We all dream a lot. Fancy cars, exotic vacations, not having to work again and making lots of money. If you're trying to sell real estate you own, do not look for the last dream to be fulfilled. It's not going to happen.
Sellers have their property priced too high. I'm not saying give it away. I'm saying be realistic. Let's say a seller has his or her property for sale at $1,000,000. No buyers. The priced is reduced by $50,000. I will tell you this, that reduction will do nothing to enhance the sale of the property.
The reason is simple. The entire market is priced 15 percent to 20 percent over where the prices should be. The numbers bare the truth. Interest rates are very good now - 6 percent to 6.25 percent for a 30 year fixed and they have been at that level for awhile. Now here is the proof of the proverbial pudding. In 2006, sales in our region fell from 35 percent to 40 percent depending on to whom you speak, but the median price held steady.
With low interest rates and a fairly good economy, that tells me buyers think the market is overpriced and are waiting for the big reductions. You want more lousy pudding - digest these numbers:
Condos active in the MLS from 12/01/06 to 01/25/07 in areas 476, 477 and 478 - 770; active with contract - 36 with 30 closed in this time frame. For single family homes, the actives were 192; active with contract - 4 and sold - 7.
You might want to consider a price check!
Next week I will explain how to do a short sale if you're in over your head and have to sell.
Ric Cornelius is the Broker/Manager of Sand Key Realty Sales and Rentals, Inc. Sand Key Realty has three offices with 40 agents. One office is at 740 S. Gulfview Blvd., Clearwater Beach, 727-443-0032; the second office is at 2701 Gulf Blvd., Indian Rocks Beach, 727-595-5441; and the third office is at 309 Belleview Blvd., Belleair, 727-461-4200.
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