JACKSONVILLE, Fla. –
A growing share of properties sold in Florida sell, only after the seller cuts the asking price. Miami leads the nation in both the size and frequency of such deals. Tampa, Orlando and Jacksonville are in the top 10.
Why list higher than your home needs to be. A huge negative no doubt! The longer it’s on the market the more questions a buyer may have. I learned a long time ago that “homes that upgrade too much are called properties with a diminishing return.” This means the neighborhood does not support the value put on the home.
We have so many attractive features in North East Florida, Especially St. Johns County. A fair market value placed on a home is key to success for the seller, the buyer, and the brokerage. We have more assets than any other county in Florida. Our Sales Tax is only 6.5%. We have the best rated schools in Florida. Florida Power has the lowest Electric fees of any area in Florida. Example, “An average 2700 Sq. Ft. heated home averages $110.00 a month. Can you beat that? Nocatee in Ponte Vedra has two large water parks, and currently building their third. These are just a few elements that are attracting folkes to our area. Yes I’ve heard the phrase, “It’s what the market will bear!” Is this fair to our clients, this is a question as a Realtor you better be prepared top anser.
According to Bloomberg, Miami is hurt by a pullback of South American buyers. A total of 88% of single-family home sales in the first quarter came after a reduction.
Nearly 80% of Jacksonville homes sold at a discount, and on average that price cut was 4.94% below the original asking price. I’ve been preaching this for sometime now.
Florida also has second homes, seasonal rental homes, which tend to suffer in housing slumps. Many real estate experts say the current market favors buyers.
National Association of Realtors report in February 2019 findings indicate at 2.3% job growth. I’ve been sharing these stats for sometime now. See another comment from a Realtor specializing in income properties.
I’ve experienced a boom in investment rentals over the last few years and many of them are asking top dollar for rents. I can identify apartments in the Town Center in Jacksonville, Duval county and Many in St Johns County are experiencing a boom in higher end large apartment complexes. Lots of investors putting together these projects.
My experience also tells me that once these rentals are at 80 to 90% capacity, they will sell to corporte investors. Developing that cap rate conquers the developers goals and builds enourmous returns.
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No surprise, 9 “nine” homes listed by competitive Realtors, or Teams have progessivley reduced the asking price as much as 10% or $35,000! How can we manage to close on a property that an Appraiser’s findings do not meet the contract price? Give me a call and we can discuss some amazing ways. My track record speaks for it’s self.
I have reached out to eight (8) sellers in Del Webb recently. I predicted the experience the sellers would have in the first 90 day of activity! In the past 60 days,11 homes have made price adjustments, aka (Reduction in asking price)!
So, before you list your home with another Realtor or a team that boasts they have the most educated team, better resources, most successful sales results, this may not always apply.
A quick story, in my last community a Realtor was selling homes like he had a magic wond for succes. The reality, the values for neighboring homes became apperant. A nose dive in local values plummetied. I had a buyer come in and was ready to pay cash for the asking price of a specific home! I set the appointment and the next morning at 7 am I was told it was pending. I thought there was something strange, so I follow the activity. Three (3) weeks later it sold for $30,000 less than the asking price, the listing agent brought in a buyer! I was furious and made it my quest to increase the values in our community after that sale. The first few listings, I received HOA violations, either the homeowner was in violation or something I was not correct in the marketing. Needless to say once the community understood the politics was not in the best interest in the property values, the president lost re-election and values begun to rise. In two and a half years I made a difference, and helped many families in desperate need to net as much as possibe, I made it happen!
I’m an analytical guy, and when there is a challenge that I don’t fully understand, I WILL disect and challenge the results.
There is no doubt in my mind that once this is published you will see creative dialog become modified with active listings or active accepting back up offersl. Unless these listing agents are too lazy to accommodate their clients. I have Realtors throughout the United States follow my blog updates weekly.
Why are many homes taking so long to sell? Perhaps it’s in the marketing techniques and strategies. I’ve been selling real estate since 2000. I’ve been creating Marketing campaigns for Developments, Retirement communities, Realtors and businesses since 1984. What makes a successful campaign for all of these elements? Filling the needs and wants of the consumer.
Keep in mind “Any time a buyer can walk into a house and see it already has the features they want, that’s a huge bonus for the seller! “If buyers feel they need to add key features or designs, they’re going to calculate how much it will cost and then lower their bid.”
Buyers are looking for a community that offers Theater facilities, a gym, Tennis and pickle ball courts. Pool’s, Bocce, gardening facilities, security features. Gated security communities cover these demands. I have not seen Realtors market special amenities a club house offers like a Sauna, Steam room, whirl pools to mention a few. With the new Smart ADT, Xfinity, and other security companies that offer these features are less meaningful and much cheaper and more efficient.
Del Webb has defined two markets in the area. A price point between $450,000 and $650,000 with Chef’s Kitchen/Gourmet kitchen, Quartz counter tops, Three-car garage and open floor plan, exterior lighting, home office, and perhaps an inground pool, however I have not seen this investment give back the return for the expense it takes to install.
A price point between $220,000 and $330,000 location a premium. The reasoning for this price point, buyers want to live in a Del Webb community but like their 2nd home, or perhaps travel a lot in their RV. This is noted well in the Tree Side community as these garden homes are selling faster than they can build them.
Another tidbit that many Realtors who are not seasoned should know as well as buyers and sellers. When you see a listing still active and your told it’s pending, it maybe noted Contingent Taking Backup. This gives the listing agent leverage to receive addtional inquires and buyers. It helps the listing agent keep their name out there with active inventory that is not necessarly available. Please understand this is not always the case but I’ve learned it’s practiced more often that not. My Multiple Listing Service in Central Florida prohibited this practice about two (2) years ago and it has made a huge difference.