CONDO BUYER’S CHALLENGE

Financing is always a challenge and most recently some purchasers have had financing problems because their lenders consider the condominiums at the Plantation as a “condotel” or “condohotel.” However, if the information provided to the lender by the association management is inaccurate or provided in a manner that allows misinterpretation, a sale could be voided due to financing problems.

The major source of confusion is the definition of “second homes” versus “rental units” as it relates to the determination of what is a condotel.

The source of the confusion is how the owner uses his unit. Does the owner use it as a second home but rents it to help offset some of the expenses? If this is the case and, as long as the owner occupies the unit for a minimum period of time annually, it can be classified as a second home. On the other hand, if the unit owner is an investor where the owner is limited or excluded from use of the property by the homeowners association covenants, it puts him in a different status with the lender.

MHI has always considered all of the units at the Plantation as independent entities unto themselves without any revenue sharing among them or having any commercial operations within the condominium complex itself that is operated by the association.

There are many other fine points which must be made to ensure that there is financing available for purchasers. If a condo is not warrantable by Fannie Mae or Freddie Mac, a mortgage broker or lender will not make the loan and will make it more expensive to obtain financing. This has a direct impact on the value of the condominiums.

Real estate activity is picking up!

The phone is ringing and the emails keep coming, with requests for showings, information on the property and questions about condo ownership.

If Spring was a hint of what’s ahead for the 2012 real estate market, sales and prices should continue to recover. Two of the six sales in March received multiple offers and one of those closed above its list price. This suggests that sellers are beginning to hold out for the “right” price and that buyers may have to make two or three offers to get a unit they want.

Summer always brings increased traffic in the form of rental guests, “walk-ins” and “lookers.” With our office located right in the middle of the activity, Mandoki Realty is perfectly poised to capture this traffic and turn potential buyers into Plantation owners. Look at our record since January 2011, when the market began to recover:

The sixteen Mandoki Realty-listed units averaged 313 days on the market. The overall average was 405 days.

Price: The average sales price for the forty-one units sold since January 2011 was 95% of the listing price; Mandoki Realty listings averaged 96.3% of the asking price.

If you are considering selling your unit, give me a call at            1.800.305.8885      . Inventory is lower than it’s been in years andwe need listings. Put the brokerage that specializes in Gulf Shores Plantation to work for you.

WOW! What a difference a month makes!

For the past two weeks, things have been scrambling here at the real estate office. We’ve had two sales where there were multiple offers, one of which closed above its list price! There was only one sale in January and February, but then March exploded with six sales (with one closing on April 2) and Mandoki Realty has three more sales under contract or pending as I write.

There are only thirty-two condos and two duplexes listed for sale at the Plantation. That is all listings, not just Mandoki Realty listings. This is an unusually low inventory; Pedro Mandoki says he’s never seen this few units for sale in his time at the Plantation and he’s been here since 1986.

This should help prices, but it will be a step-by-step process because the past several years of “fire sales” have lulled the buying public into thinking that prices for shortsales and foreclosed units are the new norm. So, it will likely take a touch of buyeramnesia to get past this mindset.

Here is a breakdown of listings by complex:

• Plantation East—10 Two-Bedroom

• Plantation Dunes—1 Two-Bedroom, 2 Sunsuites

• Plantation West—6 Two-Bedroom, 1 Two-Bedroom/Loft, 1 Sunsuite, 1 Sunsuite/Loft

• Plantation Palms—2 One-Bedroom, 5 Two-Bedroom

• PUD—2 Duplexes

If you’re considering selling your unit, you might want to consider getting in listing it now, as there is very little competition out there compared to times past.

You can find no better brokerage to sell your Gulf Shores Plantation unit than the one right on property...Mandoki Realty! We can answer buyers’ questions and we can show your unit by just walking across the parking lot!