Miami Beach Waterfront Homes Blog

Home buying, regardless of how intricate it can become is essentially a more up to date form of the system merchants used in the past to sell their goods: bartering. The consumer (or buyer in this case) wants to pay as little as possible and yet the seller is looking for the biggest profit possible. All this haggling would be a lot easier for both parties involved if the real estate market were in better conditions and South Florida homes were still in hot demand which, as everyone knows, isn’t quite the case.

Although one person is looking for more and the other is seeking less, there is a mutual goal: agreeing on a suitable price. While the seller has their own research to do, buyers should do a little bit of problem solving homework before putting an offer on the table.

Owning Miami Beach oceanfront condos often gives owners a sense of entitlement, especially when it comes to determining how much they can ask for it when it’s time to sell. A couple of years ago, an inflated price would be okay but it’s a different climate. If a seller’s initial asking price seems ridiculous, chances are other buyers feel the same so allow some time for the price to come down but do make sure the seller is aware of your interest. Assuming you’re using the services of a real estate agent, they can do this on your behalf and act as the intermediary once the price is reduced to something more agreeable.

The less fellow buyers involved, the better your chances of throwing out competitive numbers to achieve your ideal price. Refrain from giving the exact price you’re aiming for. Instead raise or lower the amount in order to allow yourself room to bargain without having to sacrifice too much, which simultaneously allows the seller to feel as if they’re getting something out of the deal.

If someone else has offered a price you know you can’t match, all hope is not lost. Sellers appreciate it when buyers choose to take on additional costs normally the responsibility of the seller so if you can pay for some of these, there is a very good chance a seller will accept your slightly higher proposal over someone else who offered less.

This is my first blog post of the year, so I would like to wish everyone reading this a healthy and prosperous 2008! During my first full week back to work, I’d like to take a few moments to reflect on some of the different seller scenarios that I have most recently encountered:

Scenario #1: SHOULD HAVE SOLD LAST YEAR (Late on mortgage/tax payments, cannot continue with the fixed expenses, probably purchased property after 2003). Often characterized as a short sale with sale terms controlled by the lender. However, often times, the owner still gets to pick the Realtor/brokerage firm.

It is critical to be priced correctly from the start, and that the marketing be handled by an experienced, knowledgeable, detail-oriented, and top producing real estate salesperson/team. This should be someone that will be aggressive AND creative in the marketing of the property (be it a home, condo, or land). It is crucial to be working with a company/agent at the top of their field, and who will be a straight talker, positive but realistic, and gives the seller a good feeling that they will follow up with any and all potential buyers. I have recently seen several of these properties in Miami Beach, that are being poorly marketed. The owners (and banks) do not realize what this is potentially costing them.

Scenario #2: NEED TO SELL (Possible health reasons, relocating, retiring, some financial pressure, misc. life circumstances).

It is critical to price the property correctly from the start. I am writing this on January 10, 2008, and have personally spoken to over twenty potential buyers over the past week (and made two offers thus far within 10% of the asking price). Looking at recently closed sales (within three months), properties that are priced to sell usually receive lots of activity and sometimes multiple offers. These also are properties that are on the market for no more than 45 days. Obviously, the marketing needs to be handled by an experienced, knowledgeable, detail-oriented, and top producing real estate salesperson/team. Shockingly, I’ve seen several properties in South Beach that fall under this category, that are being poorly represented (no return phone calls/emails, disconnected phone numbers, agents that seem to have other jobs and don’t really care anymore, as well as poor pictures and text descriptions).

Scenario #3: CASHING OUT (Opportunity for greater returns from owning something else, owner of many years, general desire to move on).

We are certainly not at the top of the market, however, certain properties still receive strong buyer interest. Examples are certain PH-type units with unique locations/views/floorplans, and waterfront turnkey showcase homes in unique locations with strong curb appeal). Yesterday, I had the opportunity to see a comparison of SE Florida property prices versus major European/Caribbean and South American markets. Property in the greater Miami area is still relatively inexpensive, and the weak dollar is attracting a large percentage of European (especially Russian), Canadian, and some South American buyers. I am finding particularly strong buyer interest in Miami Beach and especially South Beach. Island waterfront homes, and South of Fifth Street (South Beach) premium location condo buildings are especially sought after by European buyers.