Bradenton Florida Real Estate News

Monday, April 23, 2007

84% of sellers just don't get it...prices are down

As many as 84% of home-sellers just don't get that prices are down. I see expired listings every day that may be as much as $100,000 overpriced in the $500,000 - $600,000 price range. But it's true for all price ranges.

Sellers wonder why their home has been on the market for months and months. Some have gone through several Realtors. Those recently entering the market wonder why there are so few showings and no offers. I've got the answer: IT'S PRICE!

I have two of my own investment properties under contract. One sold in less than 2 weeks. Why? Because I priced both the homes to be the obvious "best value". My team and I have sold 29 homes this year, because we are able to help our sellers select the best price and then our marketing plan takes care of the rest.

Here's and article about seller's thoughts:

Eighty-four percent of U.S. residents say home values will hold steady or increase, despite trends to the contrary, a nationwide poll published in the Los Angeles Times found.

Nearly a third of those surveyed this month predicted home values in their local markets would rise in the next six months, a Los Angeles Times/Bloomberg poll said. Only sixteen percent anticipated a decrease. The rest said values would hold steady.

The belief that home values will increase in the short term is missguided according to many industry experts.

"Mortgage credit is clearly tightening, affordability is not good and there are a record number of unoccupied homes for sale," said Scott Simon, a mortgage-bond fund manager for Pacific Investment Management Co. in Newport Beach, said in an interview with a Los Angeles Times reporter. "We think prices should be down a few percent this year and, if we are wrong, it will be worse than that."

Recently, the National Association of Realtors (NAR) reported home prices fell 2.7 percent in 2006's last three months.

NAR forecasted just this week that existing-home prices would probably slip an average 0.7 percent this year.

Sixty percent of the poll respondents also said a recession was somewhat or very likely within the next year.

Source: National Realty News


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