Southwest Cape Coral Market Report 2023

How much does it cost to build a custom home in Florida?

It’s no secret that Florida is one of the most popular states in the nation to call home. In fact, late last year the US Census declared it to be the fastest-growing state in the entire nation. While people first started coming to the state in large numbers in the 1950s, the growth has only continued, year-over-year. Between 2021 and 2022, Florida saw nearly a two-percent increase in its population, as more and more people came to the area in search of blue skies and warmer temperatures, as well as the opportunity to enjoy a true Florida lifestyle, with beaches, golf courses, boating, and more easily within reach. 

If you’ve always dreamed of owning a Florida custom home, but you’ve perhaps been a little worried about the cost, you may find that Florida Custom Homes aren’t necessarily out of reach at all. There are plenty of options out there to fit a variety of budgets, whether you’re hoping for a new home in Southwest Florida, South Florida, Northern Florida, Central Florida, in the Panhandle, or up and down either coast. Florida custom home builders are available to help work within your budget, while also delivering the home you’ve always wanted and desired. So, what should you expect pricewise when it comes to building a custom home in Florida? 

The cost of buying a home in Florida

To understand that it’s best to look at some of the averages when it comes to Florida homes for sale right now. By starting out with the average cost of a home in the state, then narrowing it down to the area in Florida in which you want to live, you’re better able to see a good estimate of what a custom home may cost in the state. 

In mid 2023, Florida Realtors put out an updated housing report, showing that single-family home sales were holding relatively steady, year-over-year. The median sale price for a single-family home in Florida was nearly $420,000 in May 2023, which was a zero percent change from the previous year. The average sale price, statewide for May 2023, was close to $602,000, which again, was almost identical to the average sale price from May 2022.  

Like almost every other state in the nation, however, prices do vary depending on location. There are Florida custom homes close to the beach and overlooking water views, but there are also homes that overlook the local golf course, ones that are situated in amenity-rich neighborhoods, and homes that set in rural sections of the state. While you can start with statewide averages, you then need to focus in on the area of the state you want, the community, or the neighborhood where you hope to build a custom home in Florida. This will likely impact the price you pay. You may end up with a location that’s lower than the average, right on par, or even higher than the statewide average.

Generally, home prices do tend to get higher when you choose to build closer to the coast. Lots close to the beach, or overlooking water views do tend to be more expensive than locations that are in-land. Remember, though, there are also plenty of rivers and lakes that offer water views and water access in Florida. You will probably also find that prices differ within communities and neighborhoods, too. If you want to build in a place that allows you to virtually boat right up to your own backyard, you’re probably looking at some increased costs. A lot of people want direct Gulf access in Florida, especially if they have their own boat, or they’re planning to have a boat in the future. 

Apart from places like Orlando, which naturally commands higher prices because its homes are close to the major theme parks, you may want to take your search to Central Florida if you’re hoping to get a better price, but don’t mind a bit of a drive to get to area beaches and the waterfront. If you have your heart set on a certain location, such as the Gulf Coast, you can also try searching in areas that are nearby, but not necessarily the highest priced. This is where you’ll probably find a better deal if you want to build a custom home.

Depending on which location you choose, you may find that you’re paying more than you expected to, even when you don’t opt for what you thought was a high-priced location. Places like Cape Coral, in particular, have seen home prices go up in recent years. The city often ranks high in terms of the most desirable places in Florida to live, and that’s helping draw even more residents to the area. In fact, even the US Census Bureau considers Cape Coral one of the fastest-growing cities in the nation. When you compare its home prices, Florida Realtors shows a median sale price of $445,000 for a single-family home in Cape Coral-Fort Myers, as of May 2023. As you can see, that’s more than $25,000 higher than the statewide median sale price for the same time period.

On the other hand, while buying in the Cape Coral-Fort Myers market may be higher than the statewide median sale price, it’s a bit of a bargain when you compare it to Collier County, which includes Naples, Immokalee, and Marco Island. For that market, the median sale price for a single-family home in May of this year was $810,000. In terms of Miami, Fort Lauderdale, and West Palm Beach, the median sale price was $610,000. Obviously, there is a difference in where you look for a home in Florida, and that’s true for Florida custom homes for sale, too. 

If you’re worried about staying under budget, you can always choose to take your search to the central part of the state. Locations, such as Sebring in South Central Florida, Ocala, which is south of Gainesville, and Homosassa Springs, which is a bit closer to the coast, all had a median sale price for May 2023 that was under $300,000. That’s something to consider if you aren’t already tied to a specific location in Florida. 

How much is land in Florida?

Obviously, the location matters in terms of overall price, so how much does land cost in Florida? The same amount of land will likely vary a great deal, depending on whether you choose a location such as Miami, Cape Coral, or even a smaller community that’s more in-land and much further from the sand and water. There’s a big difference between buying land in a populated city and buying land that’s undeveloped and more rural. Even in-land property that overlooks a lake or a river can cost more than land that does not. 

Beyond location, you’ll have to consider whether the land is already prepped for construction. Are there already roads leading to the main roads nearby? Does the land already have plumbing and electrical hookups, or will you need to start from scratch? All of these things will affect price. You can get an idea of how much land costs in certain areas by searching specific locations you might consider building. Your realtor can help give you an idea of the price of existing land for sale in the community you desire. If you don’t already have a specific property in mind, this will give you a rough idea of the cost of the land, but you still need to consider the costs you’ll incur with building a custom home.

How much does it cost to build?

The cost of building a custom home in Florida can also vary. Nationwide, we’ve seen construction costs increase since the beginning of the pandemic, thanks in part to the rising cost of building materials, such as lumber. Lumber prices significantly increased in recent years.

Earlier this year, Bankrate.com referenced 2022 data from HomeAdvisor, which put the average cost of building a single-family home last year at just under $285,000. Again, that was average, so some homebuyers paid in the low $100,000s, while others paid much more. For the south, the price per square foot was lower than many other parts of the country, but again, prices do vary by location even in Florida. Construction costs commonly include plumbing and sewer connections, lumber, roofing, the home’s foundation, plus heating and ducting, wiring, paint, flooring, and labor, among other things. 

While the location and size of a home factor into its overall cost, so does the contractor you use. More complex home designs can also boost the overall price. Florida custom home builders can give you a more accurate estimate of what you’ll need to budget for and help prepare you for some of those costs. 

How to budget for building costs

Bankrate estimates a home in the south costs about $100 per square foot. In Florida, though, it’s likely the cost could range from $100 to $200 per square foot to build a new home. Oftentimes, a custom home is on the higher end of the scale. To estimate how far your budget will stretch, use those numbers as a rough estimate to figure out how large of a custom home you can afford. Building costs aren’t just regional, though, they’re determined by the size of the home you want, and which materials your builder uses, as well.

A home’s true cost is tied to things like the exterior, the interior, the foundation, all the permits and fees that are involved, as well as outdoor features you add to the property, and even miscellaneous fees. Building costs do add up, especially if you don’t have a firm handle on your budget. For this reason, the cost to build a custom home will likely be higher than purchasing an existing home. Some estimates suggest it costs about eight percent more to build a new home rather than buying an existing one. While construction materials have gone up in price, labor is a big part of what drives construction costs. But don’t let that sway you from building the home of your dreams, because you may be able to make some adjustments that save a little money in one area, especially if you’re hoping to use the money in another area. 

What are the advantages to building?

When you choose to use one of the reputable Florida custom home builders out there, you gain the advantage of ending up with the home you want, rather than just settling for what’s available on the market. With a custom home, you get to make decisions on what you want included, and what you don’t. You don’t have to pay for features that won’t work for your needs, because it is a custom home. When finished, it will be move-in ready and brand new. These are obviously advantages, because you get a modern home with what you want and need, and don’t have to make updates. When you choose Florida, you are already that much closer to major theme parks, beaches, and more, meaning you may spend less on vacation costs too, because you’re already close to what you want and need. 

Why should I hire a Realtor?

A good Realtor can help lead you through the process, whether you’re buying an existing home, or you choose to have a custom home built in Florida. A qualified agent can help you narrow down the search for a new property. Finding the right lot for a new home takes a lot of research, but a trusted Realtor will already have an idea of how lots are priced in certain areas of the state, and in certain neighborhoods and communities. They’ll know where to find land to fit your needs, and they’ll help lead you to the best location for your needs. They may even know about land that hasn’t even hit the market yet.

Florida Custom Homes is a great place to start your home search, especially if you’re hoping to build a custom home in Southwest Florida. We have the access to the most updated market data and can help with the home buying and homebuilding process. We have a team of industry experts available to give you the best possible experience when it comes to building a custom home in Florida. We can connect you to Florida custom home builders who are experienced in building in the State of Florida and can work with you to create the home of your dreams. 

ICF (Insulated Concrete Forms) Advantages

What are the Advantages/Benefits of Building with ICF Insulated Concrete Forms 

When it comes to owning real estate in Florida, it’s important to have a home that can stand up to the force of Mother Nature. While it’s easy to see why people choose Florida for a full-time home or even a seasonal home, thanks in part to the all the beaches and warm temperatures, you also need a home that’s built to handle the weather when things take a turn. The state has seen its share of hurricanes in the past, and that’s why building codes are so strong today statewide. New construction homes, especially those in certain parts of Florida, need to be able to better withstand the onslaught of hurricane force winds.

That’s why it’s so important to consider custom ICF homes. Short for Insulated Concrete Forms, Florida custom ICF homes are not only stronger than traditional homes, but they also have plenty of other benefits and advantages. Florida Custom Homes works with licensed and insured ICF builders in the State of Florida to ensure you are getting a well-built home that can also stand up to some of the state’s worst weather conditions. Custom ICF builders know what they’re doing and are able to deliver homes that are stronger because they’re reinforced to hold up during fierce weather.

While there are obviously other ways to construct a home, custom ICF homes have a number of advantages over traditionally built homes. The ICF blocks are extremely durable, so much so that they’re more resistant to such things as moisture, mold, rot, and even potentially destructive insect infestation. In other words, the blocks are strong enough to hold up during bad weather, but they’re also strong enough to handle the other things that we don’t typically think much about but can wreak havoc on a new home. When you build with ICF Insulated Concrete Forms, you can rest assured you’re building with some of the strongest and most durable technology available for new home construction. 

ICF blocks use panels of foam insulation, with rebar in between. Concrete is then poured in over the rebar. Altogether, the design means you end up with a steel-reinforced concrete wall with built-in insulation. This is why these types of Florida custom homes are extremely well insulated. You don’t even need to use traditional thermal insulation when you use ICF, because they are that well insulated on their own. Although Florida isn’t exactly known for its cold weather, ICF blocks are capable of efficiently blocking out the cold and the heat. Because of the insulation, ICF blocks help protect the inside of your home from outside temperature fluctuations. That’s good news if you want to save some money on your monthly utility bills. That’s true when it comes to drafty homes too. Although you probably will have less of a problem with a new construction home, an ICF built home is designed to be free of drafts. 

Not only that, but Florida custom homes built with ICF construction have the advantage of being better off in the event of a fire. Concrete is a great choice for an exterior wall because it’s fire resistant and can help slow down a spreading fire on its own. This isn’t necessarily the case with a more traditionally built home. The same goes for water resistance. Unlike wood, ICF blocks don’t rot over time. 

Of course, hurricane force winds are extremely fierce, but custom ICF builders know how to make your new home stronger, and more resistant to high winds. Not only is concrete extremely strong, but ICF blocks use steel-reinforced concrete. This means your home is in an entirely new category when it comes to storm resistance. High winds may be capable of widespread destruction, but with ICF construction, your new home is much, much more durable. An ICF constructed home has been specially designed to stand up to harsh weather, helping to keep the home intact, even when other, more traditional construction methods don’t stand a chance. 

Yet another advantage has to do with helping to insulate your home against nearby traffic and other outside noise. With ICF construction, your home is almost naturally soundproof. These types of walls are thick and solid. This helps create a quieter and more peaceful home, which can be a bonus if you’ve chosen to build a new home in a busier area, especially one that might bring in a lot of tourists. 

There’s also the benefit of not having to worry about pests destroying your dream home in the future. The thick concrete barrier of ICF helps keeps pests out, plus insects don’t have anything to feed on, so they won’t be attracted to your home in the first place. This is also an eco-friendlier way to construct a home because most of the materials used in ICF can be recycled.

While you may think Florida custom ICF homes take longer to construct than more traditionally built homes, that’s not necessarily true at all. In fact, you may find it takes a shorter amount of time to construct a new home with ICF blocks because those blocks are already designed to interlock easily and stack together. It often ends up saving time on construction. Although there is a difference in price, you’ll probably save in labor costs because it likely won’t take as long to complete construction. That’s why it’s best to compare not just the upfront cost, but also the cost you’ll incur if construction takes longer than expected with a traditionally built home. You’ll likely save money on concrete, too, because concrete is just one part of the block.

There really are no major drawbacks when it comes to building with Insulated Concrete Forms, or rather ICF. This type of construction if often quicker, plus the benefits are plentiful. You gain a home that’s designed to stand up to the elements, and that’s extremely important when you build in Florida. Constructing with ICF blocks also means you gain a more energy efficient home, a mostly soundproof home, and a more fire-resistant home. These are all great reasons to consider building with ICF, especially if you’re hoping for a custom home in Florida. 

South Florida Real Estate Market - Miami-Dade Home prices continue to rise despite declining housing National Trends 

Home prices are currently soaring in certain parts of Florida, but that doesn’t have to be your reality if you’re one of the many prospective buyers out there considering the Southwest Florida real estate market. To understand the real appeal of buying property in Southwest Florida right now, it’s important to take a look at not only the local housing market in more expensive locations, but also look at how those markets compare to today’s home values in more much more affordable markets, such as Southwest Florida. That’s especially true when it comes to comparing Southwest Florida affordability to locations like Miami-Dade County in South Florida. 

Southwest Florida’s real estate market and home values, how is it affected?

For two consecutive months now, home prices in Miami-Dade County have hit new records, as the median sales price for a single-family home in the area was $600,000 in April 2023 and $620,000 in May 2023. The data, which was recently released by the Miami Association of Realtors, really puts into perspective just how much of an increase we’ve seen, because in May 2022, the median sales price for a single-family home in Miami-Dade County was $575,000. That’s nearly an eight-percent increase, year-over-year. The data also points out that inventory is near an all-time low, not just for single-family homes, but also for condos. Despite the fact inventory is on the rise as of late, total inventory is still down considerably when you compare it to May 2019, which was pre-pandemic. 

It's no secret there’s strong buyer demand in the Miami area and low inventory. While that’s probably great news for sellers, if makes it even more difficult if you’re one of those trying to find and afford a home in Miami-Dade County. The local housing market in the Miami area is imbalanced, and even though housing prices have fallen across most of the rest of the state and the U.S. thanks, in part, to higher interest rates on mortgages, it hasn’t done much for the Miami area. The region continues to attract affluent buyers from places outside of Florida, like San Francisco, Chicago, and New York, and that’s only accelerated the problem of higher home prices. Some of these out-of-state buyers are paying cash and driving up prices even more. While South Florida is definitely an attractive place to buy property, the Miami area is now considered one of the nation’s least affordable in terms of housing. 

But that’s not necessarily the case in other parts of Florida. Looking statewide, data from Florida Realtors shows median sales prices staying relatively flat, year-over-year. While people, especially first time buyers are dealing with the pain of higher interest rates, there’s been some stabilization in terms of price growth. In other words, the trend of rising prices has slowed down a bit. That’s why data shows the statewide median sales price for an existing single-family home in May 2023 was just under $420,000, which is about the same as it was in May of last year. Of course, as we now can see, that’s not the case everywhere in Florida, especially in South Florida where prices are headed up. 

Cape Coral Custom Homes

Southwest Florida Custom Home options?

So, if you’re considering buying real estate in the near future, what are your options? Some of the prospective buyers that perhaps were once in the market for a single-family home are turning to alternatives like condos because the price point is more affordable. High prices are also driving some buyers to places like neighboring Broward County. Still, other buyers are starting to become more open to other real estate options. They’re looking for alternatives that still keep them in Florida, close enough to what attracted them to this part of the country in the first place, but perhaps a bit farther away from Miami. Some buyers are turning their attention to Southwest Florida, and for good reason.

It's not just for new construction, but also for existing homes and land. Southwest Florida is packed with waterfront properties, plus it also gives the opportunity for custom homes. While that’s the case in other markets too, there’s something unique and special about taking your home and property search to Southwest Florida, and it has to do with your budget. 

For those who are new to buying real estate and even those who are closer to celebrating their Golden Years, Southwest Florida is a great option, for several reasons. First time home buyers in Southwest Florida and retirees are discovering they can end up with more home, more space, and more land, dollar-for-dollar, when they take their home search to Southwest Florida. That’s a big draw for buyers who thought they wanted to be in South Florida but are now seeing there are other options out there. It’s clear to see that Southwest Florida home values are strong, especially so in popular places such as Fort Myers and Cape Coral. 

Fort Myers home values

Fort Myers home values, in particular, are strong right now, as we’ve seen steady growth for several years. In recent months, we’ve seen that Fort Myers is in a seller’s market, which means there’s still some competition for buyers hoping to snag a great property, but it’s not as much as the Miami area. Fort Myers is a popular spot for tourists, but also for retirees and for families, some of which are first time home buyers in Southwest Florida. 

While the median listing price in Fort Myers is up a little over last year, as of April of this year it was slightly below $400,000, which is definitely a more attractive price point for many buyers, especially those who’ve been watching the Miami-area market. The median home sold price is a bit lower too, so it’s obvious you can still find some great deals out there, especially if you expand your home search to places like Fort Myers.

Fort Myers home values are something to consider, because if you’re in the market for Florida custom homes, you’ll likely find a more affordable option in a place like Fort Myers than you might find in the Miami area. Florida custom homes don’t have to be out of reach. There are several great examples of Southwest Florida custom homes that check off all the boxes, including staying on budget. If that’s something that’s important to you in buying real estate in Florida, it’s yet another good reason to take your home search to Southwest Florida. If you’re a boating enthusiast, there is ample opportunity when it comes to finding Southwest Florida waterfront homes in Fort Myers. Because the city sits right along the Caloosahatchee River, you’ll find several waterfront communities in the city to choose from. While some of these waterfront properties are on the river, others are on canals and lakes. 

This helps to provide ever more budget-friendly options for buyers who don’t want to give up the advantage of a waterfront property, but also don’t have an unlimited budget to spend. Sure, there are several luxury communities, but there are also some more affordable options, and that’s one of the things that makes Fort Myers such a popular place to call home. If you’re looking for a great waterfront property with room to dock your boat, you’ll probably find it in Fort Myers. 

It's easy to see that today’s home values vary by location and sometimes region, but that doesn’t mean sacrificing what you want and need in a home. Sometimes, the true value is finding another housing market that better matches what you are searching for. Many people are discovering there’s real value in Southwest Florida. 

Cape Coral home values 

Fort Myers isn’t the only city in the Southwest Florida real estate market to offer more affordable alternatives to Miami-Dade County. Another option is Cape Coral, where the median listing home price hit close to $450,000 and the median sales price of homes hit $400,000 at the beginning of the year. While both were up over a year ago, it’s also obviously much more affordable than Miami. If you’re intrigued by Cape Coral home values, keep in mind that it is a somewhat competitive market, and in early 2023, homes there were selling, on average, after being on the market for just over a month.

Homes in Cape Coral tend to sell for slightly less than listing price, so it appears there may be a little room to negotiate if you’re a buyer in Cape Coral, but not a lot. Still, that’s at least a positive sign, and so is the more affordable price point of many homes in Cape Coral. Unlike Miami-Dade, Cape Coral is more of a balanced market, which is better news for buyers. Cape Coral home values are strong, and it’s another good choice if you’re trying to escape the soaring prices presented by another Florida home market right now. 

It certainly doesn’t hurt that Cape Coral still has room to build. It’s more difficult to build new construction in Miami-Dade because there’s not a lot of land left to build on. That’s not the case with Cape Coral, though, and the city’s seen record growth in recent years. While plenty of cities in Florida have waterfront property, Cape Coral has the uniqueness of hundreds of miles of canals. That helps, too, when it comes to more affordable options for Southwest Florida waterfront homes, which is oftentimes a big draw when it comes to buying land and property in Florida. 

Southwest Florida custom homes aren’t just for those with unlimited budgets. Because Cape Coral has a more attractive starting price point than places such as Miami-Dade, it means it may be possible to get the home you’ve always wanted without going well beyond your means. Southwest Florida home values are appealing because you get more for your budget, when compared to some other locations, even in the State of Florida. If you want or need more land to build, or more simply more livable space in a home, Southwest Florida is becoming more and more appealing. 

Both people and businesses are attracted to places like Cape Coral. Just as new homes are going up, more businesses are coming to places like Cape Coral not just for the affordability, but because it means being able to tap into the ever-increasing job market in Southwest Florida. Both Fort Myers and Cape Coral are still growing. In recent years, Fort Myers was ranked one of the nation’s fastest growing cities by population, and Cape Coral continues to attract new residents and businesses, too. While Miami remains a hot location and one of the most populous in the entire state, Southwest Florida continues to get attention itself, thanks to its job prospects, its affordability, its beautiful homes, and its opportunities.

If you’re hoping to see your budget stretch a bit more, and possibly find a housing market that’s a bit more favorable to buyers, it could be worth your time and money to take your home search to Southwest Florida. Not only will you likely find some fantastic options in terms of custom homes and waterfront homes in Southwest Florida, but it’s also likely you may find them at a considerably better price point than you would if you simply stayed only in South Florida. 

While the pandemic certainly changed some things in terms of the nation’s housing market, it also gave some people the opportunities to explore real estate in parts of the nation they had not seriously considered before. Southwest Florida is now set to gain from those with the knowledge to compare markets and see which have the best local amenities and price point, and many times, the answer is clear to see. When it comes to finding some great options for real estate in Southwest Florida, consider the many desirable options that exist right now in locations such as Cape Coral and Fort Myers. Not only are you likely to find a great home or property, but also one that may better fit your needs and the needs of your budget. 

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New Fannie Mae Appraisal Program: Helping or Hurting?
 

Every home must be sold TWICE! Once to the buyer, and once to the bank appraiser if a mortgage is involved.

The second sale may have just become more difficult.

A new program announced by Fannie Mae may slow down the home-sale closing process by causing more disputes over prices between sellers and buyers. In a recent Washington Post article they explained the basics of the program:

“Starting Jan. 26, Fannie plans to offer mortgage lenders access to proprietary home valuation databases that they can use to assess the accuracy and risks posed by the reports submitted by appraisers.”  “The Fannie data will flag possible errors in the appraiser’s work before the lender commits to fund the loan, will score the appraisal for overall risk of inaccuracy and may provide as many as 20 alternative “comps” — properties in the area that have sold recently and are roughly comparable to the house the lender is considering for financing but were not used by the appraiser.”

Using the additional information provided by Fannie Mae, the lender can then ask for an explanation from the appraisal company for any discrepancies and request an amended appraisal. This added step in the process of determining the price of the home to be bought/sold, could add time to the closing process and cost to the appraisal for the additional work.

Why is this happening?

Fannie Mae wants lenders to make informed decisions when agreeing to the amount of a loan that a buyer will be approved for.

“Excessive valuations create the risk of future losses to lenders and investors if the borrower defaults and the house goes to foreclosure.”

What is the process now?

As a seller:

You’ve put your house on the market, picked an agent who has helped you determine that the best price to list your home for is $250,000, and found a buyer willing to pay that price. The appraiser comes to the home and agrees your home is worth the asking price and writes their report. Everything is working perfectly!

As a buyer:

You’ve found your dream home, in the right neighborhood, in the right school district, with the perfect yard, at the high end of your budget, but all the pluses are worth it. You agree on a price and start daydreaming about living in your new home.

What happens after January 26th?

The lender submits the appraisal report to the new Fannie Mae program and they come back with “lower-risk comps” that value the home at $230,000. The lender then turns to the appraisal company to justify the $20,000 difference, adding time and frustration to the process. If the lender does not agree with the reasons for the price difference they will not lend the buyer the amount they need to purchase their dream home and the amicable, agreeable sale turns into a heated justification of the higher price. The buyer may even have to give up on the home if the funding isn’t there. An article by Housing Wire shares the appraiser’s point of view:

“The bottom line, appraisers say, is this could lead to delays to closings and higher costs, as well as a depression of prices in markets where prices are rising. Appraisers complain that if they have to justify every step of their comps for their valuation, rather than those coming from the one-size-fits-all evaluation from Fannie, it will delay closing, throw off buyer and seller timetables, and delay real estate broker commissions.”

Bottom Line

The fear of some real estate practitioners is that if appraisers feel as though they are constantly being second-guessed, they may become more conservative in their assessments, impacting home values and slowing growth in the market.

Here’s to a WONDERFUL 2015!

Here's hoping 2015 is a great year for you both personally & professionally.

Homeowners’ Tough Decision: OTM, FSBO or List
 

At the end of the year, in every region of the country, hundreds of homeowners have a tough decision to make. The ‘listing for sale agreement’ on their house is about to expire and they now must decide to either take their house off the market (OTM), For Sale by Owner (FSBO) or list it again with the same agent or a different agent. Let’s assume you or someone you know is in this situation and take a closer look at each possibility:

Taking Your Home off the Market

In all probability, after putting your house on the market and seeing it not sell, you’re going to be upset. You may be thinking that no one in the marketplace thought the house was worthy of the sales price. Because you are upset, you may start to rationalize that selling wasn’t that important after all and say,

“Well, we didn’t really want to sell the house anyway. This idea of making a move right now probably doesn’t make sense.”

Don’t rationalize your dreams away. Instead, consider the reasons you decided to sell in the first place. Ask your family this simple question:

“What made us originally put our home up for sale?”

If that reason made sense a few months ago when you originally listed the house, chances are it still makes sense now. Don’t give up on what your family hoped to accomplish or on goals your family hoped to attain. Just because the house didn’t sell during the last listing contract doesn’t mean the house will never sell or that it shouldn’t be sold.

Re-Listing with your Existing Agent

For whatever reason, your house did not sell. Perhaps you now realize how difficult selling a house is or that the listing price was too high, or perhaps you’re now acknowledging that you didn’t exactly listen to your agent’s advice. If that is the case, you may want to give your existing agent a second chance. That’s a perfectly okay thing to do. However, if your agent didn’t perform to the standard they promised when they listed your home you may want to either FSBO or try a different agent.

For Sale by Owner

You may now believe that listing your house with an agent is useless because your original agent didn’t accomplish the goal of selling the house. Trying to sell on your own this time may be alluring. You may think you will be in control and save on the commission. But, is that true? Will you be able to negotiate each of the elements that make up a real estate transaction? Are you capable of putting together a comprehensive marketing plan? Do people who FSBO actually ‘net’ more money? If you are thinking about FSBOing, take the time to first read: 5 Reasons You Shouldn’t For Sale by Owner.

List with a New Agent

After failing to sell your home, you may no longer trust your agent or what they say. However, don’t paint all real estate professionals with that same brush. Have you ever gotten a bad haircut before? Of course! Did you stop getting your hair cut or did you simply change hair stylists? There is good and bad in every profession—good and bad hair stylists, agents, teachers, lawyers, doctors, police officers, etc. And just because there are good and bad in every line of work doesn’t mean you don’t call on others for the products and services you need. You still get your hair cut, see a doctor, talk to a lawyer, send your kids to school, etc. You initially believed that using an agent made sense. It probably still does. Contact me and we can sit down and discuss the possibilities.

Freddie Mac: 2015 Home Sales to Hit 2007 Levels
 

According to Freddie Mac’s latest U.S. Economic & Housing Market Outlook, U.S. home sales in 2015 will show increase to the numbers associated with a normal real estate market. Here is their projection:

“We are projecting a 4 percent rise in sales to 5.6 million, which would mark the highest level of annual sales since 2007.”

And their optimism was seconded by both the National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA).  

It seems that an improving economy and jobs market will mean a very healthy housing market.

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