Our Sellers had their Coconut Grove townhouse for sale by owner for almost a year. During this period I kept in touch with them because I knew that they had a desirable property that would sell with the right…

-Marketing
And
-Staging

They were content paying 3% if we brought a buyer. It was the additional 3% for listing the property (total of 6% commission) that they were looking to avoid. Their feeling was that paying 6% commission would reduce their net vs 3% commission. This is the main concern of 95% of the for sale by owners we communicate with. FYI…It has been researched over and over that homes sell for more when listed with a realtor than they do By Owner.

After a year in November 2011, they determined that they wanted us to begin listing and marketing the Coconut Grove townhouse as soon as possible.

My Advice to our Seller…

1). Wait 2 months before hiring our us.
I counseled them to wait until mid-January so that we could put the holiday season slow-down behind us. This way the entry of their listing to the Miami MLS would coincide with the point when all of the buyers were again beginning to look.

2). De-Clutter before you hire us.
Our Sellers took our advice and moved furniture around, sent excess items to storage and threw away other extraneous items.

The Result of Staging…
The home felt like an entirely different space with room to breath. One’s first impression walking through the door (which often
determines whether or not one buys) was that of additional square footage and clear views through the sliding glass windows to their beautifully landscaped outdoor space.

The townhouse SOLD for $15,000 over Appraised value…
As is the case with many of our bank financed deals today, the appraisal came in lower than the agreed upon purchase price between
buyer and seller. Regardless, the buyer determined that the purchase price of the property was fair in today’s appreciating Dade County real estate market.

In my opinion, this was the prudent thing for the buyer to do…
One year ago, very few buyers were paying a penny over appraised value. Today, it is becoming the norm. In today’s appreciating South Florida market, The last 4 buyers of our Seller listings have chosen to pay more than what their lender’s appraiser said the home was worth. Today’s buyers are recognizing that market value (what a buyer is willing to pay) is often higher than appraised value (what value a bank assigns to a property when deciding to underwrite a mortgage).

This deal was truly a win-win for buyer and seller. Both were pleased with the outcome.

Question…
Did the Seller receive value by paying 6% commission to have us manage all aspects of the sale for him?

Please share your thoughts.

Broker-Associate (Seller Specialist)
Jason Smith
ShowcaseMiami Team
Keller Williams Realty
786-326-8115

Our Home Buying Story…

Many months ago, we started driving to open houses on the weekends to get an idea of the market.  This quickly allowed us to start recognizing value when we saw it.  Believe it or not, one can literally get the lay of the land in terms of recognizing value within 8-10 property viewings.

The overpriced homes stood out as well as the well-priced homes.  The overpriced homes became stale on the market while the well priced homes went under contract within 30 days and closed shortly thereafter close to the asking price.

My goal in the purchase…

To get the absolute BEST deal possible.  Short sales and foreclosures were fair game in my book.

My wife’s goal was quite different…

She wanted a home she would be proud of.  Getting the absolute best value on a per square foot basis was not her main priority.

Needless to say, this caused some friction between us in the home-buying process.  After a few months of looking, we were at an impasse.  I wanted to put offers on these terrific short sale and foreclosure values that were being presented during this historical buyer’s market.  She did not.

Observation…

Once we were fully aware of every single home on the market, our only focus became new inventory.  This is a critical distinction.  The only homes on our radar became the brand new entries hitting the market.  This is why it is so critical to price a home correctly on day one when it hits the Multiple Listing Service (MLS).  We would race to see these new listings within 48 hours to see if we should make an offer.  Trust me, competing buyers were doing the same thing.  That is why homes that sell in the first 2 weeks sell close to or above asking price.

Question…

Were we going to make a low ball offer on a brand-new listing on the market?  Not a chance.  We didn’t have that  luxury on new listings.  On the other hand, we did make offers quite a bit less than market price on the stale listings available in the market.

Lesson learned…

In our situation, at least, I learned that our home search would continue forever if I continued to hold my ground for the best deal now (update it later).   I finally acquiesced and she chose an updated home that spoke to her (and myself I might add) .  We chose a fairly priced home in Coral Gables that met all our criteria (open floor plan, 2 car garage, quiet street, updated).

Moral of the story for Sellers…

Price your home according to market conditions on day one instead of price reductions later on after the initial 2-3 surge of buyer interest.

Moral of the story for Buyers…

Have a dedicated realtor working for you to keep you abreast of the brand new listings as soon as they hit the mls.  Simply watching the new listings on portals such as Realtor.com, Trulia and Zillow is not enough to be in the game.  The reason for this is that these portals receive the new listings from MLS several days after they hit the market.  The best values are already under contract at that point.

If you are looking to buy or sell a home in Coral Gables or the surrounding areas, it would be an honor to serve you.  Call Jason Smith at 786-326-8115.

Broker Associate (Seller Specialist)

Jason Smith

ShowcaseMiami Team

Keller Williams Realty

786-326-8115

The ShowcaseMiami Team and I have been having conversations with the Sellers of a magnificent new construction home in Miami. 

The Question…

Should the Sellers invest $50,000 to $100,000 more in finishes for the home so that the home can be marketed as “turnkey”?

The Experts weigh in…

You may recall the Miami Real Estate Seminars that I moderated at the University of Miami last year.  Expert Panelists included:  The Jills,  Audrey Ross,  Mayi de la Vega,  Jeanne Nicastri and Carlos Justo.  All concurred that today’s Luxury Buyer is looking for turnkey (ready to move in immediately with no remaining updates needed).

The Challenge…

Understandably, the Sellers aren’t keen on investing even more money in this brand new home if it is not absolutely necessary.  What  happens if they complete the finishes and these aren’t to the new Buyer’s taste?

Jason’s Opinion…

Given the Sellers’ limited budget, I recommend carpeting the  bedroom floors (even if the Buyer will change later to wood or marble).  If Buyers see that the home is not yet complete, they will automatically make lower offers than the Seller is willing to consider.

Another Factor for our Sellers to Consider…

Peak season is another factor to consider.  If the Seller elects to finish the home, this could take 2-3 months.  This would mean the property won’t be ready to be listed until July or August.  By then, most of the seasonal buyers have selected the home they will purchase and they are in escrow awaiting the closing.  The idea for most buyers who have children is to close before school starts in late August.

This is a perfect example of the difficult decisions that Sellers sometimes have to make prior to selling real estate in Miami. 

Our passion is to assist Sellers in realizing the best possible outcome in the sale of their Miami home.  To discuss the best particular sales strategy for your Miami home, call Jason Smith at 786-326-8115 cell.

Broker Associate (Seller Specialist)

Jason Smith

ShowcaseMiami Team

Keller Williams Realty

786-326-8115

Challenge…I was working with a seller whose Coconut Grove townhouse had been on the market by owner for almost a year.   He hired the ShowcaseMiami Team and me to upgrade the marketing to ensure a sale.  The first thing I recommended was to de-clutter by throwing away or storing as many items in the home as possible.  The idea was to create a more open space for buyers to enjoy (rather than feeling claustrophobic the moment one entered the home).

Outcome…The Sellers followed my advice and the Coconut Grove townhome was under contract with a motivated buyer within 10 days.

2) Paint inside and out

It is said that there is no better investment that a homeowner can undertake than to paint the home.  Based on our Sellers’ results, we agree completely.

3)  Try to avoid listing your Miami property in November or December.  It is a fact that there are far fewer buyers during this time of year (than January through April).

The Coconut Grove townhome Seller mentioned in point #1 was ready to list with the ShowcaseMiami Team and me in November.  However, since our goal was to sell the townhome for the highest price in the shortest period of time, I urged the Seller to wait until mid-January (when the Holiday season was behind us) before listing the property.  They did so and the property went under contract in 10 days.

4) Invest in an Appraisal

By investing $400 or so in an appraisal, a Seller has an idea what lenders will feel comfortable financing.  If the appraised price is to the Seller’s liking and supports what they’d like to sell the property for, the Seller can proudly state in the Multiple Listing Service remarks that “the home just appraised for the asking price”.  This is designed to give comfort to the Buyer and Buyer’s Agent that the property is a good value and not overpriced.

If the appraisal result is less than the Seller wishes, the Seller is under no obligation to disclose the appraised price to the public when marketing their property. 

5) Invest in a Home Inspection

Home Inspection results from home Buyers are one of the primary reasons that sales fall through.  Sellers can avoid this heartache by investing in their own home inspection prior to listing their property for sale.  This allows the Seller to address the items that are sure to surface during the Buyer’s inspection.

6) Call Jason Smith at 786-326-8115 to discuss the best sales strategy for your particular Miami property.

Broker Associate (Seller Specialist)

Jason Smith

ShowcaseMiami Team

Keller Williams Realty

786-326-8115

The chart above illustrates…

During the first eight months of 2011, there was a large decrease in available homes for sale.  The available inventory for Dade County single family homes over $800,000 had a healthy reduction from 1437 to 1206.

In contrast, during the next 7 months (Sept 2011 to March 2012),  available inventory of single family homes over $800,000 remained constant at 1202 in Sept. 2011 vs 1188 in March 2012.

What does this indicate?

It signals that homeowners in the $800K plus range who wanted to sell but did not need to sell during the downturn of the past few years are seeing that the market conditions are better for selling now.

The Challenge…

These Sellers who wanted to sell but did not need to sell are introducing their homes to the market at the same time causing an abundance of supply over $800K in some areas.

The Good News…

January, February and March of 2012 has seen a spike in purchases in Miami’s over $800K price range.

Conclusion…

It is important for Miami Sellers over $800K to price their listings aggressively in relation to the competing Sellers in order for their listings to garner offers before the end of peak selling season for Miami Single Family (January through July).

For an interview to discuss the best sales strategy for your particular Miami home, condo or townhouse over $800K, call Jason Smith at 786-326-8116.

Broker Associate (Seller Specialist)

Jason Smith

ShowcaseMiami Team

Keller Williams Realty

786-326-8115

By now, you are aware that the supply of available housing in Dade County has gone down by 40% in just 14 months. (There is 40% less inventory for buyers to choose from than there was 14 months ago).  Buyers from around the world have been purchasing Miami properties that they feel are fairly priced.

By now, you know that prices are creeping up in parts of Dade County.

And yes…Miami Realtors are benefitting from these sales transactions.

Below, you’ll see a list of other professions that are also benefitting from increased Miami real estate sales…

• Mortgage Brokers
• Title Companies
• Real Estate Attorneys
• Appraisers
• Insurance Agents
• Surveyors
• Moving Companies
• Handymen
• Painters

Popular upgrades that new buyers are investing in with their new purchases…

Beyond that, tradespeople  are benefitting from South Florida’s real estate resurgence.  Here is a sampling of coming upgrades from three of our imminent closings over the next few weeks.

• New Impact Windows…$15,000-$25,000 for a 2,000 square foot home
• New Kitchen Counters…$2,000 and up
• New Kitchen Cabinets…thousands (depending on the material)
• New Flooring…thousands (depending on the material)
• New Roof…$10,000 and up (depending on the size of the home)

Further good news is that the professionals above will be spending their income on non-real estate related goods and services throughout Miami (further distributing money into the S. Florida economy).

If you are thinking of selling your Miami home, condo or townhouse to upsize or downsize, call Jason Smith for a complimentary consultation to discuss the best sales strategy for your particular Miami property.

Broker Associate (Seller Specialist)

Jason Smith

ShowcaseMiami Team

Keller Williams Realty

786-326-8115

Open House…(12:30-2pm)

2233 SW 10 Street

Miami, FL  33135

2233 SW 10 Ave

4 + Den/ 3 Bathrooms

2,627 square feet living area

6,000 Lot Size

MLS# A1629185

Attractive period house with easy access to downtown Miami and to Coconut Grove/Coral Gables and new Marlins Baseball Stadium. Located on low-traffic suburban, tree-lined street. Tile floors throughout and wooden staircase.  Four bedrooms plus den which is easily converted to 5th bedroom.

2233 SW 10 Street

2233 SW 10 Street

2233 SW 10 Street

2233 SW 10 Street

2233 SW 10 Street

Broker Associate (Seller Specialist)

Jason Smith

ShowcaseMiami Team

Keller Williams Realty

786-326-8115

(12-2pm)

 Sunday, April 22…

(2-4pm)

4665 SW 64 Avenue, Miami, FL 33155

4665 SW 64 Avenue

 

 

(Very close to University of Miami)

1.4 Acres on Coral Lake

3 Bedrooms/ 3 Bathrooms

2,449 square feet living area

Offered at $825,000

Serene lakefront home on 1.4 acres next to University of Miami. Astoundingly, this property is situated in prime East Dade County just 5 minutes to (Coral Gables and Coconut Grove). The home rests high above Coral Lake with 103 linear feet on the water.  The home features spectacular views of the swans floating by.  The mature trees provide a refreshing canopy during those hot summer days.  The breeze off the lake adds to the cooling comfort.  Trophy property!

Broker Associate (Seller Specialist)

Jason Smith

ShowcaseMiami Team

Keller Williams Realty

786-326-8115

The graph above shows all Single Family Homes on the MLS in Dade County (between $500K-$800K).

Just 14 months ago…

In the $500K-$800K Single Family price range, there was 17.8 months of single family inventory.   (This means that it would have taken 17.8 months to sell all of the available Single Family Dade County Homes (that were then listed on MLS between $500K-$800K) if no other homes came on the market

Today…

There is only 7.8 months of Dade County Single Family Home inventory on the market in the $500K-$800K price range.  

At 6 months of inventory, the market is neither a buyer’s nor a seller’s market.  It is considered a balanced market.  It just goes to show how much the Miami real estate market has changed over the last few years (when there were inventory levels as high as 47 months in this price range at the end of 2007!)

Broker Associate (Seller Specialist)

Jason Smith

ShowcaseMiami Team

Keller Williams Realty

786-326-8115

(That is what the Dade County market graph below illustrates)

Observations…

• Pronounced jump in seasonal buying activity Jan-March of 2012 vs Jan-March of 2011
• 37.8% less available homes for sale (current vs. same quarter 1 year ago)
• 15% increase in pending sales (current vs. same quarter 1 year ago)
• Available single family listings in Dade County has gone from 5744 in January 2011 to 3143 in March 2012
•  

What this means for Sellers in this price range…

If your property is priced according to recent sales and competitively with the available competing listings, it will be under contract within 30 days (likely attracting more than one offer) and selling close to full price.

What this means for Buyers in this price range…

If you plan to make offers between now and July (July is the end of peak buying season for single family), be prepared to face multiple offer situations. 

Broker Associate (Seller Specialist)

Jason Smith

ShowcaseMiami Team

Keller Williams Realty

786-326-8115