5 Truths For Tallahassee Sellers in 2012

1. Prices will probably not rise in 2012. Economists predict foreclosures and distress sales will be a major part of the market until after 2013.  Home prices are driven by supply and demand. Housing demand increases when wages, employment, and household formation grow. None of these things are consistently growing in Tallahassee right now. Meanwhile, the Tallahassee supply of homes far exceeds demand. With the continued flow of distressed homes coming on the market, the supply is not shrinking like we need it to. As long as there is an imbalance between too much supply and too little demand, prices will fall, or at best, remain flat.

2. You need to price your Tallahassee home to compete with distress sales in your neighborhood. In past times, neighborhood values were not impacted by the infrequent foreclosure. Now, with a continuous supply of distressed houses that make up over 25% of all sales, these homes have become “the market.” Sellers need to price accordingly.

3. If you don’t price it right, waiting to reduce your price will leave your home unsold. “I’ll just wait for the right buyer to pay my price” does not work. In today’s declining market, an overpriced home is left behind. If 5 buyers view and reject a home as it’s priced, it’s unlikely buyer number 6 will view it any differently. Buyers are remarkably consistent in their estimation of price and value.

4. Buyers will make you pay dearly for that old roof. Or that ancient refrigerator. Or the old green carpet. Buyers don’t want to shell out cash for new items right after purchasing a home. If your Tallahassee home needs a new $5,000 roof, buyers will demand a $10,000 discount on price. Why? Buyers often overestimate repair costs. They’re afraid something unseen might come up during repairs. They want compensation for having to take care of the work themselves. It’s just as easy for them to find another home with a new roof. The “move-in” ready home will always fetch the best price.

5. The value of your Tallahassee home has fallen about 20-30% since the peak of prices in 2007 depending on your location. Value can’t be determined from a neighborhood sale 2 years ago. Recent sales and homes currently on the market are the best indicator of market value. Not all neighborhoods have declined equally, but no area has been untouched. Condominiums have been hardest hit. While it looks like the big declines are behind us, prices are not rising and future increases will likely be slow.

Want your home's value?  Need to prepare your home to sell?  Call us at 850.445.2476.