Home
Prices on the Rise
The first quarter of 2012 brought mainly good news for the Upper Keys
housing market. The median sales price was up modestly from the first
quarter of 2011 and the price of the average sale rose a robust 22
percent. List prices, meanwhile, were virtually the same as 12 months
ago, which means that sellers were able to inch a bit closer to fetching
their original asking price. Another good sign is that there was a
sizeable reduction in inventory between the end of March last year
and this year.
 On
the downside, the number of home sales dropped from last year's first
quarter, while there was a slight increase in the average period of
time it took to make a sale. Homes that sold between January and March
of this year had been on the market for an average of more than nine
months. That lag was, in-part, due to short sale and bank-owned properties,
which take a long time to go through and still accounted for 30 percent
of the first quarter's sales. It also suggests that, despite the dwindling
gap between original offering prices and eventual sales prices, properties
are still being listed a bit too high and therefore must drop before
garnering the interest of savvy buyers.
Overall, trends are looking good. The National Association of Realtors
just announced that vacation and investment home sales around the United
States surged last year to their highest market share since 2005. In
addition, the economy continues its gradual improvement – all
of which makes me optimistic that our home prices will continue to
rise.
Commercial
Opportunities
With the economy improving, bargains still available, and interest
rates at a 30-year low, now could  be
the time to consider buying that business you've been dreaming of.
Lodging occupancy was up more than 6 percent in the
Keys last year and the trend has continued in early
2012. In our tourist-driven economy, that spells good
news, not just for hoteliers, but for any merchant.
Among the Upper Keys businesses on the market right
now are the Key Largo Florist, with an asking price
of $79,900, and the Blue Cow Creamery, with an asking
price of $99,900. Both can be purchased with 50 percent
down or less.
In addition to hotels, the local marina industry is
on the upswing. But prices aren't. Manatee Bay Marina
and Pirate Hat Marina, both in Key Largo, just reduced
their asking prices by 20 percent.
Small Business Association financing is available for
purchases like these at rates that are hard to turn
down. With a down payment of just 10 percent, the SBA
will provide fixed-rate, 20-year loans to qualifying
applicants. At present, the fixed rate is just 5 ½ percent.
After years in which bank financing was difficult to
obtain, it too has become available. Plus, bank foreclosure
projects can still be acquired for 50 cents or less
on the dollar
Low prices and low interest rates coupled with an improving
economy, make now an opportune time to buy.
Smoother
Short Sales
The housing market is improving, but unfortunately
some people are still upside down on their homes. If
you find yourself in the difficult position of having
to short sell your property, it's important to have
not only a knowledgeable Realtor, but also a qualified
mediator to take you through the complicated and often
time-consuming short sale process.
 The
guidelines that lenders use to determine if a property
is eligible for a short sale are constantly shifting.
When you make the move to free yourself of a burdensome
home, the first thing you'll need is the right Realtor
to accurately determine your property's fair market
value and then to aggressively list and show the home
so that you find a qualified buyer as soon as possible.
But you're also going to need an expert mediator to
make sure you complete the various forms that lenders
require as part of your listing agreement for the short
sale home.
Once you've got a buyer, the mediator will also play
a crucial role in making sure your sale goes smoothly.
A short sales is a time consuming process, taking anywhere
from 60 to 120 days to complete. So you definitely don't
want to get to the end of that road only to discover
that the terms you've agreed upon with the buyer aren't
acceptable to your lender.
The qualified mediator will make sure that your entire
sales package — including the contract, hardship
letter, full financials, and a monthly financial overview — passes
muster. In particular, the mediator will be able to
determine if your sales contract falls within the range
that your lender will regard as fair market value – no
easy task since each lender calculates the fair market
value differently.
It is vital to know whom to speak with and what the lender's protocols
are. It's also imperative that you have a Realtor who keeps you informed
throughout the process. Before you even get started with a short sale,
your agent should be able to answer the following questions, just to
name a few:
- What constitutes "hardship"?
- What are the risks to your credit rating?
- What happens if you've already been served with
a Notice of Foreclosure?
- What are your out-of-pocket costs?
At Realty World-Freewheeler we can answer these complex
questions. Plus, we have independent mediators at our
disposal.
Featured
Vacation Rental
Are you or someone you know looking for an exclusive
Keys getaway? This classic Key West-style oceanfront
home, named The Markeysa, has everything you could ask
for.
Located at mile marker 75.7 on Lower Matecumbe Key,
this home's lush landscaping augments the elevated pool
and hot tub. There's also a private beach and a saltwater
lagoon if you want a more natural outdoor experience.
The gated property also has a lovely
1 bedroom/1 bath beachfront cabana, providing additional
space amid intimate surroundings.
The Markeysa is available for weekly
rentals, and you can book with the confidence that comes
from knowing that Freewheeler Vacations was honored
this year with an “Excellent" rating by Flip Key
and Trip Advisor for its vacation rental management
services.
The exclusive award recognizes exceptional
vacation rentals based on reviews from past guests.
Call (305) 664-2075 or toll-free at (866) 664-2075 to
plan your getaway.
Quote
of the Quarter
"One of the things I learned the hard way was that it doesn't pay to get discouraged.
Keeping busy and making optimism a way of life can restore your faith in yourself."
--- Lucille Ball, American Actress and Comedienne
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