"The median price an an existing local home sold last year was $142,000 up 30% from the $109,900 recorded for 2004 - and more than double the $70,700 norm registered just seven years ago." These figures and increases were parallel with the state's median figure which rose 29% (figures provided by the Florida Association of Realtors).
As with anything, there are two sides to every story. Marion County is still considered one of the highest value to home ratios in Florida - basically buyers get more for their money here than most areas of the state. Who wouldn't be interested in purchasing a top-notch luxury home in Ocala for $500,000 compared to what that same home would be worth in say Palm Beach or Miami? Considerable difference!
Others feel that Ocala may be becoming "overvalued" - National City chief economist Richard Dekaser told the Star Banner "...in the course of 2005, we saw a spread of overvaluation. It wasn't so much in your part of the state (Central Florida) at first - but by mid year, the state as a whole was experiencing some home prices that were out of line with historic norm. That doesn't mean there is going to be a bust in Florida...what can happen is that you will see an end to the ferocious increases."
It's clear that although we have had a considerable year of steady price increases across the entire county - where the value of land was up at a phenominal rate (thus creating price increases on existing homes as the land beneath them became more valuable, and the understanding that in a lot of "close-in" subdivisions those lots were being purchased and built upon, so if you wanted "in" on your favorite neighborhood, an existing home was your only option).
We currently are seeing what we like to refer to as a "market correction" where it is self-adjusting to a more reasonable price range. The rise has stopped, but has by-no-means dipped down. It was a hard transition for some sellers when just as the curve was hitting us, the speculation of increased prices was still there, so often sellers would over-price their home with the expectations that the market would catch up with their slightly over-priced (at the time) home. When the market leveled out, those homes were placed above market value and eventually had to drop from the speculated value to actual market value or lower to regain interest. Usually the price per square foot is the number you want to look at, because breaking it down is what buyers look at. "What kind of home am I getting for my money?" All things are considered such as upgrades (tile, wood cabinetry or flooring, granite countertops, etc.) and structural additions such as swimming pools, garages and barns but that bottom dollar mark has swayed many-a-buyer in their final decision making.
If you want to know what a home is worth, you'll have to take an objective look at what's selling in your neighborhood (and is why a Realtor will give you a Comparative Market Analysis on your home to show you up front what your home is worth). A lot of people believe that their home should be priced along with what their neighbor or friend has their home priced at. That is not necessarily true - you can price your home at whatever you like, what you have to look at is what they are SELLING for. With a CMA you will be able to see the price of your competition (active homes on the market), the price of homes that had recently gone pending (what's moving on the market) and then the prices of sold homes in your neighborhood (and you can see the difference between their asking and sold price). If your home's market value is at $300,000 - you can price it at $400,000 if you'd like to, but don't expect to get a lot of activity on it if homes are selling in your neighborhood for $300,000 or lower. Buyers won't pay more for a home if the value is not there, remember, their agent also does a CMA on the homes they have narrowed down and are going to make a decision on. Their agent will break down the price per square footage on each home and they make a decision based on the market value of that home. A lot of times buyer won't make an offer on an overly-priced home because 1) If they make a lower more realistic offer than what the seller has priced it at, it may cause them to become offended at the asking price and kill the offer AND 2) It's much harder on them to negotiate because they feel their median offer is already inflated due to the over-priced home. The quickest way a seller can move their home is to price it at market value.
Art & Brigitte Shultz
The Shultz Team
#1 Team at Re/Max Premier Realty
Ocala, FL
Toll Free: 800-243-4087
Direct: 352-291-1276
Info@OcalaVisualTours.com
www.OcalaVisualTours.com
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