David Sporn is a broker associate with Coldwell Banker Residential Real Estate working in Miami.
Every week, we ask a Miami real estate professional for their thoughts on the top three stories from the week before. This week, we spoke with David Sporn, a broker associate with Coldwell Banker Residential Real Estate.
Miami Agent (MA): Data released by the Census Bureau earlier this week revealed that the cost of new homes is rising, particularly in the south. Have you noticed these increased prices in Miami, and if so, how have the affected your business, if at all?
David Sporn (DS): Prices are rising, but not in the same way did in the market from 2005 to 2007, the market is actually quite normal and there is a steady flow of buyers in the market. As long as the prices remain competitive, interest remains and buyers continue to make purchases. New construction is always attractive because it’s new, and everybody likes new.
MA: In a recent survey, the New York Fed asked renters what it was keeping them from moving into homeownership. In your experience, what is it keeping Miami renters out of homeownership, and do you think those trends will continue as rental rates continue rising?
DS: A lot of Millennials are opting to rent because they like the freedom renting offers over owning. In addition, a lot of young people are holding off having families due to career opportunities and, to a certain extent, prices. Homeownership tends to increase with the formation of families, so I think you’ll see an increase as more families are formed.
MA: One of our most popular articles this week discusses a number of phrases that agents should avoid saying to their clients, like not guaranteeing buyers a particular property. Throughout your career, what are some phrases or things you’ve learned to avoid saying to your clients?
DS: First of all, it’s important to listen to your clients and not make assumptions about what they want. I’ve always approached clients with “why this is a good deal,” rather than just saying, “this is a good deal.” It is also incorrect, and potentially against the law, to tell a buyer that they can expect a certain amount of return on a purchase. Future prices are completely market driven.