Cocoa Beach Bunnies

This is a true beach bunny. He lives in the dunes between my back door and the ocean and ventures out into the back yard daily for a little snack of St. Augustine grass. You can see a blade in his mouth in the photo above. He is actually a marsh rabbit, a smaller darker version of the eastern cottontail rabbit with strong swimming skills. Marsh rabbits have shorter ears and no cottontail. This guy or one of his relatives strolled into my living room one evening when I had the door open. Just another in my long list of reasons why I love this town. Now on to this week's train wreck.

I was looking at a foreclosed river condo yesterday. As always, I investigated it's sales and listing history. What I found was not pretty. This particular unit sold new at the peak of the hysteria in June 2005 for $429,900. It was resold in June of 2007 for $344,000 and is now for sale once again for $254,900 by Fannie Mae, the less-than-enthusiastic new owner. That is some serious evaporation of wealth with the pain spread among the previous owners and lenders. At the new price, this unit is priced at $124 per square foot, approaching replacement cost. I predict that it will sell quickly. Hopefully, the new owner will get more enjoyment of this unit with a beautiful river view than the previous unfortunate owners.

Another interesting couple of sales recorded this month in Chateau by the Sea. Both units were owned by the same seller and both were offered as short sales . One unit closed for $323,000 and, three weeks later, the slightly smaller unit next door in similar condition closed for $390,000. Somebody got a raw deal. I can't say this enough, people. Do your homework or work with a good buyer's agent who will do it for you. Question everything. There are good deals going down almost daily but there are also buyers paying too much who could have saved thousands of dollars by doing some research.

Two Waters Edge three bedroom units on the ocean sold this month. Both were in great shape, one on the forth floor and one on the second. The forth floor sold for $348,000 and the second floor much-nicer unit is scheduled to close soon for slightly more. Click here for a slide show of one of these units. This is what the mid-$300s will get you in Cocoa Beach these days. Until next time, keep your hand firmly on your checkbook and question everything you read about the housing market.

Make me an offer....please!

I show dozens of properties in Cocoa Beach and Cape Canaveral every week to prospective buyers. I screen for available properties that fit the buyers' criteria and then sort for best value among the fits. Some can't be shown for various reasons; uncooperative tenants, incomplete or incorrect directions, keys elsewhere, and on and on. The ones that actually get shown inevitably generate a few phone calls from the better of the listing agents asking for feedback. Here's a typical call;

listing agent, "Larry, just calling to get some feedback on my Best Condo in the World listing that you showed Saturday."

me, "It's a beautiful unit. The Rockefeller's loved it except for the price. The comps are telling us that it's over-priced by at least $80,000."

listing agent, "Well, bring me an offer."

me, "Sorry, with a price so far out of the game my clients don't want to waste their time with an unreasonable seller. They chose to offer on another unit in the building that is priced closer to recent sales. I appreciate the call."

Lesson for sellers: Pricing way too high and praying for an uninformed buyer is only hurting your chances with the active buyers who are informed. Get real with your price and you have a good chance of selling.



Condo sales, though increased in the last month, continue to lag last year's numbers. Through April there were 127 closed condos sales in Cocoa Beach and Cape Canaveral compared to 153 in the same period last year. Of the 39 closed sales in April only four were for more than $400,000. A full half of those condo sales were under $200,000. Inventory of properties for sale is shrinking in all categories except for over-$500,000 condos. Supply in that troubled sector of the market continues to creep upward while sales are plodding along at the brisk pace of about one every two weeks. Sellers of luxury condos take note.

MLS inventory May 14, 2008 Cocoa Beach & Cape Canaveral

Condos, all prices_____798
over $500,000________119 - 11 sold since New Year's Day
Single family homes___131
over $500,000_________46

Welcome to the new readers in Portugal, Algeria, Pakistan, Jordan, Macedonia, Albania, Latvia, Dominican Republic, Cayman Islands, Curacao, Bermuda, Cuba and Venezuela. I would love to hear from you and what your interest in Cocoa Beach is.

"Putts get real difficult the day they hand out the money."
Lee Trevino

Ch-ch-ch-changes

In the ever changing landscape of south Cocoa Beach, another landmark is gone. After eighteen years, Natural Art Surf Shop has closed it's doors and morphed their operation from a bricks and mortar hangout and popular weekend contest venue to an internet only retailer. Their boards and products can still be found online at NaturalArt.com and I suppose the weekend contests can still be held if the eventual new resident will tolerate the surfers' cars. I'll see you in the water.

I'd like to sell your condo, but ...

Wonder why your condo hasn't sold? Here is my list of top five reasons you're not getting more showings.

Reason Number 5: Poor MLS photos. If a condo has a good view, there had better be a photo of the actual view in the MLS listing. Absence of a photo of the view suggests that there isn't one. Many condo buildings have units with views and units without a view. Unless the buyer's agent knows the layout of the building, she may skip over your listing because your listing agent didn't include a photo of your view. Also, low-res cell phone photos can make your condo look just bad enough to not make the cut.

Reason Number 4: "Appointment required." With many properties vacant and easy to show, having to pin down a time that is convenient for the tenant or owner to show the property is just enough of an impediment to kill some showings especially if there are similar properties that are vacant.

Reason Number 3: Buyer's agent can't get showing instructions. Try calling your listing office next Sunday morning or even next Saturday morning. These are the two busiest showing days and also, remarkably, the days that many real estate offices choose to open late or not at all. I often have last minute additions on showing days and find myself calling Saturday and Sunday mornings for showing instructions from the listing offices. If the office is closed and your listing agent didn't include his cell phone number in the listing, 'Voila', no showing.

Reason Number 2: Keys in listing office. If your listing office chooses to keep the keys in the listing office rather than spending the money on a lockbox, the time required to pick up and drop off keys may be just enough of a hindrance to push your neighbor's property with a lockbox into your slot on the showing list. I know that sometimes it is impossible to place a lockbox but some offices never provide one.

and

Reason Number 1 your condo is not getting any showings: Your price is too high. None of the juicy rationalizations that you keep repeating to yourself matter to the buyers. Our market is in decline and buyers demand (rightfully) a price at least at the last comparable sale or lower. If you're not priced close to that number, you're not in consideration.

On a side note; if you're priced above $500,000, don't expect many showings no matter what you do. Only eight units above $500,000 have closed since January 1. You had better be priced aggressively and do everything right if you're competing in that market segment.

If you can fill the unforgiving minute
With sixty seconds' worth of distance run,
Yours is the Earth and everything that's in it,
__________________Rudyard Kipling

Film Saturday April 26, Newport Beach

Great Expectations

A few notable recent deals from the MLS;

The view over the islands above is from a top floor (4th), direct river, 1308 sq.ft. 2/2 Harbor Isles with private garage that was stolen for $210,000.

How about a new 3rd floor northeast corner at Michelina in north Cocoa Beach, 3/3 with 2184 sq.ft. This particular unit has been on and off the MLS for over 900 days and was re-listed most recently in February 2007 with an asking price of $1.25 million. Closed a few weeks ago for $598,500, less than half the asking price of just one year ago.

A 2/1 furnished Diplomat unit that had been on the market for 647 days starting at $229,500 asking price finally sold for $112,000, another 50% plus haircut.

A furnished 2/2 Cape Shores sold in just 24 days for $115,000 after being listed for $121,900. Price it right and it will sell quickly.

A 902 sq.ft., upgraded, 1/1 ground floor, direct ocean, fully furnished unit at Windward East sold for $155,000. Folks, that was a deal. Came with a garage.

MLS inventory April 23, 2008 Cocoa Beach & Cape Canaveral

Condominiums_______823 - 106 sold since New Year's Day
over $500,000________116 - 8 sold since New Year's Day
Single family homes____135
over $500,000________50

"As God is my witness, I thought turkeys could fly."
_________________Arthur "Big Guy" Carlson

Your Money or Your Life

An uncrowded recent morning in Cocoa Beach.

[ I'd like to thank Doug Heddings of the True Gotham real estate blog for the kind words and for selecting this post for this week's carnival of real estate. ]

One afternoon this weekend, I selected a Gurkha Legend Aniversario Perfecto from the humidor and sat down on my front deck to unwind and enjoy the show of the approaching thunderstorm. My mind, as it often does, wandered to considerations of the dynamics of our current market. I had to pull my rocking chair back from the edge of the upper deck overhang as the rain moved in. The clouds, as they moved overhead, defined the edge of the front like overlapping watercolors. As the thunder boomed, the echoes rolled from south Cocoa Beach off into the distance to the northwest. The osprey across the street continued to hunt for fish, seemingly oblivious to the rain as it swept in across the Banana River from the west. At that moment, I realized how much the nature of my life in Cocoa Beach is directly related to the exact spot where I live. My experience of the storm would have been completely different in another place or might not have happened at all. I chose the location of my home very carefully. I knew before I bought, exactly where I wanted to live and why. For buyers of property in Cocoa Beach, location may be more important than they think. Thinking more about this I realized that buyers' motivations fall into two main groups; investment and lifestyle, or, more simply, their money or their life.

For buyers who plan to live in their property, location is of maximum importance. For those who plan occasional personal use, location is still important. Those who are buying strictly for investment have the luxury of pursuing the absolute best deal they can find across all areas. If you're looking to buy it would be a rewarding exercise to decide where you fit in the gradient between exclusive personal use and pure investment and then to target your areas accordingly. Your income in an oceanfront condo will be higher in a weekly rental building but your personal time in a weekly rental building may be less of a reflective beach experience than you were hoping for. If you want action when you're in town, you probably don't want to own in my part of the beach. Likewise, if you want serenity, the view over a beach crowded with people may be less attractive to you. Talk to your agent about the differences in the areas where you are looking and do your best to define the things that will be important to you when you own your place in this special part of Florida. You can probably find a deal in the area or building that fits you best but it may cost you a little more for the perfect spot. Make your choices carefully. It's your money or your life or an acceptable compromise of the two.

"Go confidently in the direction of your dreams! Live the life you've imagined."
Henry David Thoreau

The 70% Coincidence

The human body is about 70% water. 70% of the earth's surface is covered by water and, remarkably, Cocoa Beach, according to Wikipedia, is about 70% water with over 10 square miles of water. For a waterman like myself, this makes for a very big playground. The aerial shot below demonstrates the land/water makeup of this special little town by the sea. As I write this on April 2nd, the temp is 72 degrees with a light east wind and sparse cotton ball clouds with a decent head-high ground swell that has been hanging around for going on two weeks now. The locals are very content these days.



"Coincidence is logical."
Johan Cruijff

One last piece of useless 70% info; Exactly 70% of the 82 condos sold so far in 2008 in Cocoa Beach and Cape Canaveral sold for less than $256,000. There has been a lot of activity in the last couple of weeks. I'll report on notable closed sales and deals in my next post. Welcome to the new readers in Sweden, South Korea, Japan, Java, Belize, U.A.E., Panama and Columbia. I'd love to hear from you and why you're reading this blog about Cocoa Beach.

"Surfing, alone among sports, generates laughter at it's very suggestion, and this is because it turns not a skill into an art, but an inexplicable and useless urge into a vital way of life."
Matt Warshaw