Three Factors That Completely Alter Real Estate Pricing

 

People looking to buy a home or investment property in Florida are often left frustrated by constantly shifting prices. The market has been hot in the Sunshine State for several years now, so the price just to get in anywhere in our state is one of the biggest challenges of any real estate market in the country.

We hear from clients frequently who are left dumbfounded when a 1,500 square foot three-bedroom, two-bath home is astronomically more expensive in one neighborhood than a 2,000 square foot four-bedroom, three-and-a-half bath home in another neighborhood nearby. Buyers shrug their shoulders, left to wonder what in the world dictates the way real estate on the market is priced.

The reality is there are legitimately hundreds of factors at play, but these three factors below, in particular, play a huge role in the market. We aren’t talking about the final price – just the listing price. Government policy and interest rates are major factors in the final price you pay, but we want to focus on what you see on listings in the Fort Lauderdale area.

Location, Location, Location

You’ve heard it before. The biggest factor in real estate will almost always be location. This covers a number of different factors because location directly connects to schools, amenities, safety, highway access, and numerous other community benefits.

It’s important to understand the neighborhoods you’re looking at before jumping into the real estate market. If you’re looking in the Fort Lauderdale area, you should expect to pay well over $1 million for homes in Seven Isles and Harbor Beach but will find more affordable options in Croissant Park and Durrs.

Ultimately, the value you put into raising a family, sending your kids to a certain school district, and what community amenities you want must be taken into consideration. Are you willing to pay several hundred thousand dollars extra to get into a certain area?

Supply and Demand

How many sellers are there? How many buyers? Homeowners aren’t going to sell themselves short if they know the options in their market and neighborhood are limited. This is why picking the right time to buy is important.

The summer months are when the market is the hottest – families are looking to move school districts and people are more likely to move to a completely new region when their kids are not currently in school. On the flip side, the later fall and early winter months are generally when the market is coldest. Families have already settled into their new neighborhoods and school districts.

Because of this, supply is often higher in the summer months but demand is through the roof. You might not have the same selection in the fall or winter, but you won’t face as much competition either.

Lies and Misdirection

Lastly, we want to be honest. Some home prices are simply unreasonable for the property being listed. Investors have a right to make money, but you will see a number of “flipped” homes on the market that were “updated” with a facelift that doesn’t actually increase the quality of the home.

Some new cabinets and cheap flooring updates turn an old home into a “modern” one but some renovations aren’t built to last. It’s important to work with experienced professionals who will help you spot a good investment vs. one that’s simply putting lipstick on a pig, as the saying goes.

At Schlegel Livingston, we consult with our clients to ensure they are equipped to make sound decisions on the Florida real estate market. Your attorney should be experienced enough to know the market and give you advice on the true value of your future home. Contact our team for help navigating and finding success in a challenging market.

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Schlegel Livingston LLC

Schlegel Livingston, LLC is an established real estate and probate/estate planning law firm in Fort Lauderdale, Florida. We pride ourselves on being a very hands-on law office who will help our clients by any means necessary.

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