There is nothing simple in buying a home in Miami real estate. There are thousands of properties available for sale in the city. Despite the lack of newly-developed properties; homebuyers and investors are still going to sort through the selections of homes in various listings to find the best deals to dish out their money on.
If you read the news or listen to homebuyers in Miami real estate, you will see that prices of homes in Miami are quite cheap. It is now possible to get a home if you have a budget of $100,000 or get a luxurious property for half-a-million dollars. However, price is not the only detail you need to look into when buying a home in the city -- that is if you want to get the best deals in the Miami real estate market.
Timing Makes Perfect
The first thing you need to understand that prices of home in Miami real estate are still subject to change. Home values declined at steep rate when the economic crisis hit the US. Today, the prices of homes in the city are recovering from the aftershock from this economic turmoil and prices are still affordable to those who want to spend less for a quality home.
Such is the case; it would be more advantageous on your end to analyze the market if the prices of homes in Miami are to your favor. For a brief look into the current trend in the Miami real estate market, average home prices are down by 25.1% -- quite big compared to last month's figures. Previously-owned properties are now priced at an average of $150,000 -- along the line of a 2-bedroom home or a 1-bed condo in the city. There are 45,000 homes for sale in the city. Foreclosed properties are relatively higher in value compared to the listings above. There are 16,000 foreclosed and bank-owned homes, including short-sales, in Miami real estate -- prices averaged around $190,000.
Once you look at the market, we can easily determine if it is the perfect time to buy or not. The easiest way to do so is to compare it with your budget. You range should be up and down a bit the average market price. This should give you enough leverage in selections.
Smart Buy in Foreclosures
The only reason why homes for sale are priced lower than foreclosures is because there are a lot of them in the market. Standard prices of properties in the city -- those not in foreclosures but sold by their respective owners -- are somewhere around $250,000 to $350,000. If you're looking for savings then the foreclosure market in Miami real estate is the perfect choice for you.
There are 2 things you need to think about when delving into the foreclosure listing. One is to consider whether you can buy a home at a super cheap price that isn’t to your specifications, yet using the savings for home improvement. Second is to buy the perfect home that fits your preference at a slightly higher price. The former fits well with the needs of investors looking to turn the property for profit and income. Homebuyers might want to focus more on properties that caters to their wants and needs so to avoid needless improvements that takes a lot of time, money, and effort to get it done.
William W. Teho, Jr.
Miami Real Estate