Most days,Â we get frantic calls from investorsÂ asking “Please sell my condo!?”Â I usuallyÂ have to tell them “No” without even asking what or where it is.Â Because unless they’re willing to price it according to what they can actually get, as opposed to what they think they deserve to get, then we’re all wasting our time. Sound harsh?
According to the Orlando Sentinel’s figures, from July 27th to August 27th, 538 condos were listed in the MetroWest and Dr. Philips / Windemere areas (32835, 32819). In that same time period 12 sold.
Let’s play…Â Name those 12! Come on down!
The truth is that right now, if you’re hoping to make a profit on your condo – and in most cases, even if you’re even prepared to break even, then you’re probably wasting your time.Â If you can find a good tenant,Â better toÂ rent theÂ thing for the next year or two. Because each month, the numbers tell the same story. Only the best deals in town are selling. And as Jens’ recent article points out, even some of the best deals out there are not being sold, because buyers are still running scared and are incapable of recognizing a good deal when they see one.
But let’s address an entirely different reason for over-pricing. Part of the reason sellers are still overpricing their condos has to do with the idea that “I want to leave in some negotiation room in my price.”
Unfortunately, there would appear to be some statistical evidence that those whoÂ “leave in some negotiation room,” never have to worry about negotiating their priceÂ — because they never get a visitor.Â Real estate agents have a term for those listingsÂ – “expireds.” And right now there are thousands of them as evidenced by the above figures. Right now, buyers are looking for deals. If the price tag isn’t right, their beady eyes will roll past your listing faster than Larry Craig can pull his pants up.
On the other hand, ifÂ the price isÂ right,Â you won’t have to come down at all because you’ll have attracted the attention of several buyers. In that sort of scenario, you can hold your price firm.
Moral of the story: If you don’t price your condoÂ where the fish are biting right from the get go, then you might as well take your maggots and go home.Â