Realtors marvel at the cognitive dissonance that we hear every day from potential home sellers in the Tampa Bay region. The conversation usually starts like this: “I know the market has gone down and this might not be the best time to sell, but my home is really special…can you tell me how much my home is worth?”
While it is not true for everyone, an amazing percentage of people read the headlines while still clinging to the notion that their personal home is worth about what it was a few years ago. Somehow they alone are exempt from the decline of values. Some homeowners even feel insulted when a Tampa Realtor shows comparable sales data indicating a substantially lower value than expected. In response, they might be tempted to blame the messenger; and they might not believe the data - happens every day.
The first honest Realtor through the door often takes the blame, and does not have a chance of obtaining the listing. Then a few days later, another Realtor walks in the door and propose a higher price in order to make the seller happy and obtain the listing. The second Realtor wagers that the homeowner will eventually come to their senses and reduce the price months later. “Wow, I just liked her better, she was a breath of fresh air, she said we could get an extra $50,000 for our house. Let’s go with her”.
In the meantime, the home’s value continues to decline in value each month by 1-2% while accumulating “days on the market”. After the listing expires, the home owner might call the first Realtor and say: “Why wasn’t my other Realtor honest with me? We lost 6 months and prices are down by 10% now. I wish I’d listened to you.”
There are many Realtors will tell homeowners what thay want to hear (a high price) in order to establish a relationship and obtain the listing. After months without showings or offers, they will blame the market and the price. Please do not select a Realtor based upon a suggested list price. Realtors don’t set prices, buyers do.
Newsflash: chances are that your home is worth less than you thought, maybe much less. It does not matter if you live in Wesley Chapel, Lutz, New Tampa, Lithia, Carrollwood, South Tampa, Odessa, Apollo Beach, or anywhere in the Tampa Bay area; home values are 20-35% less than they were at the peek across all price ranges.
Now that you know the facts, what will you do about it? Stay put? Rent out your home? Could your equity be put to a better use elsewhere? Do you need to move on to the next chapter in your life? While Tampa real estate always rebounds in the long run, nobody is guaranteed a profit on homes that are only held for a short period.
Since the decline applies to everyone, now is a great time to buy your dream home at a discount. Are you thinking aboout moving up, moving down, moving to the beach or on a golf course? These homes are on sale now. Maybe you should consider a long term wealth building strategy of renting out your current home and buying the one you really want? The best time to buy is when a seller fears tomorrow more than today.
The good news is that well priced homes are selling everyday. I just had four closings on Friday. If you value honesty, experience, results, and a trusted advisor who has been through a down market before, then please call Team Bohannon at Coldwell Banker today.
- By Dale Bohannon
