How to Determine the Value of Your Miami Home to Sell It: Insider Tips from a Miami Real Estate Expert

Introduction 

First, why am I qualified to answer this question? As a seasoned Miami real estate broker with 10+ years of experience under my belt, I've navigated the vibrant and diverse housing market of this our beloved paradise, helping homeowners sell their properties. Miami's real estate landscape is as varied as its culture, ranging from luxurious waterfront estates in Coral Gables, all varieties of suburban family homes in Kendall and Doral, chic condos in Brickell and even historic homes in Coconut Grove. The basics for value are the same: Compare against similar, neighboring, recently sold homes (not those still for sale, but those actually sold).

Determining the value of your Miami home is crucial to not only setting the right price but also to attracting serious buyers and closing the deal swiftly. Here, I'll share my insights, real-life stories, and advice from other local experts to guide you through determining the value of your Miami home.

Miami: Where the world wants to live

(Image of the Miami International Airport overlooking the Brickell skyline)

Miami's real estate market is dynamic, influenced by international buyers, national trends, and economic factors. As a broker, I've seen firsthand how these elements can affect home values. We see a constant influx of people from California, New York, Canada, Latin America, Russia, China and many other places inside and outside the U.S. that home-sellers can capitalize on with the right strategies.

For instance, a client of mine, Raúl, owned a charming Art Deco home in Miami Beach. Despite the home's unique appeal, he had a hard time determining the value because there were no similar homes sold recently and neighbors had sold for vastly different price points. He wanted to back my opinion with an independent appraisal, to feel more certain and validated. Once confirmed, we ended up using it in the marketing we created to support his asking price and found an international cash buyer who bought the home full price after seeing the appraisal.

Here are the different options you have to determine your home’s value: 

Option 1: Get local agents to prepare you Comparative Market Analysis (CMA) - Free and relatively quick.

A CMA is your first step toward understanding your home's value. This involves comparing your property with similar ones that have recently sold in your area. "The key to a successful CMA is not just in finding similar, recent and neighboring sold homes; but in adjusting for differences, because no 2 homes are exactly the same" says Mr. Ortelio M. Hernandez from OMH Appraisals a local Coral Way appraisal company. For example, if your home has a newly renovated kitchen, it may fetch a higher price compared to a similar size home with an outdated kitchen.

You can easily get CMAs by interviewing local Real Estate Agents to sell your home. You will do well to interview more than one, and each of them is likely to prepare a CMA for you at no cost. Take the time to review the homes they used compared yours to, pay attention to when those homes sold and the features, size and location those homes have in comparison yours. This will give you a fair idea of the value of your home.

Homes still “For sale” are not evidence of what the buyers are actually paying, so they are not officially used as input to determine homes values, but it still can help you set your Asking Price strategy. For example, after you determine the value of your home based -only- on recently sold neighboring properties, you can check the Asking Price of other homes “For Sale” in the area, and design your pricing strategy accordingly. Assume most buyers will naturally gravitate towards homes listed for less first, so your asking price strategy will affect how long your home stays in the market.

Option 2: Online Valuation Tools

Less accurate, but instantaneous

Tools like Zillow “Zestimate” or the Redfin Estimate, while not as accurate as a professional appraisal, these online valuation tools can provide a quick estimate. 

However, take these numbers with a grain of salt. "These tools often lack the local insight and can't account for the unique features of Miami homes," notes Alberto Vasquez, a fellow Miami realtor. Always use these tools as a preliminary step rather than a definitive valuation.

Option 3: Professional Appraisal

Cost: Around $600, takes about one week.

For the most accurate, unbiased valuation, consider hiring a professional appraiser. They assess everything from the square footage and home condition to local market trends. "A professional appraisal gives you a solid foundation for your asking price," explains Ortelio M. Hernandez from OMH Appraisals. This was the case for a recent seller working with me, Alex, whose Coconut Grove property was appraised higher than expected due to its historic significance and lush landscaping, features highly valued in our local market.

Understand the Local Market

Miami's market can vary significantly from neighborhood to neighborhood. "Staying informed about local trends is crucial," David Siddons, one of the top Condo realtors, advises. For instance, the demand for homes in areas like Wynwood has surged due to its thriving arts scene and nightlife, potentially increasing home values in the area.

Real-Life Success Stories

The Case of the Overlooked Gem in Shenandoah

Sarah, a homeowner in Shenandoah (Coral Way), was initially unsure of her home's value due to its age and normal age-related issues. However, by emphasizing the home's location within a culturally rich and rapidly gentrifying area, we attracted buyers looking for an authentic Miami experience. The home sold for well above the initial CMA to a young buyer moving from California, who understands the value of a well-located home and is able to see beyond minor typical issues, because were homeowners themselves before.

The perfect ‘in-law quarter’ home in Silver Bluff Estates

José and Mariana bought a home with my help in 2021 here in Silver Bluff (where my home also is) moving from Toronto, Canada. They were used to home-buyers making above-asking prices to buy homes in Toronto. And when they found a beautiful corner home with a highly desirable feature: a separate dwelling they wanted to use for Mariana’s mom who recently migrated to the US and could help with the kids.

This valuable feature is harder to account for in appraisals. Still, it can significantly add value to homes in the area and can only be compared to recently sold homes with Additional Dwelling Units in the same area. This feature alone brought $100,000 more in value to the seller of this home. And you can see below how it looked at the time of sale:

Final Thoughts

Determining the value of your Miami home requires a blend of local market knowledge, professional expertise, and an understanding of your home's unique features. This is why Local Agents are who Banks and Financial Insitutions rely on to determine homes values without stepping foot in a local market. 

Whether it's the condition, gentrification, location, or recent renovations, every detail counts. As Miami continues to evolve, so does its real estate market. By following these steps and seeking advice from experienced professionals, you can navigate this complex market and successfully determine the value of your Miami home.

Remember, every home in Miami tells a story. It's our job to articulate that story in a way that maximizes its value. If you're considering selling your Miami home, feel free to reach out for a personalized consultation. Together, we'll turn your real estate goals into reality.