New Southern Properties
Lake Mary, FL Real Estate
Lake Mary Homes For Sale


Sun, Oct 02, 2011 at 6:21PM








THE STAGNANT MASS is what the real estate industry typically refers to homes which have been listed for sale on the Heathrow Florida, Lake Mary Florida or Sanford Florida market for an extended period of time and have still not sold.   Over time in any market – a buyer’s or seller’s market – properties flow in, are sold and flow out.   However, there is always a segment of the inflow which sinks to the bottom and sit. 

The usual culprit is overpricing. Many sellers like to try and price their home “just a little above market” to leave themselves room to negotiate to the market price.  A good realtor will advise against this – not because it is easier for them to sell at a lower price – but because overpricing leads to a whole host of issues which will taint the house in the eyes of the market.  It is a time tested axiom that the market, while slow in its process, is very efficient at achieving equilibrium between supply and demand – and with that – price. 

The pricing of a home, whether it is in Heathrow Woods, Alaqua Lakes, Heron Ridge, Keenwicke, Wyntree or Chase Groves,  Celery Key, or Egret’s Landing, should be directly proportional to both the market and your priorities.  If you want to be out of your home in ninety days and the average sale time in your market is 180 – you will have to price your home lower to have any chance at achieving your goal. 

Your real estate professional of choice should provide you with similar properties which have sold in your area.  But these properties are a reference to the past – they are off the market.  Your competitors are those which are on the market and for sale now.   Price is generally how buyers prioritize their searches and a properly priced home has an excellent chance of selling in the first thirty days of listing in most markets. 

Let’s look at several issues associated with over pricing a home.   

1.   Showings.   Depending upon how overpriced your home is – it will either get no showings or will get a showing or two with no offers.  Ninety percent of the buyers today start on the internet and they look for an average of 4 months or more before going out to see homes.  This means they are well versed in pricing before they even hit the streets.   Either they’ll look at your home to compare with your competitors – the ones they really are considering - or they won’t even bother.  

2.     Aid and Comfort to your Competitors.    Overpricing helps your competitors.  It makes their homes look more like bargains.  It helps them sell and at the same time highlights your house brilliantly in a negative light. 

3.    Appraisal Problems and Limited Buying Market.   If you do manage to get a contract on your over-priced home, most homes are financed in some fashion and the lenders routinely require an appraisal.  Chances are excellent that your home won’t appraise at the contract price – especially in a declining market.  This also means you have just limited your buyers to cash-only buyers and thus effectively wiping out 70% of your would-be buyers. 

4.   Being Labeled.  Every new listing piques initial interest.  And as the saying goes, “first impressions are lasting impressions”.  Once it is out there overpriced, many agents will not come back to it. Eventually, with enough time being overpriced on the market, your home will establish a “reputation” as simply being overpriced.  After that it will be ignored – even with agents entering your market segment with new buyers.   This is the beginning of the end for your chances at selling.    

5.  Low Ball Offers.   Once your home has been on the market longer than the average days for selling, the only offers you’ll likely attract are low-ball offers.   Many buyers see stagnant listings as reasons to bargain harder assuming correctly that there is little competition vying for your home.

6.   Stagnate Mass.   Once you’ve firmly established your home as being overpriced and its reputation as such is solidified – you have officially become part of the stagnant mass.   The stigma associated with can be virtually impossible to erase – even with often too late and too little price reductions.  Reductions at this time are often ineffective since you are now chasing the market.  You will do best in this situation to take it off the market and wait at least ninety days before relisting. 

While pricing is only one component in marketing a home, pricing it incorrectly will immediately negate all other aspects of your marketing plan.  Take these tips into consideration when setting your listing price. Good luck and good selling.


If you are thinking of selling your home -- CONTACT US !


Bookmark & Share

User Comments

Be the first to comment on this post below!

All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independent verified. Listing information is provided for consumer personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law. The source of the listing data is as follows: Stellar MLS (updated 7/14/24 1:29 AM) |
Real Estate
Real Estate
  • New Listing Alerts
  • Foreclosure and hot deals
  • Market value of your home
  • Excellent rates on mortgages

Florida Luxury Gated Communities

Alaqua Country Club
Alaqua Lakes Golf | Alaqua Lakes Golf Course | Alaqua Lakes Florida | Alaqua Lakes Country Club
The Preserve at Astor Farms
Baker's Crossing
Banyon Pointe
Barclay Place At Heathrow
Berington Club
Brentwood Club
Brookhaven Manor and Brookhaven Ridge
Buckingham Estates
Burlington Oaks
Calabria Cove
Capri Cove
Coventry At Heathrow Florida
Debarry Golf and Country
Dunwoody Commons
Egret's Landing
Estates at Wekiva Park
Grande Oaks at Heathrow
Fountain Parke
Heathrow Woods
Heron Ridge
Kentford Garden
Lake Forest
Lake Markham Preserve
Magnolia Plantation
Markham Estates
Markham Forest
Markham Woods Enclave
Oregon Trace
Reserve At Heathrow
Retreat at Wekiva
River Crest
Riviera Bella
Savannah Park at Heathrow
Summer Oaks
Terracina At Lake Forest
Terra Oaks
The Cove
The Retreat At Twin Lakes
Tuscany At Lake Mary
Waters Edge
Wilson Park
Wingfield North
Woodbridge Lakes

Florida Communities

Arbor Ridge
Arlington Park
Antigua Bay
Bear Lake Woods
Breckenridge Heights
Celery Estates
Celery Lakes
Celery Key
Chase Groves
Chelsea Place
Country Club Oaks
Country Downs
The Crossings
Crystal Lake Estates
Danbury Mill
Eagle Creek
The Forest
Hidden Cove
The Hills of Lake Mary
Groveview Village
Huntington Ridge, Huntington Landing, Huntington Pointe
Isle of Windsor
Lakewood Ranches
Live Oak Reserve
Markham Glen
Markham Meadows
Markham Place
Mayfair Club
Mayfair Meadows
Mayfair Oaks
Middleton Oaks
Misty Oaks
North Cove
Oak Island
Oceanside Village
The Pelican
Osprey Pointe
Preserve At Lake Monroe
Parkview and Parkview Heights
The Reserve At DeBary
Reserve At Golden Isle
The Reserve At Lake Mary
Ridge Pointe Cove
Shannon Downs
Sun Oaks
Sweetwater Oaks
Sylvan Lake Reserve
Tall Trees
The Estates At Springs Landing
Timacuan Park - Lake Mary Florida
Wingfield Reserve

Florida Retirement Communities

Heathrow Retirement Communities

Buyers (5)
Foreclosures (1)
Homes In Heathrow FL (4)
Investment Properties (6)
Orlando Housing Market (5)
Orlando Regional Housing Market Updates (1)
Sellers (2)


<< July 2024 >>
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Tell A Friend
New Southern Properties Inc.
4300 West Lake Mary Blvd
Bldg 1010, #415
Lake Mary, FL 32746
Phone: 321-262-6162