How Does a Home Seller Price In Updates?

The 80s called and they want their hair and decor back...said no one ever. 

No seller ever wants to get feedback from a prospective buyer about their home needing updates.  But that is a common opinion expressed by potential buyers.

First of all there is one maxim about buying and selling anything...

Buyers will always look for reasons to pay less while sellers will always look for reasons to charge more.

When preparing a home for the market knowledgeable sellers (and their agents) understand this and will counsel sellers on the art of preparing a home for the market.

Here are some articles relating to getting a house prepared to sell:

• Show Your Home. Not Your Everything!
• Impress Early, Close Sooner.
• Home Seller Tip:  Vanilla with No Sprinkles, Please
• So Your Home is Not Perfect.
• Placing Your Home on The Market Without Preparing to Market
• Great Staging Will Not Overcome Deficiencies
• Selling Your Home is All About the Senses.
• Should a Seller Have a Pre-Listing Home Inspection?
• Don't Neglect These Items to Sell Your Melbourne, Florida Home

Now back to the subject of updates.... 

First of all do not confuse update with maintenance. 

Deferred maintenance has a big price tag.  If the roof needs replacement or the air conditioning does not work expect this to limit offers.  And if an offer does come expect it to be reduced to reflect the defect plus the effort and time to repair.  I have seen offers where buyers wanted a $1500 "credit" for a $250 fix.

What is the cost of updating?  If it is purely cosmetic then the hit should not be as bad.  Still, expect the hit to be substantial. 

My suggestion when updates are anticipated...

Get estimates and price them in at the time of listing.  With documentation to support the list price (comparable, estimates) a seller can proceed more confidently and get their Melbourne, Florida home sold.

Ready to sell your Melbourne, Florida home?  Call text me at 321-693-3850 for your market analysis.

Brevard County, Florida Townhome and Condo Market Summary September 2017

Presented below is a summary report of the Brevard County Townhouse and Condo Market for September 2017 as provided by the Florida Realtors®:

• Closed Sales are down -25.9% for September 2017 in which the number of units closed was 163 compared to 220 in September 2016 with a decrease in cash sales of -43.7% compared to September 2016.
• New Pending Sales are down -35.7%.
• New Listings are down -36.4%.
• Median Sales Price for Townhomes/Condos is up 17.5% to $163,000 compared to a year ago which was $138,700.
• Months Supply of Inventory did not change. It was 3.4 months in September 2016 as well as in September 2017.
• Traditional Sales decreased -24% with a median sales price of $165,250.
• Foreclosure/REO Sales decreased -60% and had a median sales price of $101,500. 
• Short Sale Closings decreased -50% with a median sales price of $60,000 in September 2017.

For information on buying a condo or townhouse in Viera, Florida, please call or text me at 321-693-3850.

Not all 55+ Communities are the Same - Consider Pine Creek in Melbourne, Florida

"What will it take to put you behind the wheel of this car?"   That is my worst nightmare.  It means I am at a car dealership. 

Why do I hate going to a car dealership?  Take a look at the movie Car Dogs and you will understand. 

What does this have to do with a house for sale in Florida?   Nothing really.

When I started to write an article about the Pine Creek subdivision Melbourne, Florida  home I have listed for sale I thought to myself "What would it take to get someone in this house?"

No, I am not hear to twist anyone's arm to buy this house.  I asked myself the question because I wanted to present the information that would make anyone looking for a Florida 55+ community home for sale want to look at this house.

When I compare the Pine Creek development to some of the other Brevard County, FL 55+ communities I see many similarities.  I also see many of the differences.

One of the similarities is the development is newer. Another is it is gated. Another is the clubhouse and community pool (albeit smaller).

One of the key differences among the Brevard County, Florida 55+ communities is the monthly association fees. While the communities in Viera run near or over $300 a month for dues, Pine Creek association fees are about $166 per month.  Another community in Viera is the Indian River Colony Club which is total maintenance, member owned with its own golf course where fees are closer to the $800 to $1,000 per month based on specific floor plan.

Another difference is the community as a whole is smaller.  Is this good or bad?  Why do some people choose to live in smaller towns while some want larger cities?  Its simply a matter of taste.

A key difference is home price. 

• In the Pine Creek development the current single family home  listings range in price from $198,000 to about $265,000.
• In the Grand Isle community in Viera current SFH listings range $242,000 to $419,900.
• In the Heritage Isle development in Viera SFH listings run from $259,900  to $429,900.

These communities are different.  

Buyer decisions are influenced by many things including price, location, neighborhood and amenities as well as monthly fees.  Another difference could be the taxes.

If you are in the market for a home in a one of the 55+ communities in Brevard County please consider Pine Creek in Melbourne. 

My job as a listing agent is to get the most prospective buyers in my seller's property as possible and get the best offer the market will bring.

So here it is... 

Call me to take a look at this wonderful single family home located in the Pine Creek 55+ community in Melbourne, Florida.

Located at 3613 Osceola Drive in the gated 55+ community of Pine Creek in Melbourne, Florida this two bedroom two bath two car garage home is offered for $198,000.   That list price is more than $30,000 lower than the nearest competitor in the subdivision!

The highly desirable Pine Creek community is just off Eber Road and only a short drive from major shopping ares as well as easy access to I-95 and US1. 

Within the community this home is close to the club house and community pool (across street about 200 ft away!) 

With association fees at $500 a quarter the lawn maintenance and exterior maintenance is included [REVIEW HOA DOCUMENTS TO VERIFY WHAT IS COVERED BY DUES].

Some of the features offered include concrete block stucco construction; open Floor plan with 1,335 sq.ft. under air; hurricane shutters all around (back porch and garage electric, others accordion type); all electric; brick paver drive way, walks and screened back porch 

 Call or text me at 321-693-3850  for information on this home or any homes in the Melbourne area.

Phillips Landing in Rockledge, Florida - Homes For Sale - Market Update October 2017

Phillips Landing subdivision in Rockledge, Florida offers a newer deed restricted community offering good value in recent construction (since early 2000s).  List prices in Phillips Landing are, in my opinion, a bit more attractive than prices for simialr style, size and age homes in the nearby Viera planned unit development.   

Typical Phillips Landing Home

Located just off I-95 in central Brevard County, Florida, Phillips Landing offers residents a community pool, playground, parks, excellent schools within walking distance like Hans Christian Andersen Elementary and Kennedy Middle School.
 
Phillips Landing is also ideal for commuters with Orlando only a short drive as well as easy travel for those working in Melbourne, at the Kennedy Space Center, beach side or Melbourne.  

Also nearby are several golf courses as well as medical facilities (in Rockledge and Viera) including multiple physician offices, rehabilitation facilities, and hospitals ( Wuesthoff Hospital Rockledge, Viera Hospital).     The beaches and cruise terminals are only about 10-12 miles away.  

What is currently for sale in Phillips Landing? 

Currently there are only two homes for sale in Phillips Landing in Rockledge.  These homes are listed for $269,000 and $305,000.  These list prices are consistent with the recent sales in Phillips Landing. 

The highest priced listing is a two story home which is less common in Phillips Landing.  Both homes have a two car garage and neither has a private pool.  There is also one other home under contract awaiting closing.

What has recently sold in Phillips Landing?

Over the past six months there have been 8 homes sold in Phillips Landing as reported in the local Space Coast MLS system.  Selling prices ranged from $265,000 to $312,000 with a median sold price of  $305,000.  

More recently (over the past three months), there have been three homes sold in Phillips Landing.  These homes included:

• 1541 Bridgeport Circle - This 2005 built 4 bedroom 2 bath 2 car garage with 2,119 sq.ft. under air home sold for $285,000 on October 6, 2017 and was on the market for only 15 days!
• 3323 Hawthorne Avenue - Selling on July 14, 2017 for $305,000 this 2013 built home featured 4 bedroom 3 bathroom and a 3 car garage.
• 3304 Hawthorne Avenue - 2,432 sq.ft. 4 bedroom 3 bath 3 car garage home built in 2013 sold on July 7, 2017 for $309,000 and was on the market for 29 days.

For information on buying a home in Rockledge, Florida (or Viera), please call or text me at 321-693-3850.

Homes Never "Fail the Inspection" - Humans Do!

I have talked with buyers who had previously worked with another real estate or no agent and  had tried to buy a home but the "house failed inspection."  On the surface "the house failed" seems like a reasonable explanation for a transaction not closing.  But, if you step back and take a look at the situation it was not a "house" failure.

The Reality: The home inspection did not fail but rather the failure lies with a human being.

So where is the human failure?   The potential issue lies with any one or more of the following "humans."

• Let us start with the seller, after all, it is their house to sell.   In most cases sellers have either failed to prepare the house for sale or failed to understand the home's real condition (and problems) will make the process more difficult.  
• The seller hired a real estate agent o guide them through the process.  The inspection failure could be the seller's real estate agent did not make the seller understand the need to prepare the house for sale.   Or it simply could have been a case where the seller's agent failed to explain adequately about the Three Ps of Selling or even recommend a pre-listing inspection.  In some circumstances where a house is being sold a"as is" with problems the listing agent could have failed to fully identify the circumstance in their marketing materials.
• The buyer's agent may have failed to understand the circumstances of the sale or actual condition of the property.  This is less likely as most buyer agents understand the type of financing being used and the general standards relating to condition.
• Finally it could be the buyers at fault.  Sometimes buyers will fall in love with a property.   Knowing love is blind can cause buyers to overlook potential issues or hope that things will work out.  It could be the low price makes the house so much more desirable.  But one of the "laws of real estate" is a house is priced low or lower than the competition for a reason.

Sellers read this cheat sheet for home sellers.  

Buyers read this cheat sheet for home buyers.

Without pointing fingers know this... a house is inanimate and has no ability to think, fix and make decision on anything during the selling process.  It does not fail...it sits.  

Here is some simple advice for buyers and sellers.

• Sellers do not like surprises - like having a buyer walk as the result of a "bad" inspection.  There will be things that show up on inspections that are minor or mostly informational.  There may be things that show up that are major problems. 
• Buyers do not like surprises.  As a seller, have an inspection done prior to your listing.  If there are issues, fix them or address them in your seller's disclosure.  An attitude of openness will make buyer prospects feel better about your property.

If you are looking to buy or sell a home in Melbourne, Florida, I want to help you.  I have been working with buyers and sellers for fifteen years.  Please give me a call (or text) at 321-693-3850 or send me an email.

What Your Mortgage Pre-Approval Really Means - Tips for Florida Home Buyers

Recently I had a prospective buyer submit an offer on one of my listings.  Everything was all negotiated and about to be signed by the seller and then...poof... the contract vanished.

Why?

The buyer was pre-approved for the agreed upon price.  But then it was a no go because of all the numbers associated with the purchase.

This incidence brings to light a couple of issues prospective home buyers need to keep in mind while searching for their new home.

1. Don't start at the top of your budget.  
2. There are other numbers (costs) that must be considered.

The problem with the offer mentioned above was that once all the monthly fees like association dues were factored in then the total monthly expenditures placed the prospective buyer out of the pre-approval.  Other numbers that could impact pre approval include things like home owner insurance costs, mandatory flood insurance, and other "incidentals." 

Rather than go into all the details I am providing links to multiple articles here on the home buying process.

• Buying a home in Florida:  Learn the Language.
• Whether buying or selling, begin with the end in mind.
• What is the difference between mortgage pre qualification and mortgage pre approval?
• Finding the "imperfect" Home.
• Buying a Home: Contract to Closing in 20 Steps!
• Keys to a Successful Closing.
• Terms Define the Real Price.
• Offering more than list price: When, Why and the Pitfalls.
• There are REAL reasons for Price Differences.
• Buying a Home in Florida: Cost of Purchase Plus More!

Your real estate agent and lender are vital to the process.  If you are ready to buy or sell a home in Melbourne or Rockledge, Florida, call or text me at 321-693-3850.   

Please let me use my fifteen year's experience helping buyers and sellers in Brevard County, Florida  to help you with your real estate needs!