Assessments and Reserves

Costs
Every home on the planet needs maintenance, repairs, upgrades, renovations and improvements over time. No property is immune from this. Every homeowner knows that when a roof needs to be repaired, it’s wisest not to delay….. keeping a reserve fund for these inevitable costs is essential, whether a single family home or an apartment building.

Options
Owners of homes have two options as it relates to funding bigger cost items: either you build up a ‘savings account’ of sorts by adding a bit extra each month into the kitty to create a reserve fund, or you keep in the back of your mind the knowledge and certainty that at some point you will have to fund a bigger expenditure another way. In condo’s and co-ops that is done via an assessment….eg: A $1 million facade repair is split amongst 100 apartment owners so that each pays a percentage of that cost based on the percentage of the building they ‘own’ based on their offering plan or number of shares.

Financing
Sometimes these costs are financed, adding to a monthly ongoing repayments/financing cost. Sometimes they are charged in one lump sum. And sometimes the HOA offers a payment plan whereby the cost is spread out over several months or even years. Many buildings around the US are facing bigger assessments as buildings age. Delayed maintenance and upgrades is often more expensive. All homeowners should factor this inevitable cost into their home costs budget. Almost all capital improvements increase the value of a property, and almost all of them can be added to your cost basis so they could have tax benefits down the road upon resale.

Creative solutions
Many HOA’s struggle with owners who cannot afford to pay large assessments: these challenges are often resolved with creative financing options. Sometimes other owners in a building may fund those unable to pay and accrue interest over time that is then repaid upon the resale of that unit. There are almost always (creative) solutions to money problems.(Compass)

Please contact me for a market report that includes properties in your area which were recently listed or sold.

Andrew.Oliver@Compass.com

AndrewOliverRealtor.com

Bonita Springs Q1 2024 Market Summary

For Bonita Springs overall, median prices were broadly stable in the 1st Quarter of 2024, while sales dropped from 2023 levels.

The median Price per Sq.Ft. was also stable, while sales were slower.
(DTO- Days To Offer – the number of days a property is listed before an accepted offer is received.)

Please contact me for a market report that includes properties in your area which were recently listed or sold.

Andrew.Oliver@Compass.com

AndrewOliverRealtor.com

NAPLES Q1 2024 MARKET SUMMARY

For Naples overall, median prices were broadly stable in the 1st Quarter of 2024, while sales dropped a little from 2023 levels.

A similar, stable trend was seen in the median Price per Sq.Ft., while sales were a little slower.
(DTO- Days To Offer – the number of days a property is listed before an accepted offer is received.)

Please contact me for a market report that includes properties in your area which were recently listed or sold.

Andrew.Oliver@Compass.com

AndrewOliverRealtor.com

Florida Home Values Skyrocket

The national median home price is twice what it was ten years ago. Molded by a storm of inflation, tight supply and surging demand, the average home price in the U.S. went from around $200,000 to $400,000, according to a new study from Point2.

However, in Florida, it took much less than a decade for home prices to achieve a twofold increase.

Average home values across Florida have undergone a seismic transformation, doubling in value within the short span of just six years. This surge, saw Miami’s average home price soar from around $290,000 in 2018 to the current median of $583,000. In Tampa, homes went from $213,500 in 2018 to $430,000.

For their study, analysts looked at historical data to calculate how many years it took for home prices in the 100 largest U.S. cities to double — and Tampa tied with Miami for having the third fastest price doubling among the country’s largest cities.

The trend of rapid price doubling extended to other big Florida cities, with home prices in St. Petersburg, Orlando and Jacksonville, increasing twofold in the past six to eight years.

Median home prices in St. Petersburg doubled within 6.6 years. In Orlando home prices doubled within 7.5 years — and in Jacksonville it took 7.9 years to see a twofold increase.

The research notes that, “Fluctuating mortgage rates, steep property prices, or supply deficits are no new challenges. But they have never unleashed such a rapid-fire onslaught on homebuyers in the U.S. as they have in today’s housing market.”

Among the top 10 states attracting new construction buyers, Florida draws significant attention, with approximately one in every eight new construction buyers opting to purchase their homes in the Sunshine State. In November, the U.S. Census Bureau reported that for the year, more than 1.5 million new residential construction projects broke ground across the state — a 9.3% increase from the year prior. (Florida Realtors).

According to my research, Naples was a little closer to the national average, taking around 8 years for prices to double :

  • Andrew Oliver, M.B.E., M.B.A.
    Real Estate Advisor
    Andrew.Oliver@Compass.com
  • AndrewOliverRealtor.com

m 617.834.8205

                                                                        Licensed in Florida and Massachusetts

 

 

Bay Forest Open Houses this weekend – PRICE REDUCED

I am hosting two Open Houses in Bay Forest this weekend. Bay Forest has long been a popular community West of 41, between Wiggins Pass and Bonita Beach Road.
The exciting news is that construction of the new $4.5 million Boardwalk has begun. (The seller will pay the final assessment)

Go HERE to see the video and photos for 15405 Cedarwood Ln, 101:
15405 Cedarwood Ln, Unit 101: 2 bed +Den, 2 bath, 1377 Sq Ft: now $370,000
(Bermuda Bay 1)
Saturday: 1:00 – 3:30 PM
Sunday: 1:00 – 3:30 PM

Go HERE to view the Bay Forest website, read the latest Newsletter, and watch the 4-minute video of Bay Forest.

Go HERE to see the video and photos for 325 Carinosa Court;
325 Carinosa Court: 3 bed +Den, 3 bath, 2066 Sq Ft: $725,000 UNDER CONTRACT

Contact me for a private showing:

  • Andrew Oliver, M.B.E., M.B.A.
    Real Estate Advisor
    Andrew.Oliver@Compass.com
  • AndrewOliverRealtor.com

m 617.834.8205

                                                                        Licensed in Florida and Massachusetts