Cape Coral, City of Winding Waterways(6/28/09)

June 28th, 2009

JOE SELLS SUNSHINE

REAL ESTATE RAINBOWS IN CAPE CORAL, FLORIDA

(All information herein may only be reproduced with written permission of author — 06/28/09)

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As a Century21 Birchwood Realty  agent I live and work in Cape Coral FL.  While I cover all of Lee County, Cape Coral properties are my specialty.  In presenting tips for buyers and sellers, this blog focuses on less-publicized, superlative opportunities in Cape Coral. Please log into Listing Book to do your own Lee County MLS searches.  Listing Book data updates every 5 minutes, with IDX (Internet Data Exchange). Never waste time on properties already pending, sold, expired, or terminated.  To access Listing Book, log on to: www.swflmls.listingbook.com.  (You won’t be spammed, sold, or harassed!!)  Show me your interests, and together we can chart a great course.

A Brief Digression

If you know Cape Coral well, you can stop reading and wait for next week’s blog about the best buys in the Yacht Club Area. Today’s blog is for readers who want to understand more history behind the development of Cape Coral, what it has to offer, and what distinguishes it from other Florida cities. Readers considering buying in Cape Coral need to understand the soul of the place. I easily wrote about the other two areas without connecting them to the city as a whole.  But from here on, I think readers need more of the whole picture in good focus.  I believe Cape Coral’s soul was born in the Yacht Club Area; today’s city was predetermined by those first site development plans and then by the character of the first owners who settled their new hometown.

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Map  showing Lee County, Ft. Myers and Cape Coral

Courtesy of www.floridacountiesmap.com/lee_county.shtml

Cape Coral’s Geo- and Demographics

Cape Coral is a Lee County Florida community of approximately 170,000 people. (The city’s population numbers fluctuate in the current foreclosure environment as properties change hands.) Although a large portion of the population are retirees, the 2000 census set the average age in Cape Coral at 41.6 years, so it is also attractive to young working families. Geographically, it encompasses 114 square miles. It lies near the western coast of South Florida, north of Naples, south of Port Charlotte, and west of Ft. Myers.  It is protected from the Gulf of Mexico on the west by the nearby barrier islands: Gasparilla, Cayo Costa, Captiva, North Captiva, Sanibel, and Pine Island. Most of Cape Coral’s western land is a typical, state-protected mangrove buffer, a perfect nursery for fish and shellfish and favored habitat for many birds. The Caloosahatchee River originates out of Florida’s largest lake, Lake Okeechobee, is part of the Intracoastal Waterway, and runs southwest along Cape Coral’s eastern and southeastern edges. Fort Myers Beach (Estero Island) lies further to the southeast.  To the north are North Ft. Myers and Punta Gorda. Cape Coral was very lightly settled until the middle 20th century, so it is one of the newest cities in South Florida.

Cape Coral is now the largest city south of Tampa in Southwest Florida.  Its primary feature is a network of over 400 miles of man-made canals.  Most are interior and freshwater canals. Some lead to small inland (dredged) lakes. (These inland passageways offer jet-ski, kayak, canoe, motorboat, and rowing experiences with good fishing, too.  I know of one inland area where you can boat for 30 miles.)  Leaving interior Cape Coral and moving out eastward or to the south, you find brackish canals that lead to the Caloosahatchee River.  Most of these require boaters to pass under low bridges.  Elsewhere, lifts or locks were installed to separate fresh and salt water. Bridges, locks, and lifts are little impediment to the ardent recreational boaters and fishermen who live here.  Along the eastern and southeastern fringes of Cape Coral are those canals closest to the River that we’ve been considering: the true sailboat access canals where you can reach open salt water without traversing lifts or locks or going under any overpasses. In the northwest quadrant of the city a lift has been removed, so at this time the canals there flow with saltwater. They lead outwards to Matlacha (pronounced mat-la-shay) Pass, permitting sailboat travel north to Charlotte Harbor, or southward toward the eastern tip of Sanibel Island. Further north is another Cape Coral boat ramp and access point to Charlotte Harbor.  (This sailboat access real estate blog series will continue clockwise around Cape Coral until we reach the northwest, in future issues.) In just 50 years, Cape Coral has grown from a small development in the Yacht Club area to a bona fide city, where personal boating dominates.

What Cape Coral Does and Does Not Include

To evaluate whether Cape Coral is a good match for you, you need to recognize some of the things you won’t find here at all, such as: railroads, interstate highways, a major bus hub, a bustling shipping port, airports,  huge shopping malls or large retail outlets, an “auto mile” of car dealers, heavy industry, a university, major sports teams, commercial skyscrapers, campgrounds, time-shares, casino boats, flea markets, manufactured homes, a fishing fleet, strip clubs, ghettos, or even dedicated agricultural areas.  There is one new condo hotel that is a spa resort.  There is one motor home park. We have a small theater group and a cineplex. We have antiques and collectibles shops plus consignment stores as well as a seasonal downtown farmer’s market. There are several new and used car dealerships, but my best guess is that if you compared the number of boat dealers to car dealers, the boat dealers would win. There are two industrial areas that feature light industry. We have one community yacht basin and several marinas for residents of specific communities (e.g., Burnt Store Marina, Tarpon Point Marina and Cape Harbour). A Dock-o-minium can be found on Del Prado Blvd. There are no covered public parking garages. Cape Coral has just one small historical museum, but the county offers many museums.  While you have to leave the county to find a major art museum, there are many artists and an increasing presence of interesting art galleries. The Alliance for the Arts in Ft. Myers is a source of enrichment for art lovers, and Florida Gulf Coast University (also in Ft. Myers) further promotes art education. Cape Coral has a dedicated art studio that provides many courses in a wide variety of media.  Cape Coral does not have a suitable location for indoor concerts or exhibitions, but Ft. Myers and Estero do.  Lest you despair that this is way too quiet a place for you, take heart. Everything that seems missing (except a bustling shipping port) can be found nearby on the other side of the river in Ft. Myers. Plus, greater Lee County offers a far greater selection of just about everything Cape Coral has.

Among the things not found in Cape Coral are prisons. (Ft. Myers provides the county jail for those arrested and awaiting prosecution and sentencing. Charlotte County to the north has the nearest Correctional Institute. Prisoners who have proven adequate adjustment at a correctional facility, may be relocated to some of Florida’s Work Camps, where they serve time in work squads performing public and community services.  Ft. Myers has a Work Camp.) There are no nuclear power plants. Lee County gets its electricity from a natural gas/oil power plant on the Orange River (a Caloosahatchee tributary).  There are no refineries (sugar, oil, or other), although a biodiesel refinery is proposed for Ft. Myers, to its north, near I-75.

In many U.S. localities the oldest section near a water body features a contiguous roadway that attracts sightseers. You haven’t seen this in the 2 areas we’ve visited so far and when we study the older Yacht Club Area, you’ll quickly realize this was never part of the plan.  Instead, the city’s design maximizes the number of waterfront lots for residences.  Quirky, bending residential waterfront roads deter speeding and afford homeowners remarkable privacy from sightseers.  Early advertising for Cape Coral aptly dubbed it a “sunlit city of winding waterways”.

Only within the last 12 or so years has Cape Coral begun permitting high rise condominiums (but so far none have been built in the Yacht Club Area). Gated communities have sprung up in recent years (but again, none are in the Yacht Club Area). Cape Coral has one or two shops offering pornography now (but they are discreet, as those things go). Waterfront dining opportunities are limited, but growing.  There are several low- to mid-rise national chain hotels and a few independent motels, as well as an ever-growing number of restaurants to suit wide tastes. There is public transportation (known as Lee-Tran) between these 2 major cities on opposite shores of the river. There are nightclubs and bars mixed in with the commercial areas. A free downtown trolley operates daily and then runs on Friday and Saturday nights to encourage movement between favorite entertainment spots. One spur of the route takes users to the Yacht Club during the day. Strip malls predominate in Cape Coral. However, the rising population has attracted major new stores: Sears, Lowe’s, Home Depot, Kohl’s, Target, J. C. Penney, Super Wal-mart, Bealls (pronounced “bells”), and many more.  There’s a full range of doctors but only one hospital. (Look to Ft. Myers for more hospitals and many more doctors).  “The Cape”, as residents affectionately call it, boasts a terrific modern library with a major recent addition.  It is part of the excellent Lee County Library System.  A huge second library is rising in the Cape’s northwest to serve not only Cape Coral but North Ft. Myers and Pine Island. The public and private schools are all quite modern and seem well-respected. Graduates certainly are accepted at the finest universities and military academies.  I volunteer every year as a judge at the Edison Science Fair, and the projects the students present always amaze me and bring pride.  Furthermore, when you compare the Cape to other Florida cities, the educational levels attained plus the per-household incomes are very high. (I used a Google search for “Lee County Demographics” and could select cities outside of Lee County, too.)

Most people in Cape Coral are fairly happy with this mix.  It means the city is remarkably quiet, crime is fairly manageable, residents tend to come and stay (which also promotes good schools), and the pollution is quite low.  Yet the rest of the county amply fills the void for any enterprises or amenities you might seek. Meanwhile the city benefits from the county’s larger commercial tax base.

As far as city descriptors, “trendy”, “elegant”, “cosmopolitan”, or “sophisticated” aren’t right.  The projects being designed and executed here now are definitely more upscale and the city is in a “polishing” phase, acquiring luster.  The city has always stood out as clean, friendly and by no means “backward”.  Somehow this city of 170,000 people maintains its surprising “home town” feel.  We have an amazing number of parks that offer an extremely wide range of activities. I would challenge you to come up with a favorite interest for which there’s no affiliated group in Cape Coral.  Early residents started the Power Squadron and the Sportsman Yacht and Sailing Club. Religious choices abound. There are groups for bingo, bridge, mah-jong, sewing, gardening, biking, antique car collecting and more, plus we have Elks, Moose, American Legion and VFW clubs, an Italian American Club, the German American Club, newcomers’ clubs for people originating from specific states — and it goes on and on.  Among the fun events the city sponsors are Oktoberfest, a holiday parade of lighted boats, the Tour de Cape bike ride, Cinco de Mayo, numerous street fairs and shows, and monthly sunset gatherings at the Yacht Club beach with car shows and vendors. The annual cardboard boat race typifies the fun and energy citizens put into (and get out of) life.  The 4th of July features a spectacular “Red, White, and Boom!!” show of fireworks off the Cape Coral Bridge.

The late 20th century settlers of Cape Coral imprinted it with their values: they were a good mix of hard working, successful, energetic, social, decent, nature loving, and entrepreneurial people.  Many came to escape the cities of Cleveland, Chicago, Pittsburgh (and others), but weren’t looking to be recluses. The Cape provides an awfully nice quality of life. You could be as proud to call it home as I am!

As Cape Coral Grew and Grew

Early city planning provided minimal shopping, police, fire protection, schools, churches, etc.  From 1959 to 1964 mail came by boat. The land developers were instrumental in getting the Cape Coral Bridge built between Cape Coral and Fort Myers. (It opened in 1964.) In fact, the developers very nearly built their own airport, but instead helped Ft. Myers extend the runway at the old military base known as Page Field into a suitable resource for early Cape Coral visitors and buyers. (The land developers marketed Cape Coral in the northern states with a “Fly and Buy” program!)  Now there is a very large modern, international airport in Ft. Myers, with Page Field servicing many private jets and corporate aircraft.

Early residents expanded facilities as growth demanded.  The land mass was eventually divided into quadrants: the southeast, northeast, southwest and northwest. The city grew by fits and spurts, beginning with the southeast and moving into the southwest next. A lot of infrastructure backfilling occurred, but the city was rich with vacant land. Roads were widened (and then widened again)!  Originally, everyone relied on private wells and septic systems. Cape Coral became a city in 1970.  In the ’70s the city installed the first public utilities for the southeast quadrant.  At the end of the 20th century and the beginning of the 21st, Cape Coral experienced unbelievable growth. The canals, the land, and the roads were all there waiting and suddenly we were on the national radar. The largely vacant northeast and northwest quadrants attracted many new single family homes and with them commercial development. Real estate prices have always been attractively low for the region. In 1997 the city opened a second bridge to Ft. Myers (the Veteran’s Memorial Mid-Point Bridge). The Cape added schools, fire stations, a new City Hall, and much more.  Utility expansion plans were laid, and the rising population plus rising property values seemed ready to provide tax money to fuel all the infrastructure growth needed or expected.  A very large part of Cape Coral’s growth was fed by liberal mortgage lending practices combined with low costs of new homes and the enormous spiral of ever-increasing property values.  Speculation and greed were rampant. Unfortunately, when property values fell, many of Cape Coral’s newest residents were upside-down in their mortgages.  Speculators rushed to get out of their contracts. Property abandonment mushroomed.  Foreclosure news took over the headlines.   There are still some homes under construction and building permits are being issued, but growth is negligible compared to what it was in 2006 when the air began to escape the “bubble”.

What Lies Ahead for Cape Coral?

The city hopes to improve its old downtown area with a vibrant urban village and there is a desire to bring in one or more colleges and/or new branches of existing Lee County colleges. Clean industries are sought. The city would love to acquire a sports team, but Ft. Myers has taken the lead in that area for now — with spring training sites for The Boston Red Sox and The Minnesota Twins.  They also host The Miracle, a Florida State League baseball team.  An East Coast Hockey League team, the Florida Everblades, has a 7000-seat home arena in nearby Estero. During hockey’s off season, the Florida Firecats, an AF2 arena league football team, fires up that arena.  Discussions are ongoing to possibly lure the Baltimore Orioles to the old Red Sox stadium in Ft. Myers when the new Red Sox stadium (that will replicate Fenway Park) is complete.

Meanwhile, around 2001, the Cape set up its Community Redevelopment Agency (CRA) to define new plans for the old downtown. With it came big plans, the designation of redevelopment areas and a staff of planners.   They envision a modernized walker’s downtown area with large riverfront condominiums and hotels on the fringes.  The city has made grants to businesses to promote improvements. Ironically, it may turn out this unexpected “breather” in all the rapid development may result in even better improvement plans being made.

To examine some of the planning underway, go to the website: www.downtowncapecoral.net.  You can view impressive architectural renderings by highlighting “About the CRA” at the top left, and then selecting from one (or all) of the first 3 entries: “Projects”, “Redevelopment Plan” and “Master Plan”.  Sections of the city have already been legally designated for redevelopment.  While the city experiences financial shortfalls (and budget readjustments occur), the CRA continues to plan, but execution has slowed. Watch for an upcoming report of my July 8th bus tour with Century21 Birchwood Realty, Cape Coral Mayor Jim Burch, and CRA members, as I learn even more about the redevelopment area and the plans.

You’re ready to integrate these descriptions into a visual tour of the Cape.  To watch a little over a 3-minute video with an aerial tour of the city, visit the website:  www.whatsupcapecoral.com.  Select the blue tab at the top right: “New To The Cape”. At the beginning, traffic approaches Cape Coral from the east via the Cape Coral Bridge. On the rightmost portion of the screen is a glimpse of the Gold Coast area (subject of the June 12th blog). At 3 minutes and 35 seconds you will be over the Caloosahatchee River at the southeastern end of Cape Coral approaching the Yacht Club Area.  Observe the beach and fishing pier as the segment ends.  Hold that image; you’re ready for the next blog: the Yacht Club Area’s Best Buys.

If Cape Coral (or Lee County) seems to offer what you like, you may want to follow some newspapers or other sources to increase your familiarity.  You may want to check out The Cape Coral Daily Breeze (www.cape-coral-daily-breeze.com), or the paper published in Fort Myers that covers local, state and national news, The News-Press (www.news-press.com).  You can also visit web sites for the various Chambers of Commerce.  (For example, the Cape Coral site is: www.capecoralchamber.com.)

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Cape Coral’s Gold Coast (6/12/2009)

June 12th, 2009

JOE SELLS SUNSHINE

REAL ESTATE RAINBOWS IN CAPE CORAL, FL!  AKA: JOE’S BEST BUYS                                        photograph-large

(All information herein may only be reproduced with written permission of author — 06/12/09)

As a Century21 Birchwood Realty agent, I live and work in Cape Coral FL.  While I cover all of Lee County, Cape Coral properties are my specialty.

In presenting tips for buyers and sellers, this blog focuses on less-publicized, superlative opportunities in Cape Coral. Please log intoListing Book to do your own Lee County MLS searches. Listing Book data updates every 5 minutes, with IDX (Internet Data Exchange). Never waste time on properties already pending, sold, expired, or terminated.  To access Listing Book, log on to: www.swflmls.listingbook.com.  (You won’t be spammed, sold, or harassed!!)  Show me your interests, and together we can chart a great course.

AHOY, SAILOR/INVESTORS!  LOOK AT CAPE CORAL’S “GOLD COAST” OPPORTUNITIES!

The June 5th blog introduced you to sailboat access properties in Cape Coral’s Unit 18.  It is the northernmost part of Cape Coral’s southeastern corner, where owners tie their sailboats to their own docks. Today you’ll find other very good buys in the nearby area the residents call the “Gold Coast”.  This area resides directly south of Veteran’s Memorial Parkway (Florida 884), essentially east of the commercial district on Del Prado Blvd. (Florida 867A), and north of Cape Coral Parkway (Florida 867).  Thus, it lies between Cape Coral’s 2 bridges to Ft. Myers.  (See the map, below.)

(Map Courtesy of Cape Coral Association of Realtors Copyright 2004 by Frank Gubasta)

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Map of Southeastern Cape Coral, Florida   The Gold Coast (Units 20-2, 20-1, 19, 12, 11, and 7)

Sailboat Access — No Locks or Lifts

Description of the Gold Coast

Don’t think Miami when you think of Cape Coral’s “Gold Coast”. There really are no beaches here, but many properties face east, so the area is bathed in morning sunlight.  In the history of Cape Coral, the first major area developed was “the Yacht Club” area, which lies south of the Gold Coast (and we’ll get there in a future blog).  In the Yacht Club area, the first lots were 40′x120′ (4800 sq. ft).  The Gold Coast, as the second major area developed in Cape Coral, features double sized lots (which at 9600 sq. ft. are now the legal minimum lot size: 80′x120′). Larger homes with 2 car garages were generally built here, whereas carports or single car garages were the norm for the smaller Yacht Club Area lots.  The Gulf American Land Corporation, which developed and sold Cape Coral beginning in the late ’50s, marketed these larger properties under the name “Gold Coast Estates”.  The residents probably loved the name and it stuck.   There is no question there is “gold” here for sailors: many beautiful homes on the canals provide rapid access to the Caloosahatchee River with no lifts, locks, or bridges in the way.  Then, you’ll find platinum along this 4-mile section of coastline — homes that sit right on the River’s shore!

As you compare this area (Units 20-1, 20-2, 19, 12, 11, and 7) to Unit 18, (see June 5th’s blog), the Gold Coast area’s principal difference is its substantial number of homes with Caloosahatchee River frontage. (There were only 3 in Unit 18, and none were for sale.) Certainly the more affluent families settling here in the ’70’s to’ 90’s gravitated to this newer area. Civic pride is rampant. Homes are well-maintained with mature landscaping.  Most homes have docks and pools.  There are many sidewalks and designated bike paths along the streets.  There are 3 public riverfront parks: H. S. Horton Park and Boat Ramp (at the northern end), Jaycee Park (near the southerly end), and the popular fishing spot at Bernice Braden Park (9.8 acres with picnic tables) off Cape Coral Parkway (at the southern boundary). The other 2 parks also have picnic tables, but being older, they include restrooms.  Horton Park (5 acres) features a boat ramp entering the Caloosahatchee River.  Jaycee Park (8 acres) has a hiking trail. As a young city, Cape Coral wisely reserved abundant park space.  See www.capecoral.net/ParksRecreation. While there are no golf courses in this district, good golfing is nearby. There are no gated communities in this region, so you won’t find association fees or rules.

Homes here typically date between the late ’70s and ’90s, making them neither the oldest nor the newest in Cape Coral. Neighborhoods are attractive and relatively homogeneous.  They are close to shopping, parks, churches, schools, and the hospital, but not too close.  There are no gated communities, so home owner association dues do not apply.  Generally, these are quiet, well-established neighborhoods of owner-occupied homes. There has never been a great deal of property churning here. The low number of foreclosures here means the neighborhoods retain a desirable appearance.  These factors equate to good value.

During the recent real estate boom many waterfront homes were either torn down to be replaced or updated significantly.  Homes appearing architecturally dated on the exterior are often very current inside. Remember, lots over 0.30 acres are rare in Cape Coral.

Are There Any Negatives?

The minor negatives for this area occur along the very narrow strips abutting Veteran’s Memorial Parkway and Del Prado Boulevard.  The homes nearest these roads experience some road noise and pollution.  Also a few homes and lots are near the water reclamation facility near the junction of Del Prado Blvd. and Veteran’s Memorial Pkwy. (See the map above.)  This facility exemplifies the city’s forward thinking.  Pre-treated sewage is processed into reclaimed water and piped to homeowners throughout the city’s southeast section.  Citizens water their yards with this non-potable water at a flat rate charge of only $70 per quarter.  During a recent drought an additional benefit became apparent.   The county issued a water restriction exemption for this portion of the city, reasoning that using the irrigation water replenishes the aquifer rather than depletes it.  Much greenery was protected. Unfortunately, you may detect mild aromas under certain wind or operational conditions.  On the other hand, you will find slightly lower pricing in the immediately affected areas and their 2 offsetting positives include greater proximity to both the Midpoint Memorial Bridge to Fort Myers and the Horton Park Boat Ramp.  Avid sailors who spend most of their time on the water should definitely look past these minor negatives.

What Other Bonuses Could Properties Here Offer?

As part of southeastern Cape Coral, all the homes here have access to city utilities for potable water, sewer, and irrigation water.  Whenever residents hook up for the first time, charges (payable over a 20-year period) incur, but with the maturity of the area, it is unusual to find lien balances remaining. (Transferable balances decline as each subsequent owner pays them off.) I’ll alert you where lien balances might remain with some of the newest construction. Whenever you can purchase a lot where a home has been torn down, there can be several possible bonuses to watch for: 1) these fees could have been paid in full; 2) if the city’s impact fees have already been paid once, they won’t apply to new construction on that particular lot; 3) there may be a seawall in place; and 4) earlier owners may have already installed “rip rap” in the canal or riverfront to protect their seawall.

The Property Selection Process

The single family residences below boast a minimum of 1700 sq. ft. under air. For this search, I did not impose a size limitation. However, I did exclude properties with less than 2000 sq. ft having 4 bedrooms.  (My reason: typically, all rooms become uncomfortably small, there are seldom enough bathrooms to match the number of bedrooms, and floor plans are often quite awkward.   Also, such problems negatively affect future resale value.)  If you prefer a smaller sailboat access home (perhaps 1100-1699 sq. ft.) on a similar size lot, we have many and you might save $40K or more. The primary value and potential for gain is in the land which stays fairly constant from property to property.  The consistency of the lot sizes means lot size rarely distinguishes a property as a good buy. However, properties that have “triple lots” (three 40×120′ lots or 14,400 sq. ft or 0.331 acres) do command a premium, as do larger corner lots that face intersecting canals.  You’ll find more variation in the land values in this area than seen before, because buyers also place a premium on properties closest to the river.  The ultimate: a large lot on the river!

Today’s focus is quite similar to June 5th’s but I’m including 2 riverfront homes as “Best Buys” (see Codes 263 and 264) but no riverfront lots. Once again, short sales are excluded, as are condos.

A note about condos: there are 48 low-rise, mid-rise, and high-rise condo units currently for sale in this “no lock/no lift” area as opposed to the same portion of Unit 18, where none qualified.  However, my “buyer’s agent” hat keeps me from recommending them.  Compared to prices several years ago, beautiful condos can be purchased at “fire sale” prices.  My concern is the large quantity currently competing throughout Lee County. It suggests a protracted period for price recovery and increased risk the condo market may not have bottomed yet.  There are also some condo-specific “traps”. When many condo owners default, the remaining owners may suddenly experience increases in condo/maintenance fees, etc.  Associations with large reserves may escape this, but dogged due diligence is required to protect buyers.  I remain happy to work with determined condo buyers, but including the condo category in my “Best Buys” blog might mislead buyers that this is easy or risk-free.  I am confident this will change.  The statistics for the 48 sailboat access condos in the Gold Coast are suggestive: prices range between $115,900 and $999,000 with an average price of $333,425; the size averages 1652 sq. ft.; the $/sq. ft. averages $195. Overall, this group has averaged 414 days on the market.  Since this is not an area of Cape Coral riddled with condo buildings (and Cape Coral has far less condos than other Lee County cities), encountering average days on the market exceeding 1 year confirms how sluggish this market is.

A Word About the Overall Market in the Gold Coast

Today’s selection of Best Buys, using the earlier criteria (no short sales, no condos, a minimum of 3 bedrooms and 1700 sq. ft.), range in price between $212,900 and $1,475,000. Note that the lowest price is higher than in Unit 18, likely influenced by the shorter boat trip to the Gulf of Mexico, and the higher price range reflects a few very good buys on (or extremely near) the river. Again, there are very few foreclosures in this area. Overbuilding or over-speculating was rare among these sailboat access properties — available land had become too scarce.  This area has not escaped market value drop.  What did surprise me was finding the majority of the sellers with newer homes are fiercely holding on to higher prices for as long as they can.  This is fair, because as you study the “Best Buy” selections, you’ll note that the majority of the properties approach 30 years in age.   Many of the older homes have had substantial interior updating, but it is hard to update architectural appearance.  Thus, the newer homes (being fewer in number with greater appeal) have their own market niche. Buyers seeking newer homes here should expect to pay a higher price, probably significantly higher than the assessed value, except in a very few cases where the seller is extremely distressed or a property has reached foreclosure.  Neither distress nor foreclosure status is rampant in this stratum at this time. In pouring over tax records, I see most owners having larger equity in these properties; in other words, fewer owners are “upside down”.  My crystal ball says those buys that can be had here today are very good and there may never be more downward pressure on this particular segment than there is now.

Why Might a “Best Buy” Property Still Be Close To Its County’s Assessed Value?

I will include a property in this area as a “Best Buy” even if it is barely under the county’s assessed value.  Knowledge of the county’s assessment practices permits this. Lee County uses mass appraisal techniques that track on-going sales during the year to very effectively set each property’s year-end value to match that of other like properties.  The homogeneity of the homes and lots in Cape Coral especially facilitates this.  However, just for a margin of safety, the county lowers its result for every property by 10% off its calculated value.  This means that at the beginning of the year, most properties will be assessed lower than full fair market value.  Depending on the market trends, the property value could be too high or too low at the year’s end, but then corrections are made again based on that year’s comparative sales.  Thus, I feel that an asking price only a little under the assessed value is a very reasonable starting point, particularly because I have a lot of respect for the county’s ability to assess properties.

The general Cape Coral market is still said to be falling.  Considering that the majority of sales statistics for Cape Coral are biased by the large volume of foreclosed homes that are selling at 50-65% off their recent purchase prices (e.g., $300,000 new homes are selling for $100,000), I’m reluctant to extrapolate this steep drop to the smaller number of properties under consideration today that have rarer attributes, such as water frontage, direct gulf access, acreage, etc.  I also believe that the county’s system is superlative when there are large numbers of sales of like properties, but may not be able to shake out small aberrations.  Consider that Cape Coral is the kind of city that attracts people who usually stay a long time. Suppose this sailboat access part of the market has not been stressed badly and the few sales that occurred were prompted by particularly unusual stressors.  If the assessors relied on limited numbers of highly distressed sales for this market stratum, the city’s land values may be too low.  (The owners won’t be complaining about their taxes being too low!) The fact I couldn’t find many land parcels priced at or below the assessed value in a buyer’s market backs this up.  I further tested this theory by examining all the sales of gulf access properties in this geographical area over the past 553 days. I found only 13 sales for homes and lots (think: “limited numbers”). The cheapest was a lot for $84,900 sold in 171 days and the most expensive was a home that sold for $575,000 in 1 day (think: “highly distressed”). Assessment is a difficult art/science in normal times, but periods of wild gyrations such as have occurred here in the past 4-6 years can lead to some imperfections in an otherwise excellent system. I rest my case.

Whatever forces are at work here, potential buyers will do very well if they can buy many of the properties we’re considering today for at least a little under their 2008 Lee County assessed values.

JOE’S BEST BUYS  06-12-09

SAILBOAT ACCESS HOMES & LOTS IN SOUTHEAST CAPE CORAL

UNITS 20-2, 20-1, 19, 12, 11, and 7

Status*: F=Foreclosure, NF=Not Foreclosure S=Short RF=Riverfront CD=Concrete Dock D=Dock beyond seawall   P=Pool  +swl=plus seawall  (not all vacant lots have seawalls)

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Cautions below do not mean any property should be bypassed. Rather, if I represent you, I would research more and we’d discuss the information fully.

Caution 1:  Property Codes 245 and 266 are near the Water Reclamation Facility.

Caution 2:  Property Code 246 is near commercial activity on Del Prado Blvd.

Caution 3:  Property Codes 248, 250, and 252 are near Everest and Veteran’s Memorial Parkway so they may experience more noise.

Caution 4: Property Code # 264 is being sold “AS IS”.  This is not a foreclosure, but as discussed before, it means the seller will not make repairs or lower the price if an inspection turns up problems.  If the seller were not to specify this, Florida Real Estate law would require the seller to make repairs potentially totaling up to 3% of the selling price.  [I would not interpret this to mean this property is known to have serious flaws, but rather the seller has probably lowered the asking price to the true bottom line and repairs costing as much as $44,000 would break the deal.]  Nevertheless, the buyer should still conduct an inspection so that discovery of any repairs the buyer would not want to undertake would permit withdrawal from the contract.

Summary statistics for the full sample of sailboat access homes in Cape Coral’s “Gold Coast”

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Remember:  A rising tide lifts all boats!

For more property info, call Joe Dolliver: (239)218-2677

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Posted in Cape Coral Real Estate, Florida Foreclosures, Florida Waterfront Real Estate, Lee County, Southwest Florida Boating Paradise | 1 Comment »

JOE SELLS SUNSHINE (Unit 18 6/5/2009)

June 5th, 2009

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REAL ESTATE RAINBOWS IN LEE COUNTY,  FL!

AKA: JOE’S BEST BUYS

(All information herein may not be reproduced without author’s written permission  06/04/09.)

As a Century21 Birchwood Realty agent, I live and work in Cape Coral FL.       While I cover all of Lee County, Cape Coral properties are my specialty.

This blog presents tips for buyers and sellers.  Any agent can find very basic distressed or foreclosed properties in Lee County — but few will give you personal attention to finesse your way throughphotograph that maze. An experienced, dedicated agent uncovers bargains and opportunities here daily. This blog focuses on less-publicized, superlative opportunities in Cape Coral.

Please log into Listing Book to do your own Lee County MLS searches.  Listing Book data updates every 5 minutes, with IDX (Internet Data Exchange).  Never waste time on properties already pending, sold, expired, or terminated.  Log on to www.swflmls.listingbook.com to access Listing Book.  (You will not be spammed, sold, or harassed!!)  Show me your interests and together we can chart a great course.

AHOY, SAILOR/INVESTORS!

CAPE CORAL HAS UNIQUE OPPORTUNITIES NOW!

Recently I worked with ardent sailors from New England to locate their retirement home.  Cape Coral offers wonderful waterfront properties that fit most sailors’ desires, now at incredibly low prices.  This couple sought a single-family waterfront home near the Caloosahatchee River (which feeds directly to the Gulf of Mexico), with no need to pass through a lock or lift.  They wanted a minimum of 1800 square feet in the price range of $250,000-$400,000.  Two to three years ago this would have been impossible, but not now. We found wonderful properties, and I concluded this is a special, overlooked segment of the market — worth every investor’s attention.  Consider that at the ‘06 market peak, average sailboat access homes regularly commanded $600,000 and more!! The recommendations below illustrate this. (Compare the price paid at the last sale or mortgage date (taken from tax data) to the current tax assessment.)

While foreclosures offer the best bargains, they often require cash buyers who are ready to pounce.  I am not currently recommending short sales to my customers: too many take excessive time to go under contract and close. I hope to see this change as the banks accept the inevitable and become more reasonable. (Future blogs may find short sales back in favor.)

Today’s focus is one segment of “sailboat access” properties: the Southeastern corner of Cape Coral, known as UNIT 18. Here the owner has deeded waterfront with city sewer and water utilities. Most homes have docks and pools.  None of these properties are condos. While none are on the Caloosahatchee River, all feed to it, and none of them require passage thru a lock or lift.  Future blogs will feature other properties (including condos) both in our waterfront communities where the owner can rent marina space and enjoy additional amenities and more (like here) where the homeowner owns canal or river frontage.

Most of the current real estate hype in Cape Coral targets very basic homes with no water access, due to the large number of foreclosures in this troubled asset group where price discounts have reached and sometimes exceeded 50-65%. The waterfront properties haven’t attracted the same attention. In studying over 100 properties within Cape Coral’s  sailboat access stratum, I found the foreclosure property percentage to be less than 2%.  Many of these properties are languishing.  This has resulted in surprisingly realistic pricing — even by those sellers not distressed by foreclosure or short sale circumstances. The properties recommended below are priced close to (or below) 2008 assessed value. Those owners experiencing high average days on the market might even consider lower offers, if they can.  Outsiders need to realize that owners here have been pummeled with staggering losses in value in a very short period of time through no fault of their own.  It is good to see these owners being realistic in pricing, because few of us in our lifetimes have experienced property value drops of 50-65%. Don’t expect the sellers to be happy about it! Some of these sellers borrowed substantially to update their homes, yet the data below doesn’t provide a full picture of those mortgage amounts.  Likely many sellers are accepting a loss to protect their credit or because they feel morally bound to do so.  As you learn about Cape Coral, you will find there is a strong moral fabric running through it.

The map highlights the area of focus.  These properties lie east of Del Prado Blvd., north of Four Mile Cove Parkway, and south of Viscaya Parkway. While North Fort Myers intrudes into a segment of the area, it was eliminated in the searching.  (Later blogs may feature it.) Thus, all boaters enter the Caloosahatchee River north of the Midpoint Memorial Bridge that connects Cape Coral to Ft. Myers.  Sailing distance to the Gulf of Mexico from this area is perhaps 1-2 miles longer than from other areas in Cape Coral, but the river is wide here and the trip passes beautiful homes.  The county seems to devalue this land slightly to reflect its greater distance from the Gulf of Mexico.

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(Map Courtesy of Cape Coral Association of Realtors Copyright 2004 by Frank Gubasta)

Map of Southeastern Cape Coral, Florida   Unit 18                            Sailboat Access with No Locks or Lifts

Homes here typically date between the late ’70s and ’90s, making them neither the oldest nor the newest in Cape Coral. The attractive, quiet, and relatively homogeneous neighborhoods are  close to shopping, parks, churches, schools, and the hospital, but not too close.  Zoning is for single family homes. There are no gated communities, so home owner association dues do not apply.  Generally, these are well-established neighborhoods of owner-occupied homes. The low number of foreclosures here means the neighborhoods retain a desirable appearance.  All these factors equate to good value.

During the recent real estate boom many waterfront homes were either torn down and replaced or significantly updated.  Many homes that appear architecturally dated on the exterior are very current inside. You may be surprised by the very consistent lot sizes.  Lots over 0.30 acres are rare in Cape Coral.

The single family residences below boast a minimum of 1700 sq. ft. under air.  If you prefer a smaller sailboat access home (perhaps 1100-1699 sq. ft.) on a similar size lot, we have many and you might save $40K or more. The primary value and potential for gain is in the land which stays fairly constant from property to property.  The consistency of the lot sizes means lot size rarely distinguishes a property as a good buy.  However, the higher average $/sq. ft. for smaller homes, makes them less of a “buy” in my opinion.  Furthermore, Cape Coral buyers should see better future resale or rental returns with the larger homes, which is why I chose this minimum size for a “best buy” recommendation in this search area.  (Remember, Florida homes don’t have basements or attics!)

JOE’S BEST BUYS

SAILBOAT ACCESS IN SOUTHEAST CAPE CORAL   06-04-09

Status*: F=Foreclosure, NF=Not Foreclosure S=Short RF=Riverfront CD=Concrete Dock D=Dock beyond seawall   P=Pool  +swl=plus seawall  (not all vacant lots have seawalls)

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Cautions below do not mean any property should be bypassed. Rather, if I represent you, I would research more and then we’d discuss the information fully.

Caution 1:  Property #238 is noted with “yacht*”, because it is being sold with a 28′ Irving sailboat.  This could cause serious problems if a mortgage is required and the down payment fails to fully exclude the value of the sailboat. The age and condition of the yacht are not provided with the listing, so I (as a motorboater, not a sailor ) don’t know if the inclusion of the yacht accounts for the full $100K difference between asking price and city’s 2008 assessed value.

Caution 2: Property #240 is the only foreclosure in this group.  It is stated to be missing its AC unit.  While it has public water and sewer, there may be a balance due the city if the utilities were financed.  It is being offered “AS IS”, which is typical for Cape Coral foreclosures, but in Florida this means that the seller will not make representations about the condition of the property and if problems are found upon inspection, the seller will neither repair the problem nor lower the price.  I counsel all my buyers of AS IS properties to get full inspections and we write their contracts so that they may withdraw without penalty up until the end of the inspection period.

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