Post by a. Pizzarelli on Aug 31, 2015 13:15:50 GMT -5
In buildings like...
Prado
City Place Courtyards & Towers
Metropolitan
The Slade
Flagler Pointe
610 Clematis
During the 1st 10 years of the 2000's DT WPB saw a few thousand new condos come to market. Most were completed from 2004-2008. When the market correction came about circa 08' 09' and 10' less than 20% of the units in each building had financial fall out... meaning foreclosed on.
Today there is likely less than 2% of any building that has properties in Foreclosures.
This extraordinary market led to something called a short sale. This National Policy is likely one of the worst policies this country ever passed. It led to the erosion of trillions of dollars of home values across the US and in turn sucked County Budgets Dry. This policy is and was the leading cause of all the civic service reduction that were headlines not too long ago.
Locally the buildings identified above have still not recovered.
The main reason why is how these buildings are sold by the local real estate agents. Most of the "local experts" close less than 10 sales a year here yet determine the values by the way they service these buildings.
There is a glut of properties that I see that I believe are the main culprits of DT WPB's flat priced condo market. They are the typical 1200~ish sq ft 2/2 units and the 700~ish sq ft one bedrooms.
Pricing in this category is still only $200~ish a foot when they should be $300~ish.
In the past 4 years where markets have seen double digit increase in property values our market has seen flat and in some cases reduced property sales..... #WTF???
The 1st thing i want to share with local owners and broker a like is how the property maintenance fees affect price.
I hear all the time people looking at 2/2 units in the $250,000 range and disputing the property maintenance fee. The average persons response is that the maintenance fee is too high and it should be reduced. The right answer here is the PROPERTY IS TOO CHEAP AND THE PROPERTY PRICE NEEDS TO BE RAISED TO MATCH THE MAINTENANCE FEE. That's right... raise the prices in these buildings by about 30% on average and I can guarantee you will see sales occur. See people... these buildings are what's known in the industry as P.U.D. (Planned Unit Development). One of the key items when planning a PUD is "who" are we selling to. In the case of these DT WPB the "who" is luxury real estate buyers with disposable incomes. Discretionary buyers are just that... discretionary... they will over look a property because it is too cheap.
The Slade is a ripe example of poorly priced properties that are languishing on the market due to a disconnect between asking prices and maintenance fees. I guarantee you pricing the 1200'ish sq foot 2/2's into the $300k-$400k range will yield the proper style buyer for these units. Also the 1500-1600 should all be at least $500,000 to support the $1,000~ish maintenance fee.
I will be expanding on this topic Gr8ly over the coming weeks.
a.
"Save 80% on Real Estate Commissions Buying Florida Property via www.Str8RebaTe.com "
Prado
City Place Courtyards & Towers
Metropolitan
The Slade
Flagler Pointe
610 Clematis
During the 1st 10 years of the 2000's DT WPB saw a few thousand new condos come to market. Most were completed from 2004-2008. When the market correction came about circa 08' 09' and 10' less than 20% of the units in each building had financial fall out... meaning foreclosed on.
Today there is likely less than 2% of any building that has properties in Foreclosures.
This extraordinary market led to something called a short sale. This National Policy is likely one of the worst policies this country ever passed. It led to the erosion of trillions of dollars of home values across the US and in turn sucked County Budgets Dry. This policy is and was the leading cause of all the civic service reduction that were headlines not too long ago.
Locally the buildings identified above have still not recovered.
The main reason why is how these buildings are sold by the local real estate agents. Most of the "local experts" close less than 10 sales a year here yet determine the values by the way they service these buildings.
There is a glut of properties that I see that I believe are the main culprits of DT WPB's flat priced condo market. They are the typical 1200~ish sq ft 2/2 units and the 700~ish sq ft one bedrooms.
Pricing in this category is still only $200~ish a foot when they should be $300~ish.
In the past 4 years where markets have seen double digit increase in property values our market has seen flat and in some cases reduced property sales..... #WTF???
The 1st thing i want to share with local owners and broker a like is how the property maintenance fees affect price.
I hear all the time people looking at 2/2 units in the $250,000 range and disputing the property maintenance fee. The average persons response is that the maintenance fee is too high and it should be reduced. The right answer here is the PROPERTY IS TOO CHEAP AND THE PROPERTY PRICE NEEDS TO BE RAISED TO MATCH THE MAINTENANCE FEE. That's right... raise the prices in these buildings by about 30% on average and I can guarantee you will see sales occur. See people... these buildings are what's known in the industry as P.U.D. (Planned Unit Development). One of the key items when planning a PUD is "who" are we selling to. In the case of these DT WPB the "who" is luxury real estate buyers with disposable incomes. Discretionary buyers are just that... discretionary... they will over look a property because it is too cheap.
The Slade is a ripe example of poorly priced properties that are languishing on the market due to a disconnect between asking prices and maintenance fees. I guarantee you pricing the 1200'ish sq foot 2/2's into the $300k-$400k range will yield the proper style buyer for these units. Also the 1500-1600 should all be at least $500,000 to support the $1,000~ish maintenance fee.
I will be expanding on this topic Gr8ly over the coming weeks.
a.
"Save 80% on Real Estate Commissions Buying Florida Property via www.Str8RebaTe.com "