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Editor's Note: Sarasota real estate expert Joel Schemmel gives his insight about the luxury real estate market and things to do in the area during Spring.
How do new and older constructions compare in price in Sarasota?
The age of construction does materially impact price in the Sarasota Market. This is especially true when you are looking at waterfront properties. First and foremost, new building codes require homes to be elevated above base flood elevation. Therefore, most new homes are elevated above ground vs. older homes, which may be built on grade. Second, newer homes are generally built with hurricane protection for doors and windows, while some older homes do not have these features. Finally, the overall cost of construction has gone up significantly in recent years. Because of these factors, the cost of newer construction is materially higher than homes that were built more than 10-15 years ago. The upside is that because of the new building codes and materials used, newer homes cost much less to insure.
How is the Spring real estate season in Sarasota like?
The Spring real estate season in Sarasota is generally one of the most active. Due to residents that spend only part of the year here and vacationers, in the first quarter, we see our population surge. Historically, this has led to a very active market in the Spring. Of course, with the current COVID-19 situation, the Spring numbers will be off significantly. This is following a very good first quarter for 2020. Certainly, our hope is that the market reengages as efficiently as it can in a safe way.
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What questions do you get about life in western Florida around this time of the year?
Many of the questions about life in Florida have changed in 2020 due to the COVID-19 situation. Our public beaches are currently closed, however boating and, in some situations, golf courses remain open—of course, if you have a home or condo on the beach, you can enjoy it. The questions about life have evolved but the key components remain—we have amazing weather and can get outside to walk, run, exercise, meditate, play with the kids, sit by the pool or enjoy an amazing sunset. It is, perhaps, one of the best places in the world to be required to stay at home.
How did the first quarter of 2020 real estate perform in Sarasota?
The Sarasota market had a very strong first quarter. Below is a summary of Unit Sales for the 1st quarter of 2020 vs. 2019.
Condo Sales
Priced from $4 million and up Up 50%
Priced from $2 million to $4 million Even from year to year
Priced from $1 million to $2 million Up 73%
Single Family Home Sales
Priced from $4 million and up Down by 3 Units
Priced from $2 million to $4 million Up 41%
Priced from $1 million to $2 million Up 6%
How do you overcome objections that can come at the end of a sale?
Our objective is to not have an objection at the end of a sale. We have been successful in closing all our pending sales despite the current environment. We spend a great deal of time upfront once we have a contract to get through, the inspection period, and/or any other contingencies that are part of the contract. Once we get through those contingencies, we pride ourselves in proactively communicating about the process until a successful closing. Occasionally at closing, we will have a discrepancy for a repair or inventory item that is manageable through a small credit, or something along those lines.
