 7% in 2011 to 502,000, according to the most recent survey by the National Association of Realtors (NAR). Yet prices remain soft; according to NAR, the median price on vacation homes dropped more than 19% in 2011…Miami, for example, which already has seen prices of all homes drop 54% since 2007, according to Moody’s Analytics, is expected to lose about 0.1% annually over the next five years. Meanwhile, Napa, Calif., whose prices have also been slashed in half, could see prices rise nearly 10% a year. Realtors say they are even seeing such dichotomies within markets, with sales in more-desirable locations starting to perk up. In New York’s Hamptons, for example, homes positioned north of the Montauk Highway are languishing on the market for months, while well-maintained homes south of the highway, which are closer to the ocean, are sometimes getting multiple offers within days.”
“The first: momentum. If you considered an investment in the stock market, looking at how prices moved over the past year would be a poor way to estimate future performance. On the other hand, research by Yale University Professor Robert Shiller, widely credited with predicting both the stock market crash of 2000 and the housing bust, has shown that momentum in home prices has staying power. Then again, prices have been dropping in many markets for five years already, and most experts believe the steepest drops already have taken place. And some stronger vacation-home markets, such as Burlington, Vt. (up 1.3% in the past year), have momentum on their side.
“A second point to consider: financing. Even though rates are low, lenders’ standards for making loans are tight. And real-estate agents say deals are falling apart even after buyers obtain initial mortgage commitments. That means buyers who can offer all cash have a leg up over those who make offers contingent on financing. Buyers who don’t want to tie up that cash forever might consider purchasing the house with cash and then taking out a mortgage later. All-cash sales dominate in some of the most beaten-down markets….” To read the entire article, here’s a link.
What Should a Seller Know
A recent case discussed in the May issue of Florida Realtor® expands on what a seller should reasonably know about material defects. Most Realtors® know that if they are aware of a defect that materially impacts the value of a listed property they must disclose that information to a prospective buyer. Examples of these defects include defective drywall, pest problems, leaky roofs, etc.
“In the 1985 case of Johnson v. Davis, the Florida Supreme Court ruled that a home seller who knows of facts that materially affect the property’s value, that aren’t readily observable and aren’t known to a buyer, has a duty to disclose them to the buyer. This is the law in Florida today.
“A nondisclosure claim under Johnson v. Davis has four elements: the seller of a home must know of a defect in the property, the defect must materially affect the property’s value, the defect must not readily observable by the buyer and must be unknown to the buyer, and the buyer must establish that the seller failed to disclose the defect to the buyer.
“Recently in Jensen v. Bailey, the 2nd District Court of Appeal rendered an opinion that focused on the first element of liability under Johnson v. Davis. Specifically, the court considered whether anything less than actual knowledge is sufficient to satisfy the first element.
“The facts of the case were as follows: The seller had done substantial remodeling. After closing, the buyer discovered that permits were required for the work but were never obtained, the work hadn’t been properly done and it didn’t conform to code. Reconstruction in conformity with newer, more stringent codes would be required.
“The trial court found no evidence that the seller knew that the contractor had failed to obtain permits or that the work hadn’t been property done, but it found that the seller was liable to the buyer based on a “should-have-known” standard. However, the appellate court disagreed, reversed the trial court’s final judgment, and held that in order to hold a seller liable under Johnson v. Davis, the buyer must prove that the seller actually knew of an undisclosed material defect.”
Sanibel & Captiva MLS Activity May 11-18:
1 new listing: Pelicans Roost #206 2/2 $849K.
11 price changes: Sundial #G207 1/1 now $249.9K, Tennisplace #E33 2/1.5 now $256K, Blind Pass #D205 2/2 now $263.4K, Sundial #D412 1/1 now $315K, Sea Pines #D 3/3 now $459K, Cottage Colony West #101 1/1 now $515K, Heron at The Sanctuary III #1B 3/2.5 now $599K, Pointe Santo #E32 2/2 now $789K, Sundial #E305 2/2 now $835K, Pointe Santo #C3 3/2 now $899K, Ferry Landing #1 2/2 now $1.195M.
5 new sales: Sundial #D305 1/1 listed for $269K, Lighthouse Point #217 3/2 listed for $339K, Signal Inn #2 1/1 listed for $379K, Sandpiper Beach #205 2/2 listed for $599K, Junonia #202 2/2 $799K.
8 closed sales: Colonnades #C55 1/1 $150K, Sanibel Shores #E 2/2 $259K, Sundial #F408 1/1 $277.5K, Sanibel Arms #C1 2/2 $398K, Sandalfoot #4A3 2/2 $500K, Cottage Colony West #138 1/1 $500K, Tarpon Beach #308 2/2 $615K, Tarpon Beach #301 2/2 $715K.
3 new listings: 1052 Fish Crow Rd 3/2 $630K, 1206 Par View Dr 3/2 $759.9K, 2548/2550 Wulfert Rd 3/3.5 townhouse $799K.
4 price changes: 1647 Sand Castle Rd 3/2.5 half-duplex now $325K, 2027 Sunrise Cir 4/4 duplex now $516K, 561 Lake Murex Cir 3/2.5 now $629K, 9470 Balsa Ct 3/2 now $725K.
3 new sales: 1649 Sand Castle Rd 3/2.5 listed for $415K, 335 East Gulf Dr 3/2 listed for $725K, 5864 Pine Tree Dr 3/3.5 listed for $829K.
2 closed sales: 6101 Castaways Ln 4/2 $540K (short sale), 4809 Tradewinds Dr 3/3.5 $1.3M.
No new listings or price changes.
1 new sale: 1114 Seagrape Ln listed for $475K.
1 closed sale: 1120 Olga Ave $250K (our listing & sale).
No new listings, price changes, or new sales.
2 closed sales: Beach Villas #2516 1/1 $410K, Beach Homes #32 $1.665M.
1 new listing: 14971 Binder Dr 3/3 $2.995M.
2 price changes: 11521 Laika Ln 3/3 now $1.375M, 11516 Andy Rosse Ln 6/6 now $2.175M.
No new or closed sales.
Nothing to report.
This representation is based in whole or in part on data supplied by the Sanibel & Captiva Islands Association of Realtors or its Multiple Listing Service. Neither the association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or its MLS may not reflect all real estate activity in the market. The information provided represents the general real estate activity in the community and does not imply that SanibelSusan Realty Associates is participating or participated in these transactions. If your property currently is listed with another broker, this is not intended as a solicitation of that listing.