Remember when “flipping” was all the rage? It was even done with real estate on Sanibel Island. It seems everywhere you went you’d be hearing stories of how your neighbor, grocer and even the taxi driver had purchased a piece of property, held it for a short time period and then “flipped” for a cool profit. Many experts have said this practice helped to fuel the real estate bubble that we experienced recently. Of course there is nothing wrong with buying a property and then selling if for a profit, after all, that’s the American way! There are several variations to flipping real estate. You can read books, take courses or attend seminars to learn some of the various techniques. The most common way is make sure you’re getting a true bargain when you purchase your property. Many times the best prices are on properties that are in need of some fix up. You then purchase the property, make the necessary repairs and turn around and sell it to someone that didn’t have the time or inclination to do the repairs themselves. It’s best to find houses that are basically sound but in need of cosmetic repairs. These repairs will not be expensive, such as paint and floor coverings but will make the house look clean, neat and well cared for from a prospective buyer’s eye. The danger to this technique though is once you get into the rehab you find that much more is needed and the cost is more expensive than you budgeted. Also, depending on the local market it may take you longer to turn the property over, increasing your holding costs and eating into your profits. A little different technique is to buy a property, fix it up and then refinance it with the new improvements. The next step is to sell it with a lease option or hold the mortgage for monthly income. This may increase the potential buyer’s pool since you’re not limited to people that can qualify for a conventional mortgage loan. If structured correctly the rent/lease will more than cover your expenses and if your tenant exercises the option to purchase after at least a 12 month period you would qualify for a lower capital gains tax rate. This situation is a winner for everyone! If you see a truly great bargain you can buy it and “flip” it without doing anything. This technique works best in a very hot real estate market when it’s a seller’s market. You won’t make as much money if you did the repairs yourself but then you also don’t have the upfront costs and time involved either. As I said, there is nothing wrong going into a transaction with the idea of not holding it for a long period of time, just be sure if this is the case that you know your local market and are confident what repairs need to be made so you can quickly turn it over and move on to the next project.

$729,900.00 320 East Gulf Drive Sanibel, FL 33957 Beds: 3 Rooms: 0 Full Baths: 2 Sq. Ft.: 5585 Garage: 0 Built: 1995   This is a new listing that I thought you might be interested in. Visit this listing online to see more photos of the property, Google Earth satellite images, and much more.   If you have any questions about this property or require more information, please feel free to call. Ann Gee John Gee & Company 2398500979 www.johngeerealty.com     Visit this listing here

When looking for property to buy on Sanibel Island and Captiva, if given the choice, focus on working with sellers that are motivated. It can make the entire negotiating process go much more smoothly and increase the likelihood that you will get what you want. How do you know if a seller is motivated and what makes a seller motivated? Someone that has to sell their home is a motivated seller. This would include people that are getting a divorce, a recent death in the family, someone facing large medical expenses or those involved in a job transfer. It also may include someone that fallen on hard times financially and is looking to salvage some of their equity before a foreclosure becomes eminent. This information usually is not kept a secret from realtors as they know they will be more likely to receive offers if admit they are motivated sellers. Some buyers may feel a sense of guilt taking advantage of another person’s misfortune. The truth is, this could not be further from the truth. You actually are doing the seller a favor! When you think about what may happen if they do not sell their property……increased expenses of maintaining two homes, possible foreclosure, having to protect an empty house that were forced to leave due to a job transfer, etc. For whatever reason, they want to sell and you are doing them a favor by buying their property. This holds true for real estate sales on Sanibel Island, Captiva and other locations throughout the country. What percentage of sellers is truly motivated? The fact is most are not. Many sellers will take the attitude of “I don’t have to sell” or “I’ll wait until I get my price”. The trick is to find that one in ten seller that is really motivated and NEEDS to sell his home. That’s the seller you want to work with! Working with a licensed and experienced real estate professional can help you find these sellers.

Whether you’re buying your first home on Sanibel Island or a Sanibel Island rental condo there are many factors to be considered. One such factor is the resale value of the proposed property. It may sound strange to think about selling the property before you even close on the transaction but the truth of the matter is resale value should be one of the most important considerations. You have to remember you most likely will not live or keep this property for the rest of your life, regardless of what you may be thinking now. Statistically speaking, the average homeowner owns their property for seven years. The features that drew you to the property originally will most likely appeal to future buyers as well. On the other hand, if you are attracted to a style of architecture, for example, that may not be common on Sanibel and Captiva Islands, you may be limiting the number of positional buyers when it’s time to sell. Although there is nothing wrong with buying exactly what appeals to you, you simply have to keep in mind that if it’s “too far out there” the price appreciation you may be expecting may not materialize. Price is determined by supply and demand. If there are several homes on Sanibel Island listed for sale and one has an unusual floor plan for example, this home may linger on the market longer as it waits for that one buyer that finds this unusual pattern appealing. If you’re looking for a Sanibel Island rental condo look for features that would be attractive to positional renters. Is there a pool? What about tennis courts? Is there a view of the Gulf of Mexico? You may be able to locate a condo that doesn’t have these features but you will also be limiting the potential renters as well. When it comes time to sell, you now have also limited your potential buyers. Rather than cutting corners, you’re better off spending the largest amount of money you can afford. It’ll pay off in higher rental income while you own the property and give you greater potential to sell it quickly when you’re ready to move on.

$689,000.00 1401 Middle Gulf Drive Unit S-301 Sundial S-301 Sanibel, FL 33957 Beds: 3 Rooms: 0 Full Baths: 2 Sq. Ft.: 1757 Garage: 0 Built: 1980   This is a new listing that I thought you might be interested in. Visit this listing online to see more photos of the property, Google Earth satellite images, and much more.   If you have any questions about this property or require more information, please feel free to call. Ann Gee John Gee & Company 2398500979 www.johngeerealty.com     Visit this listing here

$539,000.00 520 Sea Oats Drive Sanibel, FL 33957 Beds: 3 Rooms: 0 Full Baths: 2 Sq. Ft.: 0 Garage: 0 Built: 1987   This is a new listing that I thought you might be interested in. Visit this listing online to see more photos of the property, Google Earth satellite images, and much more.   If you have any questions about this property or require more information, please feel free to call. Ann Gee John Gee & Company 2398500979 www.johngeerealty.com     Visit this listing here

This is a great time of the year to come and visit Sanibel and Captiva Islands. The weather is great, the crowds are gone and the fishing is spectacular! There is always lots to do no matter what time of year you visit, but from now until around Thanksgiving, you can relax and just enjoy everything we have to offer.

As for things to do, how about enjoying over 20 miles of mixed-use trails? I like to bike these trails and you can rent many different kinds of bikes on the island. A good place to start is Billys Bikes on Periwinkle Way. Billys rents one and two seat bikes, scooters, and even has guided Sedgway tours.

Of course we have lots of natural lands and wildlife preserve you can check out. The J.N. Ding Darling National Wildlife Refuge  with miles of walking/driving roads where you can get up close to our wildlife and bird community. A definite must-do for island visitors.

We can't forget the shelling! Our beaches are world famous for shells of all different kinds, colors and types. You can pick up a shell identification book at one of our many shell shops or just pick up the shells that are colorful and attractive to you. But please... don't take the live ones. If shelling isn't your thing, just relaxing, shore fishing or watching the porpoise swim by might be just the thing for you! If you find you love shells and want to learn more, we have the Bailey-Matthews Shell Museum where you can get your fill of shells!

Fishing is a favorite of many people. Starting from the causeway all the way to Captiva Island, there are many many places to try your skill. Sanibel Marina on the east end of the Island has boat rental, charter fishing guides and also sells bait. On Captiva there is 'Tween Waters Marina, Jensens Marina, McCarthys Marina and South Seas Marina that also offer everything you need to get you fishing in a hurry!

Those are just a few of the things that Sanibel Island and Captiva Island have to offer. Our restaurants, shops, climate and lifestyle keep people coming back year after year.

I also have to mention that Sanibel Real Estate is also a great reason to visit. Prices have never been lower and we are still in a "buyer's market". Give me a call and I will give you my "Picks" for the best deals around!

John Gee, Broker

 

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Search and Map Homes For Sale In Your Neighborhood

My friend Scott McPhee (who accompanies me on most of my Saturday boat trips) has put together the video below about part of his sailing trip. Scott took five years and sailed around the world once, and then left a second time to head back to the South Pacific. I thought this was fun to watch so I wanted to pass it along for you to watch. To read more about his circumnavagation just Click Here. 

Click Here for all the latest Sanibel real estate and Captiva real estate listings! Even Miami Beach Homes

Is it time to buy?

In my opinion, if you are an end user, the answer is yes. If you a are an investor thinking about flipping the property within the next two years, my answer is no.
For the end user there are some favorable signs: closed residential home sales on Sanibel for July 2009 totaled 21 units compared to 11-13 units for 2006, 2007 and 2008. A significant increase.
In reviewing the 21 closed sales, several were priced to sell and the market responded to the attractive pricing.

The list of “good deals” is becoming shorter and shorter. Two of our company’s listings were part of the 21 closings in July and both were attractively priced.

Call or email us with your “wish List” and we will review the Sanibel and Captiva market and provide you with the best priced listings in your price range and criteria.

Check out the table below showing the statistics for last year's sales on Sanibel and Captiva.

Located on West Gulf Drive, this home is priced well below replacement cost and offers lots more than I talk about in this blog. Watch the video below and give me a call for more information or a tour of this home. The home is listed at $3,995,000