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Here in Melbourne, located in Brevard County Florida we keep hearing the same old story. Sellers are pricing high, hoping to sell for 2005 prices. Our local real estate has been experiencing a market correction. The market is adjusting for the over inflated home prices buyers were paying in 2005. But, some sellers are still hanging on to yesterday’s prices. Some have no options, as they bought at the peak of the market. Their alternatives are selling the home on a short sale, for less money than they owe the bank on the mortgage, or to let the house fall into foreclosure, thus damaging their credit.
Sellers that purchased prior to 2004, here in Brevard County Florida are typically in a position today to sell for more than they paid for their homes. Which after all is every sellers goal isn’t it? In reality, the purchase price of your home really has no bearing on what the home is worth in today’s market, anyway, contrary to what some may tell you. Your home is worth what a ready, willing and able buyer is willing to pay for it in today’s competitive market. And, well priced homes ARE selling today.
Some sellers are still hanging on to yesterday’s prices. Some are shooting themselves in the foot. But, today sellers are losing money on the sale of their homes. Some will say that’s because of the change in the market. No, I mean they are losing money on the sale of their homes, due to poor advice or in some instances, sheer stubbornness.
I know of a home here in Melbourne Florida that was listed for $350,000 about 15 months ago. This was the highest priced home in an area of similar homes. At that time it was worth about $315,000. I saw the inside of the home and it needed carpet and paint throughout. The seller made consistent price reductions, but the price always stayed too high for the current market. The seller sold after 15 months, after 15 months worth of utility payments, taxes, insurance, maintenance costs for $205,000! (His wife already relocated to another city, where she was renting an apartment.) He sold for WELL BELOW MARKET VALUE. He never painted, nor changed out the carpeting. The buyers knew how long the house was on the market, and they knew they had to paint and carpet, so they knew he would take considerably less money. If he had priced it properly at the time he listed it for sale, painted the interior and replaced the carpet his market time would have been shortened, considerably.
We hear and see similar stories to this one several times a week. These kinds of things shouldn’t be happening. Whose responsibility is this? Is it the owners? Is it the listing agent’s? This house had over 4 real estate companies involved. Did one of the agents tell him? This couple left $100,000 on the table, had they sold over a year earlier…WHY?
What a terrible shame! We can’t live in the past. We have to live in today, analyze today’s market, make sound marketing decisions, and move ahead. Currently, here in Brevard County Florida Real Estate, homes are not selling, today, for what they sold for yesterday. But remember, HOMES ARE SELLING, and smart sellers are moving their properties off the market, and walking away with money in their pockets.
