I’m often asked by both buyers and sellers interested in purchasing or selling a waterfront (and non-waterfront) single family home on Miami Beach if we’ve reached a housing market bottom? The answer for PRIME waterfront properties located on island communities such as Palm, Star, Hibiscus, Sunset Islands I – IV, and the various Venetian Island communities is that homes that are priced according to latest closed sales comparables are selling quickly. As inventory continues to be absorbed, we are seeing price stabilization (especially for remodeled and turnkey homes and condos).
Waterfront condos, especially premier waterfront and oceanfront buildings such as Continuum North and South Towers, Apogee, The Portofino, The Murano at Portofino, Murano Grande, Icon, and even The Bentley Bay on West Avenue are also seeing significant sales taking place in the past several months AT REDUCED PRICES. For South Beach landmark luxury buildings completed after 2001, if the price is right, we are seeing plenty of buyers willing to make reasonable offers. Therefore, if you’re a seller that needs to sell, my advice is the same- work with an experienced and knowledgeable sales agent/broker that will price your property realistically and then market as agressively as possible.
My team and I recently had an interesting experience which I’d like to share with our readers. Last week, we placed an offer on a condominium offered as a short sale at the Murano Grande in Miami Beach. We only went through the effort of contacting one of our most loyal and best buyers after receiving a solicitation on behalf of a distressed owner who I happen to know (this South Beach condo is listed with a family friend). Unfortunately, shortly after submitting a contract significantly ABOVE the list price, we discovered that the price on the Multiple Lisitng Service was raised several times, and that the commission to cooperating Broker was changed to one percent (with total commission payable of six percent).
Here’s the problem – our ready, willing and able CASH Buyer was completely turned off by the lack of coherent pricing. Also, all short sales and bank foreclosures which we have dealt with in the recent past (and we’ve closed on many) stipulate commission splits of 50/50 between the buying and selling brokers. We subsequently found out that the listing agent for the condo convinced the current owner to accept a finance contingency contract (his own buyer) at a significantly lower price. Not only was this agent acting unethically with us, but the worst part is that the owner (and the lenders) have no idea of the games that this particular agent is playing in a desperate attempt to earn some extra commission income.
I firmly believe, especially in this market, that it’s an agent’s duty to do everything possible to sell a property for as high a price as possible to a QUALIFIED buyer. Any agent (or Brokerage firm) that is not willing to work for the best interest of their client should no longer be in the business. The old adage applies – “Let the Buyer (and Seller) beware.”
Latest Closed Sale from TheKleerTeam (Buyer Representation):
Continuum condo - North Tower #1404
Continuum North Tower presents over 15 styles of residences, with this unique split two bedroom floorplan offering views of Fisher Island, the Atlantic Ocean, and Government Cut. Residences feature private balconies with glass railings, floor to ceiling sliding glass doors with tempered, tinted glass designed to meet hurricane standards of the South Florida.
Closed Sales Price: $1,250,000 (7/1/09) Original “For Sale” Price : $1,425,000 Bedrooms: 2 Bathrooms: 2.5
Sold Price per S.F.: $838/S.F.
Reduced from Original Price: 12% (106 days on market)
I’m often asked about the best deals in Miami Beach’s premier waterfront homes and condo buildings. Specifically, most active buyers want to know how much lower can prices go and what constitutes a true “bargain” today? Lately, I have noticed a divergent trend among Miami Beach properties (both homes and condos). The most sought after condos in premier buildings such as TheContinuum Condo, Murano at Portofino, Portofino Tower, Icon, and Murano Grande have seen a surge in sales activity in the past few months. The premier waterfront single family homes and condos are selling NOW at significantly discounted prices.
The most recent condo and home sales continue to demonstrate that buyers are willing to pull the trigger and purchase homes and condos that are priced right and significantly discounted from 2006 closed sales prices. What is the right price? It all depends!
A few divergent examples of Recently Sold Waterfront Miami Beach Condos and Single Family Homes:
The Continuum Condo – South Tower Penthouse-1
Continuum Penthouse
Magnificent and massive South Beach oceanfront 3-level penthouse. 360 views, 5 bedroom/7.5 bath, 13′ ceilings (26′ in dining room) & 7,000SF under a/c, pool, Smart house touch panels integrate high-end audio, video, auto shades, HVAC, lighting, security, 4-plasma TVs, wi-fi, private elevator, all on top of the most exclusive 13-acre gated enclave with spa/club, 3 tennis courts, 3-pools and 2 rest. at the southernmost tip of the most exciting part of South Beach. Also included in the sale were four private parking spaces.
: 12 acres on the Ocean, 360 degree views, One of a Kind Three Level Penthouse
: None
Sold Price: $9,900,000
Original “For Sale” Price : $25,000,000
Previous Sales Price (2003) $7,000,000
Bedrooms: 5
Bathrooms: 8
Condo S.F.: 7,374
Sold Date: May 15, 2009
Sold Price per S.F.: $1,342 Discount from Original Asking Price: 60.4%
The Bentley Bay – South Beach Design Group Showcase Condominium
Bentley Bay Condo # 1811
Amazing 270 degree views of Downtown Miami, Star Island, Fisher Island, and the Ocean from this contemporary designed two bedroom condominium. Terrazo floors, custom lighting, clean design and decorator appointed finishes. The original owners had spent well over $200,000 in upgrades and finishes alone!
: 270 degree views of Biscayne Bay, Downtown Miami, and the Ocean, beautiful finishes & design. Boutique Building.
: High Maintenance Fees and construction issues at The Bentley Bay
Non-MLS Sold Price: $480,000 (2009)
Original “For Sale” Price : $1,595,000 (2005)
Previous Sales Price: $1,090,000 (2006)
Bedrooms: 2
Bathrooms: 2
Condo S.F.: 1,250
Sold Date: May, 2009
Sold Price per S.F.: $384/S.F. Discount from 2006 Asking Price: 72%
Palm Island- Single Family Home with Old World Charm
Palm Island Miami Home
Beautifully updated 2-story Mediterranean charming home on exclusive, guard-gated Palm Island. Paradise living on secluded island just minutes from the excitement of South Beach and downtown Miami. Easy commute anywhere in South Florida. Walk to new park/playground/tennis courts. 4 bdr/ 3 bth, updated kitchen, marble baths. Open & bright design.
: Charming Home, Spectacular location on Palm Island, Gated Island Community
: Small Lot, some work needed on property
Sold Price: $660,000 (2009)
Original “For Sale” Price : $1,749,000 (2006)
Bedrooms: 4
Bathrooms: 3
House S.F.: 2,616
Land S.F.: 5,775
Sold Date: May, 2009
Sold Price per S.F.: $252/S.F.
Discount from Original Asking Price: 62%
Palm Island- Double Lot Waterfront Home
Coconut Lane Home - Palm Island Miami
Waterfront home on a double sized lot with lush landscaping, 100 ft of open bay on 24 hour gate guarded Palm Island. Amazing views of downtown Miami and Cruise ships. The home included a private dock with Boat Lift, a two car garage, sauna, outdoor shower, pool, large entertainment room, and even a real working fireplace. Marble and wood floors throughout, stainless steel appliances, Hurricane Impact windows, and a balcony as well as covered Patio on the second floor to enjoy the views!
: 100 ft. Prime Waterfront Lot, Spectacular location on Palm Island, Gated Island Community
: Home needed some updating
Sold Price: $2,700,000 (2009)
Original “For Sale” Price : $5,800,000 (2006)
Bedrooms: 3
Bathrooms: 3
House S.F.: 3,180
Land S.F.: 14,000
Sold Date: May, 2009
Sold Price per S.F.: $849/S.F.
Over the past month, my team and I have witnessed a significant increase in buyer activity for what I consider to be “A” real estate properties. These can be quickly defined as:
- Miami Beach waterfront condos in buildings such as The Murano, Murano Grande,Icon South Beach, Portofino Tower, Continuum, and more affordable buildings such as The Waverly and The Floridian along West Avenue.
- The more popular luxury waterfront single family homes located on island communities such as The Venetian, Palm, Hibiscus, and Sunset Islands.
Whether it’s a single family home or condominium, an additional requirement for an “A” property in this Buyer’s market is that it be turnkey, or completely remodeled and updated. In other words, the only additional expense a buyer has to be concerned with is moving in with their furniture and personal belongings.
It’s been our experience recently that single family homes and condos, when priced RIGHT, are bombarded with buyer interest and generally receive multiple offers. We are witnessing a new surge of buyer interest in these “A” location properties in the South Beach and the greater Miami Beach real estate market. Our real estate websites are also seeing a dramatic increase in traffic, with local cooperating brokers calling with inquiries and sending us multiple sales contracts.
All of these signs are indicators that the bottom is very close to being reached, and sales are beginning to come back, with prices to GRADUALLY follow as the “A” inventory diminishes.
A few examples of “A” real estate properties currently on the market:
Venetian Island – Greatly Reduced Waterfront Home
Rivo Alto home in Venetian Islands Miami Beach
Romance is felt throughout this Mediterranean waterfront home situated on 10,500 sf of land, spanning 60 feet of wide bay waterfront facing the Miami skyline. This timeless residence with unique architectural features contains over 4,117 sf of living area, with 5 bedrooms, 6 full and 2 half baths.
Current Asking Price: $3,199,000 Original Asking Price : $4,250,000
Bedrooms: 5
Bathrooms: 8
House S.F.: 4,117
Land S.F.: 10,500
Waterfront: 60 ft. with Dock
San Marino Island- Significantly Reduced Turnkey Waterfront Home
San Marino Waterfront Home in Venetian Islands
A fantastic opportunity to own an oversized waterfront lot. This Mediterranean waterfront estate has 90 feet on the water, located on the Venetian Island causeway between Miami and Miami Beach. Beautifully redone with gourmet kitchen, brazilian cherry hard wood flooring, fireplace, office/library, and award winning landscaping!
Current Asking Price: $2,950,000 Original Asking Price : $4,599,000
Bedrooms: 4
Bathrooms: 5
House S.F.: 3,370
Land S.F.: 15,750
Waterfront: 90 ft. with Dock
Portofino Tower Condo- Spectacular Atlantic Ocean, Fisher Island, and Miami Beach Skyline Views
View from the Miami Beach Portofino Tower Condo Unit #3402
This high floor condominium is a real flow through floorplan with two expansive and very private terraces with the most stunning views of Fisher Island, Downtown Miami, Miami Beach and the Ocean. A Grand Foyer entrance, floor to ceiling windows, a unique floorplan, and the most exquisite upgrades make this condomimium one of a kind.
Current Asking Price: $1,500,000 Original Asking Price : $1,795,000
Bedrooms: 2
Bathrooms: 3
Condo S.F.: 1,960
What I especially like about this latest bank approved condo is that it represents a genuine VALUE for the savvy real estate investor or potential owner/user. This price point represents a value that is FAR below replacement cost. The annual rental income on this premier luxury Miami Beach condo is approx. $4,500/month for short term rentals (High Season) and $3,200/month for annual rentals (Low Season). The Bentley Bay offers incredible unobstructed views of both the downtown Miami skyline, Biscayne Bay, and the Ocean. This unit is one of the best condo deals in South Beach.
The Bentley Bay condo was completed in 2005 (with subsequent bank supervised rehab of balconies) and is a boutique building located just North of Fifth Street. Offering direct and easy access to all major expressways, it is considered the gateway to South Beach. The downside to the Bentley Bay- the relatively high maintenance fees (due to having two towers and relative small number of units), but I believe that the flexible rental policy and the premier waterfront location in the heart of South Beach make up for this. Also, the planned retail development by Crescent Heights on 6th Alton as well as the 5th and Alton Shopping Center will completely transform the neighborhood over the next few years.
My team and I are committed to providing strong value added service to our clients, which means delivering the best purchasing opportunities to today’s buyers of Miami Beach luxury condos. Contact us at 305-673-3809 for more information on this foreclosure condo.
: 12 acres on the Ocean, 360 degree views, One of a Kind Three Level Penthouse
: None
