October 2020 Monthly Real Estate Update

October 12, 2020 by The727Team

Florida COVID Regulations Continue To Loosen

St. Pete Beach in front of Undertow Beach Bar

Let’s keep this October 727 Team Real Estate Update short and sweet!

Florida is setting the precedent and allowing businesses such as bars and restaurants to return to 100% capacity. Masks are not technically required since they’re not enforcing fines however many businesses are still enforcing these rules on their own accord. 

These loose regulations regarding business operations and mask wearing seem to be attracting more and more tourists who are looking for a break from the more strict regulations back home. 

What does this mean for real estate? Florida and more specifically St. Pete are getting more exposure. From my experience talking to people I meet and folks that inquire on our website – a lot of people consider moving here after they visit. The demand is real and seems to be growing every year as more and more people figure out that the Tampa Bay area is the best place to live in Florida. 

I think Florida will continue to be a place of free enterprise and innovation as we are in growth mode. As people are leaving high tax states such as California and New York, Florida is a place that offers reasonable property taxes, no state income tax and an economy that is mostly supported by tourist taxes instead. 

Inflated List Prices As Sellers Test The Market

You as a homebuyer may be discouraged by these rising prices. There are lots of homeowners testing the market with unrealistically high prices only to find out that their homes sit on the market longer when they’re not priced correctly. As you can see on the graph above,  discrepancy between original list price and sold price is becoming more significant. 

I’ve lost out on a couple of potential listings recently after I explain my research to the homeowner and my opinion on value isn’t as high as they’d like. It’s smart to list a little bit above fair market value to build in room for negotiations however in some cases the prices that homeowners are trying for are so far out of line that it sets them up for failure. 

For example one listing I recently did research on had a fair market value of about 285k-300k. She had purchased the home last year for 220k and although it was in good condition – she had not put any additional money into the home.  I explained to the seller that I’d recommend listing around 315k and possibly up to 325k however it would be likely not to appraise if we had a contract over 315k. She ended up picking another agent who put it on the market for 440k! I’m really curious to see how that pans out for them. 

With that said, don’t be too intimidated by high list prices. There are still homes priced correctly that are flying off the shelves but sometimes you’ll see an overpriced listing that sits on the market for a while. If we find a house like this that you’re interested in we can do some research and see how far off the mark they are. 

That is about it. Thanks for reading and as always feel free to reach out with any questions no matter where you’re at in the home buying or selling process. You can email us at the727team@gmail.com or call/text me at 727-307-1111.  If you enjoy our newsletter and would like to share with a friend feel free to send this article their way. Have a great day!


Recommended Articles Of The Month:

For this update, we’ll highlight some must-reads we’ve written:

Top 8 Reasons To Move To Indian Rocks BeachLooking for a sleepy beach town to social distance properly in the sun? Look no further than Indian Rocks Beach.

Top 10 Reasons To Buy A Condo In Downtown St. Pete – Are you considering moving to the most vibrant Downtown area in all of Florida? Here’s an article outlining all the great reasons to buy a condo in Downtown St. Pete.

Local News:

Here are some news stories you may love!

St. Pete Grand Prix Is Happening This Month! This race which usually takes place in March was rescheduled this year due to the corona.

Affordable Housing Development Going Up In The Skyway Marina District –   The massive development in the Skyway Marina District is not reported on nearly as much as Downtown St. Pete. This once dilapidated South St. Pete area is expanding rapidly with both residential and commercial development.

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727team.com Monthly Real Estate Update