What are buyers in Miami Beach thinking?
Miami Beach Real Estate - Randy Haddadin Realtor
What are buyers in Miami Beach thinking?
Categories: Miami Beach Real Estate, 277 wordsSend feedback •As a Realtor in the Miami Beach area we deal with many buyers who are a bit hesitant and wondering where the Real Estate market will lead us into....Here is an excerpt from a buyer of mine and his reason for not buying at this moment, mind you this buyer is a cash buyer and does not really have to worry about interest rates going up so the decision not to buy now is based on waiting for prices to go down a bit while most buyers want to lock in the low rates that we have now instead of waiting to see how the market will do and risk rates increasing. ....."Our opinion is that the Miami market is still too volatile, and ripe for further market correction. The continuing eroding of the secondary finance markets as well as the Fedral Reserves continued resistance to easing Fed funds, leads us to believe over built and or over priced markets still have considerable downward market pressures that may well result in market freefall. Particularly areas of over saturation of similar product such as is the case in Miami and Miami Beach areas. The Miami Beach and Miami condo market appears to be a particularly oversaturated market. Therefore, while we are still very interested and committed to a property acquisition in the South Beach area for our needs, we feel it prudent to wait and see how the Miami Beach and Miami condo market reacts to the continuing market instability...."...I do agree and I think the market will settle with prices falling a bit, in the long run everyone will benefit once the market corrects itself
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Internet buyers now Typical
Categories: Miami Beach Real Estate, 427 wordsSend feedback •The most typical buyer for Real Estate in a recent study done by CAR the California Association of Realtors in 2006 has been the Internet Buyer. The internet buyer is wealthier, younger, better educated and probably married than your traditional home buyer according to the survey CAR conducted. Also, internet buyer reported being more satisfied with the home buying process than the traditional buyer.
But in the last several years per CAR the two types of buyers have been converging and the survey that was done examines this issue.
Your internet buyer has become the typical homebuyer but there are some distinction between the internet buyer and the traditional buyer. Since 2001 homebuyers using the internet for the home buying process jumped to 70% almost a double of what it was.
The use of the internet has changed the way business is done between the buyers and their Realtors as well as the way business is done through the Real Estate industry. The role has improved the Realtors role in the real estate transaction because of the way the homebuyers have been using the internet as very useful tool in their home buying process.
Using the internet the nice out of ten internet buyers said the internet helped them understand the home buying process much better and also indicated that they were more in contact and in better communications with their Realtor along with faster response times.
Because more internet users have faster access to online information, they are able to receive quicker information about products and services. This same need for quick information has also been used for learning more about the home buying process and how it works and to help them be more educated and return this give the buyers a sense of control over the process when buying a home.
The traditional and internet buyer have said that their experiences in conducting home searches was much different than each other. The internet buyer did alto of research about the process of buying a home verses the traditional home buyer relied more on their Realtor for how the process is conducted
Other Findings by CAR
- The median age of the internet buyer was 39 and the traditional buyer was 42.
- More than nine out of ten internet buyers were married while the traditional home buyer was eight out of ten.
- Internet buyer spent 2.2 weeks looking for a home they ultimately purchased versus a traditional buyer spent 7.1 weeks
- 54% of internet buyers said that the information they found on the web was less useful than the information given by their Realtor.
"What is a “Buyers Market?”
Categories: Miami Beach Real Estate, 514 wordsSend feedback •To most Realtors a typical market in real estate is when homes stay on the market at least on average six months before they sell. Realtors keep track of the DOM or the Days on the Market of all homes listed and sold.
If the number of DOM "Days on the Market" goes above six months then it is typically said it’s a Buyers Market if goes below six months then it shifts to a Sellers Market. As we are seeing now here in Miami Beach in the surrounding areas of Miami-Dade County and Broward County and South Florida the last three years and more have been a really nice Sellers Market demanding any price and getting what they ask for. The market now is slowly shifting into a Buyers Market and the homes are taking longer an the inventory of homes have increased. Now the Buyers have a lot to choose from this inventory we have here in Miami Beach and the surrounding areas.
Winter time is said to be a Buyers Market. In slow times, homes for sale are marketed aggressively and would sell for a lower price versus if the home was marketed during a busy period.
Come Spring time the activity picks up with more homes coming on the market since this is when families (typically still considered the largest buyer demographic) tend to want to buy their home so they can move during the summer season.
But a Buyers Market can still exist during this season if the DOMs get longer, falling prices and a large inventory for buyers to choose from.
Buyers market can lag around for a while if a large employer in the area closes its doors, natural disasters such as they experienced in New Orleans when Hurricane Katrina came rolling in and of course here in Miami Beach with Katrina and Wilma and Charlie, Hurricane seasons affects the market in such a way for DOMs to be longer. All this can affect home values for years.
Once homes for sale become competitive, buyers realize they can choose from many since the inventory is so large. Material things in homes become bargaining chips for buyers like the expansive chandelier or the expensive curtain. Buyers can demand those items be part of the home for the sale to take place.
Other contingences the buyers would ask for are possible costs to be off set for example to pay for some of the closing costs or maybe even a home warranty.
One thing for sure is that the market is never one sided. At any given time the market can shift and the turn of a dime. An area that has seen depressed times can spur many investors to reinvest into an area because of the low prices and shift the market the other way with prices being driven upwards as we have seen here in recent years in Miami Beach, Doral, Homestead, Miami Shores, Biscayne Corridor and Downtown Miami.. For more information about your market conditions contact your Realtor Randy Haddadin a Miami Beach Realtor at 305-903-9850.
Agents: So you want to enter the Luxury Home Market!!!
Categories: Miami Beach Real Estate, 584 wordsSend feedback •Entering this high end luxury of the real estate business Realtors need to concentrate on two items: Service and Competence followed by a sophisticated marketing plan. To woo these affluent buyers and sellers agents need to know a few things about doing business with them.
Affluent clients care about price: value equation than about the price alone. This means these types of affluent clients do not mind paying a premium for products and services you have to offer. With this in mind, Realtors who are seeking such clients need to really differentiate themselves and be really unique compared to their fellow Realtors are also targeting the business of the wealthy. Once you have proven yourself and the services you can offer that others cannot, then you negotiating your professional fee will not be an issue.
The wealthy client has grasped the idea of the internet and what it can do for them. Using the internet is becoming a lead generation and Marketing tool for Real Estate agents to reach such clients. One needs to have a system in place to capture these leads and managing the leads along a strategy for marketing and promoting your listings.
Remember that wealthy clients are smart and will study the market and also do their homework. They will even interview other realtors who will be vying for their business and to become their Realtor. So be prepared and do your homework. The affluent client expects you to be a wealth of resource for them for market statistics and information about the real estate industry.
Remember, you are helping the affluent client with a luxurious life style choice. You are assisting them with this pleasurable experience of dining, driving and more. The home they choose is a life style and you have to be aware of this life style. Also, your marketing efforts should influence you and how you market the properties. Having a “party to sell the house” is an effective marketing tool because your are pointing out the life style of the home you are marketing. These types of intimate gatherings are being used more and more in much pricier properties and create a buzz in the market area you are working in and targeting.
The Affluent are striving to be a connoisseur of sorts. How can you tell a good wine, a great steak and recognize a handmade suit. They want to be able to identify and appreciate quality. Here is where we the Realtor need to know product knowledge and how it is important. We need to know the top of the line appliances and fixtures, top notch finishes and what adds value to a luxury home. To be luxury home specialist you need to know fine homes and how to market these luxuries properties to be credible in their eyes.
Finally, one needs to understand the motivation of affluent buyers and sellers including their attitudes and how to meet their expectations and needs. We are selling a dream of living a life style worth living. Many spend to be in this prestigious affluent group which define this segment of life style. Spending to some means and signifies power and to others it’s a self worth and a reward for all the hard work to get into their current position and status within their affluent group. Even some say wealth signifies an achievement and prowess. But as Realtors, we are there to help to assist the wealthy in finding their dream and lifestyle living.
Are Consumers driving the Real Estate industry into a change?
Categories: Miami Beach Real Estate, 464 wordsSend feedback •A new study conducted by National Association of Realtors that compromised of real estate brokers, Realtors and consultants reveal that consumers are a driving force behind this industry change. Consumers are demanding more real estate products and options. With conflicting consumer desires, the consumer is asking for more personalized services but also some autonomy in the real estate transaction.
The study also showed the at consumers want:
Online searches and tools
Full information about properties listed
Rapid response to their online and telephone inquires
A friendly experience with the real estate agent and company
A Smooth transaction process with no hidden surprises along the way and at closing
Low commission fees or fee packages
Last but not least, a sense that the Realtor and Real Estate Company add value to the whole transaction process of buying and selling.The reports also states that retail giants like Wal-Mart and Home Depot dominate in their sector because they can offer more services coupled with lower prices and if companies cannot compete in this changing industry that consumers demand they will go out of business, hence they will fail like General Motors has to the foreign competition.
Because of the over saturation of Realtors in the market place pressure to lower the fees is at a rapid pace the study has shown. Because of this, realtors and real estate firms need to experiment with using different business models to survive in this ever changing Real Estate industry.
The advancement of technology and the internet has also empowered the consumer to demand more services and information. It yet has to be seen if this change in technology and the fast pace growing of the internet will be revolutionary or evolutionary. Consumers are very comfortable using the internet to buy and sell real estate and to look for vital information about neighborhoods and property listings which all are readily available online at the fingertips of potential buyers and sellers.
One consultant in that participated in the study stated that in the next five years, 10% of Real Estate transactions will be conducted over the internet but the other side of this, many consumers will still demand the traditional model of doing real estate business transactions
The data contained in the MLS is a big factor and key issue. Should the public have access to this information so easy or should it be controlled and be a service for realtors and brokers?
Also, the changing market conditions will allow the industry to test different business models to be able to survive the coming changing times.
Finally, managing internet leads is very important to realtors and the growing referral fee business among real estate professionals. The study showed that 25% of transactions came from the referral business which can determine long term profitability.
