EWM’s year-end South Florida Real Estate market report “Insight”, was just released. This report offers a look back at 2016 and a look ahead to the future of South Florida real estate, looking at the factors that have affected the markets in Miami-Dade and Broward counties. There are a lot of promising trends to look forward to, says EWM President Ron Shuffield in the report’s opening letter. But the main issue that will have an effect on the market will be pricing.
“In a market where price is the driver, the initial asking price is an absolutely crucial component of the marketing process,” the report states. It gives the example of listing a property with a “true market value” of $2 million. This price point gives the property a visibility rate of 60%. Many sellers, however, will be tempted to list that same property at a higher price point, to see what activity it creates. But raising that price to a starting asking price of $2.5 million, for example, brings down the rate of visibility among potential buyers to 30%. On the opposite side, if that asking price was lowered just slightly to $1.9 million, that brings the rate of visibility up to 75%!
The report stresses that for sellers who are motivated to sell in a timely manner, the initial asking price is essential. “The money is out there… buyers are just waiting for the right price. Pricing is the most critical marketing tool when selling a home. Setting a realistic market value price on a property on the first day will generate a faster sale.”
EWM’s Insight Market Report is one of the most useful reports for realtors, sellers, and buyers. The report is thorough and breaks down activity by price point, location, and compares our local market to the national and international market. It is essential reading.
You can see the full report here: ewminsight.com
