BOWER APPRAISAL INC. BRINGS YOU
GREETINGS FROM MARCO ISLAND, NAPLES AND COLLIER COUNTY FLORIDA.
It has been a while since I updated you on the Real Estate Market in the South West Florida, hoping to have some sort of long term trends to brag about. However, that is not the case.
Recently I performed an appraisal in a well maintained Gated Community that included a public Golf Course, membership optional. I was shocked by the large number of short sales and foreclosures.
The homes ranged from 1700+ square feet single story to over 3,000 square feet two story homes. It is part of a development by a large National Builder with a good blend of pricing, quality of construction and wide variety of views from lakes to ponds, long water and golf course. (The developer is still building in the community which adds even more pressure on owners trying to sell).
This is only one example in one of many similar types of communities in the Naples, Collier County area.
During my investigation of past sales through the local MLS and County Tax Records, I found 10 closed sales. All but 1 (ONE) of those sales was either a Short Sale or a Bank Foreclosure. Instead of finding only 2 or 3 forced sales in the past, the numbers have jumped making it all but impossible not to use these sales to represent current market value.
The local County Property Appraisers office is also using Foreclosures and Short Sales while figuring out values that property taxes are based on.
Going back a year, even less in some neighborhoods, many properties purchased in 2004 or prior with "Normal Mortgages" still had built up equity. This is no longer true. The once "Nest Egg" for many people including Baby Boomers, is rapidly disappearing along with their retirement plans and money.
It is still a buyers market and $$$ is one of the first things buyers are looking for, followed by condition and value. With such a large inventory, if buyers can't get all 3 (three) 2 (two) is normally not a problem.
Now the Government and Major Banks have put a hold on Foreclosures and Short Sales. This is due their lack of verifying and assuring that the proper documents were there before throwing people out of their homes. This will most certainly dash any chance of us seeing a rebound in the market until at least the end of next year and quite possible into 2012.
We now have hundreds if not thousands of families forced out of their homes who perhaps should never have been foreclosed on in the first place.
While it is not likely all these properties will come back on the market, the delay will only extend the problem of an over supply of inventory and more downward pressure on prices. Be ready for the class action law suits due to this fiasco and for buyers of these properties to be even more cautious
We can not expect to see the bottom until the Banks do their part regarding home mortgages that the recovery plan called for -- helping home owners refinance at lower interest rates, allowing people to stay in their homes. Due to Banking policies this is not being done. Why would a Bank trade in a 6% mortgage for one at 3.5% to 4% over 30 years?
Many of us know of family or friends who have tried to refinance and can not even get the bank to return their phone calls. We do not need more inventory in an already vastly over supplied market place.
With all of the bail out money we have "Loaned" the Banks for mortgage relief, we never hear a single number of how many home owners actually received the relief the Bills the Government passed where suppose to have helped.
The last down market in 1990 took almost 10 years to regain the lost equity levels people had in their homes and investments. This housing crisis is a whole new world that most Americans have never seen or felt. Drops of 40% to 60% in value in just over 3/12 to 4 years are closer to the norm than the exception.
LAST, BUT I'M SURE THERE WILL BE MORE. DID YOU KNOW THAT THE NEW HEALTH CARE BILL HAS A CLAUSE IN IT THAT STARTING IN 2012 OR 2013 THAT YOU WILL BE REQUIRED TO PAY 3.5%+ ON THE SALE OF YOUR HOME OR ANY PROPERTY TO HELP FUND THE REQUIREMENTS OF THIS BILL? THAT DOESN'T SOUND LIKE A GREAT WAY TO STRENGHTEN A RECOVERY OF THE HOUSING MARKET. YES I DID SAY 3.5%+ ON THE SALE OF YOUR HOME, IN A DOWN MARKET WHERE IS THAT MONEY GOING TO COME FROM?
NOW THE BEST NEWS -- IF YOU HAVE EVER THOUGHT ABOUT BUYING A HOME AND CAN REALLY AFFORD IT WITH INTEREST RATES AS LOW AS THEY WILL ALMOST SURELY EVER BE--- IT IS ALSO MORE IMPORTATNT THAN EVER TO HAVE AN EXPERIENCED APPRAISER WITH LONG TERM LOCAL KNOWLEDGE OF THE MARKET YOU PLAN TO INVERST IN.
NOW IS THE TIME TO BUY THE SAME IS TRUE FOR A SECOND HOME OR CONDO. IN THESE FINACIAL TIMES NOW IS THE TIME TO MAKE A MOVE. THERE IS A LARGE INVENTORY OF VERY FINE HOMES IN VERY BEAUTIFUL PLACES, SUCH AS SOUTH WEST FLORIDA. NOW IS NOT THE TIME TO HAGGLE OVER A FEW THOUSAND DOLLARS WHEN YOUR DREAM HOUSE IS SITTING OUT THERE JUST WAITING. THE BEST PROPERTIES ARE ALWAYS THE FIRST TO GO -- SO NOW IS THE TIME TO GET SERIOUS AND FIND THAT DREAM HOME WITH 4%+ - 30 YEAR MONEY.
HOWEVER BEFORE YOU BUY OR SELL A HOME IN TODAYS MARKET CONDITION IT IS WELL WORTH A $400.00 + - INVESTMENT TO HAVE THE PROPERTY APPRAISED BY SOMEONE FROM THE MARKET AREA -- DON'T LET SOMEONE TALK YOU INTO TO SAVING $50 TO$75.00 AND HAVE AN APPRAISER FROM OUT OF THE AREA WHO DOES NOT HAVE A LONG TRACK RECORD WITH THE HISTORIC AND CURRENT UNDERSTANDING OF WHAT IS GOING ON IN THE AREA YOU ARE GOING TO PURCHASE OR SELL, AS WELL AS MEMBERSHIP IN THE LOCAL BOARD OF REALTORS AND MLS SYSTEMS.
BOWER APPRAISAL INC. HAS BEEN INVOLVED AS BOTH A REAL ESTATE BROKER OR APPRAISER IN THE MARCO ISLAND, NAPLES AND COLLIER COUNTY AREA SINCE 1984 AND WE HAVE THE KNOWLEDGE TO HELP YOU WITH AN HONEST AND ACCURATE APPRAISAL.
ALL INQUIRIES ARE WELCOME.
ETHICS, HONESTY AND KNOWLEDGE ARE THE BACK BONE OF OUR COMPANY.
THANK YOU.
SINCERELY,
BOWER APPRISAL INC.