It’s that time of year again folks.  SW Florida home sellers begin reducing prices as season drags on.  This isn’t necessarily a bad thing.  In season, homes fly off the shelves, but not all homes.  Each year some sellers get greedy and hope that an out of town buyer will overpay for their home because they just love it so much.  What’s different this year is that inventory levels are higher and the monthly supply of inventory has grown. Market data shows price decreases amid growing inventory.

Market Data Shows Price Decreases Amid Growing Inventory
SW Florida Market Watch

Motivated sellers are finding out that they cannot overprice a home and expect it to sell.  It’s been a seller’s market in years past.  This year it’s more of a balanced market.  We have perhaps one of the healthiest markets we’ve had in a decade.  By that we mean neither seller nor buy has an advantage.

When the market shifts like this it’s an opportunity for educated sellers to use their knowledge and jump ahead of other sellers before they figure out what’s going on.  It’s not that hard to do.  Many sellers are reluctant to hear the truth, so they tell themselves the market is better than it is.  They study neighbors asking prices and add some more simply because their home is nicer.  Never mind the fact their neighbor’s home has been on the market for over a year.  They judge their competition by asking prices instead of sold prices.

Market Data Shows Price Decreases Amid Growing Inventory Listings
Listing Inventory

The educated seller looks at other sellers who have won the home selling game.  It’s kind of like asking a group of fishermen how the fish are biting today.  You wouldn’t ask the ones going out in the morning who haven’t caught anything yet.  If you truly want to know how they’re biting, you’d ask the ones coming in at end of day with fish in their boat.

Market Data Shows Price Decreases Amid Growing Inventory Months Supply
Month’s Supply Inventory

The same is true with the real estate market.  We must look at actual sold data and compare to the subject property.  And we should look at what the conditions were at the time of those sales versus today.  If a home sold 5 months go back when we had less inventory to compete with we may have to discount that a bit now that we’re competing with many more homes.  We must take all conditions into account.  Otherwise we may misjudge the market, and that only hurts the seller in the long run.  Sure, they’ll feel better about themselves for a month or so until they realize the price they thought their home was worth was just pie in the sky.

Sellers may blame the market. They may even blame their Realtor for not selling it.  We’ve been through shifting markets before.  Many times, we’d call a seller and talk to them about market conditions.  Some just do not want to hear they need to reduce their price.  No Realtor enjoys that conversation anyway, but ignoring changing conditions can be at your own peril.

We have a good market right now.  Chances are if your home hasn’t sold yet it’s due for a pricing checkup.  Marketing becomes more important as inventory grows.  Pricing is equally important.  It could just be that you were a little too aggressive initially and re-positioning your home in the marketplace could do the trick.  As you can see, a lot of sellers are selling, and the one’s that aren’t are reducing their price.

If you need to get your home sold, call the Ellis Team at Keller Williams for expert pricing and marketing 239-489-4042.  If you’d like to shop and educate yourself online first, go to www.LeeCountyOnline.com  It has all the listings and it’s updated every 5 minutes.  No more looking at homes that sold months ago, or old prices.

If you’re looking to buy or sell, our team can help!  We make the process easy and we handle all the details.  Let us help you with your next SW Florida transaction.

Good luck and Happy House Hunting!

Suffice it to say marketing real estate has come a long way in the last decade or so.   Gone are the days when you could just put a sign out front, an ad in the paper, and upload it to MLS and expect it to sell.  Oh sure, it might sell, but what if that doesn’t work?  The Ellis Team and other top agents are finding SW Florida real estate buyers using advanced marketing techniques.

Finding SW Florida Real Estate Buyers Using Advanced Marketing Facebook Audiences
Online Audience Demographics

Sure, we still use the newspaper, signs, and the MLS.  All marketing works to a degree, and any one of them could sell the home.  We can’t just sit back and hope the buyer finds us.  We have to go out and find the buyer, and that’s exactly what we do.

Finding SW Florida Real Estate Buyers Using Advanced Marketing

Through the power of Google, Bing, Yahoo, and Facebook we’re able to lock in on the buyer and bring a home to them, instead of praying the buyer finds us.  We can search for buyers who are likely to move, who make a certain amount of money, have a certain degree of education, just entered new relationship, or have a level of equity in their current home.

Finding SW Florida Real Estate Buyers Using Advanced Marketing Facebook Behaviors
Behaviors Likely to Move
Finding SW Florida Real Estate Buyers Using Advanced Marketing Income
Online Lead Income Level Selection

 

Home Ownership Characteristics Finding SW Florida Real Estate Buyers Using Advanced Marketing
Home Ownership Characteristics

We can drill even further.  We can target doctors, people up north, and hundreds of other attributes.  Real estate is a people business.  The best agents learn a lot about their clients because they ask questions.

Today there is a database that has all this information.  When you put a sign in the yard you’re limited to just those that drive by the property, and you have no idea if they need a home or could even afford one.  When you know which people make a certain amount and are likely to move and are looking for a 2nd home in SW Florida it makes it easy.  Sure, you have to know what you’re doing and how to reach these people, but the time invested in targeting the right people more than offsets targeting the wrong people.

When we list a $1 Million property, we want to find million dollar buyers.  It does us no good to find $100,000 buyers for that Million-dollar home.  And vice versa.  When we list a $200,000 home, it doesn’t matter how many $5 million buyers we have.

We sell what we list.  Sometimes sellers will ask how many homes have you sold in his price range, and that might be the wrong question.  The best question is how will you reach qualified buyers for my home?

We’ve sold properties in our career anywhere from about $5,000 to over $15 Million.  Of course we need to price the property correctly because no amount of marketing will sell an over-priced listing.  Proper pricing isn’t enough however.  We’ve got to go out and find the buyer, we can’t expect the buyer to find us without proper marketing.

We not only have a database of buyers in all price ranges ready to make a move, we go out and look for more buyers as we list each property.  This expands our database, so it’s quite possible we already have the buyer for your home.  When new properties hit the market, our buyers are alerted each day of new listings that match their criteria.

If you’re thinking of selling and not sure how an agent will find a buyer for your home, give us a call.  239-489-4042.  Ask for Sande or Brett.  We’ll be glad to show some advanced marketing techniques we’re using to sell our listings.  It not only works, it’s kind of fun.  Feel free to use our website to search the MLS or find out what your property is worth.  www.LeeCountyOnline.com Always call the Ellis Team at Keller Williams.

 

Good Luck and Happy House Hunting!

New Listing Coming Soon

1338 Landmark Ct-Whiskey Creek Waterfront Pool Home

This past week we’ve been speaking with agents who have noticed lower sales counts across the county, which begs the question “Is something happening to the local real estate market?”

June’s official numbers won’t be released until a few days after this article is written, so we decided to look at May’s numbers and combine some current data from MLS and a few large real estate companies in SW Florida.

Agents Reporting Lower Sales Counts Across Lee County
May 2016 SW Florida Housing Numbers

Agents Reporting Lower Sales Counts Across Lee County

If you look at May’s data you’ll notice pending inventory is down 12% from last year. New pending sales are down 6.4% while inventory is up 14.1% This chart lends credence to the fact that the number of sales counts are softening.

At Keller Williams our office tracks Listings Sold Volume. The board was down 13.21% in June while our office was up 25.33% That’s a differential of 38.54% I spoke with 2 large RE/MAX offices and they both said they were up about 38% and 50% respectively. I’m not sure if that was sold volume or units, but either way they’re up.

So why are some offices increasing sales while others are obviously losing sales? The answer can be complicated. Perhaps the office had 1 or 2 large sales skewing the volume numbers. Perhaps they sold a chunk of homes to an investor. Or, perhaps their agents are just more tuned in to what’s going on in the market and making adjustments.

Agents Reporting Lower Sales Counts Across Lee County Market Watch
7 Day Market Watch

I pulled a 7 day Market Watch available through our MLS. Price decreases are outpacing new listings. I was excited to see pending sales outpacing new listings as well, although we know not all pending sales will close. You’ll see some sellers giving up by looking at the terminated, expired, and withdrawn counts.

It can be frustrating to bring a property to market and have little to no showing activity. When this happens it tells you that you’ve overshot the market. If your home is priced at market it should receive showings. If your home is way above the market, it’s not really on the market and is shunned by potential home buyers.

Sometimes the sellers believe the market is at one point and the buyers believe it to be at a lower point. When this stand-off occurs, activity lessens. The sellers that want or need to sell react and make a move to find the buyers. When this occurs, a property will sell.

We recently had a property go under contract. We picked a price and had lots of showings. It was priced close enough to where buyers would look at it, but not make an offer. We reduced it once and got even more showings and one low-ball offer. We reduced it a second time and it sold, for much higher than the low-ball offer.

The home initially was priced right where it should be based upon past sales. However, the market rarely stands still. In that price range we noticed a shift in the market. If this seller would have stayed at yesterday’s prices, the home could still be on the market.

You never want to get caught chasing the market down. You want to get ahead of it. People read that prices are up, and they are up 4.7% in May versus last year. That doesn’t tell the whole story. That is median price, and some price ranges are increasing while some are decreasing.

Knowing where your home fits is crucial. Sure, you can interview 5 agents and pick the one who says the highest price. But have you done yourself any favors? If your home sits on the market and 6 months later you’re shaking your head because it hasn’t sold, are you going to be happy you selected the agent with the highest price?

We’d suggest interviewing agents who know the market, will be brutally honest in regards to price, and markets the home in a way to reach the entire market. If you do that, you will have success. If you don’t, you can find that agent the 2nd time around and hope that prices haven’t declined further. If it was priced right the first time, it should have sold. Keep in mind, just because you overprice it today doesn’t mean the market can’t fall further. If it does, you’ll just be chasing the market down.

See Also Business Observer Article on SW Florida Real Estate Market

Always call the Ellis Team at Keller Williams, we’ll help you get your home sold now! 239-489-4042 Find your dream home now!

 

Join us for Open House in Reflection Lakes Saturday July 23 1-4 PM

13925 Bald Cypress Cir

Reflection Lakes Gated Community South Fort Myers
Reflection Lakes 4 Bedroom Pool Home on Lake

 

 

 

 

 

 

Best real estate team SW Florida News Press Readers poll
Ellis Team Voted Best Real Estate Team in SW Florida

Thank you for voting the Ellis Team Best Real Estate Team in SW Florida News Press Readers Poll

Sometimes we like to take a break from statistics and real estate market news and tell you about a neighborhood or area in SW Florida. Today we picked Palmetto Point waterfront community in South Fort Myers.

Palmetto Point Waterfront Community
Palmetto Point Waterfront Community

We don’t currently have any listings in Palmetto Point, we just love the neighborhood and enjoy selling homes in there whenever we get the chance.

Palmetto Point waterfront community is special because it offers deep waterfront access which accommodates large yachts and sailboats. It is located adjacent to Gulf Harbour Golf and Country Club so residents can join Gulf Harbour and enjoy their amenities like golfing, tennis, fitness, and fine dining without having to live in the country club.

I remember when I first moved to SW Florida in 1988. I used to drive through Palmetto Point waterfront community and say this is where I’m going to live one day. While that never quite worked out for one reason or another, my love for waterfront communities like Palmetto Point has only grown.

Most Expensive Home in Palmetto Point Waterfront Community
Most Expensive Home in Palmetto Point

Currently there aren’t many homes on the market in Palmetto Point. The most expensive home is on the market for $4,395,000 and features 5 bedrooms and 5.5 baths. It has approximately 7,292 sq ft living area, a 3 car garage, and overlooks the yacht basin with room for a 100 ft yacht in your back yard.

Least Expensive Home in Palmetto Point Waterfront Community
Least Expensive Home in Palmetto Point

The Least expensive home on the market right now is $329,000. It is considerably smaller at 1,645 sq ft of living area and is not waterfront although it does have a canal view. You won’t be able to park your boat behind this home.

There are other waterfront listings for $1,190,000 and $799,900. In case the existing inventory doesn’t suit your fancy, there are 5 waterfront lots currently available ranging from $695,000 to $2.25 million. If you’re looking for Fort Myers deep water access in a Fort Myers waterfront community, Palmetto Point might be just what you’re looking for.

If you’d like to see more information on any of the active or sold properties simply head over to Palmetto Point Market Report section. You’ll see that the highest sale in Palmetto Point in the 6 months sold for $3.75 million. You can click on any of the homes and see all the information about them. The site will give you days on the market, price per sq ft, sold date, and all the property details.

Palmetto Point Waterfront Community Market Report

Palmetto Point Waterfront Community Market Report
Palmetto Point Market Report

You can also find out what your home is worth on this site. Well, at least according to the best online computer models available today. Keep in mind that the computer has not been inside your home nor seen the updates you’ve done. For that, you’d want to speak to a professional like the Ellis Team. We’re experts at getting top dollar for nice homes in SW Florida.

You may have heard about the recent sale on Sanibel for $6.837 million. This past year we have seen several sales north of $1 million. While the $1 million+ currently has a 19.74 month supply of inventory right now, that’s actually pretty good historically speaking. It always takes longer on average to sell the larger homes as there are fewer buyers for them, but like anything else, if it offers what everybody wants, is in good condition, and priced correctly, it will sell.

If it isn’t priced correctly, properties will sit on the market. Proper pricing along with exposure to the market is what sells property.

If you’re looking for a waterfront gem but don’t have $1 million+ right now to spend on a home or lot, we have one in Overiver Shores that’s a beauty for $600,000. It’s 5 bedrooms, 3 baths with 3,363 sq ft living area and offers access to the river in seconds. There are buys out there if you know where to find them.

If you’re looking to buy or sell waterfront property in SW Florida, always call the Ellis Team at Keller Williams. We know the market and can guide you through searching for your piece of paradise. You can reach us at 239-489-4042 or search away at LeeCountyOnline.com

Good luck and Happy House Hunting!

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