Dear Toby - June 2008

Your Comments and Questions - My Replies

I receive several comments and questions from website visitors. To many, I have responded individually. It occurred to me that some of these questions and answers would be of interest to all of you. I publish selected input and replies under the “Dear Toby” banner, with a new page each month to keep the pages short and readable. The most recent entry is at the top of the page.

Feel free to use the “Contact Us” button to send in your comments or questions. Your name will not be disclosed. Due to volume, I may be unable to reply to everyone.

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Question: How reliable is price per square foot as a predictor of what the next sale may be?

Toby Says: Price per square foot is a very reliable measure, but only if looked at in the proper perspective. First, my website shows average price per square foot. This is not nearly as reliable as median price per square foot, but it's a lot easier for my web master to compute. Think about it. One sale in Island Estates would have a big effect on the average, but not on the median.

Having said that, price per square foot is meaningful as long as you are looking at REAL comps. A median price per square foot for a salt water canal home is bound to be above one in the Indian Lakes (apples to apples). Closer to home, if your neighbor's home with a pool like yours and with the same number of bedrooms and baths sells for $145 per square foot, and it's not a lender-owned property, and it's not a short sale, then you probably won't fetch a price that is much different. All of the websites that claim to give you the value of your home (Trulia, etc.) use price per square foot as their primary measure. Their biggest downfall is that they cannot relate to true comps. Any time a realtor gives you a listing analysis, they start from the price per square foot basis, then adjust for differences.

Question: Do you know when the new Target on 100 will be opening? Also, is that group of stores located in Town Center or is the shopping plaza called by another name?

Toby Says: The opening is scheduled for the last week in July. The shopping plaza (retail power center) is known as "The Landing at Palm Coast." It is part of Town Center.

Question: Who is developing Harbor View Marina on Colbert Lane near the old Lehigh Cement plant?

Toby Says: The property is owned by Great Star Investors VIII LLC. Their mailing address is 3129 Springbank Lane, Charlotte, NC 28226. This is the same address listed for Florida Waterway Investments, LLC which lists local attorney Paul Katz as its registered agent.

Question: I have heard that all the permits are in place for the movie theatre. Are they ever going to start building it? Why are they taking so long to break ground?

Toby Says: It’s common for developers to get the permits in place ahead of time because the permitting process is sometimes long and uncertain. Impact fees are paid when the building permit is issued, so it makes sense to wait to pull the permit at the last moment before construction is to commence. For instance, Houligan’s permits were ready several weeks before they were issued. I have not heard when Epic plans to commence construction. The Epic will be located in Town Center.