In the Miami Beach real estate market, a great strategy for negotiating the price of a home or condominium in a "short" sale:
If the home or condo is a "short" sale, where the market value is below the debt amount, then the negotiating process is fairly straightforward. Especially for premium waterfront Miami Beach properties, the 2009 tax assessed values provide buyers with a fairly accurate "true market value". This is the market value that banks will take into consideration when performing an appraisal (otherwise known as a Brokers Price Opinion). If the property is in a highly desireable area (such as waterfront condos and homes in South Beach) then the buyer should consider that there will probably be multiple offers. In this case, serious consideration should be given to increasing the contract price slightly ABOVE the tax assessed value. If the property has multiple offers already, then I would advise submitting an all-cash contract at a slighly LOWER price. Read about tax assessed values vs. real marked values comparison HERE
Example of a recently closed Miami Beach waterfront home "short" sale, this was an amazing Deal for the Buyer:
Sold Price: $2,500,000
Original “For Sale” Price : $6,500,000 (9/2007)
Previous “Sold” Price (1/1998) : $3,100,000 (3/2004)
Bedrooms: 6
Bathrooms: 6
House S.F.: 5,931 ($421/SF)
Land S.F.: 47,540 ($ 53/SF)
Closed Date: August 2, 2010
Total Time on "Pending Status": 197 Days (Bank Short Sale Approval Time)
Discount from Original Asking Price in 2007: 62%
Example of a closed Continuum South Beach Condo "short" sale:
Incredibleand completely unobstructed views of the Downtown Miami skyline from this Two Bedroom / Two Bath condominium with oversized balcony. Almost every room in the condominium has amazing views of Biscayne Bay, Fisher Island, and the Intracoastal waterway. Large foyer entryway with views from the moment you step through the entrance to the condo!
Sold Price: $1,160,000
Original “For Sale” Price : $1,550,000 (8/2008)
Previous “Sold” Price (1/1998) : $950,000 (10/2004)
Bedrooms: 2
Bathrooms: 3
Condo S.F.: 1,591 ($729/SF)
Closed Date: March 9, 2010
Total Time on "Pending Status": 65 Days (Bank Short Sale Approval Time)Discount from Original Asking Price in 2007: 25%
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