Maya Thomas LLC, Broker
Maya Thomas LLC, Broker
Sellstate Island Properties
Cell: 305-522-1398

How to sell your home in any city in the U. S. and Buy in Key West FL

Are you sitting in a city in the United States and dreaming of moving to Key West?  Do you need to sell a home before you can buy a home in Key West?  I'm going to share with you the magic secret of getting your home sold and buying a home in Key West.  Know that your home in the city where you live, will sell and you'll find the perfect home in Key West.  It can be disheartening to wait for a buyer.  Know that it will work out.
 
 
Your real estate broker can give you an estimated number of months, or years, you'll be on the market (if you're priced at 'market rate') by looking at the total number of similar homes in your area that have sold and the total number of homes in your neighborhood that are currently on the market.  You can look at 1 year of sales, 6 months of sales and 3 months of sales to see if the market is stable (equal number of sellers and equal number of buyers) or if the market is changing in any way (more sellers than buyers or more buyers than sellers).  If there are more sellers than buyers prices typically go down and if you sit on the market you'll get less money 3 years from today than you'll get today if you're priced at 'market rate.'  If there are more buyers than sellers then prices typically go up and you'll get more money if you sit on the market for 3 years because eventually the market will catch up to the purchase price that you want.
 
 
The National Association of Realtors says that 6 months of 'home inventory' is a stable market.  For example, if annually, 6 homes come on the market and 6 homes sell the market is stable.
 
 
A "seller's market" is when there is less than 6 months of home inventory.  Prices will go up.  For example, if annually, 5 homes come on the market and 6 homes, historically, have sold you can determine that prices will go up.
 
 
A "buyer's market" is when there is more than 6.5 to 7 months of home inventory.  Prices will go down.  For example, if annually, 6 homes sell and 9 homes are coming on the market, according to the trend in your market you're in a buyer's market.  Prices will go down because there are more sellers competing for fewer buyers.  There will be sellers who will take a little less money to make the sale happen if there is a "must" reason for them to sell:  divorce, marriage, new baby, kids moving away for college, a new job offer in a different city.  Those sales set the comparable sales for the area that an appraiser will use to value a home for a buyer who is getting a home mortgage.  
 
 
If you're lucky and are able to be matched with an uniformed buyer and an uninformed buyer's agent who falls in love with your home and they pay more than 'market rate' your sale could fall through if the buyer is getting a mortgage.  The reason it could fall through could be the appraisal.  If the appraisal comes in lower than the purchase price on a contract a buyer may back out or a loan may be denied by a bank.  
 
 
If you get a cash buyer who is an uninformed buyer and who has an uninformed buyer's agent you won't have this concern, but that is unlikely because people who have cash are typically careful with their money and think carefully about how they spend it.  That's how most cash buyers saved up all of that cash to buy a home.  Of course, there are the wild cards:  a person could have inherited money or won the lottery, but that is a smaller percentage of the buyers in the market at any given moment and will that buyer be a match for your home?
 
 
Your real estate broker can tell you if your real estate market is going up or if your market is going down.  For example, your market may be stable with no appreciation, declining at, for example, .025% per month or increasing, for example, at .05% per month.  If your market is appreciating and your real estate broker told you that you can sell in 30 days at $300,000 but you want $350,000, and your market is appreciating at .05% per month, it will take you almost 3 years for the market to catch up to your target purchase price.
 
 
If you want to buy an $850,000 home in Key West, and prices in Key West are appreciating at the same rate as homes in your area, then you'll pay approximately $1 million, for the same home $850,000 home today, 3 years from now.  Or, you'll buy a smaller home, a less appealing home, or buy a home in a less desirable location that is $850,000, or you'll choose to buy a home in a different city where you can get an $850,000 home that meets your criteria.
 
 
The net cost to wait 3 years could be, for example, $100,000.  Here is the reasoning:  
 
 
If you wait 3 years to get an additional $50,000 in your city you'll pay $150,000 more in Key West, if both markets are appreciating at the exact same rate - which is unlikely.  This is why it's important to know what your market is doing in your city so that you can compare your market with Key West.  It will help you make a decision about what's best for you and your loved ones.  
 
 
If the market is stable in your neighborhood, your real estate broker can tell you what do do and how to price your home to be the next sale.  You won't get any more or any less money if you wait 30 days or 3 years to sell - you'll get the same amount if the market is stable.  Some sellers want to get somewhere and price to sell in 30 days.  Some sellers in a stable market wait 3 years before they will price their home at a price that will bring an offer.
 
 
If the market has no, or very few, buyers reducing the price won't help you sell faster.  You'll just end up selling for less money.  For example, there are neighborhoods outside of Key West where it typically takes a 11 to 12 months to get a buyer.  Your real estate broker can give you this information.
 
 
These are variables that can be determined uniformly across all of the real estate markets in the United States.  This is how the National Association of Realtors and Case-Shiller Index can determine what is happening in the real estate market across the country and what's going to happen across the United States in every city.

 

 

 

 

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