sellers market - Orlando and Clermont Real Estate

How to Negotiate the Highest Price in a Seller’s Market

You’re selling your house and the timing is perfect…It’s a seller’s market! You’ve listed your home and have several interested buyers. You’re certain you can get your full price offer, but can you leverage what you have into an accepted offer that is… above the list? Perhaps three percent, even five percent or more above the list? You sure can! Here’s how you go about it:

1) Be easy to work with and very helpful. Buyers tend to be willing to negotiate with sellers whom they like and are eager to help. Your agent should answer all questions quickly and thoroughly.

2) Be proactive and communicate openly with all buyer agents who have scheduled showings to date. Your agent should be encouraging as many people as they can to write an offer on your home. Your agent will let every showing agent know that your property is gaining tremendous interest and that if an agent has shown yet to do it quickly so their clients don’t miss out on the opportunity to write up their offer. Your agent will also call and email each showing agent to ensure they get the message.

3) Suggest a selling price that is way too high. This means your agent will use the power of suggestion to drive up the bidding price on your home by sharing with buyer agents how they’re surprised by the overwhelming interest in your property and that they wouldn’t be surprised if it goes for higher than list price.

4) Justify a price that is way too high. When your agent is conversing with the buying agents, he’ll share good reasons why they should write a strong offer.

5) Provide a status update to all parties once the first offer comes in. Your agent will once again call and email each showing agent to inform them how much time they have to make an offer and then encourage as many offers as possible because, with each additional offer you receive, your power to negotiate price goes up.

6) Negotiate and accept a secondary offer. Do this once your primary offer is accepted. This is a great tactic for your agent to use in case your first offer falls through. If buyer number one is informed of your solid plan B in the works, they’re more likely to do what it takes to get things finalized. A good example would be that they’ll probably not quibble about anything that shows up on the inspection, for instance.

Of course, this can all only be done with effective marketing and proper pricing in the first place. Good marketing and a proper price will draw the buyers in. Then it’s up to your agent to advocate your best interests and communicate effectively to potentially sell your home for well above list price. Ready to get listed and sold? Call me today!

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Buyers Are Not Going to Make Offers on Overpriced Listings

Buyers Are Not Going to Make Offers on Overpriced Listings

If you are thinking about pricing your home for sale above market value, buyers are not going to make offers on overpriced listings. One thing for sure, real estate market is HOT!! It’s sizzling. Some areas are experiencing low inventory with high demand that’s causing home prices to go

up, especially in the affordable price range. What is an affordable price range you might ask? Well, that truly depends on where you are in the country, in Clermont FL area, the affordable price range is just middle of the road, between $200,000 and $250,000. That number will look a lot different if you are in NY or Los Angeles.

If you are in a hot seller’s market with high demand and low inventory with increasing home prices month after month, you might want to list your home for sale above the fair market value and hoping buyers will make offers on an overpriced listing.

BUT…Guess what? Buyers are not going to make offers on overpriced listings. Just like home sellers, buyers also study the market, most are working with knowledgeable REALTORS® who are guiding them through the transaction. Besides, their search criteria will most likely be within their pre-approved mortgage. If they are approved to purchase a home up to $250,000, they will not be looking at homes priced at $300,000 hoping sellers will come down. Just like home sellers, they know it’s a hot market and homes that are priced right will go under contract fast so they’re not even going to waste their time looking at homes outside of their price range.

If a buyer tells me they’re looking to buy a home in Clermont FL priced up to $250,000, my search will be slightly over their pre-approved price. If I send them homes that are priced well above their range, they will think I’m not listening or have no regards for their wishes. So your strategy of overpricing and waiting for buyers to make offers isn’t going to work.
Yes, as a REALTOR®, if my buyer client likes the overpriced home, I will encourage them to make an offer and will definitely speak with the listing agent prior to submitting it, however, it’s up to you, as the seller to either accept or make a counter-offer which will show the buyer how motivated you are to sell your house.

What if your REALTOR® suggests listing above market value? Why would they do that? Do they really know the market? Are they trying to win you over so you would list your home with them? Do you have the time to participate in this game?
As a REALTOR®, I don’t have the marketing dollars nor the time to play games. I list homes to sell. List and see what sticks doesn’t work for me, never did.

Everyone’s motivation is different, however, most home sellers list their homes to sell. To accomplish that goal, it’s best to do everything right from day one. That includes getting your home in show ready condition, working with the right REALTOR® for the right reasons and most importantly, pricing it right.
As a professional, I come across overpriced as well as underpriced homes for sale. Those that are overpriced will either expire or see a major price reduction after a long marketing time. The ones that are underpriced will hopefully generate multiple offers and sell over list price.

Do Buyers make offers on overpriced listings? That depends on the area and competition. Remember, real estate is very local so what happens in Los Angeles isn’t very common in Clermont FL. Instead of wondering, it’s best to price your house to sell.

If you are a Clermont FL homeowner thinking about selling your home, I would love the opportunity to speak with you. Call or text me at 407-929-1852 for a FREE market analysis. Clermont FL home prices have increased 11% compared to last year. Your home may worth more than you think.

The Market Has Cooled Off, What Does This Mean for Buyers and Sellers?

It’s an interesting market around the Orlando area right now. As of the publishing of this post, we are in a neutral to cool market in many places and individual communities but, we are seeing a big difference from one micro market to another. Places like Clermont Florida might be great where other places such as Mineola or downtown Orlando might be a cooler market.

Right now the average home price in Orlando is about $165,000 but that varies greatly depending on the neighborhood or community we are talking about. We are leaning toward a seller’s market but it is by no means a hot market. A cooler market leans more towards buyers, meaning that there are more homes on the market and prices have come down. A hotter market leans towards the sellers, meaning there are fewer homes on the market and with a combination of more buyers, prices will naturally increase. The home value index for Clermont is about $232,000 and we are leaning toward a seller’s market. But, in many places around Orlando, we are seeing a cool off in a lot of the market areas.

So, what does this mean for buyers and sellers?

It’s hard to give you a hard and fast rule or advice when it comes to buying or selling because the market is so volatile in so many different communities. We don’t really have a blanket market across the Orlando area so depends on where you live or where you plan on buying.

If it’s a hotter market in your area you can tend to price on the higher side. However, it also depends on how quickly you want to sell. If you’re planning on selling and moving within a short amount of time, it’s important to price just lower than your closest competition. Take a look at how much you really need in the form of profit, your closest competition, what’s currently on the market and what has sold in the last three months. Because the market fluctuates so dramatically from month-to-month, getting research from the past six months is just not going to be as accurate. If you have time to sit on the market you may price it at market value and depending on how hot that market is, you may actually get escalation clauses or multiple offers but, I urge you not to overprice your home as this can backfire, making the homes sit on the market far longer than ever expected.

If you are buying, it’s important to look at the area in which you’re buying. Every community, neighborhood or small town around Orlando has a different market. If the market is leaning toward the buyers, find out why. Ask your real estate agent (or myself) about the general trend in that community. If homes sit on the market a long time or there something wrong with either the construction if it’s a new development, prices have dropped grammatically or there some external factor that’s causing prices to drop, this might be your chance to either get in at a lower price or stay far away depending on the factors involved. Some developments may be looking at new construction close by, which could be harming existing resale homes while other communities are increasing in value because of construction either due to modern commerce being put in or more conveniences such as Starbucks, Trader Joe’s or Whole Foods.

So, it’s hard for me to give you inexact answer to this question because the market is so different from place to place. If you’re looking to sell give me a call today. Feel free to contact me and give me your address and what you’re looking to get out of your home and I can give you some rough estimates as to what your home might be worth and how quickly it could sell.

If you’re planning on buying but are new to the area or just don’t have any idea where to start, give me your criteria and price range and what’s important to you in a home. I’d be happy to send you a list of plausible homes and properties that meet your price point and your needs.