08 SELL NOW OR WAIT
“When you find yourself on the side of the majority it’s time to pause and reflect” (Warren Buffett)
The majority think we’re on a never ending up cycle, so reflection is suggested before deciding to sell or buy.
Unpresidented real estate price bubbles are growing in major cities world-wide. When they burst, a real estate price decline is imminent. The closest real estate bubble to us is in Miami.
Real estate is hyper-local. This month’s article focuses on Pinnellas County barrier island properties from Pass a Grille in St.Pete Beach to Island Estates in Clearwater. It’s a strip of islands with 17 towns along 27 miles of Gulf Islands including Isla del Sol and Tierra Verde. 75% of the homes are built on the ground and 25% are elevated. Because of increasing flood insurance premiums, the elevated 25% are worth much more than the others. The price variations will increase proportionate to future insurance increases. Many buyers still buy the older flood prone homes and even spend extra to upgrade them, while disregarding the negatives.
Because of extremely low inventory on our islands, it’s a great time to sell. It’s not a good time to buy, unless your personal circumstances dictate. I suggest to many clients that they sell and then wait to buy when prices come down, which, in my opinio, is inevitable. Replacing outdated homes with new technology and energy saving construction may be a better alternative to remodeling. Return on the investment for most upgrading and remodeling is less than you’d pay for those improvements. In addition, upgrading to your standards and décor may not be acccecptable to your buyer.
On our barrierr islands “under all is the land”. The size and location of the lot is often worth more than the structure. House values decrease with age while island lot prices continually increase because of limited supply. If you want to see an example of an affordable on your lot move in ready Energy Star home, go to BeachLifeProp.com . The model has 3029 total sq. ft. under roof and the approximate build price is in the low $300,000 range, without the lot. Custom built homes are considerably more.
You’re invited to our weekly “REAL BEACH TALKS, each Tuesday 4 -5PM, in person or online at https://www.facebook.com/jim.beggins to share area specific news.
Pinellas barrier island land is the best value in Florida no matter what economic cycle we’re in. Watch us grow.
All the best, Jim “Property Wizard” Beggins, Broker, CENTURY 21Beggins Enterprises, with 10 offices and 400 agents serving Pinellas, Hillsborough, Manatee and Sarasota Counties. Since most opinions about real estate can be supported with facts. I will inform you to the best of my ability so you can unconfuse the facts to your personal advantage. I think I can use my “hands on” experience in Florida real estate since 1972 to achieve your desired outcome. Please let me know how I’m doing. mailto:email@example.com 254 8144 Cell. Call, text or email with any questions.