Category: Buying

Tips to make your real estate buying experience a smooth one

Categories
Buying

How To Compete With Cash Buyers

Interest rates have dropped again.  They are currently around 3.75% making properties even more affordable!  Now your challenge will be finding a property.  Inventory in Miami has dropped significantly and the competition with cash buyers is fierce.  In the last two weeks I have seen several properties go on the market and have multiple offers within a couple of days and several have gone under contract above the list price.  Most of them have been cash offers.

So, if you are financing your purchase how do you compete?

  • The first step is to be pre-approved for a mortgage and have a pre-approval letter from the bank.  A pre-approval is stronger than a pre-qualilfication.
  • Next, take the time to get to know the market in the area where you are looking.  If you are pre-approved for a $500,000 mortgage, do not look in neighborhoods where the properties sell for $600,000.
  • Look at properties that have been on the market for more than 100 days.  If they are not short sales or foreclosures, chances are they are overpriced.  The average days on market for all properties in Miami-Dade County for January through April of 2012 is 99 days.  Properties that are overpriced tend to sell for less than what they would have if they were priced correctly to begin with.
  • Don’t underbid a property by a huge amount of money.  Miami-Dade County is no longer a buyers market.  Depending on what numbers you look at it is a stable market, at or below 6 months of inventory based on closed sales for the last three months, or a seller’s market,  at 3 months of inventory based on pending sales for the last three months.  From February through April of 2012, properties have been selling on average at 89.6% of their original list price.

These suggestions are guidelines, since the averages used were for Miami-Dade County as a whole.  Average days on market, months of inventory, and sales to list price averages may be higher or lower in the neighborhoods you are looking in.

 

 

 

Categories
Buying Selling

How Do You Feel About Third Party Real Estate Sites As A Buyer Or Seller?

Edina Realty, a Minneapolis-St Paul real estate subsidiary of HomeServices of America, Inc., has decided to stop syndicating its listings to non-brokerage sites, such as Realtor.com, Trulia,  and Zillow.   Edina’s arguments are outlined in Inman News and bring up some interesting concerns regarding “advertising” on third party sites.

I work with several buyers and tenants who use third party sites to search for properties or obtain market information and I often do have to explain to them that the information they have gleaned from the site is incorrect, out-of- date, or not exactly reflective of what is happening in the local market.

For my sellers and landlords, I do put my listings on third party sites because I feel like the more eyes that see the listing the better the chances of selling that listing are.

What are your experiences with third party sites?  If you are a seller, would you list with a brokerage that does not participate with third party sites?

Categories
Buying Foreclosures Selling

Miami Real Estate: Inventory Low, Prices Increasing

Further evidence of the improving Miami real estate market can be seen in EWM’s Coral Gables office sales for last week.  The total of sales and leases was $20,484,380.  Residential sales represented 90.5% of those transactions.   The total for all of EWM’s Miami Dade County offices was over $36,000,000.

Today’s Miami Herald article, “South Florida’s real estate market looks hot again” summarizes the market gains.

 

Categories
Buying

The Importance of Proof Reading…

I have lived in Miami for over 20 years and would have a hard time following these directions “6 BLACKS NORTH OF MIARCALE MIE”.  I am not making that up.  Luckily I played a lot of “Scramble” as a kid and deciphered it to read 6 blocks north of Miracle Mile….

Categories
Buying Selling

The National Association of Realtors Rallies Congress on Real Estate Issues

Today the National Association of Realtors will be in Washington DC to address several real estate issues that Congress is contemplating to address the federal deficit.  Some of the issues being addressed include:

  • Mortgage Interest Deduction: long enjoyed by homeowners, this deduction has been recommeded to be eliminated as part of  large tax reform proposal
  • Capital Gains – Exclusion on Sale of Residence:  reducing or limiting the capital gains exemption ($250,000/$500,000) on the sale of a home is also being discussed.
  • Property Tax Deduction:  possibilty that current deduction would be reduced or eliminated.

NAR is tackling other issues as well via their 2012 Federal Public Policy Priorities.

Categories
Buying Investment Real Estate Selling

Miami Real Estate: Prices on the Rise

Miami and Phoenix are seeing a rise in asking prices, based on a Trulia Price Monitor Report.  There are still a lot of good buys out there, but many buyers are frustrated when a new property comes on the market and goes under contract almost immediately.  Decreasing inventory and aggressive pricing by listing agents, mean you have to act fast if you are serious about making a purchase.  If the property is priced right, don’t try to negotiate it down too much, if at all.  I listed two properties last week that both had multiple offers within the first two days.  The first property had all offers at asking price and we went to a multiple offer situation where we asked for highest and best.  Total time on market was 6 days.

The second property had several offers on the second day.  One agent had his buyer offer slightly over asking and put down 10% as an initial deposit, upon acceptance.  The seller accepted his offer.  Two days later, a higher offer came in from a buyer who was desperate because she had just lost out on a short sale and needs to move fast.

If you are a buyer, be ready to put your best offer forward early on.  If you are a seller and get multiple offers, don’t second guess your pricing or hold out for something even better.  The reality is that you get the most activity on a listing when it first goes on the market.  The longer you wait, the less you are likely to get.

 

Categories
Buying Coral Gables Home Improvement Selling

Riviera Drive Gets A Facelift

I drive Riviera every day on my way to and from work and love all of the renovations that have been going on on that street between Hardee and U.S.1.  Whether on a waterfront lot, like the house below, or a dry lot, over 6 homes have recently had major remodeling done.

I love the new look!

Categories
Buying Marinas, Yacht Clubs and other Boating Information

7601 E Treasure Drive – Bank Approved Short Sale

This bank-approved short sale at The Grandview Palace in North Bay Village has water views from every room.  Other features include:

  • crown molding
  • baseboards
  • updated kitchen with stainless steel appliances, granite counters & a pantry
  • two full baths
  • two good-size balconies

All this for $136 per squar foot!

Categories
Buying

7925 SW 55 Avenue in High Pines, First Time Open 12:00-2:00

Come by for lunch and preview this updated home. 

3/2, newer roof & septic, hurricane shutters, gas stove, room for pool and great price $449,000!

Categories
Buying Renting in Miami

Miami Real Estate: Rent vs Buy? That Is The Question…

During a Sunday get together, the rent vs buy question came up and a lively discussion ensued.  The individuals who were pro-renting argued that renting provided:

  • cash flow/opportunity cost:  not having money tied up in a mortgage, taxes, and insurance, allowed more money for investing, travelling, miscellaneous purchases 
  • flexibility:  if they wanted to move into different neighborhood, change size , or relocate for a job, their choice is not dependent on first having to sell their home
  • better lifestyle:  they argued that they could rent a nicer place in a nicer area than they could afford to purchase
  • maintenance-free living:  don’t have to worry about repairs, yard work, pool cleaning

The pro-buyers argued that buying was better because:

  • it builds equity: which helps build your net worth.  It is basically a forced way of saving money.
  • tax benefits:  interest on a mortgage is currently tax deductible, thereby reducing taxes you owe
  • gives you control over finances:  you are not subjected to rental increases
  • stability:  since home ownership is fairly long term, owning a home creates a sense of security and community
  • maintenance:  don’t have to wait for landlord to change or repair something.  Have control over quality of work of repairs and type of work done (i.e wood floors vs changing carpet)

Obviously both renting and buying have their pros and cons.  The New York Times rent vs buy analysis says that overall, if you stay in a place for 5 years or more, you are better off financially buying.  This analysis assumes that the landlord pays utilities, which for the most part in Miami-Dade is not the case.  The tenant usually pays all utilities, except for those that are provided by, and included in, the condominium’s maintenance fee.

So what side of the fence are you on and why?