Beating a dead horse usually involves a dead horse, a striking object of some type, a person who is delivering the beating and an observer that is probably in denial about what is happening. Feel free to pick your character in this act.
Sometimes I wonder if everyone has just grown used to the sounds of the thumping of the bat makes beating the dead horse. Other times I figure that new faces have returned to Bonita Springs and they missed the other dead horse articles about how appraisals work, how absorption rates work, why overpriced homes won’t sell and how if an overpriced home accidentally did sell, it wouldn’t appraise and make it to closing. It’s true. It’s all true and I’m here to help you work through the denial.
Folks, welcome to November and the official, bona fide beginning of our busy season in southwest Florida. If your Bonita Springs home is for sale or you’re thinking of capitalizing on selling it during the busy season there are some rules and guidelines you’ll need to stick to and I mean it.
First, they’re not my rules or guidelines. They’re the rules and guidelines of the industry of lenders, underwriters and appraisers. There’s nothing you can do to seduce any of them into accidentally finding more value in your home than it is actually worth. That goes for Bonita Springs real estate or anywhere else you’re trying to sell. They also don’t care what you originally paid for it or what you want to “get out of it”, either. They don’t care that you currently own more than one home and they don’t care that you owe more than you are going to have to sell your home for.
Second, don’t think for one moment that if a buyer shows up with a wheel barrel full of gold bullion that they would be stupid enough to pay cash and accidentally pay too much for your home. Gone are the days of buyers falling head over heals in love with a home and finding a way to somehow, somewhere get the money to buy it. There are still too many homes out there just as good, if not better and they’ll find one with a more attractive price and a reasonable seller. Buyers are doing their homework and they’re tough customers.
Third, if you interview four real estate agents and three of them tell you the right price to list your home and you pick the fourth agent who agrees to list your home at the exorbitant price you won’t sell your home this season.
You’re still playing games with the imaginary buyers that all of these excess homes were built for. You’re not winning, your debtors are. All you did was find a week enough link in the chain to feed your ego because you can’t believe your home isn’t worth what you think its worth.
I guarantee you’ll eventually find an agent either inexperienced enough or desperate enough to take the listing if you interview enough people. You’ll find someone careless enough to cloud the Bonita Springs real estate market with another overpriced listing that will be stale the instant it hits the market. When Easter rolls around you’ll complain and say, “My house was listed for the whole season and that … that horrible agent didn’t sell it.”
Sellers, here’s where I’ll remind you that when you point the finger of blame at someone, look down at your hand and see that there’s three fingers pointing back at you. Selling your real estate is business and you better get serious about it or you’re going to be standing on your front porch with inside out pockets come spring. You need to get complete control of your home’s valuation and pricing. Certainly rely on real estate agents and appraisers to get your home priced right but also demand the figures for inventory and an absorption rates for your area and style of home. If the people you’re counting on to help you sell your home can not do those calculations for you look down at your fingers again and figure out who should be finding someone who can figure it out.
What if, for example, there was four years of inventory competing for buyers against your condo or home. Would you honestly “try it a little higher and reduce later” if you knew you could be writing checks for four years? That makes about as much sense as asking your broker to peddle that stock you’re stuck with at a price “a little higher” than market just to see if there’s a sucker out there that can’t do math and doesn’t have CNBC.
Literally years have gone by with sellers and agents belly aching that their overpriced listing won’t sell. Well, if you keep doing the same thing to sell your Bonita Springs home that you’ve done for the last couple of years, don’t you think you’re going to keep getting the same results? Not pricing real estate for the current market and denying what is going on is like a little kid holding their breath until they pass out because they didn’t get what they wanted.
Maybe it’s time you sat down and figured out the real, current, right-now value of your home and how many years of inventory you’re competing with for the few qualified buyers out there. Don’t forget to calculate the holding costs from today until the date that the home may sell according to current rates.
It’s time to quit ignoring the reality of what has happened. Get honest with yourself and your situation or take your home off the market.
Real Life in Bonita Springs is a project by Chris Griffith dedicated to writing useful blog posts for consumers about the Bonita Springs, Florida area. Find out what it is really like to live in Bonita Springs, Florida by reading about our fair city. You’ll get the latest in local real estate information, Bonita Springs real estate market reports and a little bit of humor. If you have topic ideas, feel free to request a story about the idea, after all, this site is just for you.
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