Author Archive
Lee County sets home sales record in 2009
Posted by dgrimes
February 5, 2010
Posted by dgrimesI was recently interviewed by the News-Press regarding our 2009 real estate market performance for Lee County, Florida. Here is the article as it appeared. More will be shared at our annual MarketWatch Real Estate event.
Sales of existing homes in Lee County ended the decade with a bang — a record 16,260 were sold with the assistance of a Realtor in 2009, according to statistics released Monday by the Florida Association of Realtors.
That shattered the old record of 12,123 set in 2005 at the top of the residential real estate boom that collapsed the following year.
…continue reading the story called Lee County sets home sales record in 2009
Getting a Great Deal or a Great Tan Requires the Right Plan
Posted by dgrimes
January 25, 2010
Posted by dgrimesThis time of year we have winter guests that want to check out our beaches and our real estate market, but end up frustrated because they end up doing too much of one and not the other.
Real estate expert Denny Grimes talks about having the right plan to find the best deal while making the best use of your time.
To see the full interview click here
Real Estate Contributor Denny Grimes Gives Market A’s & B’s
Posted by dgrimes
January 8, 2010
By WINK News
What buyers/sellers should know about chinese drywall
Posted by dgrimes
October 12, 2009
Posted by dgrimesPosted by dgrimesPoint 1: Realize that there is more to be learned about CDW then what’s already known
18 months ago people wouldn’t have been able to describe the difference between Chinese drywall and Chinese checkers
So, there are still many unanswered questions about the best way to identify and correct it, potential health risks, and how it will effect the value of the property or even the surrounding neighborhood.
Point 2: Pay attention to the year the property was built
Most experts suggest that if a property was built or remodeled from 2004 to 2006 that there MAY be a potential for CDW
In Lee County 25% of the available inventory was built in that time frame, so there is a 25% chance CDW could exist
Point 3: If the property was built in that time range, have the property inspected for sooner verses later. That means buyers of short sales, have a Chinese drywall inspection as soon as the seller signs your offer.
Don’t wait for the lender’s approval because that may take months
Sellers, have your home inspected before you put it on the market
In fact, all owners of property built in that time frame should have an inspection because not only is there property tax relief but I believe there will be government intervention into the correction of it.
Watch whole story: http://www.winknews.com/features/62314162.html By WINK News
Real estate matters: Short sale doesn’t mean quick sale!
Posted by dgrimes
September 7, 2009
Posted by dgrimesRule 1: Be realistic but aggressive with the asking price
There is nothing short about the short sale process, but sellers MUST remember that time is not on their side.
Because most sellers of short sale properties are not making mortgage payments and many are facing foreclosure. Lenders are taking months to respond to an offer on a property, so the sooner the seller receives as offer, the better.
Therefore, it should be every seller’s goal to have a contract within the first 90 days.
Watch the full video interview of with Denny Grimes here
By WINK News
Story Created: Sep 7, 2009 at 3:05 AM EDT
(Story Updated: Sep 7, 2009 at 3:05 AM EDT )
Lee County’s home prices inch up, but sales may level off
Posted by dgrimes
August 24, 2009
Pending transactions in August are lower
Posted by dgrimesBY DON MANLEY
dmanley@news-press.com
Single-family home prices are climbing in Lee County and sales continued at a torrid pace in July, although there was a slight dip from June’s record-setting pace.
Meanwhile, sales across the nation and state are up, but with a drop in the median sales price.
A total of 1,570 single-family homes were sold with the assistance of a Realtor in Lee County in July, according to statistics released today by the Florida Association of Realtors. That’s down from a record-setting 1,705 sales in June, but the July total was staggering compared with the same month in 2008 - a 104 percent increase.
The median sales price for July in Lee County was $89,000, an increase over June’s median sales price of $87,900. For most of the past 31Ú2 years, the sales price has been dropping sharply.
Statewide, there were 115,882 Realtor-assisted sales in July, up 37 percent from July 2008. The median sales price was $147,600, down 24 percent from the July 2008 median price of $193,800.
In a separate report released Friday, the National Association of Realtors announced that sales of previously occupied homes rose for the fourth consecutive month, posting an increase of 7.2 percent - the largest increase in at least 10 years.
Experts say the flood of foreclosed homes that has hit the market is still glutting inventories and depressing prices. But some local experts say the red-hot market is about to cool, at least temporarily.
Fort Myers-based real estate broker Denny Grimes of Denny Grimes & Co. predicts sales numbers for August will show a decline because the pending sales for July (815) are down by 50 percent from June. Not all pending sales close, but pendings feed the number of closed sales.
Grimes cited three possible reasons for a drop in sales: July, August and September are traditionally slow sales months; an “interruption of supply line,” meaning fewer foreclosures hitting the market; or demand has declined, which Grimes said he doubts.
“We’ve had a fantastic year and we’ve had a great month, year over year, but before we go out and buy a bottle of Dom Perignon, July pending sales are down,” Grimes said. “The prudent person is going to keep the champagne on ice, and over a cup of coffee, try to figure out why are sales slowing.”
He also predicted a drop in the median home sales price for August because the median price for July pending sales was $79,000.
Banks have been releasing fewer foreclosed homes onto the market of late, perhaps hoping for prices to escalate, said Keith Campbell, a managing partner for Silverleaf Capital Group in Fort Myers. The company sometimes represents large investors who buy available homes in bulk.
Campbell theorized banks are being selective to avoid further depressing prices.
“I think the banks have been been besieged with so many properties that now, they’re ramped up to handle them with asset managers,” Campbell said.
He said investors will continue to be a force in Southwest Florida.
“There’s a lot of money trying to come in from outside the area because of all the press we’ve received,” Campbell said.
That helped feed the uptick in prices. Demand is outpacing supply, said Steve Koffman, a real estate broker with Century 21 Sunbelt in Cape Coral.
“We’re clearly seeing inventory levels drop and that’s because of extraordinarily low prices,” Koffman said.
“The mindset of the buyers today is very much what it was in ‘04 and ‘05, with people wanting to buy before prices get too high. The one major difference is we’re selling houses below replacement cost, and back in ‘04 and ‘05, we were not.”
Denny Grimes, President
Denny Grimes & Company, Inc. - Statistics supplied by http://www.homey.com
Will Fort Myers recover from the housing crisis?
Posted by dgrimes
May 26, 2009
By WINK News
Posted by dgrimesSee the video:
http://www.winknews.com/news/local/45957832.html
Single-family home resales jump in Fort Myers in April
Posted by dgrimes
May 12, 2009
Buyers continue to snatch up homes at bargain prices in the Fort Myers area.
Single-family home resales rose more than 105 percent in April. There were 1,406 sales, up from 648 in the same month a year ago, according to the Realtor Association of Greater Fort Myers and the Beach Inc.
Pending sales — sales that have yet to close — increased more than 60 percent year-over-year. There were 2,368 of them in April, compared to 1,478 a year ago.
“Our market is at warp speed,” said Denny Grimes, president of Denny Grimes & Co., a local real estate firm based in Fort Myers.
For the past seven months, single-family resales have averaged more than 1,300 a month. During the real estate boom in 2004 and 2005, the best month saw 1,200 sales, Grimes said.
At the end of April, sales this year had exceeded last year’s total sales, according to the Realtor Association.
The inventory of homes continues to shrink. There were 8,665 single-family resales listed at the end of April, down nearly 30 percent from 12,324 a year ago, according to the Realtor association.
Though demand from buyers is up, the median price _ the price at which half the homes sell for more and half for less _ continues to drop because there are so many foreclosures on the market. The median was $80,000 in April.
Bank-owned homes represented 65.9 percent of all single-family homes sold in Lee County last month, according to the Realtor Association. But some of these foreclosures are selling for more than their list price because they’re bringing multiple offers.
Over the weekend, Grimes said there were 30 offers on a bank-owned duplex in Lehigh Acres listed $50,000. It sold for $70,000.
He said 90 percent of the sales for less than $100,000 can be described as “distressed.”
“It has been fairly frantic and fairly busy, which you don’t think of when you look at the general marketplace,” said Bob Groves, managing broker for Coldwell Banker Residential Real Estate in Fort Myers. “It’s all about these distressed property sales.”
Besides the foreclosures, there are more short sales _ sales made for less than the bank is owned on a mortgage to avoid foreclosure.
“We are finding an awful lot of people coming in and buying their second homes,” Groves said. “We are seeing the more traditional end users coming in. They are not buying it on speculation or to turn it over. They are buying it to use it.”
Daily his company is getting calls from Northern residents who are ready to make the move to a sunnier place.
For the past 21/2 months, his office has averaged about 1,000 showings a week on its listings.
More buyers are qualifying for FHA and VA loans, which offer closing cost assistance, according to the Realtor association.
“As listings shrink and sales prices move above the listing price, this indicates that our market is starting its recovery,” said Suzanne Sherer, the Realtor association’s president, in a statement. “This should be very welcome news to sellers out there. Priced right homes are selling quickly.”
In the under $100,000 market there’s now less than a four-month supply of homes on the market, Grimes said.
The Realtor Association estimates the supply of single-family homes at all prices has shrunk to 3.7 months, half of what it was a year ago. Grimes thinks that’s too low.
With so much competition out there, Grimes recommends buyers get preapproved for loans, which will make it easier for them to go up against other offers.
“A lot of eyebrows are focused on this market now,” Grimes said.
Existing home sales sky rocketing in south west Florida
Posted by dgrimes
March 23, 2009
Posted by dgrimesBuyers continue to snatch up homes at bargain prices in the Fort Myers area.
Single-family home resales rose more than 105 percent in April. There were 1,406 sales, up from 648 in the same month a year ago, according to the Realtor Association of Greater Fort Myers and the Beach Inc.
Pending sales — sales that have yet to close — increased more than 60 percent year-over-year. There were 2,368 of them in April, compared to 1,478 a year ago.
“Our market is at warp speed,” said Denny Grimes, president of Denny Grimes & Co., a local real estate firm based in Fort Myers.
For the past seven months, single-family resales have averaged more than 1,300 a month. During the real estate boom in 2004 and 2005, the best month saw 1,200 sales, Grimes said.
At the end of April, sales this year had exceeded last year’s total sales, according to the Realtor Association.
The inventory of homes continues to shrink. There were 8,665 single-family resales listed at the end of April, down nearly 30 percent from 12,324 a year ago, according to the Realtor association.
Though demand from buyers is up, the median price _ the price at which half the homes sell for more and half for less _ continues to drop because there are so many foreclosures on the market. The median was $80,000 in April.
Bank-owned homes represented 65.9 percent of all single-family homes sold in Lee County last month, according to the Realtor Association. But some of these foreclosures are selling for more than their list price because they’re bringing multiple offers.
Over the weekend, Grimes said there were 30 offers on a bank-owned duplex in Lehigh Acres listed $50,000. It sold for $70,000.
He said 90 percent of the sales for less than $100,000 can be described as “distressed.”
“It has been fairly frantic and fairly busy, which you don’t think of when you look at the general marketplace,” said Bob Groves, managing broker for Coldwell Banker Residential Real Estate in Fort Myers. “It’s all about these distressed property sales.”
Besides the foreclosures, there are more short sales _ sales made for less than the bank is owned on a mortgage to avoid foreclosure.
“We are finding an awful lot of people coming in and buying their second homes,” Groves said. “We are seeing the more traditional end users coming in. They are not buying it on speculation or to turn it over. They are buying it to use it.”
Daily his company is getting calls from Northern residents who are ready to make the move to a sunnier place.
For the past 21/2 months, his office has averaged about 1,000 showings a week on its listings.
More buyers are qualifying for FHA and VA loans, which offer closing cost assistance, according to the Realtor association.
“As listings shrink and sales prices move above the listing price, this indicates that our market is starting its recovery,” said Suzanne Sherer, the Realtor association’s president, in a statement. “This should be very welcome news to sellers out there. Priced right homes are selling quickly.”
In the under $100,000 market there’s now less than a four-month supply of homes on the market, Grimes said.
The Realtor Association estimates the supply of single-family homes at all prices has shrunk to 3.7 months, half of what it was a year ago. Grimes thinks that’s too low.
With so much competition out there, Grimes recommends buyers get preapproved for loans, which will make it easier for them to go up against other offers.
“A lot of eyebrows are focused on this market now,” Grimes said.
Posted by dgrimesSOUTHWEST FLORIDA - During one of the most difficult economic times in decades Realtors in Southwest Florida are selling more existing homes than ever. Realtor Denny Grimes says it’s a good thing because it’s clearing the market and could provide work for other industries. Grimes also says if you’re waiting for the market to bottom out before you buy, don’t do it.
See the whole interview.
http://www.winknews.com/news/consumer/economynews/41653222.html
A good home is as important as a good deal
Posted by dgrimes
February 8, 2009
Posted by dgrimesRules about the home inspection process can make transaction less stressful
As the ink dries on the sales contract, buyers develop a sudden case of heartburn as scenes from the vintage movie The Money Pit mysteriously begin playing in their minds. They are plagued with visions of termites swarming or the property developing a myriad of mechanical and structural problems, ones that won’t become evident until the day after they move in They have shopped hard to find a good deal. How can they know they bought a good home?
There’s no need for them to stock up on Alka-Seltzer because the majority of the buyer’s concern can be eliminated by following a few simple steps. Step one is to make sure they have access to the property’s most current information. Home inspections and Seller’s Disclosures are a snapshot of the property’s condition at a point in time, thus they do not necessarily reflect the condition of the property the day they decide to buy it. Sellers may have a “recent” home inspection report from a previous deal that failed to close and they may offer it to the new buyer as a way of streamlining the transaction. There is nothing wrong with using it as long as the buyer weighs the risks, because Murphy’s Law says that if something in the home has gone kaput, it did so after the first home inspection was completed. A new home inspection may be the safest route.
Another document that the buyer should request in the sales contract is a copy of a current Seller’s Disclosure. The key word is “current.” It is standard practice for a seller to fill out this document when the property is listed and then it usually gets stuffed in the listing file until a contract is submitted. The problem is that some properties are on the market for months, if not years, during which time the condition of the property can change. Sellers may have made the proper corrections, but they generally forget to update their Seller’s Disclosure. Everyone wins when there is full disclosure, so it is a good practice for all concerned to have a clause similar to the following added to the sales contract: “Seller to provide a Seller’s Disclosure that reflects the condition of the property as of the effective date and this contract is contingent upon buyer’s acceptance within X days.”
Prudence is wise as long as it doesn’t lead to paralysis. Some agents or their buyers will request a copy of the Seller’s Disclosure prior to making an offer. Learning as much about a property before you decide to buy it isn’t a bad idea, but one should do so realizing the risks of slow decision making. Buyers have missed great deals because they performed their due diligence before they had the property under contract. If a buyer wants to make sure each 2 x 4 is plumb or they want an exact count of cracked roof tiles, great, but do this research during the inspection period, after the property is under contract.
Step two is to understand what a home inspection is and what it is not. A home inspection is like an annual physical. During a physical your doctor gives you a general exam of your major systems. You may pass the physical, but that does not necessarily mean you’re 100% healthy, because something may be going on in your body that could only be determined by performing more specific and invasive tests. If the doctor felt something didn’t look right, he would ask you to see a specialist for a closer look.
Likewise, a home inspection is a general examination of the property’s health. The inspector will visually check the major systems of the property and if they pass his inspection, chances are the home is in good shape. Keep in mind that a home inspection is not equivalent to a MRI or a CAT scan, because latent issues could still lurk beyond the eyesight of he inspector. The buyer has the option to hire a specialist to analyze every system in the property, but spending more on inspections than he did on the property sounds ridiculous. Normally, if the home inspector finds something suspicious he will recommend a specialist be called for a more in depth examination.
The third and most important step is to understand that inspection issues will fall into one of three categories. The first category includes issues that the contract specifically requires the seller to correct. The second category would be issues that the contract specifically states that the seller is not required to fix and the final category deals with issues that are not specifically mentioned in the contract. Most inspection anxieties revolve around misunderstanding what issues are legitimate seller’s responsibilities, so it’s a good idea to read the inspection paragraph carefully. A clear understanding of this step will keep countless deals together and maybe prevent a black eye or two.
Two out of three categories are no-brainers because the buyers and sellers simply have to abide by the contract. End of discussion. However, the third category is a potential mine field because the contract does not specifically list the thousands of doodads that could potentially need a minor adjustment. Sellers usually feel they gave the home away and have little tolerance for being nitpicked to death. The buyers feel they did the seller a favor, thus the home should be delivered in like new condition.
Too many deals die right here because ego wins over rational behavior. That’s sad, because a handyman can usually correct these minor issues in less time than it takes for everyone to get worked up over it. So, apply a little common sense along with an application of the Golden Rule and chances are that the good deal you’re looking at will become a good home for many years to come.
Keep the Faith
Denny Grimes is President of Denny Grimes & Company, a local real estate firm. He can be reached at denny@dennygrimes.com.