I WANT TO SELL MY HOME…NOT GIVE IT AWAY!
Last month we reported that nine of the top 10 declining home markets are in Florida, including the Cape Coral–Fort Myers market, which registered a decline of 6.7% in value year-over-year. Home sales in Whiskey Creek in 2024 were the lowest in five years.
If a homeowner wants or needs to sell in today’s market, they must be realistic about the price. The market determines the value. It really doesn’t matter what the owner paid or wants to get or what they have put into the home. To repeat, the open market, not the buyer, seller, or agent, determines the price.
When a seller contacts a professional Realtor, they expect that agent to know the market and help them establish a listing price accordingly. With that information, the homeowner sometimes says, “But I don’t want to give it away!” There is the dilemma. Do they position their home where the market says it should be, or do they try to ask for more? In today’s falling price market environment, if a home is priced too high, the market doesn’t catch up with the passing of time. As the market declines, the price reductions needed to get an offer become greater, costing the seller time and even more money eventually.
The result of this current situation is that some homeowners who would like to sell decide that this is the wrong time to sell and stay put. Some owners need or want another home for all the right reasons, but economic forces make it too expensive to change. This is exacerbated by the higher interest rates buyers must pay for a mortgage, further reducing demand. This creates pent-up demand and will eventually help change the market. However, history tells us that such a change may take a few years. Economists say that lowering the price is one of the best ways to increase demand. Developers selling new homes can often increase demand by offering below-market interest rates as well as attractive pricing.
Recognizing the current situation and accepting the consequences allows us to move on with life. Every decision we make can’t always be the best, but not deciding is seldom the best. One of the most important jobs of a real estate professional is educating the customer. The more knowledge a seller or buyer has, the easier it is for them to make the right decision. If you have any questions or comments about this article or other real estate issues, please contact Bob Oxnard at [email protected]
