Reasonably priced = reasonable buyers? (stucco, negotiations, insurance, property)

[mead]

The Florida market was/is one of the most overvalued in the country. The current property bubble in Florida has striking similarities to what occured in that state in the 1920s in South Florida. Rampant speculation occurred, drove the prices far beyond what is normal and now the market is crashing.

Yes you can sit on your property now, but the problem is you have you idea where the floor of the market will be. Pass up that $100k lower price and perhaps it will be $200k lower in a year. The problem here is the uncertainty.

We already have a credit-crunch going on, throw a lot of these toxic-waste mortgages resetting in the near future (forcing more houses onto the market) and decreases in real estate seems likely.

If a recession hits, which is 50%-50% at this point in time, expect things to get brutal.

What goes up, must....

[jimj]

I do notice that no one's mentioning the recent rise in costs to owning a home if FL as part of the reason for price declines. Who in the heck would want to pay top dollar for a house when insurance rates jumped to almost the price of the mortgage? Is it possible that this has more to do with things than anything else?
Not to mention that the real possiblitiy of having to replace your house every year or two is making FL less desirable?
Just a thought...

[CouponJack]

Originally Posted by jimj

I do notice that no one's mentioning the recent rise in costs to owning a home if FL as part of the reason for price declines. Who in the heck would want to pay top dollar for a house when insurance rates jumped to almost the price of the mortgage? Is it possible that this has more to do with things than anything else?
Not to mention that the real possiblitiy of having to replace your house every year or two is making FL less desirable?
Just a thought...

Jim, you make an excellent point. I think you need to throw in those increasing insurance rates into the mix. I don't think its the MAIN reason because home values have appreciated way, way more than historicals, but its a very big factor I think.

[verobeach]

Originally Posted by jimj

I do notice that no one's mentioning the recent rise in costs to owning a home if FL as part of the reason for price declines. Who in the heck would want to pay top dollar for a house when insurance rates jumped to almost the price of the mortgage? Is it possible that this has more to do with things than anything else?
Not to mention that the real possiblitiy of having to replace your house every year or two is making FL less desirable?
Just a thought...

Insurance rates are high if you are near the coast and if you have a home built before 2003. After this date, builders have had to adhere to strict building codes and this is reflected in your HOI rate. If you buy right and shop around for HOI, you will be okay. When taking into consideration that Florida has no state income taxes, and property taxes are on par, or lower, than the rest of the US, we have more expendable income here in Florida than we did in Virginia or Massachusetts to which we are hoping to return.

[palmcoasting]

Originally Posted by jimj

I do notice that no one's mentioning the recent rise in costs to owning a home if FL as part of the reason for price declines. Who in the heck would want to pay top dollar for a house when insurance rates jumped to almost the price of the mortgage? Is it possible that this has more to do with things than anything else?
Not to mention that the real possiblitiy of having to replace your house every year or two is making FL less desirable?
Just a thought...

I'm sorry Jim, but Florida is a big state. The misconception that all of Florida is paying high homeowners insurance is just that...a misconception. I live here and have never been hit than a hurricane and actually experienced worse hurricanes while living on Long Island. It's a local situation just as home pricing is local. Replace your house every year or two? Come on, lol.

[palmcoasting]

Vero, to answer your question, no, you won't only experience buyers who are looking to suck your eyeballs out. (I love that, lol) Last four sales I did were within $10K of the asking price ($280K-350K range). The homes were well kept and showed very well. All of them were cash buyers that knew what they wanted, were purchasing second homes. They were reasonable, educated buyers who aren't looking to make a killing or had any expectation of reselling the property in a couple of years. So, lower your price to a reasonable comfortable price for yourself. If an offer comes in that you think is ridiculous, counter at what you consider fair. Many buyers will come in super low just to see what your situation is. ALWAYS counter any offer you get unless it's something you can live with right off the bat. Leave yourself a minimum of $10-20K negotiating room so the buyer can feel they are getting something and you are reasonable.
You might want to consider lowering before the holidays...run a Christmas special or something...there are buyers down here now but the big months will be Jan/Feb/March.

[CouponJack]

Originally Posted by verobeach

Insurance rates are high if you are near the coast and if you have a home built before 2003. After this date, builders have had to adhere to strict building codes and this is reflected in your HOI rate. If you buy right and shop around for HOI, you will be okay. When taking into consideration that Florida has no state income taxes, and property taxes are on par, or lower, than the rest of the US, we have more expendable income here in Florida than we did in Virginia or Massachusetts to which we are hoping to return.

Well, wouldn't you agree that most homes in Florida were built before '03 and most people live on or close to the coast generally speaking?

I think whether its direct rising rates or an increase in fees, you are paying much higher amounts one way or the other.....do you agree?

[Frudy McRomson]

Originally Posted by mead

The Florida market was/is one of the most overvalued in the country. The current property bubble in Florida has striking similarities to what occured in that state in the 1920s in South Florida. Rampant speculation occurred, drove the prices far beyond what is normal and now the market is crashing.

Yes you can sit on your property now, but the problem is you have you idea where the floor of the market will be. Pass up that $100k lower price and perhaps it will be $200k lower in a year. The problem here is the uncertainty.

We already have a credit-crunch going on, throw a lot of these toxic-waste mortgages resetting in the near future (forcing more houses onto the market) and decreases in real estate seems likely.

If a recession hits, which is 50%-50% at this point in time, expect things to get brutal.

What goes up, must....

C'mon, quit being such a downer

[CouponJack]

Originally Posted by palmcoasting

I'm sorry Jim, but Florida is a big state. The misconception that all of Florida is paying high homeowners insurance is just that...a misconception. I live here and have never been hit than a hurricane and actually experienced worse hurricanes while living on Long Island. It's a local situation just as home pricing is local. Replace your house every year or two? Come on, lol.

You may not have been hit directly by a hurricane, but your chances are much greater of being affected by a major hurricane living in an area that you do. (just like the gulf coast or SC/NC coasts).

[jimj]

Originally Posted by palmcoasting

I'm sorry Jim, but Florida is a big state. The misconception that all of Florida is paying high homeowners insurance is just that...a misconception. I live here and have never been hit than a hurricane and actually experienced worse hurricanes while living on Long Island. It's a local situation just as home pricing is local. Replace your house every year or two? Come on, lol.

I was just going off what I've read on various threads about why people were moving out of FL and that they're insurance went up to several hundred $$$ a month.
That's all....