The level of interest and calls from former (and many new) clients looking to purchase Foreclosure and Bank Controlled condos as well as Short Sales has significantly increased in the past few months. The strongest downward price pressure is occurring due to distressed and short sales. However, the high end of the luxury condo market, particularly for the five star buildings in the South Beach area (Icon, Murano Grande, Murano at Portofino, Continuum South Beach, Apogee and Portofino Tower) continue to experience strong demand and prices still command a strong premium in terms of overall $/S.F.
Purchasing a Bank-owned (usually referred to as REO) or short sale property is usually a lengthy and complicated process with no guarantee of success in actually getting free and clear title for the buyer. The key is working with a real estate professional who knows the parties involved in the transaction (attorneys, banks, other realtors, and misc. creditors) so that the property can be successfully acquired by the interested buyer. Due diligence, follow up with large volumes of paperwork, and often times complex negotiations with lenders is essential for ultimate success.
If you are a potential short seller, this is especially important to keep in mind in choosing a listing agent, as NOW is the time when savvy buyers are purchasing spectacular waterfront condos in the above mentioned buildings (as well as many others).
A quick look at a few more prominent closed sales (& short sales) in some of the premier condo buildings in the South of Fifth Street area of Miami Beach:
Continuum on South Beach – South Tower #2703
Continuum South Beach Unit 2703
Beautiful unit on a high floor. Great condition! Stunning views of the Bay, Government Cut, Ocean and Downtown Miami. Several upgrades throughout, including a modern Master Bathroom.
Original Asking Price: $2,395,000
Sold: $1,375,000 ($778/SF)
Closing Date: 12/08/08
Price Drop (original asking vs. actual sales price): 42%
Continuum on South Beach- North Tower #2301
This massive two bedroom unit is in a corner location, with walls of glass looking out towards the beach, Government Cut and Downtown Miami.
Original Asking Price: $1,850,000
Sold: $1,535,000 ($798/SF)
Closing Date: 02/18/09
Price Drop (original asking vs. actual sales price): 17%
Portofino Tower – #PH4306
Breathtaking views of the ocean from this 43rd floor Penthouse. South Beach, Biscayne Bay and Downtown Miami views. 2 large terraces.
Original Asking Price: $1,995,000
Sold: $1,600,000 ($678/SF)
Closing Date: 2/18/09
Price Drop (original asking vs. actual sales price): 25%
Murano Grande – #1606
Stunning 16th floor direct-bay unit at South Beach’s Murano Grande. A middle bedroom was removed, making this one of the largest and most-spacious 2 bedroom units in the building.
Original Asking Price: $1,449,000
Sold: $1,320,000 ($652/SF)
Closing Date: 1/28/09
Price Drop (original asking vs. actual sales price): 9%
Bentley Bay #412
DIRECT BAY VIEWS of Star Island & DOWNTOWN Miami with extra large Balcony.
Original Asking Price: $539,000
Sold: $325,000 ($417/SF)
Closing Date: 1/28/09
Price Drop (original asking vs. actual sales price): 40%
Statistics from: The Southeast Florida Regional (SEFR) MLS
