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Columns : Let's Talk Real Estate - James Sarles Last Updated: Feb 6, 2017 - 2:32:04 PM

Selling your property in a buyer's market
By James Sarles
Sep 27, 2012 - 11:50:00 PM

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You hear people say that Freeport, Grand Bahama is a Buyer's Market.

For those who don't know what that means: A buyers market is a market which has more sellers than buyers and low prices result from this excess supply over demand.

If you own a home or land in Grand Bahama and you who want to sell today in the middle of this buyers market and slow economy you have a choice: You can sell in the current market at current market value or you can wait and wait and wait and wait until you get "your price."

Of course, the second option assumes that buyers will wait for you. If you really want to sell your property today, my recommendation is that you need to forget about the real estate market of just a few years ago, forget what you paid for your house, forget what your friends think your property is worth, forget what the neighbors have listed their property for, forget what the house was appraised for three to four years ago and face the new reality that Grand Bahama is a true buyers market and price your property at market value.

For those who don't know what that means: Market Value is The highest price a willing buyer would pay and a willing seller would accept, both being fully informed, and the property being exposed for sale for a reasonable period of time.

We have a big problem on Grand Bahama. We have a lot of property for sale and very few buyers and lots of stubborn sellers with unrealistic prices.

You may say... so what's the problem?

The problem is that when a buyer comes to the island from the U.S. or Europe and figures out that it is a buyers market they make aggressive offers and the sellers don't accept the offer or counter offer with reasonable prices.

So the buyer goes away and says that Freeport prices are too high and the sellers keep their properties on the market and complain that the Freeport Real Estate Market is horrible and nothing is selling.

If there was property tax in Freeport the stubborn sellers would lower prices in a hurry so that they would not have to pay property tax year after year. Now I am only speaking the truth. I believe that our prices are too high and if you look at the properties that are selling they are way below market value.

This is not conjecture this is based on actual sales vs. list price. If sellers would look at their homes like they do stocks they would sell at the market value not what the stock price "could be or should be."

So when a real estate agent tells you that your property is worth X based on comp sales and market value this is what the house will sell for. If you overprice a house it will take longer to sell and may not sell at all, which hurts the seller and the market in general.

If you want to sell your property today the most important advice I can give sellers is Price It Right. If you don't want to sell at market value, take your house off the market until the market value and your expectations match. Don't list high and see if someone bites at the offer. Use the right bait which is the right price!

So if you want to sell Price It Right and if you want to buy now is the absolute best time to buy because there are great buys in every category of property. Don't be afraid to make aggressive offers in this buyers market.

Contact the author, James Sarles at Coldwell Banker - James Sarles Realty  james@sarlesrealty.com


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