So what’s the scoop on Carlsbad FSBOs?
Eve and I spent the afternoon studying For Sale by Owner (FSBO) sites and researching these Carlsbad listings and Carlsbad real estate through our local San Diego MLS.
The results are very interesting–and were enough to keep us at this real estate task for most of the day.
Some casual observations:
- The vast majority of these Carlsbad FSBO listings are overpriced. Are the owners relying on outdated information from Zillow or wishful thinking when pricing their homes?
- Many of those who purchased their Carlsbad homes in 2005-2006 may face difficulty if they need to sell today.
- The majority of the advertised FSBOs are in short sale position. In other words, these sellers owe more than what their homes are likely worth. This leads us to wonder: How prepared are these sellers to negotiate with lenders and keep buyers on the line?
- We observed several expired listings in Carlsbad that are now listed as For Sale by Owner. Prices generally stayed at the original listed price. Might price have been a reason these homes didnt sell in the first place?
- Carlsbad homes in the 92011 zip are selling the fastest, and seem to be holding values the best. This is because this area is closest to the beach and includes the planned community of Aviara. Market absorption rate here is 39 weeks.
- La Costa homes in the 92009 zip are burdened with a number of newer subdivisions including La Costa Greens, La Costa Oaks, La Costa Ridge, and Bressi Ranch. Most of these Carlsbad homes sold in the 2005-2007 timeframe and those re-entering the market now will have difficulty breaking even and may even face a loss. Market absorption time in the 92009 zip is running 49 weeks.
- North coastal Carlsbad in the 92008 zip code surprisingly has the longest market absorption rate: 60 weeks. This could be because many of the homes are older and current buyers are favoring newer properties.
- Northeastern Carlsbad in the 92010 zip has a market absorption rate of 50 weeks. This area is predominantly populated by the newer construction in Calavera Hills, but also has some established older neighborhoods.
Eve and I are continuing our market studies so that we can better advise our clients who need to sell their North San Diego County homes. Real estate is selling, and we are even managing to garner multiple offers for our attentive Carlsbad sellers.
All too often, a home seller assumes that because his or her home has granite surfaces, stainless appliances and a jetted bathtub the home is worth substantially more than an unimproved one down the street.
We are finding, though, that most buyers will bargain for the cheaper home and use the savings to make improvements to their own liking.