Miami Beach Waterfront Luxury Homes- A perspective on our latest Buyer Experiences (Note to Sellers)
Price: $4M – $6M
Approx Size of Home: 3,500 SF – 5,000 SF (Four bedroooms preferred)
Contemporary Design / Decor
Preferred Minimum 100′ of water frontage
Room for Pool (if none currently)
Island Communities Targeted: Palm Island, Hibiscus, Venetian Islands, Sunset Islands, North Bay Road Homes
In order to preserve the Buyers confidentiality with the specific homes that we’ve been negotiating, I’m going to focus on the issues that have come up in the negotiations/purchasing process which are unique to today’s economic and financial situation. This is the third set of buyers that I have worked with in the past year that have insisted on ordering an Appraisal (at Buyers expense) BEFORE making a written offer. This demonstrates the importance of a serious seller today pricing their home correctly. Given that we are in a Buyer’s market, and especially in light of the financial turmoil of the past two years, any serious buyer wants to be CERTAIN that they are getting a reasonable deal on a home purchase.
I’m often hearing talk these days about the real estate market in Southeast Florida “turning around”. This means many different things- most significantly, in concrete terms what I’m seeing is more liquidity in the market today for qualified buyers. Specifically, those looking to purchase a home with the above mentioned criteria, to obtain a 75% loan to appraised loan to value mortgage (for qualified buyers) is a relatively straight forward proposition for a luxury home in Miami Beach. However, to obtain a construction loan or to be able to pull equity from a recently purchased property is NOT so easy, if not exceedingly difficult or downright impossible!
This is significant for sellers to take into account, because what it means going forward is that if a property does not appraise, it will most probably not sell for the foreseeable future. In today’s market environment, even the “cash” buyers are insisting on getting proof of fair market value by way of an appraisal. This is a relatively new phenomenon, which I encourage every Miami Beach home seller to be aware of!
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