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Tuesday, February 17, 2015

Who was the typical home seller in Florida in 2014? Who will the typical home seller be in 2015?

Who was the typical 2014 Florida home seller?  The typical Florida home seller in 2014 had lived in their home eleven years who eventually sold their home for ninety-seven percent of  the listing price.  About half of these sellers had reduced the listing price at least one time.

About fifteen percent of the sellers had delayed selling because they were underwater in the mortgage.   A further indicator of the market is shown by the twenty-nine percent of the sellers offered some type of incentive to buyers.  As the market shifts in 2015 to favor sellers this will likely go down.

How did the seller find their real estate agent?   Thirty-five percent of the sellers located their real estate agent through a personal referral while only twenty-two percent used an agent they had previously worked with in a transaction.

Ninety-two percent reported they had their home listed on the local MLS system - still the most accurate source of homes for sale in the Brevard County, Florida area

Were the sellers satisfied with their agent's performance?   Eighty-one percent said they would use their agent again.  Something I don't understand is that if only twenty-two percent used an agent they previously used but over eighty percent said they would use the same agent again, where is the disconnect? 

What about for sale by owner (FSBO) sellers?   In Florida twelve percent reported they used  the FSBO method.  Of these, thirty-three percent sold to someone they already knew.  

Why do sellers choose the FSBO method?   Fifty percent reported it was because they did not want pay a real estate agent fee.  FSBOs typically had a lower median selling price than agent assisted sellers although I will not quote the statistics here.  Suffice it to say the difference is significant even after the real estate professional fees are taken away.  FSBO is not always the best route!

The real estate market is cyclical with change occurring steadily rather than rapidly.  For this reason buyers should expect the typical 2015 Florida home seller to be very similar to the 2014 seller with some slight changes.

What are some of the changes I (the author who admittedly has no crystal ball) expect in 2015? 

agent@moving2brevard.comBased on the above there will be less seller assistance (closing costs or incentives) offered to buyers in 2015.

As the Brevard County, Florida inventory is still only at about 90 days, the market will favor sellers - especially with fewer move in ready homes on the market - meaning prices will continue to rise.   

Multiple offers will be a common occurrence so buyers need to prepare to compete as well as act quickly once a home is found.

If you are considering buying or selling a home in Melbourne,  Florida, please give me a call at 321-693-3850.


SOURCE:   
2014 Profile of Home Buyers and Sellers,  
NATIONAL ASSOCIATION OF REALTORS®

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