Edition #5 of the 2010 Sunny Isles Condo Index

I’ll be reviewing & comparing the luxury oceanfront market from the 1Q 2009 Sunny Isles Condo Index to today’s updated 1Q 2010 Sunny Isles Condo Index including premier oceanfront towers such as Turnberry Ocean Colony, Acqualina, JADE Beach, Trump Palace, Trump Royale, Ocean 4, Sayan, Ocean One, Two & Three, Pinnacle & Millennium and now including JADE Ocean. I’ve excluded condo hotel properties from this study including the Trump International Beach Resort, Le Meridian (now known as Merenas Resort), Ocean Point and Sole.

Sunny Isles Beach (1Q 2010) Condo Index…

As of January 25th, we are noting 1,055 total condos for sale in Sunny Isles Beach down 17% from July 2009 and 28% from this time last year. So far, there have been 27 total closed sales (ALL figures are derived from the Multiple Listing Service MLS on JAN 25th, 2010) this year. What will be analyzed in this post are statistics & trends for the most desirable luxury towers along the coast of Sunny Isles Beach.

Percentage Available Inventory, Average List Price & Average Price Per Square Foot for leading luxury condo towers currently listed & Active on the MLS

• Acqualina- 17875 Collins Avenue | 17 of 247 or 7%| Ave List Price $2.186M | Ave PPSF $775
• JADE Beach (99% Closed as per County records) - 17001 Collins Avenue | 41 of 248 or 17%| Ave List Price $1.439M | Ave PPSF $642
• JADE Ocean- (80 rec. deeds per County records) – 17121 Collins Avenue | 4 of 250 or 2% | Ave List Price $2.107M | Ave PPSF $765
• Turnberry Ocean Colony North Tower – 16051 Collins Avenue | 12 of 130 or 9%| Ave List Price $2.598M | Ave PPSF $799
• Turnberry Ocean Colony South Tower – 16047 Collins Avenue | 17 of 130 or 13%| Ave List Price $2.274M | Ave PPSF $747
• Trump Palace – 18101 Collins Avenue | 29 of 275 or 11%| Ave List Price $1.329M | Ave PPSF $629
• Trump Royale – 18201 Collins Avenue | 19 of 384 or 5%| Ave list Price $1.124M | Ave PPSF $565
• Trump Tower I- 16001 Collins Avenue | 29 of 271 or 11%| Ave List Price $1.135M | Ave PPSF $487
• Trump Tower II – 15901 Collins Avenue | 9 of 271 w/Developer units remaining | Ave List Price $927k | Ave PPSF $433
• Trump Tower III – 15850 Collins Avenue | No MLS records
• Sayan- 16275 Collins Avenue | 22 of 88 or 25%| Ave List Price $1.211M | Ave PPSF $572
• Ocean Four – 17201 Collins Avenue | 40 of 281 or 14%| Ave List Price $997k | Ave PPSF $508
• Ocean Three – 18911 Collins Avenue | 28 of 215 or 13%| Ave List Price $1.142M | Ave PPSF $459
• Ocean Two – 19111 Collins Avenue | 19 of 254 or 7%| Ave List Price $1.096M | Ave PPSF $479
• Ocean One – 19333 Collins Avenue | 8 of 241 or 3%| Ave List Price $728K | Ave PPSF $330
• Millennium – 18671 Collins Avenue | 6 of 120 or 5%| Ave List Price $1.015M | Ave PPSF $446
• Pinnacle – 17555 Collins Avenue | 45 of 244 or 18%| Ave List Price $960k | Ave PPSF $494
• La Perla- 16699 Collins Avenue | 39 of 326 or 12%| Ave List Price $654k| Ave PPSF $430

Ave. Price Per Square Foot on Condos SOLD within the last 6 months, Sale Price to List and # Days On Market

• Acqualina- 17875 Collins Avenue | 4 Closed Sales at $673 PSF (7% increase in PPSF since 1Q 2009) | 88% SP/LP | 247  DOM
• JADE Beach- 17001 Collins Avenue | 2 Closed Sales at $427 PSF | 89% SP/LP | 89 DOM
• JADE Ocean- 17121 Collins Avenue | Released (TCO) June 2009 with No Closed MLS resales
• Turnberry Ocean Colony North Tower – 16051 Collins Avenue | 8 Closed Sales at $679 PSF (22% increase in PPSF since 1Q 2009) | 86% SP/LP | 143 DOM
• Turnberry Ocean Colony South Tower – 16047 Collins Avenue | 7 Closed Sales at $499 PSF (26% decrease in PPSF since 1Q 2009) | 90% SP/LP | 195  DOM
• Trump Palace- 18101 Collins Avenue | 3 Closed Sales at $450 PSF (19% decrease in PPSF since 1Q 2009)| 86% SP/LP | 162 DOM
• Trump Royale – 18201 Collins Avenue | 3 Closed Sales at $451 PSF | 95% SP/LP | 111 DOM
• Trump Tower I- 16001 Collins Avenue | 2 Closed Sales at $386 PSF | 78% SP/LP | 493 DOM
• Trump Tower II – 15901 Collins Avenue | No Closed MLS Sales
• Trump Tower III – 15850 Collins Avenue | No Closed MLS Sales
• Sayan- 16275 Collins Avenue | 0 Closed Sale at $N/A | only 1 resale last year at $308 PSF | 86% SP/LP | 84 DOM
• Ocean Four – 17201 Collins Avenue | 15 Closed Sales at $367 PSF (5% decrease in PPSF since 1Q 2009) | 94% SP/LP | 228 DOM
• Ocean Three – 18911 Collins Avenue | 2 Closed Sales at $353 PSF | 94% SP/LP | 316 DOM
• Ocean Two – 19111 Collins Avenue | 7 Closed Sales at $384 PSF | 91% SP/LP | 175 DOM
• Ocean One – 19333 Collins Avenue | 3 Closed Sales at $291 PSF | 86% SP/LP | 288 DOM
• Millennium – 18671 Collins Avenue | 3 Closed Sales at $336 PSF | 81% SP/LP | 101 DOM
• Pinnacle – 17555 Collins Avenue | 6 Closed Sales at $351 PSF | 97% SP/LP | 234 DOM
• La Perla- 16699 Collins Avenue | 15 Closed Sales at $354 PSF (2% decrease in PPSF since 1Q 2009) | 91% SP/LP | 127 DOM

Sunny Isles Beach Condo Index Summary

Sunny Isles Beach inventory is decreasing month over month while property values have also dropped considerably causing more sales to occur. The majority of oceanfront towers now have healthy inventory figures as shown above with anything less 15%. Each building tells a different story and the bottom line is you cannot go wrong in 2010 with oceanfront real estate as long as you & the family will use it and enjoy it for at least the next 2 years.

Sellers, are you attempting to sell with little communication on values, marketing & progress…? Call me for a personalized market report for your condo and let’s get started today. Buyer’s ready for a great buy? Call or email for the very best deals along Sunny Isles Beach, Bal Harbour & South Beach. The buyer advantage is still selection & leverage but we are again seeing multiple cash offers driving up values again on the lower end residential market. As inventory decreases I believe prices will start to show favor for stabilization if it hasn’t already.. If you’d like to receive local Miami Beach FL real estate news via blog postings & updates, you can easily be notified by RSS feed (see upper right column) or by email above each time a new posting occurs. Visit JADECondosSunnyIsles.com website & Blog relaying great information on JADE Beach & JADE Ocean and the brand new TurnberryOceanColonySunnyIsles.com website & blog! The truth is in the numbers 1.888.383.7326 and I welcome your knowledge, comments & feedback here. South Beach to Sunny Isles Real Estate Sales & Marketing.

Significant RESPA changes coming

The new RESPA (Real Estate Settlement Procedures Act) regulations that were published on November 17, 2008, are going into effect January 1, 2010.  These changes were primarily enacted to protect borrowers against excessive loan fee charges, and to make it easier for borrowers to understand their key loan terms and to determine the exact charges they are responsible for paying at closing. Such terms include:

• Loan term.
• Interest rate and whether it is fixed or variable.
• Whether there is a pre-payment penalty should the borrower choose to refinance at a later date.
• If there is a balloon payment.
• Total closing costs.

Good Faith Estimate (GFE) and HUD-1 Regulations

HUD, the primary agency for enforcing RESPA laws, is requiring that loan originators (lenders and mortgage brokers) must provide borrowers with a standard Good Faith Estimate that specifically discloses all their key loan terms and closing costs. Closing agents (including title companies) must provide borrowers with the revised HUD-1 settlement statement. It will now be easier for borrowers to compare their GFE with their HUD-1 Settlement Statement because each designated line on the final HUD-1 will make a reference to the appropriate line from their GFE.

Borrowers can shop around and compare loan products quicker and easier as well. HUD estimates that consumers will also save as much as $700.00 at closing under the new regulations as a result of the elimination of many junk fees that lenders and closing agents were charging borrowers such as fees for courier, wiring, notary, photocopying, postage, overnight delivery, document preparation and document review.

The new regulations affect mortgage loan transactions and not cash transaction. However, cash buyers are also provided with a HUD-1 closing statement a few days before closing by the closing agent to determine their closing fees. Cash buyers should request a closing statement if it is not provided. These new regulations will help prevent lender fraud and make it easier for borrowers to shop for competitive loan products. For more information on the new regulations, visit the HUD website at http://www.hud.gov/offices/hsg/ramh/res/resparulefaqs.pdf.

A Few More Reasons

Just a few more reasons why buyers should be taking advantage of the many loan products available today to help them with their purchase of Miami Beach real estate, South Beach real estate, Bal Harbour real estate, Sunny Isles Beach real estate, or Golden Beach real estate. These loan rates and affordable luxury condos & homes won’t be around for ever so take advantage now!

Miami Beach Treasure Dives

Here you will find beautiful artificial reefs, natural rocks and coral reefs, which offer scuba divers miles of great diving areas to explore.  The artificial reefs consist of planned wrecks, where you will find an abundance of all types of marine life close to shore for scuba divers and snorkels to venture in.  With over 75 diveable wrecks, Miami Beach is truly is South Florida’s treasure and a scuba divers paradise.

Here are a just a few places down under you will want to check out:

The Almirante- Known as the Queen of Miami. A 200 foot steel ship sunk in April 1975 off Elliott Key

Army Tanks – Two 40-ton Vietnam era combat army tanks sunk August, 1994 in about 50′ of water. Great place to find fish, lobster and moray eels.

Belcher Barge – A 185′ steel barge sunk in November 1985 in the Key Biscayne area. You can explore the inside of the wreck as well. To the South, about 100 feet you will find the Belzona II. South and then east of the Belzona II is the Belzona I and III.

Biscayne Wreck – A 120 foot freighter used to haul bananas from Central America.  Located in Key Biscayne Artificial Reef in about 55 feet of water. Expect to see all sorts of aquatic delights and great for night diving.

Blue Fire –  A 175’ wreck sunk in 1983. You will find large fish such as jacks, snapper, jewfish, barracuda and cobia.

Darrel’s Ledge – Two section reef with beautiful fish to view.

The Deep Freeze- A 210′ freighter sunk in October 1976 and is located in 135′ of water. Recommended for experienced divers and spear fishermen.

Emerald Reef – Miami’s largest natural reef. Good place to find lobster.  Speaking of which Lobster season is in full gear and runs through March 2010.

Of course, if you want to venture down to the Florida Keys, Key Largo’s John Pennekamp Marine Sanctuary is the place for diving and snorkeling. Its close proximity to the Miami area make it a great day trip.

New ways are being created to impress tourists and locals with the opening of the Sunny Isles  Beach Visitors Center located in the Sunny Isles Beach Government Center at 18070 Collins Avenue. Staff members will be there to answer questions on what to do, where to eat, shop & party while visiting this popular tourist town. Maps & brochures of all Miami attractions are free to the public with expert local assistance on the ideal hotel or restaurant to suit your needs. Sunny Isles Beach now has over 10 hotels and 20+ restaurants with a world cuisine available. Information is also provided on the local shuttle bus which will span Collins Avenue offering the public free transportation. There are plans in the works which will soon be running a free shuttle into South Beach for additional Miami Beach fun.

The visitors center will also be selling Sunny Isles Beach merchandise including T-shirts, travel clocks, beach towels, and posters of this great city. For rainy days stop in for a cool Sunny Isles Beach umbrella! The visitors center doubles as a welcome center for new residents and a mecca for history fans wanting to learn all they can about Sunny Isles Beach. This new visitors center is open Monday through Saturday from 10-4pm and located on the west side of Collins & 180th Street. For information, call 305.792.1952 or stop in and say hello!

“In partnership with the Greater Miami Convention and Visitors Bureau, the visitor center also sells The Go Miami Card — an all-attractions pass that allows entry into some of Miami’s touristy spots like the Metro Zoo, Miami Seaquarium, Vizcaya and Jungle Island.” - artcle via MiamiHerald

Bal Harbour residents have long advocated for improvements to their beach, which has shrunk to small dunes in some places thanks to natural erosion and several active hurricane seasons.

Bal Harbour real estate is placing a band-aid on its beaches which have seen major erosion in the past few years. Currently the replenishment project is underway with the city dumping money ($8.2 million!) and truck loads of sand to assist prior to the hurricane season in an effort to remedy the problem and prepare for any additional erosion. Congress woman Ileana Ros-Lehtinen has been working diligently with the US Army Corps of Engineers to allow foreign sand to be brought in thus speeding up the re-nourishing process. Last week, one of many Caterpillar trucks hauling beach quality sand from Orlando to Miami Dade began dumping it’s cargo on Bal Harbour’s beach. The sand is being dumped to add height and width to beaches in Bal Harbour, Sunny Isles Beach and Miami Beach. State and county funds are being used for the re-nourishment project, which will cost an estimated $10 million and expected to last six more weeks. The beaches are open to the public except for the immediate areas where dumping is taking place.

Are you a resident concerned on the erosion of Bal Harbour? I’ve noticed Bal Harbour beaches have it the worst out of all Miami Dade Beaches with very little room for additional erosion as you can see in the picture above. An additional concern is seeking quality sand and where this source may be found. Let the readers hear your thoughts and suggestions on the erosion remedy.. Inquiring minds would like to know!

In researching Miami Beach condo inventory Q2 2009

including the Dade County entities of South Beach, Miami Beach, North Bay Village, Surfside, Bal Harbour and Sunny Isles Beach we have an inventory on May 11th 2009 at 5,677 (6,073 from May REO analysis and down 7%) total condos.

Out of those, how many would you guess are REO (Real Estate ‘Bank’ Owned)?….  only 80 (Bank Owned Down 27% from March 109 selection)  along the Dade County beaches or 1%. How many are short sales…? Miami Dade “beaches” short sales reflect 1,068 (Down 6% from May’s short sale selection of 1,131) or 19% of total condo inventory. These figures are derived from the South East Florida MLS (Multiple Listing Service).

MLS STATS show the Average REO (Real Estate Owned) Miami Beach List price is at $287,608 (Down 2% from March figures averaging $294,389) ~ Ave. list price per square foot cost at $260PSF (Up 13% over March $226PSF “asking“ prices) and average square footage at 1,069 SF.

These are the Best 20 MIAMI BEACH BANK OWNED (REO) DEALS.

I assure you I know local inventory and relay the very best… Miami Beach, Sunny Isles condo deals here {REO Miami Beach Bank Owned Condos Here} Click on any photo to enlarge. Feel free to post a comment with insights or questions pertaining… You will see ‘Pending’ in the upper left corner as these desirable condos soon go under contract fast! First Time Home Buyers are taking advantage of the new affordable selection plus $8,000 tax credit while Miami Beach Investors Note 2% to 5% ROI when owned outright. The truth is in the numbers, 1.888.383.7326.

You go Kris!

This question was asked on Trulia real estate search here and answered to my best ability below.

700 credit score but thinking of foreclosure and wondering how long will it take for my credit to recover?

Q: My 1/1,5 condo in NMB Fl was purchased for $137K in 2006 BUT the complex now has units selling for $17K-$24K. We also have about 25% units in foreclsoure and almost 65% of the owners are not paying HOA fees. I am thinking of sending the keys to the bank because the builiding will probably be shut down by the city because the HOA cant pay its monthly bills and it was already sitting on $180K in unpaid HOA fees at the start of 2009 . I hate to see my credit go in the toilet but I cant wrap my brain around holding onto a property that has decreased 85% in value in the last year. I am a responsible person and paying all other bills on time. I was never late with my mortgage payment in the 3 years since I purchased. The bank wont consider lowering the principle which in my opinion would be the TRUE way to help in part save the economy. But that is just my 2 cents which is now valued at -$5 due to depreciation. Thanks for any advice!

A: Whew, that’s a tough call. Where’s the Suze Orman of real estate when a good question like this one pops up!? It seems as though the association/condo board have failed at going after delinquent fees needed to maintain the building. Delinquent payments are very common in all condo buildings yet at this high level of 65%, it a surprise the water is still on. The new Fannie Mae guidelines from January 2009 would not allow financing so it would have to be geared to cash investors yet no investor would take on the liability of covering everyone elses slack with inevitable assessments on the horizon.

A Deed in Lieu of foreclosure may be the most viable option although speak to your bank(s) in all honesty on the current circumstances and be sure to negotiate DOWN the deficiency lien. Do not take no for an answer and keep climbing the peon ladder until the manager can help. I say this only because I’m afraid a short sale just won’t fly from lack of a ready willing & able buyer. IF you could find a buyer, then please jump on the short sale option making sure there are no deficiency liens or 1099′s if it’s an investment property. I assume this is your “home.” I also heard an interesting concept yesterday where it MAY be that FICO (credit) scores will be weighted in favor of owners such as yourself who are forced into foreclosure or hand over their properties between the years of let’s say 2005-2009. Meaning less likely to greatly “break” the FICO instead weighted and factored in favor on the years of trouble down the road when you feel it’s time to borrow again. Just an idea that may make sense in the future because of the current circumstances (not a fact but likely).

It’s been a tough battle over the last 4 years for a large majority of owners in similar circumstances as property values tumbled. This building WILL eventually turn around after a financial correction and an efficient condo board is established. Miami Dade residential sales are up 67% over this time last year and 20% over March! Stay positive & strong no matter how bad it gets and remember this simple (& odd) advice from my father when I’ve have hard problems to swallow… “they can’t kill you!”

I am open to more ideas & opinions and my answers can be wrong as a fallible sales associate.. This is only opinions and advice from today’s knowledge/understanding and I welcome any further insights I may be unaware of.

flickr photo by zzzack

First time homebuyers have exactly 273 (Dec 1st) days to buy a home if they want to pocket $8,000 tax free. It’s not long. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. Every homebuyer has unique circumstances, however, and specific questions. The National Association of Home Builders (NAHB) has launched a consumer Web site with detailed information and an extensive list of common questions.

This homebuyer resource is found at: www.federalhousingtaxcredit.com

Although Florida does not contain naturally occurring asbestos, the substance still made its way to a large portion of the state. Located in the southern tip of Florida, Miami is home to a thriving financial and entertainment industry. Home to Kennedy Space Center and many shipyards such as the Port of Miami, asbestos was a major form of insulation and piping because of his heat, sound and flame resistant qualities. Shipyard workers, electricians and mechanics all have been likely to be exposed to asbestos.

Potential Miami Beach home buyers or those seeking to remodel older homes are in danger of asbestos exposure because many structures still may contain the toxic substance. There are now many healthy alternatives that completely replace the need for asbestos.

Although the non-disturbance of asbestos materials is not dangerous, the inhalation of airborne asbestos fibers can cause a rare lung-ailment known as malignant mesothelioma. This form of asbestos cancer is one of the most difficult diseases to diagnose due to a latency period which lasts anywhere from 20 to 50 years. Mesothelioma treatment varies, depending on the age of diagnosis and other individual health factors. If you have worked or have been exposed to asbestos, you should seek a medical checkup immediately. Manufacturers of asbestos knew of its harmful components, but continued shipping the product anyways.

It is recommended for home owners or remodelers to hire professional inspectors or abatement contractors who can determine the legitimacy of danger. The Florida Department of Air Resource Management administers an asbestos removal program in order to prevent the release of airborne asbestos fibers in places of work, public facilities and homes. A Daytona Beach Real Estate company reported that many citizens were affected as a result of the release of toxins and spills from asbestos damage. In November 2007, plans to implode the North Miami’s old Sheraton Bal Harbor Hotel were delayed as many in the community feared the demolition would send toxic asbestos dust into the surrounding area. The removal must be completed by professional abatement contractors who are trained in handling toxic materials.

Once the removal process is complete, green alternatives such as cotton fiber, cellulose and lcynene should be considered as friendly replacements to asbestos. These recycled building materials will lower your carbon footprint and produce a healthy lifestyle. These materials can also reduce energy costs in the home. According to the United States Environmental Program, the use of cotton fiber can lower annual costs up to 25 percent annually.

This article was contributed by jesse@asbestos.com at the Mesothelioma Cancer Center and I welcome any additional contributors with relevant material who are always welcome to contact me. Call or email for the very best deals along Sunny Isles Beach, Bal Harbour & South Beach. If you’d like to receive local Miami Beach FL real estate news via blog postings & updates, you can easily be notified by RSS feed (see upper right column) or by email above every time a new posting occurs. Visit JADECondosSunnyIsles.com website & Blog relaying all new information for JADE Beach & JADE Ocean! Have a great week and call any time toll free 1.888.383.7326 or view new condos here. South Beach to Sunny Isles Real Estate Sales & Marketing.

JULY 2007

JULY 2008

AUGUST 2007

Let us know what you think?!?! South Beach to Sunny Isles Real Estate Consultant, Micro Economist. If you’re thinking of placing your luxury condo residence on the market, contact me for a marketing overview and pricing band analysis to determine the proper selling price and get started with marketing. If you’d like to receive the latest local real estate news via blog postings & updates, you can easily be notified by RSS feed (see upper left column) or by email above every time a new posting occurs. The new JADE Condos Sunny Isles.com is now available! Have a great week and call any time toll free 1.888.383.7326 or view new Miami Beach condos here.

CLHMS & Million Dollar Guild

News Release

FOR IMMEDIATE RELEASE

Local Real Estate Professional Recognized for Million-Dollar Successes Ashton Coleman Earns Membership in Prestigious Million Dollar Guild

(Miami Beach FL, December 1^st) R. Ashton Coleman, of Keller Williams Miami Beach, has been recognized by the prestigious Institute for Luxury Home Marketing for his recent performance in the million-dollar and above luxury home market within Sunny Isles Beach.

“Real Estate professionals who have earned admittance to The Institute’s Million Dollar Guild not only have specific upper-tier market knowledge, but they also understand the unique needs of affluent buyers and sellers and recognize the importance of being discreet,” said Institute President Laurie Moore-Moore. “Whether you’re buying or selling a multi-million dollar property, you can depend upon The Institute’s Million Dollar Guild members to have the competencies necessary to help you meet your objectives.”

“To have this recognition of my accomplishments in serving Sunny Isles Beach is an honor,” said Coleman. “It has strengthened my commitment to the community and its residents.”

Members of the Million Dollar Guild are Certified Luxury Home Marketing Specialists (CLHMS) who have documented their success in assisting affluent buyers and sellers with million-dollar properties. The recognition is awarded by the Institute for Luxury Home Marketing which trains real estate agents in the luxury home market and awards international designations to those who meet stringent performance standards.

Coleman has been in the Miami Beach FL real estate market since 2002 and specializes in the luxury oceanfront real estate market. “I’ve created a very effective global marketing platform through my network affiliations, websites and micro economic analysis reports via blogging ensuring proper real estate exposure with solid results.”

About The Institute for Luxury Home Marketing

The Institute for Luxury Home Marketing exists to help real estate professionals around the world provide high quality service to buyers and sellers of luxury properties. Institute members have completed special training to build expertise in the marketing of upscale homes and estates and those who meet performance standards may earn the prestigious Certified Luxury Home Marketing Specialist designation. Information and an international membership list can be found at www.CLHMS.org. Members are also listed on the Wall Street Journal’s RealEstateJournal.com website.

Contact: Ashton Coleman | Real Estate Sales Consultant | Keller Williams Miami Beach | MiamiDreamRealty.com | Telephone: 888.383.7326 | Direct: 305.978.7704 | Fax: 866.427.4224 | Email: Ashton@MiamiDreamRealty.com

Sunny Isles Oceanfront

“I don’t want to give it away,” is occasionally the response heard when honest property values seem far too low from the seller’s perspective. When selling your Miami Beach Condo or Home, if you interview 3 sales associates, there’s always 1 who doesn’t know the market or didn’t do their homework or both. These associate will spend countless hours of wasted time (yours & theirs) relaying smoke & mirrors on something overpriced and not even in the playing field.

What’s it take in today’s Miami Beach buyer’s market? The right price… We currently have a pricing WAR and a beauty pageant all rolled into one. That’s right a WAR to sell. It’s you against the bank owned steals and or the motivated who must sell today with an average 36 months of inventory! When the market was geared for seller’s in 2002, 2003, 2004 & 2005 it was common to base the asking price on what recently sold with an increased value from the previous sale price. For instance, if your neighbors Miami Beach Condo sold for $500K, then yours was worth $515K right!? How easy that was and it sold fast! We were holding 20 to 30%+ as strong appreciation each year. Not anymore as the market has now depreciated 35% along the Miami Dade Beaches since the peak in 2005; and so now when the current neighbors property has just sold for $500K it’s a hard pill to swallow when yours might only be worth $485K. So what’s the right price…

So how about pricing it at $550K and waiting for an offer? Well this is still a frequent “old school” strategy used by many sellers and not very effective in a strong buyer’s market. You can have your property on the market, yet not in the market and that’s where a lot of disgruntled seller’s are sitting and or chasing property values (Caveat: I AM GUILTY of working on overpriced listings with the traditional pricing approach). It’s the “20 zone or 1%ile” where you better be with your pricing and with so much inventory, today’s savvy buyer’s don’t care to see overpriced (they’re abundant) Miami Beach condos. They are seeing the good Miami Beach Condo deals and making cash offers.

BUYERS be informed that the Miami Beaches condo market average Sale to List Price Ratio is at 90% of list… and ”Steals” do not win the race with low ball offers. They just don’t. Reviewing many Miami Beach FL condo “deals” I’ve seen Sale to List at a very rare 25% of list yet with a “steal,” to play the game it’s 15% off list max and there is probably another superior cash offer just around the corner. YES, the Investors are again actively pursuing & acquiring Miami Beach Property Deals & Steals. I just noted a loft at Bay View Lofts which is now under contract around $250K and was valued by Dade County 2008 at $616K ie) “steal!!” The REO asking price was slowly reduced from $367K to $279K and it’s an obvious no brainer Miami Beach “steal.” Rental Income actually hits the investment mark at attractive numbers (approximately $2,100) monthly. PS. Purchased in OCT2006 at $705K, YES!

Sunny Isles Beach Pier

So what is this post about already? It’s about the most effective, tried & true strategy to show you results and it’s The “Traffic” Approach. Take notes as you simply price it where the market direction is headed and of course in a superior position with active competition. It’s that easy and the goal is setting the initial real estate buzz , getting ample foot “traffic” within the first 2 weeks and ultimately, multiple offers. Multiple Offers!!?? In this market…? YES. You price it right the first day and not only is the sale fast (see STATS below) & stress free but there are likely to be multiple cash offers with no conditions and smooth sailing. I just sold a “deal” at Barbizon Beach Club (530 Ocean Drive) within 2 weeks from start to finish. Did you give it away? NO, but it was priced “in the market” and the cash offer came in within 4 days and sold at 14% of list (SP/LP Ratio). BAM! Happy Seller with $100K as profit (before Uncle Sam’s 15% ). Today’s vultures know values, they are watching this Miami Beach FL real estate market closely and if the price is right, make offers. Job done right and it’s all about the price with condition in second.

SELLERS, Quit chasing the market down like a slinky down the stairs! Here are the interesting facts to let marinate… In looking at MLS closed sales from the last 90 days, (Criteria: Collins Avenue, Sunny Isles to South Beach, Oceanfront) we see 120 sales occurring. Out of these 120 sales there were 31 which sold in less than 60 days with an average Sale to List Price Ratio at 91.89% (Averaged 29 Days On Market). Out of those 31, only 3 had price reductions! Meaning they were priced to sell and sold fast. This doesn’t mean they were given away but simply met the market value for the property. Here’s the flip side to these STATS, there were 12 that sold after being on the market over 1 year with an average Sale to List Price Ratio at 80% (Averaged 487 Days On Market)!

Nobody makes it as easy as the R.E. Zebra!

I assure you you are not dealing with a rookie here but a Miami Beach Micro Real Estate Economist of Choice. Quick playing games with your money and carrying these hefty monthly expenses. It doesn’t add up to “test” your values with smoke & mirrors! However, I welcome any feedback as long as it’s constructive and related. Have a different perspective or want to add to the message… Please, you are invited to comment!

Thinking of selling and have equity? Let’s go before capital gains tax is doubled increased next year. Today is the time & there is no better time than today! Warren Buffet said this… “Be scared when everyone is greedy and be brave when everyone is scared” Thinking of Buying and have cash? I’ll be creating a new “30 Best” Page soon where I will showcase the best 30 condos I’ve studied and are positioned to sell within the first few months (Market Average DOM =130). If you’d like to receive the latest local real estate news via blog postings & updates, you can easily be notified by RSS feed (see upper left column) or by email above every time a new posting occurs. Have a great week and call any time toll free 1.888.383.7326 or view new condos here.

So when is our Miami Beach Real Estate Market going to recover? Everyone wants to know and no one has a clear answer. Lawrence Yun, the chief economist for the National Assocaition of Realtors (NAR), expects a soft first half of 2008 with notable improvement in the second half of this year.

Evening Sunset in North Bay Village

Then the U.S. Treasury Secretary Henry M. Paulson Jr. notes in a recent speech that most forecasters expect a prolonged period of adjustment in housing. These two opinions from respected economists illustrate the differences of opinion when some tell us the recovery and rebound is right around the corner while others say years just to get started again. “Experts” love to make predictions on the US housing markets and when home prices will stabilize & recover but even top forecasters and analysts disagree. The United States housing market is such a large scale to encompass a wide variety of trends in different locations and different time lines. What is noted in this Miami Beach real estate blog is different markets behaving in different ways even when these expert forecasters predictions do become reality. The disconnection of broad forecasts and small scale “local markets” present a troublesome analysis for buyer’s and sellers attempting to decipher what they read & hear in our trusted media sources. When major financial decisions are required, decisions must be made on facts instead of fiction. At the end of the day, you must make your own best judgement for yourself and family.

Rely on current local data from a local area expert.The media uses puffery to make headlines as negativity sells and people feed off the media. What percentage of media news is positive? Negativity sells for the most part. European countries are in some cases now required to report 50 percent positive news! READ THIS. Let me not get off the subject at hand which is local real estate market conditions in Miami Beach. Local data is much more meaningful when accurate and current. Combine local data with information on the national trends to make your own conclusions. Investors use the most precise data to realize market trends and values. They acquire data and make sound decisions based on careful analysis. A little bold luck is always helpful and I’m happy to hear when sellers tell me they sold there Miami home or condo 4Q 2005 just prior to the correction.

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Sunny Isles Beach Sunset

Thank you to my friends & readers who have surpassed 10,000 visitors! Amendment 1 is of interest and I’d like you to be educated on what benefits may apply when buying and selling Miami Beach real estate. Amendment 1 was passed by Florida voters about 6 months ago which assists seller’s in today’s real estate market by releasing the bounds & chains of adjusting property taxes when trading up (or down). By loosening tax related constraints, buyer’s and seller’s who stood to pay substantially more taxes when property changed hands. Sellers who enjoyed 3 percent property assessment caps and $25,000 homestead exemptions were finding themselves paying a higher rates on any new home they purchased, while buyers were shocked over their Truth In Millage notices which informed them of new assessed values from higher sales prices and higher taxes based on these new assessments.

Providing relief on both sides, state legislators put Amendment 1 into effect in January08. Also known as “Save Our Homes Portability,” this constitutional amendment was aggressively supported by our very own Governor Charley Crist and the Florida Association of Realtors. The new law allows homeowners to take or ”port” their property tax cap with them when they move, while also doubling the previous exemption for most homestead properties to $50,000 (from $25,000). Amendment 1 changes the previous Save Or Homes property assessment cap by allowing the difference between the market and just value assessments to be transferred to new homesteads. (continue reading…)

Can you smell a conflict of Interest? The S&P Case Shiller Home Price Index is the benchmark the financial press uses in telling the people how much doom & gloom there is with the housing market. In 2007, nationwide home prices went down for the first time in decades (Miami was one of the first in 2005), with OFHEO (Office of the Federal Housing Enterprise Oversight) telling us 0.3 percent, NAR telling us 1.4 percent, Realogy 1 percent and Case Shiller… 8.9%! The Case Shiller index’s findings are notoriously softer than the indexes used by other major indexes. WHY? Yale Economist Robert Shiller, cofounder of the index is great at scaring home buyers with predictions and proclamations that home prices will fall further than the 30 percent drop in the historical depression of the 1930′s as he told the Associated Press in April. Well the media as well as securities investors and analysts LOVE the Case Shiller Index and call his gauge “the best for real estate values”. One reason of it’s fame is it’s Wall Street seal of approval. It was launched to provide information to hedge funds. Since reporters work on “fluff” they typically lean towards the Shiller Index to back their reports.

Created by Shiller and Karl Case, the index is licensed exclusively to Macromarkets LLC for “developing, structuring and trading financial instruments.” see Macromarkets LLC. Shiller is a founder and chief economist of Macromarkets.  Among Macromarkets’ products is the Housing Futures and Options index, which forms the basis for “directly investing in and hedging US housing” on the Chicago Mercantile Exchange, where futures and options on the index are traded.

“Every time a CME hedge is made, revenue flows to Macromarkets,” says NAR’s chief economist Lawrence Yun. “People would hedge only if they believe price movements will be volatile”

So is the Case Shiller Index biased towards the negative? Case Shiller might be praised by the financial press, while NAR is known for relaying a positive outlook, but all in all, OFHEO and NAR don’t have relationships with hedge funds on the side. Oh btw, if you haven’t subscribed to this blog yet, do it now! If you’d like new blog updates once available, you can be notified by email or by RSS feed (see upper left column) every time a new posting occurs. 1.888.38.DREAM

A recent survey and a rate increase could mean more competition for homes

Recent indication is that first time home buyers are getting tired of sitting on the sidelines. According to a recent online poll taken by the National Apartment Association, 17 percent of renters plan to make the jump to home ownership in the next year; 41 percent of the 2,041 respondents planned to be home owners within two years. Only 31 percent planned to still be paying rent five years from now.

Another factor that could very soon contribute to an increase in home buying could be rising mortgage costs. Fixed-rate mortgage rates rose to 6.32 percent, the highest it has been since October. After months of aggressively dropping interest rates, many lenders are worried that the Fed will be forced to raise rates back up. As interest rates rise, so do mortgage rates. According to a press release on freddiemac.com, Frank Nothaft, Freddie Mac vice president and chief economist said that, “Mortgage rates jumped this week after a number of Federal Reserve officials, most notably Chairman [Ben] Bernanke and Vice Chair [Donald] Kohn, expressed concern over a threat of inflation.” We may very well be seeing the beginning of the end of the super-low mortgage and potential buyers may realize that with rising rates, now may be the time to jump in. Nothaft added, “Moreover, pending home sales for April unexpectedly rose by 6.3% and mortgage applications for home purchases … were also up last week.” If you’d like new blog updates once available, you can be notified by email (automatic updates sent to your inbox) or by RSS feed (see upper left column) each time a new posting occurs. 1.888.38.DREAM

In reviewing an excellent condo hotel deal of Sunny Isles real estate (Click Here for Property) with a customer, I decided to relay the answer here on the MiamiBeachRealEstateBlog.us…

The maximum residency in a condo hotel (zoning) is 6 months. With the typical financing at 20 to 30% down, income MAY cover costs. The rental income through Ramada management is a good way to offset taxes and maintenance fees with a small portion of principal. Through owner management or property management outside of Ramada, net income could be slightly higher as the current owner rented this unit out at $525 weekly plus $50 cleaning plus 13% tax. On the flip side, I like the idea of Ramada’s network which may keep occupancy higher hence netting an equivalent as owner/management.

These oceanfront condo hotels are purchased by the vacationer/investor looking for passive income with stress free management in place. The potential for appreciation is great based on the price point ($110k) as anything oceanfront less than $200k, in a highly desirable area, plus high tourist area, should be rare in the coming years.

• Taxes Estimated Yearly at $2,082 or $173 month
• Maintenance fees at ~ $550 month
• At 25% down ($27,500) the remaining balance is $82,500 at 7% (example only) the monthly would be $548.87
• Total monthly expense is estimated at $1,272!

• Rental Value approximately ~$2,000
• Total monthly carrying cost: $3,781
• Negative $1,781 month
• you may adjust +$300 to 500 additional income depending on financing and rental value
• Numbers will be similar for a 1 bedroom also with average rental value at $1,300