Currently, in some areas of the country we are experiencing a decline in home values. Many areas are undergoing market corrections, trying to correct for the over inflated home sales in 2004-2005.
In some areas we are hearing that homes values are dropping by $3000 to $5000 a month, or more.
Many sellers are placing their homes on the market at yesterday’s prices. The home sits for a month, maybe two, with no showings and no offers. So, the seller decides to reduce the price. Well, if he started too high, his price reduction in a declining market may be a day late and a dollar short. One or two more months go by, with few showings and no activity, another price reduction is in order. But, is the seller in fact, too late? Will his late price reductions move his overpriced listing? No, because he is behind the true value of today’s market. Will he ever catch up?
In some areas of Brevard County today, there is a 10 to 12 month supply of homes available for sale. This number does not include homes coming on the market, daily. In some areas, only 10% to 15% of the inventory is selling per month. So, what happens to the other 85% to 90% of homes that don’t sell? The listings are growing stale, sitting unsold, expiring.
Today, it is imperative for a serious seller to price strategically in the “sea” of homes on the market.
It's a buyer’s market, as the inventory is plentiful. And, buyer’s want a deal! Today, some owners that have been in place for 5 or more years are in a position to offer their homes at reasonable prices. So. buyers are finding those deals! Those sellers who purchased several years back, have seen appreciation of sometimes 30% to 50% or more in some areas (depending on their location and the price point of their home.) So, in selling, they are reaping rewards in our current market!
On the other hand, we hear some sellers say...price high...they’ll make an offer…wrong! They won’t even look at the home if it’s overpriced. No showings...no offers.
So, what is a seller to do? It is imperative that the day the house goes on the market, price it 5% to 10% below today’s market value. It will stand out among the mass of other home listings. Remember, the home is competing with the current inventory of homes already available for sale. If in 30 days there are no showings or no offers, then it's time for a price reduction.
The biggest factor to consider in selling a home in Brevard County today is PRICE!
