It’s getting hot out there, and I’m not just referring to the hot weather!
Since the summer 2017 season began, there has been a substantial amount of activity in the Miami real estate market. Summers are typically the slow season for Miami real estate. I was initially surprised (in a good way) by the action occurring during this Summer 2017 compared to previous summers.
Since my expectations post back in June, which served as an outlook for this Summer 2017 Miami real estate report, the following has happened:
- Phones have continued to ring and my staff and I are still talking to several new prospects each week.
- I placed several of my listings under contract over the past few weeks and also listed some new ones.
- Open house traffic, as seen on my units and on some of my colleagues’ listings, has been robust.
- There’s been a lot of inquiries on certain listings.I noticed that many of which were primarily on Downtown and Miami Beach condos for sale, where inventory was piling up since 2016.
In addition to starting new relationships with prospects looking to buy or sell in Miami, I also try to take notes of the conversations I have with them as a way to get a feel of the market’s activity.
Below are some of the most common themes I’ve heard among prospects during Summer 2017:
Miami Real Estate Summer 2017 Feedback (So Far)
#1 – “I Would Like To Buy In (Insert Condo For Sale In Miami Here) But The Condo I Want Is Rented Out”
I would consider this one of the least I’ve heard lately, particularly from Buyers, but I know EXACTLY what they’re referring to.
For those who unfamiliar, a vast amount of condos for sale in Miami are listed on the market while leased out to a tenant with a long term contract. Doing this enables a potential investor to purchase a unit and start collecting income right away. However, it also pushes away a growing number of end users that are perfectly qualified.
Without pointing fingers, I can count at least three or four buildings in Downtown where a vast majority of units are exclusively marketed to investors. That’s Miami real estate for you. This has caused a lot of frustration for Buyers, and funnily enough, to Sellers as well, who wonder why their condo is not selling.
At the end of the day, it’s also frustrating for me because a good deal could be done. However, it does not go anywhere because it’s rented and the Buyer is looking for a primary home in Miami.
Sellers looking to maximize the amount of Buyers they can get can do so by adding a kick out clause in a lease contracts when negotiating terms with a tenant. Please contact me today for more details on how you can rent out your condo in Miami include this clause if you’re looking to sell down the road.
#2 – “I Don’t Know Where To Buy Exactly. Do I Buy On The Beach Or In Downtown”
As an agent that works in both Downtown Miami and Miami Beach, this is a question that I hear a lot.
I personally believe Downtown and Miami Beach are phenomenal places to live or else I wouldn’t have chosen to sell real estate in either neighborhood. Both areas have their own unique flavor which makes them special and are very different from one another. If a Buyer approaches me with this comment at first, I know right away that prior to showing any properties, I have some steps to take. These steps usually involve:
- Take some time to educate them about the area, its history and what makes each neighborhood unique
- Listen to their wants and needs in an effort to point them in the right direction.
- Create a comprehensive list of Miami or Miami Beach properties that matches their criteria as much as possible.
Doing this helps them visualize their ideal home and also helps me get the job done without looking into real estate for sale that does not match their expectations.
#3 – “Marcelo, What I Wish Above Everything Else Is To Not Stress Over The Process”
Above all else, the most prevalent and recurring theme of the conversations I’ve had lately comes down to buying or selling with the least amount of hassle possible. Everyone, at least from my side of the picture, seems to be stressed out (but in a good way because they’re busy which is a good signal for the economy). I’ve personally heard this the most during listing appointments. Almost every Seller, besides trying to get as much money as possible, have mentioned the wish to have everything handle to the extent where they don’t have to do anything.
I get it, my staff gets it and we will always do our best to keep things as smoothly as possible.
In Conclusion: Summer 2017
For all intents and purposes, I ultimately stick to facts and data when it comes analyzing the market. However, the feedback I get from these prospects does help me keep a closer eye on what’s happening. Summer 2017 is still not over but the trends and numbers I’m seeing show the higher levels of absorption that were missing in 2016. If the right adjustments continue to be made and the market isn’t affected by any type of exterior force, I believe the market should find some stability by the end of 2017.
Miami real estate is our specialty! Our in-depth knowledge of the market and commitment to superior service have been our key to helping others with their real estate goals. Contact The Miami Observer’s author, Marcelo Steinmander today at 305-305-3885 or send him a message here if you’re looking to buy or sell in the area.