John Gee Senior’s thoughts on the upcoming season.
Thinking of buying in 2016? If you like a Sanibel Island house, condo or lot and it is priced closely to recent closed sales, don’t wait to make an offer, buy it now. The reasons being: historically low inventories are pushing prices up, you are competing with other buyers looking to buy what you like and if you are obtaining a mortgage, low interest rates are predicted to rise in the very near future. Waiting for next year will not benefit you.
There are only 102 homes, 88 condos and 63 vacant lots on the market as of November 2nd, 2015. This represents an inventory one third of the inventory of the 2012-2013. As basic economics tells us, shrinking inventories drive prices upward.
Thinking of selling in 2016?
Today’s market can be described as a seller’s market. Having said that, I advise you to speak to three Realtors who know the local market. As these agents to show you recent comparable sold properties and listings currently on the market that will be competing with your property. This exercise should direct you to a price that will produce a sale. In a rising market, if you have some great sold comparable sales, price your property 10% over the comparables to allow for the typical 4%-7% wiggle room for negotiation.
Looking to buy now for use in the future? Consider buying a vacant lot. The selection is getting slimmer and slimmer as a great majority of the island is built out. If you are a couple of years out from moving down to Sanibel Island, build now. Take a look at the build your dream home page and see why my wife and I decided it was fun and more profitable to build vs. buy a resale home.