Condos in Gulf Shores Blog » Real Estate

A vacation home is a great way to create lasting memories with your family. It gives you the chance to have your own dream vacation each year with all the comforts of home. However, a vacation home can also quickly become a nightmare. Here are some important ideas to consider before you buy a Gulf Shores vacation home.

• DO buy a home in one of your favorite vacation spots. If you like to spend time in a certain location, it is probably a good place for you to buy a vacation home because you already know the community.
• DO make sure you buy a Gulf Shores home you like. Keep in mind that your vacation home is more than an investment. It is a retreat for your family.
• DO hire a property management team to help you rent your vacation home. Renting a vacation home requires a lot of work. Keeping track of a calendar, maintaining the property, and collecting rent can quickly become overwhelming. Leave the details to professionals so you can enjoy your home.
• DON’T buy a vacation home thinking you’ll make money from it. Many people think they can cover the costs of their vacation home by renting it to others. While renting your vacation home is usually a good idea, you cannot count on that income or expect the home to pay for itself.
• DON’T buy a vacation home you cannot afford. Loans for second homes tend to be more costly. Add this to common maintenance costs, management fees, and insurance premiums to determine if you can truly afford the property.
• DON’T buy a vacation home if you won’t be able to spend time in it. The reason you own a vacation home is to ensure you will take regular vacations. Make sure you will be able to enjoy your new Gulf Shores home.

Start creating vacation memories with your family. Let me help you find your new Gulf Shores home. Call me today at 251-978-7118 or email me at John@JohnRicks.com.

Imagine owning a vacation home where you can relax and unwind. Sales of second homes are on the rise because prices for Gulf Shores real estate are lower than they’ve been for years. If you’re thinking of joining the group of happy second home owners, you need to do a little planning to make sure your new home is an enjoyable purchase.

1. Think about how far you’re willing to travel.  Make a few drives to the area before you purchase, to see how long it takes to get there and if you’re comfortable with the drive. Most people choose their second home within a distance of about 100 to 200 miles.
2. Spend time in the area where you’re thinking of purchasing your vacation property.  Keep in mind that you won’t spend your entire vacation in the home.  Find out if the area has what you’re looking for.  For instance, if you like being able to go to the store at nine o’clock in the evening, areas where all the stores close at eight may not work for you.
3. When you find Gulf Shores real estate that you like, be sure to get a home inspection.  Just because the property looks good to the eye doesn’t mean it will be good for your wallet.  Some issues, such as bowing walls, may not be visible without close inspection.
4. Look for a reasonably sized home. Don’t choose one that may be too large to maintain.  Though you might dream of a big, rambling ranch house, this may not be possible for your budget.  The bigger the home, the more maintenance it takes.  Remember, this is your second home to maintain, so be aware of how much it will take, in time and money, to keep up.

A vacation home makes a great weekend and family spot, and in today’s Gulf Shores real estate market you can get a great home at a great price.

If you need help locating or selling a vacation home, call me today at 251-978-7118 or email me at John@JohnRicks.com.

If you own a home, you need homeowners insurance. This important insurance policy protects your home and personal belongings if they are damaged or destroyed in a natural disaster or theft. However, you don’t have to pay a fortune for adequate insurance coverage. Here are 5 ways to save on homeowner’s insurance for your Gulf Shores home.

1. Raise your deductible. Your deductible is the amount of money you pay before your insurance company pays for a claim on your Gulf Shores home. The higher your deductible, the lower your insurance premium. If you can afford to raise your deductible from $500 to $1000, you can save as much as 25%.
2. Buy your auto and homeowners policies from the same company. Many insurers will give you a discount for purchasing more than one policy. You can save as much as 15% with these combinations, but make sure it really is less than purchasing separate policies from difference companies.
3. Make sure you are insuring your home, not your property. When you bought your home you paid for both the house and the property where it is built. Your property won’t be destroyed in a disaster, so you don’t need to insure it. When buying insurance, consider what it would cost to rebuild your home, not what you paid for it.
4. Reassess the value of your personal property every year. You need insurance to protect you from loss, but you don’t want to pay for more insurance than you need. There’s no reason to insure your 65-inch television for $2,000 if it is now worth only $500.
5. Secure your home. Your insurer will usually give you discounts for security features like deadbolts, smoke detectors, burglar alarms, and monitored security systems. Some companies also give discounts for storm shutters and reinforced roofs to protect your home from natural disasters. Ask your insurer about steps you can take to improve your home’s security and lower your insurance costs.

It doesn’t take much to save a lot of money on your homeowners insurance. If you’re ready to buy or sell your Gulf Shores home, give me a call.  I’d love to help.  Call me today at 251-978-7118 or email me at John@JohnRicks.com.

If you’re like many buyers, you probably think that a foreclosure is the best real estate value you’ll find. While it’s true that Gulf Shores real estate in foreclosure is often priced lower than similar properties for sale, foreclosures aren’t right for everyone. Before you decide to buy a foreclosed property, do some research and make sure it really is your best deal.

• Price. Gulf Shores real estate in foreclosure is often priced lower than other properties on the market. This is because the bank is only interested in getting back the money they loaned the seller. However, if the seller has more than one mortgage because they took out a home equity loan, the home can be priced even higher than the current market value. Don’t assume that a foreclosure is automatically a better deal.
• Inspections. Foreclosures are sold as-is. The bank will not make any repairs to the property. If it has been well maintained by the seller, this makes the home an excellent value. Unfortunately, sometimes sellers damage homes before they move out or don’t take care of their homes while they live there. In that case, you may have to spend considerable time and money making needed repairs.
• Negotiations. When the bank is eager to sell the property, they are sometimes willing to negotiate terms like down payment and closing costs. However, since the bank’s only goal is to recoup their costs, you won’t have the same bargaining power with them that you would with a traditional seller.
• Closing Time. Perhaps the greatest disadvantage of a foreclosure is the length of time it takes to close. The bank will usually require additional paperwork and qualifications that can delay closing. If the seller had more than one mortgage, you will have to wait until the bank decides how much each lender receives from the sale.

Right now is a great time to find a deal on Gulf Shores real estate! Let me help you find one. Call me today at 251-978-7118 or email me at John@JohnRicks.com.

Choosing a condo in the Gulf Shores area as you might expect is similar in some ways to choosing a single family home, but there are basic differences as well. You want something that fits in both your lifestyle and your budget. Finding the right condo takes some time and careful consideration. Here are a few questions to ask before you buy a condo.

1. 1. Location, location, location! You want a Gulf shores area condo that fits with your lifestyle. Find out how far it is from work, your children’s school, hospitals, shopping, and entertainment facilities. It just doesn’t make sense to buy something far away from where you work and play.
2. Do I like the floor and the view? Think about how the floor you choose will fit into your life. You may love the view from a second floor unit, but do you really want to carry groceries up the stairs each week? A first floor condo in Gulf Shores may be convenient, but are you willing to deal with the pool noise? Likewise, find out what is planned for nearby properties. Your view of the Gulf can easily turn into a view of another condominium if you choose to purchase a condo that is across the street from the beach.
3. What kind of amenities does the complex have? Find out exactly what you get with your unit, like the number of parking spaces. You also want to know the location and conditions of common areas. Most of the complexes have at least one swimming pool.  But you may also want to check to see if there is an indoor pool as well and maybe a fitness center or tennis court.
4. Will it rent well or do I even want to rent?  If you are buying strictly for investment or if your finances dictate that you will have to rent the unit out to help make the payments, you will want to choose a complex that is popular for rentals.  We can get rental histories on individual units.

If you think the condo ownership is for you, I can help. Let me help you find a condo in Gulf Shores. Call me today at 251-978-7118 or email me at John@JohnRicks.com.

When the real estate market starts to decline, everyone starts talking about short sales. A short sale happens when the bank is willing to accept less than what the sellers owe on their Gulf Shores real estate. This means you may find a great deal on your next home. However, short sales aren’t right for everyone and they can be very frustrating to deal with. Before you decide to buy a short sale, you need to ask yourself some important questions.

1. Can you afford to buy the property as-is? You can and should have an inspection done before you buy Gulf Shores real estate. However, with a short sale, the seller is most likely not going to be able to make any repairs before they sell the property. After all, they’re selling it because they don’t have the money to make the payments. Make sure you’re able to afford any repairs the property will need.
2. Is it really a good deal? You need to pay attention to the property’s value. How does the price compare with what other properties are selling for? Paying $175,000 for a home when other homes are selling for $130,000 means you’re really not getting a good deal. Just because the home is a short sale doesn’t mean it’s worth your time and money.
3. Are you prepared to deal with the bank? The bank’s only concern is getting their money from the home sale. To ensure this happens, the bank will require extra paperwork. You can bet that they will take their ever-loving sweet time negotiating.  I have even seen some addendums from short sale companies make the buyer acknowledge that it may take four to six weeks to get a response. It doesn’t matter to them how long you have to wait. If you don’t have time to wait for the bank to approve the short sale, you probably should look for a different home.
4. You should also be aware that some lenders actually put clauses in their addendums saying that they can accept other offers at anytime prior to closing.  That’s right!  If you get an accepted contract on a short sale property, the lender can actually accept a better offer that comes in the day before closing!

Right now is a great time to buy a home, whether it’s a short sale or not.  Actually you may find that a foreclosure or even a good old motivated seller might be an easier process.  Whatever the case let me help you find the Gulf Shores real estate that best fits your budget and needs.

Call me today at 251-978-7118 or email me at John@JohnRicks.com!

Well, if the $4 gas kept anyone away, they were replaced by someone who lived closer to the area that decided not to drive or fly to a further destination.

I did something I don’t normally do on a holiday weekend.  We usually stick close to home on the big weekends, but my wife and I went out on Friday night to hear the Tip Tops at The Hangout.  When we walked in at 7:00PM we were told there would be a two hour wait!  Before leaving (I don’t do two hour waits), we decided to see if there were any seats at the bar.  We lucked out and got a couple a seats at the bar and had a great time.

The Hangout seems to be doing a great job of booking entertainment.  They have a band booked every day for the entire month of June.  It is going to be interesting to see what impact they have on their competition like the Pink Pony Pub and LuLu’s.

I had the opportunity to show property on Sunday morning.  I met my buyers a little before 9:00AM so we drove by several condos in Gulf Shores and Orange Beach condos before a lot of people got out stirring around.  Most parking lots were brimming with cars. 

Will the high gas prices have an impact on buyers and visitors of condos in Gulf Shores, Orange Beach condos and Fort Morgan beach condos?  It’s really hard to say, in my opinion.  There will certainly be some families that will forego a beach trip and stay at home.  Let’s look at it a different way.  Oil prices are double what they were this time last year but gasoline prices are only up 22%. 

Okay, “only” might not have been the best choice of words but the point is that if last year it cost $100 dollars in fuel to get to your condo in Gulf Shores, this year it would cost $122.  That is not great news, certainly, but not completely unmanageable for most people either.

I believe that people will always want to come to the beach and our beaches with sugar white sand and emerald green water, while not the most exotic of locations, are certainly a desirable as well as an affordable destination.

If now is the time for you to consider purchasing a condo in Gulf Shores, Orange Beach condo or Fort Morgan beach condo please give me a call at 866-978-7118 or shoot me an e-mail at John@JohnRicks.com!

With the wind howling and the rain blowing sideways we stood for over an hour waiting on the auction that has generated as much interest in real estate as anything I have seen in several months.

Crystal Tower is a condo complex in Gulf Shores on West Beach Blvd.  It was completed about a year and a half ago and is unique in that it is built across the street from the beach and has an air conditioned walkover to the beach. 

The developer sold a hundred of the 170 units during pre-construction and held back the rest to sell as the market appreciated.  This is common practice but the problem was that the market didn’t appreciate so they were stuck with about seventy units that did not sell.

They decided to try an absolute auction.  The National Auction Group spent some serious money advertising the event and it was a success.  There were somewhere in the neighborhood of a thousand people that attended.  The auction company printed 300 bidder’s packets and they ran out 30 minutes before the auction started.  Auction employees went scurrying around to print out another hundred packets that were handed out until an hour after the auction was supposed start.

I know there had to be at least 100 Realtors there.  Some of us were representing clients but many were there to see how much interest there was and the prices these condos in Gulf Shores would command.  I’m here to tell you that this was not just a casual interest because most of us got wet.

There were a total of 44 units sold from $275,000 to $346,500.  It was estimated that there were 1,000 people in attendance from 20 states.  I was told there were multiple large newspaper ads placed in several major cities as well as the Wall Street Journal.  I don’t think anyone stole these units but even with the high interest and the number of people bidding, I think most ended up somewhere around market price for the condos in Gulf Shores.  $275,000 for the condo plus closing costs plus $15,000 to $20,000 to furnish it and you are in the $300,000 range for a well appointed condominium with nice amenities that should rent nicely.

If you would like to know more about auctions or foreclosures on homes or condos in Gulf Shores, I invite you to give me a call or shoot me an e-mail!

John Ricks
251-978-7118 Cell
866-978-7118  Toll Free
John@JohnRicks.com

Assuming you have already established that you can afford to make monthly payments on a mortgage for a Gulf Shores area home, second home or condo, you are already ahead of a lot of potential buyers. 

You probably have already checked your credit report and found that you have a high credit score (ideally).  Now you want to know what to look for when shopping for a mortgage.

Details to Check Out when Mortgage Shopping:

• Broker Fees
• Interest Rate
• Prepayment Penalties
• Length of Loan
• Application Fees
• Credit Report Costs
• Appraisal Expense
• Closing Costs
• Required Down Payment

Pitfalls to watch out for:

• Hidden Charges: Read and ask about fine print
• Avoid Fly-By-Nights: Make sure companies are reputable
• Strongly Consider Using a Local Blank or Mortgage Broker: I certainly don’t have anything against the bank or mortgage guy or gal that you have used in your hometown for years, but this is a resort market and there are idiosyncrasies that can slow down the approval process and in some cases throw it into a tailspin.

Have these things available for your mortgage broker:

• Bank Statement
• Tax Returns
• Paycheck Stubs or Copies
• Marriage or Divorce Papers
• Statements on Interest from any Investments
• Life Insurance Policies

Once you have collected all this information, you are in a better position to learn what type of mortgage you prefer and qualify for. 

Two Loan Types:

• Fixed interest rate loans with consistent, equal monthly installments
• Adjustable interest rate loans: interest rate fluctuates

Primary Residence, Second Home or Investment Property:  How you classify the property will play a significant role in the interest rate you receive.

If this sounds complicated right now, rest assured—I can help you get through the maze in one piece.  Before you know it, you’ll be sitting pretty in your new real estate property in Baldwin County. 

Let’s get started!  Give me a call now at 251-978-7118 or send me an email at John@JohnRicks.com.  I will also be happy to e-mail you a list of banks and mortgage brokers that I have used with success.

Unless you have been living under a rock, you have heard that foreclosures are on the rise in this great country of ours.  Many buyers that are considering wading back into the market are calling to say they are only interested in foreclosures.

While I would never steer anyone away from buying a foreclosure, they are certainly not for the faint of heart.  Let’s look at a few facts.

As of today, April 8th, there are only 59 Single Family Homes listed as foreclosures in all of Baldwin County and only 21 of those are on the island (Gulf Shores/Orange Beach/Fort Morgan).  There are 61 condominiums that are listed as foreclosures out of a total of 2,697 listings (just over 2%) in the Baldwin County MLS.  The point here is that, yes, there are foreclosures out there but they are not rampant as the media would have you to believe.

I have had the occasion to show, write contracts on and even close on a number foreclosures in the last several weeks and I have learned a few things that may be helpful. 

They are not always the least expensive property in the complex or neighborhood.  While they can sometimes be purchased at good prices, my experience has been that they cannot be purchased for pennies on the dollar relative to market price. 

In most cases you must submit a pre-approval letter (I recommend doing that with any offer) from your lender and the earnest money will be required to be a certain percentage of the offering price.

The property is always sold “as is, where is”.  In other words what you see (or can’t see) is what you get.  The homes are usually vacant and utilities are turned off, so if you want to do an inspection on the property, it is up to you to have the utilities turned on (in your name of course). 

The seller will always make you sign an addendum that takes between 10 and 20 pages to say that you know you are buying the property “as is, where is”, the Earnest Money is non-refundable, the seller won’t do any repairs and you will hold him harmless for everything.  Oh, and they will take your first born child if you back out of the deal – OK not really

Then there’s that pesky 12 month Right of Redemption Law in Alabama.  That means that the former owner has one year from the day that he was foreclosed upon to satisfy his debt and reclaim the property.  That is not likely but a possibility nonetheless.

That, in a nutshell, is the lowdown on dealing with foreclosure properties.

If you are interested talking more about foreclosures or any other real estate in Baldwin County, just give me a call or shoot me an e-mail!

John Ricks
251-978-7118
John@JohnRicks.com