Pricing for Success

Is it impossible to sell a Palm Beach Florida home in the existing market? Not really. Probably the only major difference hindering a successful sale involves having to take the extra time out to ensure the initial list price the home is sold for is as strong and attractive to buyers as possible while making sure the Palm Beach home itself looks good.

Staging has always been a vital component of home selling. Proper pricing is also essential but perhaps more people were able to get away with demanding an inflated price than the property was worth back when South Florida homes were selling at a rapid pace which didn’t make the research quite as necessary. The market situation has changed considerably since then.

Pricing has always been fundamental but it appears that even in a real estate market where values have dropped and buyers are meticulous about where their money goes, many sellers are not taking the time to effectively and realistically price their home. Whether it’s because they believe the property is worth a certain value or perhaps because they’re trying to generate as much profit from it as possible, some properties have been languishing much longer than necessary on the market.

What’s causing this mostly unnecessary problem? It’s very simple. Some sellers are listing a property for $199,000 when existing homes in the area may have a value of or may be listed for something within the $160,000 range, that’s over $30,000 dollars a buyer would save. The higher figure instantly stands out and gives off the impression that the seller may be asking too much when the price is not justified.

Considering some of the roadblocks that could affect the sale of the property in the future (drop in value due to buyer non-interest, foreclosure depreciation), it makes total sense to take the time before listing a home on the market to make sure the price is competitive. What could be perceived as selling at a loss may actually prove beneficial.

To Rent or Buy in Palm Beach

Let’s assume someone is looking for a place to call their own for the very first time in Palm Beach. The general consensus seems to be that they should wait a little longer, buying Palm Beach real estate will result in losses which is true. Renting, once considered a silly decision, now holds a larger degree of worth, just ask the experts.

Per the National Association of Realtors yet another mass of people contributed to another boost in renting. Considering how “iffy” real estate is right now and the lower prices of South Florida homes, this research makes complete sense and some may say is indicative of smart money management on behalf of the renter.

When we take a look at renting, it does make complete sense. After all, the renter gets a place to live and to customize to a certain degree without having to trouble themselves with all these things like property insurance, closing costs and most of all, mortgages. Once they’re ready to move to a larger place, the responsibilities on their end are mostly relegated to ensuring that the last month’s rent and utilities have been paid off and that the potential lease agreement has been satisfied.

Now let’s say this renter stayed in the home for a year. On the lower end, that’s more than $10,000 dollars spent in rent alone and all that money does not contribute to any long term benefits, a notable difference when a renter owns a home that can generate substantial equity and/or value. It’s also worth nothing that the year’s worth of rent payments are practically equivalent to a down payment on a no frills Palm Beach home.

Is this a thinly veiled advertisement persuading readers to buy a Palm Beach condo or home? Not necessarily. After all, buying is expensive and it requires large capital to deal with the numerous costs involved. Renting has its own excellent benefits but instead of just playing it safe because a friend says buying is a bad idea, try doing your own research or consulting an impartial real estate agent. A venture that seems audacious at first could reap long term rewards.