Mango Season Is Officially Here!
Summer in Miami means more time for the locals, burning hot sandy beaches, and tons of delicious mangos perfectly ripe to keep you feeling fresh.
This summer season is one of the absolute best times in the history of the Miami real estate market to be a seller. Over the last 2 years, since the onset of the infamous pandemic, properties have increased on average over 35% in value. We have never ever seen such an explosion of this magnitude and it truly is a remarkable thing. Many homeowners, and others with their eyes on the market, seem to be in a panic over what the future holds for our current market. Keep reading and I'll share my thoughts as to why I think we are embarking on an enormous transition in the market from what we have seen since the start of COVID-19 to a dramatic cool down of the market.
As the mangos start to fall and the kids are out of school for the summer season you might be thinking of setting up your family for the upcoming school year. It's no secret that inflation is starting to take a toll on our daily lives and the real estate market is also being affected. We are starting to see the housing supply begin to trickle back into the market although demand is still incredibly high and the supply has not reached a level yet to satisfy that demand. Summer is a time when many families that have been thinking of moving over the last few weeks or months finally take the action to look at houses and place offers in hopes to be moved into their new home before the school year begins. As a seller you can take advantage of the season and still sell for top-dollar in record time. Offers are still coming in with very strong terms free of contingencies at or above the asking price in many cases. Take a look at how you can maximize your opportunity to sell and be a winner in today's market.
Step #1: Key in on your Motivation
Why are you selling? Do you want to simply relocate to some other part of the state or country? Or maybe there is another house nearby that really caught your eye and has motivated you to sell your property in order to buy it. Whatever your motivation is just make sure to express that to your realtor so that they can structure the contract terms to meet your needs. Do you need a post-occupancy of 30-90 days? Do you have tenants with an active lease on the property? These are all questions that should be answered in accordance to your motivation to sell so that you can make the transition work as smooth as possible. As the window of opportunity to sell at record prices slowly closes with the increasing mortgage rates it is imperative that sellers with a motivation to sell at the highest possible price list their properties immediately and waste no time continuing to wait.
Step #2: Pricing
I don't care what anybody says, pricing your property is the most complex and important part of listing your property. Whatever your motivation might be, if the bottom line at the end of it all does not satisfy your needs then what is the point? The trick is balancing price vs time and how will you optimize both? You can ask well above market value for your property but that might be at the cost of spending extra time active on the market and risking expiring off the market which opens a whole other can of worms. You really want to find an agent that is well-versed in analyzing the neighborhood and is a professional at being able to give value to the various characteristics that make up your property. In many cases you want to leverage the asking price to drive in strong offers. I have found that the best way to receive strong offers is by getting multiple buyers interested and getting them to start biding up on the price and the terms to secure a better-than-expected contract. To get an idea of what your property is worth click on the image below and then contact me to set up an appointment.
Step #3: Active Marketing
Is the MLS (Multiple Listing System) enough? What is your agent doing to drive in traffic to your listing? I will admit that new-age marketing works to sell homes but has your realtor forgotten or neglected the more traditional forms of marketing? As a seller it is extremely important to use a market expert in your area. Someone that has contacts that are currently seeking out properties in the neighborhood is more than likely going to sell your property faster than some agent that works the entire city. So often buyers are looking to buy a property in an area in which they know someone who already lives there such as a family member, friend or co-worker. For this reason it is crucial that your realtor markets to the neighbors and lets them know that your home is available and it is the best deal in the market. Word-of-mouth marketing is the most reliable and consistent form of marketing available. A combination of mailers, door-knocking, and open houses along with targeted social media marketing should be utilized to drive as much activity as possible towards your listing.
Step #4: Market Outlook
There is a looming dark cloud hovering over the real estate market. Actually, rather than a looming dark cloud it's more like a tropical storm named inflation. Naturally market value goes down in times of inflation and as interest rates rise at such a fast pace. Big business lenders such as J.P Morgan and Rocket Mortgage have recently laid-off over 2,000 employees respectively. The refinance market has come to a screeching halt and companies are adjusting. This being said, Miami is as recession-proof a city as there is in the United states and around the world. We have limited land to build more new-construction properties so supply will always be low in comparison to the demand. With great weather, beautiful beaches, and a multi-cultural community Miami stands out to so many buyers, both cash and financed, as a highly desirable destination. The transient nature of our city will shield us from such a dramatic adjustment in pricing for single-family homes.
To some degree we are starting to see properties stagnate on the market but values are maintaining rather high in contrast to neighboring areas in Florida. Needless to say, if you are a potential seller now is the time to make your move. Many sellers have been on the fence to sell because they were waiting for the market to peak and they were also worried if they would be able to find a property as supply has been extremely low. We are now seeing much more supply in the market so options are definitely available and prices are maintaining based on the location and condition of the property. In closing, now is a great time to sell and buy. Interest rates just dropped this week and are currently hovering around 5.3%. If you have questions about the outlook of our market or want a more in-depth analysis of a specific market, then head over to the "Book Online" tab to set up a free appointment with me.
LUXE Properties, LLC