You don’t need to look far to realize that we are currently in a home seller’s market. With a limited inventory of homes for sale combined with extremely high buyer demand, home prices have been rising for some time. Perhaps there is no better example of this than the South Florida market. Not only are we seeing the same national dynamics play out in The Sunshine State, we are actually seeing an even higher buyer demand from Americans looking to relocate to Florida.
For perspective, a healthy real estate market typically has about a 6 month inventory of homes for sale. Currently, this inventory is below 2 months in most markets. Therefore, we are seeing considerably high competition for homes listed for sale in this market. Unfortunately, this oftentimes leads sellers in the trap of aspirational pricing. In any market it is critical to not make this mistake.
Educated home buyers
Now more than ever, home buyers are highly educated on the real estate market. With various online resources such as this very website and even real estate apps such as the Florida Home Search app (link below), home buyers are better able to identify value. Although many listings are selling in bidding wars in this market, it is important to remember that in all instances the buyers sense some form of value. With this said, if a property is grossly overpriced it will likely result in a lack of showings or offers even in a seller’s market.
Another common mistake made by sellers involves the lack of making necessary repairs to the home prior to listing it for sale. It is important to remember that in any real estate market, most home buyers desire to purchase a property that is move-in ready. In the event that the buyer is an investor, they typically are looking to spend less than market value in order to factor in the remodeling and repair costs. With construction costs for labor and materials rising dramatically combined with supply chain issues, many buyers will likely pass on a property that requires too much work.
Home pricing is a science. If priced to high, you will likely not get any showings or offers. This may lead to the listing becoming stale by the time you adjust the price accordingly. If priced to low, you will likely receive many showings and offers but it is possible that you could have sold the property for a higher price. If priced correctly, you can expect to receive plenty of showings with several offers just below or at the listing price. Oftentimes, this will result in a “highest & best” offer situation where buyers are given a deadline to submit their strongest offer. This typically results in a sales price that is over the listing price. As always, having a local and knowledgeable real estate agent representing you will be critical to success.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!