Coastal Florida Real Estate

Where do these listing prices come from?

As I've posted on this blog and my other one so many times, the numbers don't lie.  Every aspect of our life is dominated by numbers, ratios and the like.  Don't believe me?  Watch the evening news and listen to all the numbers reported.

So, when pricing a property it always make economical sense to hit the sweet spot of the market.  It can be proven statistically that the quickest path to the biggest net check comes from correct pricing.

"Pay no attention to the man behind the curtain"

In the Wizard of Oz, Toto pulled back the curtain to reveal the truth about the Wizard.  I often think that real estate jargon, learned on the job from other agents, camouflages the truth about selling houses or selling anything. 

Your value proposition will determine if the buyer thinks it is appropriate to make the purchase.  Although lifestyle may dictate where clients focus their search, it will be value that determines what they buy.  And even with all the amenities our club's offer, overcoming price is the biggest hurdle of all.

Why would I say this?  Well, just north of Tequesta, Burt Reynolds has had his 3 acre, waterfront estate listed for several years.  It was originally listed at over $ 15 million and is now priced in the $ 8.5 million range. Take a look at the property below.

The rear of the house isn't too shabby either.

So, what's the point of the story?

The two most expensive properties listed for sale in Jupiter/Tequesta are asking close to $ 1,000 per foot.   One is very close to Burt's place, which by the way is across the Intracoastal from where Tiger Woods & Celine Dion are building on Jupiter Island.  It's 13,000+ feet in size. If Burt can't find a buyer at $ 717 per foot, where is the buyer going to come from that will pay $ 1,000 to live in the same area?  By the way, Burt's place has no neighbors on the north side where it meets Jonathan Dickinson Park.

The other $ 12 million dollar plus home is in The Bear's Club, Jack Nicklaus' golf club in Jupiter.  The Bear's Club shares the land with the Ritz-Carlton and is within a mile or so of Frenchman's Creek, Frenchman's Reserve and Admirals Cove.  This home is about 12,000 square feet.

Pricing "one of a kind" properties is very difficult so I would submit that when putting one of these up for sale, it would make sense to invest in 2 appraisals and then add to this a hard, number crunching analysis to determine where the market is likely to be.  Of course, you could always get lucky.  But, I believe, HOPE IS NOT A SUCCESSFUL SELLING STRATEGY.

What do you think?