Tips For Selling Your Home In a Shifting South Florida Housing Market

Sellers have held the upper hand for years, but nowadays, the playing field is a lot more level. The South Florida housing market is changing. Perhaps you know this first-hand, or are just starting to become aware of it. Sellers can no longer count on multiple offers and rapidly-escalating prices, according to the Miami Herald, and this new reality may mean new strategies. Most sellers will not be able to command top dollar for their Florida real estate, much as they may believe otherwise.

“There are still some hot localities and hot properties in every market, but a lot of these are unique, high-end homes. Maybe they offer a great view, close proximity to great amenities, or a lakefront where you can dock your boat,” said Mike Summey, co-author of books on real estate investing published by McGraw-Hill. “When pricing your home, you need to look at the facts for your area without emotion. Face reality and price accordingly.”

With that in mind, here are several pointers for would-be sellers planning to market their homes in the near future:

1. Watch for signs of a cooling market. One sure sign that the temperature is falling in a neighborhood is the number of available properties. It is easy to obtain statistics from your agent on an area’s “average turn time” or the number of days a home is on the market. If you notice this interval lengthening, you can assume the housing market you’re looking at is losing momentum. An inventory bulge also hints at the same trend.

2. Don’t follow the lead of your neighbors. If they all jumped off a cliff, would you do the same? Dorcas Helfant, former president of the National Association of Realtors, believes many sellers cling to unrealistic price expectations in spite of clear evidence that their markets are chillier than before. Use this collective stubbornness to your advantage. Through the Internet, buyers are keeping up with shifts in the real estate market like never before. They’ll spot an overpriced home and will not make an offer. Price your home fairly and it will garner interest.

3. Avoid delaying a sale unless you can afford to. Obvious as it may sound, it really isn’t to most people. Suppose you own stock in a normally solid company that’s experiencing a rough patch. Shares have slipped somewhat, but you are confident of a rebound, so you hold off. That’s a good strategy in theory, but with the overvalued South Florida real estate landscape, you could be looking at a long haul. Most people don’t have the luxury of waiting, and a house that sits unsold for months on end risks becoming stigmatized.

4. Forget about overpricing based on staging. In the last five years or so, many sellers have begun hiring “stagers,” or professionals with a flair for interior design. They help whip the home into pristine condition in hopes of a quick sale. While it’s true that this staging, along with fresh paint and new carpeting, can definitely help hasten a sale, last-minute remodeling won’t allow you to fetch an over-market price for your property. With Florida home loans on the rise, the wool isn’t getting pulled over anyone’s eyes. A fair price will stand out. Period.

5. Consider offering seller financing. If you’re in a strong position with your money, you may wish to provide a mortgage to your buyers (often called seller financing). Assuming you can offer this custom Florida home loan at a rate below prevailing bank charges, purchasers could be willing to spend slightly more than they otherwise would for your place. Of course, you’ll want to carefully screen any Florida home loan applicant you are thinking of accepting. Be sure to obtain credit reports and legal advice.