"Mr Taxman"

If you own a condo which you use as a rental property, make sure you are getting credit for all your deductions including condo fees, consult your accountant.

I hope everyone is ready for the holidays.




We are still slow in our 3 complexes, one new unit in Windrush, side unit 2/2 on the 2nd floor list price $259,500. The unit in Windward East on the 4th floor has been reduced from $425,000 to $399,500, this is also 2/2 but direct ocean.



The unit in Windrush is one of those MLS entry only listings; this is where the seller pays an upfront fee to have the listing in MLS. They are not represented by a listing agent and should have signed a no representation disclosure.



There have been 7 sales of condos in the beach area since out last post.



If you look carefully at the market results, it makes perfect sense even though we tend to overanalyze.



A unit in Golden Gate in Cape Canaveral closed at $27,400. This is a 1/1 with 480 sq ft; these units are renting for around $500-600 per month. You could keep positive cash flow and hope for a return of the market.



A unit in The Seaport closed for $95,000, these were selling in the $200,000’s a short time ago. It is a very popular rental place for people who are here on a short time basis. Cash flow is not there as they are renting now for around $1000-1200 per month. This is a gamble on the market.



A unit in The Meridian closed for $758,000. This was a developer model and showed great. It has 2440 sq ft with 3 bedrooms 3 baths. The Meridian has the best pool, clubhouse and exercise room on the beach. This unit was on the market for a long time at $994,000.



You always have to look at the individual for the reason and reaction.



Have a great holiday!



Jim Bagwell

You can't spell Charlotte without BOA!

The picture is the Omni hotel where Ada and I stayed in Charlotte NC. It is in the Bank Of America square, the building in the reflection is Bank of America corporate center with walk overs connecting a city block.

Not a lot new going on in our complexes during the past week.




One of the Diplomat oceanfront units is under contract. This is one that was priced at $220,000 reduced from $375,000. It went under contract 12/05/2009, I think this was a good buy.



On another note, not many of you are probably aware of Harbor Isles on the river around S. 6th street. The complex sits on 25 acres with a river boardwalk that is 3 blocks long, 3 pools, 2 are heated, tennis courts, clubhouse, exercise room and boat/RV storage. During the past 2 years there have been 16 units sold and I am happy to say we have participated in 11 of these.



If you have a friend or relative who is thinking about joining us in Cocoa Beach, we have just listed a ground floor 3 bedroom 2 bath unit on the lake. You would have to gut it and start over but priced at $155,900 it should be doable. One of the best features is the unit has 2 deeded 1 car private garages.

Good Holidays

Jim Bagwell

Hard Hearted Hannah's

If you have never spent any time in Savannah, I would highly recommend a weekend there. It is a great place to spend St. Patrick’s day. The picture is of the Chart House Restaurant. As you can see they go to great lengths to preserve all their buildings. The only time new construction happens is when a building burns or other disasters. Ada and I used to love to spend the weekend there and visit Hard Hearted Hannah’s which was a Blues and Jazz club and wouldn’t you know it, it burned and is now a hotel. Anyway that is my commercial for Savannah.




As you can imagine being a condo owner I get tired of reporting that Windrush sold for $265,000 and Windward East for $250,000 so a little positive news. A unit in Windward East direct ocean 2nd floor, 2 bedrooms 2 baths was listed for 134 days for $328,000 sold for $304,500. That doesn’t sound like much but it is a positive. We have all showed this unit and it is a rather nice unit.



Hang in there and if anyone wants to go to party Friday it is at our office starting at 5pm until. We are located at 100 N. Orlando av. Across from Quiet Flight surf shop.



Thanks



Jim Bagwell

Pirates in Savannah

Ada and I spent a few days in Savannah & Charlotte to visit a few of our old haunts. The picture is a view from our hotel in Savannah. The ship was built for a couple in Brazil and then transported to Savannah for rigging, they didn't have the funds to finish it so the city bought it and is now open for tours. How cool would it be to have your own pirate ship.

Nothing much has happened in our complexes since the last post.

There is another new front unit in The Diplomat listed at $149,000. This is a little high for the comps but we wish them luck.

To the south of us in 2100 Towers, a foreclosure was sold for $172,000, listed at $179,900. This was a 2 bedroom 2 bath unit with 1400 sq ft. This unit sold after being on tleh market for 29 days.

A little advice on selling your property.

"Some things never change" Like the 3 most important aspects to selling property.

1. Price
2. Location
3. Ease of showing & condition of property

Now in today's internet market the most important thing is pictures. Even in rentals we are now doing visual tours. How can you put a rental on the market that has a beautiful ocean view and you don't even show it on the web. Talk to your agent and insist on a lot of pictures, now pictures of the shuttle and Mickey Mouse are not necessary since everyone has seen these and you are not selling or renting either one.

I hope eneryone enjoyed their turkey day!

Jim Bagwell

Blowing in the wind

"Bob Dylan" For a blustery day in Cocoa Beach but still no snow

As I was doing my usual research on market stats for the week there have been 3 condos sold this week in our area.

Number one on the list is a Windrush 3rd floor direct ocean, 3 bedrooms 2 baths, 1495sq ft listed at $328,000 and sold for $265,000. This was a smoking deal as unit had hurricane sliders and fully furnished.

Number two is a unit in Rock Pointe, this is a riverfront complex, unit is on the 5th floor direct river, 2 bedrooms 2 baths with 1351 sq ft listed at $194,000 and sold for $165,000.

Number three is a foreclosure in Atlantic Gardens 2 bedrooms 1 bath, 815 sq ft, listed at $47,520 and sold for $45,800.

Good news is the 1st time home buyer tax credit has been extended until May of 2010 with additional benefits for the existing homeowner, I believe this will continue to aid the Real Estate market.

All is well when you live in Cocoa Beach.

Jim Bagwell

We're so sorry

Picture is from Cocoa Beach air show

I must apologize since a comment was posted on the blog before the last and I failed to notice. The comment was “I heard there was a 2/2 Windward East sold for $250,000”

If you remember I had reported the side unit on the 3rd floor that closed for $285,000 but more recently there was a 2/2 direct ocean unit on the 5th floor that closed for $250,000. This was a very good move on the investor’s part regardless of how much updating you would have to do. I will say in my opinion there was money left on the table by the seller but I am sure it was a quick sale. I fully understand why people choose not to use Real Estate agents in order to avoid commission. I am fully confident on the service our company provides clients so I usually don’t get defensive over for sale by owners. In fact we do quite a few of comparative market analysis at no charge to the owner.

New Happenings

The Diplomat

The other oceanfront townhome is now on the market priced at $499,000. This unit has 2520 sq ft with 3 bedrooms and 3 baths. This means both the oceanfront townhomes are on the market, the other is priced at $599,900.

A smaller 1st floor unit on the ocean is listed at $229,000. These units have 900 sq ft with 2 bedrooms and 2 baths.

Another front unit is also on the market, needs updating but priced at $117,900. Remember the front units have 750 sq ft with 2 bedrooms and 1 bath. This is a 1st floor unit.

Hope this helps and usually I am very good at responding to comments but somehow missed the last one.

Jim Bagwell

Back in the saddle

It has certainly been awhile since my last post. We have been very busy making a living. Foreclosures and short sales are still driving the market. I know the Florida Today reported today that the sale of existing homes in Brevard dropped for the 4th month in a row but we are still doing better than 2008. The mean sold price of homes are now at the 2002 level. You really can’t relate the mean price reported to the beach side since we are generally higher in property value than the mainland.

In our 3 complexes there are 3 new listings.

Another front building in The Diplomat listed at $137,900. This unit has been totally remodeled.

Also in The Diplomat one of the townhomes direct ocean has been listed at $599,900. These townhomes have 2520 sq ft with 3 bedrooms and 2 baths.

In Windward East we have listed a top floor 1 bedroom unit at $229,000. These are big for 1 bedroom 1 bath condos with 902 sq ft and the view is incredible.

Since the last post there have been 27 condos sold in Cocoa Beach & Cape Canaveral area. Some interesting facts are that one of these sold in The Mark after 1176 days on the market and one sold in The Crescent Beach Club with not a full day on the market and with multiple offers. The Crescent Beach Club was on the 7th floor, 3/2, 1804 sq ft listed and sold for $325,000.

Only 3 newer units sold with 1 in The Meridian and 2 in Michelina, price of these units started at $499,900 in the Michelina to $725,000 in The Meridian.

I will do my best to stay more current.

Jim Bagwell

"Hot August Nights"

Neil Diamond & Florida
Picture is of the canal on one of our MI listings

It has been an eventful August so far in the Real Estate Market especially the condo market.
In the business we have all been moaning about the large condo inventory for the last 2 years. We get a lot of calls looking for large 3/2 direct ocean condos and at the present time the inventory of this type of condo is extremely limited. There is the Windrush on the 3rd floor 3/2 with new hurricane sliders priced at $329,000; I am surprised it is still available.

So far in August the following condos of interest have closed:

Palmas De Majorca, 3/2 2150 sq ft originally listed at $609,000, on the market for 2 years, closed for $400,000.

The Meridian, built in 2007, 3/2 2180 sq ft on the 3rd floor, on the market 1 year, original price $789,900, closed at $575,000.

Crescent Beach Club, 3/2 2278 sq ft on the 5th floor, on the market for 48 days listed at $499,900, closed for $425,000.

Constellation, 3/2 2419 sq ft on the 5th floor, on the market for 5 days, multiple offers, listed at $425,000 closed for $395,000.

Perlas Del Mar, this is a townhome built in 2006, the pre-construction prices of these townhomes were $299,900 with some flips in the mid 300’s. The townhome has 2350 sq ft, 2 car garage, built in vacum and upgrades everywhere. This one was a foreclosure that was listed at $175,725 and closed for $165,000, on the market for 10 days.

If you have an ocean front condo on the market, I believe the market will coming to you just be aggressive.

Thanks for your time.

Jim Bagwell

"Summer time and the living is easy"

This picture was taken behind one of our listings at Harbor Isles down on S. Brevard av. The boardwalk is about 1300’ long and manatees are always under the boardwalk. The boat is off ramp road park where a lot of people kayak.

If you are out and about please check out one of our Windward East neighbor’s art display at the Cocoa Beach library. The artist is Jeanne Weaver and the oil paintings are fantastic and some of them were done right out back of Windward East.

Not much new going on in our complexes market, there is a new 2 bedroom 2 bath unit in the front building of Windrush. This unit is a 2nd floor unit with 1240 sq ft and is fully furnished. The rental term at Windrush is 1 month like Windward East; this unit is priced at $135,000 so it is now in competition with The Diplomat.

The market has definitely changed this year and the inventory of ocean front condos has diminished significantly. If the unit is priced at market value then this is a great time to sell. One of agents has a cash buyer and can’t find any condo in the price range.

I think I confused some of you with my comments about the buyer backing out on one contract and buying in Windward East. The original contract was in a complex up on Ridgewood Av., this complex is operating with a loan with no reserves. Our Windward East association is in good shape as far as I know. We do have a short sale listing in a complex that also has no reserve’s this makes it very difficult since you have to find a cash buyer because not many lenders will finance a unit in a complex with no reserves.

Have a good week!

Jim Bagwell

Change will do you good!

Hope all is well with everyone is well in this heat and humidity. I was talking to a retired guy in Harbor Isles this morning that is from Connecticut, he has lived here for 16 years and said he loves it compared to the alternative.

We have had some changes in our complexes which is always good.

The townhome at Windward East is down to $215,000. They are still in competition with the Beach Winds town homes that are selling in the $150,000’s. Sad but true!

There is only one Diplomat oceanfront left on the market priced at $249,900. This should get some looks.

There are now a lot of front units in the Diplomat priced in the $120,000’s & $130,000’s. If buyers are waiting for the bottom this could be it.

The Windward East 4th floor unit direct ocean has been reduced from $425,000 to $399,900.

To let everyone in on a little secret, the last sale in Windward East which one of our agents facilitated was sold because of the financial condition of the association. The buyers had an accepted contract on another unit (which I won’t name) until they reviewed the condo docs. The association is operating with a loan, which means if we “God forbid” have another storm then the association is in dire straits. Don’t hesitate to ask for budgets and financial sheets when making purchases!

Peace out

Jim Bagwell

Cocoa Beach fireworks

 
 
 
 

Excuse the photo, the beach was packed and I thought the fireworks were great.

Nothing new has happened in our complexes since the last post but I wanted to share something that I don't usually use this blog for this reason.

One of our friends who is also one of our agents has a home that he built a few years back and has been on the market ever since. This is a large 2 story home on Bayshore rd in Snug Harbor. The home has all the upgrades and sits on Edwards Bay. This is a protected bay off the Banana River.

The home is in the early stages of foreclosure so we are negotiating with the lenders to try to head this off with a buyer. The last price was $890,000 but I think it will sell for less.

If you know of anyone who is in the market for a good buy on a waterfront home, please let them know about this home.

The other pictures are the home on Bayshore.

Thank you
Jim Bagwell

Captiva

Picture from a trip Ada and I took to Captiva Island for a couple of days. This is the 5th highest rated par 3 course in the world. I have never had a ocean wave break on the golf cart before, if you get a chance give it a try.


Not much activity in our complexes since the last post.

There are 2 new listings in Windward East with both being direct ocean. The first is a 2/2 with 1394 sq ft. It is a second floor unit fully furnished and priced at $329,000.

The next one is a 2/2 on the 4th floor with 1394 sq ft and priced at $425,000 unfurnished.

For those of you who have been in Cocoa beach for awhile, one of our agents just listed a Palmas De Majorca. This was the site of the old Desperado's Mexican Restaurant. At the time Ada and I lived at Stonewood and loved to walk down to Desperado's for dinner and listen to the entertainment, they had the hottest jalapenos I have ever tried in the area. This unit is a 3/2 with 1800 sq ft direct and priced at $438,888.

Thanks
Jim Bagwell

Baby Boomers

picture from a listing at the Wavecrest in South Cocoa Beach.


Let’s face it our music was the best. Ada and I went to the “Classic Concert” over at the Hard Rock and it was a group covering Beatle music with the Orlando orchestra. I could not believe how many young people were there and knew all the words to all the songs. If you get a chance, check out this series. They actually did 4 encores until they ran out of songs.

2009 update

For those of you are following this is the update for the 1st half of 2009.

Active listings:

The Diplomat front buildings, there are still 9 active priced from $125,000 to $164,900.
The Diplomat ocean front building there is one unit on the 3rd floor priced at $274,900.

Windrush has 2 side view units, 1 is a 2/2 priced at $269,900 and 1 3/2 priced at $299,900. 1 direct view is a 3/2 priced at $329,000

Windward East has 1 townhome priced at $215,000 fully furnished and 1 side unit on the 6th floor 2/2 priced at $329,900.

Sold in 2009

The Diplomat, 1 front unit has sold listed at $149,900 and sold for $139,900 and 2 ocean units sold 1 listed at $259,900 and sold for $215,000 on the 1st floor and 1 listed at $289,800 and sold for $259,000.

Windward East has had 1 sale side unit listed at $299,900 and sold for $285,000, this unit was on the 3rd floor and was a 2/2.

Hope this helps to keep you informed and if you ever need info on the rest of Cocoa Beach just drop an email.

Jim Bagwell

"The times they are a changing"

Photo courtesy of Don Hoover since my camera failed. This may have been the last shuttle piggyback we get the chance to see.

The market is still busy since the prices are still falling. The 1st quarter of 2009was the biggest drop since the downturn began, this has in turn made Brevard County property undervalued by 19.2%. Condo financing is still a challenge but can still be accomplished. I think we have seen the last of mortgages on complexes without reserves.

I think all of our complexes still look fantastic especially with the palm tree trimming. We are fortunate to live where we live.

In The Diplomat the oceanfront on the 3rd floor has been reduced to $274,900, this unit will probably sell now.

In Windrush there are 2 side view units that are good buys. The 1st is a 2 bedroom 2 bath unit on the second floor and remodeled for $269,900 and the 2nd is a 3 bedroom 2 bath unit on the 3rd floor, furnished and priced at $299,900.

The market will come back so don't panic just enjoy the beach!

Jim Bagwell

"For every season"

"there is a reason" The Byrds

Well we have reached the end of snowbird season and a lot of our friends have headed back north. The green fees have again been reduced, especially in Cocoa Beach since they are reconstructing greens which doesn’t affect my game much because I can’t putt. When next season rolls around the greens should be in great shape so give Cocoa Beach country club another try next year. I do like to support local entities. Recently a lot of landscape people, painters, handymen and even auto detailers from Orlando have been showing up in the office but I have to tell them I use local businesses.

The Real Estate market has shown signs of stabilizing as activity increase’s although prices are still falling. The condo market is still very challenging with financing being the way it is as far as underwriting goes. We have a closing scheduled for this Friday in a very nice complex; the problem is that this complex doesn’t keep reserves. We had to switch lenders at the last moment because of no reserves, good news is we got it done through Space Coast Credit Union and saved the buyers a point. We also found out that USAA, which is a favorite lender for military personnel, will not write mortgages on Florida Condos period.

Our 3 complexes have not seen a lot of activity in the last 2 weeks but we have had some news in Windward East.

There is a new listing on the 7th floor of the side building that is listed at $320,000. This is a 2 bedroom 2 bath unit with 1316 sq ft. I would expect this unit to be shown and sold, I only wish they could have gotten it on the market during the season.

The Windward unit 308 that was listed at $299,900 closed at a purchase price of $285,000. This also was a side unit but was in very good shape.

Keep it in the fairway!

Jim Bagwell

"Eight days a week"

It has seemed like that lately. We have been as busy in the last month as we have ever been. I know that jobs are still being lost and Brevard County is still around 10% in unemployment, foreclosure rates are still climbing especially in areas such as Palm Bay. Despite all this bleak news we are seeing buyers of Real Estate coming back to our beautiful area.

Properties

Some buyers are naturally looking for foreclosures and short sales and we are selling those. We have sold 2 HUD homes this year 1 for $38,000 and 1 for $18,000. What is really exciting is that we are seeing buyers of condos finally breaking loose.

Financing, despite the new fannie mae regulations we have been successful in getting a lot of approved condo mortgages. I have a friend who is a large builder and developer of condo complexes. He is trying to sell out one of his largest complexes and he has said that so far this year they have written 11 contract and 6 of these have closed. Keep in mind that the hardest mortgage to obtain is new construction condos so this is encouraging.

Our complexes

There are several new listings that have shown in the past month.

Windrush
There is a new direct ocean that is a 3 bedroom 2 bath unit with 1495 sq ft on the 3rd floor with very good views. This unit even has new hurricane glass sliders. Listed at $349,000, this should be getting a lot of showings.

Windward East
Another side view on the 6th floor, this unit has 2 bedrooms 2 baths and priced at $329,900. This unit is on the 6th floor and the price is in the ballpark. The other side unit is on the 3rd floor with the same plan as the 6th floor unit. It is now priced at $299,900 and I can't believe it is not under contract. One of our agents showed it yesterday and her clients loved it so I hope it sells very soon.

The Diplomat
There are 2 more front units on the market 1 priced at $139,000 and 1 at $144,900. It seems almost to the point where enough units in The Diplomat have changed hands both on the ocean and the small front units that they may be at the bottom and start to rise in value in another 6 months to a year.

Have a pleasant Sunday afternoon.

Jim Bagwell

Beautiful Friends

Our good friends from Auburn NY were here this past week. We had a fun lunch at Coconuts and when I said it was chilly they informed me it was 11 degrees at home. I hope they are not still waiting on a plane in the Orlando airport. Thank goodness for Florida.

Some good activity in our complexes!

There are now 3 ocean front units in The Diplomat that are under contract. I think this is because regardless of how low the prices have dropped on condos there are still very few direct ocean units priced under $300,000.

The 3 that are under contract are as follows:

All the units are 2 bedroom 2 bath units with 900 sq ft.
Unit listed at $259,900 under contract and is a 1st floor unit.
Unit listed at $219,900 under contract and is another 1st floor unit.
Unit listed at $289,900 under contract and is a 2nd floor unit. This unit has been undated.

It really does surprise me that the unit in Windward East hasn’t gone under contract as yet. This unit is on the 3rd floor with 2 bedrooms 2 baths. The unit has been updated and offers 1316 sq ft. It is a side view of the ocean but it is still a good view and buy.

Fannie Mae

We are currently working on 3 contracts that are being underwritten by Fannie Mae. These are contracts on Cocoa Beach condos so the process has been rather time consuming. One contract is in the Xanadu and has been extended twice for insurance certificate. It can still be accomplished but requires tenacity.

Jim Bagwell

Fannie Mae in Florida

Well we are finally thawing out and we are definitely spoiled living in Florida. Our great friends in upstate NY gives us a weather update and I don't see how they survive.

There is yet another new listing in the oceanfront Diplomat that is priced at $289,800. This unit is fully furnished but I feel the competition of larger oceanfront units on the market is hurting The Diplomat.

There is also a short sale in the front building of Windrush that is under contract. This unit was priced at $139,900 and we will have to see what the unit closes for after bank approval.

FYI

Fannie Mae has singled out Florida for their new requirements for mortgages. Most of you know that Fannie Mae is the biggest underwriter in the business followed by Freddie Mac, Freddie Mac usually always follows Fannie Mae's lead. Miami Real Estate experts say this is the nail in the coffin for their condo market.

Some of the requirements are as follows:

2nd homes or investment condos will require at least 25% down payment and could move to 30%.

New construction is almost impossible to finance thru Fannie Mae. No entity can own over 10% of the units. At least 70% of the units must be closed or under contract. Fannie Mae will do their own review of the condo associations as in the past lenders were allowed to do their own review. This is an expensive process that can run as high as $1500 for the 1st unit under contract, paid by the buyer.

In all associations there can be no more than 15% of owners behind in their dues. This will kill a lot of smaller associations ( it may be better to try to get the review later in the month ).

I would hope that our state government will fight to change these requirements as we have to save the condo market as it is so large.

In the meantime we are gearing up to meet these requirements and it is imperative that the managers gear up on knowledge of their association. The Fannie Mae form of application is now intense as far as number of renters, foreclosures and etc.

Jim Bagwell

Cocoa Beach Condo Market

Happy New Year to all

Not a lot of activity in our complexes so far this new year, there is a front unit in The Diplomat that went under contract. The unit was priced at $149,900 so it was priced well, this unit was also fully furnished and showed well. Surprisingly the 1st floor ocean front unit in The Diplomat is still on the market with 2 bedrooms 2 baths and 900 sq ft, the views are pretty good and it is priced at $239,900, needs work but still not a bad sq ft price for oceanfront.

I am sure most of you have seen the 2008 foreclosure numbers. Florida has moved to the number 2 position behind Nevada.

On the beach side we are fortunate in that we have been rather unscathed in this market. At this writing the MLS shows 19 bank owned but in reality there are 15 since some listing agents just listed the properties incorrectly. There are however 69 short sales.

One of the foreclosures is in the Almar in south Cocoa Beach. Never lived in unit with 2713 sq ft 4 bedrooms 3 ½ baths, it is on the 4th floor of a 5th floor bldg. It is now priced at $499,900.or $184.26 a sq ft.

Enjoy the moment!

Jim Bagwell