"Don't wanna turn that car around"

"I gotta turn this thing around"  O.A.R.

Yucky day in Cocoa Beach, had to cancel golf so sitting in the office listening to the ITunes Matchbox 20 station.  Picture is of London where I never saw the sun either.  It turns out my father was ahead of his time because he used to always say "don't make me turn this car around".  It was always my sister's fault.

Not much new during the holidays.

Our company does have 3 new listings in Cocoa Beach.
1.  A very cute 2/2 in Cape Canaveral with a side view of the ocean.  The unit has 1036 sq ft and priced at $174,900.  The HOA fees are only $233 monthly.

2.  Direct ocean condo in south Cocoa beach in Water's Edge.  the unit has been totally updated with 2 bedrooms 2 baths, 1350 Square feet and priced at $349,900.  Great place for primary home or 2nd home.

3.  For those familiar with The Constellation in south Cocoa beach, this complex has fantastic river and ocean views.  The unit on the market is  on the 4th floor with 3 bedrooms 2 baths  and 2419 square feet.  Shows like a home and priced at $524,900.

Enjoy this gloomy day.

Jim Bagwell

Christmas Surfing!!

For all our northern friends, clients and family!  80 degrees with plentiful sunshine on the day before Christmas Eve.  Keep on shoveling!

Walker Bagwell Properties are finishing up our 8th year in business.  I am proud to say 2013 has been our best year to date.  Even in the tough times I have totally enjoyed our company.  After being with ERA and Coldwell Banker, we have became like a large family.  We have added 4 new agents this year to our family.
Welcome to the following;
Celeste Van Ewyke
Morgan Campbell
Jim Holloway
Diane Holloway

Windward East

Still the most active complex but we are making progress;
Units 105 and 305 are under contract, these are the units with the extra room and square footage.  105 was listed at $209,900 when it went under contract and 305 was listed at $329,900 at the time of contract, both of these units were updated.  The two front townhomes are still active and one side unit.  The 3 units are overpriced but looking for offers.

Windrush 

Unit 201 is back on the market.  This is a 3/2 SE corner unit with 1623 square feet.  We had this unit listed last year and were unable to bring a buyer.  The owners are great people and the unit always shows good.  The only negative comments we received were choice of tile.  Listed at $345,000.

Unit 501 is on the market and I wish I could tell you where the price came from.  Basically the same unit as 201, 3 floors up and priced at $535,000.  Now there have been many newer units with more square footage sell for this price or less.  Good Luck!

Happy Holidays!

Jim Bagwell

The big biscuit

Its official The Big Biscuit is open and has big biscuits.  Food is rather down home with generous servings and a rather good lunch menu.  Give it a try.

It was just Ada and I for Thanksgiving so we went to The Mango Tree for their special menu.  It was great food and I think a lot of people had the same idea as they had to turn away 50+ people.

Windward East is still the most active complex with 5 active listings.  There is now another townhome up front on the market for $225,900.  That makes one at $230,000 and this one, they are still pushing the price limit as these 2 units are priced at the point at the height  of the market.  Prices are coming back but not this quickly.

The 1st floor unit that has the extra room and upgraded is still on the market and priced at $229,900.  This unit has the same square footage as the townhomes but you can walk out your back door to the beach and have a view.

Unit 305 is still on the market and also has the extra room with 1482 square feet, upgraded, fantastic views and a 2 car garage.  Priced at $339,000, this may be a little high but could be a very good buy.  You can comp it to unit 207 with closed for $325,000.

Sorry I have been so inactive but I had a little accident but I will be back on the course next week.

Jim Bagwell 

"Well butter my butt and call me a biscuit"

unknown in Carolina

Coming to Cocoa Beach, I assume this will be a home style restaurant.  It is located in the old Rum Runners restaurant.  Rum Runners used to be one of my favorite places with great fish sandwiches, it was never the same when it changed owners.

We would like to welcome our newest agent Celeste Van Ewyk.  Celeste is a Cocoa Beach resident and will prove to be a great addition.

Celeste has already ran into a phenomenon that every Real Estate agent will run into at one time or another and if you haven't already experienced this, you certainly will. 

The phenomenon is as follows; You get a new listing and you put it on the market after you have gone over the CMA with the seller and you list it at the top of price range.  You quickly receive an offer that is very fair and if they wouldn't pay cash it probably wouldn't appraise.  Since it happens so quickly the seller thinks "I should have listed it for more money".  I guess this is human nature but what it really is that the inventory is at a all time low so there are buyers waiting on a particular property to come on the market in a certain complex or neighborhood.  Once a property appears then they quickly make a offer.  When this happens the wisest thing to do is count your blessings and your money.  When a agent has a listing on the market they never want to sell for a price below market value.  Not only is it bad for your reputation it is bad for your commission.

The same thing happens with buyers when a seller takes their first offer without countering, they think I should have offered less.  I recently represented a couple who purchased a home in Melbourne.  We did a CMA and offered $2000 less than list price, $2500 in closing cost assistance from the seller.  We came to an agreement and when we did then the buyer thought they should have offered less even though the property appraised at our price not including closing cost assistance.

Stay thirsty my friend!

Jim Bagwell

 

GOOD FAITH

Picture inside the Linville Caverns, NC.  Deserters of the civil war used this cave as shelter.

GOOD FAITH; denotes sincere, honest intention or belief, regardless of the outcome of an action.
Good faith in real estate is most often called escrow deposit.  This is the initial deposit made into a escrow account to show the buyer's good faith in going through with a transaction.  Legally there is no actual requirement for this to happen to make a legal contract however most buyers wouldn't accept a contract with no show of a good faith deposit.

More and more real estate companies don't maintain escrow accounts in order to reduce paperwork and liability.  In this case the escrow deposit is made to the title company that is closing the transaction.  99% of the time there is no dispute about the release of escrow when a deal doesn't work out for a closing.

The 1% of time is why Walker Bagwell Properties still maintains an escrow account.  When the buyer and seller are demanding release of escrow and the title company is holding escrow, the only recourse is litigation which can be expensive to both parties.

When a dispute of escrow release occurs and the real estate company is holding the escrow then we issue a EDO (escrow dispute order) to FREC (Florida real estate commission).  FREC then looks at both sides and all paperwork involved in the transaction.  FREC then issues an EDO that instructs the real estate company how the release of escrow should be handled and who should be paid the escrow.  This process doesn't cost either party any money and there will be several lawyers review the transaction.    

Sometimes reducing liability doesn't serve the client.

A full service real estate company!

Jim Bagwell

"I tore my mind on a jagged sky"

"I just dropped in to see what condition my condition was in"  Kenny Rogers  He must be the biggest success moving from rock to country and who can forget Seinfeld's Kenny Rogers chicken episode.

A lot of activity continues in Windward East, in addition to the side unit 610 being under contract, this is the 2/2 listed at $269,000.  The 302 unit is now under contract, this is a 1/1 direct ocean unit and had a list price of $189,000.  I don't expect either to sell at list price so we will see when they close.  There is a new listing also in Windward East #309 which is a 2/2 unit with 1521 sq ft.  There is a good view to the SE.  The unit is priced at $299,900 which is a little high.

Almost every day I have a agent come in to ask about taking a listing that is overpriced.  My response is always the same, "the seller has the final say on list price".  I do however ask the agent to keep their comparative market analysis after showing it to the seller.  It is very true if the seller is not a hurry to sell or does not need to sell, you can put the unit out at an inflated price and wait for offers but it is also true you will get more showings if you are priced within 10% of the market value.  It always comes down to the true market value is what a buyer will pay for the property.

Jim Bagwell  

"Heaven on earth with an onion slice"

I'm just a cheeseburger in Paradise"  Jimmy Buffett  My wife and both partners don't eat meat so I feel bad every time I eat a cheeseburger, just kidding!

Speaking of cheeseburger in paradise, I came across this listing that is a detached townhome on it's own lot with a 2 car garage.  The home is listed at $799,000 and has 3 bedrooms 2 1/2 baths with a 2nd story deck with great views.  Property has .19 acre direct ocean and is located at Adams and the ocean in Cape Canaveral.

Windward East unit 302 is now under contract along with 610, if priced they sell.

Shutdown
.
With the government shut down we are dealing with some creative mortgages but nothing critical so far but will get worse.  In order to get verification from IRS, it is not available at the present time but we have found some ways around this.  At least congress is still getting paid however the average congressman makes $3300 weekly compared to the average American making an average of $800 weekly.

Jim Bagwell

"Mountain Mama"

"Take me Home, country roads"  John Denver

Picture is of the Sphinx rock on Grandfather mountain.  Ada and I took a little road trip to Blowing Rock, NC.  It was a great time.  I decided to try new things for dinner so one night I had SC flash fried oysters and the next night I tried my first bison.  They both were delicious.   If you find yourself in Blowing rock try the Gamekeeper restaurant, I give it 5 stars.

In the complexes we have talked about, the inventory is now next to nothing.

Windrush;  no active listings.

2100 Towers; One active listing and that is the penthouse that started out at $1,200,000 and is now at $899,000.  More realistic but may not be low enough.

The Diplomat;  One active listing in the front buildings priced at $129,900.  This one is priced correctly.

Windward East;  3 active listings remain, the 1/1 on the 3rd floor priced at $189,000, this is direct ocean so the price is not far off or is at least worth a offer.  1st floor that is a foreclosure and priced at $249,900.  This unit has 1482 sq ft and features 2 bedrooms 2 baths with the extra room.  The townhome in the front is still priced at $230,000, this unit is still not priced competitively compared to the ocean view buildings.

Jim Bagwell

"It's just he gambles so much"

"And you know that it's wrong" 
"Waiting for an alibi"  Thin Lizzy

This picture is of a listing one of our agents has in South Cocoa Beach.  Truly one of a kind property.  The property features an oceanfront home with 3 bedrooms 3 baths and has been totally renovated with granite, gas range and storm rated doors and windows.  At the roadside of the property are five 1 bedroom 1 bath apartments with long term tenants and one 2 bedroom 1 bath with all the upgrades with deck and ocean views.  Listed at $1,295,000 it presents all types of possibilities.

It is a busy time in Windward East!

There is a foreclosure on the 1st floor listed at $249,900 and has been upgraded with a office/family room.  There is also a 6th floor listing that is a 2/2 needs a little updating and a list price of $269,900.  Also now there is a front townhome listed at $230,000.  This unit features 2 bedrooms 2 1/2 baths with square footage of 1450', this is going to be a hard one to comp since ocean view units have closed for less.

Jim Bagwell 

"Things just couldn't be the same"

"Cause I'm as free as a bird now"  Lynyrd Skynyrd Free Bird

Ada got this picture on the golf course at Cocoa Beach on Sunday.

NAR has reported that the condo market may be booming again despite the lack of inventory.  For the month of July the sales of condos were up 23% from a year ago.  Midwest and Southeast lead the way but all regions are up at least 20%.  This is really good news for Cocoa Beach.  Our inventory is still at a all time low.

The National Association of Home Builders report that optimism has skyrocketed in the second quarter.  In the Miami area a flood of Latin America money has started a new high rise condo start ups.  This area a couple of years ago had totally bottomed out.

Financing is still a challenge but can be achieved if you stay with it.  Please try to use a local lender,  we have to be able to get our hands on them.

Speaking of condos there is a foreclosure in Windward East with 2 bedrooms 2 baths, upgraded priced at $249,000.  This is a 1st floor but convenient to the ocean.

Jim Bagwell

YOU KNOW YOU WANT TO BE ON THE BEACH

Just another September afternoon in Cocoa Beach!

I just did an extensive search for truly oceanfront condos in Cocoa Beach & Cape Canaveral.  As of 8/31 there were 32 truly oceanfront condos on the market.  Now back in the day I have showed buyers that many condos in a 2 day period that they were interested in that were in their price range.

So far this year there have been 325 residential listings sold in Cocoa Beach, this includes all types of homes.  At the present time there are 183 active residential listings of all types on the market.

The interesting part of all this is the average days on the market is down to 152 days and that includes the new buildings yet to be built.

It is a great time to be a seller of oceanfront condos.

Jim Bagwell 

"Red sky in the morning"

"Sailors take warning"

Unusual sunrise this morning in South Cocoa Beach.  right now though there is not a cloud in the sky.

Mortgages

I have noticed a lot of home sellers becoming increasingly frustrated with the time it is taking on approval of mortgages especially FHA and VA loans.  Unfortunately this is a time consuming process and I don't see it getting quicker any time soon.  The buyer picks the lender if asked I will offer several lenders to choose from but do not make the final decision.  When I find some mortgage brokers don't answer their phone or do not return calls then I don't recommend them anymore.  Nothing is quite as frustrating as a professional not taking calls or not returning calls.  It may be bad news but it has to be addressed.  We have had a couple of agents who were very bad about communication and needless to say they are no longer with us.

I have a contract on a home in Melbourne in which the buyers are very well qualified for a purchase.  They wanted to go VA since they wanted to save their cash and finance 100% of the price.  This is a very common practice but a lot of sellers are hesitant about accepting VA.  VA is an excellent tool and we still did the contract as is with no additional fees for VA.  Inspections are set for this week so I hope for the best.

Jim Bagwell  

"When written in Chinese,"

" the word "crisis" is composed of two characters.  One represents danger and the other represents opportunity."  John F. Kennedy

These are some pictures of the new listing I have been referring to in previous blogs.  This property is a triplex that was converted from a quadplex.  The owners have been using the 2nd floor as a 2nd home.  The property can easily be converted back to a quadplex for rental purposes.  Being in the county the best use may be to make this into a weekly rental.  The property consists 100.35' on the ocean and 160' deep.  Even with the building being on the north edge of property there is room to add another structure.  The property is priced at $965,000.

Click below to see visual tour;


 http://www.visualtour.com/show.asp?t=3145083&prt=10003
Jim Bagwell

"And I can still hear my old hound dog barking"

"Chasin' down a hoodoo there."  CCR

This is becoming a common sight on the canals of Cocoa Beach with the older homes being totally taken down or gutted.
The listing we talked about last blog is still not official but should be soon, I will keep you posted.

We talk about CMA's quite a bit but I don't think people know what we are really talking about.  Comparative Market Analysis (CMA), to have a meaningful CMA the agent should try to compare apples to apples.  I always try to stay within a 6 month time frame since last year is last year and the market changes daily.  You should try your best to keep within 10% of square footage and within 5 year period of the date built.  Don't compare waterfront to non-waterfront even though we have had appraisers try to do this and then we have to appeal.  Don't compare riverfront to oceanfront even though we have had appraisers try to use this. 

In the end CMA's when done the right way are one of our most important tools and I try to use this for both buyers and sellers.  In fact it works better when used for your buyer because it gives the buyer a feeling of what other buyers have paid for similar listings.

Bottom line is like one of our clients told me the other day "as we both know the market value is what someone will pay"  Sound advice!

Jim Bagwell 

"Maybe Im just like my father 2 bold".

When Doves Cry  Prince

With the 45' vertical restriction in Cocoa Beach, this is the proposed plan for new condo development.  If approved this will be very exciting with top of the line everything and fantastic views.

Real Estate News

With our dysfunctional federal government, there are all kinds of plans in place but one that is interesting.  A lot of cities have developed a plan to claim homes under eminent domain when homes reach foreclosure state.  Most cities have dropped this plan but Richmond Calif. is holding onto the plan.  HUD has followed with the legal statement that FHA will not be responsible for insurance on homes that are claimed by eminent domain.  I don't think this will hold up to legal process.

According to the Wall Street Journal home prices have risen 12% during the last year.  According to Goldman Sachs the increase will continue but at a less brisk pace because the homes are now at fair value.  They also say the foreclosures are drying up, I really can't agree with this last statement since I believe we will see the next stage of foreclosures later this year especially in economically challenged areas.

Jim Bagwell 

Opportunity knocks

No new listings that would grab my attention.

If you have ever dreamed of living on a beautiful beach while collecting your income from your own rental properties.

In all probability we will be putting on a very unique property on the ocean.  There is already a income property on the property with room to add more.  It would be very possible to live in one of the units and collect weekly income on the other 3 while you develop the property with additional units, by my calculations the property would be paid for in 10 years or less.

When it is solid I will share the listing with you.

Please stay tuned as this won't last long.

Jim Bagwell 

"Oh God said to Abraham "kill me a son"

"Abe say, "man you must be puttin' me on"  Highway 61 revisited, Bob Dylan

We usually talk about Condos but the inventory of waterfront homes on the beachside is actually at a lower point than waterfront condos.  As of this writing there are only 26 waterfront homes in Cocoa Beach/Cape Canaveral, this includes ocean, river and canal front homes.   Usually the most sought after homes are canal homes priced between $300K to $500K, these usually go quickly and multiple offers are becoming common.  This is a great time for the seller and the buyers have to be ready to buy.

For those of you who saw the President's last speech, you probably heard him mention the dissolution of Fannie Mae and Freddie Mac.  This, if passed, will take about 5 years to take place and a lot of people think this is a good thing.  I am on the fence about it for the reason that when completed it will require lenders finding investors to buy these mortgages.  Now as we know this can be a risky investment but with a better chance to make money than to lose.  At the present time about 75% of all mortgages are owned by Fannie Mae or Freddie Mac.

Good news for Florida is so far this year about 50% of all properties sold have been cash sales.

We will hope for the best.

Jim Bagwell

"Good day Sunshine"

"I need to laugh when the sun is out"  The Beatles

Great news!!!  Windward East 406 has closed for $300,000 after 3 years on the market.  Now that is perseverance!  After $25K in upgrades this will be a killer unit with great views.

We would like to welcome Celeste Van Ewyk as a new agent.  Celeste is working in the office for awhile until she learns more about the business.  We also have 2 couples who are in the process of taking the state test in order to join our company.

Unlike a lot of brokers I like new agents.  Especially the ones who really want to try to learn and help their clients, friends and family.  Some agents when they achieve a degree of success develop a huge ego.  I have actually heard agents say they will not allow their buyers to pay more than a certain price.  Now really,  that is not a agent's call to make especially on foreclosures.  We are now entering the market where multiple offers are common and sometimes the market will tick up and leave this agent behind.  Some buyers find the home that is just right for them and in that case the agent should show the buyer comps but the final say is for the buyer.

Stay thirsty my friends

Jim Bagwell

"I've lived a life that's full"

"I traveled each and every highway"
"And more, much more than this"
"I did it my way"
Old blue eyes

You have to thank each sunrise.

Each day I hear real estate agents talking to prospective buyers and urging them to pull the trigger.  You hear this property won't last long so you have to act fast!  This property is a no brainer, you can't lose!

For most people real estate purchases are some of the largest purchases in their lifetime and should not be an impulse purchase.  Now if you find a Iphone on sale, go ahead and buy it, but when you are looking at a 30 year mortgage then be sure.

I had my favorite broker once tell Ada and I that he couldn't believe that we were successful with our laid back attitude.  It is not so much laid back as it is that we don't want to add extra pressure to a stressful situation.

I am proud to say that we are still around and rather successful.  The key is that we are facilitators in the transaction.  We are here to find you an acceptable property whether it be your primary residence or an investment.  We will give you comparable sales, opinion on price, protection on any offers and year's of experience.  You will not hear one of us say you can't lose because you always can lose but we will put you in a transaction that will make the success rate very high.

Don't be pressured in a sale or purchase.

Jim Bagwell   

Trials and Tribulations

of a Real Estate agent!

Picture, heading out of the port on Miss Cape Canaveral.  A very wet day with only baby fish but had fun with my son and grandkids.

The deal we talked about with the law and ordinance insurance fiasco was solved.  The buyer went to an independent mortgage broker who says he can get it done.  Sometimes the large lenders are not the answer, just like Real Estate companies.

45' vertical restriction in Cocoa Beach.

Now I know there is a large faction of people in this city who want the city to just remain the same and this restriction certainly makes it possible to do that.  With the lack of inventory there is a new condo development in the planning stages for Cocoa Beach.  It is appearing to be a very west coast contemporary style building that will be very attractive with 4 floors.  I personally like the key west style of buildings but with this restriction it is almost impossible to build a building with this design with the vertical and density restrictions.  It becomes cost prohibitive to be very creative.  The height restriction incudes even the parapets if there are any which with a 4 floor building there can't be any.    Sometimes we are our own worst enemy, or as a friend of mine always says "we have met the enemy and it is us".

Jim Bagwell

Pot of Gold

I wonder if these cruise passengers found the gold.

The inventory available is still not keeping up with the buyers and multiple offer situation is again becoming normal.  We are not alone in this situation as some markets are much more active.  My son is trying to buy a home in the DC area but it is extremely difficult to find one and when you do you better be quick.  In this area of the country the average days on market is nine days.  Some seller shenanigans are also taking place.  The NY Times reported that even after seller has agreed to a offer verbally, they are backing out of that deal and renegotiating with other buyers.  While this is good for the bank account it is still questionable ethics.  This is one of the reasons I try to get each transaction in writing up front.  In this same article it was reported that one seller agreed to sell his condo for $918,000 or $18,000  above list price, then backed out and sold to another buyer for $1,104,000.  I can just see the law suits coming.

As Fannie Mae and Freddie Mac continue to change their rules, the challenge of getting loan approval is rather tedious.  Ada has a contract pending using Everbank as the lender.  Everything was good to go until one week prior to closing and at that time the lender notified us that we couldn't close because the condo association didn't have law & ordinance insurance.  This insurance took place after the hurricanes Hugo and Andrew and has to do with replacement costs of the complex.  Not many associations carry this coverage and there have been numerous condos sold with financing in this same complex this year which were approved by Fannie Mae.  Ada is scrambling now to get this insurance on the single unit.  Real Estate is not easy.

Jim Bagwell

 

"Pink, it was love at first sight, yeah"

"Pink, when I turn out the light"  Aerosmith 

Rosetta Spoonbill, we saw this guy on the 9th hole on the dolphin course.  Needless to say that was the only birdie I saw on that hole.

For those who read the last blog, we talked about escrow.  Escrow is basically a good faith deposit.  When you make an offer on a property and come to agreement then the buyer is expected to make a escrow deposit.  The times when the buyer's escrow could be in jeopardy are as follows.  When a buyer makes a cash offer with a as-is contract, keep in mind that you have the right to inspect and cancel but you must do this in a timely manner and not let the inspection slide by as this is your only contingency.  If the buyer lets the inspection period expire or not notify the seller that the inspection is not satisfactory then the seller has the right to put in a claim on the escrow.

When the buyer is using a mortgage then they have a mortgage contingency and an inspection contingency.  Usually you have 5 days from the acceptance date to apply for the mortgage.  The buyer has to make a good faith effort to secure the mortgage.  Keep in mind you have to have a loan commitment to release this contingency.  If the lender can just not approve the loan then the buyer will receive the escrow with no penalty.  Both agents should keep a close eye on the contingencies so you can meet all dates and not cause stress to either buyer or seller.    

Time is of the essence in all Real Estate transactions.

Jim Bagwell   

Flippers are back in Florida

In Brevard County of all homes that have sold in 2013, 9% of these homes have been resold in 2013.   That is really significant and investors are rushing to buy sensing that prices are on the uptick.

Last blog we talked about the listing agreement, one thing we talked about was the escrow deposit.  Each contract should protect both buyer and seller.  This being said when you make a offer and get it accepted time is of the essence.  A good agent will protect the buyer when they make a cash offer with an inspection contingency.  This means that the buyer has an inspection performed by a certified inspector within a specified time period.  The inspection report has to be acceptable in the sole discretion of the buyer.  If not the buyer will notify seller that they are not going forward with the contract or renegotiate the price.  At this point the escrow is returned to buyer with no penalty.

When a buyer is securing a mortgage then you would have a finance contingency.  Usually within 5 days a buyer must make application for mortgage, try your best to use a local lender which is much easier.  The buyer must make a good faith effort to secure the mortgage.  In today's market it is usually safe to allow at least 30 days to obtain loan approval.  In this time period if the mortgage is impossible to obtain then the escrow is returned to buyer with no penalty or we can ask for an extension.

Next time we will talk about when the escrow could be in jeopardy.

Jim Bagwell

Is a listing agreemwnt considered a legal contract???

Actually a listing agreement is a legal contract.  It contains all the elements and everything that constitutes a contract.

These agreements can be as simple or as complicated as the broker makes it.  The agreement should contain the date of the agreement, the expiration of the agreement, the address & legal description, the listing price, all appliances in the property, all personal property that does not convey, amount of commission and how it will be split (our company always pays out 50% of commission to the company that brings buyer).  Some items to pay special attention toward is the cancellation fee if any (our company doesn't charge one) , the amount of days carried forward from expiration date if a previous looker decides to buy (our company makes it 30 days), the amount of escrow kept by listing contract if purchase contract falls through (our company keeps 25%, the reason for this is the amount of paperwork and time it takes to get a ruling from the Florida Real Estate Commission). 

Walker Bagwell Properties only use Far/Bar contracts for all transactions.  You may recall the large company that acquired several companies in Brevard County making them the largest in the country.  We recently received an offer from this company and they had added the clause to the purchase contract that states law, the buyer and seller agree that broker can file a lien on property in case they don't receive commission upon closing.    Now I realize they have attorneys on staff that have to have something to do but this is simply paranoia.  The listing agreement spells out the commission to be paid.

Just remember to keep it simple and protect both parties.

Jim Bagwell

"I don't have any reasons"

"I've left them all behind"
"I'm in a New York state of mind"  Billy Joel

I'll still take Cocoa Beach!

Well so far in July there have been 10 new oceanfront listings in Cocoa Beach/Cape Canaveral.  The most interesting is a SE corner on the 2nd floor in the Xanadu.  This unit has 3334 square feet with 4 bedrooms 3 baths and 2 1/2 baths, priced at $700,000 which is still not too high for the square footage.

In this same period there have been 12 oceanfront listings sold.  The highest are still in The Meridian which is a very nice complex with the best pool and gym on the beach.  The 2 units sold for $575,000 & $650,000.

At the present time there are 46 oceanfront listings that are under contract with a few new construction units that won't complete until 2014.

With the interest rates rising to over 4%, which is still a very low rate, some buyers think the rates will again lower.  I don't believe the rates will come down for quite some time if ever.

Jim Bagwell

"Born in the USA"

"Got in a little hometown jam so they put a rifle in my hand"
"Sent me off to a foreign land to go and kill the yellow man"
Bruce Springsteen

We had to take our son Jason to the airport last night for another trip to Dubai and then Afghanistan.  This will be his 4th time over there but this time as a civilian.  God bless all the men and women who are still there.  Treasure your freedom.

In the month of June there have been 14 new listings on the ocean in Cocoa Beach/Cape Canaveral.  In the same period there have been 19 oceanfront condos sold priced from $75,000 in Twin Towers to $550,000 in Michelena.  Two extremes for 2 totally different condos.  Although the inventory is still low you can still find what you are looking for in a condo if you are very patient.

Happy 4th!

Jim Bagwell 

"I've got a feeling"

"Everybody had a good year"  The Beatles

This year's air show is moving south down the beach to Indialantic.

Well this is exciting news!  After 1032 days on the market Windward East unit 406 is under contract.  This is the 2 bedroom 2 bath unit 4th floor direct ocean, needs updating but features great views.

Since the last post on 6/25 there have been 11 waterfront condos sold in Cocoa Beach/Cape Canaveral, during the same period there has only been one new listing.

In the news

The month of May had the most pending sales since 2006.  The percentage in May was 112.3 and in May of 2006 it was 112.6.  Look for mortgage rates to rise slightly.

If you are thinking of buying a property you really need to go ahead and get a pre-approval from a reputable lender and be ready for your offer.  Good listings are going under contract very quickly and you will be ahead of the game with a pre-approval.  It always works better if you use a local lender.

A new bill is in front of the senate from a bipartisan group that would do away with Fannie Mae and Freddie Mac and replace with a new guarantor called the Federal Mortgage Insurance Corp.  This would require investors to absorb 10% of the mortgages that fail.  At the present time when mortgages default, investors who bought these mortgages are free of loss.

Enjoy the weekend!

Jim Bagwell

Cocoa Beach

A new listing came on the market in the Colonial House Condos.
I have always liked this complex.  It is located on the river behind the old Publix.  The unit comes with a deeded boat slip and features 2 bedrooms 2 baths with 1526 square feet.  The only downfall is it is priced a little high at $299,900.

Ada and I tried the new Florida's Fresh Grill this past weekend.  It was very good and reasonably priced.  They have also renovated the bar area allowing more seating around the horseshoe bar.  The service was very good and the owners came around to check on everyone.  Ada and I had the calamari appetizer, then Ada had the swordfish with mango salsa and I had the filet mignon.  All the fish is fresh except for the Chilean sea bass and the steaks are hand cut.  See pictures below;

 

 

Give it a try and support your local business's.

Jim Bagwell

"Riders on the storm"

"Riders on the storm Into this house we're born Into this world we're thrown" The Doors featuring Jim Morrison who spent some early years in Melbourne

Cocoa Beach storm rolling in over the ocean 06/20/13

Windrush unit 313 has closed for $207,500.  This is a side unit with 2 bedrooms 2 baths and 1271 square feet.

As of this writing there are now 117 oceanfront condos listed in Cocoa Beach and Cape Canaveral and 2 of these are time shares.

So far in June there have been 11 oceanfront condos listed and 11 that have closed.

Strange but true.

Jim Bagwell

"Tell me baby, what's my name"

"Tell me honey, can ya guess my name"  Sympathy for the devil from the Rolling Stones

Cocoa Beach sunrise

Well Windward East 208 & 408 have closed.  Pickings are getting scarce.

A couple of new listings that have showed up this month that should draw some interest.

A NE corner unit in Stonewood came on the market.  This floor plan shows like a house with 2140 square feet, 3 bedrooms 2 baths and has balconies on the ocean and on the north side with side views of the ocean.  The unit has been upgraded and is listed at $499,000.

A 1st floor unit in Sun Club has also came on the market.  This is a 3 bedrooms 2 bath unit on the 1st floor with 1344 square feet.  The unit has good views for a 1st floor unit.  This one is a short sale at $225,000 and is owned by the condo association.  Should prove interesting.

Stay cool!

Jim Bagwell

"Bad man walking, bad man"

"Bad tongue talking" Gov't Mule, these guys would come together on breaks from the Allman Brothers.  amazing you can still catch Greg Allman around Brevard County.

What ever happened to suicide doors?

Ada has been working on a short sale for what seems like forever.  Sometimes they go pretty quickly and other times it is a test.  The buyer is a very nice lady who has been extremely patient.  Both agents have been giving up commission all along.

The latest thing that has come up is that Fannie Mae has added another restriction.  Most wind insurance is held by Citizens Insurance, Fannie Mae now requires Ordinance or law on the wind/hurricane policy.  Citizens doesn't offer this type policy,  now if the association can afford the policy they should have it but most owners do not want to pay an assessment in order for a new buyer to purchase in the association.  95% of all residential loans are backed by either Fannie Mae or Freddie Mac, as of this writing Freddie Mac doesn't make it necessary for this clause.

A side unit in Windrush is under contract.  This unit features 2 bedrooms 2 baths and has been upgraded.  It has a northern view and was listed at $217,000.

On a side note The Mango Tree has added new entertainment on Wednesday nights from 6pm to 8pm.  This singer is also a roofer and sings all the old standards so if you like Frank Sinatra, check it out.

Jim Bagwell

"I was seldom able to see an opportunity"

"until it had ceased to be one"  Mark Twain

We have a well qualified buyer who is ready to move up in Windward East.  If you own a unit in the 101, 105.106 or 107 stack on the 3rd floor or higher then we would be able to save you some money on the sale of your unit.

If you lhave any interest at all please give me a call!

Jim Bagwell

"May the bird of paradise fly up your nose"

"May a elephant caress you with his toes"  Little Jimmy Dickens

Only in Cape Canaveral do you find a peacock at the circle K dumpster.

Safety in the market

To show you how you can feel more safe in today's market, we have a friend and client who was able to buy a 3/2 condo on the ocean in January 2011 for $249,000.  This unit has 1804 square feet on the 4th floor with great ocean to river views.  Granted they have done a lot of upgrades on the unit and now it shows great.  When I do a CMA on just the 2 adjacent buildings I come up with a market value of between $310,000 and $345,000.  This was achieved by knowing the market value and some intense negotiations.

Always have your agent perform a CMA before starting negotiations and you will know what you should pay as top end price and try to get it lower.  I know the market is coming back but we are still in a down market.  

Make wise choices

Jim Bagwell

"Money don't get everything it's true"

"What it don't get, I can't use"  The Beatles before their spirtual journey

Some lenders are now requiring associations to certify that they are not renting out units for less time than docs specify.  This came about with the new law that allows condo associations to file leins, foreclose and collect rent on the units that are not being paid for by the owners.  Some associations have taken this to mean they can rent for any time period.   Not True!

So far in 2013 there have been 33 oceanfront condos sold that feature at least 3 bedrooms and 2 baths.  Interestly enough none of these have been new construction, I expect to see new buildings soon although the 45' height restriction in Cocoa Beach makes it more difficult.  I would like to see this restriction relaxed a bit.

The sold units have included several newer constructed buildings like Solona Shores and The Meridian but most were built in the late 70's and early 80's.  The 33 units sold closed for an average square foot cost of $211.68.

Our listing in Windrush is a 3/2 SE corner with good views, going by the square foot cost, it would put this unit at $343,550.  It is listed at $342,500.  The only negative feedback I have received is the tile in the unit.  It would be wise to make an offer allowing for tile replacement.

View from Windrush 201, call to see this unit.

Jim Bagwell
   

"Now the race is on and here comes pride up the backstretch"

"Heartaches are going to the inside"  George Jones; the man, the legend, the possum!  I still love you Tammy

I hope everyone enjoyed the boat races over the weekend.  I know this brings in a lot of revenue to the city but I find it boring to watch.  Miss Geico is so much better than all the other boats that it broke down but was so far ahead it got one of the engines started and still won the race.

Ada and I walked down and saw the classic car show and I found that to be very cool.  They do a very good job with a lot of cars and it has to be a windfall for the resort and Mamba's was packed.

There is now a new listing in The Diplomat.  It is in the front buildings and shows very well, they used the kitchen bar for dining so it shows bigger than 750 square feet.  Listed at $125,000 so the price is priced well.

Jim Bagwell

"See Jamaica, the moon above"

"It won't be long, me see me love"  The Kingsmen
I am sure we all made up our lyrics for this song.

Not much new in our complexes; The 2100 unit on the 12th floor, NW corner has been reduced to $475,000.  Now I know for $475,000 with 2/2 and 1600 square feet this unit is still overpriced but it is a very nice unit with incredible views of city, river and ocean.

Windward East is now an officially approved complex with Wells Fargo.

There is a new listing in south Cocoa Beach that is a townhome on the river side.  This unit was built in 1985 and is a walk across A1A to the beach with river access at the west end of the street.  Priced at $199,900 with 2 bedrooms 2 1/2 baths and 1284 square feet and no HOA fees.  Tell someone you know, close to great surf and fishing.

Jim Bagwell

"Tin soldiers and Nixon coming"

"We're finally on our own"  Neil Young  Neil wrote this song Ohio in one hour after the Kent State fiasco.

The market is getting better!  Buyers could be missing out.

As of this writing there are presently 18 foreclosures on the market in Cocoa Beach & Cape Canaveral.  These units are priced from $34,900 to $309,900.  The highest priced unit is in Sandcastles which is a weekly rental complex but this unit is probably a bit overpriced for a foreclosure.

In addition there are 4 short sales on the market.  These units are priced from $155,000 to $400,000.  When listing a short sale you should price the property at market value since until you get an offer you really can't negotiate with the bank.

So far this year there have been 44 foreclosures sold and these units range in price from $20,000 all the way to $236,555.  In addition there have been 18 short sales that have closed, priced from $22,000 to $515,000.  The highest priced unit was in the Meridian which is a great complex with the best pool on the beach.

It is getting better after all!

Jim Bagwell

Bye Bye Birdie

This crane flew in for some fajitas on Cinco de Mayo but couldn't open the grill.  I wanted to give him a jalapeno but Ada said no.

It has been a rather busy May with 23 new condo listings and 14 sold condos.  There are now 7 active listings in our 4 complexes with 3 in Windward East, 2 in Windrush, 1 in 2100 and 1 in The Diplomat.   The foreclosure in the front building at Windrush is under contraact with a list price of $125,000.  Unit 408 in Windward East is still available and now the furniture has been removed with fresh paint, shows much better with a list price of $235,000.

There is a new foreclosure listed in Coral Sands in south Cocoa Beach that is a direct ocean unit with 3 bedrooms 2 baths and 2104 square feet.  This is a corner unit on the 2nd floor and listed at $249,900.  This won't last long.

Enjoy your Sunday and check in with your Mom.

Jim Bagwell

Office in the islands

I always wanted a office in the islands just not this way.  That was some kind of rain.

Nothing new in our complexes.  The lack of inventory has affected the rental market as well as sales.  There are very few rental properties to choose from on the beach.  There are becoming an increasing number of fannie mae properties on the market with homepath financing available with as little as 3% down.  A great idea for the single person or couple.

We don't see much new construction as far as single family home on the beachside since there is not much land left to build.
There is a new home just finished on Bali rd in Cocoa Beach that is now available for $539,000.  This home has all the upgrades with 3 bedrooms 3 baths and 2397 square feet.  Home also features a 3 car garage and a natural coquina seawall on the canal.  It is worth a look.

Jim Bagwell 

"Buy land, they're not making anymore"

Mark Twain Never more true than on the beachside.

Our partner has listed a house on the Banana River in south Cocoa Beach.  The property does have a house on the property with a detached garage.  We are marketing the property as land value only.  The property is .39 acre on the river and could be the site for a wonderful Key West style home with a detached garage.  Priced at $279,000.

In 2013 there have been only 5 vacant land sales on the beachside.  Walker Bagwell Properties have closed 3 of these.

As of this writing there are now only 8 active listings in our 4 complexes.  In 2013 there have been 5 units closed with 1 in Windrush, 1 in 2100 Towers and 3 in The Diplomat.  We hope to close unit 208 in Windward East very shortly as it is under contract.

Looks like more rain today, it is hurting my golf game.

Jim Bagwell