Lets talk turkey! 

Many people ask me

How is the real estate market doing? Are homes really selling. What are they really worth? Is it a good time to buy?

 Let’s look at what has closed and the data that is available.

This report is for homes (single family residential) that closed in Alachua County between September 1, 2011 to  October 18, 2011 from the MLS system.

There were 153 closed residential properties in this time period. Of these, there were 11 that were short sales, 28 Bank Owned, and 114 somewhat normal sales.

SHORT SALE information:

The sold prices of the 11 short sales  ranged from $80,000 to $275,000 with the average being  $153,992. The average asking price was $160,958. The average asking price was $160,958. The average ratio between asking to closed prices was 96%. The price per square  foot range was $44.40 to $116.43.  (Yes, $116.43 for a short sale home!). The average days on the market was 258, ranging from 134 days to 456 days.

BANK OWNED information:

In this same time period, there were 28 bank owned properties that closed. Their sold prices ranged from $12,000 to $330,000 with an average selling price of $112,617. The average asking price was $118,177. The average ratio between asking to closed prices was 95%. The price per square foot range was $14.93 to $101.14. The average day on the market was 124 ranging between 24 days on the market to 418 days on the market.

NORMAL SALES information:

There were 114 normal sales. Their sold prices ranged from $30,000 to $725,000 with an average selling price of $197,561. The average asking price was $207,838. The average ratio between asking to closed price was 95%. The price per square foot range was from $24.04 to $164.10 with an average of $101.25. These homes sat on the market an average of 174 days. The shortest was zero days on the market to 667 days on the market.

Interest Rates

Interest rates are low for some borrowers. If you have a great credit score, the rates are great. I suggest the first thing to do when you are contemplating buying a home, is to have a chat with your local lender. They can give you all the details of what YOU can expect when getting financing on a home. Also have them look at your credit. You can be surprised if something shows up that would stop the loan process.

As for the low home prices, it may not be quite what you expect. For example, don’t think you can put offers in 20% below asking price and get the seller to even respond.  Also, if you see a home you like, don’t wait too long or it could sell to someone else. We are also seeing many sellers getting multiple offers on their homes at the same time.

How can you use this information?

Well look at the ratio between asking and selling prices. The average is close to 95% of the asking price. Then look at days on the market – the more a home needs work, the longer it sits on the market.

A home that is in great shape, asking price is within reason, can expect to get 95% of their asking price, and sell within a few weeks to a few  months.

Water Damage is one of the silent killers of your home.  If you don’t notice a problem the damage it causes will grow.

Water damage can come from a variety of sources: storms, flooding, broken water pipes and lines, leaking washing machines, and more. This can lead to mold and odor problems, and worse. If left unmitigated, water damage can eventually cause structural damage, which can entail significant costs to repair and can even affect a home’s value.

Preventing Water Damage

Prevention is the first defense against water damage. Here are some basics on preventing water damage and its effects:

• Water supply lines to and from washing machines and dishwashers should be regularly checked for leaks. Both the hoses themselves and the connections should be examined. Even a small leak can cause water damage over time, so any leaks should be repaired immediately. If the laundry room is located on the main floor or above, damage to the floor and ceiling below can be especially problematic.
• Tank-style water heaters are prone to leaking, especially after several years of use. Over time, the bottom of the tank can rust out, causing a serious leak. Ideally, an overflow valve should be installed that will conduct leaking water to a pipe that will drain either outside or to an appropriate interior drain.
• Another common source of water leaks is the ice maker supply line; this should be checked as well.
• Be aware that pipe leakage can occur inside the walls or ceiling and may be impossible to detect visually before damage has already occurred.
• Gutters and downspouts should be checked to ensure that water is flowing away from the home’s foundation. Make any adjustments, and check the flow again using water from a garden hose.
• Water leak detectors can be installed at floor level near water heaters and interior air conditioning units. Simple, inexpensive wireless models are widely available and will sound an alarm when water is detected on the floor near these appliances.

Buying a new home is exciting!

Not only do you get to pick out what your home will look like (if you purchase it early enough in the construction process), but you also get to pick out all of the finishes you would like.  Granite, stainless steel, travertine, marble, cabinet style, bamboo or wood floors, etc etc etc…. LOTS of fun decisions to make when you are planning your new home!

5 Tips for You

As you are making all of the decisions re what you want to go into your new home in Gainesville FL, here are some other things that you may want to consider before signing on the dotted line:

1) Which schools is your new home zoned for?
You may not have kids, so maybe this doesn’t seem like it would be a big deal.  However, you are not just buying your new home in Gainesville for yourself…you are also buying it for the family who will eventually buy it from you.  Different schools are more desirable than others, and that affects resale values.

If you don’t know which schools your new home will be zoned for, contact the Alachua County School District Zoning Office at 352-955-7700 to find out.  School zoning maps used to be posted on their website …. not sure why they are no longer available …. which is another good question you can ask them while you have them on the line.

2) How much money are you required to leave up front?
Some Gainesville builders require leaving a percentage of money up front with them so they can get started building your home, and others will let you put this down payment in an escrow account somewhere until closing.  You should know how your money is going to be handled and what the risks are.

3) Who is your real estate agent?
If you answered “I don’t need one, I’m working with the builder’s agent”…..BZZT! Bad answer!

Even when you are purchasing a new home you should have your own real estate agent representing your own interests so that you can get the best deal possible on your home.  It’s also really nice to have an agent there to give you opinions on upgrades etc. who is protecting your interests and your pocketbook.

4) How close to “build out” is the new home community where your home is being built?
OK, THIS one comes from personal experience….and not a very good one at that.  When you are buying a new home in a neighborhood that is not even close to being finished, ask yourself this question:

“When it’s time to sell my home, who am I going to be competing against?”

Answer?

Your neighbors who are also trying to sell their homes, and the builders who are still building in the development

Why is this a big deal?

Well, think about it….how different is your home? Will your new home stand out in any meaningful way from the home that will be for sale next door to yours? Or down the street? Or around the block?  What will entice buyers to purchase YOUR home over the others that could be available for sale at the same time?

When it comes to competing against builders in the current market, that gets even more dicey….because if builders are still putting up new homes when you are trying to sell yours, they will be able to offer a LOT more incentives to homebuyers than you can….things like awesome financing packages, or free landscaping, or upgraded features in house like granite/stainless steel/new feature of the day, etc….thrown in for the same price, or pretty darn close, that you are selling your now “old” home for (even though it may only be 2 or 3 years old).

When you are competing against builders, pretty much the only thing you are left to compete against them with is price.

5) How “brand-new” is the new community?

Has the builder just broken ground on the development? Are there just a few homes up, with many more promised homes to follow? How about amenities?  Are the pool/playground/basketball courts/tennis courts/etc. that the builder has promised new residents already built?

Here’s why I’m asking:

Click to see New Homes for sale in the MLS system...

I’m not trying to be a buzz-kill here!

Buying a home is an investment in your future, and these are just some things you should be considering before you ultimately make one of the biggest financial decisions of your life.

Ready – Set – Go

Here is a link to homes for sale that were built in 2010 and will be done in 2011.

We’d be happy to do all the looking for you, but if you want to save time when trying to find the right property check out these Tips:

Did you know you can save a property you want to come back to look at again?

Do you keep looking for the same kind of property?

Try to save your search – so you don’t have to spend time entering it every time you want to browse properties.

• After you enter your criteria and hit SEARCH look for the link that says “Save this search” on the left side above the results.
• Then just click “Saved Searches” at the top of the page to see them all again.

Look near the top of the page to get your saved searches or properties!

Get Picky & Search all Gainesville Homes for Sale

We both know that you are spending way too much time online looking for your next home.  (And you are hoping your boss hasn’t caught on yet, right?)

Why don’t you narrow down your search a bit buy looking for the property features you actually want in your next home?

Our easy to use VIP Search gives you 70+ extra features to search with, so don’t be afraid to get picky!

Pool & In-Law Suite

Does This Sound Like You?

What makes you tick?  It it getting a perfect start each day or enjoying yourself in the evening?  Here is what two of our customers really cared about, find out what homes they would be looking at today:

“I want a home with an in-law suite and a pool.”
check out these homes

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