Overpriced properties continue to pose a challenge for the real estate sector. "We have a lot of inventory because a lot of people in the past five years have been holding off selling their properties in hopes that the market is going to pick up so they have been renting the properties," according to Carmen Massoni, a broker and president of Bahama Islands Realty. "But all of a sudden last year, I saw a tremendous amount of properties that are finally being put on the market by many people who were not willing to sell because they were hoping for the market to bounce back."
Massoni admitted to Guardian Business that it remains a struggle for real estate agents to manage people's expectations when it comes to determining a property's value. "It is tough when someone's property is only worth this much and in their minds it's worth much more. On top of that, they have an attachment to the property, making it an emotional process for them," she explained. "Today's market is in no way, shape or form how it used to be between 2002 and 2004. Definitely we are seeing an improvement from last year, which was a horrendous year for sellers. I am noticing that sellers are realizing that the market is what it is and it's not going to improve dramatically for a long period of time.
"Most people are having to make that tough decision. If they want to move their property they are going to have to do it in today's reality and not yesterday's pricing. Those clients who are willing to make that decision and do what is right in today's market will be able to get their properties sold." She stressed the need for sellers to have appraisals done by a reputable appraiser that knows the real estate market well. "That saves everybody time and effort.
There are still a lot of things on the market because it's overpriced. Those houses that have been sitting on the market for the past six to eight months because more than likely they are overpriced and not reflecting today's market value, we still have a lot of market rejection going on in this country with properties that are presently listed because of pricing," While Massoni noted that the market has shown improvement in the first quarter of 2013 over last year, prices are at least 15 to 30 percent lower than in 2007 before the housing market crashed.
"I have definitely seen offers, firm commitments and buyers coming through the doors," she added. However, Larry Roberts, CEO of Bahamas Realty maintains the country's real estate market is still challenged by an inventory shortage. He was upbeat on 2013, revealing to Guardian Business that there are a number of exciting things on the horizon. He confirmed that his company has made some "significant" sales already for the year. "The potential is enormous. It's not in my pocket but I feel very good about this year. We are positioning ourselves for it. We are getting our agents prepared by doing a lot of extra training. I think we are going to see the results," Roberts shared.
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