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Fact #1:
Many buyers prefer to be close to schools, shops, cinemas and easy highway access. So, obviously, land that's close to amenities will command a premium.

Fact #2:
Consider access to electricity and telephone utilities.

Fact #3:
Find out about homeowner's fees. Do mandatory fees apply to your plot of land? If so, you'll have to pay them. If you don't, the homeowners' association could put a lien on your property or even foreclose on it.

Fact #4:
Can you build on it? If the land can't support a foundation, or has no access to a sewage system, it may not have development potential.

Fact #5:
Research the soil quality and topography. Damp, moist soil can add significantly to your building costs and building on hills or steep slopes can be much more expensive.

Read more "Land Buying Facts" in our next Newsletter issue—Coming Soon!

2 Acre Estate Homesite priced at just
$29,500

1 Acre Lakefront Homesites just
$39,500

3 Acre Lakefront Homesite just
$99,500 was $189,500

Click here to read The Truth About North Florida's Real Estate Climate

Hot Market: 3Q in Florida Shows Strengthening Market

12/04/2008 —

Written by M. Anthony Carr

Home buyers and investors are making their way south again to the Sunshine State. The third quarter sales statistics demonstrate sales increases across the board with a 5 percent increase in sales for the quarter compared to the same quarter a year ago.

The Florida Association of Realtors reports sales have rose to more than 33,000 across the state for the quarter. Despite lending restrictions and the difficulties of finding affordable credit, we're seeing buyers take advantage of homeownership opportunities in the current market -- buyers who want to make a long-term investment in their future. (2008 FAR President Chuck Bonfiglio; MarketWatch)

The University of Florida's Bergstrom Center for Real Estate Studies concurs with the latest increase in sales. People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest," says Dr. Wayne Archer, director of UF's Bergstrom Center for Real Estate Studies, on MarketWatch.com. We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in.

The hotspots for real estate sales include Ft. Myers (+73%); followed by Ft. Pierce and Ft. Lauderdale, up 23% and 20% respectively. The city with the strongest pricing was Panama City with a drop of only 5% to an average of $192,300 and Jacksonville dropping only 7% over the 3rd quarter 2007 to $180,400.

Source: www.realestate.yahoo.com

Navy OKs Mayport For Nuclear Carrier

11/17/2008 — Navy OKs Mayport For Nuclear Carrier
11/17/2008
JACKSONVILLE, Fla. -- After a year-long study of whether a nuclear-powered aircraft carrier could be stationed at Mayport Naval Station, the secretary of the Navy told members of Florida's congressional delegation Monday that a carrier will be moved to the base within five years.

"We are full steam ahead: Jacksonville is going to have a nuclear carrier," U.S. Sen. Bill Nelson, D-Florida, said.

The decision to house a new carrier at Mayport was one of 13 options being considered by the Navy to strategically disperse its carrier fleet and came after an environmental impact study completed last month reportedly said there is no barrier to upgrading Mayport to house a nuclear-powered carrier.

That report is to be made public on Friday.

"This is tremendous news for Florida and testament to the strategic importance of Mayport," said Sen. Mel Martinez, R-Fla. "It is vital that our nation maintain more than one substantial naval base on the East Coast."

"Getting all of the nuclear carriers out of one port in Virginia is in our national security interest," said Nelson. "For the folks in Florida the move is certain to bolster the role of Mayport and help the local economy."

The move will bring an additional 3,190 military personnel to Mayport, which has been without a carrier since the decommissioning of the USS John F. Kennedy in March 2007.

"This is going to mean a lot of jobs and a tremendous future for Mayport -- a future that now can be very secure," Martinez said Monday.

Nelson, Martinez, Rep. Ander Crenshaw and others in Florida's congressional delegation have lobbied for the Navy to assign a new carrier to Mayport, both to replace the jobs lost when the JFK was retired and to avoid homeporting all East Coast carriers at Norfolk -- cited as a national security threat.

"Today's announcement is a huge victory for Mayport, northeast Florida, and for U.S. national security," said Crenshaw, R-Jacksonville. "The decision to bring a nuclear carrier to Mayport reinforces that Jacksonville is a premier military community."

Secretary of the Navy Donald Winter will ask the Defense Department to include funds in next fiscal year's budget to begin upgrading facilities in Mayport to berth a nuclear-powered carrier, Nelson said. Those upgrades -- estimated to cost $300 to $500 million -- are estimated to take five years.

"The Navy's decision to permanently homeport a nuclear-powered aircraft carrier at Mayport Naval Station is tremendous news for the city of Jacksonville and its treasured military community," Mayor John Peyton said in a statement.

Nelson said the Navy will likely announce in four years which carrier would be relocated, so the personnel and their families can prepare for the move.

Martinez said he is hopeful that the Navy's newest carrier, the USS George H.W. Bush, will ultimately be assigned to Mayport. It is scheduled to be commissioned early next year.

"To designate the home port of that particular ship to Jacksonville I think would be a great tribute to our former president, and it would a very nice thing for Gov. Jeb Bush to have that home ported in the state where he used to be the governor," Martinez said. "I would be great to have the newest nuclear carrier to be home ported at Mayport."

The move naval assets away from Norfolk faced opposition from powerful leaders in Virginia, but Nelson said Navy could not overlook the national security implications of this decision.

"Although there have been sharp elbows between the Florida delegation and the Virginia delegation, at the end of the day, the decision was clear," Nelson said. "It was in the interest of national security to put a nuclear carrier not in Norfolk, but elsewhere, and the logical place was Mayport."

© News 4 Jax.com 2008

Navy OKs Mayport For Nuclear Carrier

11/17/2008 — Navy OKs Mayport For Nuclear Carrier
JACKSONVILLE, Fla. -- After a year-long study of whether a nuclear-powered aircraft carrier could be stationed at Mayport Naval Station, the secretary of the Navy told members of Florida's congressional delegation Monday that a carrier will be moved to the base within five years.

"We are full steam ahead: Jacksonville is going to have a nuclear carrier," U.S. Sen. Bill Nelson, D-Florida, said.

The decision to house a new carrier at Mayport was one of 13 options being considered by the Navy to strategically disperse its carrier fleet and came after an environmental impact study completed last month reportedly said there is no barrier to upgrading Mayport to house a nuclear-powered carrier.

That report is to be made public on Friday.

"This is tremendous news for Florida and testament to the strategic importance of Mayport," said Sen. Mel Martinez, R-Fla. "It is vital that our nation maintain more than one substantial naval base on the East Coast."

"Getting all of the nuclear carriers out of one port in Virginia is in our national security interest," said Nelson. "For the folks in Florida the move is certain to bolster the role of Mayport and help the local economy."

The move will bring an additional 3,190 military personnel to Mayport, which has been without a carrier since the decommissioning of the USS John F. Kennedy in March 2007.

"This is going to mean a lot of jobs and a tremendous future for Mayport -- a future that now can be very secure," Martinez said Monday.

Nelson, Martinez, Rep. Ander Crenshaw and others in Florida's congressional delegation have lobbied for the Navy to assign a new carrier to Mayport, both to replace the jobs lost when the JFK was retired and to avoid homeporting all East Coast carriers at Norfolk -- cited as a national security threat.

"Today's announcement is a huge victory for Mayport, northeast Florida, and for U.S. national security," said Crenshaw, R-Jacksonville. "The decision to bring a nuclear carrier to Mayport reinforces that Jacksonville is a premier military community."

Secretary of the Navy Donald Winter will ask the Defense Department to include funds in next fiscal year's budget to begin upgrading facilities in Mayport to berth a nuclear-powered carrier, Nelson said. Those upgrades -- estimated to cost $300 to $500 million -- are estimated to take five years.

"The Navy's decision to permanently homeport a nuclear-powered aircraft carrier at Mayport Naval Station is tremendous news for the city of Jacksonville and its treasured military community," Mayor John Peyton said in a statement.

Nelson said the Navy will likely announce in four years which carrier would be relocated, so the personnel and their families can prepare for the move.

Martinez said he is hopeful that the Navy's newest carrier, the USS George H.W. Bush, will ultimately be assigned to Mayport. It is scheduled to be commissioned early next year.

"To designate the home port of that particular ship to Jacksonville I think would be a great tribute to our former president, and it would a very nice thing for Gov. Jeb Bush to have that home ported in the state where he used to be the governor," Martinez said. "I would be great to have the newest nuclear carrier to be home ported at Mayport."

The move naval assets away from Norfolk faced opposition from powerful leaders in Virginia, but Nelson said Navy could not overlook the national security implications of this decision.

"Although there have been sharp elbows between the Florida delegation and the Virginia delegation, at the end of the day, the decision was clear," Nelson said. "It was in the interest of national security to put a nuclear carrier not in Norfolk, but elsewhere, and the logical place was Mayport."

© News 4 Jax.com 2008

Florida Land & Ranches Continues to Create Magic Out of the Land

08/26/2006 — With each passing day Jacksonville, FL is seeing development happen on its North side, but nothing is quite like what is happening on Plummer Road. Two stunning developments are now open in Duval County Florida on the North West side of Jacksonville. Jacksonville Ranch Club has begun offering estate equestrian and lake front home sites to the public since June, 2005. A year ago when the Jacksonville Ranch Club had its initial 'Muddy Boots' pre- construction sale all 85 home sites released sold out in a record 8 hours. With the original Jacksonville Ranch Club at a remarkable 73% sold, Florida Land & Ranches, Inc. has released a new community Jacksonville Ranch Club Two.

This community is directly across the street and is offering 1 - 2+ acre home sites at incredible pre-construction pricing. These exquisite home sites will surely set the standard for the surrounding area and what is to come. Jacksonville Ranch Club Two is a private gated community with underground electricity, Cable, Telephone, & high speed internet already installed. There recreation areas and stocked lakes to enjoy. Buy today, use your own builder, and build on your own schedule. With home sites priced at unheard of values, Jacksonville Ranch Club Two is offering something that is hard to find in this region of the state - A GREAT DEAL! Bringing together the natural preserves of the community and room to breathe you have found a place to truly call home.

The Terry Clayton, Project Manager for Florida Land & Ranches, Inc., has gone above and beyond what was expected for this neighborhood. "It is a labor of love to be a part of transforming this beautiful land, into an exclusive, private community," said Clayton. "It is truly a once in a lifetime opportunity."

Florida Land & Ranches, Inc., a real estate development company, whose investment partnerships specialize in upscale residential communities, has been operating in the Florida & Georgia region for over thirty years.

www.jrcland.com

The upside of Florida real estate: 15 market positives

05/06/2009 — Let's take a look at some of the opportunities and positive indicators for the future of Florida's real estate market.

1. Great prices. Statewide, home prices have fallen 20 percent in the past year. FAR statistics show the existing-home median sales price was $185,400 in the third quarter of 2008, compared with $233,200 in third quarter 2007. By the way, those numbers are still significantly higher than in the early years of the decade: in 2003, the third-quarter sales price was $163,700, which reflects an increase of about 13.3 percent over the five-year period. (The median is a typical market price where half the homes sold for more, half for less.)

2. The time is right. Home sales volumes are rising again - a clear signal that today's "buyers market" may be changing soon. In third quarter 2008, statewide sales of existing single-family homes were up 5 percent compared to the same period last year, according to FAR statistics.

3. High inventory levels. Conditions are ideal for buyers to find their dream home. Inventory is plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink - another strong argument for buying soon.

4. Low mortgage rates. Mortgage rates are still at the lowest levels since the 1960s. That's important because lower rates multiply a buyer's financial power. Even one-half of one percentage point difference means a buyer could save more than $1,000 per year on a median-priced home. Buyers get more home for the money, which is a perfect scenario for families looking to upsize.

5. Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase. The U.S. Housing and Economic Recovery Act of 2008 includes a $7,500 tax credit for first-time buyers on a home purchased between April 9, 2008 and July 1, 2009. Last October, Florida approved $571 million in tax-exempt bonds for loans to first-time buyers with low and moderate incomes. Florida programs can also help moderate income buyers cover downpayment and closing costs. Talk to a local mortgage lender about these and other incentive programs.

6. A long-term growth state. Long-term economic and demographic trends continue to favor Florida. By 2010 it has been forecast that Florida will be the third most populated state in the country. Florida's population is expected to increase about 75 percent by 2030. Florida has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often it has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic growth such as new jobs and growing incomes. All of which is good for real estate.

7. A migration magnet. The University of Central Florida's Institute for Economic Competitiveness projects that 81,000 people will move to Florida in 2009 and 120,000 in 2010. Based on a 2.2-person household size, that means Florida will see increased demand for roughly 37,000 homes and condominiums in 2009 and 55,000 the following year. That's a lot of new buyers coming into the market.

8. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State's mild climate and outdoor amenities continue to make it an attractive retirement destination.

9. A diverse economy. While the national economic downturn has definitely affected the banking and finance sector, other pillars of Florida's economy remain strong. Healthcare, tourism, education and government are stable components of the state's business environment, and the life sciences sector is fast becoming an important driving force in South and Central Florida. According to Enterprise Florida Inc., the Sunshine State is ranked as one of the best states in the nation to be an entrepreneur.

10. Positive investment outlook. Every quarter, the University of Florida's Bergstrom Center for Real Estate Studies conducts a survey of industry executives, market research economists, real estate scholars and other experts. In the third quarter 2008 survey, the investment outlook for various types of Florida properties remains steady. "People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest," said Dr. Wayne Archer, director. "We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in."

11. Homeownership has value. Realtors believe - and research supports that belief - that homeownership provides a variety of benefits, tangible and intangible, to the community as well as the individual homeowner. Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group. Home value is the most important single aspect for homeowners.

12. Greater well-being. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

13. Good for kids. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They're also shown to have a higher lifetime annual income.

14. Good for communities. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact with their neighbors to gain wider influence over their neighborhoods and communities. Homeowners join up to 41 percent more civic and/or nonprofessional organizations than renters, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.

15. An unsurpassed lifestyle. Finally, let's not forget the things that brought people to Florida in the first place, and will continue to attract them - beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It's no wonder that Florida's combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll's "most desirable places to live" survey.

Posted by Dave Lowe Two4One.com

Grand Opening of Bentwood @ Jacksonville Ranch Club, Florida!

04/30/2007 — Jacksonville, FL-Pre-construction prices for the grand opening of Bentwood, the newest phase of stunning lakefront community Jacksonville Ranch Club, make an unusually beautiful community surprisingly attainable. Living among whitetail deer and shimmering lakes is just part of the charm of this private, gated Florida community. JRC has 200 acres of natural preserves, nine stocked lakes for fishing and boating, twelve miles of bridle trails, and privacy lots to accommodate horses. Residents can choose from aesthetic lakefront properties or lush wooded homesites. There is a rich quality of life at home with water sports, horseback riding, hiking and picnics, all within lush surroundings. Modern conveniences boast underground utilities, fiber optic cable (high speed Internet), guaranteed 'buildable' lots, and even a creative tot-lot for the little ones.

JRC presents a home where one can feel separate from the crazy lifestyle many of us experience daily. And yet, with the culturally rich city of Jacksonville just twenty-five minutes away by car, and Jacksonville International Airport even closer, adventure waits outside the gates of this peaceful community. Home to the Jaguars, Jacksonville shines with trendy shopping, museums, cosmopolitan cuisine, theater, exhibitions and festivals. The Alltel Stadium, Veterans Memorial Arena, parks, beaches and even the Jacksonville Zoo all lend a dynamic flare to the mix. The Riverwalk, located on both the south and north banks of the elegant St. Johns River, provides a unique journey for walkers, runners or poets. St. Johns River is a colorful landscape with kayaks, shrimp boats, water taxis, luxury yachts, and specially scheduled events.

Education is a serious business in Jacksonville with abounding opportunities from the pre-elementary levels through post-graduate study. Jacksonville University and the University of North Florida are just two of Jacksonville's glowing educational hubs. With River City Market Place, Jacksonville Equestrian Center and even a national forest, visitors will be surrounded by stimulating choices and adventure. Land selections at Bentwood range from one-acre lots to the estate-sized eight-acre lots. With the glorious Florida climate, the gentle lake breezes, and the pre-construction prices, this is an opportunity not to be missed!

www.jrcland.com

Lots of Opportunity. With the Investors Gone, the timing for buying land lots has never been better.

03/31/2008 — Special to the Florida Times Union

While it isn't as much as a buyers market compared to new and resale housing, for homeowners considering buying up a piece of property and building their own home this is the best time to be in the market for land.

According to realtors, builders and real estate appraisers in the First Coast, prices for residential lots or large tracts of land will find prices have cooled considerably since the housing market peaked in mid-2005.

"There really hasn't been a better time to buy lots in the last five years," said Jeff Henderson SRA, president of Henderson Appraisal Group in Jacksonville. "Prices for lots have stabilized for the most part. I would say about 75 percent are showing little appreciation, less than .5 percent, and on the construction side, many builders are hungry. That's where building a home on a lot can save someone money now."

Henderson says that, just as with single-family homes, new investors flooded the market from 2002 to 2005 - driving up prices for land and properties.

"There were more buyers than there were properties," Henderson said. "Now, we`re all adjusting to the normal activity - people buying properties and homes for living, not to hold and sell as investments."

Along with Henderson, who has done appraisal work for nearly 20 years in the First Coast, we spoke with Prudential Network Realty Agent/Broker Michelle Cummings, who specializes in single-family homes and lots, Randy Long of J.A. Long, Inc, a custom builder that purchases lots for home construction, and Prudential's Michelle Mousin, who specializes in larger tracts of property.

Q: Are there differences in marketing a lot compared to a home? Cummings: With a home, a buyer can see, feel and touch it and can better visualize what it would be like to live there. It's similar to selling pre-construction, but there you have a rendering of what the condo or new home will look like. With a lot, a buyer has to use their imagination to really see what their home would look like situated on the lot. In terms of advertising, it's about the same. You might go to higher-end publications because of the price points on the land, but you would do that with a higher priced home as well. For example, I have lots in Ashton Oaks in Mandarin now, and I have to consider the size of the other homes already in the neighborhood, in addition to the property, in targeting to the right market.

Q: Are there any differences in the demographics of those who purchase a lot? Cummings: Not really. I've had buyers who are young professionals, more established buyers who have had homes built on lots before, and older retirees who are downsizing. The only thing they typically have in common is that they know what they like in a home and want it personalized to fit their needs, whether it`s a certain architectural style, the size, the views from inside, and other specific wants like those.

Q: When buying a lot, what should the buyer keep in mind? Cummings: Certainly, their personal preferences on lot size and location, access to utilities, surrounding zoning and, in some places, the composition of the soil is important.

Q: For residential lots, how is the pricing right now? Cummings: Lots are priced pretty well right now. If a buyer is looking at lot for building their own home, they will find sellers who are willing to negotiate.

Q: From a builder perspective, J.A. Long purchases lots for constructing custom homes. What do you look for in a lot- Long: We really look for properties that have a "wow factor" to them - something that creates emotion for the eventual buyer. We also look for amenity centers, golf & country clubs, nice trees and, of course, waterfront opportunities - whether its water view or access.

Q: What about the land itself? Long: When buying a lot, we look for a combination of things. First, the look and visual landscape of the site are important. We also look for lots with a nice tree canopy. You also want to check out the soil conditions. You don't want too much clay in the soil, which makes the house more prone to settling later. You want nice, compact buildable soil conditions. Also, the height of the site is important. While you can add fill to level out a lot, if you have to add to much soil it will eventually kill the trees, so it's important to check the county`s requirement for the finished floor elevation when you choose a lot.

Q: Where are you buying lots now? Long: We`re always looking for good lots where we can build. Since we`re based in Orange Park, we have several lots in the Fleming Island and Oakleaf areas, but we've begun focusing on lots and possible deals in other parts of town like Mandarin, St. Johns County and areas around Butler Boulevard. We especially look for good waterfront property. We typically own between 15 to 25 lots at any given time.

Q: Are there any bargains out there? Long: We haven`t been in any serious negotiations lately, but generally I think lot owners are more willing to listen to an offer now. They're more realistic about the market conditions and not so focused on getting rich with a piece of property, so someone buying a lot today will be in a better negotiating position than they were a couple of years ago.

Q: How about large tracts of land? Mousin: Large tracts of land, and I'm talking about anywhere from 50 to 100 acres or larger for residential development, and especially those with entitlements or the permitting and zoning completed, would be of interest now to some investment groups who are willing and able to buy now at the right price and hold. National builders, or even smaller builders with land inventory, need some time to absorb that inventory. Large land owners who don`t have to sell are holding on until the market improves. That`s not to say they won't negotiate if they are financially motivated and need to sell the property.

Q: What types of uses do you generally find with large tracts? Mousin: Many are zoned with an agricultural classification, for cattle, crops, and timber uses, for example. The uses vary from single- and multi-family development, for mobile home lots, or for retail. For individual residential buyers, what has become popular are "gentleman's farms" of five to 20 acres. These buyers are generally those who have never owned land before, but who want to enjoy the space with a house, barn and maybe a few horses.

Q: How did you get into selling large tracts? When I started in Ocala in the mid 90's I worked for a land development company that would purchase large tracts to develop as residential or commercial and we would market the finished product through the brokerage. We would also handle the development process for clients and advise them of the highest and best use for their land to make the most return. Since I had an equestrian background, I also specialized in horse farms, specifically Thoroughbred training centers.

Source: www.jalong.com

Build your dream house now

03/12/2008 — Money Magazine
By Carla Fried, Money Magazine contributing writer

With home values tumbling and the mortgage market still in crisis, you'd think that Billie and Rodney Wylde would shelve their plans to build their North Carolina dream home - at least until the market stabilizes.

Not a chance. The thirtysomethings are set to pour the foundation on a 2,100-square-foot farmhouse with a wraparound porch in East Bend, a few miles from where they currently live. Estimated construction cost: $140,000.

The couple hope to be able to move in as soon as November. "All the media talk about is this crisis," says Billie, an elementary school guidance counselor. "But it's actually a very good time to build."

She's right. Behind the dark clouds hanging over the housing market is a very compelling silver lining: The cost of building the home of your dreams is coming down. "If one or two years ago it cost you $300,000 to build a custom home, today it should cost tens of thousands of dollars less," says Jim Haughey, chief economist at Reed Construction Data.

Why? With new-home demand drying up, the price of some construction materials has started to sink like a poorly laid foundation. Framing lumber is now 18% cheaper than it was 18 months ago, while drywall is selling for 40% less.

And because overextended developers picked up too much land during the bubble - and are motivated to sell - some lots are becoming dirt cheap. Land prices (often the single biggest expense for custom homes) in certain areas have fallen more than 20% in the past year or two.

"In terms of finding land you want at a good price, this is the best market that I have seen in my 30 years of home building," says Carl Heldmann, builder and author of Be Your Own House Contractor.

Contractors, meanwhile, are scrambling for your business thanks to a 34% decline in new-home starts. "Because of the slowdown, we are getting bids from subcontractors that are right in line with our price range," says Billie, 34. "And it's not like you have to get on a subcontractor's waiting list for six months."

Of course, building a home isn't something you should enter into lightly. It's a huge commitment - of both time and money. And just because prices are relatively cheap now doesn't mean you should rush out to break ground, especially since a poorly thought-out dream can quickly turn into a nightmare.

On the other hand, if you've always wanted a custom-designed home and are willing to do a lot of heavy lifting, today's market makes it easier and cheaper to realize your plans. Here's your blueprint:

Put a price tag on your dream

When you're buying an existing home, the process is simple: You figure out how much you can afford to spend. Then you go out into the marketplace to see how much home that budget will buy. For your custom house, you might come at it differently. Maybe you've always wanted a sunroom or a private terrace off the master suite. You may not have a clue how expensive these features are or how much it costs to build a home to begin with.

So you'll need to get a rough estimate - the first step in figuring out if you can afford the kind of house you're fantasizing about. Start by talking with general contractors or home-building consultants in your area.

If you decide to go for a custom home, you'll need to interview firms anyway to assist you. Ask them to show you projects they've worked on in the neighborhood and to give you different price options.

Also use available online tools to help. At building-cost.net, you'll find a detailed breakdown of prices for custom homes based on dozens of factors including size, shape, features, materials and location.

Understand the financing

Before you spend a dime on an architect or land, take the next step: Determine how much you'll be able to borrow by getting pre-approved for a loan. It's a noncommittal figure that can guide your planning.

"Too many people do it backward," says Jim Pair, vice president of the National Association of Mortgage Brokers. "Then they find they can't afford to build what they want where they want."

You'll also need to know how custom-home financing works. It's a two-part process: First you take out a construction loan that covers the costs of the land and building. These loans work like lines of credit: Money is doled out to you by your lender in periodic "draws" as you move through various phases of construction. These are variable-rate loans that typically fall within around a point of the prime rate, now 6% (down from 8.25% a year ago). Then, when you're ready to move into your finished home, you convert that loan into a permanent mortgage.

What if mortgage rates spike by the time you're done building? You can protect yourself by going with a so-called construction-to-perm loan instead. These plans allow you to get approved for both loans at once. This way you can lock in an attractive rate on your permanent mortgage.

If rates fall, you could still protect yourself. Some lenders offer a one-time "float down" provision on construction-to-perm loans. But you might have to pay a point or more in closing costs for this peace of mind.

Scout out the land

Almost every community, even in densely populated areas, has some vacant land for sale. But you're likely to get good deals where there's excess supply. This might take you into less developed areas.

While you can shop for these lots through any realtor's office - available parcels will show up on multiple-listing services - ask to work with a broker who has experience with land. Such a broker will help you evaluate a lot and decide how aggressively to bid on it.

You'll have two basic kinds of vacant land to choose from: raw land and finished lots zoned for residential construction that already have utility hookups.

Raw land might be cheaper, but it poses complications. For instance, the soil needs to be tested to confirm that it's hard enough to build on and that there's not a big chunk of rock where the foundation needs to go. You'll also need to make sure the parcel has been zoned for residential construction. These are things you should have an agent do for you - just make sure they agree to it in writing.

Pull together the design

For as little as $1,000, you can buy an off-the-shelf plan available in books or on such sites as DreamHomeSource.com and eplans.com. While using a cookie-cutter mold to stamp out your custom home may not sound appealing, these Web sites offer hundreds or in some cases thousands of different design choices.

Want a two-story, four-bedroom, three-bath home between 2,000 and 3,000 square feet with a two-car garage? A recent search on eplans.com elicited 1,492 different plans. You can add to or tweak these off-the-shelf plans - on DreamHomeSource.com, for example, the cost of adding a fireplace to your living room design starts at $90 and redoing a basic kitchen design plan starts at $150.

For some, this still isn't enough. Take Jan and Myleen Sjodin, Texans who are building a 2,419-square-foot home 25 miles west of Austin. Jan, 35, and Myleen, 37, started with off-the-shelf plans. But after realizing their tastes were too specific - the couple want to build an environmentally-friendly house - they hired someone to design their "green" home.

It isn't cheap: The Sjodins have so far paid $20,000 in fees (architectural costs vary and can eat up around 10% or more of expenses). But "our designer has been great at helping us figure out how to build cheaper without compromising quality," Myleen says.

For example, he suggested shifting some window placements, which will lower air-conditioning bills during hot Texas summers. He also recommended replacing a full-blown garage with a covered carport.

Whatever you choose, remember: You're not building just for your tastes; you'll probably sell at some point in the future. So keep resale in mind. For instance, while adding a home theater might increase the value of your house - who doesn't like a good movie? - an indoor basketball court might not have much appeal.

Assemble your team

The most important member of your construction team is your general contractor, who oversees the project and deals with the inevitable speed bumps that can fray nerves and lead to cost overruns (don't be surprised if your budget goes over by 10% - that's typical). Ask local lenders for people they've worked with or check with the National Association of Home Builders (nahb.org) for leads.

Even if you choose to be your own GC, seek professional guidance. Really. A consulting contractor can serve a useful function: helping you find subcontractors. Between framing carpenters, plumbing contractors, electricians, roofers, drywall installers and painters, you'll need all the assistance you can get.

Should you be your own general contractor?

You can reduce your construction costs by up to 25% if you act as your own general contractor and take responsibility for keeping the project on schedule - and on budget. But not everyone is cut out to be a GC. Consider these factors before you put on the hard hat:

It's a time-suck. You'll need to budget as much as 15 to 20 hours a week in the planning stage to interview work crews, price raw materials and make sure all the required permits are in place. Once construction starts, plan to work at least an hour or two a day - paying bills, scheduling work and occasionally visiting the site - a tough feat to pull off for anyone who already has a full-time job.

It takes some know-how. Maybe you know the difference between a flapper valve and a flush ball. Well, just because you can fix a toilet doesn't mean you're necessarily qualified to be an effective GC. True, project management is the biggest part of the job. But having some hands-on experience with home construction or renovation can help you vet and negotiate with qualified subcontractors.

It isn't a solo pursuit. Lenders often require newbie owner-builders to hire a general contracting consultant to watch your back. Even if you're not forced to hire one, it's a good idea. Consultants like those that can be hired through BuildMax or UBuildIt can teach you how to apply for permits, order the right materials and even hire work crews.

Source:
www.money.cnn.com

Northeast Florida home sales begin to rise

02/13/2009 — Jacksonville Business Journal - by Christian Conte Staff Writer

NORTHEAST FLORIDA - Residential real estate agents could only watch as home sales and prices plummeted for more than two years, but after experiencing a surge in what is typically one of the slowest months of the year, some sense that the market might have hit bottom.

Analysts warn about the risks of guessing the market's fluctuations, but based on January sales, Jen Edwards of RE/MAX Unlimited said, "I think 2009 is going to be just fine."

Real estate professionals cite several factors contributing to the uptick in sales, including lower mortgage rates, falling home prices and even a new president.

Edwards, who owns the Ponte Vedra Beach office with her husband, Bob, is basing her optimism on the 6.5 percent increase in closings she saw last month compared with January 2008 and the doubling of showing appointments during January compared with the same time last year.

Other agencies are noticing an uptick in business.

Gene Jones, of ERA Dan Jones & Associates Inc., reported 12 sales for a total of $1.6 million and 13 listings in January, compared with eight sales for nearly $762,000 and 12 listings in January 2008.

Prudential Network Realty reported a similar trend with January volume up 28 percent.

Prudential also experienced, as did other agencies, a rising number of high-end homes selling. It sold 10 homes valued at $750,000 or more in both December and January, compared with an average of four such homes sold during the last six months of 2008.

"When you see somebody make a million-dollar investment in the market, it lets you know there is definitely some optimism," said Christy Budnick, executive vice president at Prudential.

Millie Kanyar, the president of the Northeast Florida Realtors Association and an agent at Watson Realty Corp., where there was also an increase, said many recent buyers had been some of the fence-sitters who waited to buy a home. For some, the change in administration was enough to get them off the fence and to the closing table.

"Those people who were sitting in the background finally got out there," Kanyar said. "There was pent-up energy."

Real estate agents said the drop in the Jacksonville median home price to $168,300 and interest rates at about 5.35 percent for conventional loans helped the recent increase in sales.

Other buyers have been lured into the market by the rising number of properties being sold by lenders. They are known as real estate owned properties, which are foreclosed properties that failed to sell to a third party.

Tracy Barth, an agent at Excel Realty Group LLC, said most of her sales are now real estate owned, foreclosures or short sales in the $150,000 to $300,000 range. A short sale is where the lender is willing to accept less money than what it is still owed for the property.

"It doesn't have the stigma it used to," Barth said of such sales.

Statewide, January statistics won't be available until Feb. 25, but in December the Jacksonville area saw a 20 percent increase in existing family home sales to 930 from 778 in December 2007, while the median sale price continued to slide 7 percent to $168,300 from $180,300. Jacksonville's median sale price for an existing single-family home has not been that low since January 2005, when it was about $169,000.

Statewide single-family home sales were up 27 percent to more than 11,000 and the median sale price was down 27 percent to about $155,500.

Condominium sales in the Jacksonville area declined in December 15.5 percent from 90 to 76 and the median price dropped 19 percent to $123,800. Statewide condo sales rose 12 percent to more than 3,000 and the median price dropped 32 percent to $130,600.

Real estate agents said although the trend looks promising, only time will tell.

"If there's one thing we've learned from this economy and this market," Budnick said, "it's that nobody has a crystal ball."

Source: Jacksonville Business Journal

Best Cities For Bargain House-Hunters

02/07/2008 — Forbes.com
Matt Woolsey, 02.07.08, 6:30 PM ET

Property sharks looking to take advantage of local housing slumps are doing their best to time the market, searching for the precise moment when prices bottom out before taking a bite.

They'd be smart to look for markets where job growth is strong, foreclosures are relatively low and inventory is high. With these factors in place, buyers can still dictate terms of sale and negotiate prices, but aren't as exposed to the economic and lending risk problems that have sunk many markets around the country.

Good places to look? Salt Lake City and Raleigh, N.C., where there are plenty of sellers slashing prices, but not because of a lending meltdown. Complete List: 10 Best Cities For Bargain House-Hunters

Timing a market is tricky business, and prices alone may not be the best way to determine a bargain opportunity.

What you need is a buyers' market, where there is healthy job growth and more houses available than people to buy them. This is not due to foreclosures and economic downturn, but to overbuilding that should balance out in time. These markets "are where you have high inventories but pliable borrowers, with lenders willing to deal," says Anthony Sanders, a professor of finance at Arizona State University.

This is what's happening in Houston. Compared to housing prices in other cities, Houston real estate has always been a bargain, which is part of why the population has expanded so much since 2000. Jobs are being added to the books at the sixth fastest rate of cities measured, and while the city has had more than a few foreclosures, especially in Harris County, it hasn't taken a huge overall hit. Based on inventory levels and construction projects in the works, buyers still have good standing to negotiate price.

Behind The Numbers Our list includes 2006-2007 data on job growth, from the Bureau of Labor statistics; foreclosure data from RealtyTrac, an online database of foreclosures gleaned from multiple listing services, bank-owned properties, bankruptcy records, loan histories, tax liens and lender information; and ZipRealty (nasdaq: ZIPR - news - people ), an online firm that tracks vacancy rates through multiple listing services.

In addition to Houston, Salt Lake City and Raleigh, what we found were soft markets such as Orlando, Fla., Charlotte, N.C., and Jacksonville, Fla., where the damage from risky lending isn't as drastic as other parts of the country, and where employment growth suggests inventory can burn off at a healthy rate.

Who is to blame for the subprime crisis? Weigh in. Add your thoughts in the Reader Comments section below.

Job growth matters, as it's a sign that people are moving to a city and that they're building the roots and wealth to buy a home. On this measure, we used data from the Bureau of Labor Statistics from 2006 to 2007 to calculate which markets are adding people to payrolls. The timing of the data also weeds out any places that saw their job growth explode in past years due heavily to housing or jobs that are now gone, and we excluded any city losing jobs from our list. Excess housing inventory and job loss don't pair well.

But fast job growth coupled with a high foreclosure rate points to a more volatile market, one where economic activity might be slowing, or where prices were untenable from the very beginning.

Kermit Baker, an economist at the Harvard University Joint Center for Housing Studies, says that the equity problems that lead to foreclosures are more often than not "the result of economic conditions in the market as a whole," or "an overheated market."

Neither condition makes for a bargain because there's too much risk involved.

Sellers in subprime troubled markets, for example, might be anxious to sell to save whatever equity they have. Of course, this is more or less like being handed a grenade. If you bought a house in Stockton, right now, where there's one foreclosure for every 31 households, according to RealtyTrac, it's likely that prices will continue to plummet.

You won't be getting a bargain, you'll be buying cheap.

Instead, a bargain buy in an overbuilt market exposes you to less risk and comes with the satisfaction of not profiting at someone else's foreclosure misery.

Source:
www.forbes.com

Developer to begin grocer-anchored shopping center in spring

01/23/2009 — Dunn Village to fill Northside retail gap

Jacksonville Business Journal - by Christian Conte Staff Writer

JACKSONVILLE - A joint venture partnership composed of a retail developer and an insurance services company will develop a Food Lion-anchored shopping center on the Northside.

Retail developer JDH Capital LLC and insurance services company USAA will develop an 83,500-square-foot shopping center at Dunn Avenue and New Kings Road called Dunn Village.

A representative of JDH Capital said the cost of the project was not determined yet, but it is expected to start construction this spring and should be complete by the second quarter of 2010.

"Our vision for Dunn Village is to create a convenient retail destination for the residents of this Jacksonville community," said Bill Allen, principal and chief operating officer of JDH Capital.

Allen said the company selected the site because of the limited retail and service options in the area. Brokerage firm Cantrell & Morgan Inc. represented JDH Capital in the sale of the 28.5-acre site.

Charlotte, N.C.-based JDH Capital develops in Florida, Georgia, Maryland, North Carolina, Pennsylvania, South Carolina and Virginia. The Dunn Village project is the company's third in Florida. JDH Capital also owns a shopping center in Lake City and The Shoppes at Palencia Commons in St. Johns County.

A 34,928-square-foot Food Lion will anchor the Dunn Village project, which may also include services such as a bank, a dry cleaner, a fitness center and restaurants. No other specific tenant information is available.

Food Lion LLC, a subsidiary of Brussels, Belgium-based Delhaize Group (NYSE: DEG), operated 1,158 stores in 11 states in the Southeast and Mid-Atlantic regions at the end of 2008. Other Delhaize Group grocer banners include Bloom, Bottom Dollar Food, Harvey's Supermarket, Hannaford and Sweetbay Supermarket.

The Dunn Village Food Lion is expected to be similar to an upscale prototype Food Lion that anchors the Palencia development on U.S. Highway 1, just north of St. Augustine. That Food Lion opened in the fourth quarter of 2008.

The Shoppes at Palencia Commons Food Lion includes international and specialty items, organic products and a full-service deli and bakery department.

A representative of Food Lion said the specifics of the Dunn Village store have not yet been determined but will likely include different signage, graphics and decor from traditional Food Lions.

Palencia resident and commercial real estate broker Bob Warren said he's been very pleased with his area Food Lion because of its produce and meat selection and its gourmet grocer ambience.

Warren said that even with a grocer anchor already confirmed, the rest of the Dunn Village project might take a while to fill up because most retailers have slowed or stopped expanding and financing is more difficult to come by because of the economic recession.

Still, he said, "I think it's a good time if a retailer is capable, because they'll be able to negotiate a good price on leasing."

JDH Capital LLC
Principals: Gary Davies, David Hill and Bill Allen
Headquarters: Charlotte, N.C.
Specialty: Retail development
Years in business: 15
Web site: www.jdhcapital.com

Source: Jacksonville Business Journal

Finding an Edge

01/15/2008 — Published by Homebuyer Magazine

January 2008 -- Experts say keeping on top of today's competitive housing market is a challenge that requires an innovative touch.

Without a doubt, it's a confusing time in the real estate market.

On one hand, existing single-family home sales in Northeast Florida declined by 38 percent and there were 30 percent fewer new homes built last year than in 2005. On the other hand, slowing sales and rising inventory means more bargains for buyers as builders try to work down excesses.

How long will the buyer's market last? Florida just recorded 60 consecutive months of job growth, which means plenty of people are still relocating and will need places to live. Likewise, Northeast Florida's underlying economy remains strong and its lifestyle is no less appealing today than it was two years ago, during the housing boom. So what will happen over the next 12 months? We've assembled a high powered panel of builders, developers and real estate professionals who'll offer some insight.

From the building industry we talked to Randy Long of J.A. Long, Richard Dalton of Morrison Homes and Glenn Layton of Woodside Homes. Weighing in on development issues were Paul Fletcher of Fletcher Management Company, Jay McGarvey of McGarvey Residential Communities and Joel Embry of Amelia Park Development. And our Realtor experts were Rob Holland of Marsh Landing Realty, Mary Ann Bongiorno of the St. Johns office of Watson Realty and Bonnie Siecker of Century 21 Dames Point Realty. Seicker is also president of the Northeast Florida Association of Realtors (NEFAR).

All agree that 2008 won't see a return to the frenzied building and buying levels of 2005. But they also agree that activity will begin to pick back up and that buyers now have a rare, and likely temporary, opportunity. Why? First, in Northeast Florida there are nearly double the number of homes for sale today than there were a year ago at this time. Second, excess inventory has eased upward pressure on prices. And third, mortgage interest rates are still hovering under seven percent.

Developers and builders are also getting more creative about setting themselves apart from the competition, says J.A. Long Chief Operating Officer Randy Long. "They're using green design, equipping entire neighborhoods with natural gas, and making hot items like summer kitchens or mother-in-law suites standard amenities," Long notes.

The best news is that buying a home remains an excellent long-term investment by just about every measure. "Real estate is a home, a shelter from the elements, a hedge against inflation and a place to raise your family," says broker Rob Holland of Marsh Landing Realty. "All with tax benefits."

Here's what else our panelists had to say about what to expect in the housing market this year:

Question: What is the outlook for the building industry for 2008?

Randy Long: The market still has an over supply of investor resales and new homes, but I think that recovery will continue slowly. There are still a lot of buyers out there because of relocations, people desiring bigger or nicer homes and enlarging families including a segment of the population taking in elderly parents.

What are the major factors influencing your outlook?

Randy Long: Unfortunately, there's still a lot of negativity in the media regarding housing issues. We've also heard from customers who are eager to begin designing a custom home but are facing uncertainty in selling their current one. One additional strain on the building industry is the effect of impact fees on new developments.

Are you employing any strategies to help with market conditions?

Randy Long: We've certainly stepped up advertising directly to customers and Realtors and have lowered prices. But, we've also focused on using innovative and exciting strategies in the homes we're building, adding popular features like summer kitchens, upgrading to wood and tile flooring and using green building techniques.

Are there any new building trends that buyers should be aware of in the upcoming year?

Randy Long: We expect the popularity of mother-in-law suites for aging parents, outdoor living areas with summer kitchens and multi-use entertainment rooms to continue. Homes will also continue to be more efficient and green as more builders become affiliated with organizations such as the Florida Green Building Coalition.

Source: www.jalong.com

If Wall Steet is causing worry, consider this long-term investment strategy

01/01/2009 — BY BONNIE SIECKER - The Florida Times-Union

By providing equity accumulation and tax benefits over time, home ownership is how many families begin to build their wealth. According to statistics from the Federal Reserve Board, a homeowner's net worth is 46 times that of a renter.

It is also important to point out the value of purchasing a home in Northeast Florida. Earlier this year, the Northeast Florida Association of Realtors introduced its "Put Your Money Where Your Life Is" campaign.

One of our strongest findings - in addition to the fact that economists believe that the tide will turn in 2009 - is that Jacksonville-area real estate is a safe bet because of the area's strong economic outlook, which is expected to positively impact the housing market rebound.

"The area is faring better than most other parts of Florida because housing did not get as insanely overbuilt or overbought as it did elsewhere in the state," said Mark Vitner, Wachovia Corp.'s senior economist.

"Jacksonville remains the most affordable large metropolitan area in the state and is cost-competitive with other major metro areas in the southeast.

"As a result, more companies looking to do business in Florida are leaning toward Jacksonville."

Jacksonville is popular for many other reason as well...

View the rest of this article here...