Testing the market

Testing the market at an agressive price can be a multifaceted problem. "I'll put it on at $ 2,000,000 and see what offers I get" - generally generates no offers.  In our market place buyers only look at properties that are within their grasp and sometimes $10,000 over a price point means that they don't even consider the possibility of that home. 

Houses that are overpriced remain on the market and the listing becomes old and stale.

Houses that are overpriced waste Realtors time and Realtors don't show those homes unless it is to help sell another listing.

Houses that are overpriced indicate that the seller is not truely committed to the process.

Houses that are overpriced generally don't sell.

Ask your realtor for a CMA on your home. This will indicate the value of your property relative to other similar properties that are both on the market and already sold. Armed with this information you are ready to position your property on the market and test the market successfully.

Bda4Sale Website

So I finally emerged into the cyberworld with a website called Bermuda for Sale - Bda4Sale and it isn't as easy to do as the techy guru's led me to believe.  In fact without Michael's help I could really not have done it. Thank you Michael!

 I think I will stick to what I do best and leave the computer stuff to those who know what to do with it. That's not to say that I don't know what I want - it's just that computers don't do it my way...

Bermuda for Sale property page showcases my property listings with brief descriptions and great visual tours.

I am adding a page of information on buying and selling real estate in Bermuda and over time will have a fine collection of photos of Bermuda houses, Bermuda properties and events on the Photos of Bermuda page.

See you there!

Increase in DOM (Days on the Market)

The average of days on the market (DOM) for properties have dramatically increased in the past year. This usually indicates that a property starts out above market value (overpriced) and eventually the asking price  reduces to meet the price that buyers are willing to pay.  Many times this takes a year or so to happen.

The properties that are selling quickly are the ones that are priced correctly for the current market. In fact we still have multiple offers and quick sales on certain properties.

Buyer interest peaks when a property hits the market and after a few weeks ready willing and able buyers have all seen the information or the property.  After that the people who are looking are generally new buyers to the market and those that are not totally committed to searching for a property.

Sellers beware! Time on the market reduces the appeal of a property and therefore the number of potential buyers.

International Buyers - What is available

In Bermuda right now there is a good selection of inventory available to international purchasers - around 25 condos and 10 houses. 

There's a house on South Shore with ocean views over the reefs with an asking price of $3,900,000. It's currently a  family's vacation home and is all set for a family visit or to entertain friends here on island. 
Condominiums available to Non Bermudidan purchasers start at $895,000 for a 3 bedroom Manor House condo in a well established development in Smiths with tennis courts, pool, small beach and docking facilities for boats.  Close to the City of Hamilton and an easy 10 minute ride to the airport.

Properties range in style and price from apartment style condominiums to stand alone homes in the Tuckers Point development of Ships Hill where 4 bedroom home with its own pool and membership facilities at the exclusive Tuckers Point Club could be yours for around $4,000,000.

Or test the waters with a fractional unit.  These start at around $400,000 and there are 3 beautiful, newly built developments to choose from. I know people who have loved it so much they are upgrading to regular homes in Bermuda already!

Lunch and PRC's

Colonel Burch as guest speaker at the Chamber of Commerce Real Estate division’s AGM was amusing and charming - more so than I had expected. We were interested to find out whether the moratorium on Condominium Purchases by PRC’s will be lifted in June 2010 but the prognosis doesn’t seem good – although he didn’t technically say no.

PRC holders were previously able to buy condominiums with a lesser ARV than full Non Bermudian Purchasers.

Having said that there are a few Landmark Condos on the market at the moment that I believe still represents good value for money. Especially when you consider the amenities that are there – waterfront, beach, clubhouse, pool, tennis courts and even guest apartments for visitors. Landmark 2E with 3+ bedrooms has beautiful ocean views and an asking price of $1,050,000

It's worth a look!

Why get a CMA before you price your property

There are various important reasons that I recommend a Currrent Market Analysis before your property hits the market

1. It's free.
2. It shows what people are actually paying for properties that are relative to yours (area, size, condition)
3. It shows you which properties will be competing with yours.
4. It is a good reflection of what a purchaser's financial appraiser would value the property at.
5. It makes you analysise what buyers are looking for and what other sellers were offering.

I can do a CMA for you if you are thinking of listing your property for sale.  I would need to see your property, measure the spaces and take pictures.  After a little research I would get back to you with a pricing recommendation and a print out showing photos and information on comparable properties which have sold and are still on the market. This will help you put a realistic value on your biggest investment and sell your home faster.