PROView - January 2009 - (Page 20) (CONDOS, from page 6) According to Purtee, baby boomers who got priced out of the condo market in 2005 and 2006 are watching this market closely to be able to purchase their waterfront dream retreat. “With unprecedented drops in property values and as interest rates continue to fall, this group will find living the Florida lifestyle within reach.” Purtee recently listed a 1-bedroom beachfront condo in Indian Shores at $299,900, $51,000 less than what the sellers paid for it. The decision to list at that price was a challenge at best, but indication was that it would sell quickly at that price. A rental property, it was seldom available for showings and several weeks went by with no offer on the table. All of a sudden, to everyone’s shock, a bank-owned unit came on the market with a price tag of $239,900. Immediately, her team set out to promote the new listing to their database. Within 12 hours, three buyers lined up to write up an offer. In the meantime, a contract did get accepted by the bank and the property was no longer available. One of their buyers, however, who had seen both the bank listing as well as the unit listed by The PURTEE Team, decided to put an offer in on Purtee’s listed property as well. “As a result of the bank-owned listing, and how quickly we got the information out to our database, our listing was sold through an all-cash closing before Christmas!” She describes how buyers, who have been on the sidelines until now, are becoming more aggressive in searching for the best properties at the best value. Her recent success certainly proves the importance of consistently staying in touch with potential buyers. A Strategic Approach Clearly, there’s no easy fix to solve the current challenges in the condo market. Wazio suggests that taking the following five steps is crucial to help enable a faster flow of properties and thus a decline of available properties for sale. 1. Educate Yourself and Consumers First, Wazio stresses the importance of knowing your product. “As REALTORS® we must have all available information about the inventory.” That, he says, includes in-depth knowledge about different condo buildings, floor plans and, of course, recent sales statistics. “If you’re telling a customer that any particular price point may not be available after a specific unit sells, you must be able to back it up with solid statistical proof to support your assessment.” 2. Price it Right Additionally, Purtee stresses how important it is to carefully guide sellers to the right price. Many sellers have the mindset of holding on to a higher price until the market returns, which isn’t exactly the best pricing strategy in a declining market. Instead, if a quick sale is of the essence, sellers must understand the importance of a listing and pricing equilibrium. 3. Note to Sellers: Do You Really Need to Sell? Some sellers appear to have adjusted prices downward, yet many continue to hold on to top shelf prices. Fraleigh stresses that today’s market is a buyer’s market and unless a property must be sold, now may not be the best time to attempt a sale. The bottom line, she says, is that sellers who don’t have to be in the market shouldn’t be. “I ask everyone I meet whether they really have to sell. This is not a seller’s market and they may be better served to wait. 4. Stepping Up Your Marketing Efforts Do you have a database of potential home buyers you’ve built up over the last couple of years? Now is the time to put it to use. Purtee describes a recent transaction that shows how important it is to keep informing your sphere of influence about opportunities in your marketplace. In her case, simply sending out information about market activities led to a closed deal. 20 PINELLAS REALTOR® ORGANIZATION Taking the First Step to a Stronger Market There’s little doubt that the condo market is at the heart of the struggling Pinellas County housing industry. The inventory of condos on the market remains high and the median sales price is not showing signs of stopping its downward spiral. Amid these challenging times there’s good news. The inventory level is coming down and with lower prices comes increased affordability. As a result, more consumers should soon be able to enter a marketplace they not long ago deemed out of their price range. We know the return to a stable condo market may not be quick, and it will likely take a long time until we’ll see prices return to near those we’ve seen in recent years. The message from local condo specialists is clear, though: willing and able buyers are waiting until the time is right. When more properties start moving, consumers are likely to get the message. Where to start? Perhaps Fraleigh said it best: “Price a condo right, and it will sell.” January 2009
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