Not All Miami Real Estate Reports are equally informative
Miami Real Estate Analyses: To Know the Good from the Bad
Many buyers and home owners will be searching online for Miami real estate reports, in order to get the best possible insights into the market. Unfortunately, not all of these reports are of the same quality. We are showing you some characteristics of Miami real estate reports that you need to be cautious with.
Which Miami Real Estate Reports to Avoid?
Miami real estate reports often lacking depth, narrative or do not distinguish between different sub-markets which leads to misleading data. Please ignore Miami real estate analysis with the below characteristics:
Reports that generalize the entire Miami real estate market
- The Miami market went up by 5% or down by 3%. This tells you nothing. The Brickell market performed completely different than the Coconut Grove market and the Coral Gables market performs different than the Miami Beach market. Read a Miami real estate guide that looks at the different neighborhoods separately.
Reports that do not distinguish between price ranges
- Most real estate reports fail to look into different price ranges, while many look at the general market vs the luxury market mostly set at the $1M price point. These reports are not showing you the right data, because a house of $300K is seeing completely different market conditions than a house of $1M or a house of $1,5M. For example in Coconut Grove, a good quality home between $1M and $1,5M is hard to find while the demand is high. In the same market, homes with a $2M price tag are seeing much more competition and less buyers, resulting is more stagnated prices and less sales. Depending on your price range, we see different months of inventory, buyer profiles, economic impact and other factors that can change the entire supply and demand curve.
Reports that only provide you with Dry Data
- Numbers don’t lie, but their interpretation can make all the difference. If you see a sudden price increase, but you fail to explain why prices increased there will be no added value. Some areas see a price decrease because one single property is skewing all the data. A good report will look at the underlying reasons and is able to recognize a real trend. Are properties really staying longer on the market or are the data skewed because some properties were overpriced for a long period of time?
Avoid Miami Real Estate Reports with Generalized statements or nonsensical language
- Avoid those reports that do not tell you about what you can expect from a market. Everyone can reproduce data, it takes a real experienced agent and real estate adviser to provide you with in-depth knowledge on where the market is now, what the trends are and what can be foreseen in the near future.
- Language like: “Condo price trend indicators were mixed as sales declined”. What does this even mean and how were trend indicators mixed? A good report will explain what kind of trends might occur and provide you with a better narrative.
Avoid Reports written by Consultancies
- Sure, consultants are known for their great analytical skills, but do they know the Miami real estate market? No doubt they can gather data, analyze them and provide us with an outcome, but how is their experience with the Miami real estate market and do they even live in Miami? These consultants engage with this market for 1 or 2 months or whatever time it takes to create the report. They don’t know this market like an experienced agent does, who talks to other agents, buyers and sellers on a daily basis. A consultancy will say “Condo price trend indicators were mixed” without having the ability to explain why.
Websites like Zillow and Trulia with “Estimates”
- Websites like Zillow or Trulia are looking at Dry data. There is no expert behind their estimates and they purely look at closed sales in the area. They dont take any other data into account, they do not know the finishes of a home and they do not know about the latest trends. These estimates are not 100% off all the time, but 5% or 10% on a $1M property can make a lot of difference.
Reports that show you the Miami real estate market in rose-colored glasses
- The Miami real estate market goes through economic cycles and the market is not always favorable for sellers or buyers. Some reports are afraid to tell you the truth as they might loose clients by doing so. A good realtor knows that despite the market conditions there are always good deals to be made as long as you pay the right price.