Home and Condo Sales Fall

Posted at 6:09 AM, Nov. 23, 2006

Tampa Area Home & Condo Sales Fall in Third Quarter

The Florida Association of Realtors reports that home sales in the third quarter fell 43% from the same time last year and condo sales fell a whopping 46%,  Even with these statistics we are on course for the third best year of sales in history.

How can this be? The biggest problem is that so many investors bought up much of the new home supply in the last few years. Builders last year put a stop to much of the investor sales. Now the investors are all trying to sell at the same time, along with the normal sellers. The inventory of homes is more than four times higher than this time last year. Until the inventory gets absorbed it is likely that we will continue to have a buyers market. Lots of homes are selling. In fact this year there have been 16,934 residential sales year to date whereas last year at this time there were 21,993. Lower yes, but not terrible.

Sellers are often trying to get top dollar, while buyers are looking for bargains. The buyers we work with are now sitting and waiting until prices drop significantly. Unfortunately, know one knows if they will go lower or how low. This is a hard time to sell and a great time to buy.

How to Sell in This Market

When you truly want to sell your home, the market we are in requires a couple of items to get your home sold. These include;

1. Price - Pricing a home properly is 90% of getting a home sold. An overpriced home will not sell. For example in the 1,800 - 2,100 square foot range there are presently 347 homes for sale in the Wesley Chapel and New Tampa area. If your asking price is even a small amount above your competition, you may end up with no showings and no offers. Correct pricing is the most important thing a seller can do. Your Realtor can assist you in choosing the right price. Your home price must appeal to the buyers who comparison shop and quickly learn the right price.
2. Marketing - In 2005 there were often offers before a sign even went up in the yard. In 2006 a sign, a listing on the MLS and on Realtor.com are not enough. Top Realtors use much more to get homes sold now. This can include marketing the home on multiple websites, high quality flyers, mailings, networking, address specific websites, virtual tours, multiple photos online, home magazines, newspapers, and showcase enhanced listings and Featured Homes on Realtor.com. They also offer incentives to the 7,500 other Realtors in the Tampa area to show your home first. Realtors must spend money to get your home marketed properly. Top Realtors also realize that they must market to the 70% of Tampa buyers who come from out of the area, rather than just to the local market. The more potential buyers see your home, the more likely it is the home will sell. Find out how much marketing your Realtor provides. Interview at least two or three Realtors and compare their marketing plan.
3. Make your home easy to show - In the Multiple Listing Service (MLS) we sometimes see a listing our buyer likes, but in the remarks it says something like requires 48 hour notice to show or showings only on Saturday or Sunday. If the buyer is here from another state and leaves tomorrow, you may have just lost a sale. Often when a owner shows their own home, they work during the day and cannot show until the evening, however that may not be convenient to the buyer. Again lost sale. The easier to show the better and if the home can be shown on short notice or with no notice as in a vacant home this creates more buyer traffic.
4. Make your home a pleasure to show - The home should be appealing inside and out. If there is no curb appeal the buyer may never make it in the door.

Buying in This Market

Last year sellers held the upper hand but now in 2006 buyers feel in control. When buying go see several homes and pick out the ones you like and have your Realtor prepare a Comparative Market Analysis on the ones you are thinking of making an offer on. Realize that many homes are overpriced, yet there are many sellers that have their home priced right. Base your offer price on the approximate market value shown in the Comparative Market Analysis rather than just discounting the offer price by a certain amount. Buyers lose out on homes regularly when they offer way below market value. A properly priced home with great marketing will still sell quickly, but it is a great time to be a buyer!