Real Estate Analysis and Commentary in WINTER HAVEN

Polk County High End Residential Properties Slow To Sell
March 7th, 2015 10:42 AM

A two year search of comparable listings in Polk County was conducted to locate high end properties that have been on the market. Their MLS status was Active, Active with Contract, Pending, Withdrawn or Expired. This search produced 18 properties, 8 Active, 6 withdrawn (1 was the subject) and 4 Expired. No Active with Contract or Pendings were found.  The median asking price was $1,973,989 with the median per sf price of $226.74. The subject that I was appraising was on the market for $2,450,000 or $217.45/sf in 2013 and withdrawn as an MLS listing after 68 days.  None of these properties sold.  

I interviewed local realtors who have had recent listings of high end homes. Also, the appraiser talked with another long time Polk County residential appraiser. We discussed the marketability of such properties Polk County. They indicated that the potential number of buyers is quite small. Buyers with adequate resources often choose to purchase property in the larger urban areas such as Tampa and Orlando. Additionally, potential buyers sometimes decide to build their own high end home so that it has the design and the amenities considered important them. Because they have the ability to pay for that, they do not want another's idea of the ultimate residence. Also, realtors said that potential buyers discount their offers because they consider Polk County to be a less desirable location when compared to Sarasota, Orlando and Tampa. That discounting has fallen below an acceptable price for the seller because of the money invested in the home. Hence, no contract and no sale consummated.

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Posted by Dave Hohman, ASA on March 7th, 2015 10:42 AMPost a Comment

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