The Blind Spots I See Most Home Buyers Have

After forty years of sitting in the passenger seat with buyers, these are the blind spots I see most, and what I say about each one.

The fixer-upper math that used to work

Buying a fixer-upper, even less than ten years ago, was not difficult. Buying a fixer-upper today is difficult, and I’m speaking for Florida and South Florida, because of getting a contractor and getting things done. What used to take, say, for a kitchen, tops maybe eight weeks, ten weeks, twelve weeks? Double that. Double any time that it used to take. Double or triple.

So as a buyer, know that. If you go into some place that is a good price, and of course it’s reflected in the price because it needs work, make sure you take all of that into consideration with your funds, with your budget. Get prices. Before you sign on the dotted line, I would bring in a general contractor and say, what is this going to cost? Because buyers are already buying high. They’re paying high interest rates, plus your taxes. And then you’re going to be paying triple what you thought you were going to pay to fix it up.

You need to be more educated as a buyer. And if you’re going and paying top dollar for something totally done, what you see is what you’re going to get.

First-time buyers: the list and the price don’t match

If you’ve got a young couple coming in, first-time buyers, of course they’re excited. And they have a list of all the things they want. And they have a price that really is not realistic. So I think their blind spot is that you have to be realistic. If you have $500,000, let’s say, and you want this, this, this, you want everything? It’s not going to happen. That’s the blind spot. You’re not going to get everything you want. You can, if you’re more realistic with the price.

With the young couple, with their first property, they’re going to have to put their big boy pants and big girl pants on and realize you’re not going to get everything you want for that price. And today, that’s even worse. Right now in Miami, a three-bedroom, two-bath that you don’t have to do any work to, and I’m not talking about the beach, is going to be in the sevens or eights. Way west. Everglades. With the alligators.

I’m only half joking. The point is that a turnkey three-two in Miami-Dade, off the beach, has climbed into territory that would have bought you a waterfront place not that long ago, and first-time buyers who price their list against the Miami they remember from five years ago are going to be disappointed by every listing I send. Price the list against today, and suddenly there are homes to look at.

Older buyers: falling in love with the stairs

For older people, the blind spot is that they fall in love with a property that’s two stories, or three stories, because if you buy a townhouse, it could be three stories. They want to see it. I want to see this, because it looks so great. Now, if it has an elevator, great. But a lot of them don’t have elevators, and you can’t always put in an elevator, because you need some significant space to do that.

If they fall in love with a two-story and say they’re 60, 65, and they just had a knee surgery, whatever, you’ve got to let them know: you know what, you might have an issue here with the steps. So maybe we need to start looking at something else. And you get that out to them when you first meet them, or after the first showing, because you don’t want to be wasting your time, or their time, by showing places that they should not be buying and are not going to buy.

If that’s you, I’ll say it gently and early, and then we’ll go find the one-story, or the building with the elevator, that you’ll still love in ten years.

Educated buyers who still negotiate like it’s 2010

It’s a much more educated buyer now. Because of Zillow and everything else, and the news, the nonstop news, they can get everything online. They’re more interested in neighborhood schools, and that’s all right there, a whole list of grade-A schools. Even the buyers from New York who bought properties online without seeing them during COVID were very familiar with what they were buying. Miami Beach is a very easy city to become familiar with quickly.

But the educated buyer is still at times not realistic about the price, and negotiating is much different now. In the old days, you could start with $200,000 less than asking price. It’s not going to happen anymore, unless the price is totally ridiculous and the comps come in ridiculous. Your negotiation is not going to be as effective as it used to be. Knowing the neighborhood cold is wonderful. Knowing what a home in it actually sells for this month is the part that saves you from writing offers that get ignored.

Visiting Miami Beach is not living in Miami Beach

Most people have been to Miami Beach and experienced Miami Beach. It’s one thing to come visit. It’s another thing to live here. Property taxes are a bit higher, the millage rate is a little higher. It’s a flood zone, and you have to realize that, you know, you’re carrying flood insurance, especially if you’ve got a place within a certain distance of the water.

And people ask me, how do you raise kids on the beach? It’s like you do everywhere else. There are normal schools here, there are great schools on the beach. I don’t think it’s a hard sell by any means. But budget for the taxes and the insurance before you fall in love, not after, because those two lines are what turn a comfortable monthly payment into a tight one down here.

What I want you to remember

Be realistic about the price. Bring a contractor before you sign, not after. Think about the stairs in ten years, not just today. Negotiate from this month’s comps, not from memory. And budget for what living here costs, not what visiting here costs. Do those five things and you’ve closed most of the blind spots I’ve watched buyers drive through for four decades.

Thinking about buying in South Florida? Work with Diane, and bring the list. We’ll make it realistic together.