This week I’ve attended 3 real estate coaching calls with over 75 realtors across the country discussing the #1 selling concern this summer – pricing properties right in today’s real estate market.
I heard over 6 hours of agents banging their heads trying to educate and show sellers the right price for their property. And there is a disconnect, or gap, happening everywhere.
In my essay last week, I showed how sellers may be back in charge of this real estate market and why. But for property owners who want to sell, you should be aware of the data and narrative. For example:
* In my coaching calls, we advised 4 agents to “fire” their seller as the gap between what they “want” for their property and what the comps show was too wide.
* The time it’s taking to sell homes in today’s real estate market remains high. In South Florida, the Days on Market (DOM) was up 8 consecutive months rising from 22 days to 55 days and is lingering near 55 days the last 3 months. On a national level the DOM looks similar:
* The Sold-to-List ratio fell 8 months in a row from 98% to 92% and isn’t budging the last 90 days.
* And as I wrote in this blog, the median list price is up 14% in the last 60 days, but it’s not converting into sales.
* And as I tweeted yesterday (link to my Twitter account is at the bottom of this essay), I’ve documented how many price drops I’ve seen this year, but in the last week I’ve seen over 20 price increases.
Are Buyers More Informed in This Real Estate Market?
On top of this information, more and more buyers are scrutinizing the price-per-square-foot data. They will see a property they like and ask me to show “comps” paying close attention to this metric. I must say, there is a high percentage of listings priced too far above market comps… and they ‘re not selling.
So, sellers must be cautious as we head into a pivoting market. Sure, you’re gaining momentum as inventory remains low. But if you price it wrong thinking the market is bullish and buyers will flock to buy your home… you’ll become one more DOM statistic, your listing will lose eyeballs and fade away.
Take a look at the image below. Now ask yourself if you’re able to price your home in the middle so you can make the best of this real estate market:
Build a relationship with your realtor and come to a mutual agreement about how to price your property right. Once you’re on the same page, you can work together and monitor results using the same metrics. If not, not only will your relationship sour, but if you’re not finding the number or quality of buyers… your listing will also go bad.
This is a real estate market to focus on the details… and align yourself with y our agent.
Today, the “wait and see” strategy is not effective. Pricing your property right is more important than ever. Don’t wait for the real estate market to change again… it may be like this for longer than you think.
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*** Photo above: aerial of Delray Beach looking straight down Atlantic Avenue.
*** The Florida homeowners insurance issue just got worse with Farmers Insurance Co last week saying they quit writing new policies. I address this critical topic in my recent video.
*** I found this article about Green Banks interesting. Clearly there’s a movement to more sustainable ways of doing business.
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*** Your Weekly Inventory Update ***
* 4 years ago there were over 54,000 properties available in S. Florida
* It bottomed in February 2022 at 14,485… a 73% drop
* Last week there were 27,445 available… a 102% rise in 17 months
* This morning’s Inventory is 27,450 .
*** Inventory is DOWN 22 of 25 weeks***
