Miami Beach Real Estate Blog

Over the past few months I’ve noticed, especially in social environments, one of the first topics that comes up is the state of the real estate market. Usually, one of the first questions I get asked is “how’s it going?” sometimes with an expression of concern. I’d like to take this opportunity to relay my response here:

The national news media and overall real estate economic statistics are dire, and getting worse on a seemingly daily basis. The truth is that the real estate market boom was overextended and very much speculative based (as opposed to need and/or value based). These current market conditions were not a surprise to me or to anyone who has been in the business through previous market cycles. Essentially, I’m the middleman in real estate transactions, I think a very valuable middleman, but nevertheless a third party to a real estate transaction. I’ve witnessed many dire situations in the past few months where owners have lost all of their equity and stubbornly clung to unrealistic prices – ultimately losing control of properties to the bank or other creditors.

I work for one of the largest and strongest local real estate companies, and yet I’ve noticed that around my office the number of active agents has dwindled. The ones that are left are those consistently ranked over the years as “Top Producers”. These real estate sales professionals are not one, two, three or even four “deal wonders” but those that have the discipline, work ethic, business and organizational skills, as well as the experience to provide value-added services to their clients. Market conditions honestly make an impact on how we work on a daily basis- in a buyer’s market the skills I just mentioned become MUCH more important.

So, my response to the casual question “How’s it going?” is- it’s a challenge, an exciting challenge that makes all of us so called “Top Producers” reach deep down inside ourselves and our skills to make sure we have the discipline in guiding both buyers and (especially) sellers to “get real” and make informed decisions. Deals are still getting done, there are many foreign as well as local buyers making offers and closing on properties. However, everyone today knows that this is a buyer’s market (especially the Greater Miami area and even the coveted South Beach market). A seller today must start by pricing aggressively and working with a qualified real estate sales professional. In the past ten days, I have personally written four sales contracts/offers totaling over six million ($6 Million) for a combination of both commercial and residential properties. The one thing these had in common: all were priced right, in very good locations, and were being handled by competent real estate sales professionals that know how to present the properties to qualified buyers and their agent (me).

I’ve noticed that contracts take longer to close, and negotiations are longer and more protracted with financial underwriting departments looking much more carefully at each and every loan application. The value equation HAS to be present today and for the foreseeable future- the latest evidence of this are the headlines from newspapers indicating a pending revision of national mortgage broker regulations and new stricter national underwriting standards.

So, to summarize, the real estate sales business is still healthy for “Top Producers”- those of us that have the ability to be selective with whom we work with, and for those of us that also have the discipline to stay focused and use our hard-earned skills to provide a true value-added service for our clients.

My Key to Success

· My team and I focus only on motivated sellers- those willing to do whatever it takes to sell their property.

· Working with motivated and qualified buyers-particularly those from Europe that understand the value in purchasing income producing and/or prime waterfront properties. If a buyer has the goal of purchasing for x dollars per square foot, then we set up a purchasing system until they get what they want.

· Continuously and religiously following up with creative & innovative marketing programs and then with direct buyers, cooperating agents, and interested parties on behalf of our clients.

Downtown Miami is well known for its many high rises made up of luxury condos like 50 Biscayne, office buildings and a few company headquarters. While the Four Seasons Miami Hotel may be the most expensive, fanciest and the largest, it could eventually be dethroned by a building that will truly pierce the skyline if certain local developers manage to have their way.

Designed by the renowned Kobi Karp, a pair of 1,022 foot buildings soaring over ninety stories into the Miami skyline to be known as the Empire World Towers are being planned and are notable not only for their incredible height, but also for the three “sky bridges” that connect one building to the other and are likely going to be translucent, suggesting a feeling of walking on air hundreds of feet above the ground.

Although they are expected to function as a high rise condo and/or residential property, many people might look at this and wonder why anyone would find this worthwhile considering that condo sales and Miami real estate has, overall, slowed.

The Empire World Towers still remain a massive work in progress and the developer doesn’t expect to finish the building at least until 2010, two years from now when most have concluded that real estate should be doing significantly better. Therefore, the Empire World Towers could potentially become a prime building for investors seeking their next residential property investment.

The project is still in its infancy and has yet to be approved by the Miami City Commission. Assuming it manages to clear all the red tape, Empire World Towers could be an integral piece towards reinforcing tourism in Miami. After all, people will definitely want to visit to see for themselves what would become the tallest building in Miami. Already located in one of South Florida’s finest urban communities, Empire World Towers has tons of potential.