Q. Why is it a good time to buy in Sarasota?

A. There are many factors that should entice people to purchase a home in Sarasota today.

Realistic pricing of homes – we are among the first markets in the state where a unified real estate community aggressively counseled its sellers to price their homes realistically and not expect the windfall profits we saw in 2004 and 2005.

Baby Boomers and younger adults continue to migrate to Sarasota and Florida.

Interest Rates are at near historic lows. 

Job growth remains steady and strong.

Local economy remains robust, with low unemployment.

Inventory of homes with a large variety of locations and prices.

Appears the market has bottomed out with recent signs of normalcy returning.

The most positive and reassuring market indicator of them all - the inherent desirability of where we live.

Q.  Is it a good idea to “wait and see” how low home prices may fall?
    
A. Not really.  Because of the cyclical nature of real estate, it is unlikely that the current  situation will remain for long. Home prices will begin to rise again.  2007 represents an opportunity to buy before property appreciation begins to accelerate once again.

Q.  Should I wait for interest rates to come down?

A. Don’t try to second guess interest rates.  If you find the home you want at a price you can afford, small fluctuations won’t make that much difference, and the home may no longer be available when you are ready.  Meanwhile, you continue to pay rent and risk that the market recovery will cause prices to increase again.

Q. How should I choose a real estate agent to sell my house?

A. Whether buying or selling, start by asking friends, family members, neighbors, and co-workers who they worked with, and whether they were happy.  When selling, it is important to interview at least two or three real estate agents.  Ask all of them the same questions. You should find out about them - their experience, special training, etc. – as well as their marketing plan for your home.  Most importantly, ask for and check references.  And remember that you are establishing a business relationship with someone, so it is important to feel comfortable with the agent.  When buying, some of the same factors apply.  An agent whose company is in the MLS can show you any of the properties that are listed in the MLS, so try to find an agent who is compatible, then work only with that agent.

Q. Why should I use a Realtor?

A. A Realtor® has the knowledge and experience to guide you through a very complicated transaction.  It is a time-consuming process that really begins once you have signed a purchase agreement.  Real estate has its own language, and it is important to work with someone who speaks that language.  Having a concerned, but objective, third party will help keep you focused on the business, rather than the emotional issues involved.  And a Realtor® subscribes to a stringent Code of Ethics to provide the highest level of service and integrity.

Q. To what degree has the Time 2 Buy Sarasota campaign made a difference in the local real estate market?
   
A. Since the launch of the campaign in January, Sarasota has experienced an increase in existing home sales. The campaign can’t take all the credit for the upswing in home sales, but it is a major factor. Sales the first five months of 2007 are 14% higher than the same period in 2006.  This is something to be excited about, since many other markets in Florida posted negative numbers throughout the entire period.  The chart below indicates the combined sales of single-family homes and condos in several major markets in Florida through May. 

 

Q. What evidence does SAR have that illustrates an upward movement?

A. One of the first indicators of a recovering market is an increase in pending sales.  As purchase contracts are signed, the agent reports the sale as “pending” until the closing date, which is typically 30 to 60 days later.  Pending sales in Sarasota have been on the increase since January.  In fact, the lowest month for closed sales was December 2006, when there were only 355 sales closed.  In May 2007, the Sarasota MLS reported 553 closed sales, an increase of almost 56%.

Q. What should I do to find out if I can afford a home in Sarasota?

A. You can start by contacting a Realtor® who can review some brief financial information and give you an idea of the price of home you can afford – or you can see a lender to become pre-qualified.  For various calculators provided by Fannie Mae.The important thing to remember is that prices have come down, and there are currently over 1,800 homes and condos listed for sale in the Sarasota MLS that are priced under $300,000, with 1,200 of those under $200,000.  Buyer-assistance programs are also available through many local organizations, including the Community Housing Trust’s New Family Housing Fund, which allows qualified buyers to purchase a home with as little down as $500.

Q.  How do I start to look for a home?

A. Begin by thinking about the things that are most important to you.  For example, do you need to be near public transportation, schools, or shopping?  Is there a neighborhood or school system that you prefer?  What about architecture, style, and age of home?  You might even drive through areas, but eventually, meet with a Realtor who can help pinpoint listings in the MLS that meet your criteria.

Q.  What are the advantages of buying instead of renting a home?

A. The advantages are many, including the tax deductions you can take for mortgage interest and property taxes, the equity you build which is like a savings account, and the ability to decorate as you like.  There are few (if any) investments that provide the kind of return your home can provide, because you are leveraging your investment.  For example, assume that you purchase a home for $200,000 with a down payment of $10,000 and the value increases just 3% in one year to $206,000.  Your return of $6,000 is actually a return of 60% of your downpayment of $10,000, because that is the amount you invested in the home, and that continues to compound each year the value appreciates.  Meanwhile, don’t forget that your investment is also providing you shelter.