How will this affect my home's value?

[Rustic23]

Ask yourself this question: Ten years from now would I rather live in the Condo, orh The House. The answer should give you an idea of what your value will do. There will always be people that want the Condo. But, there will be folks that want to live in your part of Florida in a single family home. Yours looks like a nice setup, and should retain it's value.

 

[JP.mpls]

I'm following this pretty closely, because I was just in the final stages of putting my own house on the market when the Covid hit the fan.

The plan was - and still is - to sell this house in a reasonably high COL area, and use the money to buy a "better" place in a lower COL area. By better I mean, specifically, a place with a dock where I can keep my boat.

This puts me in an interesting position. I don't really care what dollar amount my current house sells for, as long as that amount can buy what I want elsewhere. Of course, no-one knows exactly where the market will stabilize, but I'm open to theories.

Had I been lucky, I'd have sold this place just before this started, and had cash ready to buy into a depressed market. I knew we were at a peak, but events overtook me. Market timing has never been my thing.

Captain Tom,
You can put me into the "bad timing " group too. I just bought a townhome not too far from Harley. I suspect prices will take a big drop now that I've closed on the place.

On a positive note, I took the money out of equities late January to pay for it, so that will help soften the damage from purchasing at the top of the market.

Harley,
That place is awesome, and I believe you will be fine. Your nice backyard should give you peace and quiet. By buying a place with potential, and fixing it up nice, you are already way ahead.

PS: I think the license plate hiding is a little bit of paranoia too. It is all available on the internet if someone really wants the information.

Take care, JP

 

[ivinsfan]

Captain Tom,
You can put me into the "bad timing " group too. I just bought a townhome not too far from Harley. I suspect prices will take a big drop now that I've closed on the place.

On a positive note, I took the money out of equities late January to pay for it, so that will help soften the damage from purchasing at the top of the market.

Harley,
That place is awesome, and I believe you will be fine. Your nice backyard should give you peace and quiet. By buying a place with potential, and fixing it up nice, you are already way ahead.

PS: I think the license plate hiding is a little bit of paranoia too. It is all available on the internet if someone really wants the information.

Take care, JP

I admit it was paranoia, but better safe then sorry.

 

[michelek]

Real estate is CYCLIC. Everyone knew we were in an inflated market but now I’m concerned that this covid-19 economic injury is going to harm the real estate market for several years. My agent owns a large Sotheby’s franchise in our area and he is also extremely concerned. While we try to keep up a positive face, we fear the damage has been done and will take years to dig out of. So if you can sell your property today for a reasonable price- my advice is DO IT. Or just hunker down and enjoy it until the value improves. It will come back. It always does if you can wait long enough.

 

[harley]

I'm not concerned about cyclic real estate markets, or really in selling the house. I know prices come and prices go. I was just curious if , all things being equal, people thought having a high(ish) end vacation condo/shopping/waterpark across the street as opposed to an empty lot/medicore restaurant would increase the property value of a standalone house, or lower it because of the density and activity.

I personally think it will raise the value, while at the same time I would prefer if it never happens. I like the empty lot, but some might like the walkable shopping and fun.

 

[Scuba]

I think it will increase the value. People don’t like uncertainty. A vacant lot next door or across the street would not work for many, as they’d be concerned what would go there eventually. At least a high-end condo development would be seen by many as a positive.

 

[ivinsfan]

I think it will increase the value. People don’t like uncertainty. A vacant lot next door or across the street would not work for many, as they’d be concerned what would go there eventually. At least a high-end condo development would be seen by many as a positive.

It's a vacation rental condo which is not the same as a high end condo, IMO...it's going to generate a ton more traffic then a normal unit. if it ever happens. The vacation rental builds are one of the stranger things that happened in this latest real estate run up.

Marketed purely as an investment or one broker told me it would be a way to hold my place in a hot real estate market...

 

[ncbill]

I've still got my late relative's home on the market...didn't get it listed until late last year and rejected a few low-ball offers over the winter.

I don't expect it to sell (I'd take some of the higher of those low-ball offers now) until spring-summer 2021.

 

[Scuba]

It's a vacation rental condo which is not the same as a high end condo, IMO...it's going to generate a ton more traffic then a normal unit. if it ever happens. The vacation rental builds are one of the stranger things that happened in this latest real estate run up.



Marketed purely as an investment or one broker told me it would be a way to hold my place in a hot real estate market...

I understand the difference, but still think it’s better for property values than a vacant lot.

 

[Kroeran]

Another factor positive for Florida may be more people escaping the Northeast to escape

a) the greater pandemic risk and
b) the imploding State budget risk

both relative to Florida?

The Hertz layoffs that affect HQ up the road won’t help.

 

[HI Bill]

I think it will increase the value. People don’t like uncertainty. A vacant lot next door or across the street would not work for many, as they’d be concerned what would go there eventually. At least a high-end condo development would be seen by many as a positive.

I agree, that once the new complex is built, your value may go up. My only question is, would you rather sell now, and avoid being next to a construction site for several years (before construction actually starts)?

 

[CaptTom]

Just got a note from my realtor. He's still anxious to list the property. He claims there are still buyers out there, inventory is low and demand in our town is high.

Clearly that's not an unbiased source. But I'm thinking it might not hurt to list it at the original asking price we had in mind before this started. If it doesn't sell, I don't think it will hurt us in the long run to withdraw it and wait another year. Everyone will understand that this time was unique, so having it sit unsold on the market during this time of uncertainty shouldn't be as much of a red flag as it used to be.

Thoughts?

 

[piccolopat]

Even if the access to the new development is on the major road, I would pay attention to the site plans and make sure the back end of it isn't visible from your road or property. My concern would be seeing the loading areas, trash bins, etc.

 

[harley]

Even if the access to the new development is on the major road, I would pay attention to the site plans and make sure the back end of it isn't visible from your road or property. My concern would be seeing the loading areas, trash bins, etc.

According to the current plans we'd be looking at a 4 story condo building, including balconies, so I don't think we have to worry about that. Truthfully, while our house/yard are fairly attractive, I wouldn't buy a condo that looked out over the rest of my neighborhood. It's pretty run down. So I suspect they'll try to hide us with landscaping and such.

 

[eytonxav]

How much of a setback from the street for the condo? If it is setback a good distance from the street and has attractive landscaping/architecture, it might be a plus. If not, I'd be concerned.

 

[harley]

How much of a setback from the street for the condo? If it is setback a good distance from the street and has attractive landscaping/architecture, it might be a plus. If not, I'd be concerned.

I'm not sure at this point. This is still vaporware, just a drawing on a website. Again, I can't imagine they'll get too many buyers if they don't give the people something better to look at than my neighbors. So I suspect they'll do something.

We're definitely going to keep the house for the time being, at least until our two older dogs pass. We actually bought this because we wanted to be in FL in winter and couldn't rent with (at the time) 4 dogs. And it was dirt cheap after the housing crisis. Once the dogs are gone (and after I stop crying) we will think about selling and look into either renting or (low possibility) buying a condo or something in a [-]less ghetto[/-] more upscale neighborhood.

I started the thread because I was curious what people thought. My feeling is it will improve the value, but I'm not sure and I was curious what other people thought. I really hope we can be out of here before the construction, but I doubt it. I'm not looking forward to that. What would work best for us would be if the construction gets delayed for a couple years, and we sell. The new buyers can have the increase in property values when the new place gets finished.

 

[michelek]

I have a new opinion. (I learned from this site that it’s possible to learn and change

I believe the lockdowns and economic disaster are going to affect home prices very shortly. There have been so many across-the-board job losses that many people will HAVE to sell or take the nuclear option of the “return policy on real estate” where they choose to strategically let the house go to the bank.

This will play out over a few months as people lose their jobs and decide to cut their losses.

My appraiser says it only takes a few fire sales to affect the home prices in your area. I have noticed in the last three days that several high end homes have come on the market with prices $2-300,000 below market value.

And unfortunately, there are no buyers stepping up.

I am particularly interested in the high end luxury market.

I believe that is where we will see the first (already) steep price reductions - and then the bricks will tumble as they will.

My advice . If you NEED to sell do it now while you have a chance. Otherwise, if you’re in for the long haul, like we are, just buckle down and WAIT

Patience is not my strong card, but I did learn a bit from the last recession.