Years ago we were the first to predict top agents would form teams similar to a baseball team to take better care of their customers. We fielded a team of Realtors because just as the pitcher cannot be expected to catch a high fly ball to center field, a Realtor cannot be at a listing appointment, install a sign, write newspaper ads, take pictures, show property to buyers and present an offer all at the same time.
Brett and Sande concentrate on pricing the homes properly (comparative market analysis) for the listing. We also negotiate the offers. Perhaps this is why our listings sell faster and for more money. We price them correctly and we negotiate well.
Buyers must see property on their time – days off, or after work, golf or boating. Buyer Specialists are available for the buyer seven days a week. They are experienced, knowledgeable and fun to work with. Thinking of buying or selling? Interview teams and single agents to see which best fits your particular needs.
We have full-time staff to help as well. Dale Peck is our marketing manager and he corrects all our photos digitally and makes our homes look good. We produce videos in-house, as well as our newspaper ads, yellow page ads, and more. If we want something change, we collaborate in-house and make it happen.
Ashley Johnson is our closing coordinator. She stays on top of our closings and coordinates with other agents, the banks, title companies, lawyers, appraisers, home inspectors, etc. We keep our closings on track. It’s hard enough to sell a home the first time, so we’d just as soon close it the first time too. We don’t want details slipping through the cracks. This can easily happen if you’re a single agent doing everything.
Vickie Frierson is our Listings Manager. She stays on top of your listing and keeps everyone informed. Communication is Big on the Ellis Team. Vicki obtains feedback on showings, notifies our sellers when and where they property is advertised, and checks on the properties. We want to make our homes show well online and in person, and Vicki keeps the process moving right along.
Hopefully after dealing with the Ellis Team you too will realize there are benefits of working with a team in real estate.
To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below
Fear of Obtaining Mortgage Holding Back Some SW Florida Buyers
Headlines the past few years have painted a bleak picture for those attempting to get a mortgage, and for good reason. After the downturn banks over-reacted and added several layers of verifications and procedures in hopes of insuring they wouldn’t face losses in the future or be forced to buy back loans from regulators. Mistakes were made by the government and banks. This held the recovery back, but real estate still found a way to recover.
Many do not know there are new programs out there and buyers can get financing today. For instance, persons who lost their home to foreclosure or experienced a short sale 3 or more years ago may qualify now.
There is a program for 1st time home buyers (anyone who has not owned a primary residence in last 3 years) that allows them to purchase a home for essentially $1,000 of their own money. They need a minimum FICO score of 640 and must not make more than $66,025 for a family of two and $69,600 for a family of three. A $10,000 2<sup>nd</sup> mortgage can be used at 0% interest for the down payment and closing costs. The property must be located in a federally designated target area.
Jumbo Loans Traditionally Jumbo loans in lee County were anything over about $417,000 We have a lender that now has the option of treating your loan as a jumbo loan at $250,000. They portfolio the loan, so they can use business funds as an eligible asset for reserves and as a down payment source, which is huge. The lender is able to take a common sense approach to the loan versus a hard and fast rules and regulations placed by the government.
While $250,000 doesn’t sound like a jumbo loan, it’s nice that a lender now has the option to lend their own money with different guidelines. They can do so with as little as 10% down.
We also know of a program whereby the buyer can pay cash for the home and then refinance and take cash out within 6 months. This is helpful when the buyer has cash but doesn’t really want to tie it up and is looking at a hot property. Many homes are selling with multiple offers and the cash offer often times wins because financing and appraisal isn’t an issue. Many homes are selling above appraised value because appraisers are looking at past sales and the market has been rising.
Credit scores are set to rise and credit agencies are treating medical debt differently than in the past. Some people will see their scores go up.
The reason many buyers have remained on the sidelines is because of fear. Fear of the process and fear they won’t qualify for a mortgage. We will be setting home buyer seminars to explain the process to buyers and have lenders look at your credit and tell you if it’s possible. Buying a home doesn’t have to be scary when you have someone holding your hand and walking you through the process.
Lastly, we have a way to lease-option a home so you can lock-in your home and move in before you own it. We have an investor that purchases the home on your behalf and leases it to you and there is an agreement that you can buy it anytime in the next 5 years for set prices. This is a good program for those with credit issues but know they can purchase in a year or two when their credit is better. It creates stability for the family, especially those with children looking to get into a school zone.
The bottom line is there are more choices now. Call us today at 239-489-4042 and see if buying a home is in your future.
To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below
SW Florida real estate market sales numbers for July 2014 were just released and as expected median and average home prices dropped from the previous month. They always do this time of year as the higher seasonal sales occur in the first half of the year. This does not mean prices are falling, rather it means the types of properties that sell changes in the 2nd half of the year which affects the numbers.
In fact, median sale price numbers are up 10.4% over last year. 2014 numbers came in at $179,900, up from $163,000 last year. Average sales price numbers rose 3.7% from last year. July 2014 numbers came in at $254,012 versus $244,852 July 2013.
2 Price Ranges Stand Out
We noticed two price ranges that really stood out for sales gains. The $300,000-$399,999 price range saw a 23.5% gain in sales in July over last year. This wasn’t the largest range to gain though. The $600,000-$999,999 price range saw a 48.5% rise in home sales in July, so there is strength in that price range right now. The $250,000-$299,000 was flat, but that is more attributable to the fact there isn’t much inventory in that range. If there was more inventory it would sell. Homes in that price range have graduated up to the $300k+ range and thus we’re seeing more sales.
Homes tend to graduate in a rising market. Remember back in 2008 and 2009 when we had lots of sales below $100,000. You won’t see that today as very little is available in that range due to rising prices.
SW Florida Real Estate Market Sales Numbers Rise
The number of homes closed also fell in July as it usually does. In June single family home sales were 1,213 and in July they fell to 1,042. This was however a 3.7% increase from sales levels last year. Again, as we reported several months back, we were seeing slightly elevated inventory levels and now we’re seeing slightly elevated sales numbers.
If we had more inventory we’d be selling more homes. More inventory is on its way if you know where to find it. Builders are pumping homes out of the ground at an increasing pace because prices have risen which has allowed them to do so. This wasn’t the case a few years ago.
The top builders have been making presentations to Realtor offices so the top agents should have a pretty good grasp of where the inventory is. Builders have been saving the day in some cases as buyers just can’t always find what they’re looking for with existing inventory.
There is some inventory that is available but if the seller prices it too high buyers sit on the sidelines or move over to new construction. Just because it’s a seller’s market shouldn’t be an excuse to overprice your home. No matter the market, the buyer has choices, and if you overprice your home you either help sell your neighbors home or a new construction home.
You can get an idea of what your home might be worth on our website at www.TopAgent.com Just click on the Find Out What Your Home is Worth tab. You can also search the MLS to look for a home, or see what your competition is. Either way it pays to be educated on the market if you’re looking to buy or sell.
There’s no substitute for talking with an expert though if you’re seriously considering making a move. Computers are useful tools, but a knowledgeable expert can guide you on things like financing, occupancy, zoning, insurance, inspections, and many other issues.
Feel free to call our team at 239-489-4042 and let us help make your move a reality. Good luck and Happy House Hunting!
To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below
It’s getting that time of year again when the tropics begin to heat up. The newspapers and TV stations do a good job of educating people how to survive a storm. We thought we’d give you our insights and tips from an agent perspective.
Remove for sale signs from yard. You don’t want that becoming a projectile in a storm
Purchase a Hi Definition antenna for your TV. TV stations broadcast over the air in digital format and Hi Definition. If you have a Hi Def TV you can receive these broadcasts over the air for free with $10 antennae. Mine has a 35 mile range and picks up stations from all over, including Sarasota and Tampa. Those old portable hurricane TV’s probably won’t work anymore as the standards have changed
If you have hurricane shutters, roll them down or slide them and lock into place and test them out. Over the years dirt, frogs, and other creatures can jam up the tracks. The time to work on these is before the storm
Be sure to go around your yard and look for loose items. Pay particular attention to your lanai and bring items inside that could blow around
Do not cut pool screens. It is true pool screens add resistance and could help bring down your cage in heavy hurricane force winds, but why cut them? You’d be better off removing spline and the screen and installing the screen after the storm. When you cut the screen you remove any chance of using it again
Park your cars against your garage door inside your garage. Experts will tell you this doesn’t work. Since your garage door may be the least protected exterior item on your home, I just don’t see how reinforcement behind the garage door could hurt. It’s no guarantee, but sometimes little things can help
Purchase a Sawzall, also know as a reciprocating saw. These are very useful in cutting down debris after a storm. We had one client take down his entire pool cage that had collapsed in Charley after the storm. Sometimes debris can block your exit to your home, so it’s nice to cut your way out if need be
Keep an axe in your home. Rising waters are usually more dangerous than high winds. If the waters were to rise, you might want a ladder and an axe. In Katrina people in New Orleans used axes to cut wholes in their roof from their attic. They were forced up in their homes due to rising waters. You’d hate to survive high winds only to drown in your own home
Buy lots of water-If the electricity goes out, you may not be able to count on having good drinking water
Fill up your car with gas ahead of the storm. Buying gas after a storm is never fun, and nearby stations could be out
We’ve created a Hurricane Tips Page on our website at Topagent.com with more tips. We’ll have an updated video you can watch on our YouTube Channel www.YouTube.com/brettellisfl with many more tips you might not think about. We’ve lived through and flourished through several storms, and we want you to as well. A storm doesn’t have to be as scary as it sounds if you prepare ahead of time.
If you stay, be prepared. The decision to stay or evacuate is yours. Listen to the experts, and know what you’re going to do before so you’re not caught off-guard. Be sure to visit our complete checklist with more tips online.
Good luck and have a safe hurricane season!
View our July 2014 SW Florida Real Estate Market Update
To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below
Changes are coming to the way property is shown in SW Florida. Gone are the days where agents call the listing office to setup showing appointments. This was an inefficient system as agents had to make phone calls to listing office, who had to in turn call seller, then call showing agent back to confirm. If one seller wasn’t available it could throw the whole showing schedule into chaos and start the process all over.
The way properties will be shown is changing for the better as the MLS has now gone to a Centralized Showing Service. Technically offices can still setup showings the old fashioned way, but once they see how the new system works they’ll quickly learn their sellers will be at a big disadvantage so they’ll want to join in the new system.
When agents view properties online in the MLS there is a button they can click on that will automatically setup the showing for them. If the agent sees 7 homes that meet their buyer’s needs, they simply select those 7 homes and request showings at a set time interval, i.e., tomorrow from 2-4 pm. They system will contact each owner and notify the showing agents which appointments are set along with a showing map for the route.
Since this will be automated sellers need to understand the new rules of showing real estate. Actually they’re old rules but with the new system it’s even more important. The more accessible a property is, the more it will get shown if it’s priced correctly. If the sellers reject showings as inconvenient, the showing agent will simply just show the homes they have approvals on. The rejected showings will miss out unless the buyer doesn’t like one of the other 6 homes.
With limited inventory, buyers are hesitant to wait, so they offer on one they’ve seen that meets their needs and is priced correctly.
The new system will handle alarm codes, gates codes, special instructions like handling of pets, etc. There’s even an app for the agent’s phone that will remind them not to let cat out or why a bedroom door is closed.
Sellers will have the option of receiving a tele-call where they can hit 1 for accept the showing or 2 for reject. Or, they can receive texts where they can accept or reject, or an email, or all 3. Once the seller accepts the showing agent is instantly notified, so setting up showings can take just a few minutes versus chasing listing brokers and sellers down for hours. Weekends were especially hairy if the listing office didn’t have personnel to handle showings.
The system has some interesting features. It can tell an agent which price range is receiving the most showings. This can be helpful in setting the correct price for a home if the home is on the edge of a price bracket.
The system also contacts showing agents for feedback and generates a nice report for our sellers. Tracking agents down for feedback used to be difficult but now the system will do it automatically and makes it easy on the showing agent to respond.
We look forward to sharing with our sellers the new seller reports, showing reports, and market statistics we’ll generate on showings. We can compare this to sold and pending data and spot trends as they develop. If the market takes a turn, we’ll be able to see if other similarly priced homes are getting showings.
This new service is a win/win for sellers and agents. Knowing the new rules and how to work the system can mean the difference between selling or watching all the homes around you sell while your home sits. Take the time to learn the system and make your home accessible.
Good Luck and Happy Showing!
View our July 2014 SW Florida Real Estate Market Update
To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below
Zillow-Trulia Deal Effects on Real Estate in SW Florida
The simple answer is probably not much. Zillow and Trulia are online portals meaning they take data from agents and brokers and display it to the public. This is nothing new as agents display the data as well on their own websites. Companies like Zillow and Trulia bank on the fact consumers will hit their site as they are nationwide versus agents who are in each local market.
Zillow Purchasing Trulia for $3.5 Billion in Stock
Zillow collects money from agents who pay to advertise on their site. They sell consumer leads to agents. Agents basically pay for views in a zip code, or to have their presence as a featured agent on certain listings.
In the past year Zillow has been raising rates significantly. So much so that agents are falling out and zip codes are becoming available right and left as agents decline to renew their agreements, so they look for new agents. I get calls weekly telling me zip codes are opening up.
Let’s say Zillow’s traffic increases in zip code 33919. Zillow sells chunks of impressions by the thousand, so if they find they have 3,000 more impressions in that zip code, they’ll sell 3,000 more impressions. Agents used to get overflow but not now. Zillow is diluting the lead generation and charging more for it.
If we used to pay about $400/mo for 10,000 impressions, Zillow has raised the ante. They call now trying to sell me 3,000-5,000 impressions for $800.
Zillow has a problem. They are raising prices and selling more impressions than ever before, but their net income is going the wrong way. In fact, revenue increased 70% while net income was a loss of 6.26 million last quarter.
So what does Zillow do, but up #2 competitor Trulia. I looked up Trulia’s financial situation and last year revenue was up 142% while their net loss was 11.1 million. So Zillow is purchasing Trulia for 3.5 billion in common stock. Both companies are losing money. How does this deal make sense?
Zillow says they can grow revenue and cut costs. Of course they mean they’ll cut employees. They intend to operate both businesses separately to try and generate more revenue.
If they raise prices too much agents will revolt. I predict they’re going to sell more consumer data to agents in segments. They’ll use more menu pricing whereby agents can purchase leads of sellers thinking about selling their home. If you fill out a Zestimate on their website, they’ll sell those leads. On Trulia if a consumer makes an inquiry on a home that lead info is sent out to multiple agents and it becomes a war as to who can hammer the consumer the fastest and most often to convert the lead.
We don’t think this is what the consumer is asking for when they go online. The consumer just wants information without talking to someone. They don’t want agents calling them hammering them with solicitation until they’re ready.
Consumers don’t like it when they’re information is sold. Agents don’t like it when they receive a lead and it’s also distributed to other agents. Real estate is a one on one transaction. It’s personal and about trust, and this business model doesn’t recognize that. It’s just money. If a consumer wanted to be contacted by lots of agents they could just signup on multiple agent websites. That way the consumer is consenting.
Zillow came to fame by providing home value estimates. In the beginning these estimates were way off, and still are in many cases. Agents and consumers alike complain that Zillow’s data is old and inaccurate. Zillow and Trulia obtain information from multiple sources and it’s not always accurate.
We provide home value estimates on our website. www.Topagent.com We also provide the MLS feed for searching the MLS. The difference is it is accurate because it comes directly from the MLS.
The other difference is we don’t sell consumer data to other agents. This is a big win for the consumer.
If agents spent the same amount advertising their own agent website that provides more accurate information as they do on Zillow and Trulia, that online business model would crumble. In fact it already shows signs of it as neither is producing a profit. As they raise prices on agents, agents may wise up and shift advertising dollars back to their websites, or sites like Realtor.com
You heard of the Internet bubble back in the 90’s full of online companies that had high valuation with no real net income. This could be Zillow and Trulia if they don’t find a way to turn a profit. They’ll try, and agents better be prepared to pay more. Consumers should be prepared to be bombarded. Whether this deal passes antitrust or not, these companies have to find a way to turn a profit. Wall St won’t continue to pour money in forever.
So if you’re an agent and someone asks you how the Zillow-Trulia Deal Effects on Real Estate in SW Florida
In the meantime, just remember Topagent.com in SW Florida. We won’t sell your data and you can search away. Then when you’re ready, call us and we’ll have a one on one conversation. That’s a novel idea!
Local numbers were just released and June 2014 single family home sales were up 8.1% over last year with a median sales price of $200,000. That’s up from $185,000 last year and up from $195,000 last month.
SW Florida Real Estate Single Family Home Sales
Average SW Florida home prices have been holding steady all year around $300,000, bouncing between $299,000 and $319,000. Median prices are definitely up for the year while average sale prices are level.
Listing inventory is falling as it usually does this time of year, however it is up from last year about 5%. This is a positive sign and indicative of a healthy market. There will always be a level of homes that never sell because they are priced too high for what they offer. Having more inventory creates visible competition for sellers. When prices outpace the market, buyers shut off like a hose spicket. We have not seen that, but there is invisible competition coming to the market some sellers may not be aware of.
SW Florida Real Estate Market Listing Inventory July 2014
We’ve been warning sellers for months that new home inventory is arriving. Builders have been ramping up and we know of many new homes coming to the market and available starting in September. These new homes will add to the inventory, but they won’t show up in the numbers. Sellers won’t necessarily know about them, but buyers will.
Nationally inventories are at their highest levels in over a year which is tempering price gains. We could see the same here in SW Florida heading into next year. What’s different in SW Florida versus the rest of the country is the economy. Locally we have positive driving forces. Companies are hiring and relocating here. Bringing higher paying jobs to SW Florida helps our median income. Nationwide, wages are stagnant which keeps a lid on rising prices.
Traditionally SW Florida fares well against the national real estate market, although it does affect us to some extent. Some people need to sell up North before buying here. In the past 7 years or so SW Florida trailed the national market, so it’s kind of refreshing to lead again.
Rising inventory is leading to increased sales. We always said if we had more inventory we could surely sell it, assuming it’s fairly priced inventory. If a home is priced over the market then it’s not really on the market. We wish there was an index of inventory levels of correctly priced homes.
Several years ago we invented the Current Market Index which accurately predicts home sales going forward. We’re working on a new index that measures inventory levels by price so we can determine how much of the current available inventory is actually on the market and how much is over the market and not truly available.
Next season buyers will have choices between existing homes and new homes built and ready for delivery. We’ll be watching to see if builders can keep up the pace with delivery homes versus building on contract for a buyer. The bottom line is this will cause sellers who wish to sell an existing home to be competitive.
Builders can offer a new never lived in home with new features, but they can’t always offer the same location. There will always be a premium for location, i.e. west of 41 and closer to the beaches. Many new communities are inland so the land costs will be less.
As always, if you want to sell you’ve got to price it correctly. Many sellers are choosing to sell and purchase something else that fits their needs better today. Interest rates are still low so it makes sense to do it now. When rates change, some sellers may not want to make the move because the new home will cost more to finance.
The bottom line is the SW Florida real estate market is healthy and more balanced and our economy is good. We’ll keep an eye on shifting forces and see which way it directs SW Florida home prices and by how much.
Good luck and Happy House Hunting!
View our July 2014 SW Florida Real Estate Market Update
To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below
We’ve been doing real estate a long time. Long enough to remember the days when we’d go down to the board office and pickup MLS books on Tuesdays where each MLS listing had black and white listing photos in a book. It’s hard to believe real estate was done that way even back in the 90’s.
Oh sure, agents needed at least one good photo of the front of the home for print advertising. Some agents didn’t bother taking more photos than the front. Then along came the Internet in the mid to late 90’s. MLS’s started accepting more photos of the home, and agents started posting the entire MLS on their website like we do at www.Topagent.com In fact, we were the first agents to put the MLS on our website back then.
New Listing Coming to Market in August by the Ellis Team
I was searching through listings the other day and I came across some really bad photos. Some were obviously shot from and iPhone because they had that narrow elongated tiny vertical picture you see, almost like a screenshot photo. Other photos had cluttered counter tops or garbage all over the place.
I don’t want to call out any local Realtors or sellers so I won’t display those photos here. I was just amazed that they’d put these photos online knowing full well that sites like Zillow, Realtor.com, Homes.com, Trulia, etc scrape that data and display these listings online, not to mention all the agents who display the MLS on their websites.
Bad Photo in MLS
Basically the world’s first and last impression of these homes is a series of crappy photos. With more buyers starting their search online, why in the world would they expect a showing from these photos?
We since stumbled onto a website called badmlsphotos.com Believe it or not there is a website dedicated to calling out sellers and Realtors for displaying bad photos online. Much thanks to Barry Bevis who runs this site for allowing us to use one of his photos.
The Ellis Team takes photography seriously. It all starts with hiring photographers who take excellent pictures. Some homes can be tricky with lighting, both interior and exterior. Having a pro can make all the difference, so we hired someone on staff with experience. In fact, we have two full-time employees on staff with photography experience. We also have a Photoshop expert optimize our photos for extra quality.
We created a website called www.HomesinHD.TV Basically it’s our homes shot in High Definition. We take professional photographs and edit them then combine them with full HD video and aerial photography. The result is a Hi Definition video we use to market each of our listings.
Not only are these videos available on our website, but the high quality still photos and aerial photos are available on national sites like Realtor.com, Trulia, Zillow, etc. We have the ability to place these photos into MLS so these aggregating sites pickup on our photos.
The photos your Realtor provides to MLS makes all the difference. Buyers today are deciding which homes they want to see based upon their impressions from photos. Many Realtors show homes online in their office and narrow down which homes their customers want to see. This is one reason why each showing matters and many times buyers buy on day 1.
Buyers today are more informed. They do their homework before contacting a Realtor. They’re more ready to make a decision. Just another reason why you don’t want to turn down showings and keep your home ready at all times, but that’s fodder for another article in the future.
Bottom line, hire a Realtor that takes photos seriously. Your sale depends upon it. The buyer takes them seriously, and so should the seller.
View our July 2014 SW Florida Real Estate Market Update
To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below
For Sale By Owners are at a big disadvantage and it’s not really the seller’s fault. There are several reasons why it’s hard to sell a home By Owner. The number one factor is Fear. Buyers have a fear about the process of buying a home and without an agent all those fears bubble up. They fear they don’t know the area as well as the seller. They don’t know the neighbors. Buyers may not know the schools, etc. They don’t usually know how to structure a contract, and they don’t know financing. Buyers have never lived in the home, but the seller has. Buyers feel at a big disadvantage, so their fear leads them to the second biggest issue, which is trust. Buyers become skeptical because they realize they’re not holding many of the knowledge cards; the seller is. The seller knows much more about the home and the neighbors than the buyer. There isn’t an agent as a go-between so there is a lack of trust. This lack of trust is born out of fear.
Pitfalls of Selling By Owner
When you have fear and lack of trust, any potential transaction is shaky at best. The seller has fear and trust issues too. The seller also does not understand financing, insurance, etc. The seller is fearful that the buyer may not be able to qualify or is telling them the whole story. There is no agent to verify certain facts, so the seller must ask the tough questions themselves. Buyers don’t like to divulge confidential financial information to the seller as they would a seasoned professional like an agent. Buyers trust their agent; they don’t trust a seller they don’t know. The seller doesn’t trust a buyer they don’t know, and there begins the cycle of distrust, which elevates fear. Buyers and sellers don’t negotiate with other buyers and sellers everyday, all day long. The questions they do ask come across as personal, so they get evasive answers. Buyers and sellers treat each other at arms length because they know whatever they say could be used against them in the course of negotiation. Some buyers and sellers get cute and try to Buffalo their way with the other side. Even if they are better Buffalos, the other side typically reads they’re not getting the whole story. Complex issues arise in a transaction. Inspection issues can be sticky, not to mention insurance, survey, financing, HOA, and past permit issues, to name just a few.
For Sale By Owners Net Less Money at Closing
Recent studies have shown For Sale By Owners sell on average for 12% less than what a Realtor gets for a home. The only way a buyer would buy a For Sale By Owner is if they can save the commission and buy it under market. If they have to do all the work themselves and face that fear on their own without the help of an agent, they better get a bargain. However, the reason a seller wishes to sell By Owner is to also save the commission. Both the buyer and seller cannot save the same commission. If the seller is going to take the time to show it, advertise it, make signs, place ads, and pre-qualify each buyer they better get more than fair market value for their efforts. They must fight bank appraisers and they have nobody in their corner if they get a bad appraisal. They just lose another deal. So if sellers get on average 12% less for a home, why would they try on their own? A leading For Sale By Owner company CEO recently sold his home through a Realtor. If their company is so great, why did he resort to hiring a Realtor? Every seller wishes to maximize their bottom line but selling By Owner isn’t it. If it was easy everyone would do it. Not only is there a cost to taking less, there’s also a cost for losing deals and selling it over and over. And doing it all yourself can get discouraging. Buyers and sellers are also emotional. They don’t have a 3rd party intermediary keeping things real. Facts and logic get blurred and they can convince themselves of almost anything. If you’re thinking of buying or selling, do yourself a favor and hire a good agent. You can do it right the first time, or do it the hard way and try on your own. Hey, you might get lucky, but then again, it could turn out badly. It’s your choice. We don’t see a lot of FSBO’s today but they will always exist. We hope this article helps you analyze your options. Good luck and Happy House Hunting! View our July 2014 SW Florida Real Estate Market Update To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below Visit our Google+ Business Page Feel free to view our Virtual Tours . By Brett Ellis Fort Myers Real Estate Agent 7910 Summerlin Lakes Dr Fort Myers, FL 33907
New sales numbers are out for the SW Florida real estate market and we’ve been pouring over the numbers and we’ve come to the conclusion that sales are directly related to the amount of inventory on hand. We can’t sell what we don’t have, and if we had more we could sell more.
Perhaps a better headline would be sales are directly related to the amount of fairly priced homes on the market. In any market, up, down, or sideways, there are always fairly priced homes and overpriced homes. The fairly priced homes sell in any market, and the overpriced homes fail to sell in any market.
Median Days on Market by Price Range
SW Florida Real Estate Market Update
The median sales price fell in May to $195,000 from $200,000 in April, but it is up 10.6% over May 2013 levels. Inventory rose slightly to 5,540 listings which was up 6.3% over last year. Each month new listings come to the market and some are selling, and some are not. Pending inventory fell 10.9% from last year, so we’ll keep an eye on inventory rising and pending inventory declining in the coming months.
I’d like you to look at the two charts provided. They may look confusing but it’s really not. One is the median days on the market by price range and the other is the months supply of inventory chart. The difference is the months supply of inventory takes into account all single family listings to give you an idea of how much is on the market.
Months Supply of Inventory Chart
The median days on the market by sales price chart only looks at homes that actually sold, not all listings. These are the listings that have won the home selling game. If priced correctly, a home will sell, and these homes did. In other words, if a home is going to sell, these are the median average times it will take. If you have a home on the market you can lookup what price range you’re in and see the median time. If your home is over the median time, perhaps your home is overpriced and isn’t going to sell.
That’s a tough pill to swallow when you read headlines that say the market is improving, and there are multiple offers on many properties. This is all true. However, there aren’t multiple offers on all properties. And some properties receive no offers.
It doesn’t matter how good the market is, nor how much marketing your Realtor throws at your property. If it’s overpriced, it’s not going to sell.
Cash sales have fallen to 52% of all sales, and this time of year they typically fall further. Financed sales must appraise, and we have seen some appraisal issues on properties lately.
If your home isn’t selling, it’s time to have a conversation with your Realtor about proper pricing. The seller may set the price, but the market determines the value. If your home is over the market, then it’s not really on the market. If you wish to sell you’ve got to price your home at or close to where the market is. Some sellers don’t really care if they sell, so they continually keep their home over the market and if a buyer comes along and pays more than market, they’ll sell. We’ve all seen these listings. They just linger on the market and make all the fairly priced homes look good. They get fewer showings and few offers, because serious buyers offer on fairly priced homes first. They don’t waste time offering low on overpriced listings. Buyers go for value, and overpriced listings don’t offer value.
This is probably the biggest mistake we see sellers make. They assume buyers can always make an offer, but they don’t. Many times the overpriced home is invisible to the buyer because it’s over where they’re looking.
We don’t suggest under pricing your home. Just price it fairly and you’ll be glad you did. Good luck and Happy Selling!
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