A client had a question about the market cap in Miami Springs, and renovating to sell. It put me into a research spiral and I figured I would share some of what I found. Pardon the long post…
When you decide to sell your home, you usually ask “Do I fix it up and try for more money, or sell as is”. The answer is complicated, and it depends largely on the current value of the home, the location, and the sellers situation. Talking just about numbers, there is a cap to the Miami Springs market. It is very unlikely that you will sell for above $800,000, even if you are on Hunting Lodge Dr. In the past two years the highest priced sales that were not on Hunting Lodge were 1105 Bluebird Ave at $999,500 and 301 Deer Run at $850,000. The Leonard Real Estate Group sold both of those properties. There was only one property that sold for more, and it was on Hunting Lodge for about 1.4 Million.
The Bluebird property stands alone as the standard for how much you can put into a home and not price yourself out of the market. That home was by most measures perfect and is the highest selling home not located on Hunting Lodge by $150,000. It is the property that sets the market cap but it is also an outlier. It was newly built, had a super luxury kitchen, and a host of premium updates throughout. It would be extremely hard to meet this standard in The Springs, and the real market cap is closer to the $800,000 mark.
So, if you own a home that is currently worth $600,000 and you want to do a major remodel which costs $150,000, the market here can hold that value and you should still be able to sell around $750,000 or more (if you do it right), but there is a limit and there is an analysis you should make to determine if you are maximizing your value and profits. An experienced Realtor can help you determine your current home value, what the value can be after a specific renovation, and what your net profits will be in both scenarios (renovating and selling as is). The results are often counter intuitive and you may not get a dollar for dollar return, especially if you price yourself out of the market. So before you pull the trigger on that remodel, contact your local real estate expert for a free consultation.
If you are ready to buy or sell, we are ready to earn your business. The Leonard Real Estate Group is here for all your real estate needs.