Sarasota Real Estate

Questions and Answers

Have a question for us to answer? Send it along! The following are questions we frequently get from our customers, we hope this helps you in your search.

NEIGHBORHOODS

Q. “How can there be such a wide variance between the same type home in Sarasota? I am looking at two very similar homes – same age, same size – and they nearly $100K apart in price – what is going on?”

A. This could be caused by a variety of things, but it most likely comes down to neighborhood. What you can’t see in a listing photo is if that home was built on a street of old, rundown properties; the listings are misleading, showing the home as being in Sarasota when in fact it is in North Port, or Englewood which are very different markets. We recommend you speak to a buyer’s agent at the onset of your search, to determine which areas and neighborhoods will work for you; then you can do “apples to apples” searches based on area and zip code.

Q. “Why are so many homes available on the same street?”

A. Sounds like a red flag. It could be many reasons, but none of them are especially encouraging. There may be changes coming to the neighborhood (new highway next door, for instance) ; or perhaps the homes were sold primarily to investors during the boom, and they are all trying to get rid of them. Generally, in good solid neighborhoods, most people want to STAY, so everyone fleeing is a “proceed with caution” sign. A couple exceptions to that rule – new developments, and huge developments that although many homes are available, it is still a small percentage.

TAXES AND INSURANCE

Q. “Two homes on the same street have very different taxes. Why should I have to pay more in taxes than my neighbor?”

A. Although it appears the tax rate differs greatly, it does not. The discrepancy you see is in the assessed value of the home. When a homeowner “homesteads” their property, they receive a tax break off assessed value – it is also protected against large price (tax) increases during boom years. The lower tax amount is likely a homeowner who has owned his home since before the boom – when a new owner buys the property, the values will reset and equalize. For more, check out our blog.

Q. “Are there any factors I should consider when buying a home that will affect my insurance rates?”

A. There are many. The first and most obvious is location – if you are in a flood or wind zone, your insurance will be higher. A few other factors – age/type of roof, age of home ( homes built after 1996 follow the most sweeping changes to hurricane code, but those built after 2002 follow most recent changes). Even if the home is older, if the seller has updated windows, purchased hurricane shutters or taken other precautions, your insurance should be lower.

Q. I have heard that it is impossible to get insurance in Florida – is that true?

A. Not at all. Although it was harder and more expensive right after the 2004-2005 hurricanes to get insurance, new provides from around the country are offering quality insurance for fair rates.

Q. “I heard that taxes are paid in arrears in November for the whole past year – if I buy my home in August, do I have to pay taxes for the period of time I didn’t even own the home?

A. No. Pro rations are made at the time of closing. A credit will be issued to you from the seller, the pro ration based on last year’s tax bill.

VALUES

Q . “I see the value in the Sarasota market, but I can’t help but wonder if I should wait to see if prices drop further?”

A. No one wants to purchase a home and see the price fall. However, all signs seem to point to being at the bottom – inventory shrinking, sales rising. Perhaps most compelling is not the sales price, but the interest rates – on a $250K home, if you wait for a 5% reduction in sales price, but in the meantime the interest rates climb 1% – you would pay nearly $80 MORE per month for the home at 5% less.

Q. “How much off list price can I offer and still get the property?”

A. This is a very popular question, with no real concise answer. Because each seller individually prices their property, some price it very well (at current market value); some price very aggressively (under current market value); and some price well above market value. Obviously, based on how the property is priced versus what it is worth will determine how much we can “take off”. On some exceptionally priced properties, we actually counsel buyers to offer a little MORE than list, based on the fact that there are sure to be multiple offers, and the property is well worth it.  Across the board in Sarasota, the average sales price is 4-5% off list price; the exclusive buyers agents at True average double to triple that amount.