Blog on Gainesville Real Estate

We just made major price reductions at Hawthorne Reserve, located less than two miles from the University of Florida!  Here are our new condo prices:

1bd/1ba, 630 sq.ft. $99,900

2bd/2ba, 900 sq.ft. $134,900

We also still have 2/1.5 and 3/2.5 available at their original prices, see below:

2/1.5, 1280 sq.ft. $162,900

3/2.5, 1480 sq.ft. $167,900

3/2.5, 1500 sq.ft. $181,900 (only one left!!)

Call Kate with more questions, 352-367-2610.

A growing concern among many of my condominium buyers is the cost of association fees.  Many people have asked me where all of their money would go if they decided to purchase a condo, and for those buyers with similar questions, here is the answer (in most cases):

-Building Hazards Insurance: This insurance covers everything on the exterior, of course. This includes the roof, the parking lot, the exterior building structure, and so forth.  Hazards insurance has been the main reason that association fees have risen in the past year or so.  In my opinion, hurricanes have been the main cause of this.

-Exterior Maintenance: This can fall under two categories- One, lawn maintenance.  The association hires someone to maintain the grass, flowers, trees, etc.  Two, trash pickup is also included, as well as pool and ground maintenance. 

-Pest Control is often included

-Many condo associations also have reserves.  Reserves are monthly deposits into an account that will go towards a new roof, new exterior, new pavement for the parking lot, as well as anything else that will eventually require replacement on the exterior.  Roof, exterior, and pavement are generally required by condo law.

-Water and electricity required for parking lot lighting and lot irrigation. 

There are various other costs depending on where you live, but these are some of the main costs covered.  If you have any more questions in regards to this, please call me at 352-359-1112 or e-mail me at realtor@katewallis.com.

I know that Alachua County public school rankings are extremely important to buyers with children, which is why I have a page listing all of the rankings for the past several years.  Go to www.katewallis.com/alachuacountyschoolrankings for more information.  However, these rankings don't really help you if you don't know where the individual schools are located.  Don't worry, however, because I recently came upon a very helpful website that lists all of the different zones for 2006-2007.  You can see maps based on elementary, middle, or high school.  Go to:

http://www.sbac.edu/~wpops/zoning/zoning0304/index.html and click on the category of your choice.

Four point inspections in Florida

Four point inspections are becoming more and more of an issue for me as a Realtor.  Because I didn't know what a 4-point was when I started in the business, and because my buyers didn't know what one was either, I thought I might share some of the information I have acquired over the past year so that others might not run into the same problems that I have. 

What is a four point inspection?

    When Hurricane Andrews hit in the early 1990s, Florida insurance companies took a big hit financially, and they consequently changed a lot of their policies to protect themselves and their policy holders.  One of the particular policies, the four point inspection, is now generally required by Florida insurance companies when purchasing a home of a certain age (I think it's generally 50 years or older).

    Here is what happens (for example): you put an offer on a house that was built in 1952, and it is accepted.  In our Gainesville Alachua County Association of Realtors contract, the documents state that as long as the appliances, A/C, water heater, roof, etc. are in "working condition," they pass any given inspection.  You get a regular inspection done by a licensed inspector, and he/she verifies that everything is in this required condition.  You may think that you're almost to the finish line, but not so fast!  If you are planning to get a mortgage to purchase this home, you will need insurance.  In order to get insurance, your home-to-be must pass the 4-point inspection!  Here's the requirements:

    -ROOF: Must be in good condition.  Generally, in my experience, it must have several years of life left.  If it looks like it is about to give, even if there is no leaking or damage, it may not pass the test.

    -ELECTRICAL:  This is where older homes can cause problems.  Many homes built before the 1970s will have dated receptacles and breaker boxes.  Even if they work just fine as is, if the receptacles are not three-pronged and grounded, and if the breaker box doesn't meet certain "modern home" requirements, the house won't pass the inspection.  You will not be granted insurance until these issues are remedied. 

    -Heat, ventilation, and A/C: Once again, even if these items work well, if they don't meet modern code requirements, you will run into problems.

    -Plumbing: This hasn't become a huge problem for me yet, but there was an instance where a water heater, although in "working condition," was obviously past its estimated life expectancy, and this was expected to be changed before any insurance company would grant insurance. 

When shopping for homes, try to keep an eye out for these types of things.  The four point inspection can make home purchasing much more difficult if you're not prepared to deal with these types of issues! 

Where is the Gainesville real estate market headed?

That is the number one question on everyone's minds these days, and although I would like to have the answer, I don't.  However, statistics can always help us determine possible outcomes, but as we all know, the future is never certain.  Below are some comparisons that may lead us to a better understanding of the CURRENT real estate market, allowing us to make educated guesses about the future. 

From January 1, 2007 to March 1, 2007, 290 single family homes were sold in Alachua County* (meaning they closed).  The average sales price was $262,996, and the average days on the market was 84.

From January 1, 2006 to March 1, 2006, 489 single family homes were sold in Alachua County.  The average sales price was $231,449, and the average days on the market was 56.

This is an increase in sales price of over 13% since last year.  Interestingly, however, the number of houses sold in this 2007 period is nearly half the amount sold in the previous year.  The days on the market has also significantly increased since 2006.

Now for condominiums...

From January 1, 2007 to March 1, 2007, 66 condos sold in Alachua County.  The average sales price was $182,412, and the average days on the market was 97.

From January 1, 2006 to March 1, 2006, 172 condos sold in Alachua County.  The average sales price was $160,454, and the average days on the market was 87.

-This is a sales price increase of approximately 14% since last year. Just like the single family home market, the number of units sold has decreased dramatically, and the days on the market have increased substanially since last year. 

As you can see, both markets have changed similarly.  They've even increased in value at about the same rate.  But what do these changes mean?  In my opinion, there are less people buying and more people selling.  We currently have more homes and condos on the market at this time in 2007 than we did in 2006.  It seems as though the sellers, however, are sticking to their prices.  The numbers are not dropping as one might expect them to given the circumstances.  I think we are still in a fairly strong market, and I don't see prices dropping significantly anytime soon or increasing significantly, for that matter.  I think our market won't see a 14% increase in March of next year like we did this year, but I don't, by any means, think there will be a decrease.

If you have any further questions about the Gainesville real estate market or anything else, never hesitate to contact me at the following:

Kate Wallis, ERA Trend Realty    Cell: (352) 359-1112                        Office: (352) 225-4632     E-mail: realtor@katewallis.com   www.katewallis.com

*I got these statistics from the Gainesville Multiple Listing Service, which includes a few listings from other counties, such as Columbia and Levy.  However, there are so few listings from these counties in our system that it should not affect numbers significantly.