Spring Hill Homes for Sale » General Real Estate

Which Real Estate Market Are You In?

Josh — Wed, 20 May 2009 16:51:57 +0000

As a Realtor – I get asked all the time about where I think the market is heading…some people say it’s leveling off and should start to turn around shortly while others say we’re in this for the (very) long haul and there’s no end in sight for years to come… to which the first group reply – but I can get a fully decked out former model home for $50/square foot with granite tops, stainless appliances, nice flooring, lighting, paint, etc in a gated community – how much lower could it POSSIBLY go? I know this example is true because I just sold it

I say both groups are correct – and in effect we have two real estate markets here in Hernando County (and pretty much everywhere else in the US right now). You have the homes that are priced well (10% of the overall marketplace) and then you have the other 90% that are still priced too high to garner any real interest from buyers.

The first market (the 10% that is priced well) is selling very quickly – usually within a matter of days – and often being sold at or above the list price. This market is far from a “buyer’s market” – it is a full-fledged and swinging seller’s market with multiple offers on almost every property.

The second market (the 90% that is still overpriced) might as well not even be for sale at this point. These are the seller’s who are holding on to prices that are just too high. This is where the “buyer’s market” is – because there are no buyers competing for overpriced houses.

A friend of mine from High School wrote the other day about how she’s trying to buy a house in Massachusetts, and was out-bid in a bidding war with 20 other buyers. Someone replied “so much for a buyer’s market…” My suggestion was to find several of the overpriced houses that she liked, and write lowball (i.e. realistic) offers on them every 2 weeks. One of two things will then happen – the sellers will either accept her offer or they will tell her to get lost – but at least there won’t be any competition from other buyers!

So I would ask the following questions…

To real estate buyers, I ask “Which type of market do you prefer?”

…and to Sellers, “Which market are you in?”

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New Photos Added to 3200 Spanish Bayonet Drive, Hernando Beach, FL

Josh — Thu, 15 Jan 2009 19:50:19 +0000

Photos have been updated at 3200 Spanish Bayonet Drive in Hernando Beach. This beautiful 3-story waterfront stunner sits on a Cul-de-sac double lot, has water on two sides of the property and over 215′ of seawall! Absolutely a must-see for anyone thinking of living on the water.

Click Here to View the New Photographs and Listing Information, and as always, if you have any questions about this or any other properties, please don’t hesitate to call at 352-397-5182 or email at Josh@HernandoLuxuryHomes.com

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Government Funds for Neighborhood Stabilization Coming to Hernando County

Josh — Sun, 07 Dec 2008 17:13:01 +0000

Are you tired of looking at that broken-down foreclosure across the street with the waist-high weeds and broken window?

You may not have to worry much longer!

Hernando County is now eligible for up to 5.6 Million Dollars in Federal Aid to help mitigate the foreclosure situation and repair/restore some of those broken homes.

Homes like this may be helped by these funds and
re-sold or rented to low-medium income families.

My understanding is this…Government gets up to 5.6 Mil to purchase homes that are in foreclosure and/or blighted (unliveable) in Hernando County. The government can then either rehab the homes and sell them, or tear them down and either rebuild the home or sell the dirt. 25% of the funds must be used specifically for low-medium income housing (families whose incomes do not exceed 50% of the median area income). The homes that are not re-sold will most likely be rented out.

The purpose of this program is to stem the tide of this declining market….but is it really going to help? I’m not 100% convinced…I definitely get the intent and it’s noble and good and whatnot…but let’s use an example to illustrate my thinking…

You own a home in Spring Hill…there are two homes on your street that have been foreclosed and are really in pretty bad shape. They’ve been for sale for a while, but nobody’s jumping on them…they’re too much work for a homeowner who has other options, and they’re just not priced low enough for an investor to make the move.

The government buys both houses, renovates them and makes them pretty again, and then re-sells them….here’s the problem… it takes time to renovate a house (I know, I’ve done 4 homes in the past 5-6 months). The market is declining at about 3% per month, and the government is not selling these to people who are paying above market-value for them…they’re going to put them out on the open market just like any other seller…and they’re going to compete for the same buyers (all of whom are looking for a smokin’ deal)…only…the government doesn’t have any money directly invested in the homes, and they aren’t required to necessarily turn a profit on them….so they have a different base to start from when they’re selling and competing with you for that buyer…that one buyer/month who is looking for a home like yours (and theirs)…they can lower their price easier than you can…and once they sell for less…they become the newest comp for you (twice over, because they initially bought at a discount because the house needed work).

So…the government buys at a discount, fixes up, and then sells at a discount or rents to low-income families…does that really help you? In some ways, yes…you no longer have to drive by that house and see it looking all broken…but…if you’re trying to sell at the same time…they’re not really lowering the inventory…they’re improving your competition, and going after your buyer.

That’s my concern…Two sides to every coin, I suppose. Only time will tell.

What are your thoughts?

For more information, please see the following:

US Department of Housing & Urban Development (HUD)
Florida Department of Community Affairs
article by Barbara Behrendt at The St. Pete Times
Press Release from Gov. Charlie Crist
Information Page from StableCommunities.Org