Tampa Real Estate Blog

A home's value may not be its selling price.  What I mean is, it is possible that one could sell their home for less than it is worth.  This happens all the time - even in situations where the seller does not need to sell to prevent or resolve financial or other crises.  The reason: an anxious real estate agent, who doesn't understand the concept of marketing as a value building tool, advises the seller to sell for a price that is lower than the homes worth.  An alternative could have been more effective negotiation... But an even better approach would have been, right from the beginning, using effective marketing strategy to build the home's value, so that buyers are anxious to pay more for it.  While many know these words, very few really understand how to implement this concept.

The strongest negotiating position for a seller is one where the buyer fully realizes, and accepts as true, the value of what the seller is offering.  Although I try not to blow the Pretty Dog horn in this forum, I do feel that I'd be remiss if I didn't mention that Pretty Dog Realty specializes in marketing strategies that build a property's value, which enables the seller to sell for the highest price, and in the quickest amount of time.  Isn't that what every seller wants?

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Tampa, FL - If you are waiting for the market to 'bottom-out' before buying a home, you may be surprised at what I am about to tell you.  If you shnooze, you could lose!

Many folks believe that waiting is the best strategy right now.  That might be a prudent approach in some markets.  But as bad as the media has made things sound, things are not that bad - especially here in South Tampa.

I recently saw a nice, large, 3 bedroom townhome with a 2 car garage in a great location on Davis Islands.  While it needed some new carpet and paint (it had recently been painted but the color was... well... ugly), and it was an older unit, it was otherwise in great condition, its Homeowners Association is strong with low monthly dues that included insurance, and it was priced accordingly at $350,000 - a very fair price for this unit.

Some might say, "No rush, the market's slow. We don't have to do anything right now. If we wait, we'll get a better price."  Well, they'd be wrong.  And, they could have had their cake and eaten, too!

This particular townhome sold very quickly - about a month - and for an even better price, just under $320,000, which was an price amazing for this unit, even in today's 'slow' market.  Other units in this complex have sold for far more within the last few months so it was highly unlikely that waiting another 6 or 10 months would have yielded a better price, if it were lower at all.  It's possible that it could have been higher.  Seller's motivations can change - a new job or a raise are just two examples.

The point here is: Fairly priced, good homes will move quickly in South Tampa, especially in the high demand areas, even in today's market.  As such, waiting is not always the best strategy when you can negotiate a great deal today.  If you like a unit, negotiate your best deal and buy it.  Otherwise you may lose the opportunity and a similar one might not come along.  However, if you're not in 'love' with the property, waiting may be a good strategy, but it could backfire if you decide to buy it.

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Tampa - Those interested in high-end, luxury homes need to know that, sometimes, the asking price of these homes has not been determined by a logical formula, such as a true comparative analysis of the prices of recent sales, or the asking prices of similar homes in the neighborhood.  Many times, there are just too many variables for this sort of precise, logical analysis, which means emotionalism can enter the picture.  This should be considered carefully before buying or selling such a home.  Otherwise, one could pay too much, or sell for too little.

Here's the problem.  Luxury homes can have exotic floors, such as imported woods and marbles, as well as expensive cabinetry and finishes, like paint, moulding, appliances, and even better doors used on bed and bathrooms.  Additionally, some homes are on the water, some have 'access' to the water, and some have amazing views.  It is very difficult for a homeowner to take all these things into account and, naturally, they want to sell for the absolute highest price.  In fact, it is also difficult for the Realtor, and even the appraiser to accurately account for all these factors.  This is because most of this information isn't accurately available in the usual places one might look, such as an MLS listing or the tax record.  One would have to actually walk through the home to be specifically aware of all its upgrades, and many times that's not possible.

So, trying to fairly price a high-end home can be tricky.  Did the home down the block sell for all that money because of its location alone?  Or, did it also have something else going for it, like an imported, hand carved, Brazilian wood Floor, and Solid Gold Hardware on the kitchen cabinets?

The sad truth is there are times when some of the money spent on overly expensive upgrades, finishes, and appliances will probably not be recovered when the property is sold.  That's a tough one for the owner to swallow.  But they should try to realize that some of the return on their investment came from the joy they experienced while living in the wondrous space they created.  Conversely, those whose homes have 'average' finishes, but are located among homes outfitted in an above average way, should realize that just because the place next door sold at a premium, it doesn't necessarily mean that theirs can, too.

The moral of this story... When buying or selling in the luxury market, choose your Realtor carefully!

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