Home prices in Southwest Florida have been stagnant for the better part of a year now, but nobody believes it because headlines tell us how wonderful homes are appreciating in Florida. We were waiting to see how season went to see if that trend would continue. What we found is more of the same, SW Florida home price gains remain elusive compared to Florida in general.
The Cape Coral- Fort Myers MSA median home prices increased .6% in the 1st quarter compared to 9.7% statewide. Our condos and townhouses showed no price change whatsoever from last year, compared to 7.8% gain for the state. Cape Coral-Fort Myers is the 6th largest MSA in the state, and yet each of the 5 larger MSA’s all had gains of 4.8% or better. Some much higher.
We go on listing appointments where the seller believes their home has appreciated 9% in value each of the past few years. Unfortunately, if you interview enough agents you will find one that agrees with you and takes the listing. Getting the listing isn’t the end of the sales process, it’s simply the first step. The seller sets the price and the market determines its value.
If a seller sets the wrong price, one thing happens, doesn’t it? You guessed it, it sits on the market like a lonely school child watching all the other kids play. Oh, it may have some friends. Misery loves company. They hang out with all the other kids who have overpriced their home too. The strange thing is, nobody really wants to be in this club.
So, they turn on each other, and start lowering their prices to get out of the club. Each watch what the other is doing, looking over their shoulder each time they make a reduction. The only problem is, they’re looking the wrong direction. They should be looking at all the kids playing. Wherever that group is, that’s where they should head. While they’re busy looking over their shoulder at where they’ve been, their eye still isn’t on the market. It’s looking backward instead of forward.
The market rarely sits idle. It is moving. While they’re looking over their shoulder, the moving target in front of them just moved someplace else. Wouldn’t it save so much time to just find that group of kids on the playground and get right in there? Skipping a half mile behind them means you did spend time on the playground, but when recess is over, you never had any fun. If you’re going to the trouble of placing your home on the market, you want results. The quicker you get there, the more fun you have. If the market is on the move, you never want to get caught chasing the market.
Chasing will not only wear you out, it can cost you money. When all the overpriced homes figure it out and finally make their move, you now have more competition. Setting your home price correctly upfront and reacting quickly if it doesn’t sell is a recipe for faster to the fun.
If you’re thinking of selling in the next year, check out www.SWFLhomevalues.com You’ll be able to get approximate current values for your home. Of course, to be most accurate, always call Sande or Brett Ellis and we’ll be happy to come out and view your home and tell you what we think it would sell for. You might have some questions about how the process works, timing, or where you would move to. We’d be happy to sit down and discuss all this with you. You’re more than a transaction to us. We’re interested in getting you to your next destination safely. Hopefully you’ll have some fun on the playground while we sell your home for you. Call Brett or Sande at 239-489-4042 Ext 4
Good luck and happy selling!
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