Silvia Dukes, BSBA, CIPS, TRC, AHWD,

Myth or Reality? Do Homes Really sell far below List Price?

What home buyer wouldn't be dreaming about getting one of those "great deals" that they have been hearing about for so long now? You know, the cousin of their neighbor's wife just bought a great place with all the bells and whistles for practically peanuts after making a ridiculously low offer?

Because of stories like this, buyers are inclined to push the issue and make offers that are far below list price although they have been given comparable sales information by their REALTOR® and have looked at many "deals" only to find them not to be up to their standards, needs or desires. When they finally do find a home that fits their needs and they make their low offer in spite of better information, they are disappointed when their offer is rejected.

Numbers can also tell stories. Here is a six-month history of list price to sales price ratios for homes sold in Hernando County, Florida. While this is an example of just one market area, it may very well repeat itself in many other market areas and buyers can just ask their REALTOR® for this information. The table indicates average and median list and sales prices as well as the list to sales price ratio.

While some may consider these ratios surprisingly high, they also indicate two things that both buyers and sellers should consider:

1. The reason these properties sold is because they were priced correctly for the market.
   
2. Properties that are priced correctly will sell within a reasonable percentage point of asking price.

The above information includes all residential home sales in Hernando County from April 2009 through September 2009.

Lowest priced property: $5,500 for a 2 bedroom, 2 bath home, built in 1980, and destroyed by fire. This property was sold for the land only.

Highest priced property: $675,000 for a 3 bedroom, 2 bath, 2 car garage home, 4000 square foot living, built in 1998 on 17.3 acres of land.

To further illustrate the point, a specific example was used to determine the list to sales price ratio. The following data reflects the average and median list and sales prices as well as the price ratio for a property with specific criteria. Again, the ratios are surprisingly close to the broader selection above.

Sales and listing data include distressed properties such as those offered as short sales and foreclosure homes as well as market sales.

Do Homes really sell far below List Price? Myth or Reality? You decide!

September 2009 Real Estate Market Report: Hernando Beach, Florida - Hernando Beach South

The direct access areas are located in the northern parts of Hernando Beach and include all of the area north of Companero Entra. The southern areas are Hernando Beach Central and Hernando Beach South which require boaters to use a boatlift to gain access to the canals leading to the Gulf of Mexico.

This real estate market update of waterfront homes for sale in Hernando Beach covers the most southern area of Hernando Beach, Hernando Beach South. This subdivision is a non-gated but deed-restricted community located on wide and deep fresh water canals. There is a private community boat ramp available to residents only.

Inventory of homes for sale in Hernando Beach South remained stable; however, average and median list prices have dropped indicating price reductions in the homes for sale inventory. One home was sold in this neighborhood during September and there are none currently under contract.

Please also read the market reports for the Hernando Beach direct access neighborhood and the Hernando Beach Central neighborhood of this fine waterfront community.

Offered for Sale: 16

Price Range: $164,900 - $550,000

Median: $348,388

Average: $339,330

Sold in September 2009: 1

A two bedroom, 2 bath, two-story stilt home with 1597 living sf sold for $165,000 CASH after 84 days on the market representing 75% of the asking price.

Sales Data derived from Hernando County MLS as of 10/15/09, believed to be accurate but not guaranteed.

September 2009 Real Estate Market Report: Hernando Beach, Florida - Hernando Beach Central

Hernando Beach, Florida, is a waterfront community located along the west coast of central Florida just north of Tampa. This community offers a wide range of homes located on saltwater and freshwater canals.

The homes in neighborhoods on freshwater canals are Hernando Beach Central and Hernando Beach South. Boaters living in Hernando Beach Central and South use a boatlift to gain access to the saltwater canals to the north which lead directly to the open waters of the Gulf of Mexico. For this reason, properties located in these two neighborhoods of Hernando Beach are identified as "indirect" access. There are also a number of marinas located in Hernando Beach offering dry and wet boat storage facilities.

This real estate market update covers the central section of Hernando Beach, Florida. This area is not gated nor deed-restricted, homes are located on wide and deep freshwater canals.

Inventory has remained stable and while there has been little activity in recent months in this neighborhood, there is a silver lining with two homes currently under contract.

Please also read the market reports for the neighborhoods of Hernando Beach with direct Gulf access and the Hernando Beach South subdivision.

Offered for Sale: 9

Price Range: $169,000 - $479,000

Median: $259,000

Average: $289,956

Under Contract: 2

Of the two homes under contract in Hernando Beach Central, one is pending, the other is under contract with contingencies.

Closed Transactions in September 2009: None

Sales Data derived from Hernando County MLS as of 10/15/09, believed to be accurate but not guaranteed.

September 2009 Real Estate Market Report: Timber Pines, Spring Hill, Florida

Inventory of Homes for sale in Timber Pines, Spring Hill, Florida has decreased over the previous month. There are 69 villas and 70 single family homes available for sale in the Timber Pines Country Club community.

The number of homes sold in September in Timber Pines also decreased over August to a total of 12; however, none of these were distressed sales. Number of homes under contract in Timber Pines, however; increased. Among those under contract, only one home is offered as a short sale, and one other is offered as a foreclosure home.

Again, Timber Pines home sales statistics remain stable. The average and median price levels for Timber Pines home sales are at higher levels than for average and median price levels in Hernando County as a whole.

Timber Pines is a 55+ Country Club community offering an active life style with several golf courses, two community pools, Activities Center, Clubhouse, Performing Arts Center, as well as many social clubs and events. The community is a gated community with an park-like ambience with 24-hour security.

Timber Pines is located off US 19 in Spring Hill, West Central Florida on the Gulf Coast of Florida, also called the "Nature Coast". Tampa International Airport is just a 45 min drive via the new Suncoast Parkway.

Actively Listed Homes for Sale in Timber Pines: 148

Price Range: $60,000 - $399,000

Average: $136,819

Median: $129,888

Total Transactions Closed: 12

Price Range: $85,000 - $250,000

Average: $143,367

Median: $137,500

Days on Market: 278

Of these 9 properties were single family homes, three were villas.

Total Number Properties under Contract: 15

Pending Contracts: 10, Contingencies: 5

Price Range: $72,000 - $209,000

Average: $132,697

Median: $139,900

Average Days on Market: 207

Data derived from Hernando County MLS as of 10/9/09 and believed to be accurate but not guaranteed.

This morning, NASA had a space probe crash into the moon. The probe was launched in June and the purpose for this exercise is to determine whether there is water on the moon by examining the resulting dust cloud from the crash.

These photos of the "undamaged" full moon were taken at the beginning of October 2009 in Hernando Beach, Florida.

Enjoy!