Pricing a home right in today's crazy Florida markets of Orlando, Miami, Tampa and Jacksonville is the fisrt step in getting Realtors to show it.
Keep it simple. Go to Realtor.com, Homes.com, Remax.com, Getmoreoffers.com or Zillow.com. Gather "listed" (not "sold") data/comparables. In today's market, "sold" data can be skewed as much as 6% because Realtors® don't confirm whether or not the seller has paid closing costs (called seller concessions) when they do a CMA analysis (comparable market analysis). CMAs are based on sold data.
I suggest opening an Excel spreadsheet or start writing down where your competition is priced. Get an idea of price per square foot living area (list price divided by living area square footage) for your specific area in Miami, Orlando, Tampa or Jacksonville. These "comparables" will give you a range of what's on the market that has not sold. This will establish a base price to then evaluate further. You may need to adjust for items that your comparables have or don't have such as pool, upgrades, etc. Be sure you do so based on the reality of today's resale value.
For this example, say your base price after your analysis is $210,000. Now let's fine tune your price to make it attract offers. Because this market is unfortunately not even close to a normal buyer's market, you need to price your home right where you would if a cash buyer was negotiating with you. In paragraph 2 above, you established your base price at $210,000 using nearby comparables. Then ask yourself this question. If a cash buyer was negotiating with me right now, how far would I go down in price assuming that the buyer was unrepresented by a Realtor and no commission would be paid? If that figure is $190,000, then add 2% back for closing costs (doc stamps on deed and seller's title policy) or $190,000 x 1.02% = $193,800. This is your price for unrepresented buyers.
Now, let's say you are listed in the MLS "flat fee" and are offering a 3% buyer's agent commission. So, let's add back 5% (2% closing costs and 3% commission) or $190,000 x 1.05% = $199,500. This is your MLS price. Of course you cannot advertise a lower price than your MLS listed price of $199,500 because of MLS rules. If you wish, add an additional 1% for "negotiations."
I believe it is better to price a home under your competition and leave no room for negotiations than to price it in line with all of your competition. The bottom line is, better priced homes get shown more. It is far more desirable to get a buyer interested in your Miami home and making an offer-any offer-than to be priced right alongside multiple comparable homes. At least then you have an opportunity to make a deal.
In this crazy Florida market of 2008, the name of the game is showings. As far as not negotiating off your listed price, you can simply say, "I have priced my home to sell. I'm priced right and I'm at my bottom line." If the buyer wants your home, they will accept this and meet your price.
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