We have far more active buyers in the Miami market today compared to six months ago. Sometimes the number of agents and their clients chasing the same “sweet” deal is quite overwhelming. Massive bidding, inside deals and multiple offers are now the norm.

Unfortunately, with so many struggling real estate practitioners out there you have to be vary wary of being misled as to the facts.  The scenario is always similar. Listing agent wants to get both sides of the deal and maximize their commission. So instead of encouraging offers and playing by the book, they work to misrepresent the facts and turn you off the deal.

So where is the “sweet” spot? Just how much leverage does one have when paying cash? My analyses of the sales of bank owned properties [REO] for most recent six months of this year revealed the following:

• Condos, Townhomes purchased with Financing - the average discount [Selling Price to Listing Price] has significantly decreased from 95.6% in January to 102% in June 2009. 
• Condos, Townhomes purchased with Cash - the average discount has significantly decreased from 92.8% in January to 99% in June 2009. 
• Single Family Residences purchased with Financing - the average discount has slightly decreased from 97.3% in January to 99.4% in June 2009. 
• Single Family Residences purchased with Cash - the average discount has decreased from 88.6% in January to 93.9% in June 2009. 

The results show that the cash buyer is obtaining bigger discounts in both the purchase of condos, town homes and single family homes. However, the spread between the financed and cash deals may not be as great as what you expect.

These numbers do not take into consideration seller concessions, which is much more common on financed deals than cash purchases. The average seller concession on a financed purchase has been just over $5,000 or 4% of the average purchase price, whereas the average seller concession on a cash purchase has been just over $2,900 or 3% of the average purchase price.

When comparing the total number of purchases with cash to financing, there are clearly more condos and town homes being acquired with cash versus financing. The reverse applies to single family homes. This is not a surprise as it can be challenging to obtain financing to buy that condo in Miami. However, buyers are obtaining financing more often than you may think. During the past six months, there have been 931 closed sales with financing compared to 1,476 cash transactions in the REO condo market.

Clearly, the Miami real estate market has picked up steam this year. Bank owned properties are on the market for less time and demand is pushing up selling prices. If you have not secured that distressed property do not get discouraged. The bank owned property pipeline is about to open up again and there will be more deals out there to consider.

If you would like more information on the Miami REO’s or foreclosure market, properties for sale, or financing, please contact us via email at info@miamiangelproperties.com.

The data used to generate this chart/data is gathered from the Southeastern Florida Multiple Listing Service (”MLS”) and the Miami Dade Clerk of the Courts. The data in the MLS is deemed reliable but not guaranteed. This data is for January through June 2009 for single family homes, unless otherwise indicated as condominiums/townhomes. The prices are the actual sales prices of all single family or condos/townhomes that closed during the month of January through June 2009.

Related posts:

1. Miami Real Estate Monthly - Feb 2009
2. Miami in Review - Q1 2009
3. Miami Real Estate Monthly - Mar 2009

For those of us in Miami’s real estate circles, this announcement is very disappointing. Miami’s Property Appraiser, Pedro J. Garcia, was appointed to office just a few months ago. With Garcia’s promises that the “department will take a look at comparable sales, foreclosures and short sales in a community to establish the right value of properties in each market area,” he has fallen way short of this commitment.

Consider the following taxable value percentage changes from 2008 to 2009 - 

• Miami Beach declined 8.2 percent
• The City of Miami declined 6.4 percent
• Miami Shores declined 13.5 percent
• Sunny Isles Beach declined 2.6 percent
• Homestead declined 24.7 percent

When I posted the blog titled Property Tax Front Lines earlier this year, it was this exact outcome that I feared. I don’t suppose our elected officials have attempted to quality a first time home buyer that is interested in purchasing a bank owned property lately. 

Let’s consider the example of the bank owned, single family residence located at 11205 NE 8 Ave in Biscayne Park, with an asking price of $179,500. With a 2008 assessed value of $299,921, annual property taxes in the amount $9,455.97 and monthly tax payments of $788, how are most people supposed to feel comfortable taking on this huge tax liability? There is no clear directive that a foreclosure sale will be considered a market sale, so I assume they just expect us to convince the buyer to take a swing and hope for the best.  

While our elected officials do not want to deal with reality, the rest of us have to swallow the dreaded real estate tax pill to support crony capitalism. Please, make your voices heard!

Related posts:

1. Miami in Review - Q1 2009
2. Miami Real Estate Monthly - Jan 2009
3. Miami Real Estate Monthly - Mar 2009

With so many technophiles claiming that mobile applications today are similar to where the internet was at the beginning of the century, we decided to get with the program and launch MAP Mobile.

Here is a list of the features of the MAP Mobile site: 

• The site will determine if you a using a mobile browser and then serve the content based on that browser.
• The site has been tested and functions on most mobile devices, including iPhone, Blackberry, Nokia, Palm, Opera Mini, Windows CE and other generic handsets.
• The main Navbar offers links to our available Properties, Blog, Services and Contact information.
• The footer offers additional links to properties that are Hot Picks, News, Miami Beach Community, plus a description of the Company and Associates.
• The front page offers the most recent posts.

Check it out and let us know what you think?

m.miamiangelproperties.com/blog

No related posts.

According to public records, in Miami-Dade County there were 26,731 foreclosures filed in 2007, another 56,656 foreclosures were filed in 2008, and an additional 29,833 foreclosures have been filed through May 2009. That’s over 110,000 foreclosures filed within the past two-and-a-half years! We have a HUGE shadow inventory of foreclosed properties out there that very few people in the real estate business want to acknowledge, let alone share with the general public.

I keep wondering where are all these bank owned properties? I think there is only one explanation. These thousands upon thousands of distressed properties are being held on the banks balance sheets. TALF, TARP, stimulus, mark-to-market, call it whatever you wish, but the banks are playing a simple game with the market, and apparently, the FDIC, Federal Reserve, OTS or Comptroller, have nothing to say about it.

So let’s consider some additional facts. According to the Southeast Florida Multiple Listing Service, since January 2008 there have been a total of 22,583 properties sold in Miami. Out of this number, there were only 6,624 bank owned or REO properties sold, a mere 28% of total sales.

Now in all fairness not all foreclosure filings ever end up in a foreclosure sale. There are many that are modified, some are sold in pre-foreclosure, many are caught up in legal snafu’s, a few are dismissed, many have not been served or processed, but c’mon, where are the other potential 50,000 plus bank owned properties that should be on the market?

Yes, I am in the business of selling real estate, but I also like to work and make decisions based on facts and reality. Do you know how many times I have heard the same story lately, “we have multiple offers, send us your highest and best offer?”

The banks are playing the real estate market, and so far they have clearly earned the gold medal.

Related posts:

1. Miami in Review - Q1 2009
2. Rent is Paid, Now What?
3. Miami Real Estate Monthly - Jan 2009

Description |  The Fontana is a condo conversion located in South Beach that was completed a few years ago. It is situated on West Avenue just one block west of Lincoln Road. This unit is sleek, modern, with clean lines and faces the interior pool area. With affordable maintenance fees and a practically “turnkey” brand new unit in a fantastic South Beach location, what more are you looking for? Call or email us today to view this unit -305.673.5300 or info@miamiangelproperties.com.

Address | 1601 Washington Ave #201, Miami Beach  -   map it

Property Type | Condominium
Year Built | 1962
Living Area | 681 SF or 63 m2
Bedrooms | 1
Bathrooms | 1
Waterfront | N

Download a full description (PDF):

1601-west-ave-201 (Right click the link and choose “Save link as”)

Related posts:

1. The Waverly South Beach
2. South Beach Pre-Foreclosure
3. The Courts South Beach

Description |  The Courts is a very successful project located in the prestigious South of Fifth Neighborhood of South Beach. The community features over eleven acres with secure parking, resort-like pools, spa, gym and security. This unit 3 bedroom 3 bathroom unit consists of 1,485 square feet, renovated kitchen and bathrooms, and is in excellent condition.  Call or email us today to view this unit -305.673.5300 or info@miamiangelproperties.com.

Address | 140 Meridian Ave #312, Miami Beach  -   map it

Property Type | Condominium
Year Built | 2002
Living Area | 1,485 SF or 138 m2
Bedrooms | 3
Bathrooms | 3
Waterfront | N

Download a full description (PDF):

140-meridian-ave-312 (Right click the link and choose “Save link as”)

Related posts:

1. Courts Miami Beach Foreclosure
2. South Beach Pre-Foreclosure
3. The Fontana South Beach

PRICE : $224,000

Description |  A rare corner unit with 2 bedrooms, garage parking,  fully updated, and located in the heart of South Beach just steps from Flamingo Park and Lincoln Road!  Did we also mention pet friendly and low maintenance fees?  This is a place to call home.   Call or email us today to view this unit -305.673.5300 or info@miamiangelproperties.com.

Address | 1498 Jefferson Ave # 205, Miami Beach  -   map it

Property Type | Condominium
Year Built | 1965
Living Area | 859 SF or 80 m2
Bedrooms | 2
Bathrooms | 1
Waterfront | N

Download a full description (PDF):

1498_jefferson_avenue_unit_205 (Right click the link and choose “Save link as”)

Related posts:

1. Central South Beach Rental
2. South Beach Pre-Foreclosure
3. Affordable Condo at Lincoln Road

PRICE : $140,000

Description |  This large one bedroom, one bathroom condo is located just a few steps from Lincoln Road as well as a few blocks from the beach.  With lots of light, high ceilings and an outstanding location, this condo is a turn-key investment.   To view this property, please call us at 305.673.5300 or email info@miamiangelproperties.com.

Address | 1606 Jefferson Ave #11, Miami Beach  -   map it

Property Type | Condominium
Year Built | 1946
Living Area | 730 SF or 68 m2
Bedrooms | 1
Bathrooms | 1
Waterfront | N

Download a full description (PDF):

1606_jefferson_avenue_unit_11 (Right click the link and choose “Save link as”)

Related posts:

1. Central South Beach Condo
2. Lincoln Road Mall - 1111 Project
3. Alton Road Gourmet’s Delight

This house sits on a corner lot in a prime location in the popular suburb of Miami Shores. The property consists of a total living area of 1,658 square feet with 3 bedrooms, 2 bathrooms, a renovated kitchen and bathrooms, new roof, and features a large swimming pool and original wood floors. Originally built in 1949, this single family residence is in excellent condition and is a turnkey property.

The following is a chronological history of this single family home over the past 16 years -

05/93 - Sold for $94,000, or $57 PSF.

07/99 - Sold for $128,000, or $77 PSF, increased 35% in value over 6 years.

01/04 -  Sold for $260,000, or $157 PSF, increased 103%  in value over 5 years.

09/05 - Sold for $499,900, or $302 PSF, increased 92% in value over 18 months.

02/07 - Placed back on the market, asking $633,000.

06/09 - Available for $199,000, or $120 PSF, decreased 60% in value over 2 years.

It is very apparent from this quick analysis that our prices in Miami barreled ahead in the earlier part of this decade. Four years ago, the current owners did not think twice about paying $302 per square foot for this house. Wells Fargo provided ninety percent financing in the form of an 80/10 first and second mortgage, and within one year of ownership, the owner placed it back on the market for a $100,000 plus premium.

Now the question that everyone is asking is whether or not the $199,000 short sale price that has been approved by the bank, is the real market value in today’s market? With FHA financing up to 96.5% of the purchase price and up to six percent seller concessions, are we any closer to reality?

The above  data was provided by the Southeast Florida Multiple Listing Service and Miami-Dade County public records. This information is believed accurate but is not warranted.

Related posts:

1. Miami in Review - Q1 2009
2. Miami Real Estate Monthly - Mar 2009
3. The Return Of Bidding Wars?

Description | Aqua, a private residential island on the intracoastal waterway of Miami Beach, was created by Miami Beach pioneer developer Craig Robinson. A secure and private island retreat just minutes from the golf course, ocean or South Beach, this development offers oustanding amenities and a quality product. This unit is a large 4 bedroom 4 bathroom with a direct water view and is being offered below original construction cost at $200 per square foot. Call or email us today to view this stunning unit -305.673.5300 or info@miamiangelproperties.com.

Address | 6103 Aqua Ave #701, Miami Beach  -   map it

Property Type | Condominium
Year Built | 2004
Living Area | 2,752 SF or 256 m2
Bedrooms | 4
Bathrooms | 4
Waterfront | Y

Download a full description (PDF):

6103-aqua-av-_701 (Right click the link and choose “Save link as”)

Related posts:

1. Belle Isle Foreclosure
2. Bentley Bay Luxury Rental
3. SoBe Conversion Foreclosure