The new FEMA flood changes are on everyone’s mind these day, as the increases went into effect on October 1, 2021. Instead of relying on “flood zones” as a determination of your flood exposure, the new system is referred to as “Rating 2.0,” which is a single risk modeling system that takes into consideration area and proximity to harbor, replacement coverage, frame vs. block construction along with slab vs. pilings. Also considered is prior flood loss. Banks may use flood zones, but insurance companies are going by the new rating system. So what does all of this mean you ask? Well, if you have an existing flood policy your flood insurance will increase approximately 18% per year until you reach the figure FEMA has established as the target figure for your property. If you don’t have flood insurance then you will be subject to the new valuations FEMA has established. When buying a home it is important to find out in the beginning of your negotiations if the current seller is carrying flood insurance, as this will impact your investment in the home significantly. To give you a better understanding of the difference in buying a home where the seller is carrying flood insurance verses one where they aren’t, recently we had a buyer purchasing a home on a gulf access canal. They were quoted $6,700.00 to obtain flood insurance for the home. Thankfully, the seller’s insurance carrier said their policy could be assumed, which saved our buyer a significant amount of money as the seller was paying $1,080.00 for flood insurance. It is important to find out up front when negotiating the purchase of a home if the current homeowner is carrying flood insurance and if the policy can be assumed.
Unfortunately, FEMA appears to be taking it out on Florida as Floridians have paid in 4 times the amount of claims that have been made. Where most of the country will see decreases in flood insurance rates, Florida will continue to see increases. Hopefully our state legislators will come up with a solution that will provide a more fair and balanced metric for calculating flood insurance rates.
The second major consideration for buyer and seller is the age of the roof. Many insurance brokers will share with you that in the years after Hurricane Irma struck Florida, there have been a bevy of insurance adjusters advertising and knocking on doors claiming they can get you a new roof. One such insurance broker shared with us that a home qualified for a new roof due to excessive hail damage. Not sure where in our area we had that kind of hail, but this is just one of the many questionable reasons how new roofs have been obtained. In order to protect themselves insurance companies are now putting limits on how long they will cover the roof before requiring a new one to be installed. Shingle roofs will have to be 15 years or newer as there are only 3 companies that will insure up to 20 years. Tile roofs, which most inspectors will tell you can last for 30 years or more, are now going to be required to be replaced after 20 years or perhaps slightly longer. Metal roofs will only be covered for 25-30 years and for older homes with more gradual pitch roofs that require a membrane type covering will now only be covered 10 years or less.
Whether you are the seller or buyer, flood insurance coverage and the age of roof are two major factors that you’ll have to consider when selling or buying a home.
Also, here is a link to find what Flood zone you lay in for Charlotte County: Find My Flood Zone
What questions should I be asking when I am looking to hire a real estate agent?
If you’re looking to sell your home, you’ll want to hire an amazing listing real estate agent to help—and there are certain questions to ask so that you can pinpoint the right professional for you.
It’s smart to be picky! A great real estate agent can help find buyers to sell your home fast, and for more money. Make the wrong choice, and your listing might languish. Then, the lowballing bargain hunters come circling—it’s not pretty. Here are some questions I recommend you ask:
1. What are your credentials?
2. Do you specialize in this neighborhood?
3. How do you arrive at the listing price?
4. How much will selling my home cost?
5. How will we communicate?
6. How long will the process take?
As always I am here for you and will answer any question you may have to help make the transaction as smooth as possible.
Gary Cardillo
RE/MAX Harbor Realty
941.979.0939
www.flwaterfrontliving.cm
A Summer Full of Surprises
Housing Market Update In a Nutshell
Unless you haven’t been watching the news or seeing the number cars with out of state license plates traveling our roads, let me tell you there has been a tremendous increase in the number of people who are now calling Florida “home” on a full time basis. As I’ve mentioned many times in our previous newsletters, last January we were hearing people saying it was the inclement weather and high taxes that had them strongly considering a move to Florida however, when Covid hit, it changed the market dynamics.
No longer did people want to live in densely populated areas, commute via mass transit and work in the tight quarters of commercial office buildings. Employers found production levels didn’t decrease as anticipated and were now allowing their employees to work remotely. As a result instead of waiting for retirement to move to Florida, they were making the lifestyle change now, and for some cities, it has become a mass exodus!
Florida and Texas are two states seeing a tremendous influx of people looking to relocate on a permanent basis and with very low inventory levels the competition for existing homes has been fierce. In fact some of major builders such as Lennar have put a “sales hold” on some of their developments so construction can catch up with sales.
Recently we had three of our listings sell in one day, and well over full price. Our most recent listing had 28 confirmed showings within 12 hours and 15 offers, with the accepted high offer almost $80,000 over full list price….yes, you read it correctly! Agents were telling us of their frustrations in not having their offers accepted when bidding $20,000, $30,000, $40,000 and more over list price. Buyers who wanted to give some thought to the home they viewed before making an offer found themselves on the outside looking in as the property went pending shortly thereafter.
While this may seem reminiscent during the real estate boom in 2004-2006, it is a very different scenario. Sub-prime mortgages and other forms of loans were being approved for buyers who under normal circumstances would never have been able to qualify. Inventory levels were much higher and the speculation that baby boomers were headed to Florida for the next 20-30 years had everyone giddy the sky wasn’t going to fall. Appraiser’s couldn’t keep up with the increases and started giving valuations on properties that were called into question years later.
What you are seeing now are not only retirees, but those looking to make lifestyle changes prior to retirement, both vying for short supply of available properties. Unlike the market back in 2004-2006, this market is not being driven by investors and speculations. We are in a market where there is strong demand and short supply. With the cold weather now hitting the north, those that were contemplating a lifestyle change are acting with a sense of urgency, adding an additional strain to an already robust market. Sensing their opportunity may be slipping away we have seen an immense uptick in offers well above list price. What was a market characterized by gradual growth, we are now seeing the realization by some this may be their last opportunity for some time and are willing to pay a premium for it.
As always if you have any real estate questions, feel free to reach out garycardillo@wesellpg.com 941.916.0939
Good News for a Change
If you’re like me it seems every time you turn on the t.v. or pick up a newspaper there is nothing but negative news. If it isn’t the Coronavirus it is the political and racial divisiveness that is making front page news. The left is yelling at you “we want change,” the right is screaming “come to your senses.” Can’t I just be left alone? And let’s not forget about the stock market. I don’t know about you, but I don’t think any Disney World roller coaster ride has anything over the highs and lows we are seeing in the stock market. One day it is up 800 points and the next day it is down 400. What is going on with this country we live in? Can’t we just go back to the way things used to be?Call me an eternal optimist, but for some time I decided to take a step back and take a look at things from a different perspective. Sure, I have my opinions, but what if I quieted down the entire minutia and got back to the basics of what were the most fond moments of my youth? What I found was without all the clamor the very things I held most dear I was having an opportunity to experience again. I, too, got caught up in the rat race of everyday life and the simple things I thought of most I was now being given another opportunity to enjoy.
I was forced to slow down and savor each day and the friends we have made along the way . It was the same feeling I had after working in the “concrete jungle” of New York City and coming to Florida 21 years ago. It was like a breath of fresh air that afforded us a quality of life we didn’t have in New York because of the fast paced lifestyle. Unfortunately like most, we got so caught up with work and projects around the home we didn’t take the time to savor the life we found those twenty one years ago. However, the Coronavirus changed all that and we’ve not only had an opportunity to reflect on what really matters in life, but how fortunate we really are.
Closer to home in the smaller cities like Venice and Punta Gorda you are seeing the embrace of a community and a quiet enthusiasm that is translating into new developments and business. Once seen only as places to escape the cold weather up north, we are now seeing somewhat of an exodus from those looking to escape the high taxes and congestion for a better way of life.
I sat down to interview Mark and Leigh McCann who are Captains with Allegiant Airlines . In fact, Leigh is the most tenured Captain in Punta Gorda that has 38 Captains based here and 36 First Officers. According to Mark and Leigh, air travel dropped in March, but came back in May and June very strong. Out of the 186 passengers the planes can hold, they were flying typically with 170 passengers and sometimes more!
Back in 2007 & 2008 when airlines were suffering from the downturn in the economy, Allegiant was the only profitable airline and up to this pandemic had 70 consecutive quarters of profitability. While the stimulus was supposed to keep the airline industry running through September, like many airlines, Allegiant had plans to furlough an estimated 30% of its pilots however, now there is not only no plans to furlough anyone, they are training new pilots.
Mark and Leigh continued by saying while other airlines are downsizing and pulling out of marginal routes, Allegiant will have an opportunity to pick up new routes and more equipment (planes). The attribute Allegiant’s success to tourist or pleasure travel, not business travel and said they have developed a loyal passenger base.
Turning our conversation to Sunseeker, Mark went on to say, we have a connection to this community, and for all the positives that Allegiant is doing for the community by bringing passengers from various points around the country to our area, the last thing they want is to be tied to a failed project. H e said while it was important to make sure the airline remained on solid ground during this time, which led them to delaying the development of Sunseeker , the 18 month delay was seen as a conservative estimate and that they hope to resume the project prior to then . He said as a company they are cautiously optimistic, but optimistic nevertheless!
Turning back to the real estate market and it’s upturn in activity, RE/MAX Harbor had 61 showings for the month of May, however that number dramatically increased in June to 458! Yes, people are still looking to move from the large cities where this pandemic has had them reconsider their routine of day to day activities. They are finding out what we’ve known all along…. “Quality of life.” And it comes from moving to those smaller, quaint towns with a feel of community.
In speaking with those in the RV and marine industries, sales have increased dramatically and as one representative from a local marine company said, “We just can’t find any new or used boats to meet the demand.”And most recently, Punta Gorda was named #2 in USA Today’s Readers Choice Awards for “Best Small Town Food Scene.”
All this and more is why we love living in Southwest Florida and why others are choosing to do so as well. As we soar through 2020, all the ups and downs, I think something we can all agree that truly matters is our faith, family, sense of community, and stopping to focus on all the good around us.
-Gary Cardillo
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