Foreclosure “Trick or Treat”

Filed Under Blog ·

In Miami, as in other cities with such a large number of foreclosures, there is much to be aware of when purchasing a bank owned or foreclosure property. Yes, buying a foreclosure is not for the feint of heart, so here is a general guide to common foreclosure tricks and treats -

Foreclosure Tricks:

The purchase price it too good to be true – The bank may have priced it below market to create competition and buyers will artificially bid up the price, and/or the property may require significant repairs or renovations.
The seller or bank offers to pay for your owner’s title insurance policy if you work with their assigned title agent – This may save you a couple of thousand dollars, but you still have the right to hire your own title agent that will consider your rights, concerns and needs.
You call to inquire about a property and are informed that it is a ”multiple” offer scenario - Do not let this dissuade you from submitting an offer, all offers must be presented to the seller.
I will get a better deal if I work with the listing agent – This is a shortsighted approach as most listing agents are acting as mere transaction coordinators and have no duties to you as a buyer. Find your own real estate practitioner to represent your interests.

Foreclosure Treats:

The initial asking price of a foreclosure is significantly above market value - Don’t make the common mistake of waiting for the price to become attractive. Submit an initial offer to the seller and they may counter-offer you.
In general, those properties that receive the least amount of interest have issues and require the biggest discounts – If you are willing to complete major repairs or improve a property, you may be in a good position to negotiate a significant discount to the original asking price.
There is a considerable amount of fallout, so monitor any property that you wish to purchase, even if it goes under contract - There are many purchasers out there just looking and making blind offers. It is not uncommon for a property to have two or three contracts in place before it actually closes, in particular when looking at properties over $200,000.
Cash is King - Sellers prefer cash offers and are more aggressive when negotiating the purchase price if your contract is not subject to financing or an appraisal.

Are you looking for a Miami or Miami Beach investment property at a deep discount? Are you looking for a discounted short sale or bank owned property? Ross Milroy of Miami Angel Properties, LLC may be reached at 305-673-5300 or info@miamiangelproperties.com.

November 27, 2009 by Ross · Leave a Comment

Sobe Condo at Flamingo Park

Filed Under Condos, Listings ·

PRICE: $305,000 CLOSED SALE $303,000

Description | This modern, bright and spacious corner apartment in a boutique South Beach building is offered at a very attractive price of $258 per square foot. Designed by an award winning architect, with a sleek European kitchen, granite counters, industrial fixtures, track and recessed lighting. This split bedroom unit also features bamboo floors, built out closets, frosted glass doors and a covered parking space. Call or email us today to view this amazing condo in South Beach -305.673.5300 or info@miamiangelproperties.com.

Address | 947 Lenox Ave, Unit 501, Miami Beach - map it

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November 27, 2009 by Ross · Leave a Comment

South Beach Art Deco Condo

Filed Under Condos, Listings ·

PRICE: $185,000 FORECLOSURE

Description | This fully renovated two bedroom two bathroom condo in a fantastic central South Beach location is offered at a very attractive price of $234 per square foot. With travertine marble floors, high ceilings, an open kitchen, new appliances, a faux fireplace, PLUS one deeded parking space, this unit is your perfect second home in South Beach. Walk to the beach, Flamingo Park or several restaurants within minutes of your condo. Call or email us today to view this amazing art deco apartment in South Beach -305.673.5300 or info@miamiangelproperties.com.

Address | 610 8th St., Unit 101, Miami Beach - map it

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November 23, 2009 by Ross · Leave a Comment

Distressed Pricing

Filed Under Blog ·

During the real estate boom from early 2002 through late 2007, the concept of “distressed” pricing was foreign to homeowners and real estate practitioners alike. The question today is not whether distressed real estate should be included when considering comparable sales, but to what extent?

There are several schools of thought in today’s distressed real estate environment. I consider the following to be relevant when pricing to either buy or sell in today’s market.

The first is the principle of substitution. If you have the ability to purchase a discounted short sale or foreclosed property, why would you pay retail? So long as there remains a pipeline of distressed homes in the market, the “new” market will continue to be the distressed properties.

The second school of thought is the lack of financing for the average buyer. Many think that once financing becomes more readily available, that the market will stabilize and pricing will return to normal.

Unfortunately, one has to also consider the creation of jobs and the positive affect that this will have on consumer confidence and spending. Therefore, once the unemployment rate begins to move downward and the credit situation improves, we will see a return to normal pricing.

So is distressed pricing here to stay in Miami? In the short term, yes, especially if you need to sell. However, in the long term, jobs will be created, the shadow inventory of distressed properties will disappear, and we will return to normal pricing.

November 21, 2009 by Ross · Leave a Comment

How important are Rental Restrictions when making that Condo Investment?

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The Atlantis, located at 1751 James Avenue in Miami Beach, which allows short-term rentals.

One of the many considerations when purchasing an investment condo or apartment includes the current rental restrictions of the building or condo project. These restrictions, if any, will be detailed in the Bylaws or Rules and Regulations of the Condominium Association.

So why is this important? The condo rental restrictions will affect your ability to rent out the property on a short or long- term basis, which in turn, may have an effect on the re-sale value and your use of the property.

What is long-term vs. short-term? In the State of Florida, a residential lease agreement may not exceed one year, therefore, we consider this long-term. On the other hand, for the purpose of this study, we considered a short-term rental policy is one where there are NO rental restrictions, so you may rent our your investment condo for a week, month or even just for the few days during Art Basel Miami Beach in December each year.

For the purpose of this study, we took a sample of closed sales of units in similar boutique condominium projects within the South Beach market, and looked at the average sales price per square foot over the past twelve months.

The first group, the long-term rental group, revealed a median sale price of $232 per square foot out of a total of a total of 49 closed sales. The second group, the short-term rental group, revealed a median sale price of $292 per square foot out of a total of 22 closed sales.

While you may prefer a long-term lease and have less time to manage a short-term rental property, it is clear that the re-sale values of the properties with no rental restrictions are significantly higher, or up to 25 percent higher, than those in the long-term category.

The data used to generate this blog post was gathered from the Southeast Florida Multiple Listing Service (“MLS”) and the Miami Dade Clerk of the Courts. The data in the MLS is deemed reliable but not guaranteed.

November 14, 2009 by Ross · Leave a Comment

Five Island Ave on Venetian

Filed Under All Else, Condos, Hot Picks, Hot Picks - Condos, Listings ·

PRICE: $244,000 CLOSED SALE $225,000

Description | This large one bedroom condo located on the famed Venetian Islands in Miami Beach is being offered at an attractive price of $248 per square foot. This amazing corner unit has been completely renovated with new plumbing, electric, kitchen, custom closets and bathrooms. Walk across the street to the Standard Spa or take a quick stroll to the Lincoln Road Mall. Call or email us today to view this amazing condo on Belle Island -305.673.5300 or info@miamiangelproperties.com.

Address | 5 Island Ave #4J, Miami Beach - map it

Download a full description (PDF):

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November 11, 2009 by Ross · Leave a Comment

Venetian Isles Condo

Filed Under Condos, Hot Picks, Hot Picks - Condos, Listings ·

PRICE : $370,000 PENDING SALE

Description | A phenomenal kitchen for the chef deep inside you. This home is stylish, high-tech, and the details are endless. The location is amazing on the Venetian Isles, opposite the new doggie-friendly Belle Isle Park, and just a quick stroll to Lincoln Road Mall. To view this property, please call us at 305.673.5300 or email info@miamiangelproperties.com.

Address | 9 Island Avenue, Unit 609 - map it

Download a full description (PDF):

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November 10, 2009 by Julie · Leave a Comment

South Beach Boutique Rental

Filed Under Hot Picks, Hot Picks - Rentals, Listings, Rentals ·

PRICE: $1,750 p/month RENTED $1,700

Description | This split 2 bedroom 2 bathroom condo is located on the top floor and features hardwood floors throughout, high-end kitchen finishes with granite counter tops, stainless steel appliances, upgraded bathrooms, plus full size washer and dryer. The boutique Cabana Condominium is a recently converted condo building with only 8 units and is just steps away from the Lincoln Road Mall or Flamingo Park. Call or email us today to view this fantastic rental in South Beach -305.673.5300 or info@miamiangelproperties.com.

Address | 1551 Lenox Ave, Unit 5, Miami Beach - map it

Download a full description (PDF): 1551 Lenox Ave Unit 5

November 9, 2009 by Ross · Leave a Comment

Alton Road Foreclosure

Filed Under Homes, Listings ·

PRICE: $429,900 CLOSED SALE $472,000

Description | This Miami Beach home sits directly opposite the beautiful Miami Beach Golf Course and is within minutes of Lincoln Road and the beach. With 5 bedrooms, 3.5 bathrooms, including a seperate in-laws efficiency and large pool, this property is a steal at the asking price of only $146 per square foot. Call or email us today to view this historic Miami Beach home -305.673.5300 or info@miamiangelproperties.com.

Address | 2210 Alton Road, Miami Beach - map it

Download a full description (PDF): 2210 Alton Road

November 4, 2009 by Ross · Leave a Comment

The Waverly South Beach

Filed Under Condos, Listings ·

PRICE: $200,000 PENDING SALE

Description | This one bedroom unit in the Waverly is perfectly located in South Beach. Just a short five minute walk to the Lincoln Road Mall, Whole Foods, the Venetian Isles or Flamingo Park, this residence has it all. This condo project is consistently in demand and one of the most sought after rental properties in the area. To top it off, this unit is on a high floor with fantastic bay and city views. Call or email us today to view this waterfront condo -305.673.5300 or info@miamiangelproperties.com.

Address | 1330 West Ave, Unit 2105, Miami Beach - map it