June 2008 Market

If You’re Not Serious, It Won’t Sell

The most difficult reality for most sellers to face is that prices in our neighborhood may have dropped during the last year or two. Some sellers will find that it may not make sense to sell if the probable sale price is too low. Others who need to sell or who want to sell need to understand this: It is what it is. Take a deep breath and try to accept it. There is nothing we can do to change things. You are not alone and you will get through it.

If you are selling your home you need to start out knowing that right pricing is key in this market. The objective in pricing your home is ultimately to get your home sold. Your home needs to be priced so that it is considered the best home value in a buyer’s price range. If you list your house too high and you haven’t received an offer after eight to ten showings that should be an indication that you’re priced too high. Sellers who refuse to recognize today’s market and will not take the advice of their realtor are not serious or motivated and they run the risk of ultimately selling for a lot less. Studies show that homes that undergo significant changes in the listing price take longer to sell — and sell for 9% less on average.

When selling your home in today’s declining market its important for you to price your home correct the first time. If you price your house too high and are forced to reduce again and again you are alerting the public that your home is failing to sell. You want to avoid having the buyers think there is something wrong with your house.

Should you be presented with an offer realize that in this buyer’s market most potential buyers these days are going to open with a lowball offer. Don't get insulted. If you get an offer take it very seriously. Negotiations in the current market typically stretch out twice as long as they did during the housing boom. If you get an offer make a reasonable counteroffer or you risk running off an interested party with unnecessary games. Remember, other potential buyers may prove hard to find in this market. People are worried. They're spending less, and that is rippling throughout the economy. Continuing price declines in the once-booming housing bubble markets are also keeping consumers on the sidelines. Many of them don't want to commit to a purchase until they are sure prices won't go much lower. Tighter mortgage restrictions are also keeping buyers from being able to purchase right now. If you snag a buyer do everything you can to not let him get away.

Here is a rundown of what is on the market in Park Place II right now:

The Townhomes

There is one Adams model that is currently listed for $319,900. It was sold in February for $300,000 and the buyers were not able to move in due to personal circumstances and have put it back on the market. It has been on the market for 12 days. There is one Adams model currently under contract after being on the market for 97 days. There were 4 Adams models sold so far in 2008. One for as high as $315,000 on the market for 100 days and one for as low as $300,000 on the market for 202 days. The average price that an Adams model sold for in 2008 so far is $306,000 with an average of 157 days on market.

There was 1 Drake model that was on the market for sale listed for $312,900. It was on the market for 103 days and the sellers finally decided they needed to rent it out. The other is listed for $315,900 on the market for 2 days. After being on the market for 103 days, there is one Drake model under contract for $285,000 and another in attorney review for the same amount after being on the market for only 8 days.

There is one Bradford model currently listed for $309,900. It has been on the market for 215 days. This unit was under contract twice and has fallen through twice due to financial circumstances. Two Bradford models sold so far in 2008. One for $295,000 on the market for 85 days and one for $287,500 on the market for 227 days. The average sold price of the Bradford model sold in 2008 is $291,250 with an average of 156 days on the market.

There are no Clarke models currently on the market. No Clarke models have sold so far in 2008.

There is one Eton model currently listed for $228,900 and has been on the market for 21 days. One just sold for $222,900 and was on the market for 43 days and another (foreclosure) sold for $203,500 and was on the market for 96 days.

There is one Heritage model (3 bedrooms/3 baths/end unit) listed for $354,999 which has been on the market for 47 days. There was one Heritage model sold so far in 2008 for $333,000 after being on the market for 164 days.

There are no Legacy models (3 bedrooms/3 baths) currently on the market. There is one Legacy model currently under contract. The list price was $349,900.

The Condos

Three 1 bedroom condos (The Berkeley model) are currently listed. One for $207,500 on the market for 45 days, one for $205,900 on the market for 47 days and one for $199,900 also on the market for 47 days. There has been only 1 sale of this model sold so far in 2008. It sold for $195,000 after being on the market for 173 days.

There are two 2 bedroom one level condos currently listed.

An Essex model is listed for $247,900 on the market for 53 days and another Essex model listed for $249,000 on the market 2 days. There was one Essex model sold this year for $235,000 and was on the market for 202 days.

Two Baybury models with the loft are currently under contract. One was listed for $299,000 and was on the market for 35 days. The other with a list price of only $252,500 was on the market for 84 days. There was only one Baybury w/loft sold so far in 2008 which sold for $281,000 after 151 days on the market.

There are currently two 2 level condos listed. This is the Baybury model with the full finished deluxe basement. One is listed for $309,900 and has been on the market for 158 days and the other is listed for $269,000 and has been on the market for 30 days. No other model like this has sold in either 2007 or 2008.

There are no one level Baybury model condos currently listed. There have been two sales of this model so far this year. One sold for $240,000 after being on the market for 107 days and the other sold for $250,000 after 222 days on the market.

There are no 3 bedroom one level condos currently listed. One just sold for $204,900 and was on the market for only 3 days.

Rentals

Current Active Rentals:

There is one 2 bedroom Baybury condo w/a full finished basement currently listed for rent. The rental price is $1,900 a month and it has been on the market for 45 days now.

All of the number of days on the market were effective as of June 21st. Depending on when you are reading this column…the number of days is probably higher now.

Right-Pricing still remains essential to successful home marketing as does keeping your condo or townhouse in beautiful condition; making sure its clean, de-cluttered, shows well and is pretty much move in ready.

When you’re ready to sell, please call me, your “ON-SITE” Park Place II Specialist and Expert, for a Complimentary Market Analysis of your condo or townhouse. It would be great to meet more of my neighbors and I would be especially privileged if given the opportunity to help you market and sell your home here in Park Place II.

If you decide that you want to start looking for a new home, please visit my website for all the homes that are currently listed on the Multiple Listing Service for all counties here in New Jersey. If you’re looking to relocate out of state, you can view listings all over the country and overseas as well. www.Theresa-nj.com

If you would like to get in touch with me via email, my email address is: TTrentacosta@remax.net.

My direct phone number is 732-904-0701.

Check back to my Park Place II Market column every few months for important market information exclusively for Park Place II homeowners or visit my Park Place II Blog where you can interact with me and your neighbors. www.parkplaciiblogspot.com

I thank you for the opportunity to serve you!

See you in the neighborhood!

Theresa Trentacosta
Your Park Place II Specialist
#1 Home Seller in Park Place II

*Information taken from the Monmouth County MLS. Some information credited to the Otteau quarterly report and other real estate experts including Kiplingers.