It’s almost the end of another quiet week on Sanibel & Captiva Islands. The SanibelSusan Team and I are getting our Friday work done early today, so we can head over to the Community House to help the Meals of Hope volunteers set up for our Association of Realtors® afternoon food packing event.
At last count, the Sanibel & Captiva Islands Association of Realtors® has raised $6,000+ (enough for food/supplies to pack 28,000 meals) and will have at least 80 volunteers ready to pack from 3 to 5 p.m.
It will be fun to see how many we really can get done that quickly. Off to Harry Chapin Food Bank the meals go after that, where they are available to Southwest Florida food banks through the Feeding America Food Bank Network.
Sanibel & Captiva Islands Multiple Listing Service
No sales were announced at yesterday’s Association of Realtors® bi-weekly Caravan Meeting and only two new listings (one home on Sanibel and one on Captiva) were open during the Caravan that followed.
Our listings had some action this week though, including another condo closing and one under contract. The action posted since last Friday in the Sanibel & Captiva Multiple Listing Service follows a couple of news items below.
Online Home Value Estimates Are Not Appraisals
Wonder why your Realtor® tells you that a Zestimate of the value of your island property may be incorrect? First a little general info from NAR’s Economists’ Outlook blog on June 29, 2017 and reposted on “Daily Real Estate News” June 30:
“Homeowners who seek an estimate of their home’s value online often find that it doesn’t match the actual value… The Economists’ Outlook blog, which is run by the National Association of REALTORS®, recently offered tips from data scientist Karen Belita. She notes that Automated Valuation Models, or AVMs, are based on computer algorithms and calculations that “take different sets of property data and look for patterns and relationships between property value and the input data.” This allows web visitors to find a home value estimate easily and quickly by just searching an address.
“But these estimates should not be confused or used as a substitute for appraisals, Belita notes. Appraisals use comparative market analyses and in-depth expertise of real estate professionals to draw a conclusion on the value of the property. Another caveat with AVMs is that they fail to take into account the unique qualities of a home, neighborhood, or local market.
Zillow’s “Zestimate,” for example, is computed using public and user-submitted data with “different accuracy levels depending on the data of the property and location,” Belita writes. Another source is the REALTORS Property Resource®, which provides two home value estimates: one from their own AVM model and another from REALTORS® Valuation Model. RVM pulls from the same data as the AVM as well as MLS data, providing estimates of confidence scores based on its accuracy level.
“As technologies advance and more data becomes available, the number of sites that provide home value estimates may grow,” Belita writes. “With the knowledge of where to find home value estimates online, it is important to note that these home value estimates are not interchangeable with formal appraisals, comparative market analyses, and they cannot be used as a basis for a loan. Most of these sites, if not all, reiterate the importance of consulting the expertise of real estate professionals to receive an in-depth and in-person analysis of the property and the local market.””
On island, it goes without saying that most property cannot be valued using calculations that might apply in large area of residential tract housing where location and construction are basically the same. Here, the islands are so unique that the same home in different gulf and inland locations, sometimes less than a mile apart, also can differ in value not just a few dollars, but millions of dollars.
Many Multiple Listing Services sell their data as a revenue source. The Sanibel & Captiva Islands Multiple Listing Service does not. It neither gives nor sells its MLS data to Zillow or 3rd party sites, nor are the listings in the islands’ MLS sent to outside syndicated sites looking to make money.
Instead, the island MLS data is provided only to Realtors® performing under the umbrella of the Realtor® Code of Ethics. That includes sites: Realtor.com, our Association site SanibelRealtors.com, and individual member and company sites where our Association offers cooperation through Florida Realtors® IDX (Internet Data Exchange) like my site SanibelSusan.com.
So why, you may ask are your listing photos and data on Zillow. It’s because some island Realtors® and their clients want their properties to get broad exposure.
I do this by belonging to two MLS’s. I am a primary member of the Sanibel & Captiva Islands Association of Realtors® which requires that we post all of my listing on their MLS. I also hold a secondary membership at the Royal Palm Coast Realtor® Association which services other areas in Southwest Florida. This secondary membership allows me to also post my listings on the Florida Gulf Coast MLS. The Florida Gulf Coast MLS syndicates their listings to many 3rd part real estate search sites, including Zillow.
Does that mean that all Sanibel/Captiva listings are on Zillow? No, but you will find SanibelSusan listings there.
So, when various websites offer to tell you the value of your property, take it with a grain of salt. I have never and I mean never, seen an island Zillow that was not inflated.
A real estimate of value or what a property likely is worth at a point in time is best done by a licensed real estate appraiser or by a market analysis prepared by a licensed Realtor®.
If you want to know the real value of your property, it should be based on recent actual sale prices of ALL comparable properties (not just those in a particular database).
It should not be based on asking prices of what is for sale, not what sold a year ago, and not what a property like yours may be worth in another location.
The person that can perform this evaluation is someone who knows the value of real estate here and not just some of the prices for some sales, but all of them.
Mortgage Rates Fall Again – 2nd Straight Week
FloridaRealtors® posted the following Associated Press article yesterday, July 27, 2017:
“Long-term U.S. mortgage rates fell this week for the second week in a row, despite the Federal Reserve’s efforts to lift borrowing costs.
“Mortgage buyer Freddie Mac says the rate on 30-year, fixed-rate mortgages slid to 3.92% from 3.96% the previous week. While historically low, that is still above last year’s average of 3.65%
“The rate on 15-year, fixed-rate home loans, popular with homeowners who are refinancing their mortgages, eased to 3.2% from 3.23% last week.
“Mortgage rates haven’t increased much even though the Federal Reserve has boosted its benchmark rate four times in the past 18 months. That’s because mortgage rates follow the yield on the 10-year Treasury note, which is influenced by many factors. Greater demand by overseas investors can lower the yield.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount.”
Sanibel & Captiva Islands Multiple Listing Service Activity July 21-28, 2017
1 new listing: Gulfside Place #222 2/2 $1.245M.
No price changes.
1 new sale: Gulf Beach #102 2/2 listed at $799K (our listing).
4 closed sales: Captains Walk #A1 2/1 $325K, Lighthouse Point #129 3/2 $550K (our listing), Sanibel Surfside #223 2/2 $730K, By-The-Sea #C302 2/2 $1.175M.
1 new listing: 1938 Roseate Ln 3/2 $549K.
4 price changes: 1940 Periwinkle Way 3/2 half-duplex now $494K, 1040 Sand Castle Rd 3/2 now $589K, 545 Piedmont Rd 3/2 now $595.9K, 9113 Mockingbird Dr 3/3.5 now $599,999.
2 new sales: 519 Lagoon Dr 4/2 listed at $849K, 1137 Golden Olive Ct 5/3.5 listed at $1.7945M.
4 closed sales: 1036 S Yachtsman Dr 3/3 $595K, 1809 Bowmans Beach Rd 3/2 $750K, 1032 Lindgren Blvd 3/2.5 $799.9K, 3402 West Gulf Dr 3/2 $1.3M.
1 new listing: 461 Lake Murex Cir $349K.
1 price change: 1299 Par View Dr now $241.5K.
1 new sale: 5148 Sea Bell Rd listed at $199K.
No closed sales.
No new listings, price changes, or new sales.
1 closed sale: Tennis Villas #3127 1/1 $237,250.
1 new listing: 11531 Paige Ct 3/3.5 $3.59M.
No price changes.
1 new sale: 43 Oster Ct 2/2.5 listed at $819K.
No 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 general real estate activity in the community and does not imply that SanibelSusan Realty Associates is participating or participated in these transactions.)