Although it seems obvious to us as Realtors, the importance of pricing is lost on many sellers and possibly some Realtors who advise them. Our market in Lee County is packed with homes for sale in MLS which have no chance of selling. We did a small data sample of 55 homes, 30 active, 13 sales and 12 pending to illustrate this. By looking at a group of homes of the same size and age with the same basic amenities, we gathered some data.
Median list price of active listings (15 above and 15 below this center) $84950
Actual median sales price of sales since 9/1 $65000
Max sales price since 9/1 $84900
% of 13 homes sold which were priced below the median 100%
% of homes priced above median which sold 0%
% of 12 homes with pending contracts which were priced below median price 90%
This means that half of all homes, those priced above the median, had no chance of selling and if a buyer did write a contract, there is a very good chance the home will not appraise for a loan. It is a hard reality at times for a seller to accept what a buyer is willing to pay. A seller may hope that eventually buyers will run out of more competitively priced homes. The truth in our market is that as soon as homes sell added homes come onto the market either from banks or individual sellers. Of the 13 that sold, 12 either were on the market less than 6 weeks or had a recent price reduction including the time to get through closing. A good agent will counsel a seller of the true price at which they should offer their home if indeed they truly wish to sell it.
Steve Koffman
Broker/Associate
Century21 Sunbelt Realty, Inc
239-443-2463 Steve@koffman.com
Comments