Miami Beach Waterfront Homes 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)

I keep receiving many inquires and requests from Buyers (both from USA and International clients) about the possibility of purchasing a foreclosed, or bank owned, single family home in Miami Beach.  There continues to be a significant gap between the sought-after upper-end luxury market and the less desirable, and generally non-waterfront properties.  Most importantly, we’re seeing a significant increase in buyer activity on the market due to the unfreezing of the credit markets for qualified buyers.

To illustrate the price (and demand) gap between turnkey waterfront homes and the still hard to sell mid-to-lower range single family homes, I’d like to highlight a few recently closed sales of bank owned homes around Miami Beach. These are not short sales, only those classified as REO sales (Bank owned and approved).

North Bay Road- Bank Approved Sale

Miami Beach North Bay Road Home

Bank Owned home, located on prestigious North Bay Road with nearby mansions and waterfront estates. Corner lot surrounded by privacy hedge. Open floor plan, designer stainless steel kitchen, terrazzo, limestone floors, formal dining room, family room, breakfast room, alarm system, sprinkler system.

:  Great Location
:  Small corner lot, house needed some work due to recent neglect

Sold Price: $520,000
Original “For Sale” Price : $1,350,000 (2007)
Bedrooms: 4
Bathrooms: 3
House S.F.: 2,474
Land S.F.: 6,978
Sold Date: March 6, 2009
Original Asking vs Sold Price: 39%

Alton Road- Significantly Reduced Turnkey Waterfront Home

Alton Road Luxury Home

A 1930’s  Mediterranean large home with guest house.  Renovation was completed in 2006 with luxury touches throughout  The additional amenities of this beautiful estate include: polished  marble floors, a custom masonry  fireplace, gas appliances,movie theater out door fountains with 5 bed and 4 and 1/2 baths.
: Complete renovation & charm

: Located on busy Alton Road & limited appeal

Sold Price: $520,000
Original “For Sale” Price : $2,200,000 (2006)
Bedrooms: 5
Bathrooms: 4
House S.F.: 3,223
Land S.F.: 7,320
Sold Date: April 22, 2009
Original Asking vs Sold Price: 24%

Biscayne Point- Gated Community Land Value Teardown Sale

Foreclosure Waterfront Home

Bayfront vacant home that was sold “as is” by the lenders, gated community with wide bay views.  Minutes from the Ocean, rare Bayfront lot with 75′ of waterfront.

: Waterfront lot with Wide Bay Views, Gated Community in Miami Beach
: Complete rehab / teardown house

Sold Price: $500,000
Original “For Sale” Price : $1,200,000 (2004)
Bedrooms: 3
Bathrooms: 2
House S.F.: 1,816
Land S.F.: 7,500
Sold Date: March 12, 2009
Original Asking vs Sold Price: 42%

Finally, to illustrate the dramatic difference with turnkey waterfront homes, I’d like to highlight another recent sale on Miami Beach’s North Bay Road, where the home was on the market for just TWELVE DAYS:

North Bay Road- Wide Bay Home

Luxury North Bay Road Home

This was one of the best waterfront deals on Miami Beach.  Wide bay views with 77 FT on the water and a 254 FT deep oversized lot.  This home is sparkling clean and livable “as is”.

Sold Price: $3,200,000
Original “For Sale” Price : $3,900,000
Bedrooms: 4
Bathrooms: 5
House S.F.: 4,006
Land S.F.: 19,685
Sold Date:  March 11, 2009
Original Asking vs Sold Price: 82%

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 South Beach, 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

With the current uncertain financial market and credit crisis exerting strong downard pressure on prices in housing market, I’d like to expose some of the best condo deals in South Beach luxury waterfront condos market. Every Buyer today is looking for a “great deal”, but how do we define this in today’s real estate market? One possiblity is to roll prices back to pre-boom prices of 2003-2004. Another possibility is – not so precise formula – is to take an overall price reduction anywhere between 30%-70% off 2005/2006 prices (peak of the real estate bubble).

However, I’d like to highlight what I consider one of the better income valuations for a truly “great deal”, which involves looking at the cash flow from potential rental income. Below are a few waterfront condos I consider to be “great deals” in Miami Beach luxury condos:

Bentley Bay Condo Unit-2211

The Bentley Bay #2211
2/2- 1,250 S.F.- Wrap Around Terrace, Direct Bay Views, with potential monthly rental income ranging from $3K – $5K/month.   Foreclosure Sale Asking Price: $459,000 ($367/SF)

Icon South Beach Condo Unit 1804

Icon South Beach #1804
2/2- 1,536 S.F.- Large Terrace, Intracoastal & Bay Views, with potential monthly rental income ranging from $4K – $6K/month.   Foreclosure Sale Asking Price: $829,000 ($539/SF)

Murano Grande Condo Unit 1809

Murano Grande #1809
2/2- 1,437 S.F.- Large Terrace, Open Views of South Beach & Ocean, with potential monthly rental income ranging from $4K – $6K/month.   Foreclosure Sale Asking Price: $740,000 ($514/SF)

Waverly South Beach condo unit # 804 - SOLD

Waverly South Beach #804
2/2- 1,084 S.F.- Spectacular Intracoastal & Bay Views, with potential monthly rental income ranging from $2,500 – $3,500/month.   Foreclosure Sale Asking Price: $364,900 and Sold/Closed for $330,000 ($304/SF)

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.

Some useful tips to help you sell your Miami Beach home or condo.

What Works:

• Be willing to contribute to Buyer’s Closing Costs
• Consider Seller Financing
• Offer to pay for Buyer’s Mortgage Points
• Get a Home Warranty

Gimmicks that generally DO NOT work:

• Free Vacations
• Free TV’s and cars
• Non-related seller contributions

Click on the image below to watch the video

With a PROVEN track record of Cancelling debts, we can help you sell your Miami Beach home or condo.

Call (305) 673-3809 or email amkeer@fir.com for more info.