Ready to sell your Key West home?
Avoid the #1 way to damage your listing
The Key West real estate market is definitely hot right now. As of this writing, there are only 17 single-family homes listed in the City of Key West proper under $600,000. These homes are not part of a townhome or a divided condo, they are stand-alone homes. Of those 17, we would consider 4 that need major work and 6 that are livable and could be upgraded over time. The smallest single family Old Town home in this category is 486 SF, listed at $599,000 and is quite cute and move-in ready. We state these statistics to give you an idea of what you can get for your money right now.
A buyer will have a myriad of criteria in their home search, however at the end of the day, it all comes down to price. If the buyer can’t qualify for a loan or they simply can’t make the numbers work, they won’t buy. Period. And this is the #1 way to damage your listing: over-pricing your home from the start of the listing. Because we live in one of the warmest and most beautiful parts of the continental U.S., we feel we have struck the real estate lottery and consumers will pay anything just to live here. For the buyer where money is no object, that may be true. But for the average couple or family looking for their long-term home, they are considering what they can afford versus what they can get for their buck. Is the home within their budget, but they will have to put another $100,000 - $300,000 into it to fix it up or even make it livable? Is it a nice location within Key West or is it on a congested or high-traffic street? Is the home in a poor flood zone and will require high flood insurance? Is the home, lot or combination simply too small for the price? These are questions you and your Realtor should ask when pricing your home.
Sadly, many Realtors will let the seller price the home, because of the “island real estate lottery” mentality and they do this to get the listing. A qualified Realtor will run an accurate Comparative Market Analysis (CMA) on your home, as well as take into consideration how well the home is maintained, the location and insurance costs when pricing your property. The number may be less than you wish to hear, but homes that are priced to sell – which means homes that are responsibly priced based on these factors, will have more showings from the beginning of the listing and usually go under contract within the first two months. If you price to “play the market” you may find that you will have to go through several price reductions before you hit the sweet spot where you start seeing some action. Thus, loosing valuable time on the market to have shown your home during season or other peak times. Plus, the more days on the market (DOM) gives the appearance that something is wrong with your home, because it hasn’t sold quickly, this can be a turn-off to potential buyers. If your home is over-priced, your Realtor is reluctant to spend advertising dollars and you are frustrated because you feel they aren’t doing anything to market your home.
Let’s work together to accurately price your home! Check out my Selling philosophy here: KeyWestRealEstate.info/selling/.