When housing inventory is low, as it is now, sellers invariably believe that can get top dollar for their homes. This is especially the case in an area that is in high demand such as Boca Raton and pretty much all of Palm Beach County. However, if sellers want to get offers on their homes as quickly as possible, they need to be realistic about their home values.
According to the Redfin Real Estate firm, 26 percent of the Palm Beach County homes and condos for sale at the end of August had been on the market for at least six months. This seems odd for a high demand region where housing inventory is low right? It’s actually not odd at all if the listing prices are high relative to the prices of comparable properties that have recently sold.
I have to assume that a good portion of the obnoxiously high listing prices are from for sale by owner (FSBO) situations. These sellers obviously don’t have a professional real estate agent with extensive knowledge of the local market advising them. They think their home is worth 20 to 30% more than it actually is due to the factors mentioned above, and they list their home accordingly. In turn, they don’t receive any offers at all simply because potential buyers realize that any fair and realistic offer would be too far below the asking price to even prompt a negotiation.
Home buyers are savvy these days, especially if they have a REALTOR® working with them. If a buyer is interested in a home that is priced out of the market, a realtor would advise the buyer to simply wait until the inevitable price drop. As time goes by and sellers drop their prices once or multiple times to realistic levels that will entice offers, the buyer is now in a much stronger negotiating position.
In conclusion, if your goal is to quickly sell your home for the highest amount possible, ask a realtor for a free no obligation market analysis. Any realtor, including myself, will do it. Whether you end up hiring the realtor or not, knowing the true market value of your home will allow you to properly list your home and sell it in a much shorter amount of time.