How the Market has Changed

I’ve received lots of feedback on the lead story in my last newsletter in which I lamented the current state of the real estate business in south Florida. Although it felt great for me to vent about my frustrations, I realized the article was not especially helpful to the very people I have dedicated my business to serving: prospective buyers. The fact is, many people from around the country view this as an unprecedented occasion to buy into what remains one of the nation’s most desirable communities. And I’d like to help them. Beginning with this newsletter, I am going to offer some insight about the current environment and some practical suggestions for buyers who are serious about getting the most from their real estate investment – and their broker – during tough times.

Many of the people seeking to buy real estate in and around Ft. Lauderdale today have had prior exposure to the market. Maybe they invested in property and sold it shortly after purchase for a significant profit. Or they came close to buying but decided to wait until prices came down. Or maybe they have spent time here over the years and decided they would like to buy a second home or a place for retirement when the time is right. In order to get the best deal -- and the best service -- in this environment, it is important for buyers to understand the ways in which the market is the same as they have experienced in the past and the ways in which it is has changed.

WHAT’S THE SAME WHAT HAS CHANGED

Diverse Properties Ft. Lauderdale offers a wide range of Florida traditional and contemporary homes, condos and apartments at prices to suit every buyer.	More Inventory Real estate development has outpaced recent growth and significantly more people are selling than average, so there are many more properties available.
Motivated Sellers Divorce, relocation, and settling estates are among the life changes that motivate some sellers to try to sell their properties quickly and price them accordingly.	Different Motivations Today, some of these sellers are more likely to be motivated by financial hardship and are reluctantly selling real estate to help regain solid financial footing.
Pricing Factors To fairly price real estate today, sellers and their agents still take into account time-tested factors, including quality and condition of the property, location, and recent comparable sales.	Off-Market Deals In addition to properties openly listed for sale at market-tested prices, there are now other opportunities that are not widely promoted including foreclosures and short sales.
Financing Options Qualified buyers will find responsible and responsive lenders willing to offer a range of financing options.	Focus on Highly Qualified Buyers Reputable lenders are now more risk averse and will only consider prospective buyers with excellent credit history.
Complex Transaction The process of buying real estate is time-consuming and complex and requires buyers and sellers to have professional counsel and to maintain focus.	Emotional Transaction Real estate transactions today are often highly emotional, with all parties feeling somewhat compromised by the process or the ultimate deal.
Solid Long-Term Investment Ft. Lauderdale real estate has shown solid growth over the long term and remains a good investment today.	Short Term Risk Buyers who purchase now will need to wait longer for properties to appreciate and they may face some risk of short term decline.

By understanding the changes in the market, buyers are in a better position to go into the process of buying real estate in south Florida with realistic expectations. From my perspective, the more my clients know about the market dynamics we’re going to be dealing with as a team, the easier it is for me to help them navigate the new environment and find just the property they’re seeking.