|
Getting your Trinity Audio player ready...
|
Selling a property in Florida can be an exciting task, but also challenging. With the real estate market constantly moving in Miami, Orlando and other important centers in Florida, it is essential to adopt effective strategies to ensure that your property stands out from the competition. In this article, we will cover some important tips and common mistakes that should be avoided in the process of selling a property in Florida.
1. Not taking advantage of “1031 Exchange”
When selling a property in the United States with capital gain, the seller must usually pay tax on the gain.
Section 1031 of the U.S. Internal Revenue Code (IRC) offers an exception and allows the investor to defer tax payment if the proceeds from the sale are reinvested in another similar property.
Your property in the US may fit into the 1031 Exchange and you wouldn’t need to pay this capital gains tax now. Understand everything about 1031 Exchange in this article
2. Not transferring ownership to a company
In the vast majority of times, selling the property in your individual name will bring several tax disadvantages. One of them is the FIRPTA charge, a fee that is charged at the source, at the time of sale.
Putting the property in Florida under a legal structure brings several benefits. Understand in this article.
3. Not having professional photos of the property
Did you know that more than 90% of people looking for a property do the research first on the internet and then visit in person?
This means that if you don’t have impeccable photos in your ad, the chances of selling your property well drop considerably!
The first impression is crucial when listing a property. Investing in a professional photographer who knows how to capture the best angles and light is essential for a successful sale.
The order of the photos in the ad is also very important. The main facade of the house should not always be the first photo. In fact, a study conducted by the HomeJab consultancy in 2022, which analyzed more than 600 property ads, identified that most brokers put the facade photos last. The preferred order was:
- 1 – Rooms
- 2 – Kitchen
- 3 – Living Room
- 4 – Bathrooms
- 5 – Facade
Of course, we should not take this order as a rule when advertising to sell. Each property is unique and brings different characteristics and appeals.
In our real estate we always work with professional photographers for the listings we advertise and carefully choose the order of the photos, performing tests and analyzing metrics, to understand which is the most efficient strategy.
The power of the first 3 photos in the sale of the property…
Another valuable tip is the selection of the first three photos!
The first three photos of the ad are the most important. A potential buyer will hardly remain in the ad after browsing the first photos and not being impacted by any of them.
A professional photographer is not enough, you need to prepare the environment to sell..
But a professional photographer is not enough! The environments of the property need to be prepared for the photos. It is the so-called “Home Staging”, which we will detail in the next topic.
4. Avoiding “Home Staging”
The concept of “Home Staging”, is already well consolidated in the American real estate sector and makes a lot of difference when it comes to selling.
Home Staging or simply “Staging” is the technique of preparing the property for sale, with efficient decoration and, eventually, small repairs or renovations.
The idea is not to invest a lot, but to make the property more attractive in the eyes of the buyer, within proven strategies of result.
In research conducted by the RESA (Real Estate Staging Association), the results showed that properties that went through the Stating process sold, on average, 73% faster. The same study also revealed that most respondents were likely to pay more for these properties.
The idea is not to invest a lot to do the Staging. Do you want to know more about Home Staging? Access: Home Staging: Sell your property faster and for a better price
In many cases there is no need to invest or hire a Home Staging company. The guidance of an experienced broker would be enough just by repositioning the furniture and eliminating excesses. Our experience shows that the following actions should be taken:
- “Deccluter” – Removing unnecessary or disorganized items from a space to make it more pleasant in the eyes of the potential buyer. Remove personal objects, toys, traces, or objects that identify pets or any other item unnecessary to the correct “understanding” of the environment by the buyer. The less polluted the environment, the more it will be free so that the potential buyer can imagine himself living in it;
- Clean the house – Leave the house to receive your buyers;
- Check the lighting – Make sure the lighting is adequate and change burnt-out lamps;
- Unobstructed passages – Removing bicycles and even cars from the garage (in the case of houses).
A Home Staging professional obviously goes far beyond the actions listed above. Most of the time it adds elements to the environments within an efficient strategy that values the spaces. We do not recommend, however, doing this without the guidance of a Staging professional. Most of the time the owner tries to do the Staging without professional guidance they let themselves be carried away by the personal side and by his own impressions and emotions by adding objects that can devalue the spaces.
In our real estate we work with Home Staging partner companies to recommend to our customers, when necessary.
5. Price wrong and not considering the “Price Bands”
It is natural that the owner wants to price the property with the highest possible price, but this can bring bad consequences to the sales strategy such as, for example, taking time to sell.
A property that has been on the market for a long time begins to arouse a certain distrust. “Why hasn’t he sold it yet?”, “There must be something wrong with this property”, “It’s been on the market for a long time! Let’s make a low offer.”
Always consult an experienced broker who has tools and experience in that specific region of the property to identify the ideal selling price.
In addition, it is also important to consider the so-called “Price Bands”. They are price bands that define searches on real estate portals. In most portals the search boxes are filled with round numbers such as, for example, “US$ 500,000 – US$ 700,000”. In this example, pricing at $499,000 or $71,000 will put your property out of the search with higher volume and your property will not be exposed to the largest number of potential buyers.
6. Selling directly without the help of a broker
Many owners try to sell the property directly, that is, without the help of a broker. This practice, known as FSBO (For Sale By Owner), is tempting, since these owners believe they will save the commission charged by the broker.
However, studies reveal that the practice does not bring any savings. There are even considerable risks of losing money in the transaction.
Most people who adopt this practice do not realize that the buyer already knows that there is no sales broker. Be sure that the buyer will use this argument to negotiate a discount. Also consider that the buyer will probably be advised by an experienced broker who will certainly know how to use this information in favor of his client.
But perhaps the biggest mistake in selling directly is not having the property listed in the MLS (Multiple Listing Service) system. It is a unique system accessed only by licensed brokers in Florida where all properties for sale are listed, giving access to all brokers. There are more than 215,000 brokers in Florida.
Each of these brokers may have tens, hundreds or thousands of potential customers interested in your property.
In a quick account, your property will no longer reach millions of potential buyers.
Being exposed to a greater number of potential buyers increases the chances of selling the property for a better price.
Let’s consider the example of our real estate agency, AMG International Realty. When we receive a listing to work on the sale, we insert the property in a strategic sales plan. We have a loyal customer base with tens of thousands of global contacts, who will soon be aware of our “newest listing”, as soon as we disclose it.
In addition to the customer base, we have our profiles on social networks where we also work on disclosure. On our Instagram alone there are almost 60,000 followers. Access @imoveisemmiami_florida
Our site is also the best ranked in Google, in SEO (Search Engine Optimization) for Miami and Orlando. It is worth noting that we not only have this main site, but also others strategically built for specific words and key terms. Digital marketing is our strong point and we have been awarded several times for our online work. Of course, we also have a solid offline presence.
Therefore, not working with an experienced broker in Florida would be a big mistake, considering only the “exposure” factor.
In addition, the experienced broker can better negotiate the sale, has time to receive potential buyers and show the property efficiently and will be free of emotional decisions, which usually affect the sale process when done directly by the owner.
Also consider that one of the biggest risks of selling directly is not having the experience or expertise to navigate all the legal and regulatory requirements that involve the sale of a property.
7. Not being aware of the costs of sale / deed
When setting the sale price, do not forget to take into account sales costs, such as brokerage commissions, legal fees and closing costs. It is essential to ensure that you are financially prepared for all these expenses, so that there are no unpleasant surprises at the end of the process.
Do you want to sell your property in Florida?
AMG International Realty is a global real estate company specialized in Florida and aimed at the foreign public. If you have a property in Florida and are considering selling it, contact us and learn about our personalized sales plan. Talk to me now : +1 305 318 6968 (Heloisa Arazi).
