Real Estate Darwinism

Local 10 News features Miamism’s take on the Miami Beach Luxury real estate market.  I was interviewed by Julie Summers on Friday regarding an article I posted about discrepancies in Miami Beach Luxury Real Estate list versus sale prices.

Miami Beach Luxury Real Estate Sales - September 2008

Of course the media will always try to sensationalize the news - so I will give you the findings of my research to see if it is true that “Housing Crisis affects Luxury Home Prices“.

From my article above, there were obvious discrepancies between list and sales prices in September in the Miami Beach Luxury Real Estate market. But the purpose of that article was to present a question to our readers - were September numbers a fluke? or is that a trend we will begin to see?  I decided to do a small study on Luxury property stats to see what the real numbers are instead of an isolated month.  Here’s what I came up with:

In 2007 - There were 91 Miami Beach Luxury Homes sold in the price range of $1,420,000 to $16,400,000 -

• The average percent difference between list price and sale price in 2007 was 12%

• The average list price per square foot was $718

• The average sale price per square foot was $629

In 2008 - There have been 70 Miami Beach Luxury homes sold in the price range between $1,000,000 and $13,100,000

• The average percent difference between list price and sale price in 2008 has been 12%  (no difference from last year)

• The average list price per square foot is $806 (quite a bit higher than last year)

• The average sale price per square foot is $712 (HIGHER - prices have increased)

In 2007 - There were 162 Miami Beach Luxury Condos sold in the price range of $1,110,000 to $12,000,000

• The average percent different between list and sale price in 2007 was 9%

• The average list price per square foot was $950

• The average sale price per square foot was $852

In 2008 - There have been 153 Miami Beach Luxury Condos sold in the price range between $1,002,000 and $12,300,000

• The average percent difference between  list price and sale price in 2008 has been 11% (slightly higher than last year)

• The average list price per square foot has increased to $1021

• The average sale price per square foot has also increased to $910

Remember that stats are just that, and as much as I like to play with numbers and give you statistics, you cannot generalize.  These numbers are provided to give you an overall impression of the Luxury Real Estate Market, but it’s important for you to study each particular situation individually.  Miami Beach Luxury Condos for example are very particular because you cannot compare sales in Apogee to Bentley Bay for example - you need to know each building, the historical numbers and each seller’s situation.

If you are a Miami Luxury buyer, it’s good for you to know that there ARE sellers in distress and as I said in the interview, Foreclosures in the Luxury Market which is INSANE!  But don’t assume that everyone wants out and is willing to dump their properties.

I also pointed out that there are a lot of cash buyers from Europe and South America - we are currently working with French, Italian, Venezuelan and Russian clients willing to pay cash if the right property comes along.

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Last year I asked Miamism readers to send fun Halloween photos to be featured here in our Miamism Fridays series. I want to share a couple of those with you again together with some fun Halloween posts from across the blogosphere - (that’s the inside term for the crazy world of blogging).

The first photo was sent in by Miami Real Estate clients, Alison and Adrew Cripps - a classic!

This on was shared by @gotbob from Focus On Frederick

Now some fun Halloween articles that are MUST reads:

• Laurie Manny from Long Beach, CA - Your LAST Home - A Little Halloween Madness

• Mariana Wagner from Colorado Srpings, CO -Manitou Springs Homes: The “Haunted” Briarhurst Manor on Ghost Hunter’s LIVE This Halloween

• Jay and Monika McGuillicuddy from Southern New Hampshire, NH - Atkinson NH Trick or Treat

• Teresa Boardman from St. Paul, MN - Friday Halloween Addition

• Lani Anglin-Rosales from Austin, TX - Scariest Haunted House in America

Have a SAFE and HAPPY HALLOWEEN!!

from your favorite Miami Beach Real Estate Resource.

Owners of Long Beach Homes have a unique opportunity to contribute to the environment, go green and conserve water. 

Did you know that most homeowners over water their lawns by 30% to 300%?  That’s a whole lotta wasted water folks!  I have to admit, I’ve been guilty of doing this myself on occasion, it’s just so nice to have a lush, green lawn and it shows a real pride in Long Beach home ownership.  With the economy in shambles and water in short supply and sporting a hefty price tag, now is a good time to think of creative ways to both conserve water and money in our Long Beach Homes. 

Ric Romero of ABC Eyewitness News reports: Rob Patten of Agoura Hills lives on 3/4 of an acre.  His water bills have been coming in at over $300 monthly, a staggering number which made him decide to do something about it. After installing a new gadget called Cyber-Rain he has been able to reduce his monthly bill by about $100 and conserve a fair amount of water at the same time.  See How it Works.

Cyber Rain XCI is an 8 zone sprinkler system which claims to save homeowners 30% to 70% on their watering bills through the use of their PC and automatic weather updates from the Internet by automatically adjusting the amount of water usage based on weather and seasonal conditions.  It even provides the ability to check your water usage on your computer.  Ingenious!

Jonathan Neidnagel, CEO of Cyber-Rain claims that this system can pay for itself in 3 or 4 months.  Priced at about $295 this is not a cheap system, but may very well offer the best return on the investment and is a wonderful green contribution to the environment. Read more about this product and the effect it can have on our Southern California community over at the Cyber-Rain blog. 

A big thanks to my friend Joe over at the Sellsius Blog for finding this great gadget. 

Key Biscayne Real Estate, although geographically similar to Miami Beach Real Estate, is in a league of its own.  Don’t misconstrue this to mean that Key Biscayne is better than Miami Beach; it means that people relocating and looking to buy Key Biscayne Real Estate do it for very particular reasons.  To start with it is a self sufficient island with all the amenities and comforts available.  From great schools, world-renown resorts and restaurants and recognized architecture.  Top notch events like the Sony Ericsson Open formerly known as the Nasdaq 100 Open Tennis Tournament are held here every year and the island is surrounded by the best beaches with amazing views of The Miami Skyline, Miami Beach, Stiltsville, Biscayne Bay and The Atlantic Ocean.  Key Biscayne Real Estate has historically held its value even during the worst down markets.

980 Mariner Drive - Key Biscayne, FL  33149

Listed for $5,990,000

Exquisite and refined 5 bedroom / 5 bathroom waterfront home.  Tastefully rebuilt in 2000.  Quiet cul-de-sac.  Top of the line kitchen.  Beautiful marble floors.  Windows and doors are hurricane resistant.  Cathedral ceilings, private master suite, fully equipped dock.  A must see!

The MLS description does not do this home justice.  It was built in 1969 with the typical practical, open floor plan of the period, but totally updated to today’s standards with marble floors, impact windows and subtle, minimalistic features.  It is a canal-front property which offers protection from the elements but can still house large watercrafts…..and is located in prestigious Key Biscayne, just South of Miami Beach and Fisher Island.

Features:

• 3,119 square feet of living space
• 93 X 150 square foot lot (14,070 square feet)
• 5 bedrooms / 5 bathrooms
• waterfront
• built in 1969
• pool
• open porch
• Master Suite

**property information courtesy of South East Florida Multiple Listing Service and Fortune International Realty **

Investing in Miami Beach Real Estate is no easy task, especially in a down real estate market.  How can you, as an investor, make sure your purchase venture is sound?  How do you know which areas offer better returns historically in Miami and how to deal with all the intricacies of a Miami real estate transaction?

We deal with a lot of investors, let’s face it - most of our clients are investors from Europe, South America, Canada and other parts of the United States.  Whether you are buying a Miami bank-owned property to fix and flip, a Venetian Island single family home to rent while the market turns around, or a South Beach vacation home to enjoy part of the year - it is crucial that you scrutinize every aspect of the investment and make sure you leave no stone unturned.

Choose the type of Investment

First you must choose the type of property you want to invest in - single family home, commercial property, waterfront condo, etc.  We will help you analyze your needs and study your options to best meet your personal and investment goals.  Some factors involved in making a decision have to do with usage, renting, and price range.

Where should you buy?

Once the type of property is identified - area and location must be chosen.  I can tell you that we are working with French investors buying a single family home in Surfside, Venezuelan investors buying a commercial property in Coral Gables, Italian investors buying a vacation getaway in Fisher Island….the list is endless - it is our job to help you study all the options.

How do you know if the investment is sound?

Finding the property then becomes the easiest part - the job actually begins after a particular property is identified and you are under contract.  I like to write about my forte in the business because being an architect gives me an edge that our clients find extremely useful.  When I visit properties with you, I make sure you see everything I see - I point out defects in construction, materials used, construction methods and pros and cons of buying that particular piece of real estate.  You will feel that you are seeing each and every property with your architect, putting your best interest before anything else.  Our clients will confirm that on many occasions, no matter how much they have liked a property, I have recommended that they walk away.  Emotions are separated from the transaction in order to make sure you are making a good decision.

Inspections

Do not assume that the only properties that have to be inspected are single family homes because there is no condo-board to protect you from “developer” or “building” flaws.  Although single-family home inspections are more complete than apartments, it is important to also complete building inspections for individual condos to make sure plumbing, electrical, air conditioning and appliances are in good condition.  Even if the condo is brand-new, it is crucial for these inspections to be thorough.

We recently helped an American Investor with a walk-through of a new Miami Beach condo.  He had contacted us 2 weeks before the walk-through asking if there was anything he should look out for during the walk-through and I offered to go with him in order to document any deficiencies.  Here’s what we found in his new condo:  Floor outlets were not property installed, there were missing ceiling fixtures, GFCI outlets were installed incorrectly in kitchen, windows were not sealed, there was evidence of puddling water in the balcony, the kitchen sink was missing a shut-off valve. There was a floor tile that was improperly installed, and a couple of other items - when I was done with the list, our client stood in front of me and said, “Do you realize that if you would not have come with me, all those items would have been missed and it would have meant more out-of-pocket money for me?….thank you!".

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