Buyers are in the best environment in years, and this window of opportunity may not last long. (By Raul Elizalde, 5/06)
$30,000 Price Reduction in the Meadows!
Beautiful Sarasota Home~5% Co-Broke
VERY MOTIVATED SELLERS – BRING ALL OFFERS
Price reduced by $50,000.00. Motivated Seller
$ 5000 BONUS
Significant Price Reduction
PRICE REDUCED $15,000 FOR QUICK SALE
100K below developer price and 10K selling agent bonus
NEW PRICE AND 4% CO-BROKE
Price Reduction in Venetian Golf and River Club!
These are just a few examples of subject lines on e-mail flyers I received from other Sarasota Realtors on the first two days of May. As pointed out in previous newsletters, sellers are very concerned with the ability to sell their properties, despite the fact that sales are improving and more homes have gone under contract in March than at any point in the previous 9 months. But as a percentage of listings, sales remain very low at around 6% or 7%. Many listings end up expiring.
Interestingly, this low percentage is true across all types of properties. Condos or single-family homes, high- or low-end, all experience the same extraordinary level of competition. In my view, this points out to a market that has not fundamentally changed, but rather to a market that is building a moderate level of delayed demand. If this is the case, sales will continue to improve – as they always do – during the summer to levels close to their historical trend.
Therefore, oversupply rather than poor demand is at the root of sellers’ woes these days. And this is a boon for buyers. Read again the headings at the beginning of this newsletter. The fierce competition for a relatively small pool of buyers have forced sellers to reduce prices, shun discount brokers, and offer higher levels of compensation to full-service agents who get their properties sold. In fact, buyers are in the best position in years to extract even further concessions from sellers. But this condition might not last long if sales continue to improve.
Also, it has been my recent experience that many sellers, realizing that they are in a position of weakness, are choosing to postpone their plans to sell until the market improves. Those who can, opt to carry their properties; others opt to rent them out. As sales improve and listings decline to more normal levels, buyers might find that this window of opportunity may not last long. The time to buy is now.
Sales as % of listings, First 3 months of 2006
| All Sarasota Homes | 6% |
| Museum Area | 8% |
| West of the Trail | 3% |
Furthermore, some areas seem to experience more oversupply (relative to sales) than others. For example, the Museum Area seems to be turning over faster than West of the Trail south of downtown (see table above). This is very valuable information for buyers and puts them at an advantageous position in negotiations. Likewise, sellers need to know where they stand within their own market area for proper pricing and comparison.
If you would like to know more about how your home compares in your market, or want to buy and wonder what is the right offer to make in today’s market, please give us a call for a professional and friendly consultation.
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.
Call us today at 941-350-7904 for a consultation, and visit our website, www.SarasotaProperty.info, for monthly updates on the Sarasota real estate market.
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