Some home-buyers buy on impulse. Others, analytical and hungry for information, sift through every piece of available data before making an offer. There are all kinds of buyers. No two are the same.
The Miami Herald interviewed us months ago. They also interviewed buyers we were working with. Those particular buyers caught the attention of the Miami Herald because of how they analyzed and dissected their potential home purchase.
The Restivo Team submitted nearly a dozen offers – on various properties … Offering price was based 99% on STATISTICS, FACTS AND TRENDS, RECENT RELEVANT SALES, PRICE PER SQUARE FOOT, and ACCURATE MEASUREMENTS …
Ana Maria Lima reported in her Miami Herald article on the challenges homebuyers (and home sellers) have determining value and pricing. She interviewed Ron Shuffield, Alexandra and Vicki Restivo and the Restivo’s buyers (who analyzed statistics and interesting tidbits of information so they could determine “VALUE”).
“Arriving at VALUE” can be rather tricky ground. And it’s one of the toughest questions that buyers, sellers and Realtors grapple with.
The Florida Association of Realtors calculates value based on median price, through Multiple Listing Service statistics (MLS). That can actually make for somewhat skewed results . Sales vary from one month to another (with more luxury homes selling one month … more moderately priced properties selling another month).
The Case Shiller Index is geared toward economists. Zillow is targeted toward the general public, and when information is input correctly … and properly updated… Zillow can be a valuable tool.
The correlation between available inventory and price is simple: More inventory means lower prices. The less inventory means higher prices.
Housing stats, taken out of context, can distort statistics. In my opinion, RELEVANT sales (the past 3-6 months worth) coupled with current inventory (similar and near to that of the subject property), are among the best ways to determine property value. Appraisers will look at closed sales within the past 3-6 months to determine appraised value (and sometimes appraisers will include pending sales)… Their figures are based in large part on the square footage of the subject property. “Value” definitely impacts property sales . To get a mortgage, the property must appraise at or near contract price.
The Terrills (dubbed “King of Stats” by the Restivo Team) approached the buying of real estate with surgical precision … (dissecting numbers, measuring & weighing stats )… “They are numbers people“. The Restivo’s provided relevant sales information … analyzing the market and providing a comparative market analysis. “These buyers went to great depths to gather information and analyze the market, and the comps.”
Realty Trac, Zillow, EWM.com, and the Case Shiller Index and MiamiRealEstateCafe.com were the primary resources that these buyers used. The Restivo’s website and blog MiamiRealEstateCafe.com along with EWM.com provides a number of resources for buyers trying to gauge property value.
Whenever you are looking to buy or sell property in South Florida contact the Restivo Team – 305 793-1365 or 305 632-0164.