When it comes to pricing a house that one is intending to sell in Tampa, it is important to consider the present conditions and trends of the Tampa housing market-whether it is a seller’s market or a buyer’s market. It does not matter what your former neighbor got his or her house sold six months ago, or even what the properties are listed at present. The essential thing to keep in mind is that the most recent sale price in the market is more or less the sale price now.
In examining what the potential gain on the sale of a house is, one must consider doing so in perspective. If house prices has been rising year after year at, say, 4 % annually and then all of a sudden people started selling their houses for 1 % below the asking price of the previous year, would that be reasonable? If it is, then what about properties with prices that have been moving up at 20 % per year for several years, which unpredictably started selling for 5 % below the asking prices of the previous year, would that be fairish? The point of asking you this question is that what really poses the practical challenge in Tampa housing market sellers is when percentages are translated into absolute dollar amounts. That is, if the 5 % drop is tantamount to $5,000, most people would not be shook up. It is the case wherein the 5 % drop translates to $25,000 that starts to commove sellers.
In the Tampa housing market, astounding rates of price appreciation were experienced from 2004 to 2005. Many homeowners underwent a doubling in property values over the last five years, until 2005. But for the current year 2006, price appreciation has subsided and is now sitting roughly between 5 to 8 % range. Most people consider this a dramatic change in comparison to the really high rates enjoyed in the previous period.
Unfortunately, many sellers in the Tampa housing market today have been defending their asking prices as if their lives relied on it. While these people are sitting on hundreds of thousands of dollars of equity, they just could not bear the idea of cutting down selling prices by $25,000 or $50,000 to sell it today. The house that was $260,000 in 1999, is now selling for $569,000 today. But some sellers now want that same type of appreciation and hence could not stand the idea of selling it for less than $569,000. It just does not seem fair for most.
The more disturbing fact is that there are agents who are defending their prices in a self-adjusting market. These agents are simply too worried about telling their seller clients that their property could not sell in today’s Tampa housing market with the price they are asking.
Tampa housing market conditions are akin to playing Russian roulette. Sometimes one could not predict what one has in the offing until the trigger is pulled. Sellers of today still persistently seem to be telling buyers, “I’ll drop my price, just make an offer.” Buyers, on the other hand, seem to be replying, “I’ll make an offer, just lower your price.” Nobody wins in this kind of scenario, which is one of the determining factors that contribute to the rise in inventory of unsold properties in the Tampa housing market today.
Rising inventory certainly influences prices, and to sellers it admonishes about having to cut down asking prices. Sellers may lose in some cases, but losing is not so bad if one considers the fact that the present Tampa housing market is favoring buyers beyond question.
Homeowners who are selling a home are normally intending to buy a new one in the same area. Just consider this: if you have to drop your selling price by 5 % to get your property sold, then the seller of the house you are planning to buy, which is normally more expensive than the price of your house on sale, is almost certainly going to drop his sales price by about the same percentage as well. It means that while one may apparently “lose” money on the sale of a home, there is going to be more than likely chance of acquiring a “gain” on the purchase of the new house.
Nobody has absolute control of the real estate market; it is the market that controls us. When it’s time to move, then sell. When it’s time to buy, then buy. Be contented with the market you are in, not in the market you wish it would be.