Under Contract, now what! Hopefully you have teamed up with a seasoned and experienced Realtor to manage the litany of contract deadlines and third parties now involved in the process. Inexperience may cost you money in the transaction.
Let’s discuss the inspection due diligence period that’s agreed upon with an executed contract, typically 5-10 days from the effective date of the contract. As part of the AS IS contract, the buyer has the right to inspect any aspect of the home; roof, plumbing, electrical, termites, lead base paint, drywall to mention a few and to verify the home is in acceptable condition or cancel during this period for any issue or discoveries they may find. In most cases the buyers secure a licensed home inspector for these services.
Setting the client’s expectations, we suggest to all clients to get an inspection on any home from new construction to the historic 100-year-old homes. The inspection report will range in detail and have seen reports over 75 pages long, but the length doesn’t necessarily infer major issues. A seasoned and professional inspection will have a summary page of items that they have noted of concern. One term that is used frequently “beyond useful life” and insurance companies love to have those items replaced but that doesn’t mean they are broken or not working correctly. For example, the useful life of an A/C is five to seven years, but a 12-year-old A/C showing 16 degrees temperature difference from the return to the air vent is performing better than most new ones. We have also seen where a new construction home didn’t have any attic insulation but passed county inspections. Having an experienced team will help you transverse any of these situations. Precise information explained is an absolute need when buying or selling a home and keeping the contract from falling apart.
As we continue to look at the Plant City housing data, we have just completed the first half of the year, selling 512 homes versus 537 last year or 4.7 percent decline in units sold. The 1H 2022 average selling price was $354,010 which is a 28 percent increase over 1H 2021. If no other data was reviewed it would appear the market was gaining strength but that isn’t the case, our markets are starting to slow and level off on the month over month figures. June-2022, our market area saw 86 homes sold a slight improvement from the previous months. The average selling price per square foot was $213.94, which accounted for a 0.03 percent decrease over last month. The average selling price was $369,420 or a 2.8 percent decrease over last month.
The active inventory increased for the third month in a row from 1.09 to 1.69 to 2.1 month’s supply. We are gaining ground on the equilibrium of 4-6 month’s supply levels, but still have probably six months from obtaining that equilibrium, and buyers gaining an edge over the sellers.
While comparing the Median prices month over month data, June finished with a Median sales price of $336,213 which was less than May’s number by 6.6 percent and a 1.6 percent increase over the 2022 year-to-date average. The average days on market (ADOM) for June was 19.5 days, a rise over May’s 15.9 days.
What does the near-term future in real estate look like? Inventory levels will continue to gain more supply, which may lead to increased ADOM levels. Mortgage rates have been erratic but on the upward trend. National news reports more negative situations in the real estate market overall than here in Florida. My simple explanation, many more people still want to relocate to Florida and communities like Plant City. This in turn creates a higher demand for our properties.
As always, if you are in the market to buy or sell your home … seek out an experienced professional realtor to assist you in this transaction process. There are too many consequences to go it alone without representation. If you have any questions, please reach out.
Sales Snapshot
The following residential properties were a sample listed as sold on the Greater Tampa Realtors Association MLS in June 2022 for the Plant City Market Area.
The home at 1314 S Gibbs St sold June 10 for $130,000. Built in 1951, it has 3 bedrooms, 3 bath and 1300 square feet of living area.
The home at 5748 Harvey Tew sold June 6 for $175,000. Built in 1988, it has 3 bedrooms, 2 bath and 1248 square feet of living area.
The home at 8911 Mary Ivy Dr sold June 10 for $235,000. Built in 2007, it has 4 bedrooms, 3 bath and 1754 square feet of living area.
The home at 2014 E Willow Dr sold June 29 for $255,000. Built in 1979 it has 3 bedrooms, 1 bath and 1120 square feet of living area.
The home at 2525 Turkey Creek Rd sold June 1 for $255,000. Built in 2004, it has 3 bedrooms, 2 bath and 1152 square feet of living area.
The home at 1105 Cason St sold June 8 for $270,100. Built in 1979, it has 2 bedrooms, 2 baths and 1075 square feet of living area.
The home at 1305 E Cherry St sold June 2 for $294,000. Built in 1989, it has 3 bedrooms, 2 bath and 1440 square feet of living area.
The home at 2608 Ellis Rd sold June 13 for $310,000. Built in 1993, it has 4 bedrooms, 2 baths and 2272 square feet of living area.
The home at 2703 Wilder Trace Ct sold June 16 for $335,000. Built in 1999, it has 3 bedrooms, 2 baths and 1458 square feet of living area.
The home 2322 S Fairway Dr sold June 14 for $350,000. Built in 1987, it has 3 bedrooms, 3.5 baths and 2123 square feet of living area.
The home at 2006 E Timberlane Dr sold June 16 for $377,000. Built in 1979, it has 3 bedrooms, 2 baths and 1595 square feet of living area.
The home at 2110 Sycamore Ln sold June 3 for $395,000. Built in 1987, it has 3 bedrooms, 2.5 baths and 2263 square feet of living area.
The home at 8303 S County Rd 39 sold June 17 for $417,000. Built in 1967, it has 3 bedrooms, 2 baths and 1508 square feet of living area.
The home at 1810 Via Chianti St sold June 16 for $460,000. Built in 2016, it has 4 bedrooms, 3 baths and 2796 square feet of living area.
The home at 6614 Papa Guy Ln sold June 30 for $550,000. Built in 1986, it has 4 bedrooms, 2.5 baths and 2032 square feet of living area.
The home at 3325 Mayday Dr sold June 30 for $1,050,000. Built in 1993, it has 5 bedrooms, 3 bath and 6045 square feet of living area.