Miami Luxury Homes - Why Don't They Sell?

Luxury homes in the hundreds, line the greater Miami Beach community, which stretches from South Beach (1st and Ocean Drive) all the way through Bal Harbour (96th through 102nd St.), and is one of the nicest areas in all of South Florida; the real estate in this area is very desirable. So why aren’t luxury homes selling? Is it the economy? It is partially the economy, but homeowners, as well as realtors, are also somewhat responsible.

Miami Beach is an area with some of the most desirable luxury homes in Florida, and although the economy is in a big mess, with so very many foreclosures, luxury homeowners have not been as hard hit as many others, whose homes are valued at far lower prices. Nevertheless, sellers continue to list their homes with realtors, at inflated prices, which they cannot possibly hope to obtain. Many realtors, in their zest to secure a listing on a luxury property, will often list at almost any price that the seller dictates.

These actions hurt everyone. Sellers truly believe that the realtor they have chosen to work with would not be willing to take on a property, which they will not be able to sell, but agents don’t want to lose the listing to other agents who will market the property at a higher price, so they take the listing. The unfortunate result is that luxury homes have flooded the Miami market place at inflated prices, and sales are few and far between.

Most people prefer fact to fiction. There are some facts that sellers of residential real estate in Miami should know. For example, according to the Southeast Florida multiple listing service, there are presently 266 residential waterfront properties listed for sale in the greater Miami Beach area. Since January 1st of this year, there have been only 6 closings of listed waterfront homes, and 9 waterfront homes are presently listed as pending sales.

Homeowners, who hope to sell their property, are going to have to come to grips with the reality of the present, something that can sometimes be very difficult to accept. They must be either willing to market their homes at prices that will bring in buyers, or they really ought to take their homes off of the market altogether. Realtors, too, have to be a lot more determined, and must educate homeowners, and make them aware of actual market value, without fear of losing their client.