Recently I decided to work with a serious foreign client who needed a lot of education on today’s inventory, value and location advantages. After previewing many condo units with the buyer the ultimate decision was made to go with oceanfront of Sunny Isles real estate. The buyer had both an emotional and an investment outlook and went with the multiple offer plus low ball 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 that most of todays sellers are in fact desperate based on the current market conditions of Miami. 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 condo to sell. The 1% of the market who have priced there condo ahead of the curve and are at the bottom of the stairs waiting for the slinky! Ladies & Gentlemen properties are in fact selling!! There have been 258, 2007 sales while today there are 1134 waterfront condos available. Yes, this is not the sellers 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.
In studying todays “low ball offers” and what we may discover 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 off an additional 5% off list price in most cases in order to complete the transaction. Ranges seem to be from 15% to 97% and alot has to do with negotiation skills and motivations of each party.
My Analysis… 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 4 #1502 No Tax Records yet… possibly b/c of new construction
*asking $699,000 *offered $599,000 (14% off)”wants it in writing to show sincerity” … buyers test the seller motivations/bottom line so this tactic simply tests the sincerity of the offer. ***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 4 #3903
*asking $759,000 *offered $650,000 (14% off) *counter came back 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 Point #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
This is a review of todays best oceanfront deals in Sunny Isles real estate from December 2007