Contact Jim

850-206-6140
Or Email Jim

Categories

Archives

Overpricing Homes – Sellers Can Lose Out In The Pensacola Real Estate Market

In my previous article on home prices in Lake Charlene I shared some information regarding pricing of homes in this West Pensacola subdivision.  A couple of days after writing that article, I wondered how many of those homes had dropped in price since being put on the market for sale.

Click here to read my previous article on Lake Charlene

Here are my findings:

Of 10 homes for sale, not including the lakefront homes, as they skew the numbers:

Average Original Price when listed: $205,360
Average Price Per Square Foot when listed:  $97.64

Average Current List Price:  $188,660
Average Current Price Per Square Foot: $90.03

This shows that the average price reduction on homes in Lake Charlene is $16,700. I’m sure this is typical of the rest of the Pensacola real estate market. 

Of all of these 10 homes in my test market,

Now what does all this data show in regards to its impact on home sellers in Pensacola? My previous article showed that 8 homes sold in Lake Charlene for $89.51 per square foot in 2007. While these homes were selling, the overpriced homes at $97.64 per sq ft were sitting on the market. They are still sitting on the market, and the market has gotten worse for sellers during 2007.

So sellers on the market now who have reduced their price would have had a much better chance of selling their homes at around $90/sq ft if they had originally priced them to be competitive in the Pensacola real estate market.  However, they tried to “test the market” and as a result their homes are still sitting, and they will likely end up having to either sell at less than $90/sq ft or take their homes off the market.

Lesson: Pensacola sellers, please listen to your real estate agent. The agents know the market and know how to price your home. Just make sure you get a good experienced Pensacola real estate agent to ensure your home is priced to sell.  The agent should be able to show you the numbers by providing a comparative market analysis. In this market, the numbers don’t lie.  

  1. Wasilla Real Estate

    You are exactly right. No matter where you are, in Pensecola, Florida or Wasilla Alaska sellers shoot themselves in the foot.

    They are afraid of leaving money on the table so they overprice their home. The result is that they lose a lot more money than they would have if they had underpriced the market by a few thousand.

    Marty

  2. Karl

    Thanks for the support Marty. It seems to be one of the hardest issues real estate agents have to deal with. Overpricing rarely nets any more money, and most often results in less money, especially in this market.

Leave a Reply