Price it right! Increase your chance of success in this high-inventory market.

Price it right.Increase your chance of success in this high-inventory market.
TIPS FOR SELLING• Set a realistic price• Advertise in multiple media• Improve the site's appearance• Leave the premises during the showing• Retain the property if no rush to sellTIPS FOR BUYING• Know inventory is limited in some price groups• Don't be afraid to make an offer• Know which inventory is active and has sold• Have a prequalification offer• Avoid contingency deals.
Southwest Floridians who have homes or condominiums on the market are waiting longer for properties to sell because of the current lull in activity.But a few tips about strategy can save sellers and buyers time and energy, making their real estate experience priceless instead of pricey.Area housing sales have slowed significantly since 2004 and 2005, during which sellers received extraordinary sums for homes whose market life was short-lived. For example, 9,974 houses and condos were available in Lee County on Feb. 16, according to the Greater Fort Myers Board Multiple Listing Service, which reports real estate activity every 24 hours. That same day had 441 new listings and 577 price reductions.
Fiona Finn, broker and co-owner of The Finn Team Realty Inc. in Fort Myers, said in mid-February she had 110 listings, compared with 20 at the same time last year. "There's an overwhelming supply," she said. "It's one of the slowest seasons I've ever seen."Real estate broker Denny Grimes, owner of Denny Grimes & Co., said, "Our sales are down to the 2003 levels. It is only because the buyers didn't go anywhere. The sellers left the buyers. They kept raising the prices so much."
The median sales price of an existing single-family home in Lee County was $287,200 in January, up 31 percent compared to a year ago, the Florida Association of Realtors reported. FAR indicated that 751 homes sold in January, down 9 percent from a year ago.
Indeed, price is a part of the equation for sellers and buyers. "If you need to sell today, you need to price accordingly," Finn said. "I always tell the sellers to take the position of the buyer."
If the price is too high, owners should be willing to reduce or wait. Some listings expire, evident in the 111 that expired in Lee County on Feb. 16. "They need to get realistic and quit getting greedy, and realize a profit is a win," Grimes said. "There's no sin in making a profit."Judy Ramage, broker associate for RE/MAX Realty, said sometimes a reduction to another price category is enough. For instance, she said, a home listed at $449,000 moves to a different bracket after a reduction to under $424,900. "If we don't get attention after a price reduction, then we make another," she said. "We typically give people a price range of $25,000."
For this time of the season, two weeks usually is long enough to wait for interest after a reduction, brokers said. "If you're not getting any showings, there's only one problem," Grimes said, "and that's price."In many cases, homeowners have lowered the original price more than once. Brokers cite reductions from $10,000 to $150,000. "Two-thirds of my listings have had to make price reductions to match the market," Ramage said.Dr. Ken Myracle, a Mattoon, Ill., dentist, has reduced the price of his unfurnished two-bedroom, two-bathroom condominium at the Terraces of Riverwalk twice. Myracle, who is Finn's client, said the price of the brand-new unit has dropped from $295,000 to $248,000 since Dec. 1.
Myracle, 43, said he visits here with wife Michelle, 41, and teenage daughter Molly eight to 12 weeks a year. They opted to sell their condo and vacation in their three-bedroom, two-bathroom home in Colonial Country Club in Fort Myers."I'm not discouraged because I still have something for my money," Myracle said. "If it takes a year or two, that's fine. I don't think we hit a home run every time."
Meantime, the condo may be a place for his parents and in-laws to stay when they visit. His father and father-in-law recently retired. "I think they want me to furnish it before I sell it," he said.As it is, sites are available longer than in recent memory. In mid-February, Ramage said, it was normal for a listing to be available about 93 days, even one advertised through the newspapers, real estate magazines, television and Internet.Fort Myers retiree Mike Shemon, 63, is another of Finn's clients. He has waited for activity on two condos with waterfront views. His south Fort Myers unit listed Nov. 1 and closed Feb. 28, he said. Shemon's Calusa Palms condo went on the market in late November and had not sold as of late February. Its price had been reduced once.
The two-bedroom, two-bathroom unit that sold is older and needed upgrades. So new appliances and tile were installed, walls painted. "If you've got a good product, it's clean and it has curb appeal, I don't think the market's going to go cold turkey on you," said Shemon, who lives in Lexington Country Club.Property should be ready for sale. "The preference is not to sell the house as is," Ramage said, suggesting improvements to the site's exterior and interior.
From the buyers' perspective, they have more selection than in years past. Still, real estate agents said the inventory is not extensive for certain price categories, such as $250,000 and under. Grimes said buyers should not be "lulled to believe that it's a buyer's market in all prices in all areas of the county."Agents recommend that buyers be versed in listings that have sold or are active, giving them a point of reference. That information is easily attainable because of access to advertisement tools, including virtual tours on the computer. "Seventy-one percent of home buyers start their search on the Internet," Ramage said, adding that buyers typically visit about 12 listings.Those prepared are in a better position to act on a listing within 48 hours, which is when Finn said buyers should try to negotiate.
"The best homes always sell first," Grimes said. "If they spot a good deal, they need to act on it."And because of the inventory, Ramage said sellers can be more flexible in negotiations, thereby enabling buyers to secure a lower price on a home initially listed beyond their means. Buyers armed with a prequalification offer can bring "some muscle" to the table, too, she said.
Although sales activity has been sluggish, the outlook for sellers and buyers is far from gloom and doom. As Finn said, "The market's really leveling out, and it's healthy."People who enter the market with reasonable standards understand as much. "If your price expectations are not unrealistic," Shemon said, "I still think Fort Myers is the place to go."