2018 Market Summary for Anna Maria Island by Lawrence Chatt, Broker

Results are in for Anna Maria Island Real Estate for 2018. I would like to discuss each category of real estate then will move on to the overall health of Real Estate on Anna Maria Island.

Single family homes on average were flat for 2018. The amount of single families sold (234), average sold price ($1,050,000), and days on market (135) are all flat as compared to results from 2017. One notable difference this year is the amount of single family homes on the market at 179 versus end of 2017 at 139. Average for the last 4 years has been 170 single family homes on the market in December. While a big jump from last year the inventory of 179 falls right in line with a normal year.

Condos for sale on average improved versus 2017. Condos have lagged single family home results so not big surprise condos caught up a little in 2018. More specifically, on average condo prices were up 3%, transactions were flat (131), Days on the market flat (138) and inventory was down 15% (73). If you have been considering selling a condo, now might be a good time to throw your hat into the ring since the average inventory in the last 4 years has been 85 and currently our supply is low.

Multi-family/ Duplexes and Land are all relatively flat as compared to 2017. There is relatively no movement for duplexes however for vacant land there are two noticeable results for 2018. The first is appreciation on average of 6% versus 2017. Fairly significant however the “mix” of sold vacant land could be the culprit as only 9 vacant lots were sold versus an average year of 19 and 2017 of 18. Of course as vacant land becomes more and scarcer on the island this stat is expected to continue to reduce slowly. However I believe escalating building costs and the fact land plus build cost in most cases exceeds the price of relatively new product on Anna Maria Island has contributed to the slowdown in 2018.

Finally where would be in this world without charts? Below is a chart that provides the quarterly sales since 2005. Of course this is the demand side of the Anna Maria Island absorption rate. Sales for the 4th quarter of 2018 is low and the last time we saw transactions for the 4th quarter hovering around 60 was in 2011. 2018 transactions, (397) ended a little higher than the 4 year average of 390 so 2018 for demand was an average year. Red tide is likely the culprit of the 30% drop in sold properties for Q4 and its encouraging our new governor of Florida is taking red tide seriously and within weeks of being sworn in is taking some progressive steps towards ensuring red tide is stamped out. Definitely something we will all keep our eye on for 2019.

As always, email or call if you have further questions. We would love the opportunity to help find your “peace” of paradise on Anna Maria Island or its surrounding areas. Here’s to a prosperous, healthy and red tide free 2019. I very much appreciate your business!

4 Point Inspections

When you purchase a home on Anna Maria Island, you may need a “4 point inspection” before securing a homeowners policy. In fact, most insurance companies will require this when a home is older than 40 years, or a rental property is older than 30 years. A newly constructed home does not need this inspection for insurance. You can get an insurance quote without an inspection; however, you will need inspection before actually purchasing the policy.
A 4 point inspection looks at the 4 major systems in an older home. An insurance company wants to know that an older home has been well maintained, and the major systems are in good working condition. This is NOT a safety inspection. They are done by a licensed inspector or building contractor.
Here is what a 4 point inspection examines:
• Roof – Type of Roof Covering (shingles, tile, rolled). The age and condition of the roof, i.e. are there missing shingles or leaks?
• Electrical System – The type of the wiring in the home (copper, aluminum, knob and tube). The brand of the electrical panel. The condition of the homes electrical system
• Heating and cooling – Is there central heat and air in the home? The age and condition of the system. Are there signs of leaking?
• Plumbing System – Type of supply and drain lines found in the home (copper, CPVC, galvanized, lead, polybutylene, etc. Is there evidence of current leaks? The age of the hot water heater.
These inspections are done at the homeowner’s cost, and generally run between $50-100. Ask your Island Real Estate Realtor or insurance agent for a recommendation on whom to use.
If you are aware that your home has one of these issues, be sure to tell your insurance agent up front so you get an accurate quote. Insurance companies vary in their responses to homes that have issues. Some insurance companies won’t insure these problematic homes at all, while others take a different approach.
If your home has not been updated nor has older problematic systems, consider updating them. Before purchasing an older home for the first time, be sure to check that you can find insurance that is affordable. When purchasing an older home, we recommend getting a 4 point inspection done first and working with a reputable independent insurance agent. They can help determine the cost of insurance and advise whether the home is insurable.

Local Lawn Care – Shady Lady Horticultural Services

Founded in 2012 by Anna Maria Island resident Joan Bowling, Shady Lady Horticultural Services provides service with a focus on the specific and unique needs of island properties. For example, sea spray can end up with plantings looking rather plain. The simple addition of salt tolerating colorful shrubs and moisture holding mulch make for a much nicer view.  A nice balance of form and function.

Shady Lady Horticultural Services prides themselves by offering turnkey solutions for island residents. Shady Lady offers landscape design, construction and maintenance services with both native plants and custom designs.

Shady Lady’s design services are unmatched, offering both residential and commercial solutions. They use a “Best Practices Approach” to construction and provide service worthy of their island neighbors.

AFTER CLOSING – NOW WHAT? Lawn Tips

AFTER CLOSING: So your Island Real Estate Sales Agent has been there with you through the closing, but the work isn’t done! You’ll need local vendors for both routine maintenance and special projects. Critical to keeping your curb appeal is choosing a landscape maintenance vendor that is right for what you envision your property to be. Some homeowners prefer a precision trimmed yard and others love to have the native plants grow lushly for a more tropical feel. It’s important you both are familiar with any currently installed irrigation systems at your new home and ensure the timers are set around local watering rules, if any.

Discussing fertilizer and pest control spray procedures and schedules is important too so make sure to add that to your list when interviewing landscapers. Keep in mind growing seasons are unique in Florida where we are considered a sub-tropical zone for planting.

We have had good experiences with: Stewarts Landscape Services; 941-778-6036, Chad’s All in One; 941-713-3790 and Shady Lady Horticultural Services, 941-704-9025.  Continue reading AFTER CLOSING – NOW WHAT? Lawn Tips

Real Estate document organization tips

We all struggle with document organization, either our electronic or hardcopy files.  I hope this information helps in your next Anna Maria Island real estate transaction or for that matter any real estate transaction.  Having real estate documents handy for insurance, income taxes, property taxes and many other requirements makes life easier.  After all seems like Murphy’s law always takes effect.  Someone needs information as an emergency and taking an hour or two finding proper documents is time you just dont have at the moment.

Tip #1)  I find that real estate surveys, elevation certificates, insurance and banking paperwork are the most used files after the purchase of a property.  Create three folders; A) Surveys & Elevation, B) Insurance C) Banking Information.Anna Maria Island property
Tip #2)  At the very least scan your survey, elevation certificates, banking information and all insurance declaration pages associated with the property.  Be sure the information is electronically stored outside the home in the case of a fire or 50 year weather event.  If you can scan in the entire closing package that is the best yet.
Tip #3) The rest of the documents can go in one folder.  Warranty, deed, title insurance, etc can all be placed in one folder labeled as such.  I find the rest of the real property documents are rarely pulled out for later reference.
Tip #4) If you rent the property create two folders each  year.  {Year} Income and {Year} Expenses.  If you are lucky enough to have a property manager send you montly statements create a third folder, {Year} Statements.

When you sell that Anna Maria Island property for a nice profit don’t pitch those real property documents too soon.  Document organization records must be maintained for three years after selling the home.  More specifically, three years from the filing date or the date the income taxes were due.  Be careful, if you use your property for business income and you self employ yourself to manage the property all information as it relates to the real property should be maintained for six years.  This can be tricky and I would always suggest you consult your CPA or the Internal Revenue Service if you believe you may fall into this category.  Of course most suggest you hold on to your tax returns indefinitely.

I hope my document organization tips help for your next real property purchase.

Larry Chatt

Larry Chatt

Choose the right Anna Maria Island real estate professional

Anna Maria Island real estate is very complicated.  Three cities with different zoning as well as rules and regulations is a strong start.  Not to mention vacation rental registration requirements vary in each city as well as their inspection criteria.  Follow that up with Coastal Construction lines to be concerned with, riparian rights as well as rentability and it creates an equation for a disaster if a buyer tries to go it alone.  An Anna Maria Island property is too large of an asset to risk not finding the right real estate professional to help with your once in a lifetime purchase.  Of course this is where I would provide a “plug” for Island Real Estate sales professionals as we only have full time sales professionals in our office.  While the rest of Anna Maria Island in recent years has doubled their sales staff.  Over the last decade Island Real Estate has only added two full time sales professionals that combined have sold real estate ON Anna Maria Island for more than 40 years.  I have heard too many horror stories of buyers using a friend or friend of a friend that truly is a weekend warrior.  A Sarasota or Tampa real estate professional will be hard pressed to understand the zoning and rentability requirements for Anna Maria City, Holmes Beach as well as Bradenton Beach.  It is just next to impossible to keep up with multiple areas and city rules and regulations.  I do however recognize there are great real estate professionals in other organizations on Anna Maria Island.  For real estate professionals outside of Island Real Estate be sure to use my supplied questions below to help you make sure you have found one of the “good one’s.”  Check out below.

A)  Is their office located on Anna Maria Island?  If the answer is “no” then move on and there are no further questions to be asked.  There are way too many changes occuring and the office HAS to be local to keep up with all three cities.
B)  How many Anna Maria Island listings does the individual have currently or in the past?  If in the last two-three years you cannot find at least 10 listings ON Anna Maria Island then MOVE ON.
C)  Use some of the zoning information I have provided in my Holmes Beach or Anna Maria City rental posts and ask the real estate sales professional specific questions on rentability of zones in the City you plan to purchase in.  All FULL TIME local sales professionals should be aware of at least two of the three zones you ask about.
D)  Ask if there are any occupancy restrictions in Anna Maria or Holmes Beach?  If you wanted to rent out to 16 people is that allowed?  If the sales person answers “no problem” without caveats then RUN and run FAST, that is away.

I am always happy to help answer questions you may have about Anna Maria Island real estate.  Feel free to email or give me a call on my direct line.  (Larry@IslandReal.com) or (941) 345-1288.  I pre-apologize it can sometimes take 48 hours to return calls as well as emails but I am happy to help with questions you may have.

I hope the questions above help to find the right sales professional for your Anna Maria Island real estate search.  Anna Maria Island real property can be extremely complicated and don’t leave your large asset purchase up for chance.  Good luck and happy hunting!

  Larry Chatt

Steps to make Anna Maria Island – HOME

So, you’ve fallen in love with Anna Maria Island and want to call it home…we can’t blame you, that’s how most of us ended up here too! But what’s your next step in making our paradise your new home?

Step 1: Start with Island Real Estate. As soon as you can, call Island Real Estate and one of our professional local Realtors will share with you island market trends and current listings. 

 

 

Step 2: Determine the budget of your investment. Lenders generally recommend that people look for homes that cost no more than three to five times their annual household income if the home buyers plan to make a 20% down payment and have a moderate amount of other debt. But you should make this determination based on your own financial situation. Each listing has a mortgage calculator on IslandReal.com to help you!

Step 3: Unless you are paying Cash or have a 1031 Tax Deferred Exchange, get Prequalified for Your Mortgage. Island Real Estate can introduce you to proven successful lenders in our area so you can get prequalified for a mortgage. To get prequalified, you just need to provide some financial information to your mortgage banker, such as your income and the amount of savings and investments you have. They will review this information and tell you how much they can lend you.

Step 4: Shop for Your Home and Make an Offer You and your Island Real Estate Realtor will start touring homes in your price range. You may see a lot of houses! It can be hard to remember everything about them, so you might want to take pictures or video to help you remember each home. Your Realtor will also provide details on each listing.

Step 5: Get a Home Inspection Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. Your Island Real Estate agent will help you arrange to have this inspection conducted within a few days of your offer being accepted by the seller. This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage.  Both you and the seller will receive a report on the home inspector’s findings. You can then decide if you want to ask the seller to fix anything on the property before closing the sale. Before the sale closes, you will have a walk-through of the house, which gives you the chance to confirm that any agreed-upon repairs have been made.

Step 6: Have the Home Appraised. Your lender will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraiser is a member of a third party company and is not directly associated with the lender. The appraisal will let all the parties involved know that you are paying a fair price for the home.

Step 7: Purchase required Insurances. Every area has their own unique set of required insurances. Your local Island Real Estate Realtor is very knowledgeable with the flood and wind insurance needs for our island.

Step 8: Coordinate the Title Insurance. As you can imagine, there is a lot of paperwork involved in buying a house. Your Island Real Estate Realtor will arrange for a title company to handle all of the paperwork and make sure that the seller is the rightful owner of the house you are buying.

Step 9: Close the Sale – Congratulations!  At closing, you will sign all of the paperwork required to complete the purchase, including your loan documents. Island Real Estate will be with you and ensure everything goes according to plan and to make sure you receive all the necessary keys, etc. needed so you can celebrate your new purchase!

Anna Maria City trash guidelines

Trash Pile up
Trash Pile up

Anna Maria City has always had code regarding the time and placement of trash cans at an owners curb.  Anna Maria City is beginning to see trash cans sitting out at the curb for days.  The city has focused on short term rentals as well as absentee property owners that come out to Anna Maria Island and leave their cans out for the week.

The city of Anna Maria says no more.  The Islander newspaper reported on this topic in August and quoted code enforcement officer Gerry Rathvon, “These containers sit there for days.  They often get blown over by storms, and I go out and pick up the trash.”   It’s an ugly situation, trash cans sitting out everywhere for days.

The city on Anna Maria Island is compiling a list of repeat offenders.  Code allows fines of up to $250 per day.  There is an easy solution, Waste Management offers a back door pickup service for $3 per month.  Waste Management employees will retrieve your trash at the back door on the assigned trash days.  Seems like a no-brainer.  One fine could be $250, that is 80 months of back door pick ups to pay for one fine.  Wow, what a pay back.

From the Islander, “City code states: Residential containers and garden trash shall be placed out for collection no earlier than 5 PM of the day prior to the scheduled collection and shall be removed from curbside not later than 9 PM of the day of collection.”  All residential containers, garden trash and recycle containers must be on the owners property.

Currently for 2009 the Anna Maria City the trash pick up days are

Monday – Trash/Garbage and recyclables
Wednesday – yard waste
Thursday – Trash/Garbage

Not sure why everyone does not sign up for back door service with Waste Management? One thing is for sure, if an Anna Maria Island property owner is renting their home out seasonally with or without property management the back door service is a no-brainer.

Garbage Schedule Changes for Holmes Beach, Florida residents

Garbage days changing in Holmes Beach, FloridaAttention owners in Holmes Beach, Florida, the garbage pick up days have changed to Tuesday and Friday’s.  Unfortunately, recycling continues to be on Monday’s and organic waste pickup remains on Wednesday’s.  Looks like the only day Holmes Beach residents on Anna Maria Island leave their trash alone will be Thursday’s.

Due to the Manatee avenue drawbridge closing for repairs your trash, recycling, and organic waste pickup should be curbside by 6 AM.  Once the bridge is open and back up running the normal pick up time of 7:30 AM should resume.