Price it Right
The Market Experts
In 4 years, SearchLots have managed over 750 real estate investment
transactions, worth over $100 million in the Lee County, Florida
Market.
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At SearchLots.com, we've discovered the secret to setting.and
getting the best re-sale prices on lots. The secret is... getting a full
perspective of today's market condition in the
Lee County Real Estate Market including Cape Coral, Fort Myers and Lehigh Acres. Sold Prices, Active (Listing) Prices and,
most importantly, Pending Prices.
We've broken it down into a simple 3 step process:
Step #1: Determine the Value of Your Lot
To determine what your lot is worth at today's
market value, use the Searchlots Value Your Lot program to define
the range of value for your lot by comparing the Active
and Pending prices of lots comparable to yours The highest
comparable lot Pending price and the lowest comparable
lot Active price should reveal the upper-end range of
the value for your lot.
Remember:
Buyers always have the final word on the value of your lot.
The economic law of supply and demand rules in the real estate market.
Pure and simple - at any point in time, the value of your lot is only worth what buyers are willing to pay for it.
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Step #2: Assessment - Is it a Buyers or Sellers Market?
The Lee County real estate market is an incredibly dynamic
one. Not only has real estate values grown over 300% in the past five
years in Cape Coral, Lehigh Acres and Fort Myers, but we have noted that the sales cycle of moving from a Buyers
Market to a Sellers Market can change in as short as a two month time
frame! To determine if today's market conditions
are more favorable to Sellers or Buyers, compare the prices
of Active & Pending listings:
- Generally, if the prices of Active
Listings are greater than the prices of Pending
Listings, it is a Buyers Market
# Active Listing Prices > # Pending Listing Prices = Buyers
Market
- Generally, if the prices of Pending
Listings are greater than the prices of Active
Listings, it is a Sellers Market
# Pending Listing Prices > # Active Listing Prices = Sellers
Market
The wider the gap between the number of Pending and Active
Listings, the more acutely the market is moving in that direction.
Step #3: Select Your Pricing Strategy
What's the right listing price to put on your Fort Myers, Cape Coral or Lehigh Acres lot? That depends on one critical question: How soon do you need or want the money from the sale of your lot:
Based on your answer to this critical question, we recommend a 1, 3 or 6 month pricing strategy:
- One Month Pricing Strategy
If you want to sell your lot in one month, establish
your lot price at today's market value, slightly
less if it's a Buyers Market or slightly more if Sellers Market
- Three Month Pricing Strategy
If you want to sell your lot within 3 months, establish
your lot price at today's market value of
your lot + 3 times the average monthly growth rate, slightly less if
it's a Buyers Market or slightly more if Sellers Market. Please
feel free to call us for counsel on the estimated monthly growth rate.
- Six Month Pricing Strategy
If you want to sell your lot within 6 months, establish
your lot price at today's market value of
your lot + 6 times the average monthly growth rate, slightly less if
it's a Buyers Market or slightly more if Sellers Market. Please
feel free to call us for counsel on the estimated monthly growth rate.
Testimonial
"If you want to make money buying or selling property in Southwest Florida, please contact the team at Searchlots. They advised us to purchase 3 lots, and then sold them for us for an 80% profit within one year!"
- John and Beverly Towsley
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One Day Makes A Difference!
If you own your lot for at least 366 days (12 months + 1 day) before selling it, your tax liability will be limited to the 15% long-term Capital Gains tax rate. If you sell your lot before that, you run the risk of being taxed on the increased value of the lot at your personal income tax rate. Please refer to IRS Publication 544 for further information.
Trade Up.or Out!
Defer your Capital Gains Tax liability and build wealth faster by trading up..or out! IRS Code 1031 allows you to defer paying both Federal and State capital gains taxes when you sell a lot and buy another (or others!) of "like kind".
Many rules apply under a 1031 Exchange, but here are the basics:
- The lot(s) that you buy must be of equal or greater value than the lot you sell
- You must declare your intention to establish a 1031 Exchange during the closing process of selling your lot.
- From the date of closing on the sale of your lot, you
have 45 days to identify the new lot(s) to be "exchanged"
and 180 days to complete the purchase of the new lot(s).
Please refer to IRS Publication 544 for further information. We can help with both sides of the transaction.both selling your lot, and helping you to find the best lots to buy!
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