"Home Value Confusion? You Bet!"

     So you want to sell your home in Palm Coast, FL...  What pricing strategy will you follow?  Hint:  It is no longer 2005 and buyers are a tiny bit smarter than they once were!  If I come to visit you to discuss putting your home on the market and your opening comment is, "We are NOT going to give our house away!," we will have some significant work to do!

     If you like to study the numbers - and I do - you will see an obvious (and predictable) phenomenon in our Flagler County, FL, Association of Realtors MLS (Multiple Listing Service).  When the smoke clears away, what we really have is two distinct MLS databases.  One is the part of the MLS where people have their head in the sand and are dreaming of 2005.  Since we are near Orlando and Disney, we'll call this database Fantasy Land.  This is where houses are priced 20% to 100% over the current market and will never sell.  This is where you see numbers like "1,785 Days on the Market."  Ouch!

     The other area is where folks have hired experienced local agents and priced their homes to sell.  They have studied the market and transitioned from confusion to clarity!  This is what we call Reality Land.  Houses will generally sell 2%-10% off list price and get closed within 3-6 months.  These sellers know they will have to endure some hurt... may have some equity... and are highly motivated to cut their losses and go on to the next adventure.

     In the first 2 months of 2011, cash transactions in Palm Coast and Flagler Beach, FL have outdone mortgaged deals an astonishing three to one!  Guess what?  These have not been on expensive, overpriced Fantasy Land homes.  Distressed property (Short Sales and Bank Owned) sales continue to dominate the market.  The leading housing indicator, the Case-Shiller Index (Standard and Poors):  www.businessinsider.com/december-case-shiller-2011-2,  shows 9 of the 15 shakiest markets to be in Florida through 2012.  Also, Mr. Shiller, Yale Economist, says that we may see another 10-25% drop in price before it's all over!

     Bottom line?  If you want to sell, get your price down and take your medicine.  Oh... and if you are a buyer... that's a good thing!  Pssssst!  Don't try to "time the market," as speculation has been the ruin of many in recent times.