Hi folks, today I want to talk about selling properties in Poinciana FL. It's brutal!!! The problem I'm running up against is Mr. and Mrs. Average Seller are just not able to compete with the wholesale market i.e. banked owned properties and short sales.
As primarily a listing Broker, I have been banging my head against the wall for about a year now. The biggest issue is a lack of equity. Homeowners in Poinciana have lost about 40% in value in the last 15 months.
What this means is most Sellers are just not in a position to sell, unless they are able to bring money to the table or they apply for a short sale. But what if they don't qualify for a short sale? What if they are making payments but need to sell for health, financial or any other valid reasons that are not related to being in a pre-foreclosure situation?
They're screwed! Wanting to help these folks but not being able to is very frustrating. But….I have to try. So we price them as best as we can based on that Seller's particular situation. Sometimes it works…..and most of the time it doesn't. No amount of marketing will overcome pricing.
Unfortunately, I don't see much light at the end of the tunnel, for the near future, in Poinciana FL.
Here are some stats for Poinciana Fl. These stats only include residential properties in the Poinciana neighborhoods and were pulled from the Mid-Florida Regional Multiple Listing Service on 3-26-2008. It's deemed reliable but not guaranteed.
As of today, there are 1323 active listings. 415 of these are either bank owned or pre-foreclosure!! What's interesting is that the average list price for the distressed properties is $154,500 or $88 sq ft living area. For Mr. and Mrs. Average Seller the average list price is $188,804 or $111 per sq ft.
There are 89 pending listings. These are properties under contract that have not closed yet. I'm sure a bunch of these are short sales and may or may not close at all. The average list price for the pendings is $142,800 or $78 per sq ft. Remember the closed price on these pending listings will be lower.
There have been 61 sales since the beginning of the year. 33 of these(54%) were distressed properties and sold for an average price of $144,000 or $78 per sq ft. Average days on market was 109. There were 28 closings for Mr. and Mrs. Average Seller at an a average selling price of $149,000 or $88 per sq ft. Days on market was 143.
So, Mr. and Mrs. Average Seller are getting about $10 more per sq ft BUT it is taking 34 days longer to sell. Assuming of course they are in a position to price low enough to get it sold. Most are not.
Poinciana is averaging 20 closings a month out of a little over 1300 listings. What that means is 98.5% of the listings are NOT selling at all!! These are the facts.
The most active REO(bank owned property) specialist, REALTOR®, currently has 39 active residential listings in Poinciana. I have 16. He has closed on 3. I have only closed on 1!!! Even the wholesalers are struggling in Poinciana FL.
Folks, it just doesn't get much worse than this. My advice is, unless you absolutely have to sell….don't. Unless you are in a position to price lower than the wholesale listings your chances of succeeding are about 1.5%. Those are not good odds.
However, if you MUST sell, then give me call. I'd be happy to come over and assess your situation. Who knows? Maybe yours will be the next listing I sell. And maybe not. It is what it is.
Thank goodness for Buyers and Investors!!!
And that's the way it is in Poinciana FL. How are things in your part of the world?
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Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
***The content of this blog is solely my opinion***