Last week we wrote about sellers in SW Florida who have had their home on the market this season and their home hasn’t sold.  We talked about market activity and closing statistics as well as the latest pending stats. In that article we mentioned one sentence that elicited responses from readers “We have a graph we send our sellers that shows typical showing activity.” This week we’ll focus on the question, is your price on target?

We have a lot of information we send our sellers that educates them on how the industry really works and how best to sell their home.  We don’t normally share all this information with the public, but in this case we’re going to share the pricing target graph.

Is Your Price on Target

This graph is based upon research and showing data over many years in many markets.  We know that the seller sets the asking price and the market determines the value.  Over time the market speaks to us.

Some sellers place their home on the market and receive lots of showings, while other go on and receive little to no showings.  Is the market speaking to you?  Perhaps this guide may answer some of those questions?

If you are getting showings but no offers it generally means you are in the range 3-5% above market value.

If your number of showings is low and you’re experiencing a lot of drive-ups but the buyers don’t come in to see the home, your home may be 5-10% overpriced.

If you aren’t receiving showings at all, then your home is likely priced 10% more above what the market will bear for your property.

Many sellers say things like “Well, we can always come down but you can’t go up”   , or “They can always make an offer”.  The reality is buyers don’t make an offer when a home is overpriced.  They make offers on other homes that are priced correctly.  Many times they don’t even view the overpriced listings because it’s not what they’re looking for at that price.

Overpricing a home hurts a seller two ways.  Legitimate buyers in that range are used to seeing other homes that offer more than yours.  When they view yours, it just doesn’t measure up, so they will never buy it.

The actual buyer for your home never sees it, because it’s not on their radar screen.  It’s priced above where they are looking.  So you miss the mark 2 ways.  Sellers that overprice never had a chance.  So when we hear things like “They can always make an offer” we know that they won’t be receiving that offer.

A lot of sellers call us blaming their crappy real estate agent because their home hasn’t sold.  It may not be your agent’s fault.  Have you listened to your agent and had the pricing discussion?

Now if your agent suggested a higher price and never communicated with you how your home is stacking up against the competition, you might have a point.  Many times it’s the owner who wants more than what the agent says, or they Realtor shop until they find one that agrees with them.

You’ve heard of Doctor shopping for pills.  That’s a bad thing, and so is Realtor shopping for an agent that will write you a price prescription.  That prescription never works and can do you more harm than good.

Our suggestion is call a good Realtor who knows the market.  You may not like the medicine he/she recommends, but a bitter pill only last a few seconds while taking the wrong medicine can hurt for months or years.

Plus, we live in paradise.  Life’s too short not to move on and get what you want.  When you overprice you delay your goals.  You’re not moving on to where you should be.  You’re trapped in your current circumstance, just because you wanted more than what the market would bear.  That’s usually an ego thing.  It’s human nature.  We all do it.  The real question is, are you going to let ego and greed hold you back?  Some people do and they regret it for years, and some accept the market, take their medicine, and live their dreams.

If you’re looking for a Realtor that will tell it like it is, call us 239-489-4042.  Our marketing is pretty good, and chances are we can get you where you want to be if we work together.  You can search the MLS at www.LeeCountyOnline.com

Good luck and Happy House Hunting!

This Week’s Featured Listings

31 Lagoon St

Luxury Waterfront Home seconds to the river
Seconds to the river and just minutes to work in Downtown Fort Myers

 

 

 

 

 

 

 

6087 Waterway Bay Fort Myers

6087 Waterway Bay Fort Myers

Lee County Florida real estate cash sales fall 23% in September 2015 and that’s a good thing.  We said several years ago one of the signs of a recovering economy is infusion of capital.  We’ve been watching a fairly steady decline in cash sales for the past few years.  Back in the doldrums of the market reset cash sales accounted for about 70% of all sales. Lee County Florida Real Estate Cash Sales Fall

Investors came in with cash and bought up everything they could at rock-bottom prices.  Cash was good because back then banks were nervous about lending.  Today banks are encouraged to lend again and prices are nowhere near rock bottom, so buyers have less competition from flippers and long-term investors.

Competition is still fierce for properties and inventory is limited.  It’s just not concentrated at the low end of the market like it used to be.  These are all signs that the SW Florida real estate market has recovered and on solid ground now.

In fact, median days on market is down to 34 days in September, a 10.5% drop since last year.  If you look at the graph, drops of 20% or more have been common this year versus last year.

Lee County Florida median days fallWe have a rising market in prices and because more deals are financed it presents a new set of challenges.  Appraisals are commonly an issue in rising markets, and with low inventory sometimes there aren’t comparable sales in the same neighborhood to compare against.

Also, in a rising market, each new sale stands the chance to set the bar higher, and yet appraisers struggle with how to account for this.  Appraisers are excellent at looking in the rear view mirror to substantiate prices.  The problem is, the rear view mirror helps explain where the market has been, but does little to justify where it is and where it’s going.

When the market was headed south, appraisers were quick to use a time value adjustment because prices were falling.  We believe they need to use this on the way up as well, and some do.

We’ve also seen an increase again in out of town appraisers.  We’ve fought this before.  One tactic agents would use would be simply to decline to make the home accessible when an out of town appraiser called.  You could hardly blame the Realtor for slow-playing access because more appraisals were screwed up by appraisers who were not from here and did not know the market.

If an appraiser failed to do the appraisal in a timely manner, it would be assigned to another appraiser, hopefully one in town.  There is a rule that appraisers should be familiar with the market but it doesn’t always bear out.  We’re not blaming appraisers.  We still blame the Dodd-Frank Act and many of its stupid rules.  Dodd Frank needs to be repealed and more practical rules put into place.

Hiring an experienced Realtor to work with you when buying or selling is essential.  It’s a beautiful thing when experienced Realtors work together to make a smooth transaction for their clients.  We love working with other agents who know what they’re doing.  The consumer rarely knows if their agent is good, but they find out later when things go bad.

Make sure you ask probing questions when selecting an agent.  Are they full-time?  How do they handle such things as code violations, permitting, defective drywall, septic systems, and inspection and repair items?  Do they have a list of contractors they can recommend?  How many homes have they sold in the last 5 years? The answers to these questions may help you decide if your agent knows how to get you out of trouble before you even get in it.

The market is up.  Listings are hard to find but new ones are coming online everyday at www.LeeCountyOnline.com The database is updated every 5 minutes from MLS.

You can reach us at 239-489-4042 if you’d like to buy or sell in SW Florida.  Good luck and Happy House Hunting!

November 2015 Future of Real Estate market Update

View our Latest Cape Coral waterfront Listing

View This Cape Coral Waterfront home on Instagtram

River views with pool-Featured Property of the week.

 

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