One of the topics that we discussed at The Real Estate Talk on Monday night was current trends in the market. I wanted to touch on this a bit today, in particular the trends that we are seeing with our current buyers. Right now, buyers in the market are looking for turn-key ready homes. We are seeing a drastic increase in the number of showing requests (and interest) for properties that are completely renovated compared to those that need updating. For example, we recently had a listing that was one of the lowest “$/Sq. Ft.” homes on the market and we didn’t receive an offer for several months. The house needed major renovations – the tile throughout the home needed taken up and a new floor had to be installed, the bathrooms needed completely remodeled, the roof was old. Even though the bones of the house were good with a decent location, floor plan and a large pool – there just weren’t any takers. Compare that house to a similarly priced home we recently put on the market that was perfect in every way and completely move-in ready. We received an offer within 1 week of being on the market and put it under contract shortly after.
One reason we feel that buyers aren’t interested in doing a lot of work right now is because interest rates are so low that they would rather “mortgage up”. By this I mean they don’t want to use their cash to do the renovations, they’d rather buy a more expensive house and mortgage the additional cost.
In general, it is a buyer’s market and there is a decent amount of inventory to choose from. We are definitely seeing homes that need updating take a little longer to sell.
If you are considering putting your home on the market and need advice on whether to do some small renovations first to help sell your home faster and for a higher price, I’d be happy to stop by and give you my thoughts and advice (no pressure). I can be reached any time on my cell at (305) 342-1623 or at [email protected]
Riley Smith has been the #1 Top Producing Coconut Grove Realtor for over 7 years and knows the market inside and out. If you would like to buy or sell real estate in Coconut Grove, please contact us at 305-342-1623 or send us a message here.
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