Top Mistakes Buyers Make in Miami’s Luxury Market

Buying a home is a complex process, so it’s easy to make mistakes if you’re not prepared. Hasty decisions and miscalculations are too common in Miami’s luxury market, which often requires buyers to act quickly on exciting prospects. 

With this in mind, here are some of the most common home buying mistakes we see in Miami-Dade County:

Overbidding and Planning to Negotiate Once Under Contract

While this rarely occurs when working with experienced realtors, it is something worth being aware of when looking at offers to your home. 

The idea is to come in a little high on the offer, then asking for discounts once under contract. It’s a frustrating strategy for a seller as they miss out on opportunities when they accept that offer – and those other offers might not come back. 

When you’re looking to buy and there are multiple people interested in the home, you want to lead with a strong bid of course – but not a false one. 

This is one of the most powerful aspects working with an experienced realtor – we know most other realtors in the market, have done deals in the past with them, and they are more inclined to take an offer from our client because they know the deal will go through. 

Emptying Your Savings for the Down Payment

Miami is a competitive market, so people tend to be very aggressive with down payments. They also don’t want to pay for private mortgage insurance. However, no home is worth draining your savings. It’s just too risky. 

In addition to the down payment, you have to budget for closing costs, moving expenses, and the inevitable repair in the near future. Other significant expenses to budget for include: 

• Homeowners Insurance
• Property Taxes
• Utility Bills
• Homeowners Association Fees

The point is, make sure your budget accounts for all of these expenses, not just the down payment. In a perfect world, you still have 3-6 months of mortgage and property insurance payments tucked away after you move in. 

Focusing on the Home’s Appearance – Not the Big Ticket Items

A home’s appearance can cloud your judgement. It’s easy to be wowed by a great kitchen and stunning yard (and quickly envisioning your family in the home), but it’s important to look at the expensive repairs like the roof, the plumbing, and the septic tank. 

We often tell sellers that a new roof is going to help the sale price more than a new kitchen – while it won’t wow buyers, it will help close the deal once you are under contract. Similarly, we always want our clients to look at those potential costs looming after closing and make sure they are prepared for it. 

Of course, the math changes completely when you are looking at the land and planning to demolish the home and build something new.  

Not Focusing on the Neighborhood

If you are from Miami, you likely have a good idea what neighborhood you want to look at. And if you aren’t from Miami, you probably have an idea on neighborhoods as well. 

We always recommend for our clients to take a look at a neighborhood at rush hour, when school drop-off or pick-up is happening, et cetera. You don’t want to learn that taking a left turn off of your street is impossible from 2-6 pm everyday after you move-in. 

We’ve seen so many people fall victim to these mistakes, but you don’t have to. With the Kern Team at your side, we’ll make sure you’re properly educated about the current market so you know what kind of prices to expect. We’ll also get to know you and help you find the right neighborhood for your needs and budget. Get in touch, and let’s start this life-changing journey by taking the most important step: being prepared!