Eight homes have sold in eight weeks on Boca Grande for more than $2.5 million each and at an average price of $3.25 million.

It is the culmination of a trend that began late last year as high-end buyers got tired of waiting and began springing at perceived bargains up and down the tiny barrier island, says Bob Melvin, a veteran agent who co-owns Gasparilla Properties.

“They were all true beach properties — all of similar good quality and well maintained,” Melvin said. “On an island this size, once you have three or four sales on the beach, it changes the entire market.”

Flash back to the beginning of the year and there were 25 high-end beachfront homes for sale on Boca Grande, Melvin said. Now there are only 12, a 52 percent drop.

The way Melvin describes it, sales have fed on themselves. The same group of people has been looking to buy on the exclusive island since the height of the boom, and once they see one person buy, they get more anxious about buying themselves.

“They figure that if we’re not at the bottom, we’re near the bottom, and if they don’t act they will have to pay more for something they will either need to remodel or tear down and build from scratch,” Melvin said. “There’s also an age factor at work. A guy who is 62 and has been looking for three or four years doesn’t want to wait anymore.”

Even condominiums, which have not sold as well as single-family homes, are starting to find buyers, Melvin said, and construction is just about to pick up.

The same trends are affecting other markets throughout Southwest Florida, agents say. Anna Maria Island has been on a tear for several years. There are 14 high-end homes under construction on tiny Bird Key, and Lakewood Ranch has sold 18 homes in its Lake Club subdivision so far this year at an average price of $1.2 million.

Agents say these areas have been the first to rebound from the Great Recession because they are among the most desirable properties in the region.

An historic playground of the wealthiest families in America, Boca Grande also was less affected by the recession to begin with.

Barron’s magazine recently ranked Boca Grande as the third best place to buy a home in the U.S., behind Palm Beach and Aspen.

“That’s because homes here maintained their value better from peak to trough,” Melvin said. “Our homes only declined 18 percent, which compares to 40 to 50 percent on other barrier islands.”

Boca Grande also benefits from the Gasparilla Inn, Melvin said, which allows younger families to visit and build up the desire to buy.

“As the Inn goes, so goes the island,” Melvin says. “It may be too slow for the flashy gold chain crowd, but it allows younger people to see what a family-friendly place this is.”

Melvin said the real estate market started to recover in 2010, but the BP oil spill caused it to clam up.

“They pulled the plug on real estate negotiations,” he said. “But things started getting better toward the end of 2010.”

So far this year, Melvin’s company has sold nearly $100 million in real estate — with the highest price being a house at 341 Gilcrest Ave. that went for $6 million at the end of March.

Since then, Gasparilla Properties has sold 27 homes from more than $1 million each and is poised to close nine more totaling $25 million. The largest of that group is a house at 677 Boca Bay Drive with list price of $9.995 million.

“Up and down the length of the island, the inventory is getting pretty picked over,” Melvin said. “The numbers don’t lie.”

Island Real Estate broker Larry Chatt explains statistics, and property inventory on Anna Maria Island as of May 2011.  Transactions are up, inventory is down, and the demand for real estate on the Island is excellent. 

Island Real Estate has 10 fulltime real estate agents to help you with your real estate or vacation rental needs.  Whether it’s for vacation, or a lifetime contact Island Real Estate for your piece of paradise!

According to a new study done by the University of Florida the permanent resident population of Florida has increased by almost 3 million since 2000.  Florida’s growth rates over the past few years has been among the lowest in Florida’s history, and is expected to decline steadily through 2040.

“Growth rates varied considerably during the decade, not only from county to county but also from year to year,” says Stan Smith, director of the Bureau of Economic and Business Research at UF’s Warrington College of Business Administration.

“Fueled by an expanding economy and a booming housing market, population increases from 2003 to 2006 were among the largest in Florida’s history. As economic growth slowed and the housing market cooled later in the decade, population growth declined as well, reaching its lowest levels in more than 60 years.”

From 1970 to 2010, Florida saw annual population increase of approximately 300,000. The projected annual growth is 252,000 for 2010 – 2020 and 255,000 for 2020 – 2030. The projection drops for 2030 – 2040 with an annual growth of 220,000.

“Jobs are a major reason people come to Florida,” Smith says. “But Florida lost about 1 million jobs from 2007 to 2010. As the economy recovers, population growth will increase as well.”

65 of Florida’s 67 counties gained population during this past decade. 4 of those counties grew by more than 50%, and 20 counties grew by more than 20%.  Some of the largest population increases over the past decade occurred in Orange County, Miami-Dade County, and Hillsborough County.  Flagler and Sumter counties experienced the fastest growth in the state.  Flagler County’s population was 49,832 in 2000, and now according to 2010 Census data, Flagler County’s population has grown to 95,696.  Sumter County’s population in 2000 was 53,345 and hit 93,420 in 2010.

The only two counties to lose population were Monroe, and Pinellas. Monroe County is undevelopable because of the marshlands. Pinellas County is already extremely populated and has very little room for growth.

“The collapse of the housing market and the lingering effects of the worst economic crisis since the 1930s are likely to keep the state’s population growth at relatively low levels for another year or two,” Smith says. “We expect growth to increase thereafter, reaching levels more in line with historical patterns by the middle of the decade. For many counties, however, future increases are likely to be smaller than those occurring during the last several decades.”

Anna Maria Real Estate

 Anna Maria Island real estate has been bucking the national real estate trend for many months now.  The number of transactions for 2009 was an average year for Anna Maria Island and 2010 was a banner year for the island real estate.  Most importantly, Anna Maria Island real estate for 2010 saw a jump of 30%+ real estate transactions as compared to an average real estate year.  2011 is off to the same start as 2010 with almost 125 transactions so far for the fiscal year according to our multiple listing service.

This means that the month of April saw almost 50 real estate transactions with more than 75 properties still in a pending mode so the back log of contracts on hand is healthier than usual.  The reason I pay so much attention to transactions is that I feel it is the demand side of the macro real estate market for Anna Maria Island.  Appreciation for real estate is simply based on Supply and Demand.  The number of transactions for Anna Maria real estate are consistently 30% above an average year.  So demand is very strong.  Supply which is number of properties for sale is actually at a 5+ year low.  Now for the most important indicator of real estate health.  How is supply and demand as they relate to each other and more importantly how does that metric relate to the past.

Below is that very chart.  The key points; real estate inventory is at normal historical levels.  The demand however is very high therefore making the number of months on hand very low and correlating back to levels of real estate crazy years in 2005.  Please don’t get me wrong, this is not a license to go out and buy whatever is on the market.  It is more important than ever to choose a great real estate professional that will educate you on our market and provide the pro’s and cons of each property as it relates to your expectations.  Take a look at the chart below and as always call or comment with questions.

Anna Maria Real Estate Absorption rate

Wall Street Journal

 deal of Anna Maria Island Real Estate transactions.  While I am unaware of the exact percentage of vacation rentals on Anna Maria I estimate nine out of ten real estate buyers request rental income estimates prior to purchasing.

The article basically explains how investment property transactions are on the rise and in some areas they are seeing minimal appreciation.  Anna Maria City, Holmes Beach and Bradenton Beach are great examples of the trends the Wall Street Journal is writing about.   Anna Maria Island saw about 235 transactions in 2009 and in 2010 we say 317.  This data comes from MLS.  So, the island has seen a 38% increase in transactions as compared with 2009.   Even more impressive is when you take into account an average transaction for Anna Maria Island is around 230 transactions so 2010 frankly was a fantastic real estate year.

The law of economics talk about supply and demand.  Supply is much lower as compared to the height of inventory for sale on Anna Maria Island.  Anna Maria saw around 900 + properties for sale while we finished 2010 with just over 500 properties for sale.  Supply is low and our Anna Maria Island transactions are way up.  Most analysts would agree that as number of months of inventory for sale is a leading indicator of appreciation of property for sale.

For more information on the Wall Street Journal article visit here.  As always, if you have any questions regarding Anna Maria Island Real Estate send me a note or give me a call.

For Sale

These days everyone is looking for a great deal. We probably have all seen on the television, “This mansion sold in 2004 for 8.25 million and just one month ago sold for a 2.25 million.” Maybe not that great of a deal but seeing stories like this leads us to believe that we should all be taking advantage of the next “deal.” Well maybe and maybe not.

The market I follow which is Anna Maria Island and the surrounding areas are a bit different. Sure, Anna Maria Island Real Estate has our fair share of bank owned properties better known as REO which stands for Real Estate Owned. But, it is a much different story on our tiny little island. Where most of the nation sees more than 25% of its for sale inventory being REO, we on the island range between 5% – 9%. For a risk tolerant buyer that wants to live on Anna Maria Island the reward can absolutely outweigh the risk and especially if you have performed a renovation yourself in the past. Below are my top ten list of things to know for REO buyers. Of course this does not cover all the risks and this should merely be used as an aid and I always, always suggest using a local attorney to help through the shark infested waters.

#10) Hire a local real estate professional. Don’t use aunt Ruth who has a full time job but dabbles in real estate on the weekends in another area of the state. You need to use someone that is burning through alot of transactions every year and has a vast array of resources that will be suggested. Who is a good attorney, building inspector, mold inspector, banker and there are many more. You want a REALTOR that works through alot of transactions.  This is best because you want a diverse array of support personnel and the more transactions the more the sales person has seen who does a good job and who does not.  In an REO transaction it is more critical than ever to use someone with experience in this side of real estate.  Sure, I understand why this step may not seem transparent but just give me a few more minutes and you will see why it is here. If you need help finding a good real estate professional check out my blog, top 8 key’s to real estate success.

REO for sale

#9) Hire a good local attorney. Use your real estate professional for guidance if need be. They know who is handling bank owned properties and who will do a good job. If your real estate professional cannot give you a few to call then I suggest you find a new real estate professional. You need a good real estate attorney to help with the title search. Most banks make no guarantee of title.   To put it as plainly as I can, do you want someone 3 years after owning your REO home to come knocking at your door telling you owe them $35,000 for the roof they put on 4 years ago?   Worst yet, banks make no claim that the title is “marketable.”  This basically means that you might not be able to sell your home due to a cloud on the title.  Do you think it is important later some day to sell your home?

#8)  No prorations after closing.  In most cases this is not a huge issue but it is important to understand this especially in the case of new construction.  When property values start to go up then be sure to ask your professional sales person what this could mean in the way of your pocket book.

#7)  Most banks can back out of the contract for whatever reason they want.  Could be because it is a blue sky.  So keep this in mind as you spend thousands of dollars on mold inspections, building inspections and maybe a survey or elevation certificate.  It is not uncommon to spend $3 – $5,000 prior to closing.  Realize, regardless of how much you

Real estate treasure

 spend to prepare yourself to buy the property, the bank can back out anytime and for any reason and you have no claim on the funds spent to prepare for closing.  No refund of money.  Why – cause that is what is in the contract!  In addition, do you think as a buyer they let you back out for any reason?  No way!  Most banks will allow you a period to inspect the property.  Some REO contracts have no contingency period and if that is the case proceed very very carefully and I suggest consulting your attorney.  Consider your deposit up for risk.  Why?  If you put $20,000 down as an escrow deposit and you find the home is ready to fall down and is now worth $200,000 less,with no contingency to back out which would you rather lose?  $20,000 escrow or $200,000.

#6)  Banks will almost never disclose anything regarding the property.  This means as a buyer you are walking around in the dark and have absolutely no idea about any pre-existing conditions.  Most banks will allow you a period to inspect the property after the contract for sale is signed.  If the contract has no contingency for an inspection consult your attorney and be very very careful prior to signing the contract.   Consider your deposit up for risk.  Why?  If you put $20,000 down as an escrow deposit and you find the home is ready to fall down and is now worth $200,000 less than it is worth with no contingency to back out which would you rather lose?  $20,000 escrow or $200,000.  By the way, most banks have a clause in their contract that says they can grab your deposit immediately even if there is a dispute.

#5)  Undisclosed tenants.  This is a doozie.  If there are trespassers or squatters in posession of the property it will be your responsibility to evict using an attorney.  This takes money and time, all of which is a limited resource.  In addition, most contracts state that if there are any security deposits or last month’s rent on hand that will be the REO buyers responsibility.  This all equates to hiring the right building inspector to review the property does not have any evidence of squatters, etc.

#4)  Cannot sue the Bank. This is one of the toughest that will should require strong re-consideration.  Sure you can sue anyone but most contracts require the buyer to reimburse the lender for any costs they incur due to the suit and most require a penalty if the buyer violates the covenant not to sue.

REO Value

#3)  Avoid addenda that states the buyer will take title of all liens, easements, encroachments, assessments and eliminate all obligations of the REO lender to remedy any of these issues.  If you have not already hired legal counsel to help and you see this in the contract for sale do yourself a favor and PRIOR to signing the contract get legal counsel to help.  You will need a contingency time for someone that you have hired to be sure none of these pre-existing conditions exist.  If there is a lien on the property from the local government due to uncut grass  or garbage in the yard of $150,000 and language is in the contract as stated above then you as the buyer will be required to remedy the situation.  Feel like paying an extra $150,000 for your property.  This happens every day and we have seen higher fines than this on Anna Maria Island!

#2)  Read the contract. This may seem obvious but I cannot tell you how many times I have heard buyers state I will sign the contract now and read it later. Also I have heard – I am sure my real estate professional will warn me about the highlights and low lights – NO, this is your money, your investment. Each bank uses a different contact and to read through most sale for contract paperwork, it takes a good 1 hour. So, read the contract before you sign and if you have any questions consult your attorney.

#1)  Did I mention to get help?  The REO lender will not adjust their contract for sale.  This means that you should have a contingency period for inspection of the building, title and any other concerns.  You need good legal counsel to search for title defects, assessments, easements,  you name it.   Could you try an REO buy without a good local real estate professional, probably.  Without a local sales professional your escrow deposit is at risk.  Without an attorney’s assistance there is no question that your entire equity position in the real estate transaction is at risk.  I personally would not want to lose either however it is the buyer’s tolerant to risk that will dictate how to proceed. 

If you have any questions don’t hesitate to email me or call – (941) 345-1288.    If you are in the Bradenton, Sarasota, Longboat Key or Anna Maria Island area looking for a great investment I would love the opportunity to help.  Please note, I am not an attorney and this list is not meant to be all encompassing and only a guide and REO tricks of the trade change often.

Tortuga Beach Inn

Tortuga Beach Resort offers fabulous value with on-site services to handle your every whim.  Better yet, the properties range in price from $325,000 for a 1,200 square foot two bed, two bath condo to $375,000 for a 1,400 square foot two bed, two bath luxury apartment.  Did I forget to mention that not only do you have a home away from home but the apartments are rented out to offset operational costs as well as some debt service.  Call or email me for more information as I have historical rental performance on the Tortuga Inn and I think you will be surprised with how little a Tortuga Beach Resort apartment costs per month.  Email – Larry(at symbol)IslandReal.com

Anna Maria Island Real Estate Services

Purchasing or selling your home is one of the biggest transactions of your life. For that reason it’s very important to  get it right. Statistics show using a National Realtor will minimize physical, mental and fiscal pain. That moves you into at least a 50-50 shot that your real estate professional will maximize your equity purchase or sale. See the 8 questions below to help find the top 5% real estate sales professionals on Anna Maria Island. By the way – you guessed it, all my answers are yes except for #8.  It may sound corny but Real Estate is my life…See below, I hope the questions help!  Email Larry.

#8) Is Real Estate your full time job?

#7) Is your office open 7 days per week?

#6) Is your office on Anna Maria Island?

#5) Do you live on Anna Maria Island?

#4) Do you own on Anna Maria Island?

#3) Do you have your own website?

#2) Can I find your website by typing Anna Maria Island Real Estate?

#1) Do you hold any leadership roles in the Anna Maria Island Community?

Water Barrel

and Anna Maria Island areas save money and go green.  As of late MCUCS is offering potential rebates for replacing old high volume 3.5 gallon toilets.  There is a limit to two per household but if you have purchased an Anna Maria Island investment property that needs some updating you might be able to put some extra cash in your pockets if replacing two old toilets.

In addition, MCUCS is offering rain barrels and a low low rate.  It is actually a rain barrel kit that includes a 55 gallon drum to collect rain water.  The price is unbelievable at $39 per kit.  Just go to the utilities department at 4410 66th Street West, Bradenton, Fl or call (941) 792-8811 Extension 5327