This article is published on pages 94-95 of Space Coast Business Magazine, July 2008 Issue

Correct Pricing is Key to Selling Your Home

by Sandy Shores, REALTOR, M & M Real Estate Inc.

Today, in many parts of Brevard County home prices are readjusting to more realistic levels compared to the over inflated values in 2004-’05. In some areas, it could take anywhere from 8 to 12 months for the current inventory to be sold, provided that no additional homes come on the market.   But, new listings are being added daily.  In some areas, only 10% to 20% of the inventory is selling each month.  What is happening to the other 80% to 90% of homes that aren’t selling?  The listings are growing stale, sitting unsold and are eventually expiring.

Some sellers are placing their homes on the market at yesterday’s prices.  They have no choice, based on the price they paid in 2004-’05.  But, others do have a choice.  The home sits for a month, maybe two, with no showings and no offers.  So, the seller reduces the price. But, if he started too high in the first place, his price reduction may be futile. One or two more months go by, with few showings and no activity, another price reduction is in order. Is he too late?  Will his reductions move his overpriced listing? Probably not, because he is still behind the true value of today’s market.

Today, in Brevard it is imperative for a serious seller to price strategically in the “sea” of homes on the market. Our inventory is plentiful. Interest rates are still historically low and buyers are very savvy.  They are doing their research and shopping for the best deal.  According to the Florida Association of REALTORS, “It’s A Great Time to Buy in Florida.”  Check out the 20 Market Positives in at their website  http://www.floridarealtors.org/.

Owners that have been in place for five years or more are able to price their home realistically at today’s market values rather than 2005 prices.  These properties are moving quickly, as smart buyers are scooping up these competitively priced homes.   Some sellers have seen appreciation of 30%, 50% or even 100% depending on their specific location and the price point of their home. So, in selling, they are reaping the rewards.

On the other hand, some sellers say...price high...someone will make an offer…wrong!  The listing just gets lost in the collection of other properties on the market. Buyers won’t even look if it’s overpriced. No showings means no offers!

What is a serious seller to do?   In order to make their home stand out amid the mass of other properties for sale, it is imperative to price it 5% to 10% below today’s market value.  Remember, the house is competing with the current inventory of properties available for sale, in addition to the homes that are coming on the market daily.  If, in 30 days, there are no showings and no offers, don’t wait, it's time for a price reduction. 

In today’s competitive market, great location, curb appeal and condition are all definite assets in the successful sale of a property.  However, the absolute most important factor in selling a home is PRICE!