All Forum Posts by: Melissa Jolley

My take and personal experience in NWFL:

In the months following Hurricane Michael our area was inundated with out of town contractors....literally swarming. Some I am sure had good intentions and others did not. It became common practice to have homeowners sign "AOB's" in order to cut them out of the negotiations and process of getting their claim filed. These forms allow the contractor to go directly to the insurance company with damage information...$$ requests...etc. 

This has been one of the most frustrating things about real estate since the first day of 2021. Inventory is low, yes....but insurance costs have gone up so drastically that buyers are exceeding the debt to income ratios set forth by their lenders. We end up having to narrow searches to 2, maybe 3 homes that fit all of the criteria set forth by the insurance companies....only to compete with 12 other offers. 

As a society, we would do well to be more honest with ourselves and our peers. Stop the 'make money at all costs' mentality and start thinking 'do the right thing at all costs'. I think this whole thing is driven by greed and has turned out to be terrible for most people. Even the contractors that made the $$ using AOB's claiming inflated construction costs and damages have homes that they will need to insure. What goes around has come around to all of us here in FL...not just them.

I am in NWFL. The tax assessment rarely equals the actual market value here. I would go so far as to say never (I have not looked at every single property). That said, yes...prices are high. Florida is one of the states that has a huge influx of people moving in after COVID. Surprisingly, many areas are less expensive than other states like California, Washington..etc.... I have buyers here that have put in 10 offers. Several buyers. If you are concerned and don't want to feel like you are overpaying, buy something that can be fixed up. 

Here is my .02....I don't think anything else needs to be said.

Hey man! Welcome to Destin (unless you previously lived here). 

First, travel nurse....AWESOME....seems that is an excellent business to be in. I have 4 or more in my family. LOL. 

Ok...so the short of it is that Destin came up with a few new rules recently for short term rentals...this was mainly due to STR on Holiday Isle being over-occupied which caused parking issues for full timers. The new rules obviously looked at zoning but truly they were put in place so that STR's had to register ($) and have the correct signage outside of the home. Occupancy limits strictly enforced.

Based on what you are saying and the fact that you plan to live in the home, there are going to be a few challenges here.

My best advice in terms of getting this approved using all of the right methods would be:

Follow the paperwork to the T. Get very familiar with what Destin wants for the future of that area. If you don't know about the huge push to take back some of the shoreline...read up. Their objective is to increase the public beach area(s) and to limit congestion as much as possible. During the hearings, anticipate any issues that they may bring up that contradict that objective. I think the fact that you will be living on site is a huge plus. Be genuine in your efforts.

If they deny you for the STR...it looks like you may be able to recover in the short term by renting for 6mo at a time if you specific situation allows. Be clear on what is considered "long term" at the hearings. Keep fighting. Keep records of every call made to and from the city. Who, what, when, where....to include before your closing.

@Sumner Rabin If they are near market value or slightly above...around 2 seconds. The biggest thing here (and I assume many places) is pets. It is the major deciding factor for people to buy or rent. My area is heavily saturated with military so there are always folks looking to rent.

A couple things....

Florida has no state income taxes

Florida is and has always been a tourist destination (several hot spots that I am sure you are aware of)- this creates a need for jobs and small businesses that can thrive in that environment

The weather

The median price of a home in FL is around $250,000

I will stop the list there but property taxes are low in most areas as well. The state is a a popular choice for disabled veterans because they pay no property taxes on their primary home. Right now, boomers are still retiring or already retired. Since Florida is home to many resort style retirement communities....it is super popular with boomers and that influx will continue since the youngest boomers are in their late 50's. Folks that purchased homes in more expensive states are sitting on a lot of equity...they are selling (California for example) and paying cash for homes in FL. 

I will only speak for my area but rent is much more than owning a home in NWFL in most cases. For example, my home would be $325K right now. I pay $1450 a month after taxes and insurance. That figure now would be around $1600. To rent my home would be $1800-$1900. So...it is much more advantageous in my area to buy. 

In terms of insurance- yes, Florida policies are higher and they are very strict right now due to the last storm season. This may stick around for a while. I expect that rates will level out and home prices will go down but it is difficult to predict anything with certainty because of the effects of COVID. Still, I can assure you...people need to rent in FL. Homes are affordable and 8 out of 10 homes can rent for more than they cost to buy. The only caution I would provide there is that home prices are crazy right now and homes that meet all insurance guidelines are selling with multiple offers above list. Be cautious. Consider the costs....estimate rents appropriately....work with a good agent.

Positive, right side. If I remember correctly. 

@Donald J Glidewell This may be a long shot but State Farm. I had a buyer client that purchased a 60's home recently. He already had a relationship with someone from State Farm.....but he was able to get 30 days to make the changes required without having the insurance premium increase. Basically like a grace period. I know that they have changed just like some of the other carriers but lately the coverage that they are willing to extend for the price is superior. 

@Michael Haynes It sounds like this has more to do with the cost of replacement having increased exponentially. It also sounds like this community has an HOA...is that the case?

Insurance and Inventory. The two biggest things I am dealing with here in NWFL. On the insurance front, my personal home insurance went up $600. Basically, carriers are not wanting to insure shingle roofs at or over 15 years....they really want to see at least 3 years left (12 year roof or less). If the home was built before 2000...that is another strike. All..and I mean all....carriers are doing their own inspections after closing. Even if the home is not needing a 4pt. They are going and doing the inspection. Some example premiums (all owner occupied):

1950's home with all major components replaced in the last 5 years (HVAC, HWH, Roof, Plumbing, Electrical)....inland. $2500 a year. Only 1 carrier available as of the date of the quote.

1991 with all major components less than 7 years old $2200 a year.

2021 build around 1400 sqft...$670 a year.

The # of carriers that will insure mobiles up here is also dwindling. Quotes running around $2000 for a 2005 Doublewide. $150K coverage.

Advice to any homeowner or investor in FL: Don't even mess with a shingle roof. Pay more...get metal...be done. Those are the only systems that your insurance thinks can last more than 15 years. Also, don't get sucked into solar or storm shutters (speaking for NWFL)..those two items may not have the insurance benefits you think.

@Jason L. I am so sorry this is happening to you. It seems universal. I get quotes at least 3-4 times a week and all have been much higher than last year. I hope someone is able to comment with different advice. 

Lot 2, which is between the park and the property purchased by the Trust/City at the end of 2020 has been on the market and off for several years prior. It was formally foreclosed in 2017. They tried to sell it for so many years that one can assume it had some major structural issues but like @Matt "Roar" Gardner said, unverified. Lot 3 was purchased the end of last year had been on the market since 2018. Again, nothing concrete about the condition. It was purchased for 2.1 several years prior and sold at 3.3. I think it would be hard to see from the outside but Destin is very much in favor of short term rentals done right. There are a ton of full time Destin residents that had valid concerns about the way STR were being managed and they voiced those opinions. I think it is possible to do both. Lets face it....if the locals aren't happy...nobody is! I am excited about folks looking forward to visiting our area and having more public access.