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.
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.
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.
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!