Tuesday, January 23, 2018
No, your computer problems weren't caused by Russian hackers and the listing agent did not lie about another offer to trick you into paying more with a bogus call for best and highest. With the critically low inventory it is safe to expect any desirable property priced within the ballpark of fair value to receive multiple offers. It is also safe to assume that another buyer faced with the same tiny inventory might consider paying over what you think is fair current value. What you should consider paying is up to you. Whether negotiating as the only buyer or making your best and highest in a multiple offer situation, it is a worthwhile exercise to estimate what the cost of buying later might be.
Example: A nice unit at Harbor Isles in Cocoa Beach is listed for $300,000. Comps suggest that $280 to $295 is probably in the range of fair current value. The unit satisfies all my criteria. It is the only unit in Cocoa Beach currently for sale that does satisfy my criteria. I prepare an offer and am told by the listing agent that there is another offer and both buyers' agents are asked to bring their best and highest offer. I had already decided that I would be willing to go as high as $295,000 to get this unit. Based on that, I submit my best and highest offer of $295,000 only to miss out to the other buyer who offered $300,000. I continue looking for another suitable unit but with the very skinny inventory am unable to find something that appeals to me. Finally, months later, an almost identical unit is listed in the adjacent building asking $320,000. We now have the previous unit as the best comp at $300,000.
Takeaway for prospective buyers: Make an effort to know the range of fair value for the properties you're interested in and be realistic with the offers you make knowing that the low inventory is always looming. Holding out for a "deal" may leave your search open-ended.
Three weeks into the new year and the 2018 snowbird season is throttling up with a vengeance. Probably due in part to the fact that everything north of the Florida line has been frozen tundra since December. New listing activity has been strong with 80 new units listed this month so far. Sales activity has been brisk as well with 48 units going under contract since January 1, seventeen of those just listed since New Years Day. That leaves us with a total of 194 existing condo and townhouse units available in Cocoa Beach and Cape Canaveral this morning. How is our bread and butter oceanfront inventory? Looking for a direct ocean unit with at least two bedrooms and two baths asking less than $400,000? There are six. Don't want ground floor? Now there are four. Must have a garage? We have a grand total of three units. It'll be a short day.
I'm happy to help those who are hoping to purchase in our area. If you'd like the benefit of my experience and knowledge of this market, shoot me an email or call. I'll do my best to help you find the perfect beach place at the best possible price.
"The direction of escape is toward freedom. So what is ‘escapism’ an accusation of?" ________Ursula Le Guin