Tips to make your real estate buying experience a smooth one
EWM continues to sell an enormous amount of real estate despite low inventory. Our Coral Gables office alone did over $20 million this week. We had 23 sales and only 14 new listings so if you are ready to list, give me a call. Rentals are in short supply as well.
All I can say is “wow”. Our Coral Gables EWM office had an AMAZING week, with a grand total of $39,733,888 in sales and leases. There were 25 sales, 8 of which sold at asking price and 3 of which sold over asking, and 21 leases. Still doubt that Miami is a place where people want to move and invest? Doubt no more. With all of the cultural activities, port expansion, addition of more cruise ships, technology start ups, and the relatively low prices, Miami real estate is in high demand.
All I can say is “wow”. Our Coral Gables EWM office had an AMAZING week, with a grand total of $39,733,888 in sales and leases. There were 25 sales, 8 of which sold at asking price and 3 of which sold over asking, and 21 leases. Still doubt that Miami is a place where people want to move and invest? Doubt no more. With all of the cultural activities, port expansion, addition of more cruise ships, technology start ups, and the relatively low prices, Miami real estate is in high demand.
I just received yet another e-mail on a new construction project; this one is coming to Coral Gables. It seems hard to believe that we went through a MAJOR real estate crash, with many of our prominent developers themselves involved in foreclosures of their projects, just a few years ago. It also seems hard to believe that there are so many new developments selling their projects, when foreclosure activity in Florida is leading the nation. Is this a contradiction in the real estate market, setting us up for another dip? Not necessarily.
New projects extend from the Gables all the way north to the Broward county line. They cover Coconut Grove, Brickell/Downtown, Midtown, South Beach, Mid Beach, North Miami Beach, and Aventura. Pricing starts from the low $200,000’s in the Gables to the several million for those projects in the Grove, Miami Beach and Aventura. Based on what I am seeing, buyers are definitely leaning toward newer, more modern buildings and inventory in newer buildings is extremely tight. Builders are using a formula more commonly used in South America, where there is no financing, and the buyer pays a significant amount of money down at various stages of the construction process. The range in starting prices, demand for new buildings and the new purchasing requirements make for a bit more stability than the previous building boom.
What does all of this new construction mean if you are a buyer? It means that you will have more options in a given price range. You will be able to choose between existing units where you know exactly what you are getting and one that is under construction that you can finish to your specifications. Check to see how many new projects are going up in the area you are looking in and what the price ranges in the different development are. Too much supply of the same type of property could point to price decreases or stagnation.
If you are a seller of an older property in an area where new projects are going up, it means you will be competing with projects that are newer and offer more amenities than yours. Make sure you know your competition and highlight your property’s positive attributes. Many older units tend to be larger or offer more closet space than many of the newer construction projects.
I have had several long-time customers ask me what I think is going to happen to the Miami real estate market come January. Although I don’t have a crystal ball, and the real estate market in Miami in general has been doing well with inventories down and prices up, with bidding wars happening as multiple offers come in, I decided to use a building that I am currently working on to throw a bit of a reality check into the current market euphoria.
In October of 2011, one bedroom units in this building were selling for between $45,000-$50,000. The last sale this year was for $90,000 and there are multiple offers on a foreclosure listed for $99,900. According to property tax rolls, nine out of the 39 total units in the building are in some stage of foreclosure. Whether or not any or all of them will go into foreclosure, short sale, or have a loan modification worked out, is yet to be seen, but if you look at the iMapp, Inc. snapshot of what is going on around this building, I have to believe that there are still going to be buying opportunities out there next year and that prices could go down. All of those little hammers are properties that are in the foreclosure process. Since the process takes over a year, where these all are in that process and how fast they come on the market will all come into play in the supply and demand cycle of 2013.
Not all markets look like this. Brickell has a lot less hammers. If you are a buyer, find out what the foreclosure map in the area you are considering purchasing looks like. Don’t be discouraged, just be realistic in your offer and your expectations as to where the market really is. If you are a seller, you also need to look at the map in your area. The map, along with relevant sales in your area, will help you set your list price in a range where your property will sell. Whether you are looking short term or long term, your perspective on where the real estate market is headed in 2013 depends on whether you are a glass half full or half empty person. Oh, and then there is the fiscal cliff…. Where do you think Miami’s real estate market is headed?
This beautifully updated north Pinecrest home is ready for your personal touches. Granite kitchen counter tops, accordion hurricane shutters, 3 year-old roof, refinished pool, and crown molding throughout, are just a few of the many improvements that make this a great buy. It is located on a builder’s acre corner lot in prestigious north Pinecrest, walking distance to Pinecrest Elementary, Pinecrest Gardens, the Pinecrest Community Center and Library and Wayside Market.
Black Friday brings out buyers looking for bargains and buyers looking for Miami real estate investment properties are here in droves. While most people are enjoying time with family and friends, Realtors are busy selling properties. Driven by news reports of increasing prices, decreased inventories, and increasing rents both local and foreign buyers continue to purchase Miami real estate for investment.
The top places where my buyers are looking, not in any particular order:
These neighborhoods are all located near public transportation, restaurants, entertainment and shopping, and all of them are in demand with people looking to rent.
Tuesday night, CBS 4 reported on a homeowner whose house has been taken over by squatters. According to the story, the house was sold and when the Realtor went to the final walk through before closing, she found people living in the house. The people living there claim they were duped and rented the property.
During the height of foreclosures, many properties had sqatters move in. This house, however, was not in foreclosure, was actively listed with a real estate agent and had probably had activity with showings and, most likely, inspections. The owner had to hire an attorney. The “tenants” have 40 days to move out.
Watch the video and let me know what you think.
The Village of Pinecrest is hosting a town hall meeting at Pinecrest Gardens to discuss the proposed MDX US 1 Express Toll Lane project. Anyone who travels on US 1 (also known as Useless 1) from Miami to communities south, has experienced the frustrating traffic and knows that relief is needed. As proposed, the current project would address traffic from Dadeland South to Florida City and would require overpasses the height of Metrorail be built at intersections along the route. If the goal is to move traffic off of US 1, wouldn’t a much more progressive plan be to build the 21 mile South Link extension from Dadeland South to Florida City?
Several studies have shown that commute times and access to public transportation are important factors in the home buying process. Millenials, individuals between the ages of 17 & 35, especially have shown a preference for communities that rely less on cars for transportation.
I lived in the San Francisco Bay Area for a long time and they have an amazing public transportation system. Many who have moved from Boston, New York, the DC/Virginia area and Europe, often comment on the lack of public transportation. Do you think Miami should try to move away from the car and expand on it’s public transportation system?
The 2012 National Association of Realtors Profile of Home Buyers and Sellers the 8 factors are as follows:
Many of our South Florida neighborhoods meet most or all of these!