Sarasota Real Estate News

Tomorrow, I'll be doing an Open House from 1-4 p.m., on Siesta Key at 464 Island Circle, Sarasota, FL 34242.  This 2 bedroom, 2 bath home is 1,230 square feet and is listed for $699,000; an excellent monthly rental, this canal cottage has a private boat dock. It's a short walk to Siesta's public beach and Siesta Village with great restaurants and shopping.  Sarasota Beach subdivision has 519 single family homes, and according to the neighborhood statistics, most of the residents are age 65-69, with an average income of $100-$125k per year.  

The real estate market for this area is excellent, and more homes sell in the spring than the rest of the year.  Today there are 12 single family homes on the market from $639,000 to $1,750,000, and 14 have sold the past 12 months.  Average list price for the homes on the market today is $441 per square foot but the average sold price was $380 per sq ft, so that may indicate that the Sellers may not be motivated to sell.  They are in no hurry, living across the street from the beach or maybe the Sellers are not realistic in what they think their home is worth.  That happens!

Most of the homes have private pools, and half of them were built after 2000, which means that they must meet FEMA guidelines since they are in a flood zone.  The older homes (built in the 1950's/priced from $500-900K) can take 10 months or longer to sell, but the newer homes (priced from $900k to $1 million) sell in just 2-3 months in the Sarasota Beach subdivision.  A few years ago, we had mostly cash buyers, but that has changed and more than 2/3 of the homes sold the past year were financed.  

Happy to answer any questions you may have about Sarasota real estate.  Go to my website: www.PalmerRanchLindaHolley.com and search for 464 Island Circle by entering A4150739 on my home page.

Most sincerely yours,

Linda Holley

Good morning!

Today I want to talk about buying beach properties and Seller's Disclosures.

Real Estate Investors use "Cap Rate" analysis which is a percentage of the rental income divided by the purchase price.  Use that percentage to compare properties and optimize your investment.  

Please visit me at my Open House today on Siesta Key at the gulf-side Excelsior Beach to Bay, 6266 Midnight Pass Road #404, Sarasota, from 1-4 p.m..  This 2 BR  2BA condo is 1263 sq ft and listed at $799,000.  Concrete construction, Excelsior is one of the newer communities on Siesta Beach, built in 1980.  It is pet friendly, and has a two-week minimum rental policy.  This condo was purchased in 2002 for $480,000.  Excelsior Beach to Bay has private beach access, washers and dryers, fishing pier, fitness center, and the fees are just over $600 per month, which is normal for Siesta, and includes grounds maintenance, insurance for the building (even flood), and amenities.  Unit 404 is top floor, which has the best views.

Where to look for Siesta rentals properties:  

Crescent Arms 
Crescent Royale
Crystal Sands
El  Presidente
Excelsior Beach to Bay
Harbor Towers
House of the Sun
Jamaica Royale
Our House at the Beach
Palm Bay Club
Sarasota Surf and Racquet
Seashell
Siesta Dunes
Sunset Royale
Tivoli by the Sea

According to MLS, here's the actual annual rental income on some of these properties*:

Aloha Kai $68,000
El Presidente $50,000
Sea Shell $42,000
Horizons West $40,000
Crescent Royale $25,000-$50,000* 
Siesta Beach House $35,000

* Most management companies are happy to provide rental history to Realtors upon request; however, it gets a little "dicey" if owners self-rent and the management company may not be involved - but ALWAYS get as much history as the Seller/Listing Agent will provide.  You may need to put a provision in the contract for the Seller to provide the actual rental history to match MLS for the past three years.

To Disclose or not to Disclose?

In the August 2016 Sarasota/Manatee Realtor magazine, there is an article on disclosure.  Sellers are not required to fill out a Sellers Disclosure Form, however, they (and the Realtors) are required to disclose anything that will affect the value of the property.  If a defect has been fixed, Seller is not required to disclose - even Chinese drywall does not need to be disclosed if the problem has been remedied.  However, the better answer is to disclose what was done and provide the contractor's receipts to the Buyer.  The As-Is Contract is not a waiver for the disclosure requirement.  The purpose of the As-Is Contract is to reflect an agreement between the Buyer and Seller that the Seller is not obligated to repair any unknown defects or property condition discovered during the Buyer's inspection.  Any preexisting conditions the Seller knew about is still subject to the mandatory disclosure.

If Realtors know about issues related to the property and they don't disclose to the Buyer, they can be sued.   So for Sellers and Realtors, the three most important words in real estate are "disclose, disclose, disclose."

I have friends who rent a home from a local investor and he did not spend the money for the necessary inspections before he bought one home.  He charges $1,200-$1,300 monthly rent for properties that are about 40 years old, and the one I know about has plumbing and roof issues that he refuses to fix.   Tenants are subjected to sewer lines that are broken beneath the house that back up often, pin hole leaks, roof leaks, and even mold.  His attitude is, "Move if you don't like it."   Sarasota County says they are not interested in the things they can't see, so my friends are stuck with sinks and tubs that don't drain and sewage that backs up about once a month into the laundry room and bath tubs.  The investor/landlord has owned this home about a year and it's an example of the Seller who did not disclose the defects, but the investor should have spent the extra money on inspections and follow-on inspections until he was sure that this was a good investment during his 15 day due diligence.

Have a great day and stop by and see me at Excelsior Beach to Bay, 6266 Midnight Pass Road #404 today.  Go to my home page at   www.PalmerRanchLindaHolley.com and enter this number in the property search bar A4159484  to see the photos.

Always here to help you with your real estate needs.

Most sincerely yours,

Linda
941-914-4914

Good morning and enjoy your Labor Day weekend!   It's been an interesting week with Hurricane Hermine, but this afternoon, I'll be out  showing waterfront property to prospective investors.  This blog will give you helpful information about buying or selling waterfront homes.  

Hurricane Hermine was much kinder to Sarasota than northern counties on the Florida gulf.  The Herald Tribune today listed the three-day rain fall totals, the highest being the Sarasota International Airport at 10", Siesta Key and South Sarasota 7".  Coastal Manatee County (including Holmes Beach, Anna Maria Island, and Bradenton Beach) have experienced flooding since Wednesday causing school and business closures. Those areas received about 9" of water.   In Sarasota, we had flooding around Bee Ridge and Highway 41 Thursday, which is a common occurrence here with tropical storms, and I had a few tree limbs down in my neighborhood but nothing major.

Buyers and Sellers:  what do you need to know about waterfront property?  

1. Was the existing structure built after January 1, 1975? [Note: If so, special flood plain management regulations may apply.]
2. Is the property located in a Federal Emergency Management Agency (“FEMA”) special hazard zone (Zone A or Zone V)?
3. What is the currently required Base Flood Elevation (“BFE”)?

Zillow estimates for property values are based on mathematical models.  Zillow recommends contacting a local Realtor for a market analysis for the best results.  Call Linda Holley, your Sarasota, Florida real estate expert, if you need to know the value of your home.  941-914-4914  PalmerRanchLindaHolley.com