Just Checking In

3 homes at Magnolia Cottages by the Sea (Seacrest) have gone under contract in the past week or so. Something's going on, like maybe sellers are beginning to lower their prices to the level where buyers are willing to purchase. Try destin123.com or knowthegulfcoast.com.

Just wondering if properties are moving much along 30-A. We're coming down in a couple of weeks to do some poking around. We won't be buying this go around (looking at this fall), but I'm curious just the same. As I've stated in previous threads, we are primarily focused on Watercolor, but have come across some very interesting properties in Grayton beach and Seagrove. Also, I'm trying to find a good sight to look at Pt. Washington properties before we get there... any suggestions? I use Beach Group Properties, LLC. - Real estate offerings for 30A, Beaches of South Walton, Grayton Beach, Rosemary Beach, Seaside, WaterColor, Seagrove Beach, Blue Mountain Beach, Santa Rosa Beach, Destin, and Sandestin. for 30-A. Thanks guys.

It has been very busy. I like to think some properties have hit a point that buyers are finding value. Remember, we did not lose buyers. We lost value. Once the property hits the value point we seem to see the buyers come running. I think you can check my site out linked below to look at Pt. Washington. Find a good agent and put him to work and enjoy your stay!
Good luck!

Have people been having trouble getting financing? A friend of mine just sold her high-end home (at a huge loss due to divorce and a forced sale -- but it sold quick with multiple offers at the fire-sale price), and her realtor told us that she'd had several deals on her other listings fall through due to the inability to find financing. These were professionals with great income. I'm just wondering if that's a wide-spread problem or just an individual experience.

Have people been having trouble getting financing? A friend of mine just sold her high-end home (at a huge loss due to divorce and a forced sale -- but it sold quick with multiple offers at the fire-sale price), and her realtor told us that she'd had several deals on her other listings fall through due to the inability to find financing. These were professionals with great income. I'm just wondering if that's a wide-spread problem or just an individual experience.

The buyers need to be solid. Basically, have strong credit and expect 20% plus down. I see deals fall apart when buyers are trying to pull off "creative" financing. The lender will lead them all along and right at the end say they can do the deal but need more money down. Then everyone cries that lending has tightened up.
Lots and condos seem to be the toughest. The only areas I see as a true problem is pre-construction. You need to have 30% down in most cases. It seems the banks are working hard to get the mess cleaned up. Several months back I was at wits end with the banks but now begin to see day light. Actually, working a deal with 15% down right now that looks solid. First time home buyers also seem to looking at many opportunities to purchase.

Makes sense, although I don't quite understand the whole credit score thing. We're a 6 figure income family with absolutely no debt, owning two homes, one zero-balance credit card, four cars with no loans and a significant savings account and a pension (upon retirement), no late payments on our credit history and YET our credit score is lower than the aforementioned friend going through a nasty divorce with no savings and no job. Her car is financed and her (former) home is financed. I'm not willing to BUY STUFF I don't need to increase my credit score. When will assets be considered at part of a credit score?? Luckily we don't need to take out any loans!

When will assets be considered at part of a credit score?? Luckily we don't need to take out any loans!

Cars and housing are "depreciating" assets...you wouldn't want them considered as part of your "credit score."

I'm betting the reason your credit score is "low" compared to divorcing friend, is because you don't have any loans. Give your divorcing friend another couple of months and I think you'll see her score hit the bricks.

I'm like you, I don't need a loan, so my credit score is no bother at this point. Once all this foreclosure and credit card mess pans out...anyone with a score over 600 will be a rock star.

Makes sense, although I don't quite understand the whole credit score thing. We're a 6 figure income family with absolutely no debt, owning two homes, one zero-balance credit card, four cars with no loans and a significant savings account and a pension (upon retirement), no late payments on our credit history and YET our credit score is lower than the aforementioned friend going through a nasty divorce with no savings and no job. Her car is financed and her (former) home is financed. I'm not willing to BUY STUFF I don't need to increase my credit score. When will assets be considered at part of a credit score?? Luckily we don't need to take out any loans!

My guess is your debt to income ratio would trump your credit score. Mango or someone else care to jump in?

shelly do you live on 30-a?It sounds like you think the glass is always 1/2 empty. There's some awesome deals on 30-a but they're not for flippers and one must be able to hold for 10 plus years. I truely believe real estate will do a flat line sidways for a decade .The lifeblood of speculation easy credit is gone for decades to come.

The buyers need to be solid. Basically, have strong credit and expect 20% plus down. I see deals fall apart when buyers are trying to pull off "creative" financing. The lender will lead them all along and right at the end say they can do the deal but need more money down. Then everyone cries that lending has tightened up.
Lots and condos seem to be the toughest. The only areas I see as a true problem is pre-construction. You need to have 30% down in most cases. It seems the banks are working hard to get the mess cleaned up. Several months back I was at wits end with the banks but now begin to see day light. Actually, working a deal with 15% down right now that looks solid. First time home buyers also seem to looking at many opportunities to purchase.

So, if I purchase a lot with 20% down, and then want to build, I will need an additional 30% down for a construction to perm loan? Am I understanding that correctly? Is that what you're seeing? It's better than what I was hearing in the spring, which was NO construction to permanent loans were happening at all. We are in the bucket of buyers who will need to lend to buy/build a second home.

shelly do you live on 30-a?It sounds like you think the glass is always 1/2 empty. There's some awesome deals on 30-a but they're not for flippers and one must be able to hold for 10 plus years. I truely believe real estate will do a flat line sidways for a decade .The lifeblood of speculation easy credit is gone for decades to come.

Anyone considering "investing" in a beach home at this place (or just about any place) and at this time really needs to do lots and lots of homework--they especially need to do some extensive homework to ask themselves why those who cashed in on their "investment" were so successful. Moreover, they must think about timeframe and credit conditions that made those "investments" successful. The possibility that the stars will align for another RE Frenzy Moneygrab for this generation is zero to none. In addition:

They need to consider the escalating carrying costs of the "investment." (Taxes, utilities, insurance, HOA fees)

They need to consider increased maintenance and upkeep costs of a vacation "investment" near the Gulf (painting, hurricane protection, painting, trashing/theft by renters, painting).

They need to consider the short vacation rental window of the Panhandle.

They need to consider the overabundance/competition for the rental dollars.

They need to consider the reduction of public beach access & use.

They need to consider the reduced demand for 2nd homes due to higher credit standards.

They need to consider the implications of beach erosion on the future value of the home as an "investment" and vacation location.

They need to consider the lost opportunity costs in vacation time/money that can be better spent seeing other places around the world or using the money for other purposes.

They need to consider the possibility that the argument for "not being able to afford a beach home later" cuts both ways. Yes, the prices can go up--but also, your ability to cover carrying costs and the monthly nut for the home can also go down (something many people who are in the bind now never fully considered).

Too many "average Joes" became RE investulators--they should never have been able to get into the game. As a result of the RE frenzy and easy money, too many "average Joes" had easy access to cash (store front mortgage brokers, fly-by-night Realtors, and shifty contractors come to mind) and credit (going to HELOC in a handbasket) which allowed them to vacation in "upscale" resorts and "purchase" homes/condos/land in those resorts--that's ovah. Aside from one's primary house, the majority of folks shouldn't or don't need to "invest" in physical RE. If one has lots of cash laying around in drawers gathering dust...by all means, dust it off and buy a beach home to enjoy; and if you don't, save up a few bucks and take a vacation a couple times every year and let the owners of the condo/home worry about all the above.

Anyone considering "investing" in a beach home at this place (or just about any place) and at this time really needs to do lots and lots of homework--they especially need to do some extensive homework to ask themselves why those who cashed in on their "investment" were so successful. Moreover, they must think about timeframe and credit conditions that made those "investments" successful. The possibility that the stars will align for another RE Frenzy Moneygrab for this generation is zero to none. In addition:

They need to consider the escalating carrying costs of the "investment." (Taxes, utilities, insurance, HOA fees)

They need to consider increased maintenance and upkeep costs of a vacation "investment" near the Gulf (painting, hurricane protection, painting, trashing/theft by renters, painting).

They need to consider the short vacation rental window of the Panhandle.

They need to consider the overabundance/competition for the rental dollars.

They need to consider the reduction of public beach access & use.

They need to consider the reduced demand for 2nd homes due to higher credit standards.

They need to consider the implications of beach erosion on the future value of the home as an "investment" and vacation location.

They need to consider the lost opportunity costs in vacation time/money that can be better spent seeing other places around the world or using the money for other purposes.

They need to consider the possibility that the argument for "not being able to afford a beach home later" cuts both ways. Yes, the prices can go up--but also, your ability to cover carrying costs and the monthly nut for the home can also go down (something many people who are in the bind now never fully considered).

Too many "average Joes" became RE investulators--they should never have been able to get into the game. As a result of the RE frenzy and easy money, too many "average Joes" had easy access to cash (store front mortgage brokers, fly-by-night Realtors, and shifty contractors come to mind) and credit (going to HELOC in a handbasket) which allowed them to vacation in "upscale" resorts and "purchase" homes/condos/land in those resorts--that's ovah. Aside from one's primary house, the majority of folks shouldn't or don't need to "invest" in physical RE. If one has lots of cash laying around in drawers gathering dust...by all means, dust it off and buy a beach home to enjoy; and if you don't, save up a few bucks and take a vacation a couple times every year and let the owners of the condo/home worry about all the above.

Uh...wow! I can only speak for my family when I say we are taking this very seriously. We fell in love with 30-A the first time we saw it in 2004. Since then we've watched the market and each year we shake our heads wondering "what do all of these people do?" Our family makes a good living (at least we think so) and a second home of this caliber is a daunting choice. We've finally reached a point where we are now considering just taking the plunge and moving down... another daunting choice. It's a lifestyle we dream about. I enjoy getting the opinions from people who know and love the area as well as live there. I appreciate your passion and the large dose of reality. It is my belief we will make a decision that works for us. I am also a believer in striving for dreams. This is ours.

In the mean time, are you seeing movement? I still find the prices in some areas very high. I understand they are much lower than in recent years, but they still feel high. So maybe I am just a buyer wanna be who is hoping for the impossible.... a further drop in prices. Any opinion.... I know you have one. I'd enjoy it!

Inventory is high and prices are all over the board. Many of the properties on the market today, IMHO are over priced for the current market. If these properties were to be taken off the market then we would have a realistic picture of the true market and inventory. There are many reasons for this going all the way back to the "buying frenzy" and "runaway appreciation" of 2003 / 2004. Many sellers bought at the height of the market and can't afford to sell at today’s prices due to cash outlay or outstanding mortgages. Many of the sellers that can afford to sell, do. That, the short sales and foreclosures are what we are seeing moving. Some that can afford to sell still have their prices out of market. I had a listing where the seller could afford to sell at market but kept the price high with the comment "bring me an offer". Problem is nobody was even looking due to the price, and they are still priced higher than the last comparable sale (not my listing any more!). Here is what makes no sense; a condo in Santa Rosa Beach (my listing) sold for $299,000, there are 6 other listings in the same building, all on lower floors listed from $310,000 to $395,000 - go figure! This is the case with many properties.

I also had the same dream in 1980 that you have, to move to the beach. I made the move in 2004 and have never regretted the decision. You are right, it is a lifestyle and when the time is right you will know.

My advice to you is do your due diligence and / or work with a Realtor that will do it for you so you can realize your dream. Best of luck to you!

Inventory is high and prices are all over the board. Many of the properties on the market today, IMHO are over priced for the current market. If these properties were to be taken off the market then we would have a realistic picture of the true market and inventory. There are many reasons for this going all the way back to the "buying frenzy" and "runaway appreciation" of 2003 / 2004. Many sellers bought at the height of the market and can't afford to sell at today?s prices due to cash outlay or outstanding mortgages. Many of the sellers that can afford to sell, do. That, the short sales and foreclosures are what we are seeing moving. Some that can afford to sell still have their prices out of market. I had a listing where the seller could afford to sell at market but kept the price high with the comment "bring me an offer". Problem is nobody was even looking due to the price, and they are still priced higher than the last comparable sale (not my listing any more!). Here is what makes no sense; a condo in Santa Rosa Beach (my listing) sold for $299,000, there are 6 other listings in the same building, all on lower floors listed from $310,000 to $395,000 - go figure! This is the case with many properties.

I also had the same dream in 1980 that you have, to move to the beach. I made the move in 2004 and have never regretted the decision. You are right, it is a lifestyle and when the time is right you will know.

My advice to you is do your due diligence and / or work with a Realtor that will do it for you so you can realize your dream. Best of luck to you!

That's exactly what seems to be going on from where I'm watching.... crazy! Thanks for your support. Not sure when we'll actually get there, but we won't give up!

Shelly all what you say is true. In my case after vacationing on 30-a for 19 years and watching prices go wild for 10 of those years i started my search last summer. I knew i would only buy if i got a once in alifetime type deal. a steal of all steals. I t came around a few months ago and i jumped in seconds. $165 a square foot fully furnished high end home 4 minute walk to the beach in awesome condition. To this day i've hardly seen a deal that close to the beach in a great neighborhood beat it. I knew i couldn't get hurt so i jumped.. i'l basically spend 4 months of the year there and not rent. in the next 10 years i'll retire there. yes there are great expenses but the joy it brings my family and the quality family time we have is priceless. SHELLY I ASK AGAIN DO YOU LIVE ON 30-A AND IF NOT DO YOU LIVE ON THE PANHANDLE?

SHELLY I ASK AGAIN DO YOU LIVE ON 30-A AND IF NOT DO YOU LIVE ON THE PANHANDLE?

Not going to get an answer on that one Ray. My bet would be Shelly lives on or near 30A. Rumor has it she/he washes dishes at cafe 30A.

Rumor has it she/he washes dishes at cafe 30A.

...I only work there for the table scraps!

FYI...the staff say you're not as forthcoming with the tips as of late.

.

...I only work there for the table scraps!

FYI...the staff say you're not as forthcoming with the tips as of late.

.

Good one... I should know better. Poking fun turns to a personal jab... I still love ya.

Not going to get an answer on that one Ray. My bet would be Shelly lives on or near 30A. Rumor has it she/he washes dishes at cafe 30A.

I heard that too. I also heard that SHELLY sings backup for Red sometimes. There was also a rumored SHELLY sighting at the second sandbar by
mikecatadjuster but he didn't have his camera with him- shucks...

There was also a rumored SHELLY sighting at the second sandbar by
mikecatadjuster but he didn't have his camera with him- shucks...

Now THAT was funny.

I was somewhat surprised to see that St. Joe started building two spec houses in Phase IV right across from the pool. I was even more surprised to see that one of them is already pending.

I was somewhat surprised to see that St. Joe started building two spec houses in Phase IV right across from the pool. I was even more surprised to see that one of them is already pending.

St. Joe seems to have hit a good price point in Phase IV. Those are actually moving pretty quick compared to across the street. I'm waiting for the owners in Phase II and III to take notice and drop prices. They won't go as low as Phase IV (unless everything goes lower), but the least expensive home still wants $200,000 plus over the Phase IV homes. We'll see.

Dream on...

St. Joe seems to have hit a good price point in Phase IV. Those are actually moving pretty quick compared to across the street. I'm waiting for the owners in Phase II and III to take notice and drop prices. They won't go as low as Phase IV (unless everything goes lower), but the least expensive home still wants $200,000 plus over the Phase IV homes. We'll see.

Prices in Phase IV are $200,000 below Phase II and III simply because that is what they are worth. There is no comparison. Location, location, location. Who in their right mind would want to have to cross 395 all the time to get to most of the activities in WC? Also, those will be terribly hard to rent if one chooses to do so. Not sure, but the lots look narrow and the houses cookie cutter-ish also. So, they are worth $499,000 and not a penny more IMHO.

Prices in Phase IV are $200,000 below Phase II and III simply because that is what they are worth. There is no comparison. Location, location, location. Who in their right mind would want to have to cross 395 all the time to get to most of the activities in WC? Also, those will be terribly hard to rent if one chooses to do so. Not sure, but the lots look narrow and the houses cookie cutter-ish also. So, they are worth $499,000 and not a penny more IMHO.

I agree. Not sure they're even worth $499,000. My point being, I don't think the homes across 395 are worth almost $150 more per square foot. You don't have to sell me on WC.... I'm there. I do think of all the neighborhoods along 30-A WC has come to terms best with the price "corrections". This is one of many reasons WC keeps moving more properties than the other planned communities IMHO. I still think, on the whole, the neighborhood is currently overpriced. I started the thread to get opinions of realtors and homeowners of 30-A to see if my opinion was jiving with others. With a lot of luck and some guts we'll be pulling the trigger. We just want to time our purchase correctly. I don't think we'll get burned too bad on a price drop. Only time will tell where the market will go. Besides, we're in it for the long haul and likely full time. I know the home you and your husband personally purchased and think it's fantastic! I understand from other posts you are very happy... and you should be. Congrats again.

I can't wait to find this thread in 5-10 years.

I can't wait to find this thread in 5-10 years.

Why? What is your prediction?