Buying?…Check into Insurance Early!

I had quite an interesting week helping my client find homeowner’s insurance for a home he is purchasing in Pensacola. The home was built in 1976. It was in really nice shape and you could tell the owner took care of the home.

A 4-point inspection was done since this report is now required for older homes for homeowner insurance. The home inspection and the 4-point inspection showed the plumbing had been updated and the HVAC unit was 19 years old, but was working fine. There were some comments about some rust on the exterior of the hot water heater which was located in the garage.

What a surprise we had when getting quotes for insurance! We found that Citizens would insure the home, but the premium was twice the price. The other companies said they would insure the home, but within a short time after the purchase, they would send out their own representative to inspect the home and if they felt the HVAC, water heater, plumbing, electric, roof, etc… were problems, that the home owner would have to repair or replace immediately or their insurance would be dropped.

I asked why and I was told that if theses items were close to failing because they were at the end of their life, it could be a labiality for the insurance company. These items could cause water or fire damage.

We did find insurance and did had a happy closing. The buyer also paid for a home warranty from First American Home Warranty Corp. that will cover the concerns of the HVAC, water heater and plumbing. If any of these fail due to due to normal wear and tear, First American Home Warranty Corp. will replace them.

When looking at older homes, either make sure the roof, electric, plumbing, hot water heater and HVAC have recently been updated, or prepare to take care of it within 30 days of your purchase.

Gulf Breeze Fl Sales 2011

Low interest rates and high inventory provide may opportunities for many home buyers. Below are the sales for the Gulf Breeze area for the month of June 2011.

 There were a total of 35 homes sold in the month of June.  Out of these, 24 were normal sales, 5  were short sales and  6  were foreclosures.  Currently there are 79 contingent and pending sales waiting to close!  As you can see, people are getting off the fence and buying real estate. 

 Current inventory is 410 active listings or 11.71  months of inventory. 

 

 Sold Gulf Breeze Proper Area

153 Kevin Dr. 

305 Navarre St.

401 Shoreline Dr.

301 Sunset Blvd.

 

Status	Total	Avg Price	$/Sqft/Acre	Median	Low	High	Avg DOM
SLD/RNT/LSE	4	$173,375	$91.78	$178,500	$86,500	$250,000	115
Total	4	$173,375	$91.78	$178,500	$86,500	$250,000	115

 

Sales Oriole Beach Area

3201 Laurel St.

3361 Laurel Dr.

3190 Laurel Dr.

1151 Lionsgate Ln.

4024 Longwood Cir.

997 Coronado Ct.

949 Vestavia Way

1375 Players Club

3858 Saber Tooth Cir.

 

Status	Total	Avg Price	$/Sqft/Acre	Median	Low	High	Avg DOM
SLD/RNT/LSE	9	$207,461	$91.60	$160,750	$84,900	$470,000	170
Total	9	$207,461	$91.60	$160,750	$84,900	$470,000	170

 

 Sales North Oriole Beach Area

1386 Sanibel Ln.

3170 Auburn Pkwy

1368 Stanford Rd.

3363 El Portal

1614 Stanford Rd.

2821 WhisiperOaks Dr.

1566 Oakhill Rd.

2395 Reservation Rd.

2367 Reservation Rd.

2531 Meek St.

2679 Edmund Dr.

 

Status	Total	Avg Price	$/Sqft/Acre	Median	Low	High	Avg DOM
SLD/RNT/LSE	11	$198,571	$87.74	$130,000	$66,000	$560,000	104
Total	11	$198,571	$87.74	$130,000	$66,000	$560,000	104

 

Sales Soundside Area

1925 Justice Cir.

5546 Peace St.

6439 Heronwalk Dr.

2048 Bright Water Dr.

1975 MelissaOaks Dr.

1939 Elodie Ln

 

Status	Total	Avg Price	$/Sqft/Acre	Median	Low	High	Avg DOM
SLD/RNT/LSE	6	$144,400	$83.17	$152,450	$74,000	$203,000	87
Total	6	$144,400	$83.17	$152,450	$74,000	$203,000	87

 

Sales Waterfront

4255 Soundside Dr

1651 Kalakaua Ct.

1086 Harbor Ln.

3774 Bengal Rd.

5117 Soundside Dr.

1082 Seabreeze Ln.

 

Status	Total	Avg Price	$/Sqft/Acre	Median	Low	High	Avg DOM
SLD/RNT/LSE	6	$393,750	$128.44	$420,000	$220,000	$600,000	286
Total	6	$393,750	$128.44	$420,000	$220,000	$600,000	286

Buyers and sellers in the Gulf Breeze,Pensacola,Navarrearea, especially in this current market, have different priorities.  Nancy Grogan, with Remax on the Coast thrives on meeting your needs because nothing is more rewarding than a satisfied client because owning a home in the Gulf Breeze, Pensacola, Navarre, Florida area is a wonderful place to live and raise a family.  See Homes For Sale at www.PensacolaCoast.com

 

 

Have we Hit Bottom?

I read an article today about the future double dip that we are to expect in home prices. According to this article from DSN news:

The S&P/Case-Shiller home price index confirmed a double-dip in home prices across much of the nation as Standard & Poor’s national reading fell another 4.2 percent during the first quarter to hit a new recession low.

One economist notes that prices have now fallen by more than they did during the Great Depression. On that occasion, the peak in home prices was not regained for 19 years. The widespread view is that with over a quarter of all mortgages underwater and 6.3 million homeowners either delinquent or in foreclosure, home prices have not yet hit bottom.

What these reports don’t mention is that real estate is local. That means our area could be doing fine and seeing appreciation and the area 50 miles away, could still be sliding down. I am not economist, but I am out seeing homes daily. Listing homes or negotiating offers. In our area, I am seeing buyers willing to pay for a quality, well kept home. We are using comparables of past sales to establish price and are fortunate enough not to have to use distressed properties for these comps.

Even though short sales may sometimes be a better deal, they are still taking a minimum of 4 months to complete and there is no guarantee that the bank will agree to sell. Sometimes it is a long wait for nothing.

There is plenty of inventory for buyers with good credit. With a lot of inventory, buyers can be choosy. They don’t want to do flooring, paint, landscaping. They want a newer kitchen, the latest colors. They want a home that shows pride of ownership. They want location and are willing to pay a fair price.

When great homes hit the market, and are priced at market value, they don’t last long. They sell and they sell for more money than they would have last year. That tells me we have past the bottom and are moving forward to recovery. Of course there is still a road block. Appraisals are done from comparables from the past. The appraisers are watched so closely, most are turning in appraisals that are very conservative and unless the value is met on the contract, there may not be a sale. Lenders will not loan on a home that is appraised for less than the purchase price. If the realtor feels there was a mistake with the appraisal, they may contest it.

How long will it be until we are at 2006 boom prices? I bet quite a while but for now, I am just thankful our area may soon see the light at the end of the tunnel.

Selling? 5 Things To Think About Doing

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