Market for defining supply and demand
SATURDAY, OCTOBER 30, 2021 |
Inventory is the dominant factor in the Sarasota area. However, it’s important to note that as low as stocks are in the Sarasota real estate market, conditions appear to be stabilizing and even (still) improving slightly.
Over the past three months, I have noticed that potential sellers are choosing to wait to list their properties. Their strategy, and one that I tend to agree with most of my advice, is that affluent buyers are usually not in our market in late summer and early summer. fall.
Instead, these sellers wait for the peak tourist season to kick in, our seasonal residents to come back and begin their research for their next move, and for the arrival of our European buyers who have been absent from our pool of buyers during the most of the last two years.
For my clients who bring in their real estate market, the hectic pace our area has seen over the past year makes it hard not to be overconfident when pricing their homes. With purchase prices close to 100% of list prices recently, it’s understandable that a seller would want to price their property “optimistically” and above recent comparisons in their community.
However, I believe the smart move for most homeowners is to stay competitive and allow buyers to come up with their highest and best offer.
Is a full price buyer enough? Occasionally. While I don’t know the actual stats for the Sarasota, United States area, the average number of offers an existing home receives today is 3.8, according to the National Association of Realtors. And a recent report from CoreLogic showed that almost 6 out of 10 homes are selling for above asking price.
Being an active advisor to buyers and sellers in the Sarasota real estate market for almost 40 years has given me the experience to guide buyers with a critical and analytical approach. Knowing the market the way I do gives me the chance to advise my clients with a clear understanding of the realities and helps set reasonable expectations and ensures that we approach each offer with the buyer’s goals first.
In fact, in this “auction-like” environment, in which demand continues to be unwavering and supply remains well below inventory levels to meet that demand, it is easy for buyers to panic and fret. potentially rushing to make a desperate offer.
My buyers are starting to understand that while they may not find their “ideal” property right now, they are broadening their search criteria and even choosing to buy something to live in now, knowing they will appreciate it. This gives them time to wait for the good they really want to market.
These savvy buyers are often rewarded if they live in our market, are able to see the property in person as soon as it is known to be available, and move faster and with confidence, which is more attractive to sellers. when they accept multiple offers. .
I have seen in these cases some buyers being lucky to find the home of their dreams … and in others, buyers terminating their contract after taking the time to fully assess the condition of the house, its location. or other key factors. My advice is to breathe and listen to your real estate agent!
In most cases, not only do we know the properties intimately, we also know the agent representing the seller and can offer our buyers essential information and schemes to achieve their goals.
Michel Moulton has been a real estate agent with Michael Saunders & Company since 1982.