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Trying to sell retail listings in a wholesale market!!!

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

Call Broker Bryant for the truth!
 

Hi folks, today I want to talk about selling properties in Poinciana FL. It's brutal!!! The problem I'm running up against is Mr. and Mrs. Average Seller are just not able to compete with the wholesale market i.e. banked owned properties and short sales.

As primarily a listing Broker, I have been banging my head against the wall for about a year now. The biggest issue is a lack of equity. Homeowners in Poinciana have lost about 40% in value in the last 15 months.

What this means is most Sellers are just not in a position to sell, unless they are able to bring money to the table or they apply for a short sale. But what if they don't qualify for a short sale? What if they are making payments but need to sell for health, financial or any other valid reasons that are not related to being in a pre-foreclosure situation?

They're screwed! Wanting to help these folks but not being able to is very frustrating. But....I have to try. So we price them as best as we can based on that Seller's particular situation. Sometimes it works.....and most of the time it doesn't. No amount of marketing will overcome pricing.

Unfortunately, I don't see much light at the end of the tunnel, for the near future, in Poinciana FL.

Here are some stats for Poinciana Fl. These stats only include residential properties in the Poinciana neighborhoods and were pulled from the Mid-Florida Regional Multiple Listing Service on 3-26-2008. It's deemed reliable but not guaranteed.

As of today, there are 1323 active listings. 415 of these are either bank owned or pre-foreclosure!! What's interesting is that the average list price for the distressed properties is $154,500 or $88 sq ft living area. For Mr. and Mrs. Average Seller the average list price is $188,804 or $111 per sq ft.

There are 89 pending listings. These are properties under contract that have not closed yet. I'm sure a bunch of these are short sales and may or may not close at all. The average list price for the pendings is $142,800 or $78 per sq ft. Remember the closed price on these pending listings will be lower.

There have been 61 sales since the beginning of the year. 33 of these(54%) were distressed properties and sold for an average price of $144,000 or $78 per sq ft. Average days on market was 109. There were 28 closings for Mr. and Mrs. Average Seller at an a average selling price of $149,000 or $88 per sq ft. Days on market was 143.

So, Mr. and Mrs. Average Seller are getting about $10 more per sq ft BUT it is taking 34 days longer to sell. Assuming of course they are in a position to price low enough to get it sold. Most are not.

Poinciana is averaging 20 closings a month out of a little over 1300 listings. What that means is 98.5% of the listings are NOT selling at all!! These are the facts.

The most active REO(bank owned property) specialist, REALTOR®, currently has 39 active residential listings in Poinciana. I have 16. He has closed on 3. I have only closed on 1!!! Even the wholesalers are struggling in Poinciana FL.

Folks, it just doesn't get much worse than this. My advice is, unless you absolutely have to sell....don't. Unless you are in a position to price lower than the wholesale listings your chances of succeeding are about 1.5%. Those are not good odds.

However, if you MUST sell, then give me call. I'd be happy to come over and assess your situation. Who knows? Maybe yours will be the next listing I sell. And maybe not. It is what it is.

Thank goodness for Buyers and Investors!!!

And that's the way it is in Poinciana FL. How are things in your part of the world?

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Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://www.brokerbryant.com/
***The content of this blog is solely my opinion*** 

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 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Comments(61)

Real Estate Investing |Real Estate Investment
| Real Estate Radio USA - Fort Lauderdale, FL

BB pardon the intrusion...

John..they were not deleted. They were reported as spam.

Mar 28, 2008 07:56 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Thanks John, How are you. I did indeed delete on of Brett's comments. But he reposted it above and I let it stand. I have received almost 19,000 comments on my blog and have deleted about 4 in total. I only deleted his comment here because it really had nothing to do with the post but was just an attempt to imply that I have something to hide. But of course I don't. I guess I'm supposed to be ashamed of my low production over the last 12 months. I guess that assumption is being based on MLS data which most folks know only shows part of the picture. I should have just left it to begin with but deleted in a moment of passion. Oh well....such is life.
Mar 28, 2008 07:57 AM
John S.
RealtorRatingz.com - Canandaigua, NY

BB, yes, I saw what he was doing.  Sometimes a bully only learns by meeting a bigger bully.

BB, keep up the great work. 

Mar 28, 2008 08:20 AM
Real Estate Investing |Real Estate Investment
| Real Estate Radio USA - Fort Lauderdale, FL
Bully??? How about ignoramus!! Lol!!
Mar 28, 2008 08:29 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
OK guys.....this post is about market conditions in Poinciana. Or is it? :)
Mar 28, 2008 08:40 AM
John S.
RealtorRatingz.com - Canandaigua, NY

Brett Wilson said:

> Bully??? How about ignoramus!! Lol!!

Very classy, Brett.  You prove my point with every word you type.  

Sorry, BB; I won't reply to any more of his goading. 

Mar 28, 2008 08:44 AM
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Okay...

Before this goes south again...

Let's stick to the topic at hand...Which of course is market conditions.  

TLW...ROAR!

Mar 28, 2008 08:49 AM
Laurie Mindnich
Centennial, CO

TLW, I got a great haircut recently-shorter, highlighted- OOPS- what's this post about?

Mar 28, 2008 10:19 AM
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

LOL Laurie...

As you can see there was a part of 'knock it off' that BB did not understand :)

Amanda...

We love you too. Looking forward to that Dom. I'll serve ya some gator bites to go with it. They taste like chicken. Cluck Cluck :) 

TLW...ROAR!

Mar 28, 2008 10:39 AM
Amanda Evans
DFW Living - Fort Worth, TX
Real Estate Broker - Fort Worth Texas

We're gonna shoot stuff too, right?

Mar 28, 2008 10:44 AM
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate
I too thought this was a post about market conditions...how come we can't read a post that stays within the subject matter especially a market post...it had nothing to do with a debate. I think and correct me if I'm wrong BB but aren't you reaching out to the consumer on this one? I would think it might be better just to disable comments if they aren't about the subject.
Mar 29, 2008 01:52 AM
Yvette Chisholm
Long & Foster Real Estate, Inc. - Rockville, MD
Associate Broker - Rockville, MD 301-758-9500

BB a great blog - everyone in our area Metro DC is crying about how bad the market is here...they certainly don't have anything to cry about.  Hope it gets better soon :)

Mar 29, 2008 01:54 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Neal, Fortunately for me when folks read these comments I come out looking just fine. I have actually had many consumers contact me because of the way I handle myself. I placed this post on my outside blog and emailed it to my data base and my current sellers. Of course over there is has no comments. As aggravating as it is I prefer to just let comments stand. My opinion is they are a reflection of the commenter not me. The consumer can get a peak at the crap we have to deal with on a daily basis. It increases my value.

Yvette, Thanks for stopping by. Foreclosures and short sales have ruined my market for years to come. Poinciana was an awesome little bedroom community until we were raped by Investors in 2005 and 2006. Now parts of it are a ghost town. It sucks!!

Mar 29, 2008 06:27 AM
Thesa Chambers
West + Main - Bend, OR
Principal Broker - Licensed in Oregon
Bryant - I have received a few calls lately that make this a little more positive - people are getting to know that short sales and dealing with the bank takes time..... and so, a couple of people have called to say they are ready to buy - but not to show them any bank owned properties - or short sales - they want to be in sooner rather than later.... so maybe there is a light at the end of the tunnel.
Mar 29, 2008 06:55 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Thesa, I'm seeing that in my area as well. Foreclosures not so much but short sales mainly. And because of this you have to price a short sale pretty low just to be able to get showings on it. I hope all is well with you.
Mar 29, 2008 09:59 AM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

The really pathetic part of this debacle is that it is a public and not "member's only" post. Sorry, but I agree, stick with the topic...email is for personal issues. Just my .02.

Great post BB. at least you say it the way it is! Kudo's for that!

Mar 29, 2008 11:59 AM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

BB, You said somethhing very telling about your market when you said that they can now afford to buy closer to Orlando. Maybe what Poinciana needs is its own raison d'etre. A bedroom community is only good if the inhabitants are willing to make the commute.

I think you could serve your clients better and serve yourself if you could partner with local developers to bring employment opportunities to Poinciana. You really need to fuel demand, not just keep lowering the price.

Bill Roberts

Mar 29, 2008 03:22 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!
Bryant- We need to talk. I may have a part of a solution for you. We are getting many short sales approved that on the surface look like they do not qualify. Most of the lenders are getting much more lenient about what they will approve. I may have a way for you to help these people.
Mar 29, 2008 05:46 PM
Karen Rice Keller Williams Real Est
Keller Williams Real Estate - Hawley, PA
Northeast PA & Lake Wallenpaupack Home Sales

I will say this:  this is the mostly lively market report I've ever read.  Most of the ones I see get no comment whatsoever!

ANYWAY - I feel for the sellers in this position.  I am blessed to be in a rather stable market - though buyers are surprised that sellers aren't panting with anticipation at their low-ball offers.... had a guy call me one day on a $170,000 house and he said "Do you think the seller would take $50,000?"  and I said "Yeah, as a down-payment!"

The market is what it is - the good, the bad, the stable.  Our job is to provide accurate information and sound advice - and not eat each other up in the process. 

Good words, BB - as always, a pleasure reading your blogs.   

Mar 30, 2008 04:43 AM
Sandy McAlpine
RE/MAX EXECUTIVE - Cornelius, NC
Search Lake Norman Homes For Sale - Lake Norman NC
Gosh! I saw your comment about "no amount of marketing will overcome pricing" and it REALLY hit home!! Even though our market here in NC is not as bad as FL, we are experiencing huge amounts of inventory and less buyers. With over 622 listings in 2 sub areas and only 145 sales and 122 under contracts. I have been trying to convince my sellers to lower the price and all they want to do is push me to do more open houses and ask me for copies of my ads. Who's opinion will they take if they don't take mine?
Apr 02, 2008 03:52 AM