Real Estate

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.

Local Lawn Care – Stewart’s Landscape Management

Stewarts Landscape Management has been serving locals since 1980 with full service residential and commercial landscaping and maintenance. They provide design and construction services, grounds maintenance, plantings, holiday decorating, and specialty outdoor spaces, comprehensive all season maintenance services.

Stewarts Landscape Management has a single focus – to be Extraordinary FROM THE GROUND UP. Complete customer satisfaction is what they are all about. The entire staff is committed to ensuring that the job is done right the first time, on time. They are recognized as one of the premier landscape companies in the area, and this did not happen by chance, rather they earned it as a result of dedication and hard work. At the end of the day, when the job is done, the quality results speak for themselves – customers understand that Stewarts Landscape Management is beyond a doubt Extraordinary FROM THE GROUND UP.

Their success begins with a team of experienced professionals. Many employees have been with the company for years and are knowledgeable in all aspects of landscape construction, installation and maintenance.

Stewarts provide complete project management, designed with each client’s unique needs in mind. This has made us one of the most respected landscaping companies in south Florida. The staff at Stewarts Landscape Management looks forward to working with you on your next residential or commercial project.
In a world of mega marts and multinational corporations it’s nice to know that at Stewarts Landscape Management you can still get personalized service. They can customize a maintenance program that meets your needs and fits into your budget.
For our commercial customers your business partners they know the importance of “Curb Appeal”. Your landscape is the first thing a customer sees as they arrive at business and the last thing seen when leaving.
Whether it is a residential home or a multi-million dollar commercial property, as a full service landscape company you can rest assured that your property will always look its best.
Reach Stewarts Landscape Management at 941-778-6036.

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

Anna Maria Island Market Conditions for 4th Quarter 2018

 

Anna Maria Island real estate continues to be robust with what seems to be a healthy amount of supply and demand.  Our proprietary inventory absorption metric has spiked in the fourth quarter of 2018 to 11 months of Anna Maria Island real estate for sale but would not characterize the spike as an indicator of problems ahead as we have reached 11 months of inventory for sale on the island several times in the past 5 years.  More specifically 1st and 4th quarter of 2016.  For the last 5 years our real estate for sale has averaged a little more than 8 months on hand.   How well inventory is turning is a great leading indicator for real estate.  It provides a relative measure when supply and demand is out of balance and provides an indicator to watch for movement into a buyer’s market.

For the last five years average transactions per month has ranged from 45 to 22 with the low occurring this quarter at 22.  We have dipped into the twenty’s for number of property transactions 6 out of the last 20 quarters so it is nothing new.  Inventory remains low at 257 so supply and demand continues to remain at what seems to be a healthy balance.  For the last five years our total real estate for sale on Anna Maria Island has ranged from about 350 to 250 properties.  The average for the last five years has been 283 properties for sale at least according to Mid Florida MLS figures.

Happy Holidays!  We hope everyone is staying warm during this cold season.  The island has been unseasonably warm up until December and we are starting to see a few cold snaps and dipping into the 40’s occasionally at night.  Brrr…

Please be sure to call Island Real Estate for your Anna Maria Island real estate needs.  All our sales professionals are full time and we don’t have any weekend warriors dabbling in real estate on the side.   We would love the opportunity to help!

Best Lighting Fixtures – Franklin Lighting

With over 10,000 lights and fans in the region’s largest showroom, Franklin Lighting in Sarasota is sure to satisfy all of your lighting needs. They carry thousands of high quality lamps, ceiling lights, wall lights, outdoor lights, and fans. Along with lighting fixtures, they also have a selection of home accents like mirrors, bookends, plaques, and more. No matter what look you’re going for, contemporary or traditional, they will have the perfect fixture to suit your style.

The dedicated, professional, and highly trained sales staff truly makes the process enjoyable and trouble-free. Because of all this, Franklin Lighting has won an abundance of titles. Since 1994, they have consistently been voted the “Best Lighting Store” from the Sarasota Herald Tribune. They also took the 2018 title for “Best Lighting Fixtures” in SRQ Magazine. 

FRANKLIN LIGHTING

Address: 3600 N Lockwood Ridge Rd, Sarasota, FL 34234
Phone: (941) 355-2550

Anna Maria Island Sales: Market Conditions

MARKET CONDITIONS by Broker Lawrence Chatt:  The Anna Maria Island real estate market continues to remain strong for single family homes. No question Anna Maria Island Real Estate is a strong investment. 20 years ago the average single family home on Anna Maria Island was $275,000. Today the same property on average is worth more than 1 million dollars. That correlates to a 7% appreciate rate for the last 20 years. Couple that with the earning power of vacation rental income and that makes for an impressive return. While you can see single family homes over the last 20 years have provided a strong return most buyers on Anna Maria Island are not purchasing real estate for their potential financial returns. They fall in love with the island and want to hop on the Anna Maria Island “bus” as soon as possible given the history of escalating prices and potential that the “ridership” of Anna Maria Island may outpace future earning power. Potential residents of Anna Maria Island don’t want to see themselves get priced out of the market. Speaking of which, here is a great article by a local newspaper that provides statistics about the 1 Million dollar real estate club known as Anna Maria, at least forecasted for 2018.

AFTER CLOSING – NOW WHAT? Pool 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. If your island home has a POOL, here are some tips: Determine how much use your pool will get year round. Will you be living there full time or renting? Is there a spa, a pool heater and is the pump a traditional or salt water unit? Gathering this information first will be helpful and your Island Real Estate Professional can help you.

Hiring a local pool vendor who understands you needs and specific equipment will save you a lot of headache. We have learned that larger homes which are rented often need twice a week service in the summer months where heavy use, hot sun and tracked sand can build up fast.  You want to keep your paradise sparkling!

We have had good experiences with: Pool America (941-778-4440), LaPensee Pools (941-778-5622) and Tom Sanger Pools (941-713-2836).

 

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