Home Buying in Sarasota>Question Details

Richard, Home Buyer in 20759

I am seriously looking at picking up property in the bradenton sarasota area,... The values right now are

Asked by Richard, 20759 Wed Apr 30, 2008

making it very tempting to purchase but what is scaring me off are the monthly fees associated with some of these properties. 175k condo with 350 monthly fees plus taxes seems awful high. Have any of these lifestyle developments looked at lowering monthly assoc fees at all.. or are any offering HOA for 2 years as incentives? Otherwise am I better looking at single family short sale homes in the Parrish area in non cdd devleopments?? One last question.. on short sales.. what has been the general trend on offers? 10 15 20% less then short sale listing?

any info would be appreciated......

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The previous posters have provided good information, so I'll add just a little bit more for you to consider. The likelihood of condo or HOA fees declining is very slim, and high insurance rates are just one part of the problem. Many condo and homeowners associations are having difficulty collecting dues from deadbeat owners and also from banks that have foreclosed on properties in their communities. Thus, the costs of maintaining the communities are being paid by fewer owners and this means fees must go up. In some cases, HOA's have taken on the cost of yard maintenance for abandoned properties, and that is also contributing to increasing fees.

You asked about developments offering 2 years of HOA fees as an incentive. Obviously, you're talking about new communities. It sounds nice to say that you got 2 years of HOA fees as part of your deal, but if you work that out on your purchase, you should be absolutely certain that the fees are paid to the association and not held by the developer (who may control the association until it is turned over to the residents). Some developers have gone bankrupt recently.

Why are you considering short sale homes in Parrish? Do you want to live there, or is this for investment? I wouldn't recommend it for either purpose. Keep in mind that short sales are often not really very good deals. A short sale just means that the property is sold for less than is needed to pay off the outstanding mortgage balance; it doesn't mean that it is sold for less than it is worth.

People who are looking at newer construction in places like Parrish and North Port need to understand that it may be a VERY long time before the inventory of available homes is cleared out, allowing prices to rise.

If I were you, I would work closely with a Realtor who will help you to identify properties in neighborhoods that are already beginning to show signs of price stability. Those areas should be the ones that will be first to show price appreciation as the market turns around. It's possible that some of these areas might be relatively new, but it's also likely that some of the best investments are in older, well-located neighborhoods that are close to town and to the beaches.

Charles Offer
Coldwell Banker Residential Real Estate, Inc.
423 St. Armands Circle
Sarasota, FL 34236
(941) 321-9664
charlesoffer@comcast.net
http://www.CharlesOffer.com
Web Reference: http://www.CharlesOffer.com
0 votes Thank Flag Link Wed Apr 30, 2008
Hi Richard

HOA fees sound like a nuisance but in fact there are quite instrumental in making sure that the value of the properties in the area do not plummet. A well kept community will always attract interest among buyers whereas one that isn't tidy can be a hard sell. You should always think resale when you purchase something.

When you look at condo fees, you have to start looking at what they cover. Usually, they will cover repairs and maintenance, security, reserves, insuring the structure of the property, pest control, common grounds and common facilities. If you have a single home, you will have to maintain your place and repair it, you should also put aside money for future major repair, i.e. roof, exterior painting,... (that's what they call reserves), you will have to insure your whole house whereas you only insure the contents in a condo, you'll have to mow your lawn, take care of your pool, and pay for termite inspection and all these costs add up and you'll find that they very often are in the vicinity of what you would have to pay in condo fees.

As far as short sales are concerned, I would lokk at them unless you have plenty of time and don't have to move into the property at a set time. You should also work with someone who is well versed in that area and knows how to deal with banks.

There is no doubt that non CDD areas will be cheaper to live in but remember that you always get what you pay for.

Hoping this help.

Michel

P.S. Feel free to get in touch with me if you need help with your real estate needs
941-806-7063
2 votes Thank Flag Link Tue May 6, 2008
Richard
you are correct prices are great, interest rates all time low. They are alot of deals out there and I work the Bradenton, Sarasota area so let me know if you need assistance with helping you find your home.
David Leventhal
0 votes Thank Flag Link Fri Jan 16, 2009
If you have not purchase a property we are seeing more short sales and foreclosures available. On a short sale offer it is your right to make any bid you would like. The recommendation is make an offer that makes sense from sold comps or a little lower. It is taking 90 to 160 days to get the transaction closed. If you are working with a knowledgable agent the offer will be counter by the seller and then submitted to the bank. The listing agent has to prove to the bank that the pricing is supported by sold comparables.
Web Reference: http://www.Janashomes.com
0 votes Thank Flag Link Thu Jan 15, 2009
Hello there
I understand your concern with monthly fees. please remember though what most do include. Like your insurance on the home, cable, water, trash, pool and spa, etc... I can tell you I personal own a home and a condo .If you take my monthly expenses on my home ie cable/internet phone 100.00 lawn moving 100.00/month water 30-40/month trash 35/month pest control 5.00/month and then insurance inside and out 150-500month depending on where you are so when you add all these up 350.00/month is not that unreasonable. most even cover your roof so if you owned a home and had to put a new roof on that would cost 15,000-30,000 alone. If you look at a single family home then you are going to pay roughly the same obviously your home value will deternime your insurance cost. you may want to conder a situation though where you look at a newer home or condo for the never one will have lower fee howeve you pay for your own water/trash/pest control, lawn etc.... really is 6 in 1 hand 1/2 dozen in the other. Another issue is unlike condos up north in florida your lawn grows and grows yearround unlike up north where you take care of the lawn pool etc.. for 6-7 months then snow removal here the pool, spa, etc.. need taking care of weekly 52 times of year.
hope this helps. not trying to discourage you but monthly fees are what they are and if you look at places just for the low fees guarrantee they do not cover much and your out of pocket expenses willl be higher for sure.
If you wat any more help please let me know
David Leventhal
coldwell Banker
http://www.floridahomes.cc
0 votes Thank Flag Link Wed Dec 10, 2008
Hi Richard,
I would totally agree with Ron and Cathy Pepka, the condo market is taking a real beating right now and will for the foreseeable future. Here's my feelings with regard to the monthly fees, it is what it is!! Now, in saying that, there are some condo communities where they have tremendous amenities but are only in the mid to low $200's and that makes it doable especially when most of the fees out there include basic cable and water. It will, just as the Pepka's stated, take a much longer period of time to see any real return on your investment whether being a personal residence, second home or investment, the ownership method will not change the value just the desirability. Single family homes are currently a great deal, what we have seen in our office is that a lot of the experienced real estate agents are listing the home based off of a couple of things...recent sales as comps, a previous short sale experience or actually dialogue with a "knowledgable" lender who is wanting to sell the home rather than gather inventory. When you start with the right price to begin with, the process is much smoother and actually quite fast, at least that has been our experience in our office. We are probably averaging 15 offers a month on the listings we have and each one that has been priced with precision sells, the ones where the bank/lender really has no clue and chooses not to communicate with the seller and listing agent tend to send. We, as real estate agents, are the messenger, we cannot force these inexperienced lenders to do their job to get the homes priced appropriately but we can be strong in our arguments when we do make the offers and usually win them with data... For you, Parrish would be my pick but don't expect to find a 50 cent on the dollar exchange, too much has already been weeded out at this point, I'd be prepared to look at recent sales, compare the amenities of those properties to the homes you like and make an offer accordingly if you are a serious buyer. If you have any additional questions, please don't hesitate to contact anyone in our office for assistance. We are a learning based company that stays on top of the curve of what the market is bearing. I hope this information moves you a direction that best services your needs.
Lisa M. Blakeley, Broker/Owner
Blakeley & Associates Realty
11515 Palmbrush Trail
Lakewood Ranch, FL 34211
941.567.3100 office
9441.567.3111 direct
0 votes Thank Flag Link Thu Nov 6, 2008
Hi Richard - many people have answered, and many people have given you good advice. The one thing I can assure you is this - for $175K, we can get you a nice condo OR single family home. As an exclusive buyer agent, I see more property than most, every day. And off the top of my head I can think of several great neighborhoods and even great homes.

The condo fees, as some have suggested, cover the types of things you will pay for yourself in a home - insurance, lawn care, pest control, etc. So although they may seem daunting, often they work out to be less out of pocket and alleviate alot of work for you.

As you look at properties, please make sure you check out their rental policies. They vary greatly from property to property and can seriously affect your ability to get income should you decide to do so.

I wish you the very best of luck Sarasota is the best place on earth :-)

Sarasota's Exclusive Buyer Agents - True Real Estate.
0 votes Thank Flag Link Thu Nov 6, 2008
In order to answer these questions I need to ask you one. What is the purpose of your purchase? Will this be a 2nd home, investment or retirement home?.

Speaking from strictly an investment standpoint, between the 2 Counties (Sarasota/Manatee) there is an average of over a 40 month supply of condo’s on the market and Single Family Homes have been running about a 26 month supply on average. Based on the basic rules of supply and demand I feel that the condo market will take a much larger hit then single family homes. In addition when you buy a condo you limit your potential buyers for resale and are at the mercy of seasonal changes.

As far as HOA fees dropping, I think we have a better chance of seeing Elvis then that happening. The big boost in fees is in direct relation to the increases in homeowners insurance for the condo complex’s. If you are on the water the fees will be much higher than other communities. Yes there are all kinds of deals to sell new units in the area please call us directly so we can inform you of them. You have to be careful of that smoke and mirror trick, sometimes resale’s offer a much better value than new construction because of higher motivation.

On your short sale question, banks have been known to except as little as 70% of appraised value. The norm is much closer to 80% to 90% though.

Please call or email us directly so we can answer your questions in greater detail.

Thanks,

Ron Pepka
Broker Owner
Keller Williams Realty of Greater Manatee
(941)708-3555 (office)
(941)708-3146 (after hours)
(941)708-3455 (Fax)
Website: http://www.teampepka.com
Email: mailto:ron@teampepka.com - Wed Apr 30 2008, 08:12
Web Reference: http://www.teampepka.com
0 votes Thank Flag Link Wed Nov 5, 2008
Hello,

In order to answer these questions I need to ask you one. What is the purpose of your purchase? Will this be a 2nd home, investment or retirement home?.

Speaking from strictly an investment standpoint, between the 2 Counties (Sarasota/Manatee) there is an average of over a 40 month supply of condo’s on the market and Single Family Homes have been running about a 26 month supply on average. Based on the basic rules of supply and demand I feel that the condo market will take a much larger hit then single family homes. In addition when you buy a condo you limit your potential buyers for resale and are at the mercy of seasonal changes.

As far as HOA fees dropping, I think we have a better chance of seeing Elvis then that happening. The big boost in fees is in direct relation to the increases in homeowners insurance for the condo complex’s. If you are on the water the fees will be much higher than other communities. Yes there are all kinds of deals to sell new units in the area please call us directly so we can inform you of them. You have to be careful of that smoke and mirror trick, sometimes resale’s offer a much better value than new construction because of higher motivation.

On your short sale question, banks have been known to except as little as 70% of appraised value. The norm is much closer to 80% to 90% though.

Please call or email us directly so we can answer your questions in greater detail.

Thanks,

Ron Pepka
Broker Owner
Keller Williams Realty of Greater Manatee
(941)708-3555 (office)
(941)708-3146 (after hours)
(941)708-3455 (Fax)
Website: http://www.teampepka.com
Email: mailto:ron@teampepka.com - Wed Apr 30 2008, 08:12
Web Reference: http://www.teampepka.com
0 votes Thank Flag Link Tue Nov 4, 2008
Hi Richard, There are several options for you to choose from when looking to purchase a home. What the HOA fees cover are directly related to what the community standards represent and how well they maintain them. Often times in addtion to HOA fee, there could be restrictions relating to rentals. Not necessarily important, except if you want to purchae a home now for later use and rent it out in between.
Short sales and foreclosure properties are numberous right now. The down side to either of these transactions is the length of time it could take to close a deal. Often it is more than 60 days. Be sure you are working with knowledgeable Realtors and one who is looking out for your best interest. As far as what percentage less than the list price depends on the lender. In some cases they let you know what they will accept, and in other cases, the lender holds that information close to his chest, and it could become a bidding war. Again, your agent is your best asset.
0 votes Thank Flag Link Wed Jun 11, 2008
Hi Richard,

Your question touches upon a number of excellent topics which we would like to address personally. Please feel free to contact us by telephone. We look forward to hearing from you and sharing our perspective.

The "Ecklelr TEam"
Century 21 Almar and Associates
Venice, Fl 34285
ecklerteam@comcast.net
941-408-5363
0 votes Thank Flag Link Sun May 18, 2008
Dear Richard,

My husband and I are selling a home on Terra Ceia Island on the Gulf Coast. It is located south of St. Petersburg and in fact, as you go south over the Skyway Bridge, at the top, look to your right and you will see a body of land...that is Terra Ceia Island. Twenty minutes from St. Pete and thirty from Tampa and Sarasota. Our home is a two story Key West style, two bedroom, two bathroom with a four-car garage under the main living area with ten foot ceilings. It is on a canal lot surrounded by 298' of water and is only three houses from the open bay. No bridges to contend with. Terra Ceia has a definite casual lifestyle, with neighbors riding golf carts, bicycles, jogging or roller blading. The name Terra Ceia translates to "Land Heavenly" and it truly is! Our asking price is $399,000 with homes around us selling for million plus. Please look at our site on http://www.zillow.com, key in 34250 zip code and look for our address 1115 Bayshore Drive. If you have any questions, contact our email address. Good luck in your search for your Florida home. Kathy Riley, ekriley@mounet.com
Web Reference: http://www.zillow.com
0 votes Thank Flag Link Wed May 14, 2008
Hi Richard,
Let me comment on your "Short Sale" portion of the question. Many people are being caught up in the "Hype" of foreclosures and short sales. The concensus is that the best deals are found within these two domains. Yes, there are opportunities that can transulate into saving but some of he best buys are coming from another avenue.

These opportunities are normal real estate sales that involve "truly motivated" sellers that purchased their property before the rapid appreciation period of 2003. Our best advice is not to put all of your effort into short sales and foreclosures because you might be skipping over the "golden egg."

There are plenty of informed agents that have the ability to identify special opportunities for sincere buyers.

Hope this is helpful.
Best regards,
The "Eckler Team"
Century 21 Almar and Associates
Venice, Fl 34285
ecklerteam@comcast.net
941-408-5363
0 votes Thank Flag Link Mon May 5, 2008
I have a great home in Sarasota, completely redone, new roof, and it backs up to a lake. It has an oversized garage, and the community is mixed. It's about 15 minutes away from the beautiful Sarasota beaches, a 2 minute ride to the highway, and a nice power walk for shopping. Also, you are about 15-20 minutes away from Siesta Key Village. Let me know if you are interested. If you are, you can contact me directly at mwlh319@aol.com.
0 votes Thank Flag Link Sun May 4, 2008
Well I appreciate everyones response.. I will try to clear this up a little more and what I am looking for... The single family/condo/townhouse is to be used as a second home or just to leave empty until I retire. ( 10 - 15 years from now).. I have not decided if i want to rent it (but if I do it is for long term only) I want to be in a mixed development in terms of housing options and other demographics.. Even though i will be a senior citizen when i move there I dont want to live in a 55+ community...

I have been looking in the sarasota/bradenton area as I know that area well.. I am open to other options except Northport ( which I heard was either newely wed or nearly dead..sorry not my words but from a "local")

I am assuming that foreclosures will present my best opportunity to purchase something of even more substance... My target price is 175K give or take on either side...Like I said my options are open.. Even an older home hat will eventually need updating still works as I know every 10 years its time to redo...

Anyhow I am not sure if i cleared any idea yet but i am seriously looking and will be in the area on may 16 - 18 with my prequal letter !

thanks again for the answers
0 votes Thank Flag Link Sun May 4, 2008
Hi Richard,
You've had a lot of responses to your questions and you've been given a lot to think about. Here's my feeling. You need to give us more information as to your purchase, is it for you full time, part time, to be a rental either year round or seasonally...all of this info would direct us in the ability to wisely answer your question(s). There are pros and cons to condos for your exact reason...fees, but short sales have also been oversold, they are difficult unless you are dealing with a listing agent that has a good understanding of their job and unfortunately because short sales are a relatively new concept, most agents don't know how to deal with them. If you could fill in some blanks, I'd be happy to direct you to one of our agents and you can rest assured they are up to speed on the market conditions and how to handle the adverse situations out there. Good Luck!
0 votes Thank Flag Link Sun May 4, 2008
I'm not the best to answer your Parrish question, but I can encourage you not to deal with short sales. The brain damage involved is probably not worth the savings. On the other hand there are good values in homes that are not loaned up and where people actually pay the debt service and have ample equity. In those cases the listed prices can be reduced by up to 20% and then sell another 15%-20% lower in an orderly manor with people who take pride in their homes and keep then up. What's wrong with that?
0 votes Thank Flag Link Thu May 1, 2008
In order to answer these questions I need to ask you one. What is the purpose of your purchase? Will this be a 2nd home, investment or retirement home?.

Speaking from strictly an investment standpoint, between the 2 Counties (Sarasota/Manatee) there is an average of over a 40 month supply of condo’s on the market and Single Family Homes have been running about a 26 month supply on average. Based on the basic rules of supply and demand I feel that the condo market will take a much larger hit then single family homes. In addition when you buy a condo you limit your potential buyers for resale and are at the mercy of seasonal changes.

As far as HOA fees dropping, I think we have a better chance of seeing Elvis then that happening. The big boost in fees is in direct relation to the increases in homeowners insurance for the condo complex’s. If you are on the water the fees will be much higher than other communities. Yes there are all kinds of deals to sell new units in the area please call us directly so we can inform you of them. You have to be careful of that smoke and mirror trick, sometimes resale’s offer a much better value than new construction because of higher motivation.

On your short sale question, banks have been known to except as little as 70% of appraised value. The norm is much closer to 80% to 90% though.

Please call or email us directly so we can answer your questions in greater detail.

Thanks,

Ron Pepka
Broker Owner
Keller Williams Realty of Greater Manatee
(941)708-3555 (office)
(941)708-3146 (after hours)
(941)708-3455 (Fax)
Website: http://www.teampepka.com
Email: mailto:ron@teampepka.com
0 votes Thank Flag Link Wed Apr 30, 2008
Hi Richard,

I wouldn't waste your time on most short sales. Here's how they work. The agent doesn't know what the bank is willing to take on the home and the bank won't tell the agent this until they get an offer in to look at. So, generally the agent puts the home way under what the bank would even consider to get an offer into the bank. The bank usually comes back WAY over what the list price is (after a several month long wait). The buyer usually walks due to the length of time they have to wait or if they stick around to find out what the bank says they usually walk due to the price the bank comes back with. They usually won't budge much off the price they counter with.

Now on the the foreclosure process. Whatever the list price is is usually what the bank will take (often times much less, unless there is a bidding war). The bank usually answers back in 48 hours to two weeks. I would stick with foreclosures as opposed to short sales, IMO.

And yes 10-20% would not be unreasonable to offer on a foreclosed listing.

What developments in Parrish did you have in mind?

Shannon Moore, Realtor®, 941-276-8142
Roxanne Moore, Realtor®, 941-626-3926
Re/Max Anchor Realty
twomoores19@comcast.net
http://www.TropicalFloridaProperty.com
http://www.TwoMoores.com
0 votes Thank Flag Link Wed Apr 30, 2008
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