Negotiating House Prices in Broward County

There are a few valuable home improvements that Broward home buyers often forget to factor in when negotiating the price of a house they are interested in. Today I will discuss two of them: hurricane shutters and sprinkler systems.

The number of hurricanes that have affected us in recent years has caused many Broward County homeowners to invest in hurricane shutters. This is good. However, the vast majority of Broward County homes still do not currently have hurricane shutters, which is unfortunate because they can make a difference in the severity of damage caused by a hurricane.

The cost of getting hurricane shutters installed in Broward County can vary greatly - from a low of about $1,200 to well over $10,000 - and depends on a few things, but most importantly on the number of openings (doors/windows) you want protected as well as the type of shutters chosen. Accordion shutters cost more than panel-type shutters but are generally easier and faster to open and close. There are other types but these are the two most often installed nowadays. Also, keep in mind that the demand for hurricane shutter installations increases considerably just after a hurricane (remember, hindsight is 20/20). When this happens, prices invariably increase as does the wait time before they're installed (sometimes 6+ months). When comparing one home that includes hurricane shutters with another home that does not, it's important to take the cost into account when negotiating the house price.

The importance of having an automatic sprinkler system is another item that Broward County home buyers often overlook. The cost of having an automatic sprinkler system installed varies - probably around $1,400 on the low end to over $5,000 if the property is very large. An automatic sprinkler system can also save you money via a lower water bill as most homes that have one use either well or lake water, so the cost is usually limited to the electricity used by the pump and system maintenance.

While some Broward home buyers may not think this is an important amenity, they often change their minds after a few months or years of having to water their lawns themselves. If a Florida lawn is badly neglected and needs replacing, it can cost hundreds of dollars to replace with new sod. Here, again, when comparing a home that has a functioning automatic sprinkler system with another home that does not already have one, it's important to take this into account when negotiating the purchase price of the house. One last note about sprinkler systems: be sure to find out (preferably before home price negotiations begin) whether a home's sprinkler system is in working order. Just because you see sprinkler heads in the lawn does not mean the system is functioning properly, though a lush green lawn is usually evidence enough.

Teardowns and McMansions in Broward County

According to the National Trust for Historic Preservation, Florida is among the 20 states they identified in 2002 that is experiencing teardowns in historic neighborhoods. In 2002 they identified 100 communities in 20 states and, unfortunately, as of May 2006 that number has soared to more than 300 communities in 33 states that are being impacted by teardowns.

Of the 21 cities in Florida identified by the National Trust for Historic Preservation, 3 were in Broward County: Lighthouse Point, Fort Lauderdale (Rio Vista), and Hollywood (Lakes).

The term "McMansions" is a slang architectural term and is often used to describe the house built to replace the teardown. Though the replacement homes vary somewhat in size and style throughout the U.S., here in Broward County, McMansions are typically much bigger than the original house on the site and they tend to stand out in a neighborhood that mostly consists of older and smaller, one-story homes with roomy front and back yards.

Oftentimes, this new construction is not welcomed by neighbors because it destroys the original character of the neighborhood. Immediate neighbors sometimes complain of restricted views, reduced sunlight to their house or yard, as well as concern over property values. Local leaders are often either not able or willing to prevent these teardowns that forever change the landscape of what are considered by some to be historic neighborhoods.

Among other terms used in place of "McMansions" are: "monster home," "faux chateaux," and "starter castle."

Additional information:

• Florida Trust for Historic Preservation
• Teardowns / McMansions in the News (.pdf format)
• Glossary of Teardown Terms (.pdf format)

Local MLS Statistics for April 2006

The Realtor Association of Greater Fort Lauderdale, of which I am a member, has released their April MLS Statistics:

New Listings:

• Single Family: 2,908
• Condo / Townhouse: 3,527

Available Inventory:

• Single Family: 8,838 - (9% over March)
• Condo / Townhouse: 11,490 - (9% over March)

Average Sale Price:

• Single Family: $465,328 (-4% over March)
• Condo / Townhouse: $247,934 (-6% over March)

Median Sale Price*:

• Single Family: $354,300 (-4% over March)
• Condo / Townhouse: $210,000 (2% over March)

*The median sale price is the market price where half the homes sold for more, half sold for less.