Sanibel Real Estate Articles

Deals Abound in Gulf Access Homes

August 14, 2009


Deals abound in Gulf-access homes

Realtors advise that now right time to buy

By Tina Giufre
Special to news-press.com

Realtors have been saying it for a long time: Now is the time to buy. Buyers looking for Gulf-access properties are finding them these days at bargain-basement prices.

Paula Kiker, broker of Lahaina Realty in Fort Myers Beach, recently sold a beachfront, two-bedroom, two-bath unit with under-building parking at Seaside condominium for $350,000.

“Under $400,000 — that’s the hot number for condos and homes on the island,” she said. “Under $400,000 on water is selling.”

Kiker said canal-front pool homes on the island are now priced in the mid- to upper-$400,000s. Even so, a three-bedroom, two-bath home situated on a Gulf-access canal on Washington Court recently sold for just $250,000. Its list price was $359,900.

“That was a phenomenal deal,” Kiker said. “Sellers are still out there, being motivated.”

Sanibel market

Eric Pfeifer, broker-owner of Pfeifer Realty Group in Sanibel, describes similar activity with the lower-priced, canal-front homes on the island.

“Canal-front homes on Sanibel are actually selling better than in 2008, but the average price has dropped 21 percent since last year. This is mostly because the buyers are looking for the lower-priced houses, but not necessarily on the best canals for boating,” Pfeifer said.

“There have been some distressed sales either due to a short sale situation or foreclosure,” he added. “These lower end sales have skewed the average sales prices on Sanibel. Consequently, all of the prospective buyers now want these types of deals.”

Canal-front pool homes in Sanibel start at $578,000 and top out at $2,995,000. Canal-front condos are available from $315,000 to $549,900.

Gulf-front and bayfront property sales in Sanibel have slowed this year, according to Pfeifer. Those who have purchased those properties are enjoying the reduced prices.

“There was a recent sale of a bayfront home in need of remodeling that sold for $1,150,000. The neighbor realized the property was priced well below the market value and purchased it for himself. This sales price is 30 percent below the average sales price for bayfront homes this year, which is 50 percent off the average sales price from 2008,” Pfeifer said.

“There has been only one Gulf-front home sold on Sanibel this year,” he continued. “Although it has not yet closed, the asking price was $2,895,000, which is almost 10 percent below the average sales price from last year for Gulf-front homes.”

Pfeifer anticipates that when the market turns, it will turn fast.

“The typical Sanibel buyers are out there waiting for the economy to show signs of recovery by way of consumer confidence. Once this happens, we will see a quick shift in the demand of these more desirable waterfront properties.”