Alison & Raul Elizalde

Sarasota Realtors

Alison and Raul Elizalde understand the Sarasota real estate market like nobody else. Their unique understanding comes from experience, specialized research, and deep community involvement. Their commitment to client service earned them the prestigious 5-Star Award given to the best real estate agents in Sarasota. Click here to learn more about Alison and Raul.

 

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A stronger season ahead?

A flurry of late January contracts still faces a swollen inventory

(By Raul Elizalde, 2/06)

Will this season be stronger than the end of 2005? So far the start has been slow, and where it is going is still anybody’s guess.

 

The bad news is that the inventory of properties in Sarasota continues to climb. On top of that, the number of sales is still declining, and the total number of properties under contract in all of January gives no reason for sellers to celebrate.

 

 

The good news is that 30% to 50% of the properties that went under contract in January did so during the very last week. Such level of activity, in particular for single family homes, is quite healthy and was the norm a year ago, at the peak of buying activity. If sustained, it surely would be a welcome development for residential sellers, who last month I described as facing a more precarious condition than condo sellers.

 

But underneath it all there is another, more anecdotal condition: many sellers appear to be unmotivated to sell at realistic prices. The thinking goes like this: “I am putting my property on the market at such-and-such price, and if someone wants to buy, I’ll sell. If not, that’s OK too”. It also goes like this: “I want to make money on my investment. After closing costs, I need to sell for at least X% above what I paid, and not a penny less!”

 

Although it is not possible to say what the ratio of unmotivated-to-serious sellers might be, this is a factor that I have discussed as a predictable consequence of flattening prices (“Last Call for Sellers”, January 2005).

 

Unfortunately, the surge of soft sellers clouds the waters for those who are serious about moving on. Not only do they bloat the inventory, but also skew prices away from what the market is willing to pay. Unfortunately, many serious sellers mistakenly seek guidance from listing prices, even if those listed properties aren’t selling, or if recent sales took place at lower prices.

 

Consider this example: I have looked at the average price of a 3/2 home without a pool and older than 1990. There are close to 100 of these more or less typical homes in central Sarasota – a square within Clark, I-75, Fruitville and Tamiami Trail. The current asking price is $233 per square foot. The selling price for the last six months? $177 per square foot, or 32% less!

 

What can serious sellers do to rise above the pack?

 

The most important step is to price properties correctly. In my view, the current inventory explosion has its roots in the surge of unmotivated sellers and investors wanting to cash out of an uncertain market. Both are unwilling to price their properties at what the market is actually prepared to pay. A property that is priced correctly will have the advantage.

 

To truly stand out, the crucial element is to attract the attention of agents and buyers to a well-priced property. If you want to know how we help our clients achieve that goal, please send us an email or give us a call for a friendly, professional, and completely confidential conversation.

 

When it comes to knowing the Sarasota real estate market, Alison and Raul Elizalde have the expertise to understand the value of a property and how to market it right. Our track record, added to the unsurpassed reputation of Michael Saunders & Company as the premier real estate company in Florida's Gulf Coast, give you the peace of mind you deserve, whether you are looking to buy or sell a property.