How much more should a buyer expect to pay for an upper floor condo
unit than a ground floor unit? Depends on the complex and the impact on
the view but the move from the ground floor to even a 2nd floor
identical unit typically costs more than $10,000. Ground floor units in
all buildings will typically sell for a discount to the higher floor
units, even in buildings where there is a decent view from the ground
floor. There has always been more demand for units above the ground
floor and the higher selling prices support that. In some cases there
may be another premium for higher floors associated with the view
opening up by getting above a neighboring obstruction. Example are the
Constellation where above the third floor, the view from the west
balconies opens up to include the three mile width of the Banana River
and Merritt Island in the distance or Ocean Paradise where the north
view opens up only at the third floor.
Hints for prospective buyers:
Relying
on unit numbers to filter out ground floor units can be faulty as some
buildings with a garage on the ground floor start numbering units on the
actual 2nd floor with misleading numbers like 101, 102.... Example:
Meridian, Magnolia Bay and many others.
For persons or
families who will be spending lots of time on the beach, the easier
access to the beach off the patio may trump the better view of a unit
separated from the beach by stairs or an elevator. Fishermen, surfers
and kids seem to prefer the easier access of the ground floor.
________________________________________________________________
A
quick story about banker insanity. I mentioned in an earlier post that
foreclosures aren't selling as quickly as they were just a year ago
because of the banks' increasingly optimistic, often-insane asking
prices. Let me illustrate that insanity. A ground floor unit at the
popular weekly rental complex, Cape Winds, failed to attract a buyer
after being offered for five months as a short sale for $89,900 in late
2012 and early 2013. It was withdrawn the end of February last year and
the bank foreclosed. Fannie Mae put the unit back on the market in May
and increased the asking by $52,000 to $141,900. Not surprisingly, there
was no interest at that price either. They began a series of price
reductions until they got to $109,900 where they dug their heels in.
Still no interest so the property went to auction last month. At the
auction the bidding got to $75,000 which wasn't enough to satisfy
Fannie's reserve and the bid was rejected. It went to auction a second
time and the bidding peaked at $74,500 which was also rejected by
Fannie. They held a third auction and the high bid was $64,354. This
time Fannie Mae accepted the bid and the property closed last Friday.
Bankers
aren't the only sellers with unrealistic expectations but they are the
most consistent. Whether a seller is a bank or an individual, if the
property isn't selling, it's probably because the price is too high.
Sellers of the 71 properties in Cocoa Beach and Cape Canaveral that have
been on the market for over 300 days, are you listening? Get real and
you'll probably find a buyer.
There are 319 condos for
sale this morning in the two cities and 72 single-family homes. Of
those, 39 are bank or relo company owned and nine are short sales. Over
100 have been for sale for more than six months, 58 of those for over a
year.
"The difference between reality and unreality is that reality has so little to recommend it." __Allan Sherman
