[SouthFloridaNative]

What's going on with the prices in that place? I am seeing prices that are way, way too high. Higher than in South Florida. For example..I just looked at a 3/2 late 80's home on 1/2 acre for asking prices $280,000.. Nothing spectacular. Paint and all were from the 80's. I would not buy it if it were $180,000. Seriously, I think they are being a bit greedy in that area. I guess they think they can still rip off us "dummies" coming from the south part of the state.

[FloridaBoy]

Originally Posted by SouthFloridaNative

What's going on with the prices in that place? I am seeing prices that are way, way too high. Higher than in South Florida. For example..I just looked at a 3/2 late 80's home on 1/2 acre for asking prices $280,000.. Nothing spectacular. Paint and all were from the 80's. I would not buy it if it were $180,000. Seriously, I think they are being a bit greedy in that area. I guess they think they can still rip off us "dummies" coming from the south part of the state.

You are exactly right. When values went through the roof in South Florida, North Florida in general -and Putnam County in particular- looked like a viable alternative.

Investors pumped the value of land in the town of Interlachen (a one red light town) to more than 20-70 times the historical value. Lots that were so poor that for many years realtors wouldn't list them (since the cost to ride out and plant a sign on the lot would exceed the anticipated commission) were pumped to $20-$25K/lot. Keep in mind, the vast majority of these lots were miles from any paved roads and are too small to build on, have mineral soil and are just very poor lots. (But, like the saying goes, there is a fool born every day and two people to take advantage of him.) None of that seemed to slow the buyers, they just continued to buy sight-unseen and were happy as larks. Let me tell you, it was lunacy at it's best (or worse).

In the more desirable areas the market continues to correct. But, as everyone knows, realtors are quick to increase but slow to decrease. The glimmer of hope is, as the number of sales continue to drop like a rock, the prices will continue to come down (as they have in the past 6-9 months). Alot of the foolishness has been stripped from the market but the market has a long way to go. I anticipate in to take 6 months/year for everything to get back to normal.

Oh, by the way, those lots in Interlachen are back to being worth about as much as Enron stock.....Unreal

[tamiedearest]

My dad and his wife live in Interlachen, they bought their home right before the prices went up three, almost four, years ago. They both have said this past year that if they were looking for a house now they could not afford the house they bought. It is a great house with lots of land for their 3 horses and they love the area but they are also both retired and do not have to find a job. Not many of those in Interlachen.

[FloridaBoy]

Concerning the home that you mention in your example ( '80's 3/2 without renovations), one thing to remember Putnam County hasn't had a REAL subdivision of any size built in a long time. Thus, when the realtors saw that values were climbing, they didn't care if it was 1980's 3/2 home, mobile home or vacant land they just sold the seller on the fact that they had a goldmine and convinced them to ask unreal prices. Using your example, why would I buy a 1980's 3/2 on 1/2 acre lot when I can build a new home on a comparable lot for the same price? Some realtors need to learn a little appraisal theory and the law of substitution.

[SouthFloridaNative]

Originally Posted by FloridaBoy

Concerning the home that you mention in your example ( '80's 3/2 without renovations), one thing to remember Putnam County hasn't had a REAL subdivision of any size built in a long time. Thus, when the realtors saw that values were climbing, they didn't care if it was 1980's 3/2 home, mobile home or vacant land they just sold the seller on the fact that they had a goldmine and convinced them to ask unreal prices. Using your example, why would I buy a 1980's 3/2 on 1/2 acre lot when I can build a new home on a comparable lot for the same price? Some realtors need to learn a little appraisal theory and the law of substitution.

My thoughts exactly! I would much rather build a new home on more land. I guess they don't realize the market is on a down right now. And I also think that alot of people don't realize how easy it is to look on-line at public records and see in color what someone paid for their home or property. These people think we (buyers) are going to fund their retirement or something.

[FloridaBoy]

Values are coming down. PROFESSIONAL Realtors see the hand writing on the wall. I saw a realtor's half-page add in the local paper this morning and out of 12 listings, 6 said in bold red lettering REDUCED. ( The prices really have been reduced as I have tracked the market.) But, even though the prices have been reduced, they will need to be slashed to bring them back in line with what is reasonable....

[Debrlee]

Hey...I live in Putnam County and we're not all greedy...ha,ha! We moved to Welaka 3.5 years ago from Jacksonville and got a nice deal on almost 5 acres with an older MH. We have since put a 2007 "manufactured home" new septic, etc, on the property. We have recently thought of moving somewhere north...cooler but, don't think we could get a proper return on our investment. This is not a very well to do county with not a lot of industry.

[BLANKRE]

Originally Posted by FloridaBoy

Concerning the home that you mention in your example ( '80's 3/2 without renovations), one thing to remember Putnam County hasn't had a REAL subdivision of any size built in a long time. Thus, when the realtors saw that values were climbing, they didn't care if it was 1980's 3/2 home, mobile home or vacant land they just sold the seller on the fact that they had a goldmine and convinced them to ask unreal prices. Using your example, why would I buy a 1980's 3/2 on 1/2 acre lot when I can build a new home on a comparable lot for the same price? Some realtors need to learn a little appraisal theory and the law of substitution.

The first thing you MUST understand is the Realtor does not set the price!!!!! The buyers pay what they think is a good price for the land they bought. Than the seller wants what there friend just got. The Realtor gives the seller a cma of the sold properties seller sets the price. If you talk with a realer you will here them say that the sellers NEED TO REDUCE THERE PRICES, but the sellers wont do that.

[gym]

That's not that out of line. In Deerfirld and the surrounding area, they are getting 350-500 thousand. My house was 125,000 in 1990, we were offered 500, at the peak, now they are moving again for around the price I mentioned, we were looking at a spec house in Boynton, bordering a golf course, for 500.000 ,new construction, loaded with many extras, Marble floors, granite counter tops, and top of the line appliances, and a lap pool. The good thing about SE Fl, is there isn't any more room to build, so if you want to be an hour from Miami, and half and 20 minutes from La Solis, for the theatre and the nightlife, the prices are still holding, other than condo's and townhomes, you can still steal those if you search. It's the property that is valuable, and my house is on a double lot with a 40 ft pool, the house is small, but it's a cool house, also has a seperate hot tub, in ground with a seperat filter and heater.

[SouthFloridaNative]

Originally Posted by gym

That's not that out of line. In Deerfirld and the surrounding area, they are getting 350-500 thousand. My house was 125,000 in 1990, we were offered 500, at the peak, now they are moving again for around the price I mentioned, we were looking at a spec house in Boynton, bordering a golf course, for 500.000 ,new construction, loaded with many extras, Marble floors, granite counter tops, and top of the line appliances, and a lap pool. The good thing about SE Fl, is there isn't any more room to build, so if you want to be an hour from Miami, and half and 20 minutes from La Solis, for the theatre and the nightlife, the prices are still holding, other than condo's and townhomes, you can still steal those if you search. It's the property that is valuable, and my house is on a double lot with a 40 ft pool, the house is small, but it's a cool house, also has a seperate hot tub, in ground with a seperat filter and heater.

I would expect that area to be high. But in Putnam, there is nothing going on. There is no night life, no nice restaurants, no nothing. Only the main roads are paved. We rode all over their "neighborhoods"..augh, horrible! I had a backache b/c it was like being on a 4-wheeler. They have these weird easment roads where you have to drive though someone's elses driveway to get to your property. It is like they had no real plan..just started making dirt roads wherever and people just threw up mobile homes any which way. It's all very strange and unorganized. One definately would not want to buy any land there w/out first driving there and seeing it in person. You could be buying something 3 miles down a road that is more like a 4-wheeler trail through 10 other people's front/back yards.