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Archive for the 'Selling' Category
You Have An Executed Contract On Your Home! Now the Real Work Begins.
Before you start celebrating your executed contract, take a deep breath and realize you are only half way to the closing table. You still have to get through inspections and, if the deal is based on financing, the appraisal.
In order to make it through inspections, you may want to fix the little things you have been meaning to since you listed the house, such as the faucet that started dripping or the burned out light bulb. These things sound minor, but they can add up in an inspection report.
If you did not have a list of all of the upgrades you have done to the house, make sure to make one now and give it to the appraiser. In today’s market there are so many distressed properties, many of which are in poor condition, dragging down pricing, it can help to highlight your home’s main attributes, such as new appliances, roof, etc. Even if your house is in great condition, do not be surprised if your home does not appraise. Recent changes to the process have resulted in much more stringent appraisal standards.
Miami Real Estate: The Market is Changing
If this week’s sales vs listings in just one of EWM’s offices is any indication, the market is changing. Our Coral Gables office had 37 residential sales versus 10 new listings and 27 leases vs 8 new rentals. Our total for this week, which include the sale of a commercial property was almost $35,000,000. This market change doesn’t mean that prices are going up yet, but it does mean we are clearing our inventory. We are seeing an increase in rental rates, however, as more people decide to rent and the inventory decreases.
If you need to sell, now is the time to do it since inventory is decreasing and there is demand. Remember to price it right, however, since pricing is everything in this market. If you don’t need to sell, but want to take advantage of the current market, use it to move up, downsize, while you rent out your current home. Alternatively, stay in your home and buy a rental property.
If you are planning to buy, now is definitely the time to buy due to a combination of low interest rates and low prices. If you don’t buy soon, you may find yourself priced out of the market or with even more limited choices.
Miami Real Estate: Do You Want To List Your Home Or Sell It?
Okay, sellers. It is time to get real and face today’s Buyer’s real estate market. If you want to LIST your house, hoping you find an all cash buyer willing to over pay for your home, you don’t need to read any further. However if you want to SELL your home, please read on.
Today I took a cash buyer to see a very nice home in north Coral Gables. It is a 3 bedroom 2.5 bath, 1985 square foot home on a 7,000 square foot lot. It has an above ground pool (can’t believe that got permitted in Coral Gables, but that is the subject for another blog) and has been very nicely updated. The garage was converted into a playroom. As we were walking through the house, the agent kept pointing out all of the items that would not be staying: curtains, washer, dryer, some lighting fixtures. After we were done seeing the house, the agent told us what we already knew, “The house is overpriced”. When we asked her if what the sellers were thinking, she responded “They think their house is so nice and updated that it is worth more than anything in the neighborhood”. I told her it would never appraise. She said she knew, but to make an offer anyway, the sellers were motivated, they were buying another house and already had a contract on one. Here is the problem: the unrealistic sellers have the house priced at $690,000, down from $712,000. The absolute highest comp, based on tax rolls and the MLS put this house at $498,000. Even stretching, the highest price for a 3/2.5 in that area, but with larger square footage sold for $540,000. How does a buyer even begin to make an offer? They don’t. They go on to a more realistic seller.
The moral of the story is: If you don’t need to sell your house at today’s prices, then don’t. Wait for the time to come when the properties will appreciate. If you need or want to sell your house now, price it realistically.
Pinecrest Real Estate – Market Summary for Single Family Homes
How does the housing market look in Pinecrest half way through 2011? Below are the numbers for single family homes. Note that all of these are going to change a little due to status changes that happen at the end of the month, but are not updated in the MLS until the following month. As of 6/30/2011:
- Closed sales: 90. Low of $270,000, high of $4,000,000. 7 were bankowned (REO), 10 are short sales or approximately 19% distressed sales. 57 closed in the second quarter.
- Pending sales: 48. Low of $265,000, high of $2,150,000. 3 are REO, 17 are short sales. Almost 42% are distressed sales.
- Active sales: 160. Low of $269,900, high of $5,000,000 ($4,999,999 to be exact!). 3 are REOs. 14 are short sales. Only 11% distressed listings. 64 were listed in the second quarter.
What does this mean if you are a seller? If you want to sell your home during the end of the summer buying season, drop your price now. Homes are selling and people are still looking to buy in Pinecrest because of the quality of the public and private schools, parks, and good size lots. If your home needs a lot of work, you are going to have to drop the price even further. Buyers are looking for homes that need minimal updates. If you don’t drop your price now, you are going to have to drop it even further come the beginning of the school year.
If you are a buyer, the numbers mean there aren’t as many “deals” in terms of short sales and foreclosures. Those that are on the market, are priced well, and in reasonably good shape are going to have multiple offers, because there are fewer of them. If you are financing your purchase, you are better off using the numbers to make an offer on a well priced, non-distressed listing.
Miami Beach Real Estate: Market Summary for Single Family Homes
We are half way through the year and the market has been moving. Sales are up, mostly due to lower prices. As of June 30, the single family home market in Miami Beach for the year so far is as follows:
Closed sales: 94. Low of $190,000 to a high of $25,500,000. 9 of the closed sales were foreclosures, 6 were short sales. Only 16% were distressed sales. 49 closed in the second quarter.
- Pending sales: 57. Low $200,000 to a high of $14,900,00. 2 of the pending sales are foreclosures, 23 are short sales. Almost 44% distressed. 21 went pending in the second quarter.
- Active sales: 282. Low of $205,900,high of $49,995,000. 16 are short sales, 1 is a foreclosure. Only 6% distressed. 76 of the active sales were listed in the second quarter.
What does this mean if you are a seller? The good news is that the majority of the closed sales are not distressed sales. If you are priced right for a buyer’s market, you have a closing window of opportunity to sell at a higher price than you will get later this year. I think prices of active listings are going to come down as we come closer to the end of the summer buying season.
What does this mean if you are a buyer? Many buyers are still looking for a “deal” without realizing that they are already looking at one. Just because a property is not a foreclosure or a short sale, does not mean it is not a good deal. A lot of sellers have come down significantly in their pricing, in large part due to the pressure of distressed properties on the market. As the distressed properties listed for sale decrease, they become less of a factor on the overall market. If you are financing your property and only looking at distressed sales, you are going to have even more frustration as you are competing with cash buyers.
Note: These numbers are going to change a bit due to fluctuations at the end of the month when a lot of properties status changes, but those changes don’t get recorded in the MLS until the following month.
Miami Real Estate: The Market is Moving
EWM’s Coral Gables Office had a $32,000,000 week.
Our Miami Beach Office had a $37,000,000 week. So the answer to “Are Properties Selling?” is a resounding “Yes!”
Do The Pictures of Your Home Do It Justice?
The two pictures below are for a house listed for $400,000. If a picture is worth a thousand words, what do these say about the house?
These two are for a house listed at $2,300,000.
Mini-Concerts at New World Center – Almost Free at $2.50 Per Show
This Friday and Saturday there are three half-hour mini concerts at 7:30, 8:30, and 9:30 p.m. at the New World Center. Experience this amazing concert hall for a very affordable price before or after dinner. Several restaurants on Lincoln Road offer dinner deals in conjunction with your ticket.
Miami Beach, FL Real Estate – Market Summary
1835 W 27 Street
Market information from the Multiple Listing Service for single family homes for the month of January are as follows:
- Closed sales: 16. 2 short sales 2 REOs. 7 were cash sales, including the one for $3.86 million.
- Price range of closed sales: $3.86 million – $375,000
- Pending sales: 20. 3 short sales, 4 REOs
- Price range of pending sales: $2.950 million – $230,000
- Active listings: 316, 42 of which were listed in February. 18 short sales, 1 REO. 164 are waterfront
- Price range of active listings: $50 million – $199,000
Distressed sales are still making up the larger part of the market in terms of listings going to contract. Based on the number of active listings, distressed sales make up about 8% of the market, but half of the closed sales.
What does this mean if you are a buyer? Based on the number of active listings to closed sales, there is still a lot of inventory to work through, so it is still a buyers market. Once you narrow down your price range and specifications however, there won’t be as much to choose from, so use the statistics and market information to negotiate your price. If the house you like is a regular sale and it is priced right, you won’t have as much room to negotiate as you will on one that is overpriced. If you are going to make an offer on a short sale bring patience and realize that when the bank finally does answer, they may ask for more than what you offered, even if what you offered was the full asking price.
What does this mean if you are a seller? You have a lot of competition so price really does matter. Look at the active sales that most closely match your home in terms of size, location, updates, lot size, amenities. Consider pricing it 10-15% below your closest competition, make sure it has great curb appeal, and de-clutter and freshen up the inside with some elbow grease and a fresh coat of neutral paint. The good news is that if your house is priced right compared to your competition, it will sell.
Pinecrest, FL Real Estate – Market Summary
Market information from the Multiple Listing Service for single family homes for the month of February are as follows:
- Closed sales: 5. None were short sales. 1 REO. 3 were cash sales.
- Price range of closed sales: $670,000 – $340,000
- Pending sales: 19. 3 short sales, 2 REOs
- Price range of pending sales: $3.1 million – $369,000
- Active listings: 183, 36 of which were listed in February. 23 short sales, 2 REOs
- Price range of active listings: $5 million – $300,000
February was a slow month for closings, but cash was king with 3 out of the 5 closings being cash deals. Only 19 homes out of 183 on the market went under contract and new listings were almost double the number of homes going under contract. Strictly looking at the numbers, if you base inventory on the number of closed sales, we have 36.6 months of inventory. If you look at pending sales, then you have a much healthier 9.6 months.
What does this mean if you are a buyer? Based on the number of active listings to closed sales, there is still a lot of inventory to work through, so it is still a buyers market, especially if you are looking at more expensive homes. 57% of the inventory for February is over $1,000,000 but none of the closed sales were that high. Once you narrow down your price range and specifications however, there won’t be as much to choose from, so use the statistics and market information to negotiate your price. If the house you like is a regular sale and it is priced right, you won’t have as much room to negotiate as you will on one that is overpriced. If you are going to make an offer on a short sale bring patience and realize that when the bank finally does answer, they may ask for more than what you offered, even if what you offered was the full asking price.
What does this mean if you are a seller? You have a lot of competition so price really does matter. Look at the active sales that most closely match your home in terms of size, location, updates, lot size, amenities. Consider pricing it 10-15% below your closest competition, make sure it has great curb appeal, and de-clutter and freshen up the inside with some elbow grease and a fresh coat of neutral paint. The good news is that if your house is priced right compared to your competition, it will sell. Inventories will start increasing as we get closer to the summer moving season and time is of the essence once you list your property. The longer it sits on the market, the more likely it is to get a lower price.
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