Sarasota homes for sale suggest “love-hate” relationship with investors & first-time buyers, reveals this month’s Realtors’ Confidence Index (RCI).
Sarasota homes might or might not be BEST buys.
It’s no secret, 1st time homebuyers and real estate investors are driving the housing recovery.
Any housing recovery requires these 3 essential ingredients. The question of HOW MUCH of each ingredient can the market sustain remains the unanswered question:
- $6,500 or $8,000 tax gift encourages buyers to get off the fence.
- Distressed pricing is another powerful factor kick-starting sales.
- FHA financing with low down payments excite 1st time buyers.
Click Read More below now for the “love-hate” relationship between 1st time home buyers, RE investors & a real housing market recovery. What impact do distressed properties have on market recovery?
DISTRESSED PROPERTIES BEAT UP THE MARKET
ROTTING PROPERTIES KILL
NEIGHBORHOOD PROPERTY VALUES
In the neighborhood in which I live are now 4 properties rotting away for almost 2 years with no A/C or removal of jungle conditions. Few “normal” sales have occurred in over 2 years, leaving appraisers to confront reality of distressed properties.
Inside each property is MOLD and leftover “junk” from previous occupants.
All four houses have been broken in to, with graffiti painted on the walls (btw, this is NOT a graffiti-kind of neighborhood either).
Each property just a couple years ago was manicured beautifully, probably reflecting the magnificent condition of the inside. Today’s horrible curb appeal would repulse all but the investors willing to tackle MOLD and uncertainty if the price is right.
Sarasota homes kill neighborhood property values, while rotting in hot, humid Florida! House #1
Homes Sarasota distressed property #2. Once upon a time, this was a beautiful home. YES, there really is a "front" door to this house....somewhere through the overgrowth.
Sarasota home #2 once featured a gorgeous swimming pool now deteriorating beyond dollars and "sense."
Sarasota homes for sale include #3 distressed property sitting empty for almost 2 years with NO a/c & TONS of bug-infested junk inside. Mortgage servicer finally started cutting weeds after I made repeated phone calls.
This is market reality throughout Sarasota and surrounding communities.
These 4 properties define “shadow” distressed properties rotting away in good neighborhoods, negatively impacting property values.
What is a “good” deal today?
According to the National Association of Realtors’ (NAR) Realtor’s Confidence Index (that is, a monthly survey of more than 50,000 Realtors), 39 percent of recent buyers (of which 51% are 1st time buyers) purchased a home with a Federal Housing Administration (FHA) insured loan in November.
That’s good.
The RCI results also indicated that distressed sales increased to 33% of all home sales last month, and that both investors and first-time home buyers are competing for these properties.
This could be both good and bad.
With so many distressed properties on the market, buyers treat ALL Sarasota homes for sale as distressed!
Clearly, this is not good.
Clearing hurdles all the way
to the closing table.
Another concern Realtors voiced is ongoing (negative) impact of the Home Valuation Code of Conduct on recent appraisals. Inexperienced or out-of-area appraisers continue to rely heavily on sales prices of distressed properties, even when other comps are available.
Whether or not distressed sales should be in utilized in property valuations, the reality is that distressed properties negatively affect values.
Property sales are good, especially when clearing out distressed inventory. Unfortunately, NON-distressed properties must compete with distressed properties. How far out of a 2-mile radius should an appraiser go to find non-distressed comparable sales if only distressed property sales are taking place within that 2-mile radius?
Sarasota homes for sale NEED to clear out distressed properties as quickly as possible to minimize collapse of NON-distressed properties. Market recovery depends on (and is grateful to) 1st time buyers, investors and FHA financing. Scroll down to comment on the latest Realtors’ Confidence Index.
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