Duncan Duo 1-12-25

Episode Transcript

Speaker 1 (00:00):
Happy Sunday, Tampa Bay. We're with you for another week

(00:02):
here on the Duncan Duo Real Estate Show, like we
are every Sunday at ten a m. Talking about Tampa
Bay real estate like I have for more than a
decade here on WFLA News, your trusted news station, and
always dropping the knowledge on Sundays about what's going on
in our real estate market. When we aren't on air,
Please make sure to follow us at the Dunkin Duo, Twitter, Instagram, YouTube, TikTok, Facebook,

(00:27):
pretty much everywhere out there. Follow us at the Duncan
Duo to get your real estate updates and learn about
everything going on in Tampa Bay real estate at the
Duncan Duo. I talked about my predictions for the real
estate market this year in the last show, but because

(00:48):
it was kind of the first weekend of the new year,
people were still kind of in vacation mode. So I
want to touch on that a little bit again, kind
of what I expect to see in twenty twenty five.
First and foremost, I am expecting a better real estate
year in twenty twenty five in Tampa Bay than we
had in twenty twenty four. First and foremost, I believe

(01:10):
that the end of twenty twenty four, and look, it's
no secret that our real estate market got hammered by
a couple of really bad storms. It caused home sales
to cancel, It caused people to delay their plans, it
caused buyers not to buy, it caused sellers not to sell,
and it obviously recavoc on our area. Four months still

(01:33):
lots of friends and family displaced, still dealing with the
consequences of those storms. So that obviously hurt home sales
in the fourth quarter and caused our fourth quarter to
be the worst quarter in terms of total home sales
that we've seen in a really long time in Tampa Bay.
It's also caused prices to depress, so our prices last
year at the end of the year dropped, and that
trend is expected to continue. So we are going to

(01:56):
see home values in Tampa Bay come down a little bit.
But I believe the reason that it's going to be
a better real estate year is because I think the
second half of the year there is a prospect of
home values going back on the rise. Number one, and
then maybe some minor small interest rate cuts that will
help improve affordability. A little bit, and then hopefully, God willing,

(02:18):
we don't have the storm impact that we had last year,
and I think, statistically, considering last year was unprecedented, I'm
pretty hopeful that next year won't have the same kind
of impact from hurricanes that twenty twenty four had. So
all in all, I believe twenty five will be a
better real estate year. I believe that we'll see some
continued depreciation for the next several months. I think that

(02:40):
will stabilize and hopefully start to swing back in the
other direction by the end of twenty twenty five. And
home sellers that are out there thinking about selling, you
have to understand that the market has changed dramatically. There
are a lot of home sellers still thinking that we're
in twenty twenty three three times and before where we

(03:02):
would see prices rising and that you could price your
home better than or equal to a home that sold
a few months ago in your neighborhood. That just isn't
the case anymore. If you look at home values, we've
gone in Tampa Bay from an average sale price of
five hundred and seven thousand down now to four sixty five.
That is about an eight percent drop in our average

(03:24):
sale price. So across the market. Now again, does that
mean every single neighborhood had this happen. No, But across
the market we've seen values drop on average eight percent.
So you're four hundred thousand do our house? Maybe you
we're three sixty eight now. So because of that, that
will get some buyers back engaged. Prices drop a little bit,

(03:44):
it makes it a little bit more affordable. Will that
will fuel kind of some energy a few more months
of storm recovery, some of our buyer demand and people
relocating here will come back. And I believe that a
lot of the storm stuff and clean outs and the
rest sales that will be caused by the hurricanes, hopefully
there's enough of that cleaning out by the middle of

(04:06):
the year that the second half of the year is
even more promising. So that's my predictions, you know, for
what I expect to happen in twenty twenty five. But
there's a lot that could change that. Certainly, storms, certainly,
unprecedented weather events, you know, unprecedented you know, any kind
of conflict or wars or anything like that could contribute.

(04:27):
But in my experience, after doing this for twenty years,
assuming none of those other unprecedent events, twenty twenty five
will produce more home sales than twenty twenty four, and
I think will end twenty twenty five with an average
sale price that's comparable to you know, where it was
at points this year. It'll drop some and then it's

(04:48):
going to come back up, is my expectation. So again,
hopefully that helps you understand what's going on. And I
want to talk next to condo owners and so if
you're a condo owner and you're thinking about selling your property,
the Tampa Bay market, I've talked about this for months
is really kind of separated into into two markets. You
have condos and then you have everything else. And so

(05:12):
a lot of the things that I talk about in
the marketplace, because condos are a small percentage of the
overall total sales across the entire Tampa Bay area, in
the condo market, a lot of the things I'm talking
about are actually worse. So, you know, I want to
talk about the why behind that, But I also want
to tell people that if you don't have to sell

(05:32):
a condo right now, if you own a condo and
you're like, you know, I could sell it now, or
maybe I could sell it in three or four years,
I would tell you don't sell it now. Truthfully, this
is not the opportune time to sell condos. The inventory
month's supply of inventory on condos in Tampa Bay is
near the same month supply inventory. In other words, the

(05:55):
supply demand curve. The demand is comp to what it
was for real estate during the Great Recession. We have
a massive amount of condo inventory in some zip codes,
in areas fifteen plus months. It ranges from ten to
fifteen months, depending on the part of Tampa Bay that

(06:16):
we're talking about. A whole variety of factors contribute to this,
but I'll kind of summarize them. But first I'll tell
condo owners, if you don't have to sell, don't. If
you do have to sell, and and or you'd sell,
but you don't really have to or you'd sell. But
you only sell if you get to this number. You're
only selling if you can make a profit. Don't sell

(06:38):
because you ain't gonna make it. Okay, I'm being brutally
honest with you, because it's the truth. Right now, the
condo market is very challenging. You've got rising insurance, You've
got rising HOA fees because of all of the milestone
surveys that have to be completed. And then you have
the storms that caused the condos which a lot of

(07:00):
people have a second and third homes. A lot of
those were damage and now those owners don't want to
come back to them. And then that market specifically because
it is a vacation market, the demand is zapped because
the storms and the and the news reporting behind them
in our market. So the condo market is really challenging
right now. So again, if you don't have to sell, don't.

(07:20):
If you do have to sell, be prepared to be
aggressive with your price and aggressive with your condition. We
are literally having condo owners call us and say, I
want you to sell my home and here's my term.
So we're saying no, We're saying we can't be we
can't do that. That's not realistic. That's fantasy land. That

(07:41):
would take a lightning striker a miracle. You know, it's
just not possible, you know. So if you're coming, you know,
to the market and you have a condo, you better
be the best priced condo in your building, and or
very close to that and are very close to best condition.
We're seeing some condo buildings with you know, fifteen to

(08:03):
twenty units and one unit selling a month. To be
that next one that sells when prices are dropping, you've
got to be ahead of the downward trend. You've got
to be so aggressive that that you will just move
the market and that you'll be the next one that
the buyers pick. So if your condition of your condo
is if it's outdated, you better improve it, you better
do the upgrades. And if you don't have the upgrades,

(08:25):
you better price. Is super aggressive so that somebody can
afford to do the upgrades after they buy. Because the
number of buyers for condos right now has shrunk dramatically,
there just isn't a there is not a successful market
for that, and that is going to be a market,
you know, when you separate out the condos, that's going
to be a market that's going to take longer to
correct that segment of our market, that small portion of

(08:47):
our home sales. It's going to take longer to correct
and get prices back moving in a positive direction because
of the hoafee increases, the assessments from all the extra
milestone surveys and inspections that have to be done in
these condo communities, the increase in insurance, which we know
is going to be even more extravagant after these storms
because the insurance companies haven't even had a chance to

(09:08):
address the rates yet. They're too busy at paying out
people's claims. So all of those reasons, people are getting
ahead of that, and so many condo owners are selling,
and it's flooding the market with dementory. They're just way
more people wanting to sell their condo than there are
buyers that are wanting to take on that risk and
buy them. And the buyers that do want to take
on that risk and buy them, they look at it

(09:29):
and they completely understand. They can do math, They can
look up and see how many are on the market.
They know the only way they're buying is if they
get a deal. So the condo market really tough now
where that isn't as applicable. Okay, So if you're talking
about brand new high rises, and I'm talking brand new,

(09:50):
like really contemporary modern buildings, multi million dollar condos, those
it's not hitting as hard because a lot of those buildings,
the attraction and the wealth and the people that buy those,
they're not impacted by this. Condos under a million much
more relevant for everything I've just talked about. But the newer,
modern buildings built the last couple of years, those were

(10:12):
built to higher standards. Those HOA fees aren't likely to
rise as much. And then that audience, truthfully, because they
want to live here or they want to buy in
that new, sexy, sleek building, that segment of the market
isn't being hit as hard. There are still some of
those selling, and there are people in that segment of
the marketplace that will pay a premium for condition or

(10:35):
location within a building because they have the money. They're
not worried about affordability. Anyone buying a condo and worried
about affordability, if that's a consumer sentiment in that particular
price point, that market is crushed. That market is in
a really rough place. The higher end, the uber luxury condos,
those are going to continue to do well as more

(10:57):
wealthy people look at those options and say, hey, I'm
okay buying that. So that's in essence what we see
the kind of duality of single family homes versus condos
going on in real estate market, and kind of a
statistical update for what I expect to see in twenty
twenty five and again when we aren't on there at
the Dunkin Duo. And if you want to know what
exactly is going on with your condo or with your home,

(11:21):
whether you want to know the value, you want to
know our the foreclosure is coming in your neighborhood. You
want to know if the neighbor's house is a short sale.
Do you want to know your value? Do you want
to get a cash offer? Any of those things. Duncanduo
dot com. Just type in your address. It's a quick,
simple form fill out. You type in your address, we'll
reach out to you, We'll let you know about your options,

(11:42):
and you'll continue to get updated on everything going on
in your neighborhood. So you can stay up to date
on the most valuable or the most accurate home evaluation
tool in Tampa Bay at Dunkin Duo dot comryback, We're
going to continue this conversation after a quick break here
on the Dunkin Duo sh So we're back here on
the Dunkin Duo Show talking about the Tampa Bay real

(12:03):
estate market like we do every Sunday at ten. Look,
the storms had a massive impact in our area, but
you know what they didn't have a massive impact on
are listing at one two five one two brick cobblestone
Drive in Riverview in Talavera four bedroom, three and a
half bath, oversized garage. It's a three car garage. Beautiful property,

(12:26):
twenty eight hundred square feet built in twenty twenty one,
so higher construction standards, Multi generational home, modern living, all
for five hundred and thirty five thousand dollars. Expansive kitchen,
large island, elegant white shaker cabinets, stainless steel appliance is
so much more. Make this a kitchen perfect for the
chef and your family. Spacious laundry room, hurricane shutters and

(12:51):
this home again had no impact from the recent hurricanes.
You can find out more about it see all the
pictures in the video at the dunkin Duo dot com. Again,
that is one two five to one two brick cobblestone
Drive and Riverview listed for five hundred and thirty five
thousand dollars. And if you want to get your home
featured on our show, the only homes we feature on
our show are our listings, So if your reels are listening, sorry,

(13:11):
can't help you. If you're a homeowner and your homes
listened with somebody else. Sorry, we can't help you. But
if you want to get your home mentioned on on
our show to an exclusive audience of people that listen
to nine to seventy, you can hit us up at
Duncan Duo dot com and we would love the opportunity
feature home just like this one. Just let us know,

(13:32):
let my representative when they reach out to you to
talk to you about your home, let them know you
want your home to be featured on the radio show,
and we will make sure to do that for you
right here, like we do every single week. So another
thing that I want to get to again. In the
first segment, I talked about the statistics and kind of
things that are happening in you know, in the marketplace,

(13:56):
but I want to talk about credit scores a little bit.
There are a lot of people out there that don't
really check their credit and don't kind of understand how
important it is to buying a home unless they have cash,
and so I want to make sure everyone out there
is checking their credit. You know that you can get
there's free services, there's experience, there's different places where you

(14:18):
can get multiple profiles. However, if you're not paying attention
to it, and again the important part is paying your bills,
paying your bills on time, paying all of your bills.
But if you're not paying attention, sometimes things can show
up that aren't accurate. There's ways to fight things, there's
ways to issue disputes. There are ways that mortgage lenders

(14:38):
can also get things corrected and even corrected in a
rapid rescore where they can simply go to the bank
and submit the documents and then get that get how
the credit would be impacted by that taken off, even
if it's not yet affected in the credit profile. But
the key is far too many people decide, Okay, I'm
going to go out and look for a home, and
I'm going to find my home, and then I'm going

(15:00):
to go get qualified for a mortgage, and frankly, that
is completely backwards. I cannot tell you how many people
have made disastrous financial decisions. Found out that the home
of the dreams they can't buy, found out they can
qualify for less, or found out they can qualify for more,
or found out simply that they need to do some
other things with their taxes simply by not getting with

(15:22):
a mortgage lender sooner. If you're thinking about buying a
home in twenty twenty five. If you're thinking about it,
look at your credit know what your score is, have
an understanding of it. If your credit score isn't accurate
and you still want to buy and there's some problems
with it, talk to our lenders. You can reach out
to our team. We'll put you in touch with the
best people. Eight one, three, three, five, nine eighty nine

(15:45):
to ninety caller text us. We will put you in
touch with great lenders that can look at the situation
and determine what you need to do to correct it now.
Sometimes it's paying off a small credit card. Sometimes it's
moving money from a bank account to pay off a car.
Sometimes it's as simple as you know, disputing a late

(16:06):
pay and getting it removed, or you know, a medical
collection that isn't accurate. There's so many things you can
do with your credit, and way too many people are
unprepared and they get to the point being ready to
buy a house and then they find out that they
can't or they can't qualify because of an issue with
the credit that they seem to be be fuddled by.
I literally sometimes I find it humorous when I hear

(16:30):
some of the stories from my agents and they're like
they were just dumbfounded that they had a full eighty
credit score. They couldn't believe it. If you were going
to buy a home in twenty twenty five, look your
credit before someone else does. Look your credit to determine
if it's accurate, before you get, you know, run over
by a truck, buy a mortgage. When you're telling you
got all these crazy things wrong. People will literally say,

(16:52):
I don't want to check my credit because I heard
it hurts my score. Have I heard your score for
like three points at best, But if you don't check it,
you could be hurt your score hundreds of points. Hundreds
of points could be wrong. So yes, multiple credit inquiries
in a period of time can very infinitesimally reduce your
credit score. However, you know not looking at it will

(17:16):
reduce your credit score a lot worse because you don't
know what's going on, and there could be things in
there that are inaccurate, that are wrong, or that you
need to make adjustments with. So please stay on top
of your credit. Look at it, especially if you're buying
a home in twenty twenty five. Know what's going on
with your credit profile, be prepared, and hopefully that helps
some people out there that you know, Hopefully we can
get to a point where less and less I hear

(17:36):
from my agents. You know, I sat down with somebody
and we got them with our lender and found out
that their score is for eighty. And they just couldn't
even believe that their score was for eighty. They didn't
understand that they'd had seventeen pass due bills that they
hadn't paid. So check your credit, get it corrected, pay
your bills on time, and you got a much better
chance of having a great credit score. So we'll be

(17:57):
back after a quick break here on the Dunkan Duo Show.
Back here on the Duncan Duo Show, talking about the
Tampa Bay real estate market and one thing that you know.
Andrew Duncan here at the Duncan Duo Duncan Duo dot
com for a quick home value estimate. I always find
it interesting when we have these, you know, kind of
major events in our market in terms of how it

(18:17):
impacts people. And I've been talking to people a lot,
and I have a lot of friends that, like me,
live on the water, live in South Tampa, live in
great you know, neighborhoods, and I'm hearing a lot from
people that are living in kind of the urban core
or the beaches that were hit by these storms saying

(18:39):
things like, I want to move out to the country,
I want to move out of the city. I want
to move out to the suburbs. So I'm predicting that
you're going to see kind of a a not necessarily
people leaving our area, even though we're going to see
some of that, but I think you're going to see
a lot of people that that got hit with these storms,

(19:00):
that probably have some trauma from it still and are
still dealing with some insurance complications. I think you're going
to see them move out to the suburbs. I think
Tampa Bay suburbs are going to continue to get stronger,
and we may see the demand in some of our
most prime markets slow down and drop a little bit,
you know, Like an example would be you look at
South Tampa, for example, It's always been one of the

(19:21):
most desired places to live in Tampa Bay. It's where
I've lived for you know, fifteen years, and I love it.
But I also think that you know, part of the
reason I love it is again a you know, shorter
commute because where my office is located, it's close to
all the places I like to go to. However, as
time goes on, you we measure and say, you know,

(19:42):
is a fifteen or twenty or thirty minute commute instead
of a five minute commute, you know, worth it for
me to you know, not have to deal with the
consequences of floods and storms and flood damage and water
stuff and all of these things. And I think that
the the same conclusions I'm coming to, or a lot
of conclusions other people are coming to, is that you know,

(20:04):
the you know, it's it's it's it's a harder comparison
to make now, so I think you are going to
see it. You know. I've talked to many friends that
live on you know, in wealthy neighborhoods, and many friends
that live in South Tampa and that core, and I
think there's going to be a move to the suburbs
into more of our rural areas from some of that crowd. Now,
I don't think those real estate markets will struggle much

(20:24):
because there's always demand for them, and there'll probably be
people that will that will move right into those places.
But but I do think you're going to see some
turnover from people that have historically said, you know what,
I want to live in this area forever to where
these storms have knocked it out of them and said, hey, look,
maybe I am going to move into some other areas.
So I think that's actually a really good sign for
Tampa Bay to continue to expand. I think you'll see

(20:47):
again some uh maybe that will promote some more uh,
you know, luxury type opportunities out in the suburbs and
rural neighborhoods. You know, you look at it, you look
at like a novela for example, Ample, you know, where
we maybe get something like that in some of these
other neighborhoods. Will will things pop up, will Lake the
not assassin some of the beautiful neighborhoods there become more

(21:09):
in demand. I think again you're going to see a
movement from uh, some of the cities, you know, from
the city core, Saint Pete, you know, Tampa clear Water
that got hit really hard, close to the water move out.
Still love the flavor of Tampa, but maybe don't love
the flavor of being close to the water and dealing
with the consequences of the storms, I think that will

(21:29):
actually build up our suburbs in our rural area is
a little bit better to continue to grow Tampa Bay.
So AI is another thing that I find really intriguing
for real estate. A lot of people aren't paying attention
to it, but it's really pretty amazing what is happening
with ai uh, you know, from a from a standpoint

(21:50):
of how much it's going to be able to do,
and how much learning is happening from a I uh
and and and the things that it's the things that
it's doing for both consumers and for you know, and
for real estate agents. It is absolutely going to be
a technology that revolutionizes real estate in the coming years.

(22:14):
So so again you're listening to the Duncan Duo Real
Estate Show. When we aren't on air, please make sure
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(22:36):
to me every Sunday and said, hey, I wonder what
it'd be like working at his company. Hit up Join
the Duo dot com a couple different ways that we
can work with you. Number one, if you are an
individual agent or you run a team and you simply,
you know, kind of want to join LPT Realty because
you've seen what you know, what I've done, and you
want to learn from me. Hit up Join the Duo.

(22:57):
Be happy to jump on a call with you and
talk to you about what LPT Realty is like. If
you're a real estate agent and you're struggling and you're like,
maybe I need to be on a team. Maybe I
survived the last few years, or I did well on
my own and now I'm not, that would be an
opportunity where we'd love to talk to you again. Join
the Duo dot com again, that is, Joined the Duo
dot com. We do a free career night. You'll have

(23:20):
a confidential consultation with U with my director of Growth,
and we'd love again, we'd love the opportunity to talk
to more agents. We are in growth mode this year.
We're actually about to triple our advertising budget for twenty
twenty five because we want to massively grow and double
our business in twenty twenty five. So if that's something

(23:40):
that you'd like to do if you'd like to double
your production, wouldn't you like to be in an organization
that wants to double its production as well? Again, join
the duo dot com register for our free career and
I apply for any of our open positions, and again
you can do that at Jointhduo dot com. So I

(24:01):
want to I've always talked like in the early part
of the year, you know, about how you know kind
of the predictions of the market and the things that
we expect to see. And I've done a lot of
that the last couple of weeks, and I did it
in the first couple segments of the radio show. But next,
I want to talk to home buyers. You know. In

(24:22):
the first part of the segment, I talked to home
sellers about, hey, look, here's what you need to do.
If you're selling. You need to be aggressive on price.
You need to be you need to have the best
conditioned You're going to be compete with more homes and
prices are softening a little bit. However, I think that's
a short term window. So home buyers, like, now is
your time? Okay, Look, I don't believe the economic conditions

(24:43):
in lieu of some massive natural disaster warrant price is
dropping for very long. I think we will see prices
drop for the next six months, So as a home buyer,
that means the time for you to take advantage of
that is now, because I think they'll rise in the
second half of the year, and I think that twenty six,

(25:04):
especially if we see some movement by the Fed, some
Trump bump, right, A lot of people are predicting that
some drop in interest rates, then we'll see even more
in twenty six, is the hope. And if that happens
and you didn't buy, and you sat on the fence,
or you didn't buy more real estate because you could
have negotiated a better deal, then you're gonna look back

(25:26):
and regret it. I know that during periods of time
where prices were dropping, even if in a short term situation,
there will been plenty of times in my entire twenty
year career where I wish I would have bought more
real estate because I knew it would eventually go back up.
I think that's essentially what's gonna happen. We're gonna see
prices sawt in the next two months. There's gonna be

(25:47):
some great deals that buyers should jump on, you know,
not necessarily investors unless you're buying them to rent them. Okay,
flipping is going to be challenging this year because of
a price drop. You've got to buy it at such
an aggressive price because you know, price is the chance
of you buying it and then selling it for a profit.
The margin has to be good enough to withstand several

(26:07):
months of depreciation. If that isn't the case, then you
can't buy it, you know, because people that are buying
homes to resell them are doing it to make a profit.
With the market conditions, that's going to be very, very challenging.
So the point is is that if you're a buyer,
you can take advantage of this pay less attention to

(26:27):
the rate, you know, because again you're not locked into
the rate forever, you're locked into the price for a
longer period of time. You can refinance the rate. You
can maybe do a two to one buy down to
get your rate short term to a lower number and
get the seller to pay for that. But you have
negotiating power that you have right now that you've not
had in a really long time in Tampa Bay. And

(26:49):
if you're a buyer, out there and you're looking to
buy your home to move into, don't be afraid to
make an offer. That's the other thing that I think
real estate agents got lazy the last few and became
order takers. They thought they were working a Chick fil
A ordering some chicky nuggets. They thought they were getting
the waffle fries. They thought that they could just order

(27:11):
take their way to home sales, and real estate agents
would deter, even though they're not supposed to legally, they
would deter people from making offers that were too aggressive
because they didn't want to waste their time because they
thought that it would never get accepted. You know, there's
no doubt. I've seen in Facebook groups. Okay, not on
my team, not people that work at my company, but

(27:33):
I've seen in Facebook groups where people are posting, you know,
this five hundred thousand dollars house, and the agent wanted
to offer four point fifty and I talked them out
of it. That's a mistake. Number one, it's an ethical issue,
But number two, it's a mistake today. Make the offer.
You'd be surprised at sellers that will be more motivated.

(27:55):
You have more negotiating leverage, especially in January and February
because it's historically lower on home sales. Anyway, you have
more negotiating leverage on price and terms than you've had
in a long time. And even if you've got a
higher interest rate, you may have to gut that out
for a year or two, but your equity gain will
offset that. If you think like an entrepreneur and think
about it from a net worth perspective, buying now makes

(28:17):
a ton of sense. You know, buying over the next
few months makes a ton of sense because you'll get
that equity when the price is rebound and you can
always refive the rate a year or two down the line, when,
as you know, again, hopefully rates correct and come down
some So smart money right now is buying. Smart agents
are making aggressive offers. Smart buyers are being unafraid to

(28:39):
make the offer. If you thought that maybe your offer
wouldn't get accepted, make it. What can they say? All
they can do they can encounter you, or they can
say no. Make the offer, and so it might get accepted.
You might have a chance, and you might get a
great deal on a home because now you have negotiating
leverage when the market returns, and it will look we
know it will return to more of a seller's mart

(29:00):
and there's some neighborhoods out there right now that still
are There's not a lot of them, but there's some
that are. When it returns to that, it'll be bidding
wars overpriced, you know, frenzies, people overpaying for homes, and
if you buy now, you'll get the benefit of that
frenzy when it happens over the next few years in

(29:20):
your equity. So don't wait to buy, buy it then wait.
It's impossible to time the market, but what you can
do is you the longer you're in the market. You
can't time the market, but what does matter is you're
timing in the market. So hopefully that all makes sense,
and I'm going to be back what I want to
cover next. It's kind of interesting because you know, we

(29:41):
we've covered a lot of stuff during today's show, but
the real estate market is ever changing, and I want
to talk to home sellers about pricing their home and
the strategies that need to be deployed today and kind
of the mentality that they need to take. Not just
about pricing their home aggress because I talked about that,

(30:01):
but I want to explain the why behind it and
the twenty years of experience I have and seeing the
results of what happens depending on the structure and the
strategy using pricing home. We're going to talk about that
after a quick break here on the Dunkin Duo Show.
So we're back here on the Dunkin Duo Show talking
about the Tampa Bay real estate market. And now I've
really been talking to my team a lot this week
about a whole about pricing our listings and you. We're

(30:25):
in a challenging real estate market. We've seen prices soften,
we've seen inventory rise, and I believe that there are
three ways to price a home, and each seller has
to pick which one, But I want to tell you,
based on today's marketing conditions, which one makes the most sense.
So there's really three ways. You can price it high

(30:46):
above what stuff is selling for in the neighborhood, which
I think is a mistake today. You can price it
a market which is kind of what things have been
selling for recently, which I also think is a mistake today.
And then you can price it aggressive, which is slightly
below or dramatically below. And I'm explaining the difference between
the two, what is trending and selling and what has

(31:08):
closed recently? So have you ever gone to an auction
and seen somebody overpay for something dramatically or gone on eBay.
I'm a big car guy, so I'll pay attention to
like Meek him and beartt Jackson Jackson, and sometimes I'll
see cars go for numbers that make absolutely no sense
where it went for way above market value because you

(31:30):
pitted two people against each other that had the means,
that had the money, and really wanted the car. The
same thing can happen with real estate, but it can't
happen if your price is too high, because then people
reject it. So, in my opinion, in a market where
it's challenging and you need to motivate and knock buyers
off the set fence, the best pricing strategy is to

(31:50):
price it below the market. Number one, we know prices
are going down, so you insulate and eliminate the fear
that the buyer has that they're going to lose value
by pricing it below. The second thing you do is
you make the market a seller's market for your specific property,
and you get people to compete for it because they say,
oh wow, this is a five hundred thousand dollar neighborhood.
This one was listed for four to fifty. Let me

(32:10):
offer on it. Well, guess what you think they're going
to be the only one that offers on it. Probably not,
Because it's ten percent below market. A lot of people
are going to chase it. What ends up happening is
a greater chance of actually getting the retail value for
the home through a bidding war scenario. You price it
the five hundred at four point fifty, you get a
frenzy of people that chase it. And again, I'm not

(32:31):
this isn't always the case. Okay, However, it's much more
likely to get retail value in a quick sale with
this scenario in today's market, based on today's trend. So
you have price a five hundred thousand dollars home at
four to fifty, You get a bunch of offers and
end up selling it for five hundred. Here's what happens.
If you listed at five hundred, you end up getting
maybe four to seventy five. You get one offer, you
don't get a frenzy. Everyone's like, oh, it's pretty regularly priced.

(32:54):
You get a low offer. It takes forever to sell
takes months down the line, and you get one offer
for four to seventy five. Which strategy makes more sense
in a market where you've got to knock buyers off
the fence. It's clearly the auction style pricing strategy that
will get people to chase the home and then last
but not least, pricing it above the market. There's no
this is not the market for that. You missed it.

(33:16):
It's just not. If you're going to price it above
market today, you might as well just not even put
it on the market, because here's what's going to happen. Okay,
consumers have never had more vanity. Okay, they use filters.
Everybody uses filters on their photos. Every photo I see,
I meet the person and I don't even recognize them.
So everybody uses these filters. Everybody has this vanity attached

(33:40):
to it. It's the same thing with real estate. When
they see a home that spell on the market for
sixty or ninety days, they're not as interested in it
because they think everybody's passed it over. It's not very valuable.
You overprice your home, you're eating up the precious days
on market that you have to impress a buyer. By
the time you finally get to the right price, everybody
has discarded your house and think something's wrong with it,
and they don't wanted anymore. If you overprice your home

(34:02):
and have to lower the price, you're going to lose.
Either your home is not going to sell or you're
going to sell for less. You have the price aggressively
in today's market, if you want to sell your home
for the most amount of money, it's really a difference
in negotiation. In a market where prices were rising, you
could price your home high and the market would catch up.

(34:23):
In a market where prices are dropping, you can't do that.
You price it high, and by the time you correct it,
you were what it should have been when it started,
but not where it needs to be now. You can't
get ahead of the downward trend. If you want to
price it aggressive today, you can create that frenzy and
sell a fast and get the as close to market
value as you can. The other strategies just don't work
in a market where prices have shown that they're depreciating,

(34:45):
and there's a lot of realtors out there unprepared for this.
There've never been in this kind of market, Like my
team has for over twenty years. We went through the
Great Recession, we grew some Our fastest growth was during
the worst real estate market Ford has ever seen. So
the reality is, if you we're a seller and your
strategy is we're gonna put it on the market, We're
going to lower the price. We're going to lower the price,
you're screwed. You're not selling your house. And by the

(35:08):
time you do, every consumer that would have paid and
been excited about buying it has gone, and now everybody
devalues it and they want to low ball you because
it's been on the market forever. If you really want
to sell and get the most amount of money, you
got to price it below market and negotiate up. Okay,
negotiate up, create a bidding or create a frenzy, create

(35:28):
a plan. If you price it high with the expectation
you can negotiate down, it's not going to happen the same.
Prices aren't rising and buyers know that. So if they're
not rising, they don't want to take a risk. There
are people that will overpay for a house or pay
higher for a house in a market where prices are
rising because they know it's going to catch up. When
prices are dropping. They want to insulate themselves. They want

(35:51):
to make sure that the home in six months or
a year is still worth that money. They don't want
to lose money. So the only way to sell today,
in my opinion, is you price it ahead of the market.
You price aggress lee, and you try and create a frenzy.
You try and create a seller's market for your house.
That's what our agents are going to coach our clients do.
A lot of the clients aren't going to listen. A
lot of those homes aren't going to sell, or they're
gonna get low balled, or they're gonna end up making

(36:13):
less money because they have the wrong number attached with
the value of the property. So again, price aggressive. We'd
love to help you with that, duncanduo dot com. If
you want an aggressive pricing plan to get a bidding
war frenzy for your house, that's us. If you want
the best, that's us. If you want the cheapest, that's
not us. We're going to give you the best advice,

(36:34):
the best results. We're going to get your home sold,
and we're going to create a strategy that's going to
create demand. As long as you listen, on price. If
you don't listen on price, you're basically that's the number
one tool that you have to get your home sold.
If you overprice your home, it doesn't matter how much
marketing is done on the home, you're going to miss it.
You're going to miss the mark. So hopefully that helps
make sense and understanding and educating you on what needs

(36:55):
to happen to get your home sold. Today. Again, you
can do that at duncinduo dot com. Again, that's Duncan
Duo dot com. And I'm done for today. Have an
awesome rest of your Sunday, Tampa Bay, thanks for tuning in.