When it comes to the pricing your Miami Beach home to sell, we always tell our sellers that your home has to sell three times.
The buyers
It has to sell to the buyers, so when they drive by the home or search online, they say, “Wow, I want to step inside this home. This home is the perfect house for me.” You want them to become attached to your home and feel it is worth what you listed it for in today’s market.
The buyers’ agents
It has to sell to the agents who are looking up properties for their clients. Is it priced correctly for the price, condition and location? Agents see hundreds of homes and properties have to be something “special” to get their attention. Also, agents don’t want their clients to fall in love with properties that are priced too high. It can be detrimental to the buyer if they fall in love with a property they cannot afford or one that the agent knows will not appraise.
The appraiser
The third and often the most important person it has to be sold to is the bank appraiser. Because if the property doesn’t appraise, then you have a problem.
Depending on market factors, this third sale may be even harder than the first two.
When pricing your Miami Beach home to sell you need to consider the following
What is the market like in your neighborhood or building?
The Miami Beach real estate market is a very niche market. Prices can vary wildly from one building to the next, from one street to the next and from one line view of a unit to the next. You need to know the market to price correctly.
In a housing market where supply is very low, and demand is very high, home values increase rapidly. One major challenge in such a market is the bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate, comparable sales (similar homes in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.
On the other hand, in a market where supply is creeping up, and demand is lower, it can be challenging for sellers to adjust to market corrections, and buyers are often more cautious.
The year 2016 will be an interesting year. In my opinion, we are going to see a year of market adjustments. There are many factors to consider and they haven’t all panned out yet, but we will get a better idea of what’s happening at the end of the first quarter in 2016.
The good news is that you can sell a home in any Market, you just have to be realistic and know the market.
The best way to price a Miami Beach property.
The most accurate way to price the property in today’s market is to take active, pending and sold properties comparable to your property.
Often sellers like to put the most weight on the properties currently listed. But if a property has been on the market for a year and didn’t sell, that’s not probably an active that you want to consider. Also, if the active properties are priced well over what recently properties sold for, that’s another detail to take into consideration.
I would put the most weight on what is currently under contract (the last listing price) and what recently sold over the last six months. Sold properties are the most accurate picture what your property could sell for, and this is how potential buyers (& ultimately appraisers) will determine what is your home is worth.
Since we are a heavy cash market, some sellers think that a magical cash buyer is going to come out and pay more, this is not the case. Yes, for a super special unique, often high-end luxury property we may see those buyers pay more for a truly, really special property. But for typical condos and homes on the beach, that’s not the case. In fact, most of the cash buyers are very savvy buyers, have done their homework and know the market very well.
The bottom line about pricing a Miami Beach home to sell.
As the seller, it is more important than ever to price your home correctly from the beginning. The data your agent provides may not always be what you want to hear, but often what is presented in the market today. There is nothing worse than a home sitting and lingering on the market for months. When this happens we often find that sellers lose precious time and money.
