These are challenging times for buyers and sellers in southwest Florida.
Since I'm primarily a listing agent, I've had the challenge of advising homeowners how to price their property for an expedient sale. The information below can benefit both buyers and sellers as a guideline when negotiating the real estate market.
When buying and selling in today's market, here is the criteria to consider:
1. Assessed Value - In the past, assessed values assigned to properties may have been a little skewed. Now, however, when I look at assessed values and compare them to market value, they are in line a majority of the time.
2. Comparable Sales - Buyers in today's market want to know what the sales prices have been on comparable properties within the last 3 to 6 months. Since we can easily find similar properties in most cases, it is not rocket science to determine a fair market value.
3. Appraised Value - when an appraiser is assigned a property to evaluate, he or she will search out comparable sales, contact the listing agent for details such as upgrades, etc., and will basically determine the market value the same way a Realtor would. Having spoken with a multitude of appraisers who have contacted me for information, we are almost always on the same page.
4. Condition of Property - Although there may be several comparable sales, not all interiors and/or exteriors may be the same. If a residence was updated with new kitchens or baths, granite, stainless, hardwood floors, crown molding, etc. versus a comparable that is in original condition, a buyer and seller must add value for these improvements. Many times buyers do not consider these upgrades as having a monetary value. Buy they should.
5. View - within a given community, some properties have many different views: gulf , bay, lake, preserve , golf course, a parking lot or no view. Buyers need to consider added value for view. Properties with superior views sell for more. If you're looking for a bargain - sacrifice view.
6. Floor Location - the higher the floor, the more value added. In low and mid-rise buildings, top floors warrant more than lower floors. They generally have higher ceilings, no noise from upstairs neighbors and better views. In a high-rise building, being too high gives you a view of the sky. Consider extra value for a middle location where you can still see what's happening down below.
6. Sun Exposure - This is a personal preference in most cases and I refer to rear exposure only. Southern exposure provides year round sun, northern exposure no sun, western provides fabulous sunsets and glorious skies, eastern afternoon shade. Personally, I don't believe this adds or subtracts too much value since it so subjective. However, seller's with southern exposure always think that it does.
7. Location - why is location last? Because I'm using comparable sales. A good location is always a good location. You should always compare apples to apples. So, in Naples for example, being on the beach is a superior location than being west of 41. Even if you have an identical property, you can rest assured the one on the beach will warrant much more money. The same goes to proximity to downtown, the beach, dining, shopping, etc. The further north or east, the less the value.
In conclusion:
When selling, use the above information to list at an appropriate price to obtain a sale. You can hire the best Realtor on the planet but they cannot perform miracles. If a Realtor does take an overpriced listing they have themselves to blame when they don't meet your expectations. If you're unrealistic, plan on keeping your property until the market rises to meet you - and that will happen at some time is the distant future.
If you're a buyer, offer a price that is within reason. Most successful sales result from reasonable offers being presented to reasonable sellers.
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