Unless you’ve been visiting a distant planet for the last three months, you probably have watched homes Boca Raton, as well as in Delray Beach and Boynton Beach, as they have moved into raging seller’s market for homes.
Three months ago, it was possible to purchase a home in Boca Raton, albeit a smaller and older resale, for less than $200,000. However, according to the published statistics, home prices in the area have risen 27% over the last year, just over 2% per month.
No more homes under $200,000 in Boca
The result is that there are no more homes in Boca Raton for sale for less than $200,000. Those between $250,000 and $400,000 move out of the market within days of listing. Often, these homes in Boca sell for full price or above. And cash buyers are pushing many hopeful buyers with mortgages to the sidelines.
Two of my latest home sales illustrated this change from buyer’s to seller’s market perfectly. I listed a small, but beautifully refurbished home in West Boca Raton for $175,000 . Within 24 hours I had an offer for $10,000 over list price.
Even though the buyers knew that house would not appraise, they were willing to bring money to the table above appraisal in order to close the sale of that Boca home. Within a month, a same size, but non-redone house on the same block sold for just over $200,000.
Homes selling at full price. And rapidly.
Two days ago, I took a buyer to a home in Valencia Lakes in Boynton Beach. Asking price was $255.000. She loved the house. She had to have it.
So, although I knew it was contrary to everything she believed in, (she’s from New York and her daughter is in real estate up there) I told my customer that if she wanted the house, to immediately offer full price, not to deliberate, and not to wait a day to think about it.
Fortunately, she listened to my home buying advice. We wrote the contract on the spot for that Valencia Lakes home and delivered it within the hour.
The buyer’s husband gave her a hard time; her daughter gave her a hard time, both saying she should have her head examined for not trying to negotiate a lower price for her Boynton home.
At full price, the seller was pleased to sign the contract that same night. The following morning, I received an e-mail from the seller’s agent telling me that in case my buyers decided to drop out, she had a full price cash offer that had just come in or that home in Valencia.
Some Boca homes sell before they’re listed.
This month, I didn’t even have the chance to list my seller’s home in Boca Raton. Instead, I sold it to a young couple who had recently called. This Boca Raton home sounded like what they had in mind.
So I established a price for this home in Boca with the sellers. Then I called the buyers and told them the asking pricewas $349,000. The house appraised just above that. Since the buyers were using a mortgage, everyone was happy.
My stories are just a microcosm of what is happening to Boca home prices and Boca Raton home sales right now.
If you want to buy a home in Delray Beach, or a home in Boynton Beach, you are likely to encounter a similar full price expectation from the seller because of lack of inventory.
If you’re selling your home, you have the advantage.
And if you’re thinking about listing a home in Boca Raton, or listing a home in Delray Beach, or listing a home in Boynton Beach, you’ll find yourself in a very advantageous position.
Right now, there are too many buyers in Boca, Delray and Boynton, and not enough houses for sale in Boca, Delray, and Boynton.
If you list your home in Boca Raton or Delray Beach or Boynton Beach at a price that makes sense, you are likely to have it sold within 2 weeks or less based on the current market.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions