RE/MAX Roatan – June 2014 Newsletter
The past few years, for anyone in the real estate business, it has certainly been years of ‘adjustment’, after the popping of the real estate ‘bubble’. Developers did ‘fire sales’ and many home owners ended up with financial issues, whether it be here or there.
Each year real estate ‘adjusts’ in the market providing new prices and opportunities for Buyers. Just like the stock market, real estate fluctuates up and down. I believe it was for about 50 years total that the real estate market, pretty much everywhere, plugged along increasing in values 1.5 to 3% annually, until the late ‘90’s +/- when then it really took off. Originally it was every retiree’s ‘nest egg’.
People who bought early in places like Cayman Is., Virgin Islands, etc were very well rewarded for their vision, as were many people here on this island. Then ‘POP’ went the bubble and the people who bought in at the end (2004 to 2009), got clipped pretty bad in regard to prices the market would pay if they became sellers.
Many were upside down on mortgages and lost value on their investments. Here prices dive-bombed , especially on vacant land and lots decreasing as much as 72% in selling price, (depending on when you purchased). Of course when you lower prices , no matter what business you are in, you open the market to many more buyers and that is what happened here. Opportunity knocks.
Real estate , (before the bubble years), was for your long term ‘nest egg’. What your parents relied on as their life savings. Again, this was before the years of 5% down and buy, flip, buy, flip and in the U.S. people being told that they deserved a home versus could they actually afford a home.
There are some Sellers out there that still do not ‘get it’ meaning they paid whatever it is they paid and still think they are going to get that and more, when the market is just not there.
Legitimate real estate companies do not ‘BUY’ a listing. By that I mean that professional companies do what is called a ‘CMA’, (Comparative Market Analysis). Because here on Roatan we have had a MLS for over ten years anyone you do business with (Buying or Selling), should be using this tool to give you the correct price that you should be selling for or buying at.
Unfortunately there are still those (Buyers, Sellers and Real Estate Agents), that price things at what people say, or ‘feel’. There is emotion involved and often Agents and even Brokers would rather tell you what you want to hear versus the truth. They will tell you that you can get more for your property than what you can so they can list your property instead of their competitor.
Unfortunately that will have you either sit on it indefinitely because it is listed at more than what the market will pay, or the Agents will come back and tell you that you need to reduce the price when you ask them why it is not selling or even being shown for that matter.
Although prices have seemed to level off and land prices ’12 to ’13 went up a very small amount, the market is just chuck full of very nice bargains. Of course the real estate people are all working much harder than they used to in that when you are on a percentage it is a lot nicer to sell something at what was full price to now what is half the price. Right now prices are great. Some are in the 1999 to 2003 levels. If you are a Builder, Contractor or developer, there are really bargains and the need for spec homes.
Usually a couple times a year I go through the entire MLS and try to pick the best deals out there. This of course is my opinion and that may differ Broker to Broker, but overall I do not think you can go wrong with anything on these lists.
The below link is for homes. I did not include the high-end homes for sale and although they really provide some great deals I thought I would save that for next month. Here are what I feel are the best residential deals on the island –
Right now …………..WOW what a bargain. If you are not prepared to pay the price of a home and are looking for the very conservative investment that provides some of the best buys in the Caribbean, this is your spot. Buy it, build on it later for your retirement. A great plan with properties in many instances for what it costs for a nice car.
Check those out right here – Great Value deals on lots and acreage.
Here are a few listings that are new or we added video to give you a better idea of what you are looking at –
New Listing – 4br home, almost new, good construction, short walk to the beach
Recently reduced with video of interior, near West Bay Beach
Home Site – Very nice, value location, with a short walk to the beach
Here is an excellent deal on a 2br/2ba home -Great Views – Motivated Seller
Ok, now you did your ‘shopping’ for your place in Paradise is over for the month, you deserve a break. Check out the video on this link. A bonding experience with the local sealife! https://www.roatan-realestate.com/roatan-info/
Summer is a great time to visit and check things out. It is a spectacular trip for you or you and the kids. Plan a trip and check us out.
Have you checked out the ‘News’ this month? There were articles posted in regard to the new Cemesa Hospital, Concierge Medical Service, Building on the Island, ‘Raw TV’, Retiring Overseas,………… A good source of information via the search bar.
Life is short folks. Live it!
Best regards,
Larry and all of us here at RE/MAX on Roatan (and yes, now Utila!)
