I traded some emails with Mr. Wallace, the developer of Rapallo on 2/15/2012 and 2/16/2012, to ask him some questions about the square footage discrepancies in his Rapallo units. (Discrepancies between the county records and the marketing flyers he supplied when the original owners bought )  Why the square footage on the marketing information he provided to his customers is different and lower than the numbers recorded with Lee County. 

Below is the Q & A that took place, with my editorial comments at the end.

Michael Burke:

Hello Jim,

When you have a moment, can you call me 239-777-0473?  I wanted to talk to you about the square footage of the Rapallo units.   For some reason when we take a listing in Rapallo the sellers believe the square footage is "X" from the marketing floor plans.  When we check the tax records for accuracy purposes, in all cases, the square footage (you provided to your customers) is always less from the county records.  While this may be good for tax purposes, we really do not know what the proper square footage is or should be, without someone coming in to certify the square footage.

How were the square foot measurements taken for the Rapallo units?  From the inside? From the exterior?  Can you help shed some light on this?

Thank you!

____________________________________

Jim Wallace:

MICHAEL

The square footage for our marketing plans was derived from the actual architectural construction drawings.

We are aware of this issue with the county. In a couple of cases (The Rio Maggiore plan was one I remember) we reverified the numbers and found the county square footage to be incorrect particularly where the unit had square footage on the ground and second floor. Perhaps they did not count the stairway since it’s not designated to any floor.

Yes our measurement is from the inside block wall.

The simplist way to verify that on anyone’s plan is to measure the square footage allocated to the garage. You’ll often notice on a national builder (like Pulte, Lennar etc) floor plan their 18ft x 22ft garage is frequently shown at about 440 sq ft (110% of actual 396 sq ft). Measuring from the exterior walls is usually 109-111% of interior wall measurement.

This exagerated measurement for "condominium form of ownership" is incorrect but understandable. The majority of homes built by most national builders are single family homes or duplexes which are correctly measured from the exterior walls so it’s easy for them to err on concominiums.

Best way to understand size is a  2000 sq ft single family home is an 1800 sq ft condo.

Hope this helps.

JIM WALLACE      
Sent from Jim Wallace’s cell.

___________________________________________

Michael Burke:

Hello Jim,

Thank you for a quick response… maybe you can help me a bit further….when or if we find the county numbers wrong, how do we rectify them within the recorders office.  Tax records always supersede a companies flyers.  We have noticed the square footage on many units is less with the county versus the flyer (when they bought). The county has mentioned that the numbers they are using are the numbers that your company reported. 

Thank you again for your direction.

Michael

_____________________________________________

Jim Wallace:

The county’s numbers did NOT come from us. I do not know how or where the county got their numbers. I can only guess it was a misread of the as-built survey drawings or the architectural drawings. I know the county has told homeownersthey got the square footage from scanned drawings. What drawings? Was scanning done correctly? I have no idea. I just know we built what our drawings promised.

JIM

Sent from Jim Wallace’s cell.

_____________________________________________

Michael Burke:

Sent 2 times

Jim.

When we spoke to the county, they said the dimensions and square footage came of of the plans that were submitted prior to permitting.  While it is possible that the county could have misread or mis-scanned, but it appears the numbers came from your submitted drawings.  Can we take a look at them to help us and Rapallo homeowners out?  We really need clarity on this for marketing purposes.

Michael

____________________________________________

Jim Wallace:

Michael

We’ve already been down this road before with the Rapallo condo associatio and showed them our numbers were per the drawings (to their satisfaction).The condo association has a complete set of drawings. And of course the drawings are public record at the county. We do not lend our drawings. I suggest you pursue this with Sherry Slater, the association general manager.

Jim Wallace

Sent from Jim Wallace’s cell.

_________________________________________

Michael Burke:

Jim,

If you been down this road before, why is there still a discrepancy between the drawings and the tax records?  Who was responsible for making any corrections?   Rapallo?  The Developer? The County?    I find it very odd that you "been down this road before" and we still have discrepancies. 

I will contact Sherry Slater as you requested and get her input.  Please provide any contact info you may have for her.

Michael

___________________________________________

My editorial….. Many times when we take a listing in Rapallo we have conflict in the square footage as the home owner believes they have versus what the county has recorded.  County records always supersede marketing flyers.

I am a bit confused, Mr. Wallace said that he “guess” that the county misread or scanned incorrectly.   Mr. Wallace supplied the plans to the county prior to permitting and approval.  The numbers had to come from him.  “I know the county has told homeowners they got the square footage from scanned drawings. What drawings?”  The drawings that Mr. Wallace supplied to the county before the Rapallo project was permitted.  Maybe he forgot he had to supply the plans before permitting…

Mr Wallace states: “Was scanning done correctly? I have no idea. I just know we built what our drawings promised.”  I have to ask Mr Wallace…What drawings?  The Blue Prints?  The Marketing Flyers?  Can you be specific as to the the units being built, per the marketing flyers or per the plans submitted to the county?  WHAT IS THE TRUE SQUARE FOOTAGE AND WHO IS GONG TO PAY FOR VERIFICATION? 

The problem I have as a real estate professional, I have to market per the county records, until proven differently.   I can use the high square footage as sellers prefer, but if I sell a unit that is misrepresented, it could be a liability issue for me as well as the seller. 

Mr Wallace comments: “The simplist way to verify that on anyone’s plan is to measure the square footage allocated to the garage. “  Since when do you include garage square footage to living space?  Is this something new that was done at Rapallo that the real estate community is not aware of.  I am even more confused….

Mr Wallace indicates: “We’ve already been down this road before with the Rapallo condo associatio and showed them our numbers were per the drawings (to their satisfaction).”  Mr. Wallace still does not answer the question… he say “per drawings,” WHICH DRAWING?  THE BLUE PRINTS? THE MARKETING FLYER? WHY CAN WE NOT GET A STRAIGHT ANSWER?

In addition, IF we push the issue and find the units to be a higher square footage from the current county records, the units taxes can go up based on a higher square footage.  What do we do?  I have no idea?

I do know the sellers want to use the higher square footage and the buyers want us to verify the square footage, at the sellers expense.

As a Professional Real Estate Agent, I am bound to provide the best and most accurate data I can find on my clients properties.   Do you think these discrepancies have anything to do with the continued high inventory levels in Rapallo?  I don’t know… what I do know is that it takes team work from the developer, the buyers, the sellers and the REALTORS to have a successful transactions.  When any one of these entities are not cooperating to create a win / win situation, then we all lose!!!  

Rapallo Home Owners… do you have any ideas?  Help me help you!!! Please leave your comments below.

As Published in the News Press – 11-Feb-2012

In no secret that many experts have predicted that 2012 is heading in a better direction for the Southwest Florida real estate market, but how are potential buyers, both local and non-local, really feeling about it? With the number of closed sales in Naples, Bonita Springs and Estero, Florida increasing by 5% in 2011 from 2012, the fourth consecutive year of increases, buyers are really starting to feel confident. Additionally, the comparison in renting versus owning seems to favor owning more and more with each passing month. The point is that whether you’re a local looking to purchase a primary home or a seasonal resident looking to purchase that vacation or second home, now is the time to get in the game and it seems many buyers are ready!

First, when you compare the cost of owning a home to renting, you’ll find that buying may soon make more sense. Paul Diggle, a housing economist at Capital Economics, performed a recent analysis that showed record-low mortgage rates (with 30-year fixed-rate mortgages available under 4 percent now), and a 15 percent rise in rents, which are making more consumers take a closer look at buying. The national median monthly mortgage payment of about $700 has fallen to about the level of a median monthly rent check. If mortgage rates keep falling and rents keep rising, the equation will tip even further toward owning. While the costs may be a bit higher in the Southwest Florida market, the ratio of rent versus a home mortgage is moving in the same direction.

Case in point: a buyer who purchases a median-priced home and stays there for at least seven years would likely come out ahead by about $9,000 than if they chose to rent for those seven years according to Diggle. Diggle’s calculations factor in rents continuing to rise 3 percent a year, and housing prices staying flat for the next two years before rising in 2014.

Much of the decision to buy a house still depends on your personal finances and preferences, your career or family life, or level of financial security of course, but with market conditions improving and inventory decreasing, it doesn’t pay to wait much longer. And, if you’re comparing just the cost of owning and renting, buying a house may soon be the better choice in Southwest Florida, especially for locals and our seasonal residents looking to put down roots.

Second, general speaking mortgage rates are at their lowest levels in decades. It’s a combination which means affordability is up, so is now the right time to buy a home in Southwest Florida? You bet it is. What can be said with confidence is that now is a good time for buyers and investors to look at their local markets.

While you couldn’t ask for better marketing conditions to buy a home in Southwest Florida now, if you’re still not convinced, there are seven basic factors when deciding for yourself if now is the right time to buy.

1. Price. Home prices in Southwest Florida are the best they’ve been since before the the economic downturn, but don’t expect them to stay there long. The available inventory in Naples, Bonita Springs and Estero has dropped 23% during the last 12 months (2011).

2. Mortgage Rates. There’s no doubt that mortgage rates are low by historic standards. While there are stricter standards for obtaining that loan, it is not impossible for those who qualify. Lenders, however, will only make loans today that are fully documented. That means to get a mortgage, borrowers must be able to prove income and employment. The best strategy is to assemble application information in advance and to be pre-approved or pre-qualified before looking for a home.

3. Affordability. The combination of affordable home prices and historically-low mortgage rates means that affordability is strong — buyers with a given income can purchase more house in most markets than just a few years ago.

4. Rental Rates. As we touched on before, renting versus buying has taken a turn in favor of buying. Additionally, reports that rental rates have increased consistently in the last few years in Southwest Florida.

5. Taxes. Property taxes and mortgage interest are generally deductible. Investors can also write-off depreciation and ownership costs. Real estate deductions lower tax costs and effectively increase affordability.

6. Ownership. All real estate comes with what are known as a "bundle of rights." There are different rights and responsibilities associated with "fee-simple" homes and condos. A homeowners association can also impact ownership costs and amenities. For instance, one single-family home that belongs to a homeowners association may have access to a community pool while an identical house outside the association does not. Your real estate agent can explain the differences.

7. Personal Preferences. We each have different likes and dislikes that drive our choices. One person wants a condo in downtown Naples while someone else wants a resort community in Estero or Bonita Springs.

One thing I haven’t mentioned is that are some things in real estate you just can’t measure, like the sense of joy and satisfaction that comes from owning a home. While insignificant as they may seem when we talk a lot about investments and money, etc., it is still an important factor for many buyers

Written by

Andrea Stetson

Special to The News-Press

Although miles from the Gulf, its residents say they wouldn’t want to be anywhere else.

Sunlight sparkles like vibrant glitter off the clear, blue water.

Powdery, soft white sand stretches for three miles around curves, tucked into coves and in long flat stretches. Sailboats glide by, water skiers enjoy the always-calm surface, fishing poles dip in with a gentle plop and pull out with a little struggle and a wiggly fish on the end.

This is waterfront living, but it’s more than a dozen miles from the Gulf.

The infinity-edge pool at Miromar Lakes looks like it spills into the clear, blue 700-acre lake. / Andrea Stetson/Special to The News-Press

Click here to view all the active listings in Miromar Lakes Beach and Golf Club

• Miromar Lakes currently has 950 residences. When built out, 1,800 to 2,200 homes will line the lake and golf course.
  There’s a wide variety of residences from which to choose: beachfront homes, grand estate homes, estate homes, luxury villas, coach homes and condominiums.
  Residences ranging in size from 2,000 square feet to 10,000 square feet are priced from $500,000 to $5 million.

Miromar Lakes Beach & Golf Club, located next to FGCU and Gulf Coast Town Center in the San Carlos Park-Estero area, is the only community in Lee County that offers a true lake lifestyle. The community has won more than 100 awards and is the only development in Florida in 30 years to win the nation’s highest building honor: the National Association of Home Builders Gold Award for Community of the Year.

The 700-acre lake is the centerpiece of the community. Homeowners dock their boats in front of th eir homes or clustered in little dock areas. Some homeowners have their own little stretch of private beach, while others enjoy the main beach areas where they can stretch out in the shade under white canopy shelters.

Room after room, facility after facility feature lake views. Diners at the beach club sit just beyond the sand, munching on everything from shrimp and lobster dishes to quesadillas and burgers. The fitness rooms and spa feature large windows facing the water. There’s a private dining room with an Asian hardwood tree trunk table that stretches from door to floor to ceiling windows. Then there’s the swimming pool that seems to overflow past the pink and purple bougainvillea and into the lake.

“It’s a very unique feature to the community,” said Jeff Garard, sales associate. “A lot of people from up North … Michigan, Wisconsin, Illinois … are used to lakes and they are not used to salt water. We have no salt water and no red tide. This is different from everything else you will see in this marketplace.”

The lake is what attracted Dick Rademaker to move there in 2004. He had lived on Sanibel Island since 1976, but chose lakeside living over the Gulf.

As published in the News Press

By D. Michael Burke

Dave and Chelsea McNab, originally from Ann Arbor, Michigan, decided to finally purchase their second home in Southwest Florida. After several months of searching for a home, the couple just made an offer on a single-family home in Estero, Florida. Dave McNab doesn’t seem particularly anxious about diving headfirst into the area’s housing market. “I think it’ll probably appreciate, but it’s anybody’s game,” he said. “It’ll be interesting to see what happens.”

Interesting indeed! Here we are in 2012 – six years after our housing market began its downward slide, and zero years into a whole-hearted, full-fledged recovery. Not to worry though. The point is there are definite signs of recovery in Southwest Florida and many of the issues and conditions facing those who enter the real estate market this year can be assessed and even prepared for.

Here’s a rough guide to what home buyers and sellers in Southwest Florida should take note of in 2012.

The year things start to get better?

On the national scene, analysts are hopeful that this is the year home prices finally begin inching upward again. Lawrence Yun, chief economist for the National Association of Realtors, predicts that low interest rates and rising rents will lead to a 5 percent boost in home sales, with prices increasing by about 2 percent. And new housing starts should be 15 percent greater than last year, said David Crowe of the National Association of Home Builders. But according to RealtyTrac, foreclosures are also slated to rise, which could result in a flood of cheap homes on the market that could depress prices for a little longer.

However, the general consensuses is that housing prices are higher now than they were a year ago and inventory is lean, so it looks like we should be poised for some recovery in the Southwest Florida housing market.

FHA vs. Fannie and Freddie: Pros and cons

One of the big housing policy issues of 2011 was the lowered limit on mortgages backed by Fannie Mae and Freddie Mac in October. Congress had voted to decrease the ceiling of these loans, which are eligible for lower interest rates, from $729,750 to $625,500 — a crucial difference in a market like Southwest Florida. But the upper level was restored by Congress in November, after an intense lobbying effort from the housing industry. The loan limits are now back up to $729,750, but now it’s the Federal Housing Administration, rather than Fannie Mae or Freddie Mac, that’ll be behind those loans. Does that matter? Yes, it is a benefit, in some ways, to the high mortgage balance borrower because loans backed by FHA require a much lower down payment than others.

Lower down payment, lower interest rates — it sounds like a win-win for the buyer. But FHA has some disadvantages, too, particularly the higher price of its mortgage insurance premiums, which can cost up to 1 percent of the loan annually. Borrowers should closely work out the details with their lenders to determine whether an FHA loan really is the best deal for them.

Buyer beware

In the past, if was commonplace for the seller to provide a warranty that protected the home’s appliances, plumbing, electrical systems, and heating and air conditioning were all in good working condition. If those elements turned out to be defective, the seller could be held liable. If a home is sold in “as-is” condition, there is no guarantee about the state of anything in the home. If a pre-sale inspection fails to catch an on-its-last-legs boiler, for example, that’s simply the home buyer’s bad luck.

Those who are about to settle on a home do have a few options. One is to hire a buyer’s agent who will carefully examine the property’s conditions. Even better, a buyer could insert an inspection contingency clause that provides them with the right to conduct a home inspection, and then give the seller a list of those items that need repairing or replacing. The seller must then make changes or reduce the price.

Mixed policy issues that may or may not occur this year

There are several other potential policy changes afoot that could seriously affect the Southwest Florida market. One is elimination of the mortgage interest deduction, an action that has a swath of small-government fans behind it. However, in an election year, we will probably not see that happen anywhere. But possibly around the middle of this year, the Consumer Financial Protection Bureau will release a streamlined version of closing documents that should be easier for buyers and sellers to read and understand; the agency is currently testing new versions to determine what works.

The big elephant: Pending budget cuts

But the big elephant in the room is government spending. The debt ceiling talks this summer between President Obama and Congress resulted in hundreds of billions of dollars in cuts to federal spending that are already on the books — $460 billion to the Defense Department alone over the next 10 years. They won’t take effect until 2013, but that budget will be out early this year.

In a market like Southwest Florida, cutbacks play a significant role in home buyers’ mentalities. People don’t buy houses if they feel threatened; they want to stay in place until they feel okay to buy. Homes at the lower end of the market — rentals, condos and townhouses — probably won’t be particularly affected, but bigger houses may face a standstill in the market.

Of course, there is still no denying the activity we are seeing in the market like a jump in pending home sales as well as decreased inventory. Interest rates will continue to be favorable, thus making the purchasing decision even easier. The best thing you can do as a buyer or seller is to retain the best representation you can get. You need to find a Realtor who understand the Southwest Florida market and can help you navigate through local changes as well as national changes that may affect our market.

As Published in the News Press

By D. Michael Burke

Predicting trends during these market conditions is not easy. However, we’ve seems some positive signs that point to a successful real estate season in 2012. There are also many factors that indicate that now is the time to buy in Southwest Florida. Based on some of these factors, what can we predict for 2012 in our market? The point is that while no one can be 100% sure, not even the experts, we can still take what we now combined with historical facts and trends and make some predications that are definitely worth considering.

Based on 2011 history, here are five predications for your consideration:

1. Buyers will return to the Southwest Florida market. In 2011, a lack of consumer confidence in the overall economy dramatically impacted the housing market. Buyers were afraid to make a purchasing decision on any big ticket item. By the end of 2011, consumer confidence began to return and sales increased. Economic conditions will continue to improve throughout 2012 and consumer sentiment will solidify. Once that happens, home buyers will realize that now is the time to buy. Add historically low mortgage rates and a strong desire to own versus renting, and you’ve got this prediction “in the bag” so to speak.

2. Housing Inventory will continue to decrease. The inventory of homes in Bonita Springs, Estero and Naples, Florida has continued to decrease consecutively since 2008. 2011 inventory showed a 23% decrease over 2010. The biggest declines showed within single-family homes in the price category of $250,000 and below. Those units dropped by 814 between 2011 and 2010. Homes priced between $500-700,000 are 117 units less than 2010.

3. Sale activity overall will increase in 2012. In 2011, all price ranges showed increases over 2010 and we’re looking for the same result in 2012. Sales rose consecutively each year since 2006 and in 2011, sales are just 740 units short of sales levels in 2005, prior to the downturn. Foreclosures and short sales decreased as a percentage in the overall market and remaining units in the category are priced below $250,000. Sales for units over $1,000,000 have increased consecutively since 2009, showing an 11% increase in 2011 over 2010.

4. Mortgage rates will remain a driving factor in homes sales. As we already know, the Federal Reserve has already maintained that rates will stay low until 2014. This has been a major factor in deciding to buy over the last year and will continue into 2012. Other interesting statistics from www.realestateinvestordaily.com include:

o Younger buyers and first-time buyers are leaving the market. 37% of home buyers were first-time buyers, a drop from 50% in 2010. A typical buyer is now 45 years old, a jump from 39 years old in 2010.

• To attract buyers, “41% of sellers offered incentives such as home warranty policies or financial assistance with closing costs. The typical home sold at 95% of the listing price and 61% reported they reduced the asking price at least once.
• Single women are also leaving the home buying market dropping to “the lowest market share since 2004″at 18%, while married couples purchasing homes have increased to 64%, “the highest share since 2001.
• Referrals from families or friends account for just 41% of an agent’s customer base. Once a buyer selects you as their agent, you’ll have a loyal client because “nearly nine in ten buyers would use their agent again or recommend to others.
• Financial aspects of homeownership are important, but they do not stand alone as the primary motivators for the purchase of a home. The top three factors that influence their home purchase are quality of the neighborhood, convenience to job, and overall affordability.

5. Foreign Buyers will continue to take advantage of Southwest Florida Prices. It’s no secret that foreigners have been purchasing second homes here in Florida and throughout the Southwest Florida as well.   How do foreign home buyers impact our market? According to recent reports, International buyers are expected to buy even more in 2012. Florida has been the front-runner in International sales since 2009.  Condos continue to be foreign buyers’ residence of choice with condominium sales accounting for more than 70 percent of purchases. International buyers are largely cash buyers and buy homes at a higher price point. Recent statistics show that 1 in 10 foreign home buyers purchase in the Southwest Florida area.  But, they aren’t the only buyers attracted to our sunshine state.   As a result, home prices have risen while inventory has fallen. Additionally, by now you’ve probably heard the term “buy a home, get a visa”.  Another possible boost in the International home buyers’ market is the foreign home buyer visa; just spend $500,000 in residential real estate and receive a visa to live in the U.S. 

Nationally speaking, we aren’t the only ones who think 2012 holds improvement for many markets in the U.S. There is a growing belief among many experts that 2012 will be the year housing turns the corner and starts heading in a more positive direction. Of course there will always be the naysayers who say we are too optimistic, so it makes sense to share the beliefs of other credible organizations on this point:

Washington Post: “Housing Market and Economy Showing Encouraging Signs.”

The Wall Street Journal: “From Bottom Up, Signs of Housing Recovery”

USA Today: “Housing Outlook is More Upbeat”

CoreLogic: “CoreLogic’s chief economist Mark Fleming says housing statistics and the duration of the downturn to date indicate 2012 may be the year the housing market begins to turn the corner.”

Freddie Mac: “With the New Year comes a sense of cautious optimism. There are some positive signs in the job market and consumer confidence; housing is starting to raise hopes for continued gradual economic recovery.”

Fannie Mae: “The housing sector will likely take incremental steps forward in 2012 …according to economists at Fannie Mae.”

All in all, I think we’re in for an interesting and fruitful 2012 for the Southwest Florida Real Estate market. If you agree and need some assistance, be sure to find a Realtor that has an abundance of knowledge in our market and knows how to read the signs!

As published in The News Press

By D. Michael Burke

While we definitely like to keep an eye on our own market here in Southwest Florida, we also need to pay attention to what is going on nationally. We know our market is unique, BUT there is activity happening on a national level that will give us clues about our own market. The point is we should be paying attention to national activity as well as local activity, so we can ascertain the full picture about Southwest Florida.

Once such piece of activity of particular interest is Pending Home Sales. After falling for three straight months, the index that tracks the number of U.S. home buyers signing contracts to purchase existing homes took a high leap in October 2011, reaching the highest level of 2011. The National Association of Realtors’ (Realtor.org) reported that the seasonally adjusted index for pending sales of existing homes increased 10.4% on a monthly basis to 93.3, the highest reading since November 2010. October’s results were more than 9% above the same month in 2010.

Additionally, pending sales rose in three out of four U.S. regions. The biggest increase of 24.1% was in the Midwest. They rose 17.7% in the Northeast and 8.6% in the South and fell 0.3% in the West. Sales of both new and existing homes have been running higher than a year earlier. Prices, however, still remain weak nationally, given the overall uncertainty about high unemployment and the difficulty of getting home loans.

The increase still came despite warnings by other housing industry groups concerned about a decline in the maximum size of loans that can be backed by mortgage giants Fannie Mae, Freddie Mac and the Federal Housing Administration. Those limits fell on Oct. 1, though Congress later voted to increase the limits for FHA, which guarantees loans to buyers with down payments as low as 3.5%.

Additionally, three industry watchers had this to say:

Steven Wood, chief economist, Insight Economics: “This report suggests that home re-sales should be stronger over the next couple of months but at a level that is still fairly subdued. Pending homes sales have fluctuated within a relatively narrow range over the past year at an average level that is still relatively subdued.”

Michael Rehaut, builder analyst, J.P. Morgan: “We view today’s data point as more of an outlier when contrasted with several other major indicators of housing demand as reported over the last two weeks, which have demonstrated changes in the range of 1-7% … Hence, we continue to view demand overall as remaining stable to only slightly improving.”

Ian Shepherdson, chief U.S. economist, High Frequency Economics: “The index dropped by a total of 7% over the previous three months, so this is mostly a rebound rather than a surge from a steady trend, but it is welcome nonetheless. It also is consistent with the recent strengthening in homebuilder sentiment and the modest pick-up in mortgage applications. In short, something seems to be stirring in the housing market, though we would certainly hesitate before calling a definitive start of a recovery.”

Millan Mullraine, senior U.S. macro strategist, TD Securities: “Given that pending sales capture the initial signing agreement for the purchase of a home, it is a very good predictor of existing home sales one month ahead. “

What does this mean for our market?

First, let’s review the facts. A sale is considered pending when the contract has been signed but the transaction hasn’t closed. Pending sales typically close within one or two months of signing. A reading of 100 is considered healthy and is equal to the average level of activity in 2001.

So in our market, the question is how many of those pending homes sales are based on financing? Pending home sales go up, but actual closings may be questionable. Some of these closings collapse because buyers can’t get financing. However, in Southwest Florida we are seeing an increased percentage of cash deals in the $500K and below pricing point, as well as the luxury market; both from investors and buyers looking for that vacation or retirement home. Since the majority of homes sold here are cash, the likely hood of those deals staying together increases in our market.

Another factor contributing to the pending home sales in the Southwest Florida market are rental rates are increasing. Historically, there’s typically been a strong correlation between rising rental rates and rising home prices. However, that correlation has suffered in the recent years because of the downturn in the housing market. But with rental rates now well into long-term gains here in Southwest Florida, pressure is mounting for renters to jump to home ownership if only because it’s becoming cheaper to buy than to rent in a lot of markets and at a lot of price points.

Overall, pending home sales nationally is a good sign for our market and with cash deals and rising rental costs, Southwest Florida will experience additional sales activity in 2012 as the market begins to recover nicely. If you want to sell your Southwest Florida home or buy a home in the market, be sure to have all the facts so you know your investment is sound. You’ll need a Realtor^® that knows the market and can make accurate assessments based on his/her local and national knowledge. Find the RIGHT Realtor^® …you’ll be glad you did

Join The Rotary Club of Estero for the Annual BBQ & Family Funfest on Saturday, March 24, 2012 at the Estero Community Park, in beautiful Estero, Florida. This promises to be an entertaining, exciting, diverse and anticipated event for Florida’s Southwest Coast. A mix of great live music will be presented, featuring a performance by the fantastic CAHLUA & CREAM, while you enjoy an array of Grillers, Ribbers and other vendors, serving fantastic samplings of all types of BBQ and food from around the area and beyond. There will be beer, wine, classic cars, rides, a raffle and a silent auction of fantastic prizes donated by area businesses; games for the kids; and lots of fun for the entire family. Smoke will fill the air as our Grillers and Ribbers compete for this year’s top honors and bragging rights. In addition to the outstanding food and beverages, music lovers will be entertained by a variety of local talent. A diverse mix of Country, Blues, Jazz, Pop and Rock music will be performing non-stop to entertain the crowd throughout the day. This event, which will be open from 11 am to 9 pm, promises a day full of great food for lunch, dinner and snacking; music; family fun games; and more for everyone. So please come and spend a few hours with your family and the Rotarians to help local charities, while having a truly enjoyable and tasty time.

THE FOLLOWING LOCAL AND OTHER CHARITABLE ORGANIZATIONS WILL BENEFIT FROM THIS EVENT:

Barbara’s Friends Cancer Fund, Children Without,

and Gift of Life

For more info… Please visit www.bbq-estero.com

Awesome job to our friends at Copperleaf 

(Left to Right) Ed Donahue, Lois Thome (WINK News), John Seaberg and Frank Kelly.

Three members of F.A.N. a part of  The Copperleaf Charitable Foundation are pictured with WINK News anchor women Lois Thome before beginning their walk for hunger at Miromar Lakes Shopping center.  The team’s goal was to raise $500 but through the support of the Copperleaf residents were able to raise more than $1,200 for Harry Chapin.  That amount of money will buy about $7,200 worth of food and personal care items to be distributed throughout southwest Florida.   FAN ( Feed Area Needy) which is part of The Copperleaf Charitable Foundation distributes food directly to 3 local charities in Bonita Springs and Estero and is helping these local food banks feed over 300 needy residents per week.

Arthur Frommer says beaches, shopping and refuge help make island his favorite spot.

The dean of U.S. travel writers ranks Sanibel Island first among his 10 favorite places to visit — in the world.

That’s above the island of Bali and Paris, which are Nos. 2 and 3, respectively, on Arthur Frommer’s list.

To be sure, it’s high praise from Frommer, who in 1957 published “Europe on $5 a Day,” which is credited with changing the way a generation of Americans visited Europe. The book launched one of nation’s the biggest lines of travel guides, under Frommer’s name.

Tourism promoters in Lee County, not surprisingly, are thrilled about the compliment, and the media and visitor buzz it is creating.

“It’s perfect timing,” said Ric Base, president of the Sanibel & Captiva Islands Chamber of Commerce. In a few weeks local tourism’s winter high season kicks in. That’s when demand — and lodging rates — are the highest.

Reservations for island lodgings and vacation rentals already are looking very strong, Base said. Frommer’s remarks can help sustain the momentum, according to Base.

About a year-and-a-half ago, chamber staff gave Frommer a “behind-the-scenes tour, all over the islands,” Base said, adding that Frommer is a longtime repeat visitor to Sanibel.

Writing for his Dec. 28 frommers.com blog, Frommer calls Sanibel an “idyllic haven of white-sand beaches, condos whose sea-front apartments are available for weekly rentals, excellent restaurants, good shopping.” He then singles out for special praise, J.N. “Ding” Darling National Wildlife Refuge, “visited by thousands of birds of every species, who bask in the sun after diving for fish and are one of the great natural sights of wildlife in America.”

Frommer’s remarks also appeared in a column he writes, and which a number of newspapers across the country use.

Favorable remarks “from a person of Arthur Frommer’s caliber means they will be repeated in a number of media outlets. The reach will just grow and grow,” said Lee Rose, a spokesman for Lee County Visitor & Convention Bureau.

This isn’t the only recent accolade from important travel sources. TripAdvisor recently named greater Fort Myers as No. 3 among of the “15 destinations on the rise,” based on a significant increase in user reviews for the area on the travel Web site over the past year. Sanibel and sister island Captiva were also recognized by readers of TripAdvisor when they were named the “Top 25 Beaches in the United States & the World” in TripAdvisor’s Travelers Choice 2011.

Some visitors to Lighthouse Beach late Tuesday afternoon didn’t hesitate to add their endorsement of Sanibel.

“It’s beautiful,” Jeremy Rosen and Susan Crouch of Pittsburgh said in unison.

“We just love the area,” Crouch said. “We are planning on moving down.” She said they learned about the island through word-of-mouth recommendations.

St. Louis-area residents Camie and Roy Northcutt said they honeymooned on the island 25 years ago, and have been coming back ever since.

Camie Northcutt said she loves the shells, the cleanliness of the beach and the minimal commercialism.

Ray Northcutt said he enjoys the quiet: “It’s not so much a crazy college beach,” he said. “It’s a laid-back beach.” Written by

Laura Ruane

According to the almighty Freddie Mac, mortgage rates have hit an all time nationwide low. As of this week, the nationwide average for 30 year fixed mortgage rates hit 3.89 percent. On that same note (no pun intended), 15 year fixed fell to 3.16 percent (also a record low). What does this mean for the consumer? Are the banks lending? Who’s my competition when applying?

These are all legitimate concerns for the average consumer. The all-time lows mean increased mortgage applications to banks. As of last week, application rates rose significantly after the holidays. The consumer should take this movement in a positive direction, because if you have quality cash flow and a respectable credit score then you have a fighting chance. Refinancing is a smart decision at this point in time and I highly advise it to those applicable. The good news we see here is that banks are lending again. The blood seems to be leaving the water and its safe for lending and trust to resume. The competition will be tight when going to a lender but remember this is a good thing. These record lows are a glimmer of light for buyers and sellers and once again proves our economy  to be gaining momentum.

All the best,

Justin Helmus

Lead Buyer’s Specialist- Team Michael Burke

239.850.6175

jshelmus@gmail.com