
Photo courtesy of Boston Globe
A reality of today’s market are price reductions. While most real estate agents try to educate their clients on the state of the current real estate market in Miami Beach, sometimes condo sellers do not heed the advice of their agent for multiple reasons. What I have found is that most of my seller clients DO understand the reality of the market in general, but their hope usually “gets the best of them” and want to believe that they may be the “lucky one.”
Today in my email I received NO LESS than 30 emails touting the following:
- 1. Price Reduced. I think “yeah and so?”
- 2. Owner Says Sell. This is my personal favorite. I say: “No duh!”
- 3. Motivated Seller. So I call the agent and they tell me, “the owner wants full price.” Now that’s MOTIVATED.
- 4. Below appraisal. I think: “Man, those people need to give up on that appraisal from 2005!”
Ok, so you’ve tried the higher price. Nothing happening. The silence of the market is deafening. You call your agent and say, “it’s time to reduce,” (they should have called YOU, but that is the subject of another post), what should you do now?
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Marketing 101: Miami Beach Condos & Price Reductions: What to Do Next
- 1. Do not reduce incrementally. Speak with your agent and set the RIGHT price. Let your good business sense prevail.
- 2. DO NOT, I repeat DO NOT do a huge “PRICE REDUCED” marketing campaign. This shouts to the real estate community and perspective buyers “No one wants this property!”
- 3. Don’t act desperate, stay the course and keep cool. Slow and steady ALWAYS wins the race, ALWAYS.
- 4. Do not worry about the word not getting out about your new price. The market will never overlook or miss a property that is priced right.
Categories: 33139, Seller Advices
16 Responses to “Miami Beach Condo Not Selling? 4 Tips on How to Handle Price Reductions”
Pingbacks
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Price Reductions and Miami Beach Condos: Tips to Help Make the Right Decision Says:
October 12th, 2007 at 6:44 pm[...] Learn more about how to effectively handle price reductions at the South Beach Real Estate Blog [...]
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Miami Beach Real Estate Statistics: South Beach YTD Condo Market Index- October 2007 » South Beach Condo Blog Says:
October 25th, 2007 at 1:03 am[...] Kevin’s advice: If you are a serious Miami Beach condo seller, don’t wait until after the “season” (“season” typically is December-June) to re-evaluate your pricing, DO IT NOW! If you plan on re-evaluating your list price, here is a guide to help you do it, the right way. [...]
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Secrets for Selling Your Miami Beach Real Estate » South Beach Condo Blog Says:
January 26th, 2008 at 1:16 am[...] Making small price reductions. I’ve said it before, so I don’t have to say it again. 2. Hiring the wrong agent. Having a competent, professional agent is more important than ever. 3. [...]
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October 10th, 2007 at 11:26 am
Absolutely PERFECT advice! It is important to do study the market on a regular basis to make sure you are priced competitively because condo market prices are shifting from right under our feet.
October 10th, 2007 at 11:31 am
Good advice Kevin. Your #1 - “Don’t reduce incrementally” is so true! That’s like recognizing you need to amputate an arm, and just cutting off one finger at a time!
October 10th, 2007 at 11:56 am
Ines,
Thanks—and congrats on your “little” accolade yesterday!
Woo hoo!
October 11th, 2007 at 2:47 pm
Very sound advice, Kevin - I wish EVERY seller could grasp this up front rather than push back and then decide to open their mind 60 days later!
October 11th, 2007 at 9:55 pm
Excellent advice KT! I received a listing last month where the owners told me that they would only accept a certain amount. Within 11 days of receiving the listing I presented them with an offer that was $25,000 less than what they wished to get for their condo. They rejected the offer and the buyer submitted an offer on a different unit in the building two days later which was accepted.
I met with the owners a few days ago and they told me that they are now prepared to accept $25,000 less than they originally hoped. Doh!
Fortunately for them, however, it looks like I’ll be receiving an offer for the same amount from a different buyer tomorrow. Here’s to second chances.
October 11th, 2007 at 10:25 pm
Thanks for stopping by. I wish the sellers good luck. Interestingly enough, I believe that if sellers price the property correctly, the market is not as bad one would think.
Maybe the stand-off between sellers and buyers is ending????
October 16th, 2007 at 2:32 pm
Hey Kevin,
Points well taken. I recently sold a Philly twin in 24 days for the highest price in the neighborhood for the last year. The property was overpriced(regardless of the surrounding comps, many investors were dealing with sellers directly and undercutting the market value of homes), there was little interest in the property. We made a substantive reduction, kept our cool and got a great offer settling within 2 weeks of an executed AOS. I wish all sellers were this accomodating and willing to understand the housing market dynamics.
October 17th, 2007 at 1:52 pm
In a market like this a condo seller in a large building should, if serious, be priced
in at least the cheapest two or three units
I believe. In buildings like the Yacht Club
or the Cosmopolitan for example many if
not most units are priced at or even through 05/06′ levels when you compare them to the sales history. 1/1.5’s lsited
higher in the same building than 2/2’s is
kind of a non starter.
October 18th, 2007 at 11:40 am
Kevin,
Right on the money! Your comments are timely and accurate. There will always be a market for properly priced properties and you cannot be shy when reducing.
There is no such thing as a bad offer, just a bad offering.
Thanks for your market analysis.
Chris
October 18th, 2007 at 12:10 pm
Kevin
Would 2004 levels be a good basis for
potential South Beach condo buyers in
the current market generally speaking?
October 24th, 2007 at 3:47 pm
Right on young man! Stay the course when the price is right. No need to reduce if your priced right even though no one is knocking on the door. Keep it apples to apples on pricing, not median price. Patience works.
October 24th, 2007 at 6:12 pm
Young man? Me? Wow, Bill you rock!
October 24th, 2007 at 6:16 pm
Hey Chris!
Man, I just saw your comment now. Great event last week!