April 2023 Newsletter, Digital Edition

According to the FBI, property fraud is one of the fastest growing white-collar crimes in the US. Fraudsters “highjack” ownership in an attempt to sell another’s property in the hope of diverting closing funds to themselves. They produce convincing phony documents and IDs to list the property with the intent to dupe unsuspecting parties and make it to closing undetected. Since it is so prevalent, Realtors and attorneys are vigilant in attempts to confirm authenticity, but sometimes actual property owners are oblivious. Here is what you can do…go to www.CollierClerk.com and click on Risk Alert Notifications and register your ownership. If any change to documents is detected they will notify you. If you own property in other counties, most clerk’s offices offer the same service. Additionally, on a regular basis, you should google your property address to make sure it does not appear as an active listing on a real estate website.

Tigertail Dredging Project

If you have been around Tigertail Beach recently, you might be wondering what all those bulldozers are doing gliding across the sand. Officially titled the Tigertail Lagoon/Sand Dollar Island Ecosystem Restoration Project, the aim is to improve the coastal resiliency, water quality, and ecosystem of the region. If you have ever walked the length of Tigertail, you probably recall wading in the water or weaving between the mangroves to reach the end. That is no longer necessary, as plentiful sand now allows for a walk free of obstruction. This project intends to protect Tigertail’s iconic lagoon, preserving the habitat for abundant wildlife. Next time you are planning a Marco beach trip, consider checking out the new and improved Tigertail coastline! To see photos of this transformation from the early 80’s until now, head over to our Facebook or Instagram!

Short-Term Rental Policy

Last fall, a short-term rental ordinance, Ordinance 22-08, was passed on Marco Island for single-family homes, here is what it entails. If a single-family homeowner wishes to rent out their home for less than a month, here’s a portion of what they will have to do: 1. Register with the city (includes $800 fee) 2. Apply for Transient Rental classification with the Department of Business and Professional Regulation (DBPR) 3. Have a fire inspection performed annually 4. Acquire proof of registration certificate from the Florida Department of Revenue for sales tax collection (tourist tax also needs to be collected) 5. Provide proof of full insurance 6. Complete Responsible Party Authorization for a person to contact in case of emergency (name, address, email, phone number, must be available 24/7 and local). This does not pertain to condos, as condos govern themselves. If your intention is to rent your home, contact the City of Marco Island to ensure you’re following all guidelines.

Visit Our Website

Our website, www.TheWaldrenTeam.com, is an easy resource for browsing listings on Marco Island, staying up to date on things to do in the area, and reading our Newsletter and other blog posts exclusive to our website. Websites like Zillow & Redfin have most information, but not all. If you want to receive updates on Marco listings in your price range, email us at [email protected] and we can set you up to receive these emails with up to the minute information.

Real estate, in general, is normally a beneficial purchase. You can live in it or rent it out and it has a
functional use. Most markets are accustomed to nominal appreciation year over year; Marco Island has been fortunate as this is especially true in a second home market. In my more than thirty years of selling Marco real estate, I have seen a substantial boom twice: in 2004-2005, and again in 2020-2021. Each occurred under different circumstances – the former was investor driven, when buyers were obtaining interest-only mortgages with minimal down payments, and the latter was pandemic driven, which resulted in an increased interest in our resort community. While the investor-driven buyers bought their properties to flip, resulting in a market downturn, our recent cash buyers are making Marco their second home.

The first indicator of the 2020/21 Marco real estate boom was the 50% increase in closed sales in the first
quarter of 2020 compared to 2019, and then (after a short COVID lockdown) things took off from there. The chart below is a snapshot of the last 3 years’ activity. A notable category of consistency is in the high volume of closed vacant lot sales in 2020 and 2021 due to buyers purchasing vacant lots with the intent to build new homes. As you drive around the Island today, you can see new construction in abundance.

So, what happens next? In comparing first quarter closed sales, the number of units in 2023 is down 36%, 322 compared to 202 units in 2022. The average sales price was consistent with minimal increase in both singlefamily homes and condos at a <1% increase, but the average price of vacant lots increased by nearly 60%. Last January, Marco Island real estate inventory was 175 units, and we are now at 449 units. An increase in supply does have an impact on price, and we are seeing prices adjust and a more level market. We are back to the days of being realistic and relying on closed sales as an indicator of present value.

Call us for a no-obligation market analysis of your property and to get a more in-depth view of the market. And please rely on The Waldren Team for all your real estate needs.