What do you think will happen to Sarasota realestate? (University: real estate, renter)

[vicarjoe]

I have a condo on the market and its gotten low ball offers. Boarder line rude offers. Like its 5 years ago and everything is falling off a cliff. I decided to pull it off the market and run it as a rental for a year or so. I can make about 10 percent doing that if nothing major goes wrong. But as it goes with me, just as I put in the pull the listing, I get an offer. Its not full price but close enough we are not a long way apart. I will counter offer but I wanted informed opinions from anyone who is in the Real estate game, their best guess on if Sarasota real-estate is going to keep climbing or will it take a breather for a while? Personally I think things have run up fast and if it does go up it will take a bit of breather to consolidate. But if we get a large move next season of Northerners coming down it may make another run up on price.

That said, I have done some open houses in the area and many are reducing their price. Not sure if they just priced it as if it were going up and gustimated too high or if the prices are stagnating a bit. I have to make a decision soon. Any help would be appreciated. The one thing is I have a good renter who wants to extend the lease for 14 months. So I can run it, and its a newer unit so not 25 years old. Its more like 12 years old. The only real big thing would be if the AC/Heat went out. That could cost 5k or so. Just looking for other point of views. As one stock market manager said, no one ever went broke taking a profit and if the counter is accepted I would about double my money in 4 years of owning it.

[bbronston]

I understand you don't think you have anything to lose by countering your current offer because it wouldn't kill you to hold onto it but you might want to consider accepting it if it is really that close. If they are asking for repairs or for you to pay for the title policy, considering countering back on those points instead of the price.

I say that because 1) you've had a hard time selling it; 2) the only offers you've received were very low (which tells you something); 3) you are seeing price reductions all around you; and 4) what if your market value drops AND you have the A/C replacement come up during the year...what would that cost you?

I'm not saying you shouldn't counter but I am saying that you might want to get out while the door is wide open for you. Personally, I don't see a big correction coming but I see a slowing for sure. That's actually a good thing for the market because it has been correcting from the downturn, IMO, for a few years by going up quickly. No one knows what will come, though. You are in sell mode so, for you, it might not be worth losing the only valuable offer you have had. Just food for thought...good luck!

[Zach Ashton]

Hit the bid. We're in a bubble and you're seeing new houses repriced right now, and will adjust more later this summer. Most of this stuff has been over-priced anyway.


Un-related but an interesting read today in the WSJ about used car prices falling, and the bubble in even car loans that are being securitized - that market is in a sub prime bubble too.


Job growth report today, and the revisions...job growth is anemic and bs jobs (part time, etc). The economy is unhealthy.


Cash is king. Sell the damn thing. This market has been over-heated too quickly and price compression has already started. Correction is coming big time probably in another 60 days. Condos are condos, but the SF market is at least 20 percent overpriced.

[Ladywithafan]

Take the money & run

[Zach Ashton]

Lots of areas are reducing prices - mostly new construction. I have received via email many new advertisements of PRICE reductions in all kinds of properties in the last week even, such as:




Taylor Morrison's coach home price reduction in LWR's Esplanade


Sarasota - Downtown Promenade 2/2 condos 15,000 REDUCTION


University Village by Medallion - "Anna Maria" 2/2 Den was 316 NOW 287 ,"Casey Model" was 323k NOW 286k




Even one house in Bonita (new) was offered 25k lower than 3 months ago




These are just a sample of price movements that I've received in the past week or so

[DdwyerK]

The Shekel King Lives!

[vicarjoe]

I countered back half way and they accepted. Hope it all goes through. From what I am told they are making a decision on cash or mortgage. So it seems they can do cash if they want and they want the unit as a rental investment.

[Old Gal]

Originally Posted by vicarjoe

I countered back half way and they accepted. Hope it all goes through. From what I am told they are making a decision on cash or mortgage. So it seems they can do cash if they want and they want the unit as a rental investment.

Sounds like a win/win to me.

[bbronston]

Originally Posted by vicarjoe

I countered back half way and they accepted. Hope it all goes through. From what I am told they are making a decision on cash or mortgage. So it seems they can do cash if they want and they want the unit as a rental investment.

That's great! Just curious, how soon will they close?

[Sunshine Rules]

Originally Posted by vicarjoe

I countered back half way and they accepted. Hope it all goes through. From what I am told they are making a decision on cash or mortgage. So it seems they can do cash if they want and they want the unit as a rental investment.

If they are doing a mortgage, keep in mind that almost all condo communities in our area will have to go non-warrantable financing, meaning it cannot go Fannie or Freddie conventional financing. Some condo communities don't meet the criteria for percentage that must be owner occupied, some don't meet the criteria because of budget reserves, etc. So buyers would be looking at 20-25% down minimum.

Obviously someone that can pay cash can easily come up with the 20-25% down payment. But there are lenders from outside of our area that are qualifying buyers for 5% & 10% down condo financing and the reality is those terms fall apart once the file hits underwriting, wasting everyone's time. So if the buyer does say they are getting financing, I would ask about terms up front.