For the past year or more we have been telling readers now may be a good time to sell.  The market statistics prove that, and yet not everyone is doing it, including Realtors.  This year I took my own advice and decided to make a move.

Took My Own Advice

It’s not that we were unhappy where we lived.  It was a great neighborhood and a great house.  Our needs changed, and this market provided an opportunity that was too good to pass up.  If you love your home and your needs have not changed, you don’t need to sell just because there is an opportunity.  But if you have been thinking about what a move would look like to better your situation, the opportunity is there.

Took My Own Advice

For us we had 4 children, and the last is graduating high school this year and moving on to college.  My wife and I do not need a 5-bedroom 2 story home for just the two of us.  We were torn because we loved the community so much.

We put in a contract at a new home community.  That home is schedule to be built this year.  Later we listed the home we lived in and it sold within 9 days.  The buyers are thrilled with the home and we were able to jump into a rental that opened while ours is being built.

Not only did we get a good price for our existing home, but our future home has also already gone up $27,000 in price since we signed the contract, and they haven’t even broke ground yet.  This market is a win/win market for buyers and sellers.

Sellers get to take advantage of Top Dollar.  Buyers also win, because home prices are rising, and about a week after they move in the home is worth more than what they paid for it.  In fact, many times it is worth more before they close.

Values Are Changing by the Week

Our home for example appraised for $20,000 more than what we sold it for.  You might say how did you sell it for Top Dollar but below appraised value? After we signed the sales contract with new buyers several comparables closed which pulled the value higher.  It is a fluid market and values are changing by the week.

Do you know what your home is worth in today’s market?  If you have not had a thorough market evaluation and tested the market, then you really don’t know.  In the absence of sales data, we have been forced to put homes on the market at prices higher than any recent sales.  Then along comes several buyers we attracted through our marketing, and it sells for even higher than list price.

The market is setting new valuations right before our eyes, and the only way to get top dollar is to put the property on the market and market it.  We may set a price higher than the last sale and the market may scoop it up anyway, and then some.  They key is attracting multiple buyers.

Best Way to Determine Market Value

May times a seller has a tenant or family member that wants to buy their home.  They get an appraisal to find out the value.  But is that really the value?  An appraiser is looking at yesterday’s value because all they can work with is what has happened in the past.  They do not consider what is happening today, and what will happen next week when we place a home on the market.

If you own a home and want to explore your options, call Sande or Brett Ellis at 239-310-6500  Our marketing is different, and we can show you how to maximize the sale of your home.  You’re going to need it where you’re going, so why not get it?

We can even help you with your next home.  Or visit www.SWFLhomevalues.com to get an idea of what your home is worth.  Our website will even email you your new price every month so you can keep track.

Good luck and Happy Home Selling!  Always call the Ellis Team at Keller Williams Realty for Top Dollar!

According to william pitt sotheby’s SW Florida home appreciation rate intensified beginning in September of 2020.  The official average single family home price in SW Florida was $391,168 and by February 2021 it rose to $486,406. That is a 24.35% gain in just 5 months.  It was slightly higher in January.

SW Florida Home Appreciation Rate

The median home sales price was $295,000 in September and rose to $329,950.  That is a 11.85% price gain in just 5 months.  For the year, average home price gains were 32.3% while the median was up 22.2%. The SW Florida home appreciation rate is very high.

As you can see, the average was up 32.3% but 24.35% of that all happened since September.  Median prices were up 22.2% in the past 12 months, with 11.85% of that being in the last 5 months.

We have been talking a lot about falling inventory levels, and at last check inventory has fallen yet again to the lowest level we have seen in decades.  Demand is strong which is causing prices to rise.  As prices rise, affordability shrinks. Back in early March we were reporting how home affordability was near an all-time high nationally.  That story is available on our blog https://blog.topagent.com In fact, all our articles are available on the blog dating back years.  The blog is a great way to keep up with how our market is doing over time.

Today home affordability is shrinking for two reasons.  Prices have continued to climb, and interest rates have risen.  Rates earlier this year were around 2.75%. Today they are about a half percentage point higher.  Rising rates are like a hidden tax borrowers must pay.  It raises the cost of buying a home, and you do not really get anything for it.  When you purchase an upgrade for a home you at least get something for it.  Not so with rising rates.

Will rising rates be the headwind that stops the real estate market in its tracks? We don’t think so, at least not in Florida.  It does take some fuel from the fire though. Affordability caps a market, so it can only appreciate so far unless you have a secondary home market where wages don’t enter into the equation as much.

Florida is blessed in that all kinds of people want to live here.  We have primary workers, remote workers, secondary homes, retirement homes, investment homes, etc. Demand is strong from all segments, and people are flocking to the area and escaping other areas.

We see demand remaining strong in Florida, but rising prices and rising rates do put pressure on home buyers.  Many buyers will be forced to settle for a home they do not love, but happy to be in a location they prefer over where they came from.  This may be a case where a buyer buys what they can afford now and rides the wave, propelling them to their dream home later.

In an instant gratification world people like to get what they want now. Historically people bought what they can afford and work their way up the ladder to what they liked later.  We may be returning to that model.

Many people are stunned to find out what their home is worth today.  If you have been contemplating a sale, you should call Brett or Sande Ellis 239-310-6500.  For those of you that have not thought about selling, let me ask you a question?

At what price would you sell your home?  What number would make you move?  When you come up with that number, call Sande or Brett.  Perhaps we already have a buyer in our database looking for a home like yours.  We might be able to make that Make Me Move number work for you.  Call us 239-310-6500.

Good luck and Happy Easter and Happy Passover!

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