Tampa Homes: Underpricing Vs. Carrying Costs
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by: slc
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For homeowners in Tampa who aren’t in a short sale position or facing foreclosure, competing with distressed sales can be a frustrating process to say the least. Unfortunately the reality is that short sales and bank owned homes sell at a significantly lower price than those that are not. The Tampa Bay real estate market is showing signs of improvement, but buyers still have the upper hand. Because of this, pricing a home correctly from the start is imperative. The last thing a seller wants is to have their home sit on the market for months on end and become a stale listing.
Home sellers probably won’t like to hear this, but aggressive pricing from the start is one of the best ways to get under contract. Between distress sales and the sheer inventory alone, buyers have the luxury to take their time and look for value. Potential buyers are looking at price first, and everything else second. Granite counters may be nice, but what’s the asking price again?
While a seller may be stuck on a particular price, they also may get stuck with a home that doesn’t sell. Aside from the new buyer psychology, it’s also important to factor in the carrying costs while the home sits on the market. Mortgage payments, insurance, taxes, and general upkeep are a true cost when factoring the net proceeds of a home sale. For those who are able, underpricing a home by 10% will not only make it more competitive, but could possibly create a bidding situation. At the very least it will take a lot less time to sell and appeal to a much larger pool of buyers in the Tampa real estate market.
When listing or buying a property it is essential to have a Realtor who knows the community, understands market data and can price a home correctly. If you are interested in buying or selling Tampa real estate, I would love the opportunity to work with you. Please call me 813-924-4468 or use the contact form on the left side of the page.
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