Rotary Golf Classic 2015 was held at the Biltmore Hotel during the month of February. Proceeds raised benefit Miami resident high school students transitioning into college. This event is hosted annually and attracts about 200 golf players that get to enjoy breakfast, an 18 hole game, and an auction-luncheon. More details can be found at rotarypinecrest.org.
Wishing all moms have a great weekend lined up with your loved ones. And thank you. Thank you to all my clients that are moms which I have had the honor to service the sale or purchase of your house. A home is one of few places where great memories are created with family. And I thank you for allowing me to be part of such process.
Happy Mom’s Day!
It’s a seller’s market throughout Miami as prices get hot during the first quarter of 2015. Quite a turn around from the later half of 2014. Why the rebound? Foreclosures are no where to be seen and equity sellers (regular home owners like you and I) are gripping to their homes with vengeance reclaiming what they had lost in value since the real estate crisis.
This lack of inventory is giving buyers little to choose from and even lesser price negotiation leverage. Sellers are literally getting away with murder by asking what they want for their home, and getting it.
What’s the outlook? If you ask a seller, bright. If you’re asking a buyer, it sucks. The foreclosure market is expected to continue to dwindle. The economy is expected to continue to improve. And as long as home price appreciation meets or exceeds the cost for home owners to hold onto their properties, the expectation is that they’ll wait “a bit longer” to sell.
What was the average home worth in 2010 vs now is 2015? See below graph.
How long are single family homes staying in the market until they are sold? See below graph.
What type of sales are dominating your neighborhood? See below graph.
Pinecrest’s most expensive property for the month of February is located on 7755 SW 120 ST Pinecrest FL 33156 and it sold for just under $2.3MM dollars. Built in 2004, this home measures 5,773 square feet under AC and sits on a 37,853 square foot lot. Other specs include 5 bedrooms, 5 baths, 3 car garage, and a pool.
Listing courtesy of: Hazel Goldman, RE/MAX Advance Realty
Kendall’s most expensive property for the month of February is located on 12161 SW 95 Av Kendall Florida 33176 (Montgomery Grove Estates) and it sold for a $1,000,000 bucks. Built in 1980, this home measures 4,439 square feet under AC and sits on a 40,511 square foot lot. Other specs include 5 bedrooms, 3.5 baths, two car garage, and a pool.
Listing courtesy of: Monika Tefel, Coldwell Banker
There is no standard as to the amount of money you should receive in escrow when getting an offer. But when representing a seller, I usually want the amount to be somewhere between 3% and 5% of purchase price. Why? The more money there is on the table, the more motivated a buyer will be to close the deal. Off course, we know the buyer would want to close simply because they want the house. But knowing there is money at stake without them yet being the owners…trust me…it elevates motivation.
Its kinda like what Tony Robbins says. What’s stronger than wanting something so bad? The fear of loosing it. And no one likes to loose money.
As far as the escrow agent. Again, when representing the seller, I let the buyer make the choice. I’ve heard other real estate agents say that it is in the interest of the seller to pick the escrow agent so they have control of the money. Not true.
As long as the buyer’s money sits in a title or escrow company created in the State of Florida, the money cannot go anywhere unless both buyers and sellers agree to where it goes. If the title company or escrow agent does not follow the latter, they are breaking the law.
A real estate contract also allows control of when to make such escrow deposits. And you basically have three option. Say you got an offer for $500,000 and the escrow deposit amount is $20,000.
(What is an executed contract?)
What’s my advice? I always negotiate to get 50% of it upon execution of contract and the remaining 50% no later than when the inspection period ends. Say the offer you get allows the buyer 10 days inspection period. For the above example, I would demand $10,000 up front and $10,000 on the 10th day. Why?
Because the inspection period gives the buyers absolute discretion to cancel deal. Yup…they don’t have to even give you a reason. Get the logic?
However, once we get passed the inspection period, things change. That’s when things get a lot more serious and the fun begins.
Got an offer? And want a second opinion on the escrow amount you are being offered? Contact me today!
Mario Avalos 