Agents have been complaining that this season has been a softer season than in years past.  Buyers don’t seem to be as motivated.  Southwest Florida real estate listing inventory hits 4 year high in February and sales prices have been flat since last year.  So why is it that top teams are having a fantastic season?

Southwest Florida Real Estate Listing Inventory Hits 4 Year High

The Ellis Team has lots of pending sales, plenty of closings, and before it’s all over March and April should be excellent months. Other large teams are selling well too, so how can it be both a fantastic market and a slow market?

The answer is it’s a great market if you know what’s really going on and you advise your clients accordingly.  Listing at a set price and forgetting it won’t do your seller’s any good if the market is on the move in that price range.

Statistically we have a balanced market.  It has shifted from a seller’s market to balanced, or slightly favoring the buyers right now.  Just like not all Realtors are the same, it’s also true with price ranges.  The below $300,000 market is doing well right now and the above $400,000 has slowed a bit.  However, there are sales in all price ranges.  We have a sale on a listing at $1.3 Million right now. You must know what range you’re in and adjust.

Aggressive marketing is critical in a changing market.  As more sellers compete for fewer buyers, you want your listing to stand out.  Every buyer will not purchase your home, we know this.  You want as many buyers to be exposed to it as possible.  Sellers mistakenly believe putting it on MLS and adding to a few online sites is all that’s needed, and all buyers will know about it.  This is not true and a costly mistake.

At the time of listing you set a listing price.  This price needs to be evaluated.  New listings may enter that market as competition.  Existing listings may reduce their price, making your home less attractive.  Remember, the seller sets the price, and the market determines the value.

Lastly, as homes sell, new comparable sales set the market.  Appraisers use these new sales as the best data sets for determining market value.  These new sellers won the home selling game.  Existing listings have not yet, and there is no guarantee they will either.

We know this much.  Homes that are marketed aggressively and priced correctly will sell.  If a home is unfairly overpriced, it will not sell no matter how much marketing is used.  Conversely, a home may actually sell below its fair market value without aggressive marketing.

This is where a true professional comes in.  To get Top Dollar, you need an agent to help you set the right price, continually monitor the market in case adjustments are needed, and market your property to actual buyers.  Preferably your Realtor will have a large database of buyers from past marketing efforts, combined with finding new buyers with ads targeting buyers for your home.  Together, that’s a winning combination.

We have a large database of buyers because we have a popular, easy to use listing website that helps buyers find homes they’re looking for right away.  Unlike other websites, it updates every minute or so, so hot new listings and price adjustments are seen in real-time by buyers.

Sellers can even get an idea of what their home is worth too.  Simply go to www.LeeCountyOnline.com to search for homes or find out what your home is worth.  If you’re thinking of selling, call Sande or Brett at 239-489-4042 Ext 4.  If you’re looking to buy, our team of friendly and helpful buyer agents can assist you as well.

Good luck and Happy House Hunting!

Ellis Team Weekend Open Houses

Open Saturday 1-4 PM

2403 SW 53rd Ter

SW Cape Coral Pool Home

 

Most people tend to believe the lower end is always the strongest segment of the real estate market.  If you looked at the October Months’ Supply of Inventory you would agree.  The months’ supply graph is a snapshot in time, so we added a little something to it this month. Upper end homes leading the SW Florida real estate market.

Upper End Homes Leading the SW Florida Real Estate Market

What if you looked at the change in direction from our previous snapshot in July?  Would that change your opinion?  Static data paints a picture and changes in direction tells a story.  The changes are not huge numbers.  For instance, the $Million+ went from 15.66 months in July down to 14.62 months in October.

Each price point above $300,000 saw a reduction.  Each price point below $300,000 saw an increase in months’ supply.  Many times, we see a price range here and there flip, so it stood out to us when we saw such a shift up to a point certain.

Upper End Homes Leading the SW Florida Real Estate Market

So, what does all this tell us?  Perhaps a lot, and perhaps not much.  It tells us we should keep an eye on it more so for the change in direction than for the change in numbers themselves.  You see, the number change isn’t particularly significant.

We did have a disruption in the market in September.  Could it be that lower end homes were hit harder than upper end homes?  Possibly, but if it were true that closed sales were disrupted you would also think that current inventory would be disrupted too.  Could it be that prices have risen to a point where first-time buyers and below $300,000 buyers are tapped out and can’t afford more increases?

If the latter were true we’ll see that going forward.  Keep in mind, as season approaches we’ll have more listings coming to the market and more buyers from up North buying homes too.  That can skew local buyers’ affordability issues until after season.

My intuition tells me numbers going forward will be strong.  While we’ll track these numbers going forward they may just be a blip.  I would have expected the lower end to have done better simply because we see lower end homes being gobbled up in days if not minutes.

Data Speaks For Itself

We like to report the numbers as we see them.  We don’t use the numbers to prove what we think is happening in the market.  The numbers tell us what actually is happening.  From there we can interpret what we think it means, but it does no good to try to use numbers to prove a point just to be right.

Throw in a hurricane for good measure and numbers can state about anything you want them to say.  We’ll report September housing numbers for Southwest Florida soon.  As you would imagine, our market was disrupted, and the numbers bear that out.  We may even see a rise in October numbers due to sales that were postponed from September.

Our team is bringing several homes to market.  We’ve got some good values and more coming.  If you’d like to search the MLS like a pro, visit www.LeeCountyOnline.com  Customers love it because the data is updated instantly.  This past week a customer asked me why a home shows one price online but a different price on our website.  I explained that our website has an instant feed, so when any agent in MLS changes a price or adds a new listing, it shows up right away on our site.

Accurate, Speedy Data Wins

This is particularly important when you’re looking to find the right home.  Speed wins, and beating out other buyers to hot new properties can be the difference between owning that home and watching someone else buy it.  The same is true with price changes.  Imaging having your eye on a property and seeing it sell because it was reduced.  But you didn’t see the reduction because the site you use never displayed it.  It was sold before they could display it.  That doesn’t happen with our website.

If you have a property to sell, the Ellis Team can sell it fast and for Top Dollar.  Call Brett or Sande 239-489-4042.  We can help you buy that dream home too.  Always Call the Ellis Team at Keller Williams Realty!

Ellis Team Featured Property of the Week

New Listing in Reflection Lakes

One of the common question real estate agents get from sellers centers around a home’s Zestimate on Zillow. Deep down sellers know what homes are selling for in their neighborhood and how their home compares.  Often, they just want to try a much higher price simply because Zillow says their home is worth more.  We attempt to answer the question, Are Zillow home value zestimates purposely inflated?

The buzz amongst real estate agents is they can’t believe how far off many Zestimates are these days.  Agents laugh anytime the words Zillow and home values are mentioned in the same sentence because they know they’ll have to explain how inaccurate these things tend to be.

Last weekend I had a conversation with one of our sellers.  She brought up her Zillow Zestimate.    Within 15 minutes after that conversation I went outside to work in my yard and my next-door neighbor asked me about his Zestimate.  He noticed it went up over $100,000 last month and wondered if the real estate market was that good right now.

Zillow Home Value Zestimates Purposefully Inflated

Of course, his value didn’t change $100,000 last month.  Perhaps you’ve heard the story of Zillow CEO Spencer Rascoff.  His home was valued at $1,750,405 on March 1, 2015.  The funny thing is, it sold 1 day earlier for $1,050,000.  That’s a difference of $700,405.  Put another way, Zillow was off over 40% on their CEO’s own home.

Are Zillow Home Value Zestimates Purposefully Inflated?

So is Zillow’s data that bad, or could there be another motive?  Let’s remember where Zillow gets its revenue. Zillow charges agents, property managers, and lenders to appear on their website.  They are gathering leads to sell to agents.  Some agents pay several thousand dollars per month for these leads.  Zillow takes MLS and public records data and assembles them and markets that data to the public in the hopes of attracting eyeballs to its site.

To increase revenue and charge more to agents, brokers, and lenders Zillow must increase visits to the site.  One way to do that is advertise more on the Internet and TV.  Another way is to change up the values frequently in hopes of getting repeat viewers to come back often and see what’s going on with their value.

We get it.  The market changes every day.  It doesn’t typically change $84,000 in one day.  So, either Zillow’s algorithm for calculating values is off, the underlying data are off, or they are trying to create a buzz by getting people to check back repeatedly.  In the news business, they call it Click Bait.  Click bait is when editors write a sensational headline to get readers to click on the article.  It could be fake news, doesn’t matter.  If the headline works, it attracts readers which ups the hit count.  The higher the hit count, the higher the advertising rates.  Most reputable news organizations don’t utilize this tactic.  They don’t have to because they have valuable content.  Tabloids on the other hand use this with perfection.

Agents are paying top dollar presumably for new leads not realizing Zillow is stoking the fire by attracting the same old leads repeatedly.  Consumers may be unaware that Zillow now has data on everyone who has checked their home value, and they are selling data like that.

Zillow Admits Errors

Zillow says that nationally their Zestimates are off by 7.9% on average.  That’s a lot!  However, in Seattle where their CEO’s former home is located, they claim to be more accurate at only 6.1% off.  Can we really trust their numbers when they were off over 40% on their own CEO’s home?

If you’re thinking of selling, we have an automated valuation tool that may be more accurate.    More importantly, we will never sell your info to other agents and brokers.  Why would we?  We want your business.  We’d love to earn your business.

If you’re thinking of selling, call the Ellis Team at Keller Williams 239-489-4042 Ext 4  Let us show you how we put more money in your pocket at closing than other Realtors and how we sell homes Fast!  And, we’ll show you what true Top Dollar is for your home so you can make accurate decisions.

We’re here to help.  Always ask for Sande Ellis or Brett Ellis.

Read about Southwest Florida Real Estate Market Statistics to be released tomorrow.

Paint the Town Red

This weekend is the Keller Williams Paint the Town Red Event.  We’ll have around 100 homes open in a single day.  It’s the single biggest open house event of the year.  Check back as we’ll be posting the addresses here.

Ellis Team Featured Open Houses

Sunday 1-4 PM

Ellis Team Open House

6180 Winkler Rd

 

 

 

 

 13624 Gulf Breeze St Reflection Lakes Pool Home