About 21 years ago my husband and three middle school children crossed the SS Jolley Bridge for the very first time to enjoy Christmas Island Style! Immediately the natural beauty, charm and intimacy of the Island captivated me! Within that week we made our first investment on the Island at the South Seas Club. I have to admit that it was a HUGE financial stretch for us with my husband being an Engineer, I being a School Counselor and our 3 bright children college-bound! However, it proved to be one of the best things we ever did! We still own that Mid-Rise unit and now our adult children and their spouses and our three grandchildren enjoy it when it’s not rented.

At that time we were located in Saratoga Springs, NY, where we still own a town home on the Lake. However, I am originally from Boston and was raised in a small apartment with 6 siblings. I earned a partial scholarship and worked at Howard Johnson’s Restaurants during the summers putting myself through College.

After teaching in Salem, MA for two years my husband and I married and re-located to Maine as newlyweds. Our 3 children were born there, I received my MS in Counseling at the U of ME, and we enjoyed living a stone’s throw from the Atlantic until the GE Plant in Portland, ME announced its closing.

We opted to take a foreign assignment and move abroad to Taiwan for almost three years. My husband was the Quality Control Engineer for a joint Venture to set up a large steam turbine power plant. That was one of the most educational experiences I have enjoyed. I learned enough Chinese to “haggle” for whatever we needed to buy in the open market places, our children attended an International Academy and my husband made great contributions in his position. That opportunity enabled us to travel extensively as a family in SE Asia.

We transitioned to upstate NY where I completed a satisfying 20 year career in Education as a dedicated Teacher/School Counselor. Then I pursued my passion for real estate. I’ve been in the business for almost 9 years and am a consummate Realtor in the Top 2% on Marco! I take my job seriously and strive for customer satisfaction. The biggest challenge I have as a Top Producer is that there just are NOT ENOUGH HOURS IN MY DAYS to do everything I want to do! However, with my strong work ethic “I GET RESULTS FOR MY CLIENTS” and still manage to enjoy some of my favorite things: family time, cooking & walking the beach no matter where I am, as seen in these past Thanksgiving photos on Sullivan’s Island in Charleston, SC.

The Marco Island Real Estate Guide

Other association news – Your local Marco Island Realtor® Association has teamed up with the state association, Florida Realtors®, to support “Paws for Patriots,” a non-profit group that provides guide dogs to blinded soldiers and veteran assistance dogs to vets suffering from Post Traumatic Stress Disorder as well as other disabling conditions.

Donations are fully tax deductible.  Anyone may donate. Checks should be made payable to “Southeastern Guide Dogs.” Mail or drop off your check to the Marco Island Area Association of Realtors®, 140 Waterway Dr., Marco Island 34145.

Our disabled troops fought bravely for us – help provide guide dogs for them!  Thank you for your donation.

Co-hosted by Jeff Popick and Jeff Tumbarello, two leading success stories in real estate today, the show is sure to be entertaining and enlightening … and quite possibly enriching. Jeff and Jeff will highlight the very best deals available in Collier and Lee counties.

The show also offers an interesting opportunity for sellers … if you are trying to sell your property and believe it’s a best buy, you can call in to promote it. If it is a true real estate best buy, you’ll get a lot of free publicity. But be careful, if it isn’t up to best buy criteria, the hosts may have some fun … at your expense.

Jeff Popick has been a real estate investor virtually his entire adult life. Even back when he was working as a stuntman in Hollywood, he was buying and selling real estate. When he and his wife moved to Marco Island in 1994, his passion for real estate continued. After a few deals he decided to get his real estate license; largely for his own listings. Recently, he hosted the radio show, Real Estate Masterminds. He is now available to help buyers and sellers of Marco Island properties.

Jeff Tumbarello is also a longtime real estate guru and his territory is virtually all of Lee County. He is also president of the Southwest Florida Real Estate Investment Association which boasts over 2,000 members.

Popick and Tumbarello are currently looking for a third co-host with a great on-air personality and intensive real estate knowledge.

Real Estate Best Buys for savvy buyers and sellers is here. Catch it on 98.9 FM (WGUF) every Sunday at 10 AM. For more information, call 239-450-3000.

By Ken Gandy

The 2011 “season” has come to an end as the snow birds have returned north to warmer weather. But, has the real estate buying season ended? Certainly not! The scenario of yesteryears on Marco Island where the real estate market totally slows down until next Thanksgiving or Christmas is long gone. Our real estate season has become more year round in the past years with continuous activity, even during the past five year cycle.

As I market watch daily, it is obvious that we have reached a critical turning point and have generally price stabilized in most real estate sectors. The Marco Island real estate market is a very complex world certainly influenced by national and global financial markets as well as numerous locally based factors often found only on the Island. However, the 2011 season has been much stronger than past years with sales volume up dramatically from last year showing a total of 415 properties sold and closed on Marco Island year to date. Also, our inventory of properties for sale has dropped approximately 8% and pending sales are up approximately 21%. All good solid news!

So, what does this really mean? In spite of the vast number of foreclosures and short sales we have, the Marco Island real estate market has reached a “Turning Point.” For the past four years we have had an over abundance of properties for sale and a much smaller number of available buyers. When this occurs, we experience a “buyer’s market” and prices have to adjust to that demand which they have; in some cases as much as 50%. Well, the “buyer’s market” is still with us, but I see certain price ranges and certain types of Marco Island real estate working towards more of a balance and that’s very good news. This is often the first step as a real estate market finds its new foundation for potential growth.

Cindy Carroll, SRA, a local expert real estate appraiser from Carroll and Carroll, Inc., states, “Marco Island was one of the first resort markets in southwest Florida to experience the downward market shift in late 2005 and will probably be one of the first to begin a recovery. In fact, one local appraiser who knows the complexities of the Marco Island market feels that we might see a slight price increase in certain areas. As we venture into the summer selling season it’s important to note that the increase in sales volume demonstrated in 2010 continues into 2011 at a steady pace. The supply of single family homes in all Marco Island locations is now under 2 years – a one year supply is considered equilibrium. In fact, supply and demand in the inland home market on Marco Island has returned to a balance setting the stage for value stabilization and recovery to pre-market run-up price levels. Today’s real estate market is diverse with each product type, neighborhood and price level moving at its own pace. Six months from now I believe it will be clear that many market sectors reached their bottom in the first half of 2011.”

Mortgage financing is another vital piece of the puzzle. When asked about the condition of the Marco Island real estate market and a possible turning point, Tony Iannotta from Wells Fargo Mortgage states, “Yes, I feel that the trend has turned to a more positive momentum based on several indicators. The banks are feeling better and the loan guidelines are beginning to ease. Recently at Wells Fargo we have increased the loan to value on jumbo loans from 70% to 75% due to stabilized prices. Another indicator would be the increase in the number of transactions in comparison to last year. Additionally, another important change I see in this market is that our buyers are end users compared to investors.”

Do you realize that approximately 50% of our buyers on Marco Island are cash buyers? The remainder are usually solid buyers seeking mortgages and the challenge is to provide them with programs that make sense and are not curtailed with unending government restrictions, limitations, and conditions that ultimately prevent the sale. I am pleased to report that mortgage financing is readily available for the buyer who has the normal basic qualifications such as good credit scores and income to substantiate the loan. Many of my clients believe that mortgage money for residential purchases no longer exists due to media reports. And, fortunately that is not accurate. So, again more good news.

In conclusion, we’ve waited for over four years to see substantial price and value stabilization in most sectors, fairer federal lending practices, lower inventories and balance, increased sales volume, and genuine excitement, confidence and enthusiasm on the part of buyers. They have finally started to recognize that now is a great time to buy on Marco Island. It certainly appears that the wait is now over as evidenced by the sales and related market indicators so far in 2011.

Yes, we have reached a significant “Turning Point” for the real estate market on Marco Island. The reminder of 2011 will be our next big test for the strength and continuation of this new and critical phase. It’s positively good news on the real estate front and big first step.

Have a great summer in our Island Paradise!

Ken Gandy is the Compliance Broker of Keller Williams Realty Marco Island. He and his wife, Lisa, have lived on Marco Island for over 7 years. He has practiced real estate for 38 years.

Ken Gandy

A day doesn’t pass that I’m not asked… “How is the real estate market on Marco Island, have prices stabilized, and when will our values start going up again?” The answers I give my friends and clients on Marco are based upon a daily study of statistics, trends, and the overall confidence levels observed from the dozens of buyers and sellers I speak with each week, both locally and nationally. Often, they are quite surprised to hear that properties are moving and there is a constant flow of sales. Yes, foreclosures and short sales have been commonplace words in my profession lately. But, remember, they represent only about 25% of the real estate activity on Marco Island, whereas that number easily approaches 75% on the east coast of Florida. You might be surprised to know that 84 properties have sold and closed, just on Marco Island alone, in the past sixty days; historically one of the slowest times of the year in our “tropical paradise.”

During my thirty-seven-year career as a Realtor, I have seen many up and down cycles. Every time we have been faced with a “Shifted Market”, I have to remind myself that real estate is a commodity, and that prices sometimes go down with commodities. This is the first time in my career that we have been challenged with global financial issues and, certainly, the fear created by the oil spill crisis slowed our market considerably starting in May, after an active and positive winter sales season in real estate.

Yes, prices of Marco Island real estate have adjusted down as much as 40-50% since the “boom days” of six years ago. But that one factor does not reflect the entire market and is not the only factor to dwell on or to consider. I truly believe that Southwest Florida, and specifically Marco Island, will rebound first. We are starting to see indications of that POSITIVE SHIFT during the past twelve months. I have observed these cycles continuously repeating themselves over the years, when often the first to fall is the first to return, especially in areas that focus on higher end resort properties.

Do you realize that we have some of the top Realtors in the country practicing on Marco Island? These top-caliber individuals and teams are some of the brightest minds in the real estate industry. They are the professional experts you should be listening to before making financial decisions with your real estate. So…I asked six top Realtor teams on Marco Island to share some of their opinions with you, so you may “Hear from the Experts”. They were all asked the same real estate questions. I believe, over this edition and the next edition of Coastal Breeze News, you will find their advice and opinions to be accurate, informative and often quite surprising!

JIM AND NIKKI PRANGE, Premier Properties

Jim and Nikki Prange

“You can see that since 2007, Marco Island sales have been on the rise. The first four months of 2010, we had incredibly increased activity in comparison to 2009. In April 2010, we had 109 closings on Marco Island, compared to a total of 57 in April 2009. Then came April 20–the oil spill. From that point on, it was like having a Category 5 hurricane just offshore. Many assumed that the entire Gulf Coast was inundated with oil. Things came to a standstill. In the month of July, there were only 39 closings on the whole Island, and 37 in the month of August. Just since the capping of the oil well, we have seen renewed interest and a flurry of activity. Sales for September actually exceeded 2009 sales for the first time since the oil spill.

Have prices stabilized? About the time that we feel that prices have stabilized, it seems that there is some new natural or unnatural disaster that we are faced with. And we have had times where, if there are no buyers…there are no buyers. And if you have to sell at that moment, you’re subject to the only buyers out there, who can be extremely shrewd and unemotional. I truly feel that we are in one of the safest areas of the United States for appreciation. Forbes Magazine has just recently recognized the Naples/Marco Island area as a place where the wealthy are moving to. When you consider that there are not really any new developmental opportunities here on the Island, the old law of supply and demand is definitely going to come into play.

How soon will it be before we see any increase in property values? The answer is: when people start feeling safe again. Some people are already in that zone; others are waiting for the election and other factors before they feel comfortable. For the last year, the banks have been trying to figure out how to handle the short sale/foreclosure market that they have been hit with. I think they are finally starting to figure it out and we have seen much improvement recently. We are told that the banks have money; the rates are the best that they have ever been; but the problem is: the people that really need the help still aren’t qualifying. The approval qualifications have become so strict. Hopefully as they liquidate the distressed properties, they will be able to address the people that are still trying to survive–those that need some immediate relief, and those that want to just stay living in their homes. We are extremely excited about the future of Marco Island and we really feel that we are in a very special place.”

SCOTT NEEDLES AND STACY WITTHOFF, ERA Flagship Realtors

Scott Needles and Stacy Whithoff

“With all the negativity in today’s environment, let’s take a look at a few positive aspects of today’s market. Many sellers are saying that only short sales and foreclosure are selling. Marco Island has approximately 30 active foreclosures for sale, out of nearly 1,500 properties (condos, lots, and homes) for sale. Many buyers that come into the market to get a “good deal” on a foreclosure quickly realize that the “deal” may cost them a lot more in the end. Therefore, these buyers end up purchasing with an equity seller. As a matter of fact, 75% of our business for 2010 has been regular equity sales.

Single family homes are beginning to sell at a faster pace. As of September 30, 2010, the market has a 14-month supply of homes for sale. This is down considerably from the last few years. A normal market is defined as having a 12-month supply of homes for sale. Although, we are still in a buyers’ market, the well-priced homes are selling.

As for the big question, has it hit bottom? Of course, no one has a crystal ball to determine this. However, we believe that if the market has not hit bottom at this time, it is close. Even if the market does drop a little more, but the interest rates go up, now is the better time to buy. With the interest rate at all time lows, it is an unbelievable time to purchase in the Marco Island area. For example, a $500,000 home today will cost you less on a monthly basis to own than a $470,000 home when interest rates go up to even a moderate level of 5%.

We don’t think anyone can confidently answer the question of when real estate prices will go up, as there are so many other factors in our current economy that make that difficult to determine. I do know that with the wide variety of properties available, great values and, once again, all-time low interest rates, now is a better time than ever to buy. As we all know, when the values start going up, the inventory will go down, and if you are a buyer you may not be able to find the right property to meet your needs.”

ALAN AND LINDA SANDLIN, RE/Max Results Realty

Linda and Alan Sandlin

“First of all, as we all know, for ten years our country experienced unprecedented growth in the real estate market and the general economy. As a matter of fact, Marco Island in 2004 had the second highest appreciation rate in the country, second only to Las Vegas, with nearly 50% appreciation in a one-year period. Two things happened during that time: First, everyone wanted a piece of the pie. Even “moms and pops” became real estate investors attempting to flip real estate for a quick profit. Second, banks were loaning money to anyone who could fog a mirror. Needless to say, you can’t continue those kinds of numbers, and we all know the end of the story–a huge collapse of the real estate market which brought down our entire economy. The problem with the good market was again twofold: First, many purchased at the top of the market and second, it is hard to get a grip on the fact that prices are where they are and may not be back to 2004 prices for several years to come. Everyone, of course, wants the most they can get for their properties and often ignore or hope their Realtors are wrong. Many sellers have priced just above the declining market in the last few years only to find themselves “chasing” the market down. They have refused offers, only to find themselves a year or more later, accepting much less than the original offering.

In today’s market, when speaking with owners interested in selling their properties, we advise them that they have to “win the price war and the beauty contest”. One of the hardest things for a seller to accept in a buyers’ market is the fact that their home is only worth what a buyer is willing to pay. Chasing the market does not work.

As for our current prices and how stable are they? The good news is Marco Island led most of the country in the last appreciating market. Our prices on the Island peaked very early in 2005 while even Naples was several months behind us. On the other side of that coin, prices for us started coming down sooner than most and we are poised to begin growth again before our neighbors. In September, which is traditionally our slowest sales month, the entire Marco Island MLS had 52 sales. This is very good, especially considering there were 36 MLS sales in August. No one has a crystal ball. However, if the trend continues, we are headed for a good season of sales activities. We were inundated all summer with media coverage over the Gulf oil spill which unfortunately was a killer for, not only real estate, but the entire coastal economy of Florida. Earlier this summer, the NOAA reports indicated that there is less than a 1% chance of oil ever hitting our shores. Yet…56% of all Americans still think Florida beaches are covered in oil…54% of all Americans think that Florida seafood is not edible. Most have read about the grass roots efforts of our Marco Chamber of Commerce to get out the word that our beaches are great through their “See you in the Sand” campaign.

When will we see prices go up again? John Tucillo, a top US. Economist says, “When inventories are low enough that buyers fear losing the property of their dreams, prices will rise.” In other words, when supply is low, demand goes up. How are we now? Homes have been the strongest sector of our market in the last year. In September 2009, there were 481 homes listed for sale on Marco Island. In September 2010, there were 430–that is over a 10% decrease in inventory and a positive market indicator. Also, there were 27 closed home sales on Marco in September (a 42% increase over September 2009.) We have approximately 15 months to absorb the current inventory. We use this absorption rate analysis all the time in looking at trends and time lines. One thing is certain, real estate choices are the best they have been in years and interest rates are at record lows. There will never be another Marco Island or Naples and astute buyers are coming back to our market slowly but surely.”

In closing, as we approach our coming “season”, we are still experiencing a buyers’ market, but let’s look on the positive side. The oil spill is over; interest rates are very low; sales volume is increasing; inventory is down; and thousands of visitors will be coming to enjoy our “Island Paradise” soon. Many of them now have an extraordinary opportunity to own a small part of this spectacular paradise we love and cherish. One thing for sure, my glass is half full. Let’s hope yours is too!

Ken Gandy is the Broker of Keller Williams Realty Marco Island. He and his wife, Lisa, have lived on Marco Island for over 6 years. He has practiced real estate for 37 years.

Marv Needles

The answer to this question may be “yes” to either, depending on one’s circumstances. You may get satisfaction by listening to one of the “talking heads” on NBC, ABC, CBS, FOX or any of other networks that read their crystal ball daily. But you need to consider your specific position in terms of job, family needs, desires and even schools of choice.

In fact, there are advantages and disadvantages to both renting and buying. Let’s first look at renting. I know some of you are expecting this article to support buying and to suggest that you immediately call a Realtor; not so. There are many “up” sides to renting. First, the term is usually for a one year period and, in most instances, the period can be extended for a second year, third year, or even longer. I once had a tenant in a property our firm managed for more than ten years.

For the family who is relocating to a new geographic area, a rental offers the opportunity to experience the area and to discover, before buying, the neighborhood that might best suit individual or family needs. One consideration may be employment that is temporary in nature. Another may be the anticipation of marriage or a new family member (baby or pet) which might necessitate a larger residence. And, as a renter, you can leave when you want, and you don’t have to wait for your house to sell before “moving on.” In today’s economy, the renter, while desiring to buy, may not have the down payment or the credit score to qualify for financing. A good rental record is helpful when trying to qualify to buy at a future time.

Surprise, surprise, there are also “down” sides to renting: If the property is in foreclosure, the renter may have to leave with just thirty days’ notice. The law states that a foreclosure does NOT automatically allow the lender to force a renter out. The lender can only require the renter to vacate when the lender has sold the property to a party who will use the property as their primary residence; and they must give the renter thirty day’s notice. Otherwise, the lender is committed to the terms of the lease.

There are other issues that a renter may face. One is that they are at the mercy of the landlord-from-hell who is less than honest and cooperative, and they may find themselves in a less-than-friendly environment. While the landlord (and tenant) has obligations under the “landlord/tenant act” (F.S. Chapter 83), many landlords do not abide. I’m referring to Florida legislation; legislation may vary from state to state.

Now let’s look at why you should consider buying. To do so, first you must have funds for a down payment, a reasonable credit score, and adequate income to support the cost of ownership. You should also anticipate that the home will be used as your residence for the next three to five years, or longer.

Now for the benefits: As an owner you cannot be evicted at the end of a one-year lease due to a sale, or at the whim of a landlord, for instance, because he, or she, doesn’t like the behavior of you or your kids, or the kind of car you drive, etc.

As an owner, you pay your own mortgage, not the landlord’s mortgage. While you should not expect to make a fortune, there is the benefit of “forced savings” which are derived from the principle reduction with each monthly payment. In addition, while prices are not increasing in most markets, in many markets, price increases are expected in the next three to five years that will result in increased personal equity for the owner, rather than a landlord.

Lastly, the pride of homeownership has continued to be one of the most mentioned when people are asked why they bought their house. Try to remember when you bought your first house; wasn’t pride a factor. If I could remember that far back, I would probably say “yes”, too.

While the foregoing is related to personal circumstances, there are other issues to be considered: inventory is high, allowing a buyer to find a property that best fits their needs; prices are well below replacement cost; and interest rates are at an all-time low. Fact: a 5-year ARM is hovering in the 3.5% range and a 30-year fixed in the 4.5% range. Here are the related numbers: the ARM relates to a payment of $4.49 per thousand ($1,122.63 per month for a $250,000 mortgage); and the fixed relates to a payment of $5.07 per thousand ($1,267.50 per month for a $250,000 mortgage).

Now, since my space is limited and I’m under the gun to submit this column within sixty seconds, it’s time to give you some final thoughts. For the person, or family, who is in a position that requires a short-term commitment, renting is the only way to go. If ownership fits your circumstances, now is a great time to make the jump.

Marv Needles is the broker/owner of ERA Flagship Real Estate which he founded in 1973. He has been a full time resident of Marco Island for over 40 years.

Ladies, when was the last time you went shopping for perfume? You can buy perfume at Sacs Fifth Avenue or Nordstrom’s or you can buy perfume at Wal-Mart or Target (pronounced “tarjae”). While I can’t tell the difference (it’s a man thing) most of the time, I do know that at Sacs and Nordstrom’s you’ll pay much more for that “special” formula exclusive to pricey stores. Does the produce cost that much more to produce? I’m not an expert on the subject; however, my sources (I took an oath not to reveal them) tell me the production cost is not significantly higher, if at all. Now let’s examine why you might buy the high-priced product over the “other.”

Some of the ladies I interviewed (I can’t give the names without being subject to harsh retribution) for the column stated that they liked shopping and being seen at a Sacs or other high-end store. Some said they were impressed by the marketing as viewed on TV or in a magazine; others indicated that they like being pampered by the “beauty consultants” (I think that’s what they call themselves). I can now hear some of you saying, “I think he lost it, again; what the ____ does this have to do with real estate?” Good question! It’s about staging. The more one does to “position” a product in the marketplace, the more likely it will sell and for a higher price.

Since I don’t want to be criticized by the minority population, I think I also need to present the male’s perspective. Since I’m writing from my office with a nautical theme, let’s talk about boats. When was the last time you saw an ad for a boat that didn’t have a bikini-clad damsel encouraging you to buy. Even a small “fishing” boat is promoted by that damsel. How about the manufacturer of ski boats or sail boats, there’s that damsel again? That damsel is about marketing or staging.

Now to real estate. When was the last time you visited a “model” home being presented by a builder or developer? I’ll bet it was “staged.” The first thing you would notice is that it was furnished by a professional interior decorator. Next, it had some additional amenities or upgrades. The price of the home or condo quoted didn’t include the furniture or the upgrades. If you have to ask, “Why do they do that?” you probably just graduated from elementary school. It’s elementary, my dear Watson.

If you’re asking as to the purpose of this article, for which I’m way underpaid, it’s intended for those of you who are trying to sell, or considering the sale of, your home or condo.

Staging is probably the most ignored factor for sellers when they decide to sell their property. While I’m not suggesting that one invest a Brink’s truck full of their precious funds to do a complete renovation and refurnish the home, do look at what might make it more appealing. A short time ago, I showed a couple a property that was a perfect fit for their wants and needs. The property needed painting and furnishing but the price was perfect; and when totaled, fit within their budget. The showing was a disaster. They had seen another (duplicate floor plan) that was completely decorator furnished and priced considerably more. If the owner had invested enough to repaint the unit and get rid of some junk, the “sold” sign would have been erected.

Marv Needles

Here’s the point. In today’s market, while everyone seems to be looking for the lowest-priced property, most expect one that shows well. It reminds me of someone I met that stayed at a low priced motel and complained that it did not come close to their last stay at a Marriott. Buyers that are “bottom fishing” still don’t expect a total turnoff.

If you want your home or condo to show at its best, contact a Realtor or consultant who has experience in this arena. To be competitive in this market, you may not need to invest any dollars, just some of your elbow grease. Many times a small investment will return many dollars and result in a quicker sale.

Marv Needles is the broker/owner of ERA Flagship Real Estate which he founded in 1973. He has been a full time resident of Marco Island for over 40 years.

Most buyers that acquire residential property in the Marco Island/Naples market choose the second or third; bad decision. Let me explain my view on the subject. (My view is not accepted by some, but I’ll let my track record speak for itself.)

If you are considering the purchase of residential property as a pure investment, as I have written before, don’t expect to “fall in love” with it. I once called a client and told them of a property that fit perfectly with their investment plans. I provided a financial analysis and they agreed that it was just what they were seeking. I then told them that I would send the paperwork to move forward. Their response: “I want to come see it first.” Since I had been looking on their behalf for some time and understood exactly their mission, I was set back. After gathering my thoughts, I asked the following: “You own stock in several firms listed on one of the exchanges. Have you ever seen the certificates?” Their response: “No.” They still wanted to see the property.

The point is that, assuming you have absolute trust in your agent, you should not need to visit the property. I’m sure that many of you are thinking “Now he’s lost it.” Maybe so, but I have helped many clients purchase, without seeing the property, real estate investments; and I have done so myself with good results.

The purpose of this discussion is not to tell you to never inspect a potential purchase, but to consider the circumstances. There are times to do so and times when it is not necessary and quick action will result in substantial gains. But again, if it’s for “investment,” don’t plan on “falling in love.”

To support the intent of purely financial return, one can buy for expected return either from “holding” or from annual income stream. If “holding” is the intent, one should have an “investment plan.” The plan should identify a timeframe and include an anticipated return. That is to say, if the anticipated return is reached, arrange a plan to sell and don’t get greedy.

On the other hand, there are some who seek the opportunity to acquire property based upon an annual return. Most commercial properties are acquired with an annual return in mind. Whichever avenue is pursued, do your homework or employ a real estate professional who has a history in the local market and has a good track record with the type of investment you are considering. A more detailed article on real estate investment will be featured in a future publication.

The second reason to buy is the acquisition for you or your family’s enjoyment. While it’s nice to know that your financial statement will improve with the age of the home, the purchase of your (primary) home should include factors other than a future value. What does the family need and what would provide the lifestyle expected from living day-to-day in the home? Does the home have what the male of the household expects? Does it have what the Mrs.—or Miss—expects? (If it has what she expects and not what you want, you lose!)

What about your kids or the grandkids? I have a client who started with a condo on the beach, later bought a “vacation” home on the water, and now has a blast, fishing from the dock and swimming with the grandkids in their new “private” home. While the client would like to see some property appreciation, their experiences are priceless. By the way, their house is occupied exclusively by their family and friends; no rentals.

The third classification previously stated is that of a property (house or condo) that is intended for investment, but the family will use from time-to-time as a vacation home. An important consideration here is the rent-ability of the property. If you intend to have the property available for rental throughout the year, be aware there are many condos that restrict rentals to a thirty-day minimum; some have more restrictive covenants. Another factor may relate to a single family residence. Does it have a pool? When our firm was in the short term rental business, we would not accept into our program houses that didn’t have pools.  Homes with pools but no heaters were also not accepted as a pool without a heater was nearly impossible to rent in our market.

There is one additional class that one might place in the category of #2 or #3. That is a home or condo that one purchases for personal use, but needs to rent it to either satisfy the IRS or help defer some of the expenses related to the ownership. My wife and I purchased a vacation property, but we have to make it available and rent it, since we used the funds from 1031 deferred exchange (an IRS code definition) to purchase the property. Over the past years, I have sold numerous properties to clients who needed the income to help offset some of the expenses. If that’s what you have in mind, make sure that you can carry the load in the case that the rental market is weak.

Now it’s time to go out and support your local Realtor.

“The average sale price for a single family home was $696,089 in June 2010 compared to $685,339 for May 2010.  The average sale price for all properties sold increased from May 2010 to June 2010 from $492,922 to $502,598 respectively. Active listings for Marco Island only properties decreased 2.80 % from May 2010 to June 2010 and decreased 5.51% from June 2009 to June 2010,” Ackerson continued.

For more, go to www.coastalbreezenews.com.

Realtor Support Network (RSN) members network at La Casita. Photo by Jeane Brennan

An important leg of the Marco Island Area Association of REALTORS (MIAAOR) is the Realtors Support Network (RSN). RSN is made up of approximately 50 Affiliate Members of MIAAOR and is composed of businesses in the community who have the means to contribute towards successful real estate transactions. The attorney, lender, title insurance provider, appraiser, inspector, interior decorator, contractor, mortgage broker, banker, gardener, and many other local businesses form a cohesive team ensuring a smooth and trouble-free transfer of property, which can turn out to be a win-win situation for all.

When the seller and the buyer agree on the price and the terms of sale of a property, the Realtors®, in consultation with and on behalf of their customers will call on the members of the “Realtors®’ Support Network” or RSN. These service providers are all highly qualified professionals and are Affiliate Members of the Marco Island Area Association of REALTORS^®.

Left to right, Betty MilGilvray, President Elect Bill Filbin and Xiomara Martinez. Photo by Jeane Brennan

MIAAOR is located on 140 Waterway Drive. For more information on either MIAAOR or RSN go to marcorealtor.com or call 239-394-5616.

Today we’re witnessing a tragically different story about oil. The economy of the communities on the northern coast of the Gulf of Mexico is in serious trouble. The story is not related to the U.S. economy. It is about the gulf, “beaches,” and the related enterprises. The focus of the oil issue is solidly on the upper gulf coast, but the spill has had an extended effect on the entire west coast of Florida.

In southwest Florida, bookings (hotels, resorts and vacation homes) are down. In talking to some of my colleagues in the vacation rental business, they are experiencing cancellations due the media. The typical call: “Since there is oil on Florida beaches and it’s coming your way, I want to cancel our Florida vacation.” One agent told me they have added a “money back” policy if oil is found on the local beaches. Others are allowing a shorter cancellation policy in case there is a threat.

“This is supposed to be a real estate column,” you say. And it is. The point of describing the oil issue in southwest Florida, and more specifically Marco Island, is that vacationers become home, and condo, buyers. With vacationers being potential buyers, when the number of vacationers is diminished, the sales numbers go down. Now we’re not talking huge numbers, yet. The Marco Island/Naples area has not and probably won’t be as effected as the northern gulf, but the threat of oil is a factor and may be for some undetermined period.

Consider when Wilma visited Marco Island. The world thought we were annihilated. We had calls from nearly every state in the union and several European nations. I believe that until they put a plug in the well, there will continue to be uncertainty in the coastal Florida real estate market.

Speaking of Wilma, within a few months after she swept through, people began to realize that the reports (thanks to the national media) of Marco Island’s demise were vastly overstated; and the real estate market returned to status quo. The oil issue will be resolved. It’s a matter of when. There is no doubt that environmental issues have been created by the spill and there is more to come. But let’s look at history. Mother Nature has a way of thriving in spite of all that we humans throw at her.

Back to real estate and my opinion of today and tomorrow. I’ve already made some comments on today, but I have a few more, so here goes. We continue to witness too many foreclosures and short sales. While there aren’t huge numbers on Marco Island, they do exist and will continue for, my guess, another twelve to eighteen months. The issue is far reaching because “what happens in the world stays in the world”; and we are part of the global economy. When the rest of the country is in a recession, Marco Island isn’t insulated from it. Therefore, with many foreclosures and short sales throughout the country, Marco Island can’t recover with the same zeal as in previous post-recession periods.

Now for the positive stuff: coastal Collier County (Marco Island and Naples) real estate is beginning to see the light at the end of the tunnel. The recovery isn’t, and won’t be exuberant. But due to the beaches (oil free), the climate and many amenities, people have begun to look to the future and some high-end activity has been initiated. It seems that those who have the comfort of unlimited finances are again choosing Marco Island and Naples neighborhoods for themselves.

Last comment: until the banks become friendlier to the consumer and the small business owner, the economy won’t get beyond a spurt. But after the past few years, Realtors and consumers welcome a “spurt.” A spurt beats a “wreck.”

Marv Needles

As a buyer, you want to ensure there is nothing wrong with the house you intend to buy.  While you will  want to know the condition of the house if it’s not a new house, you can expect that it won’t be perfect. (Even a new house isn’t going to be perfect).  When my wife and I planned our dream home, we spent nearly two years developing and drawing plans, redeveloping and drawing plans (they didn’t know what a CAD system was then), and more redeveloping and drawing plans. When we finished with the plans and watched the house come together (nail by nail), we still thought we had planned perfectly. Guess what? You guessed it!  After residing in our new home for about a week or two, we discovered oversights that could have been easily avoided if we would have considered the issues before completion.

When looking for a home for you and your family, you will want to find the one that best suits your wants and needs. That being said, before you begin the “looking process,” make a list of your absolutes and your wants. As an example, you may list a four-bedroom home as an absolute, but if the house meets other criteria, you could settle for a three-bedroom home; that makes it a ‘want,’ not an absolute.

About this time you’re asking what this all has to do with house conditions, and I say, “Hold on, I’m getting to it!”

The issue of condition has different meanings. One is what conditions you can accept (design and amenities, etc.) and the other is cosmetic and functionality of systems. The first is described above. Once you find the house that best meets your absolutes and wants, it’s time to negotiate the price and terms. Now to the terms: the standard contracts used in the Marco Island/Naples market, identify the buyer’s opportunity for a “home inspection.”

I’m not going to detail the terms of the inspection as identified in the standard contract (that’s for your realtor or attorney to do), but you need to know prior to signing an offer to purchase the property the difference between valid issues and cosmetics. Cosmetic “issues” are NOT the seller’s responsibility to cure.

As for the inspection: be sure to employ a licensed inspector and check their credibility. Your attorney or Realtor should be able to provide you with a list. You want to be sure that the inspector does a full inspection, including general inspection of electric, plumbing, A/C, appliances, etc. Further, you want to be sure the pool is working properly (if there is one). Have a roof inspection if it’s a house; and have a pest control inspection for ‘wood destroying’ critters. By the way, carpenter ants or termites may not be grounds to terminate the contract.

When you review the report, if you don’t like to spend a lot of time reading meaningless info, go directly to the summary page. It will identify the conditions of concern. Usually you will find details of the listed items in the following pages. Please remember that cosmetic issues are often found on the summary page. Again, the sellers are NOT obligated to cure such issues.

If there is a home inspector reading this, I apologize if I offended you. I realize that you must include certain documentation for your protection, but in reality, some of it is not relevant to what you observed, and thus it is of little or no value to the customer. Also, if you presently do so, please quit identifying “cosmetic” issues on the report. It only contributes undue stress to both the buyers and sellers.

Now the closing has come and gone and you are the new owner; what next? The hot water tank goes out a week after you take title. While problems usually don’t manifest themselves early, they can occur. I suggest that you consider a home warranty. I have had many buyers benefit from having a home warranty. If you do, choose a reputable company that has service agreements with local contractors. If the A/C goes out the when the temperature is 90 degrees, you don’t want to wait for service from a firm located in Tampa or Miami.

Last, a message for sellers: I suggest that you provide a home warranty with your offering. It makes the buyer more comfortable with considering the purchase of your home; and when you consider the price one pays for a home and the relatively low cost of a warranty plan, it’s an important factor. Further, statistics show that a house will sell faster when a warranty is included.

Marv Needles is the broker/owner of ERA Flagship Real Estate which he founded in 1973. He has been a full time resident of Marco Island for over 40 years.

Marv Needles

If you sincerely want to buy a home (condo or homesite) be reasonable. In these times, Realtors are having to deal with some pretty unreasonable and even nasty people. Now I’m sure that doesn’t apply to you, but ask any Realtor; 9 out of 10 will support my observation.

The following scenario is fictitious and any resemblance to an actual occurrence is strictly coincidental.

Here’s the way it goes. A property that may have had a value three years ago at (take any amount) $500,000 is now being offered in the range of 50% to 60% of that. “Why is the price so low?”, you ask. It’s because an owner wants to sell and that’s what it’s going to take; and that’s at, or close to the appraised value.

Now enter the so-called buyers. The listed price and appraised value is at (any price will do), let’s say, $300,000. After showing 37 houses (yes, that does happen), the buyer decides on one. The offer is $200,000, nearly a third of the appraised value. The owners counter at $275,000 because they are motivated to take their bruises and “move on.” The buyers return at $205,000, add they want a home warranty and all the furniture. Now everyone, including the owners, the listing agent, and the buyer’s agent are wondering about the mind-set of the so-called buyers. Are these buyers or people who have nothing better to do with their time?

In the end, there are four losers: the owners, the owners’ agent, the buyers’ agent, and the buyers. Yes, the buyers. The owners are upset and discouraged because they thought that they could plan to “move on”; the two agents got nothing for their efforts during the process; and the buyers passed up a good value‚—assuming they were buyers.

Now this may sound sexist, but this seems to be a “guy” thing. In conversations with Realtors in our office and outside our firm, the story is the same. “I found them the perfect house for them. The Mrs. fell in love with the home, but the guy was a real _______!” One of my experiences ended with the wife and son leaving the island without the husband and not speaking to him for nearly a week.

While the owners and the owner’s agent go back to square one and continue to market the property, the buyer’s agent now has to decide whether or not their customer is worth the effort. Don’t forget that the agent has already shown the “buyers” 37 houses. My personal advice to the agent: “Fire the client and go fishing!”

While similar stories do exist, they don’t represent the majority of the Realtors’ experiences; most sincere buyers are reasonable and a pleasure to represent. Some often become friends of the sellers.

If you are concerned about getting a “fair” price for a home, make the offer subject to an appraisal. A reasonable seller should accept such a proposal. In any case, if the purchase is subject to financing (say of 80%), if the property doesn’t appraise at the offered amount, you can walk.

If you’re a “pure” investor, start by employing a knowledgeable and experienced Realtor; and let the Realtor know up-front that investment is your game.

If the lifestyle of the Marco Island/Naples area (or any other community) is what you seek, when negotiating to purchase a home (whether primary residence or vacation home), be reasonable. Life is too short to fight the system. In the end, you want to be a “happy camper” in your new home, not in the hospital with a coronary.

Marv Needles

There have been some great times for a real estate investment; and there have been some that were less than exciting (the past few years). However, the time to buy may be now. Read on and you may thank the publishers for allowing me to write this column. The following does not reflect the opinion of the Coastal Breeze News. (If I don’t say that, they’ll put it in anyway.)

If I had a million dollars sitting in my cookie jar, I would buy real estate now. The real estate market, like the stock market, offers some great investments and some bad investments. The key is to know the marketplace. Up until the 1980’s the catchphrase for investing in real estate was “location, location, location.” In the early 1980’s, due to one of the worst real estate markets, due to high interest rates (18% to 20%), the catchphrase was modified to better express the mood of investors: “location and timing, location and timing, location and timing.”

Today, there seem to be several signs of an improving economy. If you don’t believe me, check out the newspapers and the nightly news. If it’s found there, it must be the gospel. Reports indicate consumer spending is up, people who moved from buying in upscale stores and switched to the Wal-Marts and the “dollar” stores of the world are now returning to their previous grazing pastures. Further, sales of high priced products, auto, appliances, TV’s and other goods are on the rise. The only doubt lies in the employment (or unemployment) numbers; and the bottom seems to be close at hand. All that said and assuming relative accuracy, with the significant positive reflection of the stock market, real estate should be next in line.

Back to my million dollars. In today’s real estate market there are some absolutely great opportunities and I would take my million and buy. As previously stated, timing must be considered. It is my opinion that all property will appreciate in time; but the time and the property must be coordinated. While one property may appear to be a great buy, the rate of return may not be as good due to the time it may take to realize the return. “What’s he talking about?” I heard some whisper. You’ll discover my meaning later.

There are two basic types of real estate investors: one has the desire to make a quick buck; and the other is in it for the long haul. For an investor who wants the quick buck, he (or she) wants to be able to flip yesterday; or he or she may want to wait a little longer to benefit from long term capital gains. For this type of investor, one must look to the inventory of a specific neighborhood, the type of property (maybe commercial) and the absorption rate (how fast properties are selling).

Let’s take a look at a specific market. In the last several months, lower priced houses have been sailing out the door, but the higher-end product isn’t getting much attention. That said, if an investor wants to buy a house, fix it up, and put it back on the market (flip it), the investor has a better chance of a quick return by working in the lower end market. The “lower-end” market will vary from community to community. While there may seem to be a greater return in the higher end property, every day of the “holding period” lessens the profit; and waiting for the high-end market to return may negate any profit anticipated.

Now let’s assume that the market is on a rebound. After the past cycles, the higher end properties made the first move upward. Ironically this cycle seems to be just the opposite; the lower priced properties are selling and others are slow to respond. However, if all indications are correct, the affluent will be returning to the market and buying what they want because of the property, not because of the price. People don’t buy a new Cadillac, Lexus, Porsche, or Bentley because of the price. They buy one because they want it.

Our contacts (the affluent ones) tell us that they are simply in a waiting pattern. “I wonder what they’re waiting for,” you ask, “since it’s such a good time to buy?” These folks want assurance; and assurance that the economy is really on the rebound. It is my personal opinion that, considering all other issues, time is the dominating factor; and if the positive signs continue for another six to eight months, we could be witnessing a return of the higher-end buyer in early 2011.

Historically, once the high-end begins a move upward, middle priced properties soon follow and  appreciation begins; and then it becomes a factor of basic economics, supply and demand.

“I’m not a high-ender, but I’m looking for a good investment, what would you suggest?” you ask.

Back to my million dollars. It is my belief that residential waterfront property will experience the greatest return over the next few years. That includes vacant homesites and low-end waterfront houses. Keep in mind that due to a variety of factors, the development of waterfront homesites is over for coastal Florida.

They each have their unique advantages. The house (it must be habitable) can be used as a vacation home or rented. If it’s a home that is in much need of repairs and it’s a “tear-down” candidate, move on. If it’s rentable, the rents won’t offset the taxes, insurances and maintenance, let alone the debt service.

Consider the vacant waterfront homesite. That’s where my money would go. Now, I suggest that you don’t go out and take “your” million and buy just any waterfront lot. There are some that have advantages over others. Only an experienced real estate professional can explain the advantages of each based upon “location, location location.”

Marv Needles is the broker/owner of ERA Flagship Real Estate which he founded in 1973. He has been a full time resident of Marco Island for over 40 years.

About four years ago, we decided that we needed a place to go to get away from the day to day grind of operating three businesses: a real estate firm, a vacation rental firm and a home building operation. The bottom line was, after 60-65 hours a week, I needed a place to recharge my batteries; and a chance to lower my handicap.

In 2005 we contracted for a house that was under construction; and in the spring of 2006, we closed on the house. After the second visit, two months after closing, we decided that if we were going to get the full benefit of our new acquisition, I needed to reduce my work load; and on the drive home (home is Marco Island), the decision was made: close the building firm. I stopped taking new contracts and finished the remaining houses within 10 months. I now have reduced my work load to 35 to 40 hours a week and fit in 2 to 3 round of golf a week.

Now to the point of this column for which I’m way overpaid: if you’re considering obtaining a vacation home you need to give consideration to many options.

First you should not look to the home (or condo) as an investment. While it may become one, and in most scenarios it is the result, the focus should be to the personal benefits that you and your family will receive by owning the vacation home. While I won’t dwell on a price point (you know what you can afford better than I), you need to determine if you need some rental income to offset some of the expenses. Before we go any further, if you need a positive “cash flow” while paying a mortgage, forget it. After 40 years in the business I can’t remember anyone experiencing a positive cash flow unless they owned the property free of any liens or the mortgage was minimal.

Another subject that needs to be addressed is whether or not you need, or want, to rent your vacation home. In my family, we rent the property since it was part of a 1031 tax deferred exchange and the previous property was an investment. (If you want more on that issue, e-mail me.) If it were up to my spouse, we wouldn’t let a renter near our vacation home. She usually wins such discussions, but she let me win this one. If you need to rent the home you should not count on the amount of income your Realtor says the home generates. That is not to say the Realtor is trying to misguide you; the fact is that  vacation markets can fluctuate and today’s market is a good example. On Marco Island, rentals were significantly lower in 2009 and 2010 than in 2005, 2006 and 2007. Another factor may be the property itself. Several years ago, the demand for condos outpaced houses, today the house with a pool is in high demand.

To the most important factor: what size home and what amenities will best suite you and your family. When we decided we were going to buy a vacation home we first considered a geographic location. We first travelled to Georgia (about 60 mile east of Atlanta) and then South Carolina. We discovered that Reynolds Plantation, while a beautiful community, was too hot in the summer and South Carolina (coastal) was not much different than Marco Island. Everyone said that we should go to North Carolina, that’s where all Floridians go. We’ll we decided that we would check it out.

We set out the day before Katrina was to hit Marco Island and we had a plan. Yes, Katrina came across Alligator Alley, from Ft. Lauderdale and was headed for Marco Island. Ironically, we got in the midst of the aftermath of Katrina in North Georgia after it hit New Orleans. Our plan was to visit 4-5 locations IN THE North Georgia/ North Carolina area and then decide what would best accommodate us and our family (4 adult kids and 9 grandkids).

As it was, the first community we visited met all expectations. For those of you from the Atlanta area, the Mountains of Big Canoe is a little over an hour from downtown (don’t get caught during the commuting hours).

Now I know you’re anxiously awaiting the purpose of this column, so here goes. Whether looking for your vacation home in Marco Island, Naples, the mountains or anywhere else, your first decision should be based upon what will give you and your family the most enjoyment for the next several years. If you find what you want, don’t get an attitude when negotiating the price. We paid full price and we’re elated with the amenities and enjoyment provided to ourselves and our family.

Is it worth today what we paid for it? I honestly don’t know and I don’t care. We bought it for our family and we will continue to enjoy it whatever the value of today or tomorrow.

Marv Needles

Marv Needles is the broker/owner of ERA Flagship Real Estate which he founded in 1973. He has been a full time resident of Marco Island for over 40 years.