Real Estate Corner
by Joe Savage, Associate Broker


2014 REAL ESTATE SALES SUMMARY
GULF SHORES PLANTATION

In this issue we review the real estate sales stats for 2014. Below is a table showing the key statistics of units sold for 2013 and 2014. The “price per square foot” metric is used as the median of all units sold in each year.

#	METRIC	2013	2014	% INC/DEC
1	TOTAL CONDOS SOLD	38	41	7.89%
	MED PRICE/SQ FT - ALL CONDOS	$176.00	$193.00	9.94%
2	TOTAL 2BR SOLD	29	29	0.00%
	MED PRICE/SQ FT - ALL 2BR CONDOS	$171.97	$181.53	5.56%
3	# SOLD - EAST 2 BR	13	17	30.77%
	MED PRICE/SQ FT	$162.76	$159.24	-2.16%
4	# SOLD - DUNES 2 BR	7	2	-71.43%
	MED PRICE/SQ FT	$210.00	$218.00	3.81%
5	# SOLD - PALMS 2 BR	3	6	100.00%
	MED PRICE/SQ FT	$224.04	$226.00	0.87%
6	# SOLD - WEST 2 BR	6	4	-33.33%
	MED PRICE/SQ FT	$167.50	$191.00	14.03%

Number 1:  These two rows display data for all condos sold here at Plantation, regardless of floor plan, square feet, location and HOA. As can be seen, we seemed to be “flattening out” in the volume sold. It is still well above the 28 sold in 2012, though. We see a notable increase in the price per square foot, but we may need to look further into “the mix” to tease out the source(s) of this increase. For example, if more 1-bedroom sales are in the mix, their price per square foot is always higher than 2-bedroom units. This is because they have fewer square feet over which to spread the value of the land which they all sit.

Number 2:  These rows apply these same statistics to the sales of 2-bedroom units only. These are the predominant floor plan at Plantation, and so the predominant seller. It is good to see the price per square foot go up in 2BRs, but as we look at the mix across HOA’s, it becomes apparent that this increase was not equally shared by all.

Number 3:  Represent 2BR sales in Plantation East. While we saw a continued increase in volume sold (there were only 10, 2-bedroom units sold in 2012!) that came at the cost of pricing. While 2014’s price per square foot is still up from 2012’s $149, it is still pretty flat relative to 2013.

Number 4:  Represent 2BR sales in Plantation Dunes We see a pretty dramatic drop in volume sold here. The pricing increase in 2013 was notable in that 4 of the 7 sales in 2013 were west-facing units with notable updates and upgrades to their interiors and occurred in the last 4-5 months of the year.  Once those prices were publicized, many Dunes units came to market at ramped up pricing and sadly, the units appear to have just sat there as buyers went next door to shop for newer, larger units with competitive prices…they went to Palms.

Number 5: These rows represent 2BR sales in Plantation Palms. Sales volume doubled in Palms in 2014, while their price per square foot was almost flat…and very, very near the pricing in Dunes as evidenced by their respective price per square foot.

Number 6:  These rows represent Plantation West, which suffered from a Fall season under construction. The volume of units sold went down, but the pricing increase was largely the benefit of a sale of a Deluxe 2-bedroom unit. The impending repair assessment played a role in sales in 2014, as it had to be disclosed. However, we can only hope that the very work which created this assessment will turn around the values in West in the future.

In summary, 2014 showed some weaknesses in some places, but overall, it was pretty flat from year-to-year. Mandoki Realty is pleased to have continued to play its significant role in sales at The Plantation, brokering more sales than any other single brokerage in 2014. As demonstrated by this contribution, if you are considering the sale of your Plantation property, you can do no better than to list with Mandoki Realty.

Real Estate Corner

by Joe Savage, Associate Broker

Looking back, the 2014 real estate sales season presented some surprises in the Gulf Shores Plantation market. Perhaps the biggest surprise was the price variations among units sold in Plantation East. Some of the extreme variability was a product of location and view. But in evaluating the other sales, it seems the property interior was a major factor. People paid more if the unit was well finished inside, even if it had a lesser view of the beach and gulf. For example, two Plantation East properties that sold in the July/August period: One sold for nearly 12% more, even though the other was closer to the beach and offered an elevated 3rd floor view. The other major difference between the properties was that one unit was beautifully…almost sumptuously…renovated throughout.


I addressed “unit condition” a few years back as a major element in successfully marketing a unit for sale. Not only can you demand a higher sales price, you will shorten your time to sell. If a unit is largely renovated, a prospective buyer won’t be looking down the road at more costs after they’ve paid the down payment, closing costs, etc. Given our recent experiences, it seemed suitable to revisit some economical (and not-so-economical) updates and renovations an owner can do to make their unit more attractive for buyers.


Over the next several months I will address four topics about upgrading, consisting of flooring, kitchen, bathrooms and “everything else.”


FLOORING
Beach properties should not have carpet. Carpet and sand just don’t mix - sand will cause the loss of carpet fibers that will show traffic patterns even more quickly. Traffic patterns, thin patches and stains will date carpet quickly and require a frequent replacement cycle.


If you don’t already have tile, you should consider it. Large 18” tile is available at a great price and offers fewer “grout lines” and helps to expand the perception of space. Try installing it diagonally for a elegant and high-end feel. If your floor decking is wood (Bldgs. 1, 2 and 3), be sure your installation includes a cementitious backer board between your wood decking and the floated-out tile floor.


If your tastes don’t include tile, but you want something durable, affordable and warm, consider wood laminate. A quality wood laminate can look like the real thing and add a high-end feel to your property.


Lastly, buy a couple of bags of felt pads in different sizes and shapes, and put them on every piece of furniture in your property. That way, the furniture will easily slide when you have to move it and the frequently moved furniture won't scratch the flooring.


One final thought: If you are going to be updating and/or redesigning your kitchen (the next installment), be sure to consider any cabinet changes in your flooring project. You want the flooring to be under the cabinets so the dishwasher can slide out properly, and so that when the new cabinets are installed, there are no grout-filled gaps between where the tile ends and the cabinets begin. That is why so many kitchen upgrades are bundled with flooring projects.

A Peek at the Current Market

REAL ESTATE
NEWS
By Joe Savage,
Real Estate Broker




The data used are for the period January 1, 2013 through May 31, 2013, and for the same period in 2014. The measure for each metric was the median. The “Beach Market” was defined as Fort Morgan, Gulf Shores and Orange Beach properties that are "gulf front" or "beachside."

We have some good news and some bad news. The good news is that we have seen some price appreciation overall:

PRICE PER SQUARE FOOT, January 1 - May 31

YEAR	BEACH MKT	COMPLEX	PHASE I	PHASE II	PALMS	PHASE III	PUD
2013	$260	$265	$165	$185	$213	$156	$114
2014	$285	$200	$162	$223	$242	$197	$130
GROWTH-%	9.62%	21.21%	-1.82%	20.54%	13.62%	26.28%	14.04%

The number of sales are too few for the per-phase, year-to-year comparisons, but I felt owners might like to know the break down in each phase.

In general, it appears that Plantation Complex is beating the market, but it could be pointed out that it had “more opportunity,” euphemistically-speaking. Either way, it is heartening to see price growth wherever it is.

The bad news is the pace of sales has fallen off rather sharply, relative to the market:

NUMBER OF UNITS SOLD, January 1 - May 31

YEAR	BEACH MKT	COMPLEX	PHASE I	PHASE II	PALMS	PHASE III	PUD
2013	$260	$265	$165	$185	$213	$156	$114
2014	$285	$200	$162	$223	$242	$197	$130
GROWTH-%	9.62%	21.21%	-1.82%	20.54%	13.62%	26.28%	14.04%

While the Beach Market has seen a growth in sales volume of over 25% year-over-year, Gulf Shores Plantation has seen a virtual equal amount of shrinkage. This concerned me, as it makes it appear that the market is heating up, but Plantation is being left out. My first thought was to see if it was “a Fort Morgan thing.” So, I pulled the stats for Beach Club:

BEACH CLUB, January 1 - May 31

YEAR	# UNITS SOLD	PRICE/SQ FT
2013	16	$277
2014	27	$287
GROWTH-%	68.75%	3.61%

It didn’t appear to be a “Fort Morgan thing,” as Beach Club was growing in both pricing and sales volume! Thus, it appears Plantation may risk being left at the station for that “growth-train” if we can’t figure out why our numbers aren’t up relative to our neighbor and the beach market.

Even in this environment, Mandoki Realty remains the greatest promoter of Plantation properties. This is evidenced by its brokerage of 46% of all 2013 sales, of five of the 14 sales YTD in 2014, and of three more Plantation properties currently under-contract for sale. No other single agent or entire brokerage even comes close to this level of performance, so if you are considering the sale of your Plantation property, you can do no better than Joe Savage at Mandoki Realty.

Mailbox Full of Postcards Recently?

REAL ESTATE
NEWS

By Joe Savage,
Real Estate Broker



It seems like they just keep coming in. I just received a couple from an agent boasting that he had “…sold 50 condos already in 2014.” WOW, I had to go see which ones they were! I could only find 10 condos that he had sold so far this year in the Baldwin County Multiple Listing Service (MLS.) Not looking good so far. Maybe he’s counting the ones he listed, but somebody else sold. Only 19 of those, for a total of 29. Well, most important is how many he has sold here at Plantation, as those were the owners he was soliciting with the card. Now, where was that number? …had it here somewhere…. Oh! Here it is: NONE! That’s right, zero sales in any of the four condos or the PUD here at Plantation in 2014 so far.
Well, that’s why I warn my readers to be good consumers and critical readers of these mass-mail pieces…a grain of salt is usually required for their digestion. Read the postcards carefully…are they announcing how effective the agent is in selling condos like yours, or are they announcing how many listings they have taken? Getting a property listed is one thing, getting a property sold is something altogether different…recognize the difference when evaluating agent performance.