When you go into any large purchase, you want to be as informed as possible, and real estate is no different. As more people look into investing in retirement or vacation homes in Miami’s Bay Harbor, they make quite a few easy assumptions and mistakes. So, looking at 2022 houses for sale in Miami Beach, here are six debunked misconceptions about the Bay Harbor real estate market you should know.
All taxes are created equally
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If you’ve owned a home before, it can be easy to assume that real estate taxes are the same everywhere. However, this simply isn’t true. When it comes to hot markets like Miami, particularly beachside properties, the tax system is going to look a little different.
For example, Miami has a current system in place to lessen the taxes of long-time buyers and residents. An owner who lived in a Sunny Isles beach home for a few decades will have taxes based on what they bought it for. This calculation often translates into only a few thousand bucks in property taxes. However, when a home sells, the property taxes are reassessed within a year for the modern market. So, just because the seller had really nice tax rates doesn’t mean you will. You’ll have to factor this into your budget before searching for houses for sale in Miami Beach.
Negotiating like a car salesman
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In past years, the way people negotiated home prices was very different. It was more like flea market haggling, where you and the seller go back and forth on prices until you come to a compromise that satisfies both of you. The negotiating situation isn’t like this for many 2022 Sunny Isles beach homes.
While the market has slowed down from its 2020/2021 heights, homes are still too in-demand—after all, it’s still a seller's market. So, if you go into every exchange trying to lowball the seller, they’ll reject your offer. Most won't bother with a counteroffer or even respond to your submission at all.
On average, current sellers get a decent amount of offers, many of which are at or above the asking price. So, you may shoot yourself in the foot if you try to play the negotiating game like a hardened car salesman. Weigh what you’re willing to pay, how much you’d happily overpay for the right home, and then put in a competitive offer instead. In 2022, this is how you negotiate for houses for sale in Miami Beach. You can possibly negotiate move-in wiggle room and incentives in your official contract. But that initial offer? It needs to be competitive or it won't even get a second glance.
Act on emotions
Given the current seller’s market situation, it’s easy for prospective buyers to get frustrated and desperate. Any possible negotiations turn into extreme overpaying since people think it’s the only way to get the home they want.
Now, while you’ll likely pay at-price or over for any Sunny Isles beach home, that doesn’t mean you should start panicking and throw all your money at a house. If you have the time to be more patient with the market, work hard on managing your homebuyer’s anxiety and keep all of your offers reasonable and manageable. The easiest way to do this is by leaning on your realtor’s advice and focusing on your end goal, not panicking about where you are in house limbo.
Don’t go hundreds of thousands of dollars over the asking price just to find the luxury home of your dreams. Instead, make sure your purchase makes sense for you. Just because you can overspend doesn’t mean you should overdo it.
The bigger the better
In a beautiful spot like Bay Harbor, you want the best luxury home possible. Sometimes, this turns into hunting for the biggest lot, but that’s not always your best choice. After all, this is a beautiful, metro-style city on the seaside. Some gorgeous Sunny Isles beach homes simply won’t be very large, but they’ll still be beautiful and well-equipped.
So, before you go size-hunting, think about your lifestyle first. Other factors like location, amenities, or maintenance may be more important than having the grandest home. Ask questions like:
- How many beds do you need? How many bathrooms?
- What area of the home will you spend the most time in?
- Do you need a space for guests?
- Will you need a home office?
- Do you need space for kids?
- Will you be going out and leaving your house a lot?
For example, a very social couple with adult children may get dazzled by a gorgeous 3,000-square-foot home on the beach. But for their busy lives and household size, a downtown condo of less than 1,500 square feet may make a lot more sense to them. They have access to hundreds of activities and less space to clean, while still having a stunning luxury home. Meanwhile, a family who plans on taking big, family vacations down on Miami Beach will prefer a large, 5,000-square-foot or more home to fit the entire extended family.
Keep in mind your goals for this home so you can better find the best houses for sale in Miami Beach for you.
You shouldn’t use a realtor
DIY is hotter than ever, and with the help of the Internet, people are becoming very self-sufficient in doing their own decor, tax decisions, and more. Because of this, it can be tempting to try to DIY your own real estate experience while looking for Sunny Isles beach homes. However, finding the property of your dreams can be a lot harder without a professional’s help.
For example, when it comes to houses for sale in Miami Beach, there are over a thousand options around town. Without the help of a realtor, you can get lost in all these listings. The benefits of a realtor (local knowledge, advice, negotiating skills, etc.) are far more worthwhile than not getting their help. After all, it’d be a shame to spend a large chunk of cash on a gorgeous luxury beach home only to find out there’s a new flooding risk that may mean your home is underwater in a handful of years. That’s the kind of thing a local, well-informed realtor can help you avoid.
Are you ready to take the next step and look for homes in Bay Harbor? Reach out to trusted local agents Ivan Ramirez and Monica Sarmiento for guidance.
*Header photo courtesy of Shutterstock
