Sarasota homes for sale will not sell if sellers refuse to FACE market reality. Forbes magazine exposes 4 Florida cities with the most OVERPRICED properties. However, there’s MORE to the story than a list of cities with “overpriced” properties.
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News stories don’t always relay the complete story.
In this case, there’s more to the story than just a simple list put out by Forbes magazine of “overpriced” properties in 4 Florida cities.
Forbes magazine ranked markets it considered the most overpriced based on the ratio of the median initial list prices compared to the median list prices at the time the properties actually sold. It also factored in how long the properties stay on the market.
In addition, the magazine considered expert forecasts of price increases in the areas, which could be what encourages homeowners to price high.
The top 10 areas where Forbes found the most over-priced properties were:
1. Orlando
2. Miami-Fort Lauderdale-Pompano Beach
3. Jacksonville, Fla.
4. Baltimore-Towson
5. Chicago-Naperville-Joliet
6. San Antonio, Texas
7. Denver-Aurora
8. Tampa-St. Petersburg-Clearwater
9. Indianapolis-Carmel
10. Austin-Round Rock
Source: Forbes, Francesca Levy (12/03/2009)
What has Forbes failed to mention or discuss?
Most sellers today MUST list higher than market to try to break even without having to short sell. As you may or may not know, short selling requires hardship. The debt owner must agree to allow the borrower to sell for less than what is owed…or else. The “or else” is for the seller to show up at closing with the difference between what is owed and for what the property sells. Few homeowners have the financial ability to pay the difference.
Therein lies the conundrum: homeowner/seller/borrower can’t prove hardship; homeowner/seller/borrower can’t afford to pay the difference.
Therefore, many sellers list at break even, despite the list agent’s strong evidence of overpricing. In this case, what is the homeowner to do? Homeowner needs to sell but can’t sell.
Sarasota homes for sale (fortunately) did not make Forbes’ “hot” list…this time at least. Still, many Sarasota homeowners suffer the same fate as homeowners in the four cities hitting the list. Naturally, many homeowners are praying they can hold on long enough for prices to increase…or for a cash buyer to overpay for their property. I wouldn’t hold my breath for either prayer to get answered. What do you think of this conundrum? What alternative exists? What would you do in this situation? Please scroll down to share your thoughts.
