Home News Realtors and Clients See Market Changing

Realtors and Clients See Market Changing

by admin
0 comment

In the South Florida area, many sellers still want to list their homes on the high end, but they are also beginning to understand the new rules in this changing market.

FORT LAUDERDALE, Fla. – The housing market is slowly beginning to rebalance, with less enthusiastic buyers and rising interest rates forcing sellers to adjust to a more normal market.

South Florida realtors stress it’s still a seller’s market, but homes can be taken off the market in days, rather than the six-month or yearly frenetic markets where bidding wars were common. Flying out, the buyer waived inspection just to enter the house.

“Sellers are afraid to miss out and know the market has changed,” said Alex Pratt at Compass in Boca Raton. “We are lucky that prices are where they are now, but we are not going to get into a bidding war like we did a few months ago.”

Here’s what sellers and buyers need to know and be prepared for in light of the changing South Florida real estate market.

set the price of the house correctly

Despite record high home prices, it’s important for sellers to price homes based on their value, not what they feel they’ll get at the peak of the market, says real estate the trader said.

“Historically, people have said that with low inventory and a strong buyer pool, there is a great opportunity to get record prices, or to pay more regardless of how other sales have been. We set it high knowing we had a great opportunity to get someone willing,” says Dave. Gunther, a real estate agent at Lang Realty in Delray Beach.

But sellers can’t get away with it now because buyers recognize there are more options in the market to choose from. If you don’t end up buying a house at the current price, something will come on the market soon. , he added.

“I must tell you again [sellers] How to price a home right,” says Jeff Lichtenstein of Echo Fine Properties in Palm Beach Gardens. “For example, he might want to price at $685,000, but the actual price he should be at $650,000. They were able to avoid it.”

Pricing that is too aggressive may be reflected in price cuts.

Don’t expect bidding wars

Sellers have become accustomed to bidding wars amid the pandemic boom as buyers eager to get their hands on the homes and facing stiff competition have raised prices to win the homes.

Real estate agents warn that such cases are not very common, which means sellers should be prepared to consider every offer that comes their way.

“What’s not happening is that we haven’t put the house on the market, and we’ve heard 20 bids and seven offers,” Lichtenstein said.

According to buyer competition data from Redfin, 37% of offers by Redfin agents had at least one competing offer in July. This is down from 47.8% of offers in June and 51% of offers that had at least one competing offer in the same period a year ago.

Some properties that are on the newer side and have the qualities most buyers want (3 or 4 bedrooms, pool, great views) could face a bidding war, but that’s no longer the norm .

Overall, buyers feel they have more choice and don’t have to compromise as much in the home they buy. Because when inventory comes back, options come back, the agent added.

Stage Home Rights and Willing to Negotiate

Once the housing market took off, most sellers no longer had to negotiate with buyers. Buyers now recognize that there is a shift in the market and sellers need to accept that buyers have more power.

“Sellers need to be more open to negotiations, whether it’s price or closing date. People used to abandon lending and valuations, but now it’s normal like it was two years ago. We’re going back to the old market,” Platt said.

It used to be common for buyers to abandon inspection periods, but that started to change as the market cooled. Gunther said that previously fast-moving properties waived him an inspection period for every three contracts, but now he’s only seen one such contract in the past six months. There is none.

As such, sellers must be willing to accept reasonable requests from buyers.

“Sellers need to know when to bend, especially if there are reasonable demands on inspection,” said Lichtenstein. “Otherwise the buyer will cancel the contract.”

In June, 22.1% of pending home sales were canceled in West Palm Beach, 22% of pending sales were canceled in Fort Lauderdale, and 21.5% were canceled in Miami, according to Redfin data. .

© 2022 South Florida Sun Sentinel. Distributed by Tribune Content Agency, LLC

You may also like