Miami Beach Real Estate Blog

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)

The level of interest and calls from former (and many new) clients looking to purchase Foreclosure and Bank Controlled condos as well as Short Sales has significantly increased in the past few months.  The strongest downward price pressure is occurring due to distressed and short sales.  However, the high end of the luxury condo market, particularly for the five star buildings in the South Beach area (Icon, Murano Grande, Murano at Portofino, Continuum, Apogee and Portofino Tower) continue to experience strong demand and prices still command a strong premium in terms of overall $/S.F.

Purchasing a Bank-owned (usually referred to as REO) or short sale property is usually a lengthy and complicated process with no guarantee of success in actually getting free and clear title for the buyer.  The key is working with a real estate professional who knows the parties involved in the transaction (attorneys, banks, other realtors, and misc. creditors) so that the property can be successfully acquired by the interested buyer.  Due diligence, follow up with large volumes of paperwork, and often times complex negotiations with lenders is essential for ultimate success.

If you are a potential short seller, this is especially important to keep in mind in choosing a listing agent, as NOW is the time when savvy buyers are purchasing spectacular waterfront condos in the above mentioned buildings (as well as many others).

A quick look at a few more prominent closed sales (& short sales) in some of the premier condo buildings in the South of Fifth Street area of Miami Beach:

Continuum on South Beach – South Tower #2703

Continuum South Beach Unit 2703

Beautiful unit on a high floor. Great condition! Stunning views of the Bay, Government Cut, Ocean and Downtown Miami. Several upgrades throughout, including a modern Master Bathroom.
Original Asking Price:  $2,395,000
Sold: $1,375,000  ($778/SF)
Closing Date:  12/08/08
Price Drop (original asking vs. actual sales price):  42%

Continuum on South Beach- North Tower #2301

This massive two bedroom unit is in a corner location, with walls of glass looking out towards the beach, Government Cut and Downtown Miami.

Original Asking Price:  $1,850,000
Sold: $1,535,000  ($798/SF)
Closing Date:  02/18/09
Price Drop (original asking vs. actual sales price):  17%

Portofino Tower – #PH4306

Breathtaking views of the ocean from this 43rd floor Penthouse.  South Beach, Biscayne Bay and Downtown Miami views. 2 large terraces.

Original Asking Price:  $1,995,000
Sold: $1,600,000  ($678/SF)
Closing Date:  2/18/09
Price Drop (original asking vs. actual sales price):  25%

Murano Grande – #1606

Stunning 16th floor direct-bay unit at South Beach’s Murano Grande.  A middle bedroom was removed, making this one of the largest and most-spacious 2 bedroom units in the building.

Original Asking Price:  $1,449,000
Sold: $1,320,000  ($652/SF)
Closing Date:  1/28/09
Price Drop (original asking vs. actual sales price):  9%

Bentley Bay #412

DIRECT BAY VIEWS of Star Island & DOWNTOWN Miami with extra large Balcony.

Original Asking Price:  $539,000
Sold: $325,000  ($417/SF)
Closing Date:  1/28/09
Price Drop (original asking vs. actual sales price):  40%

Statistics from: The Southeast Florida Regional (SEFR) MLS

Art Basel Miami Beach will be taking place December 4 – 7, 2008.

Art Basel Miami Beach is the most important contemporary art show in the United States, a cultural and social highlight for the Americas. It is the sister event of Switzerland’s Art Basel, the most prestigious art show worldwide for the past 39 years, Art Basel Miami Beach combines an international diversity of the world’s top Art galleries along with exhibitions, parties and crossover events featuring music, film, architecture and design. Exhibition sites are located in the South Beach Art Deco District, walking distance to the beach and most South Beach hotels.

An exclusive selection of more than 220 leading art galleries from North America, Latin America, Europe, Asia and Africa will exhibit 20th and 21st century artworks by over 2,000 artists.  Most artists will be displaying at the Miami Beach Convention Center, and also and at various galleries in Downtown Miami’s Arts District.

We have several buyers from Eastern Europe (and one from South America) that will be looking at purchasing among South Beach’s premier Condos (some of these asking prices have adjusted downward following the latest financial crisis).  I’d like to take this opportunity to highlight a few of the premier turnkey condominiums offered for sale on the South Beach market:

Portofino Tower # PH4004- 2 Stories, 4,100 S.F., 5 beds / 4 baths
300 South Pointe Drive
Miami Beach, 33139
Original Asking Price: $6,575,000
Current Asking Price: $6,200,000 (6% reduction)

Portofino Tower – Penthouse 4004 (Kitchen and Living Room)

Murano Grande #3003/4- 6,032 S.F., 5 beds / 5 baths
400 Alton Road
Miami Beach, 33139
Original Asking Price: $9,500,000
Current Asking Price: $6,900,000  (27% reduction)

Murano Grande Condo – Bathroom and Dining Area

Continuum South Beach – South Tower PH1- 3 Stories, 7,374 S.F., 5 beds / 7 baths  13’ Ceilings
100 South Pointe Drive
Miami Beach, 33139
Original Asking Price: $25,000,000
Current Asking Price: $14,950,000  (40% reduction)

Continuum South Beach – (Dining Area and Pool)

Apogee South Beach – 2001/2002-, 7,254 S.F., 7 beds / 8 baths  10’ Ceilings
800 South Pointe Drive
Miami Beach, 33139
Current Asking Price: $17,750,000

Apogee South Beach – Kitchen and View

Il Villaggio PH 6 & 7 – 2 Stories, 5,700 S.F., 3 beds / 6 baths
1455 Ocean Drive
Miami Beach, 33139
Original Asking Price: $18,500,000
Current Asking Price: $13,900,000  (25% reduction)

Il Villaggio – Den and Living room

Icon South Beach #1801- 4303 S.F., 3 beds / 5 baths
450 Alton Road
Miami Beach, 33139
Original Asking Price: $5,900,000
Current Asking Price: $3,600,000  (39% reduction)

Icon South Beach – Dining Area and Living Room

Murano at Portofino #3101 – 3,365 S.F., 3 beds / 3 baths
1000 South Pointe Drive
Miami Beach, FL 33139
Current Asking Price: $4,900,000

Murano at Portofino – View and Kitchen

Below are some highlights of closed condominium sales for the past 90 days for the more prominent South of Fifth Street buildings such as Murano at Portofino, Murano Grande, Continuum II South Beach and Continuum South Beach, Apogee Miami Beach, Portofino Tower and Icon South Beach.

A total of thirty one (31) luxury condos sold and closed during this period with an average sales price of $2,185,000. The median price per Sq.Ft. was $908, with an average marketing period of 149 days. In EVERY case, these waterfront luxury condominiums were significantly price reduced.

ARE YOU SERIOUS ABOUT SELLING? – If you own a condo in South Beach (especially South of Fifth Street), and have had trouble selling, please call us for a free market analysis. I believe in telling it “straight” to clients (or potential clients), as wishful thinking will not carry the day in this real estate environment. However, we are still seeing strong demand and interest from buyers (especially Europeans) for premier waterfront condos in the area.

Once again, the market has shown that it rewards sellers who work with experienced, knowledgeable, detail-oriented, and top producing real estate salespeople. Thanks to aggressive and creative targeted International Marketing Campaigns, we have sold ALMOST our entire Residential listing inventory from the first half of 2008.

Below are a few of the more notable condo sales that have occurred in the over the past ninety days in the South of Fifth Street District:

Apogee Miami Beach

4 beds / 3 baths 4,154 S.F.

Original List Price: $6,700,000 Sales Price: $5,500,000

142 days on Market, $1,324/S.F. Waterfront Corner Unit

Apogee Miami Beach

4 beds / 3 baths 4,154 S.F.

Original List Price: $7,900,000 Sales Price: $7,300,000

147 days on Market, $1,757/S.F. Waterfront Corner Unit

Murano Grande

3 beds / 3 baths 3,979 S.F. Home 3,979 S.F. Land

Original List Price: $4,850,000 Sales Price: $3,100,000

365+ days on Market, $779/S.F. Waterfront Corner Unit

Continuum South Beach

3 beds / 3 baths 2,954 S.F. Home 3,979 S.F. Land

Original List Price: $3,600,000 Sales Price: $3,100,000

471 days on Market, $1,049/S.F. Oceanfront Unit

Icon South Beach

3 beds / 3 baths 2,158 S.F.

Original List Price: $1,799,000 Sales Price: $1,450,000

365+ days on Market, $671/S.F. Bayfront Corner Unit

Portofino Tower

2 beds / 2 baths 2,040 S.F.

Original List Price: $1,625,000 Sales Price: $1,350,000

245 days on Market, $661/S.F. Unobstructed Views Bayfront

Murano at Portofino

2 beds / 2 baths 1,390 S.F.

Original List Price: $1,350,000 Sales Price: $1,150,000

258 days on Market, $827/S.F.

I’d like to give a quick market update as well as some commentary on the latest sales that my team and I have been involved with:

Condos

Murano Grande #1906- $1,350,000 3 beds / 3baths ($667/S.F.)

Waterfront Single Family Home

Palm Island – 298 S. Coconut Lane $3,150,000 5 beds / 4 baths ($787/S.F.)

Once again, the market has shown that it rewards sellers who price their properties correctly, and (in a bit of shameless but true self-promtion!) when the marketing is handled by an experienced, knowledgeable, detail-oriented, and top producing real estate salesperson. Thanks to an aggressive AND creative targeted Marketing Campaign (we had an offer come in from St. Petersburg, Russia). My advice to any seller today is to be working with an agent at the top of their field, and who will be a straight talker, positive but realistic, and follow-up with any and all potential buyers.

I recently took two of my more motivated & loyal buyers to see waterfront and non-waterfront homes on Miami Beach that were being unprofessionally represented. I was left standing in front of three (of six confirmed appointments) homes where the agents failed to show up. In two of these cases, the agents called me THE NEXT DAY wanting to reschedule the showings! Needless to say, all six of these properties remain unsold (and are great deals!).