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7 Reasons Sellers Need To Get More Competitive To Sell A Home In Pensacola

People who are trying to sell their Pensacola homes need to understand how competitive this market is. This article will help sellers understand why there are so few buyers in this market.

If you haven’t noticed, the Pensacola real estate market is in the dumps. It seems the only winners are the buyers who are getting good deals on homes, and there aren’t nearly enough of them to make this a decent market. On a bright note, the Pensacola real estate market dropped below the 7000 active listings mark this week. As of today, there are 6974 active listings. This primarily means that sellers with overpriced homes are leaving the market. It’s not that the homes are starting to sell. Read more about the Pensacola market numbers last month in my post on Pensacola Real Estate Market Data – October 2007. The reasons for the down market are the same all over the country, not just in Pensacola. But they apply to Pensacola as much as anywhere.  Namely, there are

Too Few Buyers in the Pensacola Real Estate Market!

And this may not be changing any time soon. Here are 7 reasons we have so few buyers in the Pensacola real estate market.

1. Bought when the market was hot. Many buyers who bought when the market was hot now owe more on their home than the home will sell for. They will not be able to sell until the market kicks back up and they recover some value. This is what we call being upside down. For example, if the mortgage balance is $250K, but buyers won’t pay more than $200K for the home, the seller is upside down. Why should buyers pay $250K? There are plenty of bargains out there.

 Karl_Flip_Pool2_RS300If you want to sell your home,
you must be the best bargain in your neighborhood.

Since these upside down sellers will end up waiting until market conditions improve and then just put their homes back on the market, we are looking at a long long wait before the inventory of homes in Pensacola gets back to a normal level. (That’s me, upside down, but feeling good about it. I landed on my back. Ouch!)

 2. Foreclosed upon. Pensacola has plenty of foreclosures to go around.  Anyone who has experienced foreclosure will not be a potential buyer for several more years, at a minimum.

3. Refinanced. Similar to those who bought when the market was hot. Many people took the opportunity to refinance their homes and take out some of that equity in cold hard cash. These people are also stuck in their home until the market corrects. See #1 above.

4. The mortgage crisis. This crisis is preventing many would-be buyers from qualifying for a loan. But aren’t underqualified buyers part of the reason we got into this mortage crisis anyway? And what about buyers that do qualify for a loan? Higher down payments are now required, and many buyers don’t just have $20,000 or more sitting around in the bank.Buyers with great credit can still get 90% and 100% loans, but how many of those buyers are out there?

5. Hurricanes. We haven’t seen one for a couple of years, but apparently no one has forgotten. Check my Hurr_Ivan_Sept14post on the current real estate market on Pensacola beach properties. Not much is selling out on Pensacola Beach or Perdido Key these days.  That’s Ivan in the picture. He was not very nice to us, but he did wonders for the Pensacola real estate market, if you were a seller.

6. High Insurance Rates. Some say rates may be dropping a little bit, but rates are still so high they are preventing many buyers from being able to qualify for a mortage. Add on a couple of hundred dollars to each house payment and see how many buyers drop out of the qualifying ranks.

7. Where are the great Pensacola jobs? We hear reports of possible software development companies moving into the area, but I wonder how soon. And how much help will that really bring. Remember that 4 letter word BRAC (stands for Base Realignment And Closure). It seemed that Florida overall did pretty well in the last round of BRAC cuts, but Pensacola did not. Pensacola will be losing over 500 good paying jobs from the Defense Finance and Accounting Service (DFAS) within the next couple of years.

Great jobs don’t seem to be a problem in Mobile. Check out this article on the new German Steel Mill coming to Mobile. Talk about an economy-stimulating event. Why can’t our Pensacola leaders at least get us some kind of decent employment opportunities around here? Until something changes, the Pensacola real estate market is likely to remain very dismal for a very long time.

Sellers must price competitively to sell in Pensacola in this market.  Otherwise, they are just wasting their time and efforts.

Click on Pensacola Real Estate News for a complete list of articles indexed by category.  

Posted by Karl Burger | Currently No Comments »

7 Ways Referrals Can Make Your Move From Pensacola A More Pleasurable Experience

If you are relocating from Pensacola to another city, getting a referral to a Realtor in your destination city can make the entire relocation experience much easier.  Here’s why.

1. You are assured of an experienced and qualified agent at your destination.

All real estate agents now should be doing extensive networking on the internet and in person. If they are not, they are falling behind in the level of service they can provide to their clients. I regularly network with Realtors all over the country and have gotten to know many top notch professionals. Networking-Referrals-XSmall

2. Big name real estate companies have plenty of inexperienced agents.

If your plan is to call one of the major real estate offices in your destination city, you will likely speak to the person who is scheduled for floor duty at that time. Floor duty refers to the time an agent sits in the office and takes phone calls. How many truly successful agents would you expect to be taking floor duty? The successful agents are out in the field working with clients. It’s the new and inexperienced agents that are most likely to be at the office taking phone calls and hoping for leads.

3. The real estate agent knows they better take good care of you.

If I am referring you to a real estate agent in your destination city, I have already told that agent that you are extremely important clients and they know to take good care of you. I follow up on all referrals to ensure quality service. These real estate agents want more referrals, so they want me to hear only praise from my clients who I send to them.

4. You just made the best contact you may ever make at your destination.

When moving to a new city, who you know can make a world of difference in the quality of your experience. Where can you find: an honest mechanic, the best hair stylist, a good accountant or attorney, trustworthy childcare, and the list goes on. A quality real estate agent will be a rich resource of information for you, not just while looking for a new home, but for years after buying your new home. These quality agents live on referrals and they want to be there for you when you need them.

5. The real estate agent is a motivated winner.

How do I know the real estate agent I refer you to is a motivated winner? Because I meet my contacts through forums that are only frequented by agents who insist on consistent growth and continued education. They are on the forums to learn and improve their skills and expand their networks.

Many of my contacts come through the Council of Residential Specialists, a group of real estate agents furthering their education through the CRS program. Others I meet through educational forums and blogs. I know from their correspondence and feedback from their clients that they are experienced and ready to do the best job possible for any referrals I send their way. These are the winners who are out growing their businesses, not the whiners who sit at the office and talk about how tough the real estate market is for agents.

6. Reduced stress on you.

You have enough problems to worry about when moving. At least you will know that you have a good real estate agent when you reach your destination. I have already made sure of that.

7. Time savings.

If you planned on interviewing several real estate agents and hoped you would connect well with one, you just saved hours of time by getting a referral.

If you are relocating from Pensacola Florida to another city, I highly recommend  that you Contact Me for a referral. I will find a top quality real estate agent for you that will help you settle in at your destination with the assurance you will be well taken care of.

Put another way, a referral ensures that you have someone in Pensacola and someone at your destination that truly care that your relocation is a complete success.

Click on Pensacola Real Estate News for a list of articles indexed by category. 

Posted by Karl Burger | Currently No Comments »

How Important Are Pictures For Your Listing?

If your agent tells you that pictures are not that important, find a new agent.

There are plenty of professional qualified agents in Pensacola who can take great pictures.
 
Pictures are VERY important. If there are 5 houses a prospective buyer wants to see, and that buyer only has time to see 3 homes on a given day, wouldn’t you expect that those three homes would be the ones with the best features and pictures. Maybe that prospect will visit your home on another day, but maybe that prospect already found the perfect home before ever seeing yours, because the other home had pictures in the MLS listing.

Remember the old expression:  You don’t get another chance to make a good first impression.

Without pictures, your only impression may be an entry in the Pensacola MLS and not the home tour you are hoping for. St_regis_Kitchen_Trashed_RS450

Most people are very visual creatures and need to see pictures to truly spark their interest. The more good pictures, the better.

Now I have to say that if your home is ugly, cluttered or downright trashed, pictures may be a bad idea. Don’t ever display a picture like this one.

Want to see more really bad pictures (not from the Pensacola MLS). Click here to see some truly bad MLS photos from around the country. This guy has a great since of humor.

For a complete list of articles on Pensacola Real Estate News, click here.  

Posted by Karl Burger | Currently No Comments »

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