So You Want To Buy A Million Dollar Home In Tallahassee?

Posted by
Share
Share
Share
Share

If you are thinking about buying a million dollar home in Tallahassee, I must warn you that much of the real estate advice you might be reading online is inaccurate (or downright misleading)If you are thinking about buying a million dollar home in Tallahassee, I must warn you that much of the real estate advice you might be reading online is inaccurate (or downright misleading).

The market for these homes is not necessarily the same as homes priced at the heart of the market.

Million Dollar Homes For Sale In Tallahassee

Before we get into specific advice for homebuyers, let’s explore the current inventory of homes for sale in Tallahassee over $1,000,000.

Million Dollar Homes For Sale In Tallahassee

Million Dollar Homes For Sale In Tallahassee

29 Properties
Page 1 of 3
8824 WINGED FOOT Drive
Tallahassee, FL, 32312
Beds4Baths4MLS#406571
1202 E Park Avenue
Tallahassee, FL, 32301
Beds9Baths4MLS#397152
6939 Ranch Club Road
Tallahassee, FL, 32305
Beds6Baths4MLS#405539
7075 Ox Bow Road
Tallahassee, FL, 32312
Beds4Baths4MLS#404916
8012 OAK GROVE PLANTATION Road
Tallahassee, FL, 32312
Beds4Baths5MLS#405452
4264 Safari Run
Tallahassee, FL, 32309
Beds4Baths4MLS#401188
3726 Lakeview Drive
Tallahassee, FL, 32310
Beds6Baths5MLS#395970
XXX Raspberry Way
Tallahassee, FL, 32312
Beds5Baths4MLS#404768
1376 Rachel Lane
Tallahassee, FL, 32308
Beds5Baths5MLS#406869
1485 Constitution Place
Tallahassee, FL, 32308
Beds5Baths5MLS#404266
1721 TARPON Drive
Tallahassee, FL, 32308
Beds4Baths5MLS#403996
1806 Dove Field Run
Tallahassee, FL, 32317
Beds3Baths3MLS#399853

What You Should Know When Preparing An Offer On A Million Dollar Home

As you will see from the list of homes that have sold for more than $1M at the bottom of this article, five were sold in 2016. But when we drill down and only select existing homes (meaning no new construction), we see that only two existing homeowners were able to sell their homes for $1M or more.

The graph below shows the number of existing homes that sold for $1M or more each year going back to 1991.

Preparing An Offer On A Million Dollar Home

We can observe that existing million dollar home sales were nearly non-existent before the housing market boom 15 years ago. They flourished during the expansion phase of our market and have regressed to an average of four homes per year over the past 7 years.

When we compare the four home sales per year demand into the active supply of million dollar homes on the market (19), we calculate nearly 5 years supply of million dollar homes for sale! Another way to interpret this is that if nobody lists another million dollar home for sale, we have all the supply that will likely be needed for the next five years. Unless …

Two Variables That Might Rock The Million Dollar Homes Market In Tallahassee

With all the data that we track for the Tallahassee real estate market, we are very confident in the advice we provide to people selling a home, buying a home, and for those doing both. We share with them a lot of market information so that they can see the big picture, and we help them determine the best course of action when negotiating during a sale.

Nevertheless, there are two key variables that we diligently track that could absolutely blow away our recommendations on million dollar home negotiations, and these variables will have opposite effects. The first variable is more likely (and bad), while the second is less likely (and would have a positive impact on the high end homes market).

(1) Rising Mortgage Interest Rates

Would you be surprised to learn that 27% of million dollar home buyers paid cash, meaning 73% borrowed money for the purchase of their homes? This means that luxury homes and estate sales exist in a market that is built upon fragile ground. Currently, mortgage interest rates are less than 50% of their 50 year average (simply put, rates are incredibly low). If you note the explosion of million dollar home sales in the graph above, it corresponds to the time frame that mortgage interest rates were lowered, primarily due to the efforts of the Federal Government trying to save the collapsing housing market.

If mortgage interest rates return to normal, I believe we will lose more than half the buyers that are currently able to afford million dollar homes, and thus the existing supply of homes will likely exceed 10 years (six months supply is a healthy balance).

So if you own a million dollar home or if you are planning on buying one soon, make sure you discuss mortgage interest rates and their impact on you being able to sell your home.

(2) Jobs – Major Employment Change In Tallahassee

It’s happened elsewhere, but we haven’t seen any real job growth in Tallahassee. If a major employer would relocate operations to Tallahassee, we would see the demand for million dollar homes move higher.

I do not have any faith in our local government’s ability to help Tallahassee in this manner, but perhaps positive circumstances beyond their control (like industry growth relating to the Mag Lab) might just yet blossom. I certainly would not make a home buying decision based upon the expectation of more million dollar home buyers moving into the area in the foreseeable future.

What Should A Million Dollar Home Buyer In Tallahassee Do Today?

The smart advice is to be a diligent shopper. Remember, there are plenty of homes out there and many buyers are making a HUGE mistake … they are buying new construction. Last year, there were a total of 5 million dollar homes that sold (2 were existing homes, 2 were new, and one was really purchased for the land).

Use our side-by-side comparison tool to help make the final selection(s). Unless a particular home really grabs you, this tool will help you find the hidden value among your choices.

Side By Side Home Comparisons

Remember, even in this crazy market, the amount of money you should offer on a home is not determined by its list price, rather it should be based upon what you think the home is worth (an amount you think the seller could get from another buyer). At the higher price point, there is very likely going to be a discount in your offer. At some price points though, you might offer above list price. It is critical you and your real estate buyer’s agent discuss pricing strategy for your offer(s).

If you are building or buying a new home, you’ll pay a premium that will likely take 10 or more years to recover. The safer bet is to buy an existing home that is fairly new but the seller is motivated to move. It’s not likely that you’ll have competition when making an offer, so consider making simultaneous offers on multiple homes so that the sellers understand that they stand a great chance to lose you to their competition if they do not act.

Make sure you work with a real estate agent who can communicate market conditions to the seller (it is likely they have not received an accurate assessment of the market from their agent). Contrary to the housing market at prices below $400,000 where it is a hot seller’s market, the million dollar homes market is incredibly unbalanced in the favor of the buyer.

If you choose wisely, you will be buying your million dollar home for a whole lot less than it would cost to replace. Try to ensure your agent approves of the location and the exterior amenities, as those will be critical if you end up having to sell in a difficult market.

What Should A Million Dollar Home Seller In Tallahassee Do Today?

If you own a million dollar home, please read the previous section. It is what informed buyers are going to do.

You have a tough decision to make … stay, or go! Don’t be one of those crazy homeowners who have their home on the market for five years, always being prepared for the next looky-loo wanting to come through and see your glorious home. If you are not willing to price your home to be one of the best four deals on the market, why do you think you’ll be one of the four sellers who succeed this year?

Supply and demand rule every market, and that is very much true in the million dollar homes market in Tallahassee. There is too much supply and we’re making more. If you don’t have to move right now, take your home off the market and enjoy your million dollar home. You’ll help reduce the supply and that will help sustain values for the day when you ultimately do need to move.

When that day comes … don’t hire a “yes man” or “yes woman” either. Interview professionals who will tell you what you need to do to sell your home. Make them demonstrate a real knowledge of supply and demand and don’t let them “relationship” you to death so that you end up hiring somebody who will fail to sell your home. If you’ve been on the market for a year … you need a different real estate company. Move on. Sadly, we see some million dollar listings stagnate for years and years and years. Don’t let this be you.

All Home Sales In Tallahassee Above One Million Dollars

The following is a list of all home sales at $1M or higher in Tallahassee since 1991.

Home Sales Priced Above One Million Dollars

AddressPricePrice / SQFClosing DateYear BuiltSQFSale Type
6311 Bird Dog Pt$1,100,000$3492026-10-0120143,151Resale
8503 Congressional Dr$1,700,000$2442026-09-2820016,960Resale
2998 Golden Eagle Dr E$1,375,000$2192026-09-2519956,280Resale
1755 Tarpon Dr$1,375,000$2642026-09-1419915,205Resale
6981 Duck Cove Rd$1,200,000$3922026-08-3119843,062Resale
7083 Grenville Rd$2,925,000$4952026-08-3120225,914Resale
8836 Winged Foot Dr$1,325,000$3232026-08-2819954,100Resale
278 Rosehill Dr E$1,450,000$3632026-08-2419953,992Resale
8983 Winged Foot Dr$1,125,000$2672026-08-2019894,213Resale
2217 Thomasville Rd$1,865,000$4342026-08-0620164,301Resale
8991 Winged Foot Dr$1,050,000$2042026-08-0419875,135Resale
3908 Bobbin Brook Cir$1,150,000$1472026-07-3119937,805Resale
7877 Jared Way$2,250,000$4712026-07-3120244,777Resale
125 Evening Shadow Ct$1,950,000$2982026-07-2920196,553Resale
8014 Susan Bradford Ln$2,875,000$4822026-07-2720225,969Resale
1305 Rachel Ln W$1,150,000$3412026-07-2020033,377Resale
1022 Lothian Dr$1,350,000$3562026-07-1719683,797Resale
3860 Ardmore Ln$1,055,000$3112026-07-1420233,389Resale
5351 Pembridge Pl$1,147,500$2472026-07-1419954,653Resale
2351 Maple Leaf Way$1,420,000$3102026-07-0120244,587New
537 Williams St$1,010,000$2812026-06-3020163,595Resale
2130 Golden Eagle Dr W$1,059,000$2762026-06-3019993,841Resale
3592 Mossy Creek Ln$1,525,000$2332026-06-3020046,550Resale
3001 Golden Eagle Dr E$1,039,000$2272026-06-2920034,576Resale
8626 Proctor Rd$1,085,000$3542026-06-2920243,063Resale
1743 Armistead Pl$1,225,000$2862026-06-2619774,282Resale
308 Park Ave E$2,025,000$4762026-06-2619804,256Resale
1007 Williams Landing Rd$1,169,000$4082026-06-2520242,864New
8121 Proctor Rd$2,049,000$5382026-06-1820233,807Resale
5453 Pembridge Pl$2,375,000$5892026-06-1720244,031Resale
2875 Royal Isle Dr$1,479,400$3792026-06-1220263,900New
5950 Miller Landing Cv$1,500,000$2862026-06-0319815,242Resale
3418 Lakeshore Dr$1,368,200$2232026-05-2919526,133Resale
3635 Mossy Creek Ln$1,295,000$3332026-05-2220053,892Resale
2100 Thirlestane Rd$2,950,000$6182026-05-1519944,777Resale
1235 Live Oak Plantation Rd$2,150,000$5322026-05-1519854,040Resale
7099 Ox Bow Rd$1,150,000$3142026-05-1119963,661Resale
214 Rosehill Ln$1,625,000$4312026-05-0619893,769Resale
3409 Lakeshore Dr$1,080,000$3432026-05-0619673,149Resale
4548 Grove Park Dr$1,000,000$3392026-04-3020082,951Resale
4640 Grove Park Dr$1,295,000$2762026-04-2920044,700Resale
3935 Old Mill Run$2,150,000$3682026-04-1519995,836Resale
511 River Pond Ct$1,625,000$4162026-04-1520173,903Resale
8039 Evening Star Ln$1,025,000$2632026-04-0919883,894Resale
3871 W Millers Bridge Rd$1,560,000$4072026-04-0319983,832Resale
3006 Golden Eagle Dr E$1,175,000$2162026-04-0120075,428Resale
9901 Waters Meet Dr$1,275,000$3182026-03-2020194,004Resale
4572 Grove Park Dr$1,000,000$2652026-03-2020063,778Resale
6304 Bird Dog Pt$1,365,000$3752026-03-1720163,638Resale
2405 Bass Bay Dr$1,000,000$3012026-03-0519793,319Resale
7840 Broomsage Pl$1,587,500$3312026-02-2720134,793Resale
10800 Mccracken Rd$4,250,000$1,0032026-02-2520054,238Resale
9711 Faraway Farm Rd$1,200,000$3472026-02-2420223,456Resale
976 Rosebay Ct$1,225,000$2382026-02-2019865,152Resale
6032 Heartland Cir$1,275,000$3192026-02-1820203,993Resale
401 Meridian Pl$1,250,000$3962026-02-1220223,157Resale
6484 Wiregrass Way$1,525,000$3852026-02-0220163,956Resale
6949 Mcbride Pt$1,575,000$3062026-01-2319745,146Resale
2308 Charles Ct$1,050,000$2702026-01-2219973,896Resale
608 South Ride$1,490,000$2672026-01-2119515,587Resale
3904 W Millers Bridge Rd$2,250,000$4222025-12-3120065,330Resale
9555 Yashuntafun Rd$1,150,000$4172025-12-2919822,756Resale
9525 Woodland Hills Way$2,890,000$4332025-12-2320026,679Resale
905 Live Oak Plantation Rd$1,200,000$2092025-12-2219645,753Resale
1321 Piedmont Dr$1,290,000$3252025-12-1919593,975Resale
134 Meadow Wood Ct$1,100,000$3672025-12-1820183,000Resale
15331 Sunray Rd$1,100,000$3282025-11-1920073,358Resale
1001 Kenilworth Road$1,280,000$3932025-11-1719633,257Resale
3899 W Millers Bridge Rd$2,050,000$2852025-09-2619987,191Resale
6995 Big Woods Dr$1,800,000$3202025-09-2620105,626Resale
288 E Rosehill Drive$1,200,000$2542025-08-2919934,725Resale
930 Old Farm Rd$1,430,000$3992025-08-1920213,581Resale
2562 Millstone Plantation$1,325,000$2432025-08-0820035,451Resale
4244 William James Way$1,150,000$3362025-07-3120033,422Resale
6319 Bird Dog Pt$1,100,000$3302025-07-3020143,333Resale
197 Rosehill Dr W$1,092,500$2702025-07-2119894,051Resale
6323 Bird Dog Pt$1,186,900$3692025-07-1820143,213Resale
2000 Dogwood Hl$2,650,000$2302025-07-17196611,520Resale
2610 Millstone Plantation Rd$1,010,000$2742025-07-1720023,683Resale
5390 Pembridge Pl$1,090,000$2442025-07-1519914,464Resale
1579 Escadrille Dr$1,100,000$3842025-07-0120132,867Resale
5453 Pembridge Pl$1,850,000$4592025-06-2720244,031Resale
6641 Lake Pisgah Dr$1,500,000$3442025-06-2720144,366Resale
9652 Deer Valley Dr$1,025,000$2222025-06-2320024,610Resale
5984 Ansel Ferrel Rd$1,030,000$2832025-06-2019973,638Resale
2150 Thirlestane Rd$3,850,000$3622025-06-12199510,644Resale
11275 Turkey Roost Rd$2,150,000$2792025-06-0620067,711Resale
1533 Ox Bottom Rd$1,250,000$4202025-06-0520252,974New
4084 Faulkner Ln$1,200,000$3532025-06-0520253,400New
6336 Bird Dog Pt$1,525,000$3972025-06-0320173,845Resale
129 Evening Shadow Ct$1,130,000$2962025-05-3020193,813Resale
1642 Mitchell Ave$2,200,000$4352025-05-1420205,057Resale
409 South Ride$1,113,000$2682025-05-0119524,160Resale
811 Live Oak Plantation Rd$1,385,000$3152025-04-2519824,391Resale
6979 Standing Pines Ln$1,275,000$2972025-04-2420004,286Resale
1052 Summerbrooke Dr$1,025,000$2962025-04-2419943,463Resale
2803 Rabbit Hill Rd$1,460,000$2532025-03-3119905,761Resale
2719 Chaires Cross Rd$1,015,000$3202025-03-3120243,167New
3090 Dickinson Dr$1,105,000$2892025-03-2820133,821Resale
1312 Live Oak Plantation Rd$1,200,000$2402025-03-2720155,002Resale

I hope our report on Million Dollar Homes in Tallahassee has been useful for you. If you plan on buying a home soon and want expert advice for the area and price range for which you are shopping, simply drop me a note and we’ll be in touch right away to set a time to meet and discuss your needs.

Related Posts