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Ft. Lauderdale Realtor Dave Stump Ocean View Int'l Realty 954-560-2030 |
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Setting the Sales Price of
Your South Florida Home or Condo
written by: David Stump
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You can pretty much name your price when selling property in Ft. Lauderdale. Real Estate is HOT in south Florida!
Property values have appreciated between 20 and 30 percent per year for the last 5 or so years and there doesn't seem to be
any end in sight. Before deciding on how much to ask for your property, it is very important to ask yourself "how quickly do I want to sell my property?". How closely you price your property to fair market value will determine how quickly your property will sell. Fair Market Value (FMV) is the price that comparable properties have sold at in your neighborhood (preferably on your street or building) in the last 6 months; adjusted for any differences in size, amenities or condition of the property. If you are in need of a quick close then I would advise pricing your home, condo or business at fair market value. If you are reasonable with your asking price and are pricing at FMV then you should expect a solid contract within 30 days or less with the correct marketing of your property. If you are in no hurry to sell your property, and your property has been exceptionally well maintained, you could price your home 5 - 10% over FMV and expect a potential buyer to accept your price within a 60 day period. If, however, your property has not been maintained and is in need of repairs and updating, adopting this pricing strategy is a bit unrealistic and will probably waste a lot of folk's time and effort. Pricing your property well above FMV (20 - 30% over FMV) is just plain greedy. You might as well wait a year for the market to catch up to your pricing expectations. A prospective buyer will not be able to obtain financing without 50% or more down and then you are faced with finding a buyer that doesn't mind paying over fair market value. These types of buyers are few and far between. Generally speaking, if you are interested in selling your property in a reasonable amount of time, I recommend pricing your property at FMV plus 5%. This will allow for room for negotiating price, repairs and any allowances that might come up in an offer. Remember, buying and selling property should be a win/win situation for both the buyer and the seller. When either party feels better about the deal than the other party, you can expect problems getting your contract to close. When I accept a listing from a seller, I always prepare a thorough Comparative Market Analysis and carefully go over every aspect of the report with my seller. Ultimately, it's the sellers' property and they can ask whatever price they want for their property. It's my job to make certain that they fully understand the ramifications of their pricing decision and leave them with realistic sales expectations. |
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