SW Florida home price decreases help sellers adjust to the changing market. Typically, sellers look at past sales when deciding what price to put their home on the market for. This system works well, unless the market shifts.
When the market shifts and inventory grows, past sales may not be the best indicator. We look at the totality of the market. By analyzing statistics, we can determine if past sales will be the best guide, or if another method is better.
Think Like a Buyer
Buyers don’t look at past sales, because they don’t have access to it. What buyers do have access to are competing listings, so they look. And they look, and they look. Buyers know the competition better than the sellers do. Seller’s hold onto past sales, and buyers look at current listings. These are two different things, and this is why some homes sit on the market and do not sell.
Home Price Decreases Help
11% is the number of homes on the market right now that have reduced their price in the last 7 days. This number has been remarkably consistent, ranging from 9.12% to 11.12% lately. 11% of sellers each week realize they overshot the market, and they wish to sell. They are doing something about it. Between 2-5.7% of the homes that reduced their price sell the week they reduce the price. This tells us that they either didn’t reduce enough, or it will go pending soon and just didn’t have enough time during the last 7 days.
Our team has a special form that helps sellers identify if their home is priced correctly on the market. Nobody wants to underprice their home and sell it too cheap. Conversely, we know the longer a home sits on the market, the less it eventually sells for. Time on the market is no good for the seller, because it means buyers have rejected it, and other buyers lose motivation when they see it sitting on the market for so long.
186 homes came off the market in the last week. They either expired, were withdrawn, or terminated their listing. Typically, this means they do not like the current market and have decided not to sell. For some, maybe it’s a temporary situation for the moment. For others, perhaps they tested the market and were unhappy with the results.
Pays to Know the Market
For us it’s easy, because we study the market. Our team has more data than anyone else because we track it. The MLS gives data at certain points in time, sort of like a photo. By creating spreadsheets and tracking key data points, we can see movement, like a movie. A picture can be deceiving, but a series of pictures, or movie, can tell a clearer story. Ellis Team clients have the benefit of the movie, so they can make better decisions, especially when there is a market shift.
Thinking of Selling?
If you’re thinking of selling, or perhaps tried before and weren’t successful, you should give us a call. We can go over exactly what is happening in the market, and how your home relates. Not every neighborhood is affected the same way. Computers aren’t very good at offering accurate home values because they don’t consider costs like homeowners insurance, flood insurance, HOA fees, and age of certain items. Brett and Sande can help you decide what your home should really sell for and devise a marketing strategy to get it sold before it becomes stale on the market and buyers lose their motivation. Give us a call at 239-310-6500. We’re easy to talk to and we can answer your questions, and help you move on your time frame.
Sell Your Home in 8 Days
We have a program to sell your home for Top Dollar in only 8 days. Watch our video to find out how we do it.
We look forward to speaking with you. Good luck, and Happy House Hunting!