It is generally the first question I receive either from a buyer or seller when initiating a dialogue about a real estate purchase, or sale. Talk about a loaded question. For sellers, of course, that question really means, how much can you sell my home for and how fast? For a buyer, the underlying question translates to, is it a good time to buy? From a seller’s perspective, we can explore market tendencies to best understand their position in today’s market, and of course, provide our insight and guidance as to how to best position themselves. At the high end of the luxury real estate market, there is no question that current market conditions favor a buyer, as increased supply continues to outweigh demand. So....how as a seller can I place my property at the front of the market to ensure the best possible price in the lowest possible time frame. While there are a number of things that a seller can do including ensuring a properly staged home, eliminating clutter, polishing the first impression a buyer will see, there is without a doubt one deciding factor in today’s market that will likely determine the outcome: price. Like any other product for sale like cars, gold or technology, real estate is worth what the market is willing to pay.
So our advice to sellers is always to avoid coming to the table with a preconceived price expectation and to allow our team of expert agents and brokers provide the proper market insight and education to give you the best chance to sell. When we represent sellers, it is our mutual goal to sell the property at the highest price that the market will bear. However, it is also our job to educate the seller to ensure that the property is not taken to the market at an unreasonable price, wherein the likely outcome is a long shelf life, with a very low likelihood of selling, and a higher likelihood of doubling or tripling the time on market, to end up at, or perhaps below the original recommended price. We respect the position of any seller who is not in agreement with our price recommendation, but our next recommendation would then be to not bring the property to market and await other market conditions. In any time in the marketplace, a property owner can be either a seller, or an owner. They are two very different things, both respectable, but they are not one and the same. So, to our sellers, lets discuss what we believe your property is worth, and together we can decide if this is the best time for you to sell.
Buyers, certainly it is a good time in the luxury real estate market to buy. There is a lopsided supply vs demand factor right now which places buyers in a favorable position at the negotiation table. We are seeing adverse conditions, however, in the purchase of lots in premiere gated communities with prices at an all time high, as well as on the low end of things in new, loft condos in mixed use developments. No question that the market boasts the best opportunities right now for a luxury home at the high end of the market, where sellers are listening to offers. We have found that most of our buyers have been able to achieve much higher value purchasing a home from a current seller, as opposed to buying a lot and building, as while the home values are down, the lots in the same communities are not seeing comparable reductions in pricing. One of the current trends dominating the market is a move from single family homes into vertical living as many empty nesters are moving from large estates and look for a more turn key, lock and leave solution. There are a number of options in the market, and again, as with the above commentary, we are finding buyers having much more success (financially speaking) purchasing as a second tier buyer, as opposed to purchasing direct from developer with new product. Certainly not a critique on new developments, as admittdely they tend to offer more diverse amenities, unique settings, and of course, new construction, but they also are transmitting today’s land + construction + profits, versus a resale, whose seller is more willing to accept current market conditions.
So while there is no magic formula for buying and selling real estate, one thing is certain; seeking the guidance of a qualified real estate professional is the best way for both buyer and seller to enjoy a seamless and successful transaction.