Tuesday, April 16, 2013

From the Trenches, April Halfway

After blowing the doors off in March, the property market in Cocoa Beach and Cape Canaveral continues at a blistering pace in April. As of tax day yesterday 32 condos and townhomes had closed in the two towns according to the Cocoa Beach MLS. Of those 32 not a single one was a short sale. Three were foreclosures, all under $80,000. Almost half of those sold, 14 units, sold in less than 30 days on the market. There were multiple offers on several.

The high end of the range continues to be strong with two units closing at the oceanfront Meridian for $725,000 and $685,000. A 3rd floor direct ocean unit at the Constellation in south Cocoa Beach closed for $459,900. A 4th floor direct ocean Spanish Main weekly rental 3/2 closed for $323,000. Other weekly rental units closing included two 2 bedroom units at Cocoa Beach Club for $195,000 and $200,000, a Diplomat 3rd floor direct 2/2 that sold for $198,500 and a Royal Mansion first floor 1/1 that sold for $110,000.

In other oceanfront buildings a Marko Villas top floor 3/2 and a Sea Oats 2/2, 2nd floor direct closed for $287,500 and $255,000 respectively. A ground floor Windrush direct ocean NE corner 3/2 with 1623 square feet and garage sold for $193,000. A fully furnished 3rd floor south facing Ocean Oaks 1 bedroom 1.5 bath with garage sold for $175,000. Another one bedroom unit, this one a nicely remodeled 5th floor at Ambassador Shores in south Cocoa Beach closed for $164,000. No garage. A nicely remodeled NW corner facing Beach Villas 1/1 with a nice ocean view in south Cocoa Beach closed for $92,000.

A newer Harbor Isles lakefront 3/2 with 1401 square feet and two garages sold for $152,500. A remodeled top floor corner Treasure Island Club sold for $250,000 after 17 days on market. Three bedrooms two baths, 1827 square feet and open parking.

There were also sales in Rock Pointe, The Saturn, Villages of Seaport, Bayside, Ocean Woods and Atlantique among others. The trend remains the same; fewer days on market, lower inventory, higher percentage of asking price realized and multiple offers for the good ones. As always, cash offers are better received than those with financing contingencies.

I have been and am currently involved in short sales in complexes with first right of refusal. This is a tricky situation. The exact procedure varies but owners in a first right condo complex have the right to take a contract away from an outside buyer and buy it themselves at exactly the same terms as the original contract. This first right offering usually happens as soon as a seller accepts a contract. With a short sale, the seller signs an offer not knowing whether the bank will actually accept the offer. If it is put out to the owners before sending to the bank, an owner exercising their first right might find themselves in a situation with the bank asking for more than the contract. Should that owner accept the bank's counter, in some situations that new contract would have to be put out for first right again.

An even bigger problem involves transfer of short sale approval to a new buyer. If a listing agent doesn't put the contract our for first right until short sale approval is received from the bank, the bank may refuse to allow a new buyer to substituted for the original buyer. In this situation, the first right negotiations with the lender have to start over at square one. I am involved in exactly this situation right now and it is bordering on insanity with all involved losing. I'll cough up the details in a future post after the smoke has cleared.

I've forgotten how to worry
And I don't know how to run
Against the odds I realize
This struggle could be fun!
          __________The Clash