This is one insider's unpolished take on the current state of the Cocoa Beach and Cape Canaveral, Florida real estate market. I am a licensed agent and partner with Walker Bagwell Properties. My sometimes blunt opinions here are not welcomed by the real estate mainstream. Whatever. Hopefully my insights will allow you to make better decisions about your participation in this market.
Larry Walker - 321.917.5786 - email@example.com
Wednesday, October 18, 2017
Into Each Life Some Rain Must Fall
Real estate activity has resumed at its typical fall pace since the hurricane with 49 condos and townhomes and nine single family homes contracted since the storm passed. Inventory remains very low with a high proportion of optimistically priced offerings. For instance, $413 per square foot for a 32 year old 2/2 oceanfront condo in mainly original condition or $309 a foot for a 44 year old 2/2 unit with a tiny oceanside balcony and Formica countertops. Neither of these unremarkable units has a garage.
About price per square foot: It is not an exact metric for determining value but is a good starting point. If other 30 to 40 year old units without garages of approximately the same size and condition with a similar view are selling for $250 per square foot then my unit is very unlikely to command $400 or even $300 a foot no matter the depleted inventory. High demand and low supply contribute to rising prices but they rarely induce buyers to pay way above fair value. Finding an agent willing to take an overpriced listing, however, is easy. Agents will take unsaleable listings with the hope that the seller will eventually come to their senses but even without an eventual price drop the listing has value for the agent. Buyers who inquire about the overpriced listing can be shown other fairly priced offerings. An agent's willingness to accept a listing at an unjustified high price is not confirmation of the possibility of getting close to that number. The agent may just be seeing the listing's potential as a good lead-generator. I'm looking at you, side view Cape Canaveral condo in original condition without a garage asking the same outrageous $305 per square foot since last December. Drop the price by 20% and I'm guessing a buyer will materialize.
"How's a beer sound, Norm?"
"I don't know. I usually finish before they get a word in." __Norm Peterson
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That must be a Canaveral Towers unit lol, they aren't much negotiable on price either. It's one of those units that are on the market but not really.ReplyDelete
You have to wonder what sellers like that are thinking. They have decent equity if sold for fair value. I could understand if they were maxing out rental income but they aren't. The owner is an agent so perhaps knows more than the public.ReplyDelete
Yes the owner is an out of state agent and handles his own rentals too from what I understand. It has a nice side view but it's pretty much original inside!ReplyDelete
Thansk for sharing..ReplyDelete
So I should consider selling my 3/2 in Snug Harbor yet?ReplyDelete
Depends on what you plan to do with the money. Prices are continuing to rise slowly so your house will likely be worth more a year from now. If you plan to buy another property in this same market it is going up in value as well.Delete