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".

This week we've had some spectacular November Fall Days in Miami Beach, and I happen to be fortunate enough to have enjoyed the amenities at The Continuum in the South of Fifth Neighborhood. A little known fact to many visitors - located directly on the grounds of The Continuum South Tower is an excellent restaurant that is open ALL day (until 5pm). You can lunch on a gourmet salad, incredible fresh catch entrees, and plenty of other healthy fare available ONLY to residents and guests of The Continuum condos. Also, this is a SPECTACULAR place to just sit and admire the incredible views of the Ocean, the Continuum Lagoon Pools, and the impeccably landscaped & beautiful grounds.

The most desireable neighborhood within the roughly 23 block area of South Beach is the South of Fifth neighborhood, where the twelve acre Continuum grounds are located. Miami Beach's South of Fifth neighborhood is home to a few other popular luxury buildings such as The Portofino Tower, Apogee, The Murano at Portofino, Murano Grande, and Icon South Beach. South Beach is a neighborhood of Miami Beach, not a city itself, and South of Fifth is a sub-neighborhood within this 23 block area. The South of Fifth Street neighborhood became popular in the late 1990's, when the Portofino Tower began construction with Thomas Kramer as the primary developer (who was eventually replaced by Related Group's Jorge Perez). For more information about South of Fifth development history, click HERE. Arguably, the amenities of the Continuum are the BEST OF THE BEST due to the twelve incredible Oceanfront acres at the southernmost tip of Miami Beach. The nearby Apogee and Murano at Portofino are also considered premier real estate, with Apogee being the most expensive condos South of Fifth, and the Murano at Portofino featuring the famous Piaggia Beach Club.

Upon arriving at The Continuum from South of Fifth's South Pointe Drive, you'll notice the 24 hour guard gated facility that methodically restrict access ONLY to registred guests and residents. The other buildings in the immediate area that have this added level of security are the next-door Portofino Tower that shares common area with the older South Pointe Tower. However, The Continuum is a condominium property at another level of sophistication and luxury, with TWO oversized lagoon-style pools with towel service, the aforementioned restaurant, THREE lit, wind-protected sunken clay tennis courts, a 15,000 multi-level fitness center, spa, a completely gated twelve acre oceanfront complex, 24-hour roving security guards, 24-hour valets in each tower, a highly trained concierge staff, private elevators and foyers, beach towel and food services, a business center at Continuum North and South Towers, and a resort lifestyle. All of these amenities, services, a uniquely beautiful & contemporary architectural style, and a premier oceanfront location make The Continuum on South Beach a condominium property like no other!

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:

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:

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%

For the next few weeks, I'd like to highlight the significant sales movement that we are seeing in the premier luxury waterfront condominium buildings in the South of Fifth Street neighborood in South Beach. The most sought-after buildings in this highly desireable area are the Continuum North and South Towers, The Apogee South Beach ultra-luxury condos, The Murano at Portofino, The Murano Grande, and finally Icon South Beach. Below are the past twelve months closed sales (and two pending sales) for the Continuum North Tower, which was completed in 2008. Many (subjectively speaking) consider the North Tower to be a slightly more desireable due to it's finishes, better overall attention to details by the builder, and a few of the more modern "smart" building amenities that were not available when the Continuum South Tower was completed in 2001.

The Continuum is a one of kind luxury waterfront condo community with twelve acres located directly on the Ocean at the southernmost tip of Miami Beach. Featuring two oversized lagoon pools, the largest private fitness facility in Miami Beach, two sunken tennis courts, a private lap pool, a private restaurant, and many other amenities, click here for more information about The Continuum North Tower.

The Sales Data for the past twelve months is listed below: