Allan Kleer, M.B.A., PA  :  305-798-8205 Fabian Garcia Diaz  :  305-785-8013

Saturday, July 16, 2011
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Many Miami Beach condo buyers we encounter in the real estate buying process often labor under several misconceptions, which could be called myths. Below are a few of what I've found to be the most common:

1. We are looking for "a below market deal / distressed sale". The longer the condo is on the market, the more willing the Miami Beach condo seller will be to negotiate a bargain price.

The Miami Beach waterfront condo market has gotten a considerable boost from a very active first half of the year. This type of waterfront condo and luxury real estate sales momentum has not been seen since the market heights of 2006. Especially in premier waterfront condo buildings, such as The Continuum on South Beach, continue to set remarkable sales records! Recent myth-busting impressive sales, and diminishing supply, for oceanfront condos and waterfront homes is on a steady and stable rise - dissolving the above stated Buyer misconceptions. Especially in Miami Beach's South of Fifth neighborhood, the latest luxury condo sales momentum has led to a greatly diminished supply of available waterfront condo inventory. As you can be seen at the the very bottom of this article, the past 90 days of South Pointe area condo sales at The Continuum (North and South Towers), Apogee, The Murano at Portofino, The Portofino Tower, and The South Pointe Tower average 90% of asking prices.


2. If my offer is accepted right away, the offer was too high; in this Buyer's market, I don't have to negotiate, the Miami Beach condo seller does.

Location & architectural uniqueness are a few of the key determining factors in recent buyers decisions to purchase. As illustrated by the most recent Miami Beach condo sales at the aforementioned Continuum Miami Beach, Apogee, and The Murano at Portofino. The underlying reason for the recent price APPRECIATION and diminishing supply (at reduced price points) is that there will be NO further waterfront condo development in South Beach. Given the scarcity of waterfront land, as well as The City of Miami Beach's strict development regulations / restrictions, this puts a PERMANENT bottleneck on future condo building development & supply. This also represents a strong upside for future Miami Beach waterfront real estate market appreciation.

Even an older "B" caliber South Beach condo building - The South Pointe Tower, due to its amazing location South of Fifth Street (behind South Pointe Park and facing Fisher Island) – has witnessed incredible sales momentum in the past year! The South Pointe Tower was completed in 1981, and is next door to The Continuum on South Beach - which offers twelve incredible oceanfront acres at the southernmost tip of Miami Beach. This as the equivalent of living next to an Oceanfront resort, and has features and a location that CANNOT be reproduced. This is why specific ultra-luxury waterfront condo buildings such as The Continuum, Apogee, and The Murano at Portofino have had recent sales approaching $1,600/S.F., with unprecedented Buyer demand (from mostly high net worth Foreign Buyers).

As real estate sales professionals, it's our duty to get the best possible price for our clients. As part of this process, when working with qualified Buyers, this involves educating a Miami Beach condo buyer and setting realistic expectations as to what is a "good deal".

South Beach Condos South of Fifth

Miami Beach Condos- Ninety Days Closed Sales
Closing DateMiami Beach Condo List Price Living Area LP$/SqFt Sales Price SP$/LP$
7/14/2011SOUTH POINTE TOWER COND I $ 779,900 1,279 $ 610 $ 772,500 99.051
7/8/2011CONTINUUM II $ 3,500,000 2,173 $ 1,611 $ 3,500,000 100
7/8/2011PORTOFINO TOWERS $ 1,690,000 2,340 $ 722 $ 1,625,000 96.154
7/6/2011CONTINUUM NORTH TOWER $ 1,595,000 1,698 $ 939 $ 1,400,000 87.774
7/5/2011SOUTH POINTE TOWER $ 850,000 1,165 $ 730 $ 825,000 97.059
6/30/2011Continuum on South Beach $ 1,550,000 1,698 $ 913 $ 1,450,000 93.548
6/30/2011Continuum on South Beach $ 3,750,000 2,508 $ 1,495 $ 3,400,000 90.667
6/30/2011CONTINUUM SOUTH TOWER $ 2,250,000 2,122 $ 1,060 $ 2,122,000 94.311
6/28/2011PORTOFINO TOWERS $ 2,275,000 2,040 $ 1,115 $ 1,750,000 76.923
6/27/2011CONTINUUM ON SOUTH BEACH $ 2,005,000 1,698 $ 1,181 $ 1,700,000 84.788
6/27/2011CONTINUUM ON SOUTH BEACH $ 4,431,000 3,017 $ 1,469 $ 3,850,000 86.888
6/27/2011CONTINUUM NORTH TOWER $ 3,999,999 2,621 $ 1,526 $ 3,836,000 95.9
6/22/2011Continuum North Tower $ 699,000 640 $ 1,092 $ 675,000 96.567
6/21/2011Murano at Prtofino $ 2,399,000 2,618 $ 916 $ 2,215,000 92.33
6/20/2011APOGEE CONDO $ 7,990,000 4,154 $ 1,923 $ 7,350,000 91.99
6/16/2011South Pointe Tower $ 725,000 1,559 $ 465 $ 700,000 96.552
6/13/2011CONTINUUM SOUTH BEACH $ 1,490,000 1,591 $ 937 $ 1,379,000 92.55
6/10/2011Continuum South Tower $ 3,850,000 2,508 $ 1,535 $ 3,800,000 98.701
6/6/2011PORTOFINO TOWER $ 1,250,000 2,340 $ 534 $ 950,000 76
6/6/2011Apogee $ 5,400,000 2,756 $ 1,959 $ 4,900,000 90.741
6/2/2011continuum $ 5,299,000 3,017 $ 1,756 $ 5,050,000 95.301
6/2/2011South Pointe Towers $ 675,000 1,169 $ 577 $ 565,500 83.778
6/2/2011MURANO AT PORTOFINO $ 1,090,000 1,791 $ 609 $ 935,000 85.78
5/26/2011Murano At Portofino $ 3,800,000 3,365 $ 1,129 $ 3,500,000 92.105
5/24/2011PORTOFINO TOWER $ 699,000 1,090 $ 641 $ 655,000 93.705
5/18/2011PORTOFINO $ 1,295,000 2,340 $ 553 $ 1,188,000 91.737
5/18/2011SOUTH POINTE TOWER $ 700,000 1,042 $ 672 $ 680,000 97.143
5/17/2011CONTINUUM NORTH TOWER $ 4,500,000 3,017 $ 1,492 $ 4,050,000 90
5/17/2011SOUTH POINTE TOWER $ 990,000 1,559 $ 635 $ 926,000 93.535
5/16/2011Continuum On South Beach $ 1,345,000 1,491 $ 902 $ 1,300,000 96.654
5/10/2011Continuum South Beach $ 4,500,000 2,954 $ 1,523 $ 4,000,000 88.889
5/10/2011Continuum South Tower $13,500,000 6,438 $ 2,097 $ 10,576,000 78.341
5/9/2011MURANO AT PORTOFINO $ 2,550,000 2,618 $ 974 $ 2,400,000 94.118
5/3/2011Continuum North Tower $ 7,900,000 5,300 $ 1,491 $ 6,500,000 82.278
5/3/2011SOUTH POINTE TOWER $ 575,000 858 $ 670 $ 550,000 95.652
4/30/2011continuum on south beach $ 2,995,000 2,292 $ 1,307 $ 2,850,000 95.159
4/29/2011PORTOFINO TOWERS $ 1,599,000 2,040 $ 784 $ 1,480,000 92.558
4/29/2011PORTOFINO TOWERS $ 1,275,000 2,040 $ 625 $ 1,100,000 86.275
4/28/2011CONTINUUM ON SOUTH BEACH $ 1,100,000 1,365 $ 806 $ 1,100,000 100
4/28/2011Murano at Portofino $ 2,895,000 2,618 $ 1,106 $ 2,200,000 75.993
4/26/2011Murano at Portofino $ 1,395,000 1,407 $ 991 $ 1,250,000 89.606
4/25/2011The Continuum $ 1,425,000 2,072 $ 688 $ 1,425,000 100
Average List Price to Sales Price:90%

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Friday, August 6, 2010
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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:

Miami Beach Home

Incredible Mediterranean estate located on over AN ACRE of prime waterfront property with over 100 feet on the intracoastal waterway. This large family home boasts over 6000 SF of living space, grand living room with cypress beam ceilings,gourmet eat in kitchen,formal dining room with fireplace,master bedroom with private terrace,tennis court,guest cottage and over 47,000 SF waterfront lot!

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:

Continuum South Beach

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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