Many South Florida sellers still want to list their properties at the highest prices. However, they are also beginning to understand the new rules of this changing market.
The market of residential property is gradually recovering its balance, as lower demand and higher interest rates are cooling it down. Sellers have to adapt to the new circumstances.
South Florida is still the seller’s market, although the competition among buyers is gradually reducing and homes are no longer sold in a few days. “Sellers are afraid to lose profit and know the market has changed,” Alex Platt from Compass, Boca Raton, says. “We are lucky that prices are still high but the demand will no longer be what it was a few months ago.”
Here are a few recommendations for sellers who want to adapt to the changes in the South Florida real estate market.
Appraise your property correctly
Despite the record-high prices of residential properties, it is vital for sellers to appraise their house based on its actual value, not the price they think they could have gotten in the peak market.
“People used to set high prices knowing that the sale was guaranteed by the low demand and the great number of buyers,” Dave Gunther from Lang Realty in Delray Beach believes. But sellers will no longer get away with excessive overpricing because buyers know there are more properties in the market nowadays.
“We must teach [the sellers] again how to appraise a house correctly,” Jeff Lichtenstein from Echo Fine Properties in Palm Beach Gardens says. “They may want to value it, say, at $685,000 but the actual price should be about $650,000. They could get away with it in the past but now the situation has changed.”
Do not expect extreme interest from buyers
Sellers became accustomed to extreme interest in their listed property during the COVID-19 pandemic, as buyers striving to purchase a home and facing severe competition were ready to pay extra. Experts are warning that such cases are becoming increasingly rare, which suggests that sellers must be prepared to consider all offers they receive.
Some new developments with features that most buyers want (such as three or four bedrooms, a swimming pool, and a stunning view) may experience extreme interest from customers, but this is an exception, not a rule.
Buyers now believe that the choice is far greater and they no longer have to compromise on a property they are interested in. If they dislike something, they simply leave and start looking for new options.
Be ready to negotiate
When the residential property market was growing, most sellers did not have to negotiate with buyers, many of whom were ready to compromise in order to get a home. Buyers now realize that a shift has occurred in the market and sellers have to reconcile themselves with the idea that they no longer have the upper hand.
“Sellers must be more open to negotiations, be it about a price reduction or a change in the payment schedule. Some time ago, buyers would even waive the property inspection, but things will now resume their original course, the way they used to be two years ago,” Platt says.