Key facts
- Florida real estate agents are advised to focus on selling the monthly payment rather than the price.
- Agents should present a comparison of total cost of ownership, including CDD and HOA fees, for resale homes versus new construction.
- Buyers should be shown the cost of waiting to purchase by comparing rent, potential price increases, and refinancing options.
- Sellers should decide on concession strategies, such as rate buydowns, before listing a property.
- Agents are encouraged to front-load insurance conversations with sellers and buyers due to upcoming policy changes.
- A 21-day checkpoint should be established with sellers to reassess pricing or marketing strategies if no offer is received.
Florida real estate agents are facing a challenging market characterized by aggressive builder incentives, buyer hesitation due to interest rates, and extended selling times. According to a mid-year survey by the Orlando Regional Realtor Association, 64% of local Realtors report buyers are waiting for rates to decrease, 53% note buyers are seeking lower price points, and 68% are observing an increase in seller concessions compared to the previous year. These trends are consistent across various Florida markets, with new-construction sales share varying significantly by location.
Real estate coach Darryl Davis suggests these are not market problems but skill deficiencies. He advises agents to counter builder incentives by focusing on the monthly payment rather than the list price, utilizing rate buydowns funded by sellers, and providing comprehensive cost-of-ownership comparisons. Davis also recommends making homes 'move-in ready' by having pre-inspections and insurance quotes readily available, and proactively registering buyers with new communities to negotiate agent compensation.
To address buyer reluctance tied to interest rates, Davis suggests reframing the decision from 'rate' to 'cost of waiting,' illustrating the financial impact of continued renting and potential price appreciation. He advocates for sellers to fund rate buydowns as an alternative to price cuts, and for agents to provide consistent, valuable follow-up to sidelined buyers. Prospecting individuals facing life changes like relocations or job transfers is also highlighted as a strategy for agents.
For sellers experiencing longer market times and increased concessions, Davis emphasizes conducting thorough listing consultations that include market analysis like absorption rates and supply numbers. He suggests pre-determining concession strategies with sellers and front-loading insurance discussions, particularly given upcoming policy changes for Citizens policyholders in Florida. Implementing a 21-day checkpoint for reassessing strategy is proposed to shorten average days on market.