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Monday, August 21, 2017

Buying Your Florida Home: Supply and Demand Are Key.

Buying and selling a house is about one thing - expectations.  Buyers have expectations.  Sellers have expectations.

The Brevard County, Florida (Melbourne) is a seller's market in 2017.  Simply put that means there are more buyers than sellers which usually means sellers are not giving away much.   Think of it this way... You, like thousands of others, want to go to Disney World.  So you make the effort to go to Orlando and then ask them to let you have a 20% discount off the listed price.

While the demand for Disney is greater than any single house the point is the same...where the buyers are not scarce the discount will likely be!

Therefore, buyers need to consider their motivation, budget and time line before making an offer to purchase.  Of course this is done with counsel from the buyer's real estate agent.

Without getting into the specifics of the offer and discussion which will be covered by the buyer's agent, let me toss out a couple of considerations.

First, what the property appraiser web site says was the "assessed" value three or four years ago has no bearing on their offer price.  The real estate market is cyclical.  If a property has been around for more than five or ten years it has likely sold more than once.   Furthermore, what any other valuation web site (like Zillow) says the "value" is should not be a basis for an offer price.

I have on occasion had to remind sellers that the buyer does not care what they paid for their property or the dollar cost of maintenance or updates.  Similarly, a seller does not care what a buyer wants to pay.   Location, seller goals and competition determine price. 

I recently had a prospective buyer say that a particular list price was high.  Their next sentence said something about how there are never homes on the market in this subdivision.  Somehow they were missing a key point - supply and demand are key whether buying Super Bowl tickets or a house!

The first paragraph above sums it up nicely.  It is all about expectations.  

Here are a few posts that may be helpful to anyone considering a Florida home purchase as well as selling a Florida home.
If you expect to sell your Melbourne, Florida home in the near future I want to help you! 

If you are looking to buy a home in Melbourne, Florida, I want to help you.  I have been working with buyers and sellers for fifteen years.  Please give me a call (or text) at 321-693-3850 or send me an email.

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