It’s season again and it’s not uncommon for listings to rise during season which is usually a good thing except for those sellers that decide to “Test” the market. There’s an old saying that goes “If your home is over the market it isn’t really on the market.”
Perception Vs Reality in the SW Florida Real Estate Market
Sellers overprice homes in all kinds of markets; good, bad, and sideways. Overpricing is nothing new, but it seems to be gathering steam these days as sellers read headlines that the market is improving and prices are on the rise.
It is true, the market has continued to heal itself, and prices have been rising for many homes. Some price points have a shortage of homes on the market while some price points have as much as 3 year supply.
The other day I noticed the following post on Facebook from a Bonita Springs agent who I’m friends with “Well, I see we’re back to listing properties based on list prices, not sales prices again.” Several local SW Florida agents chimed in and agreed.
Personally I’ve been on dozens of listing appointments in the past several months. Some we’ve taken and many we have not. Some sellers are interviewing as many as 8 agents trying to get an agent that will agree with their price.
I’ve gone back and tracked several of the listings where we recommended a true market price and the seller chose to list with another agent at a much higher than market price. Some have even listed just slightly higher than market and they all have one thing in common. Their homes are still on the market. They have not sold, and they will not sell because they are over-priced.
Oh, sellers can justify about anything. Perhaps the Germans or the Canadians will come and fall in love with it and buy it. We do extensive marketing to foreign buyers but one thing I can tell you is they research the market and don’t want to overpay either. Imagine if you were traveling to another country, or even another state. You’d research the market before you felt comfortable buying wouldn’t you? Germans, Canadians, and Snow Birds from here in the States do the same thing. Nobody wants to overpay. They don’t care how much you need for the property, only what it’s worth.
Pricing your home correctly is only part of the battle. So much more goes into effectively selling and successfully closing the sale. Many owners and agents can get the contract, but closing it is another story. This is where the real expertise comes in. Notwithstanding this fact, overpricing the home negates the experience it takes to close a sale because you rarely even get that chance.
And if you are lucky enough to over-price and find a buyer, the appraisal will trip you up when the property doesn’t appraise. Even many cash buyers are putting in contingencies that property must appraise.
A lot of sellers like to overprice in season then get serious when many of the high end buyers go home. Why would you want to do that? Again, if you’re over the market you’re not really on the market. Why not have your home on the market when the most higher end buyers are here?
Sure, many of these seasonal buyers come back and visit in the summer, but some buy on impulse while they’re enjoying the weather and good times here as well. Especially when they see how bad the weather is up North.
Sellers don’t like when buyers have erroneous perceptions about the market. Buyers don’t get what they want when that happens and the seller just sells to a buyer with correct perceptions. The same is true for sellers. If you have erroneous perceptions, buyers will pass you by and work with a seller that perceives the market correctly.
Agents don’t control prices, the market does. I don’t care if prices go up $10,000 or $20,000. I can’t. It’s my job to research and interpret the market for our clients so they can be successful. I can’t make the market anything it’s not. If I could, I’d start with my own property.
If you’re thinking of selling, give us a call and we’ll work with you to get the best price. You might find other agents who will list it higher, but ask yourself this question, “Am I looking to sell my property or just list it and waste my time?”
All those other listings we walked away from are still on the market. Our listings are selling. Things that make you go hmmm. Call us at 239-489-4042 or stop by our office at 7910 Summerlin Lakes Dr Fort Myers, FL 33907