Sometimes I take it for granted the rest of the country has the same real estate market that we have in Sarasota but every time I deal with an out-of-town buyer I realize this is not the case so I have created this page to assist my buyers from out-of-town get a better feel for our real estate market in the hopes of saving you a little shock when you get here and realize you may have made a mistake.
It has become evident that most out of state buyers are using their local real estate markets as a “value comparison” or comps from other Florida cities that are not as desirable of places to live as Sarasota Florida.
Sarasota is a wonderful place to live, retire, and spend your winters. Therefore, our real estate prices reflect this demand. Sarasota is not Miami, we are nearly 100% tourist driven. Most of our residents do not live here full time so our real estate market has not been hit as hard as it was in other Florida locations.
Currently, I, and other investors and agents, feel there is not many fantastic deals left in the home market below $150,000 as things in this price point are starting to recover as a result of investor activity. A lot of the initial overhang we had in this price point was removed from the sales of these properties that took place when the government offered the home buyers credit. Between first time home buyers and serious real estate investors looking to buy at the lows, those properties were purchased in a hurry. Now in our current market, $150,000 will not buy you anything on any of the barrier islands. If you want to be on the beach, prices start at about $180,000 for a one bedroom, one bath condo with about 500-700 square feet. Even at that price you will have a very hard time finding anything in good shape. Currently there is not a single listing on Siesta Key that is a 2 bedroom, 2 bath condo priced under $200,000 and this includes any foreclosure properties. They are ALL gone.
If you are looking to buy at the bottom, you are likely to have missed the boat. The market here is starting to show a shift upwards and people are quickly snapping up what deals are left. By the end of this season, we believe what remains as a good value will most likely be gone and the market will have stabilized. In the past month alone I have seen the average Florida mortgage rates increase by 1/2 a point to 5%. Interest rates are rising as are the prices of the barrier Island properties. If you are planning to buy a property in Sarasota or the surrounding area you really need to consider doing it now.
In Sarasota Florida, off the barrier islands, a modest 3 bedroom, 2,000 square foot home is going to cost you about $280,000. (5 years ago that same house was selling for $500,000) It will be a standard home that will be about 10 years old. Most likely it will be in a nice community with mature landscaping. For most people’s taste, this needs to be your starting price point. The $250,000 to $600,000 market segment is what currently represents a “best opportunity” as there are still many great deals out there. There has been a very sharp decline in distressed properties on the market priced over $500,000 and I feel there is some solidity appearing in that price point as well. Homes priced over $1 million are a different story. If you are looking for luxury residence, home for sale in this category are priced below the cost to build them. If that does not signal the bottom, then nothing will. I am very surprised that more affluent buyers do not see the tremendous value that is available in this price point.
The storm has definitely passed and if you are looking for one of the last good deals available, this winter season will most likely be your last chance to get it. The smart money investors are buying properties up fast. Warren Buffet, AKA “The Oracle of Omaha,” put it so eloquently when he said “Be brave when others are fearful, be fearful when others are brave.” He certainly did not become the richest man in the world by making foolish investments or subscribing to the heard mentality.
Florida’s Famous Home Owners Association Fees
Along with your mortgage payment there are three other fees you need to be aware of, Florida has reasonably high property taxes (we do not have a state income tax), older homes that are not storm-proof will be hit with insurance rates 30 to 40 percent higher than average, and most of our communities charge a HOA fee to cover the landscaping of the common grounds. It is quite common to pay from $200 to $500 per month in HOA fees for a home in a nicer gated community. You need to factor these extra expenses into what you can afford when you are looking for a home in Sarasota. If you have any questions as to what the HOA fees are for a particular property, please ask.
Sarasota is the epicenter of Florida culture and art, we have the number 1 beach in Florida, we have more that 100 golf courses within an hour drive and many houses topping the million dollar mark. It is not cheap to live here but you certainly get what you pay for, Sarasota delivers one hell of a lifestyle.
I will do my best to help you find a home but if your budget does not start at $150,000 it is going to be very difficult to find you something nice in Sarasota for that price. A $150,000 home here is like a $75,000 home in the rest of the US.
On a final note, if you will be coming to town to look at Sarasota real estate I will dedicate my time to you while you are here but there are a few requirements I have. You will need to have a current letter of approval from your lender stating what amount your lender has approved you for, or you will need a letter of available funds from your bank if you intend to do a cash deal. I also require a buyers agent agreement to be signed so both of us are protected and in some cases I may request a fee that depends on where you are at in your search and the kind of information you are asking me to provide. I run a very professional business and work my tail off for my clients. I am sure you can understand that it is not fair for me to put off my qualified buyers, who have done what they needed to do to begin the search for their home, for those who have not completed the pre-approval process and just want to see what is out there while they are here on vacation. There never seems to be enough time to take care of everyone requesting my services the way I want to take care of them so I have to be fair and give priority to the people that have done their homework, have a goal they wish to achieve, demonstrated that they are serious about owning real estate here and working with me so I can make their acquisition a smooth one.
With all that in mind, if you are not approved, I can recommend the best in our area that can help you through the pre-approval process. I will also send you information on all the properties you are interested in before you arrive, but please understand I can not dedicate contact time with you looking at property if you have not been pre-approved for a mortgage. Not only for the aforementioned reasons, but most sellers in Sarasota will not sign an offer without proof you can qualify for the purchase of the property regardless of the agent you use. They simply are not willing to take their property off the market for someone that can not demonstrate they are qualified to buy it. “Financing contingencies” in purchase offers will see the offer declined and it will be a waste of everyone’s time.
Please feel free to call and explain your ideas and desires with me about owning Sarasota Florida Real Estate. I will be happy to discuss with you what to expect, explain the dedication I provide to out-of-town buyers, and the professional real estate services I provide. I also have many references from past clients which are available on request. After you speak with me and check my references, you will see why my Broker services are in demand. I have done a great job for my past buyers and I will do a great job for you as well.
