A surge in new construction is forcing existing home sellers to significantly adjust their pricing strategies in Central Florida, according to Michael Dorman of Elevate Real Estate Brokers, who sees a fundamental shift in buyer preferences.
“With the new construction taking off, they’re having to come down to be competitive with construction,” Dorman says, describing the current market dynamic. “Because if they get a brand new house for the same price as a house that’s 50 years old, they’re going to go with that.”
This competitive pressure is particularly evident in the investment market, where traditional patterns have been disrupted. “The fixer uppers, they’re not flying off the market like they were back in 2020, 2018,” Dorman notes, reflecting on how market conditions have evolved.
The challenge of pricing older homes against new construction requires careful analysis and often challenges seller expectations. “You gotta do your adjustments,” Dorman explains, describing his approach to comparative market analysis. “Show them the one that you’re comparing it to, they’re not out there in the market looking at houses usually, and then seeing the difference in the houses and what the market is actually doing.”
This reality check often involves educating sellers about the true market value of their properties. Dorman notes that while online valuation tools can give sellers unrealistic expectations, the actual market comparison needs to account for the age and condition of properties.
Through his work at Elevate Real Estate Brokers, Dorman emphasizes the importance of understanding current market dynamics when pricing properties. “I deduct and show them,” he says, describing his process of helping sellers understand how their properties compare to new construction options.
The impact varies by price point and location. Properties in the $250,000-$350,000 range still move relatively quickly if priced appropriately, while higher-priced properties face more significant competition from new construction alternatives.
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