As of this writing, we have had 19 sales year-to-date at the Plantation, and there are currently 4 units under contract or pending sale to close by the end of August. In 2011, there were also a total of 23 sales during the first 8 months of the year, and in 2010, there were 27. However, the average price per square foot for a 2-bedroom unit (the most common sale) went from $142.96 in 2010, to $143.48 in 2011 and now to $162.95 in 2012. However, the number of sales remains sluggish when compared to the activity seen in the beach market in general, which continues to increase in number of sales from 2010 to 2011, and again to 2012.
There could be a number of factors contributing to this, but the big three are likely: a) age and condition of the property, b) recent history of low-priced duress sales suppressing comps and c) lean rental histories. This has been a banner year in rentals throughout the area and at the Plantation, therefore we expect improvements in rental histories for 2012. Whether you rent your unit or not, it is imperative that the whole property be renter-friendly in order to improve rental histories for those units that do rent, as that ultimately adds value to all properties.
It is also imperative to maintain the grounds, buildings and unit interiors in top condition in order to compete with the thousands of new units put online during the construction boom of 2003-2007…those properties are not even 10 years old yet. This is a partnership between the homeowners’ association--responsible for exteriors, landscaping and amenities, and the individual owners--responsible for keeping their interiors as up-todate as possible.
We cannot do much about how the housing bubble and financial crisis took its toll on pricing at the Plantation. However, on the bright side…an anecdote on a recent pending sale brokered by Mandoki Realty: A sale price was agreed upon by both buyer and seller which would have been the highest price a 2 BR unit that had sold for in that particular phase since mid-2009. However, the appraisal came in short. The buyer, sensing the value, agreed to “split the difference” and pay around $8,000 over appraisal to make the deal work. This is very good news and this is an excellent example of how Mandoki Realty works on behalf of its listing clients to get them the highest and best sales possible. We have brokered 11 of the 23 sales closed or pending in 2012. (Oh, and by the way…that 2BR unit described above? It’s still going to be the highest-priced sale in that phase since 2009!)
