Whether you are coming down from Long Island or Fort Lauderdale, buying a home for sale in Miami can be a marvelous personal investment for any man, woman, or couple. You just have to take your time and make a wise decision, rather being rushed into anything that your heart is not behind.
The “fear of loss” factor is used very effectively by many real estate professionals and is a popular ploy in the South Florida market. The first thing you need to do is to understand that the market is cyclical. That is, it won’t keep going in any one direction permanently. One day it may be up, and then suddenly drop the next.
This fact may free you from another popular real estate agent strategy… the “buy now because the price is going up” plan. Honest agents will show you market profiles that justify the asking price of any property. These profiles should include not only the asking price but the selling price as well. There are agents that make a statement like; “The market will go up 10% this year,” or “that you will make your investment up in 2 to 3 years.” Now unless they have a crystal ball or can see into the future, these are fluff statements that should raise a red flag in your mind.
Never buy real estate and base the purchase on something happening in the future. If it’s a “good deal” it’s a good deal now, not in 10 years. A lot can happen during this waiting period.
This doesn’t mean that the market doesn’t get red hot or that if you don’t jump onto something immediately, it ends up sold. These things do happen. But it’s important to remember that there are other factors at work in any real estate market, but especially evident in a robust or seller market.
These include the Greed Factor. People look back several years and then use that information to decide that the market will continue to go up in the future. “Previous returns are not indicative of future results” is a popular statement on many investments, but some people don’t seem to believe it when it comes to real estate.
Next up is the “Greater Fool Theory.” The idea is that the owner of a Miami luxury home can sell it for more money to the next person willing to pay to get into the market.
People seem to forget that it wasn’t that many years ago that property in much of Florida was sold off very inexpensively. There was little to no appreciation in many real estate markets throughout the country for years. A normal market will return sooner or later.
By buying into the hurry up and purchase strategy, you run the risk of buying at the top of any real estate market. This is especially true however when talking about a hot market like Miami real estate. Purchase wisely, as a good investment continues to be a good investment no matter which way the market decides to turn.
About Berkshire Hathaway HomeServices Florida Realty:
Berkshire Hathaway HomeServices Florida Realty serves 19 counties throughout Florida with over 40 locations and approximately 1,800 Sales Professionals. The full-service brokerage company, founded in 1999, is a subsidiary of Lennar Corporation, a Fortune 500 company and is a franchise member of the Berkshire Hathaway HomeServices’ network, one of the few organizations entrusted to use the world-renowned Berkshire Hathaway name. The company offers residential and commercial services as well as seasonal rentals, property management, REO & Foreclosures, corporate relocations, referral services, title, home service plans, and personal concierge services. Berkshire Hathaway HomeServices Florida Realty ranks in the Top 10 in the network among 42,000 Sales Professionals, 1,200 offices throughout 47 states. The company is the overall No. 1 fundraiser for The Sunshine Kids Foundation, having generated more than $3.37 million since 2001. Visit www.BHHSFloridaRealty.com.