Woohoo…it has been another good week at SanibelSusan Realty Associates. The fall island weather is delightful. Snowbird flocks are increasing which has added a few minutes to our travel times, but since that goes hand in hand with more business, we see it as a plus. Holiday decorations are going up in so many places that we know it will be 2017 before we know it. We wait all year for the busy “season” to begin. It has!
Sanibel & Captiva Islands Association of Realtors®
Yesterday morning the Association of Realtors® East-End Caravan Meeting was well attended. SanibelSusan was pleased to report two new listings, a price reduction, and a sale during the announcement segment. Then from 9 a.m. until shortly after noon, teammates Elise and David both had good turn-outs and excellent feedback at Open Houses at our new listings at Pointe Santo and Gulf Beach.
The activity posted since last Friday in the Sanibel & Captiva Multiple Listing Service follows a couple of news items below.
Upcoming Island Events
Nov 12 – Tomorrow – Trash & Treasures Sale – 8 a.m. to 2 p.m. at Center 4 Life, 2401 Library Way.
Nov 12 – Tomorrow – Arts on the Veranda – 10 a.m. to 3 p.m. at Bailey’s Center – First show of the season, with art by SanCap Art League.
Nov 13 – Sunday – CROW’s 35th “Taste of the Islands” 12 to 5 p.m. at Sanibel Community Park (across the street from SanibelSusan Realty). SanibelSusan will be in the office with the front door open (to hear the music and hopefully snag a few prospective buyers).
Nov 20 – Sunday – Sanibel Annual Thanksgiving Celebration beginning at 6:30 p.m. at BIG ARTS Schein Performance Hall. Free non-denominational celebration of Thanksgiving. (SanibelSusan and fellow BIG ARTS chorus members will be singing, as will a new children’s chorus from The Sanibel School.)
Nov 24 – Thanksgiving Day – Turkey Bowl from 9 to 11 a.m. – 2-hand touch football at Sanibel Community Park, open to all ages.
Ways To Take Title of Florida Real Estate
This week, the Buyers of a listing that is under contract prepared a Contract Addendum to change the name of the Buyer. That happens sometimes after an offer is negotiated and agreed, when the Buyers get back home and discuss their purchase with their financial advisor or attorney.
Most Realtors working with Buyers check the block on the sales contract under Assignability that says: “Buyer may assign but not be released from liability under this Contract.” This allows the purchasers to change the Buyer name, but does not diminish their requirement to proceed with the contract terms.
Sometimes, it is not until after a closing, that new owners want to change how they took title to a property, perhaps by adding a family member or spouse, or by transferring the property to a corporation or trust.
Buyer should beware that transfers after-the-fact likely would create unintended tax liabilities, not to mention a 2nd set of closing costs. The best time to consider how to take title to property is before entering into the sales contract, and if not then, definitely before the closing so that there is enough time for the title company to prepare and process closing documents.
Below is an article that was posted this week on Florida Realtors® on-line (November 7, 2016). It discusses the various ways to take title here:
“There are a number of ways to take title to Florida real estate, and each has potential advantages and limitations. Here are common options:
- Sole Ownership. Unmarried people, those who are legally divorced and married people who wish to hold the property in their own names may use this form of ownership. However, if a married person takes title in his or her own name and the property benefits from a homestead exemption, Florida homestead laws require the other spouse to sign the deed for the transfer or otherwise formally relinquish rights to the property.
- Joint ownership as Tenants in Common. Any number of individuals can hold title under Joint ownership as Tenants in Common with the share of the property, depending on the person’s contributions. Also, in this form of ownership, each owner has the right to sell, lease or bequeath (give away at death) interest in the property to his or her legal heirs.
- Joint Tenancy with Right of Survivorship. Under this type of ownership, all joint tenants have equal rights to their share in the property. In addition, due to the right of survivorship, which is not present for Tenants in Common, when a joint tenant dies, his or her share is automatically distributed among the remaining joint tenants. There are no restrictions on the number of persons that can be joint tenants under a Joint Tenancy with Right of Survivorship.
- Tenancy by the Entirety. This option is available only to married couples and allows the couple to hold title in the name of both spouses. Both the husband and wife have equal possession rights to the property. When one spouse dies, his or her share is automatically distributed to the surviving spouse. There are several advantages to Tenancy by the Entirety. First, it protects the asset if, for example, a creditor is pursuing a judgment against one spouse. Second, it offers control over how the property is disposed of. Unlike Joint Tenancy with Right of Survivorship, Tenancy by the Entirety requires both parties to sign a deed transferring any interest in the property. One spouse cannot sell, dispose of or mortgage the other’s one-half interest without consent/signature. Third, one spouse cannot gift his or her interest in the real estate without the consent/signature of the other spouse. This protects the other spouse from unknowingly losing an interest in the property.
- Ownership through an entity. Rather than own a property as people, owners may choose to acquire it through a separate legal entity, such as a corporation or a limited liability company. Corporations and limited liability companies can have any number of shareholders or members, but rights to the property of individual shareholders or members will be limited to the face value of the shares or membership interests each person holds. Title to Florida property also may be held in the name of a partnership of two or more persons. Partners would have equal right to possession of their respective share in the property.
- Ownership through land trust. Finally, title may be held in the name of a Florida Land Trust, in which the legal title of the property is transferred to a trustee for the benefit of the named beneficiaries. This form of title offers privacy because the deed does not state who the owner is or the amount of the purchase price.”
12 Real Estate Trends
A good article in FloridaRealtor® Nov/Dec 2016 magazine offered the following info, I have extracted the segments most pertaining to our market.
“Next year should be filled with promise for Florida Realtors®, though there are a few warning signs as well, say state and national economists and analysts.
“Barring unexpected postelection federal policy changes, the state’s residential and commercial markets should remain steady in 2017, thanks to the continued inflow of job seekers and retirees.
“”Florida is also a top state for job creation, with a favorable tax climate,” says Dr. Brad O’Connor, chief economist for Florida Realtors. “Tourism has increased, and the retail, healthcare and construction sectors of our economy remain strong.”
“Still, the rapid increase in home prices continues to hamper millennials who may want to transition from renting. And the strong U.S. dollar may result in low demand from international investors and second-home buyers.
“Here are the experts’ thoughts on 12 trends that will drive our real estate market in the coming year.
- Rising Home Prices & Affordability – The U.S. homeownership rate fell to 62.9% in mid-2016, the lowest since 1965, according to a recent Census Bureau report. Tight credit, a shift toward renting and a limited supply of listings were among the reasons….
- Florida’s Population Growth – In 2017, Florida should add 200,000 to 300,000 residents, including a strong inflow of retirees, says O’Connor…IMPACT: More people equal more homeowners.
- Self-Storage May Be The Hidden Gem…
- Brexit – While Great Britain’s vote to exit the European Union could hurt all categories of real estate in the United Kingdom, “Surprisingly anticipated effects on the United States and world economics after the dust settles are minimal or nil,” says Ed Miller, managing director, principal with Colliers International in Tampa. IMPACT:…”Many investors who have been waiting to buy commercial property assets may look to Florida as a safe and stable market. We might expect some acquisitions and dispositions over the next few years, thanks to the Brexit shakeup.”
- Retirees Still Coming – Florida remains a leading state for Boomer retirees. In fact, Orlando Tampa, and Miami ranked No. 1, No. 2, and No.4 respectively, in a recent poll for best cities to retire to, nationwide, according to the personal financial website WalletHub…..
- Canadian Buyers Returning – While Canada traditionally has been Florida’s largest cross-border market, the strong dollar has caused some buyers to delay their vacation home purchases. But that could change in 2017, says Alain Forget, VP, head of sales and business development for RBC Bank, Miami/Fort Lauderdale area. “As the Canadian dollar stabilizes around 80 cents to the dollar, the historical average, more of the 11 million boomers in Canada will realize it’s time to buy,” he predicts….
- South American and European Buyers May Pause – To the south, Brazil and Venezuela are having serious economic problems…That weakness has a significant impact on the Florida housing market, reducing foreign demand….”The strong dollar also affects demand from Europe.”
- Land Cost Limits New Construction – Single-family and multifamily construction are rising, but the level will be well below the boom years of a decade ago. In Florida, a tight land supply greatly limits new-home development in desirable Southern, Central, and West Coast markets….
- High Demand for Distribution Space….
- Growth in The Condo Market – Demand for moderately priced condominiums is much stronger than current sales indicate…There is substantial pent-up demand, which has been curtailed by the unwillingness of many lenders to re-enter this market…Buyers are also keenly interested in townhomes as a lower-maintenance alternative to single-family detached homes. However, luxury condominium sales may slow in 2017, particularly with project that target international buyers, “The softest markets could be Miami, which has such a large exposure to Latin American buyers, and Naples, which is seeing a little softness in sales to high-end retirees….
- Decline in Investors – The state’s backlog of foreclosures and short sale properties has dropped dramatically, thanks largely to individual and institutional investors…distressed property sales now constitute only about 10% of the market, and continue to fall…
- Rail Investments – …While new development along rail lines will increase, it may not be the boom once predicted by experts…”
Sanibel & Captiva Islands Multiple Listing Service Activity November 4-11, 2016
2 new listings: Sanibel Surfside #223 2/2 $799K, Sundial East #P401 2/2 $899K (our listing, photos below, professional photos being filmed 11/16).
1 price change: Sand Pointe #122 2/2 now $724K (our listing).
3 new sale: with contingencies: Loggerhead Cay #452 2/2 listed at $549K, Sunset South #15B 2/2 listed at $999K. Without contingencies: Loggerhead Cay #574 2/2 listed at $569K.
1 closed sale: Sanibel Surfside #123 2/2 $825K (our listing).
13 new listings: 2134 Egret Cir 3/2 half-duplex $579K, 400 Rabbit Rd 4/3 $785K, 225 Daniel Dr 3/2 $849K, 660 Durion Ct 3/2 $910K, 698 Spartina Ct 3/2 $924.9K, 1314 Par View Dr 4/3 $929K, 1146 Buttonwood Ln 3/3 $975K, 1170 Buttonwood Ln $999K, 485 Lake Murex Cir 3/2 $1.069M, 800 Sand Dollar Dr 3/3.5 $1.695M, 1475 Angel Dr 3/4.5 $1.749M, 514 Kinzie Island Ct 3/4 $2.35M, 615 Lighthouse Way 3/3.5 $2.495M.
11 price changes: 810 Elinor Way 3/2 now $599K, 1426 Sand Castle Rd 3/2 now $649.9K, 1772 Serenity Ln 3/2 now $675K, 2549 Harbour Ln 3/2 $749.5K, 1295 Par View Dr 3/2 now $799K, 243 Southwinds Dr 4/2.5 now $979K, 1501 Sand Castle Rd 5/3.5 now $999K, 4428 Waters Edge Ln 3/2.5 now $1.249M, 598 Kinzie Island Ct 3/3.5 now $1.649M, 3402 West Gulf Dr 3/2 now $1.65M, 1842 Woodring Rd 3/3.5 now $2.195M.
8 new sales: with contingencies: 1722 Serenity Ln 3/3 listed at $525K, 533 Rabbit Rd 3/2 listed at $548K (our listing), 1076 Sand Castle Rd 2/2 listed at $589K, 3118 Twin Lakes Ln 3/2 listed at $599.9K, 1245 Anhinga Ln 3/2 listed at $649K, 3941 Coquina Dr 3/2 listed at $699K. Without contingencies: 743 Elinor Way 3/2 listed at $695K, 626 Kinzie Island Ct 3/2.5 listed at $1.799M.
4 closed sales: 1364 Jamaica Dr 2/2 $605K, 1133 Sand Castle Rd 3/2 $617.5K, 1121 Sabal St 3/2.5 $650K, 3850 Coquina Dr 3/3 $825K.
1 new listing: 9211 Dimmick Dr $149.9K (our listing).
No price changes.
2 new sales: with contingencies: 9426 Sage Ct listed at $269K, 690 Birdie View Pt listed at $389K.
No closed sales.
2 new listings: Tennis Villas #3125 1/1.5 $254K, Bayside Villas #5228 1/2 $335K.
No price changes.
1 new sale: with contingencies: Bayside Villas #4214 1/2 listed at $317.5K.
No closed sales.
2 new listings: 43 Oster Ct 2/2.5 $929K, 17041 Captiva Dr 2/3 $1.685M.
2 price changes: 14980 Binder Dr 4/3 now $1,377,984; 14860 Mango Ct 5/4 now $2,343,974.
No new sales.
1 closed sale: 16897 Captiva Dr 5/5.5 $2.94M.
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 general real estate activity in the community and does not imply that SanibelSusan Realty Associates is participating or participated in these transactions.)