by Jamey on March 20, 2009
One man’s home is another man’s castle. That is particularly true here in Miami & Miami Beach.
The range of price points that I work in Miami & Miami Beach as a Realtor(r) is “VERY B R O A D”. Some agents only work in the luxury market, others short sales only, some vacation homes and some agents work in a “range” of price points. I work more in the “range of price points”. A few months ago I sold a condo for $196,000 and right after that I did a rental at Portofino Towers for $6000 a month. Each of these buyers, sellers and renters had different needs, expectations and priorities. My goal is to properly manage these expectations and provide my clients with the best information to make good decisions…. no matter what is the price point.
I work in a very small area of Miami & Miami Beach: South Beach, Brickell, Downtown Miami, Biscayne Corridor and Midtown Miami. However this area includes hundreds of buildings with different amenities, services, condo associations, management companies & more. That’s a lot to know and take in.
With all of that said…. in regards to value and convenience I went back and looked at my buyer’s and renter’s consultations over the past year and these are the top 20 issues that were priorities to them:
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Parking: At least 1 assigned/deeded parking spot. OR I don’t mind paying for a spot. OR street parking is fine.
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Valet service: I want to have valet take my car upon arrival. OR how much does valet charge my guests? OR how much does valet charge for a second unit owner’s (renter’s) car to park?
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Concierge services: Do you want a full fledged concierge service that can make reservations for you, refer you to restaurants, call the limo service? OR just a person to buzz guests up and down the elevator? OR none of the above?
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Management Company: Do you want an on-site management company? OR off premises? OR self-managed?
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Renting Restrictions: Do you want a building that has flexible lease terms? OR no renting allowed?
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Pet Restrictions: Small pets, big pets, pet friendly access?
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Security: Actual security guards 24/7 on site patrolling the building? OR just a gated/secured building?
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Maintenance Fees: What’s included? (there is not enough space here to write everything you need to know about this……another post later.)
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Reserves: Does the building have reserves built in? How much are they? How are they managed? (there is not enough space here to write everything you need to know about this……another post later.)
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Assessments: Are there any planned assessments? For what? How much? (there is not enough space here to write everything you need to know about this……another post later.)
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Washer/Dryer: Must be in the unit. OR must be on the same hallway. OR I can take my clothes off premises to wash.
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Elevators: How many? How quick are they? Are there private elevators? OR I don’t like elevators.
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Swimming Pool: A must? Heated? OR I can go to Flamingo park to swim.
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High Rise or Low Rise? Boutique or Grand?
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Beach Access: Right on the beach with chairs/umbrellas provided by the building. OR a quick walk is fine. OR I don’t mind driving across the bridge.
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Noise: Is the building a relatively quite building? OR are the walls thick/thin? OR I love the unit so I don’t mind the construction outside from 9am – 5pm.
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Hurricane Windows/Shutters: Hurricane windows are a must. OR shutters are fine. OR doesn’t really matter.
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Convenience Store in Building: Yes, a must. OR big deal, I can walk down the street.
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Pedestrian Friendly: I must be able to walk to all of the hot spots. OR I will drive or cab it.
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Gym: Must have a super nice gym. OR I have a membership no gym needed. OR who cares I don’t work out.
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Storage: Must have separate storage area. Or not.
Whew. The problem with this list is once I started writing it, I couldn’t stop. Gosh, there is just so much to know and I could have elaborated each point with it’s own paragraph. Of course there are more issues to consider such as the financial stability of the building, specific condo docs, rules per building and more. But I think I pretty much hit on the main items that most of my buyers and renters have asked about over the last year. If you think of any more add them in the comment section.
by Jamey on March 11, 2009
The Back story…
Yesterday I took a REO (stands for Real Estate Owned and is a property that a bank has foreclosed on and now has ownership) class taught by a Realtor who represents Miami and Miami Beach REO listings for the banks.
This class made me think a lot about people who call me at last moment’s notice and ask me to just run out and ”take them to see this property or that property” and then when I ask them to come into the office first to discuss their needs before previewing properties, they disappear.
Okay, I get it. I know that you can look up pretty much any property you are interested in on the Internet. You can call a lot of agents that will at a moments notice run out to show you whatever you want to see. I know people often think of a Real Estate Agent as the dreaded sales person and if you come into my office I am going to make you sign away your first born. It’s just not the case.
In today’s market, it’s more important than ever to have a good discussion with your agent and lender prior to looking at properties.
Good agents all work in different ways. Successful agents have developed successful systems to give their clients the best services and products available. Some times those systems may not always be so evident to your success or convenient for you in the initial stages, however in the long run, you will be glad that your agent took the time to make sure you were well prepared prior to previewing properties.
Another story…
Last week I had a potential buyer from New York call me and ask me to take her around to look at condos within a certain price point around South Beach. I told her that I would be happy to work with her but prior to looking at properties, I would like to first meet with her at my office. I discussed the importance of this meeting with her. I made an appointment and the next week when I called her to confirm she had already found another agent to take her around to preview properties without first meeting to discuss her needs.
I am not disappointed, it’s the nature of the job. I am working with quite a few buyers at the moment and it’s important that I work with buyers who are serious, know what to expect and have the financial backing to actually purchase a property if they like it. There is nothing worse than falling in love with a property and then find out that either (A) you cannot afford it or (B) the building will not meet the qualifications of the type of loan you were approved on. Plus what if I didn’t set that expectation up front and tell you that you needed to have this prior to looking at properties? You would assume that I have no clue what I am doing.
Ok, I hear you so what’s the point?
This is where the Pre-qualification and Pre-approval come in…
In today’s market, if you are a serious buyer, it’s more important than ever to speak with a lender or Aunt Edna with the cash. Whatever way you are planning to finance the purchase of your property, you need to know prior to looking at property how you are going to purchase it. ONE MORE TIME….. In today’s market prior to looking at properties you MUST know how you are going to purchase it.
Pre-qualification is not Pre-approval and vice versa.
A pre-qualification from a lender is an “informal” way of finding out how much you may be able to borrow based on your income and debt. It’s pretty much based on what you tell the lender. You talk to the lender, you tell him your income, debt, etc. The lender goes by the information you give him and then he will tell you what you may be eligible to borrow. It’s an “estimate”, it is not guaranteed.
A pre-approval is where you have to provide all of data in writing: credit reports, W-2 statements and more. The lender will verify all of the data. Once the lender determines what you are eligible to borrow, he will give you a pre-approval letter. This letter is important because it shows potential sellers and their agents that you have done the legwork and are serious about purchasing their property and are qualified to purchase their property. Know that there are also final conditions that the buyer, the condo and the building must meet in order for this to also have a final approval.
Why this is important in today’s market…
If you are looking at REO properties and are seriously considering a REO property, you will be required to submit a pre-approval letter with the offer. Obviously the bank wants to make sure that the offer they accept has a buyer that is qualified. An REO listing agent is not going to take a property off the market to wait and see if a buyer can get qualified.
For a regular property, depending on the type of mortgage you qualify for, the property and more specifically if you are in a condo building, the building needs to meet the criteria of the lender. Many buildings in today’s market that have unit owners delinquent in assessments and HOA dues will not meet the qualifications of certain lending criteria.
Why spend time looking at properties that you cannot purchase?
In Conclusion…
Spend time with an educated agent that will guide you through the process. It may not always be so convenient up front but in the long run it will make your buying process so much easier. Make sure to speak with a lender prior to looking at properties so you know what you can afford to buy as well as what type of building you can buy in. I have seen some amazing deals in our market, make sure you are prepared so that you can purchase a deal when you see it.
Like the old saying goes, “Luck is when preparation meets opportunity” or my saying, “A good deal is when preparation meets opportunity.”
by Jamey on March 6, 2009
This morning I was reading through my RSS feeds from other Real Estate blogs through out various parts of the country. I came across Missy Caulk’s blog in Michigan and thought her topic about acting quickly on distressed properties would also be a good topic to look into for the Miami Beach Real Estate market.
I have actually been thinking about this a lot lately because I have a few clients who are interested in purchasing in very specific buildings and are set up on my customized data feeds. Whenever there is activity in that building, they are alerted via email. When I go to show the property if it is a REO, I usually run in to a lot of other agents showing the same property and then I hear all of the “buzz”. Recently I was showing a client a REO property that had just hit the market, while showing, I was told that it already had 12 offers. That was within a couple of days.
The following data is based on the SEF MLS & is only for condos/town-homes.
In Miami Beach today there are 75 listed REOs
In Miami Beach today there are 74 REOs under contract.
Over the last six months in Miami Beach 102 REOs sold.
Closed data for Miami Beach
for REO condos over last 6 months
|
|
| |
Beds |
Baths |
SqFt |
Listing Price |
Selling Price |
SP/SqFt |
DOM |
| 4 |
4 |
2,752 |
$829,900 |
$800,000 |
$521 |
531 |
| 0 |
0 |
349 |
$34,500 |
$37,000 |
$53 |
0 |
| 1.32 |
1.47 |
968.07 |
$211,478 |
$200,919 |
$201 |
82.51 |
| 1 |
1 |
912 |
$164,900 |
$155,000 |
$195 |
64 |
|
So based on the above information, the average foreclosed Miami Beach condos are taking approximately 82.51 days to close (over the last six months). Some times I am not so crazy for “general” Days on Market data because if a property is listed with one agent and then re-listed with another, this data is reset. It also doesn’t really account for some properties that are just “hanging out” on the market. I think it’s better to be more “building” specific because Miami Beach condos are definitely “area” and “building” specific. You could have one building that is getting $500,000 for a 1 bedroom and then the building right beside it $150,000 for a 1 bedroom. You cannot really group all of that data together because there are many factors to consider. Obviously the above graph, represents all of that data together. I think if you really want the best data, go building specific and then you can compare outside of that building to similar buildings in the same area.
So let’s look in more detail at ”building specific” and see the differences in Days on the Market and more specific market data. This is just a random sampling of some buildings that have enough data to complile a list. Data changes daily.
In the Floridian located
in the South Beach area of
Miami Beach
REO PROPERTIES
4 active
2 under contract
4 closed over the last six months
45.6 is the average days on the market over the last six months
In the Mirador located
in the South Beach area of
Miami Beach
REO PROPERTIES
3 active
3 under contract
11 closed over the last six months
37.1 is the average days on the market over the last six months
In the Waverly located
in the South Beach area of
Miami Beach
REO PROPERTIES
4 active
3 under contract
3 closed over the last six months
35.67 is the average days on the market over the last six months
In conclusion….It’s good to see that these properties are moving & it’s always very important to break down the data specifically to your general area and be “building specific” too.
The compilation of listing and market data information is provided by the REALTORS Association of Greater Miami and the Beaches. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental.
I do my best to double check for accuracy, however I am human and errors can occur. Please contact me if you find something that doesn’t look correct and I will be happy to look into it and correct if necessary.
