As we approach the fall market, we continue to see a fundamental disconnect between buyers and sellers in the Sarasota/Manatee marketplace. All too often, agents are seeing negotiations end without a successful outcome.

The Florida high end real estate market is driven by buyers purchasing second, third or fourth homes which are discretionary and emotional decisions based on want not need. This fact combined with the perception and partially reality that there is a high supply of luxury properties gives buyers the confidence to make lower offers with more aggressive terms with the expectation that it is a take it or leave it scenario for the seller.

On a positive note, there is a significant pool of buyers on the sideline waiting for the perfect home or right opportunity to present itself. Since mid 2005, a large percentage of buyers have held off purchase decisions due to media hype of a real estate bubble, hurricanes and gut feeling.

In general, it is time for sellers to reevaluate their sales price getting more in line with sales from the last six months rather than the middle of 2005. If you are a seller who is not in a position to sell at a price the current market supports, the best thing to do is take the property off the market for the next 12 to 18 months. While this might be painful for some in the short term, the decrease in supply will improve market conditions faster and return balance to the market.

On a positive note, properly priced properties are getting great showing activity, offers and successful closings.