Covid 19, Real Estate, and Your Plans
Don't Let Corona Virus Slow You Down
You may be surprised to learn that real estate deals are still under way, even in these unprecedented times. As a South Florida real estate broker, I've noticed a few things about the market during Covid 19, real estate is soldiering on despite initial slow downs. Here's what I've noticed:
Request for property tours, although they have been greatly reduced, are still coming in. People are interested in new rentals, and in buying during these time. When considering the specifics of Covid 19, real estate tours are continuing surprisingly well I find.
That being said, when attempting property tours, it's important to take the health of all parties into account - yourself, your clients, your tenants, etc. into account. Consider utilizing a video service to host your tours, or limiting the number of individuals in a property viewing.
Closings are happening. Transactions subject to conventional financing and cash deals are closing. Based on activity from the multiple listing service the last 4 weeks here is a snapshot of the "During Covid 19" Real Estate market in South Florida...
- Approximately 97 transactions were closed in the past 30 days for Residential Income Properties (2Plex, 3Plex & 4Plex properties). Here are some of the numbers:
- Total Sale Velocity $48,125,676
- Average Sale Price $501,309
- Average Price per Unit $200,523
- Average Price per Sq Ft $233.08
- Over 200 new properties have been brought to market within the past 30 days
Commercial Properties including apartment buildings (5+ units), retail, warehouse and office showed 61 transactions sold for the same time period.
- $73,639,263 representing 61 transactions have closed in the last 30 days.
- 594 new properties have been brought to market in the last 30 days
- $61,674,263; Representing 50 non-residential transactions
- Apartment Sales: Total Sale Velocity $17,795,000 represented 11 Apartment Buildings have sold and 36% of the sales were sold by my firm, Media Realty)
- Average Price per Unit $130,845
There's No Reason to Wait
Question: If you've been contemplating the disposition of your asset, I’d like to offer a free, no obligation service to provide you with the best information for the current "Covid 19 Real Estate Market." This service will allow you to make the most educated decision.
This info is called the "Proposal to Market". It includes a rent survey, to see if your rents are at above or below market value as well as a complete forensic breakdown of your comparable sales. The comparable sales report that I offer includes: unit breakdown, price per square foot, price per unit, capitalization rate and a gross rent multiplier.
The proposal to market is to be used as a baseline reflecting market value for your asset. I believe that from this deeply informed perspective, we can begin a conversation about how far you can push market value.