In Miami, residential properties are selling briskly and transactions of commercial and industrial buildings and land continue to gather steam. As reported by The Miami Herald, Miami’s real estate market is slowly creeping back to normal. This previously distressed market is turning around, as Realtor.com notes, and every seller is looking to get top dollar for their property. However, some are not aware of how to pinpoint the right value for their properties, while others think that by placing a high asking price they will attract buyers willing to pay the most. Today, pricing Miami real estate for sale is both art and science.
Any property in Miami, be it a single family home, a condo, an apartment building, or a warehouse, that is priced at market will attract more inquiries than an overpriced one. Further, a property that is priced slightly below market will probably attract a large number of inquiries, showings and, as we are experiencing, even create a bidding war that will result in a higher selling price than originally anticipated. On the other hand, an overpriced property often languishes on the market, generating neither inquiries nor showings and, not even remotely, any offers.
How can a seller decide what the right price for their property is? In Miami, a significant proportion of real estate sales is the result of foreclosures, short sales, bankruptcies, negotiated agreements between private lenders and borrowers, and even between family members, employers and employees, commercial creditors and debtors, not to mention other distress situations such as illness, divorce, etc. At the same time, as buyers take advantage of the low prices and interest rates, inventories have tightened, stabilizing prices and pushing builders to jump-start their ventures. Lennar, for example, has bought unfinished residential projects that are now selling quickly, and many smaller builders, such as Adrian Builders, have begun fresh construction. New small office buildings, shopping centers and condo warehouses are also now ready for occupancy or soon will be. Thus, it is impossible to arrive at a good estimate of value without extensive investigation and analysis of recent sales and current offerings.
For a seller, it is difficult to find out the right asking price on his or her own, since that takes researching not only recent, comparable sales in the neighborhood, but also the circumstances behind every sale, the condition of the property and even, if possible, the negotiations and concessions that took place between buyer and seller before closing. This is where a Realtor® comes in. As a professional real estate sales agent, he or she will have the necessary tools to conduct the research that will bring top dollar at the time of sale. In addition, the experienced agent will also understand the recent gyrations that values have gone through in this area and how the uptick in sales requires a slightly more optimistic (albeit conservative) view when setting a price so that the seller doesn’t leave any money on the table. In addition, his or her responsibility will include looking into every comparable property that is currently for sale and the ones that have been offered for sale in the recent past, even if they were later taken off the market. This involves more than desk work, as it is important to physically see these comparables to determine their desirability in terms of condition and location.
The publication Real Estate Forum mentions an “impending boom” in Miami real estate. If that is the case, beware: Don’t leave money on the table. If you are thinking about selling in this evolving Miami market, you must price and position your property conscientiously in order to attract the qualified buyer who is willing to pay the most. It’s a job best left to the professionals.