Condos in Gulf Shores Blog

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

I’ve have noticed a lot of creative approaches to selling real estate in Baldwin County lately.  Here are just a few:

• Homeowner’s Association dues paid for a year
• Insurance paid for a year with the purchase of a home or condo in Gulf Shores
• Free boat or car if you’ll buy this Orange Beach condo or home
• Free vacation to the islands with the purchase of this Fort Morgan beach condo
• $1,000, $2,000, $5,000 and I’ve even seen a $10,000 bonus to the selling agent if you will sell my real estate in Baldwin County.

I can’t remember seeing the free boat, car or vacation idea work, but I know of sales that have closed where the HOA dues or insurance have been paid at closing.

The selling bonus is a whole different deal, though.  It’s pretty self-explanatory really.  The seller offers X number of dollars to the buyer’s agent if he brings a buyer to closing on the real estate he has listed in Baldwin County.  Now, it’s not illegal, but here is the problem that I have with it.  I make my living selling real estate in Baldwin County.

Not only will I not let a selling bonus influence whether or not I show a property to a potential buyer, I will disclose to the buyer that a selling bonus is being offered and negotiate it out of the purchase price.

Here is the bottom line, in my not so humble opinion.  The market, the buyers and sellers, determine the price at which real estate will be sold – and even whether it will be sold at all – as we have come to realize in the last two years.  The real estate agents do not drive the market as some would have you to believe.

I would much rather see a property owner price his property competitively than offer a bonus to the selling agent. 

If you own real estate in Baldwin County and have been thinking of selling, I would welcome your call or e-mail.  I’ll be happy to do a Price Analysis and go over a marketing plan to get your property sold!

I noticed this week that an Orange Beach condo had recently sold in a complex where I used to own a one bedroom unit.  On January 30th a one bedroom unit sold for $235,000.  Wow, I thought, how long has it been since something in Four Winds sold for $235,000?  I looked back in our handy dandy Multiple Listing Service for Baldwin County real estate and found a one bedroom unit at Four Winds sold in November of 2003 for $236,500.

I wondered if that would be true of Fort Morgan beach condos and condos in Gulf Shores.  Here is what I found.

A two bedroom Fort Morgan beach condo at The Beach Club sold on February the 2nd for $389,000.  A two bedroom sold in November of 2003 for $389,900.

On January 15th a three bedroom condo in Gulf Shores called Surfside Shores sold for $350,000.  A 3BR sold in January of 2004 for $343,000.  Pretty consistent, huh?

I showed property to a couple last week who were looking for an Orange Beach condo in the $300,000 to $350,000 range.  Among the condos I showed them were the two least expensive Gulf front 2 bedroom units at Seaside Beach and Racquet Club.  They called back today to talk about making an offer and both units have received accepted offers within the last week.

The point I am trying to make is this:
Yes, we are in a buyer’s market.
Yes, sales have been molasses slow.
But when properties are priced correctly somebody will buy them!

If you are thinking about purchasing a home or condo in Gulf Shores, an Orange Beach condo or a Fort Morgan beach house or condo, right now is the time to start looking.

Give me a call or shoot me an e-mail and let’s talk about real estate in Baldwin County.

Since May of 2006, one of the most popular places for owners and guests of homes and condos in Gulf Shores, Orange Beach condos and Fort Morgan Beach condos has been The Wharf in Orange Beach

Just a week or so ago I was talking with Wally and Dave on my weekly show on WTBC Radio and the subject of the Amphitheater at The Wharf came up.  We often talk about the positive influence that The Wharf has made on our area and upcoming events and the entertainers that are scheduled.

I just checked the web site and the first three acts of 2008 are posted!

Now, I’m a country music fan so I think the first event of the year is great.  Alan Jackson will kick off the year on March 1st.  Alan has been a pure country music writer and performer for two decades with numerous smash hits including A Lot About Livin’ (And a Little ‘Bout Love) and Where Were You (When the World Stopped Turning).

The very next night on March 2nd the headliner is a band called Three Days Grace.  Wikipedia describes their genre as Alternative Metal and Post Grunge.  Uh, Okay.  I really can’t add to that.

Corey Smith comes up on March 15th.  Corey is an up and coming country/southern rock artist that looks to have promise.

I’ve been very impressed with the entertainers that The Wharf has attracted in the last two years.  Their grand opening in 2006 featured Hank Williams, Jr., followed by Kansas, Three Dog Night and Montgomery Gentry.

2007 was action packed with ZZ Top, Widespread Panic, Lorrie Morgan, Brad Paisley and Willie Nelson just to name a few.

So if you are an owner or a guest in a condo in Gulf Shores, an Orange Beach condo or a Fort Morgan beach condo you will want to keep an eye on what’s going on at The Wharf.  You might just be able to catch a super show by one of your favorite performers!

I drove down to the “T” the other day, right in the midst of all of our condos in Gulf Shores.  That’s where State Highway 59 (also called Gulf Shores Parkway) meets the beach road called Beach Boulevard.  I was really happy to see construction activity going on!

Years ago there was a dive bar there called The Hangout.  It was very aptly named because for as long as I can remember people that came to the area and stayed in homes or condos in Gulf Shores, Orange Beach condos or Fort Morgan beach condos would come to…well…hang out.  It was the perfect place to sit around, have a hamburger or some fried shrimp and the cold drink of your choice.

A developer bought the whole city block a few years ago and had ambitious plans of building a mixed use array of condos, restaurants, hidden parking and a walking mall.  When the sales spigot got turned off in 2005 he very prudently decided to shelve those plans and sit on it for a while.

Now comes the home run part.  He has now decided to build a restaurant on part of the property and call it – you guessed it – The Hangout!  This is not going to be just any old restaurant.  This is going to be a 250 seat restaurant and outdoor beach club.  The plans that he has put before the Gulf Shores City Council call for a beach volley ball area, a sandy play area for the kids, an outdoor stage and a wading area surrounded by cabana.

OK, here is what I don’t understand.  The developer has asked the city to erect a $250,000 (you read that right) sign on the corner.  It would measure 42 feet tall and 20 feet wide.  He would also install a 10 ft. by 17 ft. electronic sign below the main sign and allow the city to broadcast things such as emergency messages, municipal events and water conditions.  Now I am the first to admit that I know absolutely nothing about the restaurant business but I think I would drive a 2X4 into the ground and nail a piece of cardboard on it that says “BEACH BAR!”.  But what do I know?

I do know that people who rent and own homes or condos in Gulf Shores, AL, Orange Beach condos and Fort Morgan Beach condos are always looking for a good place to eat.  Every eating establishment in the area goes on an hour or two wait by 6:30PM on any given night in the summer.

This will be a welcome addition to an area with an extreme shortage of places to eat and will most certainly be a home run if done right!

I ask this question in the spirit of the New Year and Auld Lang Syne…Should our activity in real estate in Baldwin County, AL for 2007 be forgot and never brought to mind?  The answer is a resounding “YES”!  Whew, I’m glad that one’s over.

I thought it would be enlightening to take a look at the numbers for 2007 and a few years previous.  I have used basically the same format as I use on my Market Watch page, so this will be somewhat familiar to you.

County Numbers

There are a few interesting things to note here.  The number of homes and condos sold in Baldwin County Real Estate both dropped by about a third from 2005 to 2007.  The dollar volume almost followed the trend of the numbers.  Single family homes were down by $493 million, about 30 percent.  Condos were off by $326 million which is about 25 percent.

The eye popper of the numbers above is the number and dollar volume of foreclosures that Baldwin County Real Estate has experienced in the last year.  The number of foreclosures in Baldwin County has increased by over 2 ½ times from 2005 to 2007.  The dollar volume grew by seven times.  Whoa!

But wait, let’s put that into perspective.  There were 505 foreclosures last year.  Yes that is a lot when you compare it to years past, but the number of foreclosures was still only 3½% of the total number of properties sold (14,416).  So the foreclosures are out there but not in the numbers that the media would have you believe.

Now let’s look at condo sales on Pleasure Island.  These are sales that are posted on our Multiple Listing Service and contain some Pre-Construction listings.

Sales of Condos in Gulf Shores

Orange Beach Condo Sales

Fort Morgan Beach Condo Sales

The days of flipping and 50% appreciation are gone.  The sales numbers for Baldwin County Real Estate during the last few years have been gruesome.  If you believe the newspapers and the television, you’ll want to go hide under a rock.

It has been a tough time for sellers, especially the ones that purchased property in the last few years expecting to make a quick profit.  Buyers have the upper hand. And here’s why:

• There is a lot of inventory on the market to choose from and the prices are coming down.
• This area will continue to grow.  Many Baby Boomers want to retire within 50 miles of the coast.
• Money is still available.  I don’t deny the sub-prime fiasco but lenders are in business to lend money. 
• Interest rates are at historical lows.

There are opportunities out there for all of us in Baldwin County real estate!  Let’s find them together.  I invite you to give me a call at 251-978-7118 or drop me an e-mail to John@CondosinGulfShores.com.  

John Ricks
RE/MAX of Gulf Shores
Gulf Shores, Alabama
www.CondosinGulfShores.com
John@CondosinGulfShores.com
251-978-7118

I had a wonderful conversation the other day with a lady, (Hi Kathy!), that owns a unit in Orange Beach condos called Regency Isle.  It occurred to me after our conversation, that I have had countless similar conversations with prospective buyers, as well as sellers of condos in Gulf Shores, Orange Beach condos and Fort Morgan beach condos, about condo fees (Homeowner’s Association Dues) and what they cover.

I think of Homeowner’s Associations as small businesses, because basically that is what they are.  They have income (from the property owners) and they have operating expenses just like any business.  These associations have a Board of Directors and a President of the Board, which are comprised of property owners.  The President and the Board are charged with collecting the dues and making the decisions about the day to day operation of the business, and how best to spend its money.

What do the dues cover?

As businesses differ, so do Homeowner Associations of condos in Gulf Shores, Orange Beach condos and Fort Morgan Beach condos, but here are some items that most associations pay from the HOA dues.

• Custodial Services
• Reserve Funds
• Water, Sewer and Trash Services
• Basic Cable TV
• Pest Control
• Common Area Property Taxes
• Common Area Maintenance – this would include elevator and swimming pool maintenance if applicable

Telephone and electrical service is usually something that the property owner pays separately, but there are cases in which some of the larger complexes and rental companies have switchboards and phone service as part of the dues.

Some of the larger and/or upscale condominium complexes have full or part time security officers.  This can be quite expensive as you might imagine, and must be added into homeowner’s dues.

Now here’s the kicker!  Insurance.  The world of insurance for condominium associations changed with a certain “tropical occurrence” (you know, we don’t use the “H” word anymore), as of September of 2004.

Before 2004, insurance was normally covered by the condo fees.  Prices, however, increased dramatically as complex policies came up for renewal and most associations did not have the reserve funds to pay the increased premiums.  So what did they do?  They assessed the homeowners for the difference.  Some made the decision to continue to assess for insurance, while others felt it more prudent to increase the HOA dues to cover it.

It’s pretty much a foregone conclusion that insurance rates will never be back to 2004 levels, but since we have been through a couple of seasons with very little activity, premiums have begun to decrease.  I believe we will see most associations begin to fold the insurance premiums back into the association dues as rates level off.

What do you think about future insurance rates?  I’d love to hear from you.  Post your comment and let me know.

Are you thinking of buying or selling condos in Gulf Shores, Orange Beach condos, or Fort Morgan Beach condos?  Give me a call at 251-978-7118 or email me at John@CondosinGulfShores.com.  I’m always happy to answer any questions you might have.   

John Ricks
RE/MAX of Gulf Shores
Gulf Shores, Alabama
www.CondosinGulfShores.com
John@CondosinGulfShores.com
251-978-7118

My wife, Jan, and I had the occasion to go to a Fort Morgan beach condo, called The Beach Club, the other night for the  Frank Brown International Songwriters Festival®. 

I have been living here in paradise for over six years, and I must admit I have never been to one of these events, even though I have had many people give me great reports on the talent, and how much fun it was. 

If you are a Baby Boomer like me, you’re probably familiar with one of the most famous songwriters from several years ago named Paul Williams.  He wrote countless hits, including songs for the Carpenters and The Monkees.  For some reason though, he thought he could sing and he couldn’t.  The guy was just an AWFUL singer!  So whenever the Songwriters Festival would come around, I just could not get fired up about it because all I could think of was Paul Williams!

Anyway, Jan and I decided to drive a few miles out Highway 180 on Saturday night to the Fort Morgan beach condo complex called the Beach Club.  This is one of 25 or so venues for the event which attracts almost 300 songwriters from all over the world.

Some of the performers we saw Saturday night were…

        Rusty Golden and John Ricks

Rusty Golden – the son of William Lee Golden, (the Mountain Man) of the Oak Ridge Boys.  He has performed with the Oaks, the Gatlin Brothers, and Hank Williams, Jr.

Monty Powell – Monty has written for the likes of Alabama, Diamond Rio, Billy Ray Cyrus and Keith Urban.  He wrote “Achy Breaky Heart” for Billy Ray Cyrus and “Meet in the Middle” for Diamond Rio.

Tom Hambridge – This guy is pretty amazing, too!  He has written for or performed with George Thorogood, Lynyrd Skynyrd, Keith Anderson, Boston, James Taylor and Willie Nelson.

If you enjoy taking in a great concert at a Fort Morgan beach condo, I highly recommend attending the Frank Brown International Songwriters Festival® at The Beach Club. 

If you’re tired of just visiting Fort Morgan and are ready to live this great beach lifestyle, give me a call now toll free at 866-978-7118 or send me an e-mail.  I’d love to show you some of the great buys you can get today on Fort Morgan beach condos.

John Ricks
RE/MAX of Gulf Shores
Gulf Shores, Alabama
www.CondosinGulfShores.com
John@CondosinGulfShores.com
251-978-7118

You can still find great buys on real estate in Baldwin County, Alabama.  I attended an auction the other day that did not have anything to do with the owners defaulting or being close to defaulting on the loan for their homes or condos in Gulf Shores, AL.  

This was a horse of a little different color…

The former Mayor of Orange Beach was involved in a beach house in Gulf Shores, which was central in the public corruption case that resulted in his unfortunate incarceration.  This resulted in a 5,300 square foot, 8 bedroom, Gulf front home on West Beach being offered in an absolute auction by federal marshals. 

About 50 people gathered on a breezy fall day last week to watch a dozen bidders from eight states bid on this Gulf front home that was built in 2005 and never occupied.  The final bid for this real estate in Baldwin County, Alabama, was $1.65 million by a couple from Columbia, MO.

There have been only eight Gulf front homes and condos in Gulf Shores, AL, that have closed above the million dollar mark in our multi-listings this year.  Three of the eight were homes.

As I left the auction that day, I thought, “OK, they got a pretty good deal, but I don’t think they stole it.”  They paid $1.65 mill, but they are responsible for unpaid property taxes, insurance and new furnishings and appliances.  I figure that tab should be somewhere in the neighborhood of $200,000.  That puts the final number around $1,850,000, which is $346 per square foot.

Considering that the least expensive Gulf front home in Gulf Shores was a four bedroom home that sold for $575 per square foot, I’d say they got a pretty darned good deal on their purchase of real estate in Baldwin County, Alabama! 

What do you think?  Just post a comment and let me know if you think the Columbia, MO, couple got a good deal.  Have you gotten a good deal?  Post a comment and tell me about it!

Several extremely well priced homes and condos in Gulf Shores, AL, have come on the market recently.  Give me a call today at 251-978-7118 or email me at John@CondosinGulfShores.com, and I’ll share the details about these good deals with you.

John Ricks
RE/MAX of Gulf Shores
Gulf Shores, Alabama
www.CondosinGulfShores.com
John@CondosinGulfShores.com
251-978-7118

If you’ve always dreamed of living on a Gulf Shores golf course, a new listing at The Peninsula provides a wonderful opportunity for you to fulfill that dream. 

The Peninsula is an upscale golf and tennis community located 5 miles west of Highway 59 on Fort Morgan Road.  The Peninsula has over 800 acres but is not as densely built as some large properties because of the Gulf Shores golf course and 400 acres of nature preserve.  This development has so much to offer you as a resident with an active lifestyle as well as the aesthetic beauty of a bayfront golf community.

If you want to live or have a second home on the island, you’ve got to give this property serious consideration.  At approximately $141 per square foot, this is a serious deal for a nice home in a gated golf course community.

Built in 2005 by Cooper Homes, 76 Lagoon Drive at The Peninsula has never been occupied.  So you have brand new appliances and the builder’s warranty is still in effect.

This home offers:
• 2300 sq. ft.
• all brick exterior
• three bedrooms and three baths.
• open floor plan
• kitchen with tile floors, granite tops, pantry and stainless appliances
• large screen porch to enjoy the beautiful Gulf Shores weather
• priced at $324,900. 

I really believe this may be one of the best deals in the area!

You’re going to love living in The Peninsula…

The Peninsula’s golf course consists of 27 world class holes designed by renowned architect Earl Stone.  This Gulf Shores golf course has more than 30 lakes and plenty of sugar white sand bunkers to add interest and challenge.

There are 8 top of the line Hydra courts for the tennis lovers. The amenities are rounded out by a fitness center, indoor and outdoor pool and a mile long stretch of beach overlooking the Bon Secour Bay with a pier and cabana for the exclusive use of the residents.

The home prices in Peninsula range from the low 300’s to $1.5 million.  Many are Florida style homes open floor plans and sizes ranges from 1,650 to 5,000 sq. ft.

Let me give you a private tour of this beautiful Peninsula home in a premiere Gulf Shores golf course community.  Don’t wait or this bargain will be gone.  Call me now at 251-978-7118. 

If this isn’t exactly what you’re looking for, I can find the home that’s a perfect fit for you.   Call me today at 251-978-7118 or email me at John@CondosinGulfShores.com.

John Ricks
RE/MAX of Gulf Shores
Gulf Shores, Alabama
www.CondosinGulfShores.com
John@CondosinGulfShores.com
251-978-7118