Let’s look at Sunny Isles Beach’s buyer discounts, known as the sale price to list price ratios. Recently I decided to work with a serious foreign client who needed a lot of education. I informed him of today’s inventory, value, and location advantages. After previewing many condo units with the buyer, the ultimate decision was to go with an oceanfront condo in Sunny Isles Beach.
The buyer had an emotional and an investment outlook. He went with multiple offers plus a lowball offer tactic to see who was desperate. After fast negotiations and getting the very best deals on each, I realized that out of the 1,134 total condos for sale in Sunny Isles Beach, most of today’s sellers are, in fact, desperate. I could sense desperation based on the current market conditions in Miami.
Positioned to Sell
The only difference is what I call the 1%ile (1 percentile). The 1% lowest-priced unit owners have listened to good advice and positioned their condos to sell. The 1% of the market has priced their condo ahead of the curve. They are waiting for the slinky at the bottom of the stairs!
Ladies & Gentlemen, properties are, in fact, selling!! Surprisingly, there were 258 sales in 2007, while there are 1134 waterfront condos for sale today. Yes, this is not the seller’s market that it was in 2004 & 2005, but with what the latest 24 months have provided us, there are great deals to be had, and 258 people have taken advantage of a 20 to 30% discount in Dade county pricing.
Sale Price to List Price Ratios
Studying today’s lowball offers and what we may discover by reviewing factual data on closings, today’s average sale price to list price ratio is 95%. This tells us the best-priced properties are taking an additional 5% off the list price in most cases to complete the transaction. We find ranges from 15% to 97%, and many relate to each party’s negotiation skills and motivations.
These are all very nice condos at very good prices. Each unit line (ie, 1603 = 16th floor in an 03 line), where we may preview the properties priced most aggressively.
Offer #1 Ocean III #1603
(seller paid $495,000 in 2003)
- *asking $659,000
- *offered $550,000 (17% off)
- *counter came back at $630,000 (4% off)
- ***closed comps show #1003 closed at $690,000 on 2/2007 #703 closed at $655,000 on 4/2007 #1703 closed at $625,000 on 8/2007
Offer #2 Ocean Four #1502
No Tax Records yet… possibly b/c of new construction
- *asking $699,000
- *we offered $599,000 (14% off); the buyer tests the seller’s motivations & bottom line.
- Reply: ”seller wants it in writing to show sincerity.” this tactic tests the offer’s sincerity.
- ***closed comps show #2602 closed at $765,000 on 6/2007 #1802 closed at $720,000 on 6/2007#1702 closed at $700,000 on 5/2007Factor in the floor height which delivers a premium.
Offer #3 Ocean Four #3903
- *asking $759,000
- *offered $650,000 (14% off)
- *counter returned at $695,000 (8% off).
- ***closed comps show:#2803 closed at $820,000 on 5/2007#1803 closed at $782,000 on 3/2007#2603 closed at $680,900 on5/2007 Michelle tells me “this is a developer unit from pre-construction”!!?!!At 10 floors higher, 3903 should be a great buy.
Offer #4 Sands Pointe #PH02
(seller paid $299,000 in 1997)
- *asking $599,000
- *offered $509,000 (15% off)
- *countered at $560,000 (7% off).
- ***closed comps show:#1601 closed at $700,000 10/2007#PH-6 closed at $610,000 9/2007#2001 closed at $550,000 4/2007