They are everywhere! The roads, the beaches, the stores! Tourists! Living and working in Destin, Florida brings its challenges.  Locals gather at the workplace lamenting about traffic on Highway 98, Scenic Gulf Drive and 30A, and how much more the roads can bear. Vacationers seem to have found a permanent home in our environs on the Emerald Coast.  It used to be just high season from the Spring to Fall, but in the past year, there are more people in town than I’ve ever seen.

Getting from the Mid-Bay Bridge to Sandestin used to be an easy 15 minutes on Highway 98. Now, there are bottlenecks due to construction and it’s more like 30.  Try for a shortcut on Scenic Highway 98, and it’s not any better.  Try getting to the beach from Driftwood Road, where my real estate office is, and you’ll have to dodge people walking four-by-four down the middle of the street, carrying beach bags, umbrellas and sunburns. There is no avoiding it, and them.

Of course, we love our tourists in Destin, Florida. They are the economic strength behind our coastal area.  They support the restaurants, hotels, condos, beach rentals and shops. That is all good. But instead of using logic and reasoning to override the typical mental snap of “Don’t they know how to drive?”, “Why are they so slow crossing the street?” “How many people does it take to buy chips in the grocery store?” “Is that golf cart licensed to be on the road?”, there are a few mind tricks I’ve learned to put me more in the “Om” moment with tourists.

Here they are:

1. Patience. My mantra is “We are tourists, too.” When we locals visit another tourist place, like Cape Cod, Nashville, or Florence, Italy, we are “them”!  We don’t know where we are going. We crowd attractions. We are slow. We are aimless. Yes, we drive the locals crazy there.  So, they are “us”. Be patient with them.
2. Kindness. Instead of criticizing the family leaving the beach, walking on the hot pavement in their bare feet, really “see” them.  Look at the cute little girl and her brother, with their sun hats and kid glasses, following their father and mother like ducklings. They are adorable! Smile!
3. Have a “Vacation Mind”.  This is the greatest trick. Tourists aren’t just getting from point A to point B, from work to appointment to grocery store to home. They are in awe of our Destin area. They notice things we don’t have the time for (isn’t it true anywhere you live?). They appreciate the blazing white sand. They are enraptured by the blue-green Gulf of Mexico waters. They soak in our steamy climate.  They love Destin Harbor, the local fish, the cuisine, the trendy shopping.

Tourists remind us to appreciate what’s all around us.  Who has time for that? Maybe we should make time.

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-259-0422
Email Wendy: itswendy@rulnickrealty.com

Wendy Rulnick, Broker, lists and sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Crestview, Sandestin, Seaside, Rosemary Beach, Okaloosa Island, Fort Walton Beach, Niceville, Freeport, Bluewater Bay, Navarre, Florida.

You see them advertised everywhere in the Destin Florida real estate market– “Coming Soon! New Listing!” But, what does that mean, exactly? The Emerald Coast Association of Realtors is guided by rules regarding entering listings into the Multiple Listing Service (MLS). “Coming Soon” is a special category for listings that are not quite ready to be fully activated on the market, or so they say.

Key points about the “Coming Soon Status” for the Destin, Florida market are:

1. It’s only a short-term status when preparing a property for active status
2. It’s used to notify other Realtors that the listing will be made fully available to the public once preparations are completed.
3. The listing may be in “Coming Soon” status for 30 days before being fully “active” in the MLS

But, what difference does it make? Not much. The Emerald Coast Association of Realtors allows showings of “Coming Soon” properties. Many Realtor association across the nation do not allow “Coming Soon” listings to be shown.  In other parts of the country, that category builds up anticipation for a new listing to be premiered. But, locally, in the Destin Florida market, that’s not the case.

Of course, a seller, with the advice of his agent, may decide to place a listing in the “Coming Soon” category and not allow showings. Then the listing may be activated once the property is ready.  On the other hand, many listings that are newly activated already have a date specified on when showings may begin.  For example, a newly active listing may state that showings may begin in two days, for a period of two days, and only between certain hours. That’s because the real estate market on the Emerald Coast of Florida is quite vigorous and there are normally multiple showing requests immediately upon MLS entry.

The bottom line is, if your agent sends you a listing that’s in the “Coming Soon” category, and you want to see it now – ask.

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-259-0422
Email Wendy: itswendy@rulnickrealty.com

Wendy Rulnick, Broker, lists and sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Crestview, Sandestin, Seaside, Rosemary Beach, Okaloosa Island, Fort Walton Beach, Niceville, Freeport, Bluewater Bay, Navarre, Florida.

What are terms and conditions of a real estate sale, and why are they important to know? When a listing “closes” in the Emerald Coast Association of Realtors MLS in Florida, a field is required where an agent enters “sales notes”. The requirement is as follows:

“Listings changed to a Closed status must include any applicable information regarding factors affecting the sales price in the Sales Notes section.”

It is important to know what terms or conditions affected a sale to help other real estate agents price new listings correctly, or to make adjustments to existing listings either with price or incentives. This information is also extremely important to real estate appraisers who are hired by lending institutions or individuals buying homes.

What are some terms and conditions that affect a sale price?

Some examples are:

1. Seller paying buyer closing costs (like a credit to cover a percentage or dollar amount of buyer’s title insurance, loan expenses, points, lender charges, a property survey, inspections, etc.)
2. Buyer paying seller closing costs (like real estate commission, doc stamps on the deed)
3. Seller “crediting” the buyer for repairs (the credit could be a dollar amount applied towards buyer’s closing costs or pre-paying a contractor for the cost of the job)
4. Agents waiving commission if it’s their own purchase or sale
5. Buyer allowing a seller to remain in the property after closing, either with or without rent
6. Property appraising under contract price. Was price adjusted downward or did buyer complete the purchase notwithstanding?
7. Seller including furnishings that buyer wants
8. Seller doing repairs for a buyer prior to closing (that may have been noted in a home inspection or termite inspection)
9. Seller doing upgrades for a buyer prior to closing (like painting a house, putting on a roof, installing a new water heater – some of these are Florida specific items due to Florida insurance issues)
10. Buyer allowing seller to use the property (if it’s a rental) at a future date, or dates, free of charge, or for reduced rate, as an incentive to accept a lower sales price
11. Multiple offers which created bid atmosphere and pushed up pricing
12. Buyer paying for upgrades which increased sales price (new construction add-ons or customization).
13. Seller paying homeowners association or condo association special assessment in full or part, and for how much
14. Buying agreeing to pay special assessments
15. Seller including boat, car, golf cart, bikes, etc.
16. Buyer waiving home inspection or other inspections
17. Buyer using Florida escalation clause
18. Property selling “as is”, if major repairs were needed, that should be noted
19. Buyer paying cash
20. Buyer closing faster than normal
21. Seller financing

If I were doing a market analysis for a new Destin Florida listing, how would some of these sales terms affect my pricing suggestion? If similar properties sold for a certain amount, but they were sold furnished, and my seller did not want to sell furnished, that may reduce his sales price.  If a seller of a similar property were allowed a month extra to stay in the house, but my seller wasn’t asking for a free rent back, then his price may be higher.  If a similar property sold without a home inspection, then that’s a buyer contribution to price, so my listing might sell for more.  If a similar property sale included a golf cart and boat, but my listing does not, it may sell for less. Is this making sense?

Of course, there are many other pricing factors, but sales terms and conditions are critical to analyze the current market for the property.

It is our duty to the public to use our best skills and abilities to recommend a correct listing price to our sellers. Noting sales factors is imperative.

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-259-0422
Email Wendy: itswendy@rulnickrealty.com

Wendy Rulnick, Broker, lists and sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Crestview, Sandestin, Seaside, Rosemary Beach, Okaloosa Island, Fort Walton Beach, Niceville, Freeport, Bluewater Bay, Navarre, Florida.

Do you want that house? You can bet others do, too. Chances are that when you make an offer on a Destin, Emerald Coast of Florida, house or condo, there will be at least one competitor trying to outbid you. If you had your agent ask the right questions first, you could only hope that the seller would pick your offer.  But you may have another option.

Florida Realtors has just released an official “Escalation Addendum” for use with the Florida real estate contract (either the FR/BAR, CRSP, commercial contract, or vacant land contract). An escalation addendum, or escalation clause, states that the offer price will automatically go up if certain conditions are met. By using this new addendum, you may potentially outbid the highest competing offer up to an amount you specify.

How does the Florida Escalation Addendum work? Let’s look at an example:

1. Your agent found you a home in a very popular neighborhood, for example, in Bluewater Bay. Houses stay on the market there for less than a day, and most sell for over asking price. It’s a huge military and retirement community that has a very fast real estate market.  You’ve been looking for weeks and this is the house!
2. Let’s pretend the house is listed for $500,000. With the advice of your agent, you are going to write an offer for $515,000.  The only catch is, there will likely be a dozen competing bidders, all of them submitting by the offer deadline. You decide that your maximum price in this situation would be $530,000, or $30,000 over asking price. You don’t, however, want to offer $530,000 initially and give all your  money away if you don’t have to.  That’s where the escalation addendum comes in.
3. The Florida Escalation Addendum would specify the amount by which you are willing to increase your offer over a competing offer.  For example, you could state you would be willing to pay $5000 over another offer.  If the highest offer was $520,000, your offer would change to $525,000.  If the highest offer was $527,000, your escalation addendum stated you would not go over $530,000, so that would be your highest offer- not $532,000. Does that make sense?

What are the Florida Escalation Addendum’s stipulations?

1. The Competing Offer that the seller may choose to show you (with buyer’s name redacted), must still be in effect. In Florida, offers have an expiration date.
2. The Competing Offer must be bonafide. The seller cannot have trumped up a fake offer to entice you to offer more.
3. You must specify if you will pay cash or finance any increased amount. You must show proof of the ability to do so along with the addendum.

What’s the catch?

There are several. First of all, the seller does not have to respond to your Escalation Addendum. It can be confusing and gimmicky. They may ignore your offer, or simply counter offer you without regard to your Escalation Addendum.  Why would they not outright counter with the maximum price you stated you would pay? On the other hand, “price” may not be the most important criteria to the seller.  They may like the terms of another offer better, even though the purchase price may be less. They might like the structure of another offer better. The seller may choose to simply ask for the “highest and best” offer from all parties. There could also be multiple offers with escalation addenda. What a mess!

Should you use the Florida Escalation Addendum?

It’s a matter of style. Some buyers prefer a more straightforward approach, rather than using a potentially confusing clause.  If you know what your highest offer is, why not just offer it?  Your agent should also ask the listing agent if the seller would be receptive to such an offer.

If you choose to use an Escalation Addendum, I recommend using the Florida Realtors’ addendum.  Previously, some Florida real estate agents would scribble something they made up to formulate an “escalation” clause. This was risky, because a real estate agent is not an attorney, and constructing complex clauses is not a good idea without legal advice.  The official Escalation Addendum is a form you can have confidence in, should you choose to use it.

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-259-0422
Email Wendy: itswendy@rulnickrealty.com

Wendy Rulnick, Broker, lists and sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Crestview, Sandestin, Seaside, Rosemary Beach, Okaloosa Island, Fort Walton Beach, Niceville, Freeport, Bluewater Bay, Navarre, Florida.

First, we received a homeowners insurance cancellation notice for our Niceville Florida investment property.  Their mobile inspection had shown that there was some wood rot on the side of the house.  Although common in Florida, they said if it was not fixed within 30 days, they were going to cancel the policy. Scramble. My husband and I called a few contractors, and the price to replace the siding with comparable material was about $10,000.  So we thought, “Why not replace it with vinyl siding?”

The only problem was, we couldn’t get any vinyl contractors to call us back.  One finally responded, and we accepted their proposal for $22,000. The issue was… when could they do the work? It turns out… maybe never.  New paperwork showed that the work was to be done “at a future date to be determined”, and their price was mysteriously going up by $2000.  So, the next and only contractor we could get was… my husband.  He replaced the siding himself. Problem solved? Not exactly.

The homeowners insurance company then told us the policy for the Niceville Florida house was going to DOUBLE! That’s right, from  $3200 to $6400 per year. This is a little house – 1200 square feet, built in 1987.  (I mentioned this to my father in Connecticut, who told me the insurance for his house, about the same size, was only $800 per year! That’s less than 15% the insurance cost of a similar home in Florida!)

Of course, Florida has more insurance risk due to hurricanes. Part of the reason for rising insurance costs is industry losses of $30 billion dollars from Hurricanes Irma and Michael. But pricing a policy at $533 per month would kick affordability out for a typical buyer in the range of $250,000 to $300,000 home purchase.  It would make the total monthly mortgage and insurance payment go up by 50%!

What could be done to lower our insurance policy cost? The insurance company said we would have to replace the water heater, even though it worked fine, with one that was new. Also, they recommended a Wind Mitigation study to verify that the roof structure could withstand hurricane force winds, and a “4-Point” inspection, which checks the plumbing, heating/air conditioning, electrical system, and roof, to ensure they are adequate.

In order to obtain the best homeowners insurance rates in Florida, or to be insurable at all,  the following criteria are often used (courtesy Gilmore Insurance in Fort Walton Beach, Florida):

1. Roof – A single roof should be no more than 15 years old, however with the attached roofing inspection showing the roof has a minimum of 5 years left on it, it is possible to get a company to accept the home; it will be more expensive though.  Some will only cover the roof at Actual Cash Value and other may not cover the roof at all.  Metal roofs are different, they will usually take those up to 40 years old.
2. Wiring – There can be no aluminum or cloth wiring in the home.  If there is aluminum there is a special connector called, Alumi-Con that some companies are beginning to accept.  There is also a handful of electrical boxes that they will not take as well.
3. Heating & A/C – Must be in good working order.   15 years at the oldest.
4. Plumbing – The water heater must have been manufactured not replaced within the last 15 years.  If any of the plumbing in the home is cast iron, that is becoming harder and harder to place as well.  No PEX plumbing.

ALAS, after we have accomplished the required upgrades and received passing reports on this Niceville Florida property, our insurance policy will go down from $6400 to $4000 – which is still an increase of 25% from last year’s policy. We can live with that.

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-259-0422
Email Wendy: itswendy@rulnickrealty.com

Wendy Rulnick, Broker, lists and sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Crestview, Sandestin, Seaside, Rosemary Beach, Okaloosa Island, Fort Walton Beach, Niceville, Freeport, Bluewater Bay, Navarre, Florida.

I was shopping in the greeting card aisle of the Destin Walgreens the other day.  It was mid-day, and I was in my work hurry, looking for a Father’s Day card. There was a motorized cart in the middle of the aisle, left strangely abandoned. There was also an older woman with a regular shopping cart looking for greeting cards.  She must have seen my quizzical look, as she giggled at the abandoned cart and said how odd it was that someone had left it there. I smiled and agreed.  I continued card hunting and after a while, I heard “Ohhh, can you help me?”. I turned around and saw the woman had dropped several cards and envelopes on the floor.  “I cannot pick them up, I just had back surgery”, she explained.  As I came over and grabbed the cards for her, something came over me. I looked at her and said, “You will be fine. I’ve had back surgery. Walking is good.” I could tell she was moved and said “Thank you!”  As I went on my way, and she hers, she called out to me, “God bless you!”  It was a connection.

A week or so later, I was getting a house ready to list. The owner was about 90 years old. While reviewing the property with him, I noticed a large framed photo of a young U.S. Navy officer. He said it was him. I was shocked and impressed, as it was quite dramatic. I said “Is that really you?”  After admiring the photo, I said to him, “Thank you for your service”. And I meant it.  I could tell he was moved. He said “Thank you.”  After another moment, he added, “Thank you. I really appreciate it.”  Wow, I took that with me. What he said, and the woman in the story above, were interactions I will not forget. They meant more to me than I knew at the time.

Now, I try to be a little more attentive, when I remember, to notice people, especially older people.   Just a “Hello” and a greeting to the eyes might be all it takes to lift their spirits. A connection.

It’s Wendy… It’s Sold!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-259-0422
Email Wendy: itswendy@rulnickrealty.com

Wendy Rulnick, Broker, lists and sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Crestview, Sandestin, Seaside, Rosemary Beach, Okaloosa Island, Fort Walton Beach, Niceville, Freeport, Bluewater Bay, Navarre, Florida.