The Anna Maria Island Sun Newspaper

Vol. 12 No. 37 - June 27, 2012

REAL ESTATE

How risky is condo buying?

 

As humans we all have a different tolerance for risk. Some of us like the 80-year-old woman whose harness malfunctioned while skydiving will try almost anything. Others are convinced that jumbo jets were not meant to fly. Most of us are somewhere in the middle, which is a good thing for the real estate market.

As we all now know, buying real estate, whether it’s a single family home, condominium, townhouse or commercial property, comes with some risk not unlike buying stocks and bonds. Since there are no real guarantees, every buyer needs to find what his/her risk threshold is.

The Florida condo market was severely impacted with foreclosures and short sales, which has created a mixed blessing for potential buyers. On one hand, prices are depressed making purchasing more affordable. On the other, future foreclosures and owners who may not be paying their condo fees become the responsibility of all owners.

Verifying the financial health of condo associations has always been important, but is even more so now. If the associations are short on funds, cutting back on maintaining the common elements could very well be the first thing to go. If you’re considering a condo purchase, walk around the community and pay special attention to the landscaping, pools, tennis courts, exterior paint and any other common elements that could be suffering as a result of a financial short fall.

According to Florida law, if you have a written purchase offer on a condominium, you will be given a set of homeowner association’s documents to review. These documents will include articles of incorporation, bylaws and rules and regulations which basically will govern the association. But more importantly, what you need to review carefully is the most recent budget and reserves. These two financial documents will give you a good idea of how much money has been saved for future repairs. They will disclose special assessments and will also indicate owners who are in arrears. Also ask if there are any pending lawsuits against the association which may or may not be part of the financial package.

You will then have three days to review all of these documents, and you also can stipulate that you want to include an attorney’s opinion. During this time frame, if you find anything objectionabl, you have the right to rescind the purchase agreement without penalty. Just remember, when you buy a condominium you become one of a collective body of owners, not all of whom have the same financial discipline you may have.

All of this being said, based on the April Manatee County condo sales statistics from the Manatee Association of Realtors, the market appears to be doing pretty well. Closed sales were up 6.1 percent from 2011, and pending sales were way up at 12.3 percent for the same period, which is a very important future indicator.

In addition, the median sales price was up 13.3 percent, as was the average sales price at 6.6 percent from last year. The new listings show a zero percentage change, which means fewer properties are coming on to the market which could push sales prices up even further.

Most financial advisors and certainly all real estate professionals think it’s a great time to buy. And with the way properties have been selling on Anna Maria with multiple offers not uncommon, I would have to agree. Although buying real estate at this time may not be as risky as jumping out of a plane, it could still hurt when you land, as by now we all should know.

Real Estate Transactions
Real Estate Transfers from May 1 through 31
Sponsored by Alan Galletto Island Real Estate

Sold Date | List Price | Sold Price | Address | Provision | Property Style

Anna Maria

05/01/2012 469,000 435,000 830 N. Shore Drive 1467 3 Br/2 Ba SFR
05/07/2012 599,000 550,000 521 Loquat Drive 3246 75x102 3 Br/3.5 Ba SFR
05/09/2012 597,500 550,000 405 Pine Ave. 1930 3 Br/2 Ba SFR
05/09/2012 479,000 435,000 614 Rose St. 1552 50x100 3 Br/2 Ba SFR
05/11/2012 499,900 450,000 314 Spring Ave. 1620 52x145 4 Br/2 Ba SFR
05/15/2012 593,900 495,000 428 Pine Ave. 1258 52x110nyte 2 Br/1.5 Ba SFR
05/17/2012 549,000 500,000 408 Poinsettia Road 2288 67x103 4 Br/3 Ba SFR
05/18/2012 449,000 437,500 522 South Drive 1111 60x110 3 Br/2 Ba SFR
05/21/2012 599,000 585,000 111 Peppertree Lane 1680 83x106 3 Br/1.5 Ba SFR
05/25/2012 575,000 542,500 113 Peppertree Lane 1998 50x106 3 Br/2.5 Ba SFR
05/31/2012 394,000 327,500 607 N. Bay Blvd. 1188 50x100 2 Br/2 Ba SFR
05/04/2012 649,000 625,000 2 Park Bte III Ave. 06x95 Vac.
05/11/2012 369,000 335,000 115 N. Bay Blvd. 5 6x110 Vac.

Bradenton Beach

05/04/2012 495,000 440,000 1007 Gulf Drive N. # 103 1836 2 Br/2 Ba Condo
05/18/2012 119,000 105,000 2315 Avenue C # 3 488 1 Br/1 Ba Condo
05/18/2012 239,000 229,000 1801 Gulf Drive N. # 285 1080 2 Br/2 Ba Condo
05/18/2012 94,900 84,000 117 7th St. N. # 27 594 1 Br/1 Ba Condo
05/24/2012 244,500 230,000 1801 Gulf Drive N. # 235 1080 2 Br/2 Ba Condo
05/25/2012 264,900 250,000 1801 Gulf Drive N. # 287 1080 2 Br/2 Ba Condo
05/02/2012 349,000 332,000 104 2nd St. N. 1248 2 Br/1 Ba SFR
05/14/2012 249,000 225,000 2601 Gulf Drive N. # 102 1000 2 Br/2 Ba SFR
05/30/2012 375,000 330,000 1461 Gulf Drive N. # 12 1524 3 Br/2.5 Ba TH
05/25/2012 244,780 272,000 502 Gulf Drive N.# 104 735 1 Br/1 Ba Inc., Short Sale

Cortez

05/21/2012 419,900 380,000 3850 Mariners Walk, #713 1762 2 Br/1 Ba Condo
05/31/2012 99,000 83,000 10004 Cortez Road # 214 754 2 Br/1 Ba Condo
05/24/2012 849,000 775,000 12413 Baypointe Terrace 3198 3 Br/2.5 Ba SFR

Holmes Beach

05/24/2012 369,000 349,000 6925 Holmes Blvd. 960 45x88 2 Br/2 Ba 1/2 Dup.
05/29/2012 300,000 280,000 203 70th St. # A 1008 45x102 2 Br/1 Ba 1/2 Dup, Short Sale
05/02/2012 239,000 260,000 3801 E. Bay Drive 110 2316 4 Br/3 Ba Condo, Short Sale
05/03/2012 229,000 200,000 4001 Gulf Drive # 105 1106 2 Br/2.5 Ba Condo
05/09/2012 349,900 325,000 6500 Flotilla Drive # 185 1185 2 Br/2 Ba Condo
05/11/2012 219,000 195,000 727 Manatee Ave. # 24 1179 2 Br/2 Ba Condo
05/15/2012 645,000 620,000 5808 Gulf Drive N. # 209 1048 2 Br/2 Ba Condo
05/16/2012 429,000 411,000 3806 6th Ave. # 3806 1725 3 Br/2 Ba Condo
05/23/2012 650,000 607,000 5300 Gulf Drive # 205 1516 3 Br/2 Ba Condo
05/25/2012 189,900 183,000 4307 Gulf Drive # 103 1027 2 Br/2 Ba Condo
05/31/2012 299,000 273,000 3803 E. Bay Drive # 7 2350 4 Br/3 Ba Condo
05/01/2012 759,900 705,000 515 56th St. 1643 108x129 3 Br/2.5 Ba SFR
05/07/2012 489,900 480,000 507 72nd St. 1732 93x125 3 Br/2 Ba SFR
05/08/2012 565,000 540,000 524 69th St. 1803 80x113 3 Br/2 Ba SFR
05/11/2012 1,149,000 1,149,000 505 68th St. 3600 90x101 4 Br/4.5 Ba SFR
05/11/2012 349,000 348,500 2715 Gulf Drive 1280 50x100 2 Br/2 Ba SFR
05/15/2012 449,000 425,000 510 Key Royale Drive 1441 96x101 2 Br/2 Ba SFR
05/18/2012 435,000 402,000 306 67th St. 1134 Br/2 Ba SFR
05/18/2012 549,000 520,000 215 81st St. 2020 2 Br/2.5 Ba SFR
05/21/2012 899,000 831,000 217 64th St. 2600 50x117 5 Br/3.5 Ba SFR
05/21/2012 449,000 405,000 303 62nd St. # A 1200 3 Br/2 Ba SFR
05/24/2012 435,000 410,000 302 67th St. 1716 100x100 3 Br/2 Ba SFR
05/25/2012 539,000 534,000 7906 Marina Drive 1884 3 Br/2 Ba SFR
05/25/2012 439,000 405,000 301 72nd St. 1800 3 Br/2 Ba SFR
05/30/2012 749,000 740,000 8325 Marina Drive 1848 85x102 3 Br/2 Ba SFR
05/30/2012 334,900 315,000 604 Ambassador Lane 1256 85x102 2 Br/2 Ba SFR
05/31/2012 549,000 549,000 206 56th St. # A 2456 4 Br/3.5 Ba TH, Short Sale
05/10/2012 3,250,000 3,250,000 103 77th St. # A 13280 Irregular 4 Br/4 Ba Inc.
05/25/2012 219,900 199,000 3010 Gulf Drive 1760 50x105 3 Br/1 Ba Inc.
05/01/2012 759,900 705,000 515 56th St. 1592 127x131x7x117 3 Br/2 Ba Vac.

Source: Manatee County Property Appraiser’s Office


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