How to Sell Your House

[SHELLY]

From Fort Walton Beach Mullet Wrapper.

'If you want to sell your house, you have to lower your price,' realtor says
KARI C. BARLOW
2007-04-06

We hear it every day. Northwest Florida’s housing market is stabilizing, returning to normal, slowing to a more reasonable pace.

But what does that really mean? Especially for folks whose “For Sale” signs have started to grow moss? Or the newlyweds hoping to find a deal?

It means, says broker Richard Bell of Beach Bell Realty, that your price had better be right and your patience intact.

“If I’ve got $400,000 to spend on a house along the Emerald Coast, I’ve got so many choices,” Bell said. “It’s all about price.”

According to data from the Emerald Coast Association of Realtors, in the fourth quarter of 2006 it would have taken 19.3 months to sell the entire single-family home inventory in the area. It would have taken 54 months to sell all of the condos on the market.

“If you want to sell your house, you have to lower your price,” said Bell, who is based in Atlanta and has experience selling real estate in Northwest Florida. “Everybody’s got the bells and whistles, but price is that underlying equalizer.”

Early results from the first quarter of 2007 back up his claim.

“We’re seeing a lot of activity on houses that are priced right,” said Ray DiTirro, a Realtor with RE/MAX Southern Realty.

In the fourth quarter of 2006, the average list price for single-family homes was $413,302, and the average sale price was $385,973. So far in 2007, the average list price for single-family homes is $370,594 and the average sale price is $342,064.

When it comes to condos, the market is equally, if not more, crowded, Bell said.

“There’s a huge amount of condos out there,” he said. “We’re overbuilt, there’s no question about that. We’re waiting for the blood to flow.”

Many condominiums are finally receiving their certificates of occupancy, but Realtors are uncertain about buyers showing up to close the deal.

“There are a lot of people who are just walking away,” DiTirro said. “They do their cash-flow analysis and they say, ‘It’ll cost me less to walk away than to carry this condo.’ ”

[Bob]

Shelly, When someone finally accepts one of your lowballs, will you lighten up?

[sberry123]

Shelly, When someone finally accepts one of your lowballs, will you lighten up?

Here is a nice little e-mail from one of the owners at a condominium where I own a unit. I can see this persons' point if there were one or two sales a month at the Grand Caribbean in Orange Beach Alabama. The problem I have with this persons' e-mail is that the last condo sold in July of 05! Yes, it sold in 2005 for much more, but that was 20 months ago! I think everyone at this complex should be happy. The stalemate between what the seller is asking and what the buyer is willing to pay has been broken. Sure, I personally do not like to see $100K of paper gains go out the window, but that is life! In short, I agree with the article that Shelly posted and reality is backing this up.



"
I would like to thank owner of 417" NOT"

Is this the new going rate for our condos? Why did this owner screw the rest of us by lowering our property values?"

[30A Skunkape]

From Fort Walton Beach Mullet Wrapper.

'If you want to sell your house, you have to lower your price,' realtor says
KARI C. BARLOW
2007-04-06

We hear it every day. Northwest Florida’s housing market is stabilizing, returning to normal, slowing to a more reasonable pace.

But what does that really mean? Especially for folks whose “For Sale” signs have started to grow moss? Or the newlyweds hoping to find a deal?

It means, says broker Richard Bell of Beach Bell Realty, that your price had better be right and your patience intact.

“If I’ve got $400,000 to spend on a house along the Emerald Coast, I’ve got so many choices,” Bell said. “It’s all about price.”

According to data from the Emerald Coast Association of Realtors, in the fourth quarter of 2006 it would have taken 19.3 months to sell the entire single-family home inventory in the area. It would have taken 54 months to sell all of the condos on the market.

“If you want to sell your house, you have to lower your price,” said Bell, who is based in Atlanta and has experience selling real estate in Northwest Florida. “Everybody’s got the bells and whistles, but price is that underlying equalizer.”

Early results from the first quarter of 2007 back up his claim.

“We’re seeing a lot of activity on houses that are priced right,” said Ray DiTirro, a Realtor with RE/MAX Southern Realty.

In the fourth quarter of 2006, the average list price for single-family homes was $413,302, and the average sale price was $385,973. So far in 2007, the average list price for single-family homes is $370,594 and the average sale price is $342,064.

When it comes to condos, the market is equally, if not more, crowded, Bell said.

“There’s a huge amount of condos out there,” he said. “We’re overbuilt, there’s no question about that. We’re waiting for the blood to flow.”

Many condominiums are finally receiving their certificates of occupancy, but Realtors are uncertain about buyers showing up to close the deal.

“There are a lot of people who are just walking away,” DiTirro said. “They do their cash-flow analysis and they say, ‘It’ll cost me less to walk away than to carry this condo.’ ”

[JoshMclean]

Well, at least we know how to sell a house now. Just drop the price until someone buys it. I think 2 bohemians has a couple of buyers that would be perfect!!

[kurt]

Well, at least we know how to sell a house now. Just drop the price until someone buys it. I think 2 bohemians has a couple of buyers that would be perfect!!

That has always been the method.

[JoshMclean]

I can show you several good buys in our current market that are priced well and haven't sold yet. There are not enough buyers in the current marketplace for everyone to just drop all the prices. Many areas are still overpriced and a lot of sellers do need to get in touch with the current market conditions. I understand that the chances of selling are much higher if you are priced correctly.
Buyers are coming back into the market at a good pace, but it will still take a while to eat up this inventory even if everyone is priced correctly. Of course, if you want to sell at 60% of your home's value...you'll probably find a buyer.

[Beachbummett]

We sold a unit at One Seagrove Place, closed in the middle of March. We got what we wanted, being fortunate to have bought in 6 or 7 years ago. Was a great investment and we were able to do what we needed, we wanted to put that money in our new house in Watersound, which is what we had always planned to do.

The kicker is...at the end of the month units in the same building sold for $40K more and another sold for $50K more. We were not upset we got to do what we wanted when we needed to do it. I'm sure the new owners of the unit are very pleased! That unit was listed for less than 10 months and we had already turned down three other offers on it.

Is part of it not as always...location, location, location? Those units at OSP were always had great rental income too. Do you think part of the selling point there could be the rental income history?

[JoshMclean]

Rental history can always be a great selling point to an investor. Investors love to see good documented rental history if that's what they are purchasing for.
If you got what you needed out of it so that you could get what you really wanted, that's great!

[SHELLY]

There are not enough buyers in the current marketplace for everyone to just drop all the prices.

I don't see it as a chicken-or-egg thing....I see it as a price THEN buyer thing.

Buyers are coming back into the market at a good pace, but it will still take a while to eat up this inventory even if everyone is priced correctly.

Meaning "priced correctly" as not to attract a buyer?

Of course, if you want to sell at 60% of your home's value...you'll probably find a buyer.

That's 60% of what you think your home's value is based on your purchase price and what the guy next door sold his for sometime last year.

.

[SHELLY]

"
I would like to thank owner of 417" NOT"

Is this the new going rate for our condos? Why did this owner screw the rest of us by lowering our property values?"

Here's a reply:


Dear Condo Neighbor,

You had the opportunity to buy that condo for 100K more than the current selling price in order to keep our property values up--but you did not!....it's you who screwed the rest of us by lowering our property values.

PS: You might want to check the elevator cables on your next ride down.


.

[JoshMclean]

Our increased prices were not the only factor that has kept buyers away. I don't think that mass panic and throat slashing is needed to get them back.
This price readjustment is much needed for the future health of our area in my opinion. I'm sorry the bubble didn't pop quite as loud as you would have expected
I'm not disagreeing that lowered prices opens your house up to a wider buyer base. Of course a lower price will always help sell a home, but it's not a cure-all. Only time will take care of the large inventory that is currently available.

[SHELLY]

The kicker is...at the end of the month units in the same building sold for $40K more and another sold for $50K more. We were not upset we got to do what we wanted when we needed to do it. I'm sure the new owners of the unit are very pleased! That unit was listed for less than 10 months and we had already turned down three other offers on it.

If you bought your unit several years ago and realized profitable rental and appreciation ...and the other folks who sold for $40-50K more purchased in the last 2-3 years, I'd say you trumped them anyway.


.

[JoshMclean]

Here's a reply:


Dear Condo Neighbor,

You had the opportunity to buy that condo for 100K more than the current selling price in order to keep our property values up--but you did not!....it's you who screwed the rest of us by lowering our property values.

PS: You might want to check the elevator cables on your next ride down.


.

I am not sure what this is in regards to. Although, I do disagree with sellers who get mad at other sellers who sell too low. I think it's silly to think that you can dictate the market in that way.

[SHELLY]

I am not sure what this is in regards to. Although, I do disagree with sellers who get mad at other sellers who sell too low. I think it's silly to think that you can dictate the market in that way.

It's in regards to post #3 above.

BTW...What's up with all the posting? Aren't you tending to an open house today from 9am - 1pm? Are the snacks worth a look-see?


.

[JoshMclean]

They were delicious! I'm stuffed

[SHELLY]

They were delicious! I'm stuffed

How'd it go?


.

[JoshMclean]

2 couples that were out driving around came through. No serious lookers though. Gave me plenty of time to Sowal!

[SHELLY]

2 couples that were out driving around came through. No serious lookers though. Gave me plenty of time to Sowal!

What are the HOA fees out there?


.

[Mango]

Glancing through the thread from bottom up, it appeared you were stuffed Josh from eating the onlookers.

[Smiling JOe]

That has always been the method.

I think you meant to say that has NOT always been the method. Remeber 2004. If it didn't sell, everything around it was selling, and as the sales prices increased, so did the list price on the house which had sat there for four months. After the people realized the prices weren't coming down, they jumped on the house at the higher price. Fear controls sales. It is either fear that people will not be able to buy into the market or fear that they cannot get out of it. As quickly as a light can be switched off or on, the market can shift.

[Smiling JOe]

... Of course, if you want to sell at 60% of your home's value...you'll probably find a buyer.

I thought a home's value was the price at which a buyer is willing and able to pay to purchase it. If that is the case, it wouldn't be 60% off of the home's value, though it might be 60 % off the list price.

[JoshMclean]

$225 a quarter Shelly.

[SHELLY]

$225 a quarter Shelly.

Dat's pretty cheap considering the size of the cee-ment pond!


.

[JoshMclean]

I thought a home's value was the price at which a buyer is willing and able to pay to purchase it. If that is the case, it wouldn't be 60% off of the home's value, though it might be 60 % off the list price.

I would say a home's value is dictated by what comparable homes are selling for. A buyer may be willing and able to buy a home for $100, but that does not make the home's value $100.

[Bobby J]

Good thread....I feel the market is moving along fine. Price it right and you will get a buyer. I have a file full of pendings to prove it.

[Smiling JOe]

I would say a home's value is dictated by what comparable homes are selling for. A buyer may be willing and able to buy a home for $100, but that does not make the home's value $100.

Caught me on that one. Should have said that the market price is the highest price which a buyer is willing and able to pay for the property or comparable property under normal conditions.

[Smiling JOe]

Good thread....I feel the market is moving along fine. Price it right and you will get a buyer. I have a file full of pendings to prove it.

Looking at the sales for single family detached homes and condos for March, I would say you are spot on.