Waiting isn’t going to do anything about prices. The market has changed for good. The truth is, we are in a real estate holding pattern. Until sellers and buyers adjust their mindset and pricing, I think we will remain at a standstill. [Courtesy]
By Rachael Kobin | Contributing Columnist
In my estimation, there are two rarely discussed market conditions influencing our local real estate market.
Market condition number one is a disease affecting sellers that was only recently described in the Journal of Pseudo-Medicine, it is called “overpricedtosis.” It causes sellers to significantly over price their listings based on the last three years of buyer enthusiasm to move to Florida. Alright, so the name might be made up, but the condition is real. Sellers are under the false impression that buyers are still willing to pay top dollar for everything and anything. Simply stated, list prices are too high for properties that are clearly not worth it. Most sellers do eventually lower their prices. But these price reductions are getting misinterpreted by prospective buyers and the media as evidence of a “softening market.”
An extremely inflated list price that gets reduced, is still a high list price. I think prices have crossed a threshold and these higher prices are here to stay. Due to the influx of people moving to Florida, low inventory and more specifically, the desire to live in a coastal community, prices will forever be higher than the past.
Prices are never going back down to pre-COVID levels which brings us to market condition number two: unrealistic buyer expectations. Buyers have convinced themselves that prices are going down, and who can blame them. It’s being reported daily that the real estate market is softening. But when buyers arrive here, they are disappointed by the high list prices. I get asked over and over for a two bedroom move-in ready condo with a view for between $500,000 to $700,000.
Those are the prices of yesterday and when I say yesterday, I mean pre-COVID. When I have to give the bad news, buyers react by saying, “I’m just gonna wait.” I then think to myself, “Wait for what?” Waiting isn’t going to do anything about prices. The market has changed for good. The truth is, we are in a real estate holding pattern. Until sellers and buyers adjust their mindset and pricing, we will remain at a standstill.
Our expert
Last month, I asked our readers to submit questions to Attorney Tara S. David of Estate Law of Florida, P.A., a New Pelican advertiser. She specializes in probate, wills and trusts. An overwhelming number of readers had the same question: “My dad died. Can I sell his house without any further issues?”
When a parent passes away, it often falls on the children to figure out what to do with their house. The thought of having to go through probate during this emotional time seems costly, complex and overwhelming. In response to the question above, Tara David says that the answer depends on the way the house is titled.
If the property is in his sole name, you will need probate, even with a will. If the property has you on it and is titled as joint tenants with rights of survivorship, is in a trust with you as the sole trustee and the trust allows you to do so, or is deeded as an enhanced life estate deed with you as a sole beneficiary, there are a few steps to sell but it is almost immediate and no probate will be necessary.
Like many legal matters the answer usually depends on the specific circumstance.
Next time
There have been a lot of negative headlines regarding commercial real estate recently. We keep reading about the abandonment of the traditional office space, empty storefronts and that the digital world is replacing brick and mortar. We really want to know, is commercial real estate dead?
There is no one better to pose that question to than award winning commercial broker associate John McQueston of Campbell & Rosemurgy Real Estate. With over 30 years of experience selling a multitude of property types including strip centers, mixed-use, industrial and office condominiums, John is the perfect person to talk about the trends and opportunities in our local commercial real estate market. If you have a small business, building, storefront, or are thinking about investing, don’t miss the interview in next month’s column.
We would love to hear your feedback and if you have questions for John we will answer them next time.
Rachael Kobin is the broker/owner of Beaches Residential Real Estate in Boca Raton and serves South Florida’s coastal communities, including Delray Beach, Boca Raton, Pompano Beach, and Deerfield Beach. She believes that who you hire to sell your home is important and can be reached daily. Visit her website at beachesresidentialrealestate.com or contact her at [email protected] or 954-536-1756.