Overprice or Underprice – What is better???

pricetagThere is an art to pricing a property appropriately.  You want to get the most money for the sellers as possible but not price it out of the market.  A really attractive price will certainly draw lots of attention, but you do not want the sellers to leave money on the table either.  It can really take a lot of thought to come up with the just the right number.  Some people use the argument that underpricing a property can cause a bidding war and drive the price upwards.  I usually lean in the exact opposite direction.  I tend to think that overpricing properties, just a little bit, actually brings in greater revenue for my sellers.

As it turns out, I am not the only one who has drawn this conclusion.  Florida Realtors recently put out an article that agrees.  According to data published in the May issue of the Journal of Economic Behavior & Organization, new research suggests that pricing a property 10-20% under market value actually netted the sellers less money.  Often times it did cause a bidding war but not enough of one to make up the substantial difference caused by underpricing it initially.  On the other end overpricing the property by around 10-20% did net the sellers a slight gain.  The study also indicated that when buyers were presented with a slightly higher purchase price they often looked for positive attributes to justify the price.   The same was true on the other end.  When the price was lower, they wondered what was wrong with the property.

Of course, there are many factors to consider when pricing a property for sale.  One of them is the timeframe in which the seller needs to sell.  You don’t want to be priced too high if you need to move your property quickly, and long market times increase the sellers’ carrying costs which eat in to their profit.  The long of the short is that you need an aggressive, knowledgeable professional to price it for you.

A Nectar Real Estate professional is always ready to help you with your real estate needs.  Feel free contact us any time!

Florida’s Isleworth Community Turns 25

Tiger on the Isleworth Golf Course
Tiger on the Isleworth Golf Course

In Central Florida, we have many communities that have garnered national attention and prestige, but none is as acclaimed or renowned as Isleworth. Located in Windermere, FL, Isleworth saw its fist residents move in 25 years ago, and the community is just as sought after now as it was at its inception.

The property has garnered much attention over the years for its celebrity inhabitants. Legendary golfer Arnold Palmer, was the first, but he has been followed by Shaquille O’Neal, and Tiger Woods to name a few. The community consists of 320 homes with most of the inhabitants living their on a full-time basis, and in this current real estate market, there are typically 10 percent of the homes on the market at any given time.

Nestled amongst the shores of the Butler Chain of Lakes, the Isleworth Golf Community features an Arnold Palmer golf course that even after 25 years is regarded as of the most difficult and scenic courses in Florida. The community offers a number of events throughout the year for its members, including the Tavistock Cup. The grounds include several tennis courts, a sculpture garden, and the world class clubhouse that features 3 restaurants. Isleworth offers its residents the epitome of luxury and class and a location that can not be beat. 35 of the original families in Isleworth still call it home today. A 25 year commitment shows how much the residents truly believe in an enjoy Isleworth!