If you have ever purchased a home, then you know how much emotion goes into the selection process. Buying a home is not like buying something off the shelf at a consumables store, rather it is a process in which we determine how we will be living our lives in the near future. A prudent buyer knows this and therefore should create a process that does not allow emotion to initiate the home selection process.
What do I mean by all of this? Well, with over 3,000 homes on the market in the Tallahassee Board of Realtors Multiple Listing Service (MLS), you can imagine that quite a few are not priced to sell. As a matter of fact, based upon our current Tallahassee Home Sales Success measurement, we can see that less than 40% of the homes entering the market are selling right now. In order to buy safe, you need to take the correct first step!
Home Sales Success In Tallahassee
In the real estate graph above, we see the measurement of homes sold versus homes put on the market, over time. For example, in the past 90 days (Sold 90), we can see that the homes sold were 28% of the amount of homes listed over that same time. By tracking this trend, we can see if sales rates are increasing or decreasing. Unfortunately, the evidence above suggests that short term trends are showing lower success rates.
The one-year trend (Sold 360) demonstrates that even with seasonality removed, Tallahassee home owners are less successful selling their homes today than they were a year ago. The success rate has dropped to roughly 38% and the short-term trends suggests that they will be getting worse.
Understand The Inventory Before You Buy A Home In Tallahassee
The reason that we look at the sales success rate trends when buying a home in Tallahassee is to understand what to look at during our property search. If we look at over-priced homes (we know that 62% of them will not sell), then we are creating a chance to become emotionally attached to a home that is most likely unattainable. Why fall in love with a home that you cannot buy? Or worse, that you can buy but you have to pay more than fair market value?
The First Critical Step To Buying A Home In Tallahassee
The information above suggests that the first critical step that you perform with your real estate professional is to create a list of priorities that you desire in your next home. List the "gotta haves" as well as the "wants." Your real estate professional should have a very detailed home-buying process that steers you clear of emotional selection. The process should begin by eliminating all of the "over priced" homes so that you can focus on the ones priced to sell. Once you have created a safe buying environment, then it is OK to let your emotions run wild. After all, buying a Tallahassee home should be fun!
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Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.