When giving a Miami Beach Real Estate Agent the Marketing Exclusivity (Listing Agreement) to a particular property, what are some of the things that a seller should look for?  Successfully selling Miami Beach waterfront homes or condominiums requires QUALIFYING potential buyers and other real estate agents.

Why qualify potential buyers, and agents representing buyers, before showing a property?  Our #1 rule in real estate is to not waste time and to have a focused approach to marketing properties.  There's nothing worse than having a seller clean, get ready for a showing, uprooting their family, and have a buyer (perhaps with a buyer's agent) show up to a house or condo that is listed for sale, and decide that "it's not what they are looking for".  This leads to frustration, anger, and disappointment for all concerned, and demonstrates a lack of targeted marketing, as well as a breakdown in communication in the marketing and sales effort.

Therefore, one of the FIRST things we do is QUALIFY all buyers/real estate agents who inquire about a listing.  We QUALIFY all potential parties by asking about the price range of the buyer, what kind of home or condo they may be looking for (contemporary, traditional, size of property, waterfront or non-waterfront, etc.), and we ask the agent working with them how long they have been working with this client, and whether they have seen other homes or condos on the market.  For example, for a Miami Beach waterfront home on Palm Island, a listing agent should know if the buyer is interested in a guard-gated community, and if they are willing to pay a premium for this?  Also, the buyer's agen needs to know the minimum price point of their client, and make sure that they are financially qualified to purchase in the price range of a Palm or Hibiscus Island waterfront home currently on the market.

We realize this process takes a little extra time, effort, and diplomatic tact (especially with the real estate agent representing the potential buyer).  However, it is the feduciary duty of the listing agent to bring the seller QUALIFIED buyers, and to generate the best possible offer at the highest price.  As always, the goal is to have a pending contract that has a high probability of closing - otherwise the seller will be forced to place their home or condo back on the market, having wasted time, energy, and financial resources with an unqualified buyer!

The real estate agent's experience, marketing skills, and international resources are critical.  However, having just worked with a few HIGHLY qualified and cash-ready buyers ready to pull the trigger at Murano Grande, Icon South Beach, Portofino Tower, and Murano at Portofino, there is another criteria which I must now mention: basic competence and responsibility.

I noticed a complete lack of professionalism (negligence is a better description) on the part of a large number of listing Agents and/or Brokerage firms.  Disconnected phone lines, incomplete and inaccurate information on Multiple Listing for the condos that are on the market, voicemessages saying that the agent is out of the country / unavailable and NOT to leave messages, no voicemail pickup at all in three cases, no response to multiple voicemessages and emails, and sometimes a response days later that a showing can be arranged perhaps once per week and to contact the building front desk.  I experienced agents not showing up for appointments or having to pick up keys at the management office, and finding that the door would not open!  Once inside a few specific waterfront condos that are aggressively priced in the $1,000,000 range, we discovered an unkempt, and abandoned, dirty condos complete with foul stench, A/C turned off, and fallen down drapery!  I was left wondering if the individual condominium owners realize how poorly they are being represented in this BUYERS market?!?  Even the front desk staff, again specifically at Murano Grande, Icon South Beach, and The Portofino Tower, are grumbling about the laziness and irresponsiblity of these listing agents!

Only a very limited number of these waterfront condos are priced to sell, and those that are priced aggressively for some unknown reason seem to have negligent agents representing these REAL sellers.  The vast majority of the 100+ initial condos that come up in a Multiple Listing property search are often times overpriced, nowhere near the market / appraised value. In each of the above referenced buildings- there are only a few condos that are truly worthwhile and that a buyer would give serious consideration to making a reasonable offer based on recent closed sales comparables.

If you're a seller of real estate in this BUYERS market- I urge you to check up on your listing agent.  Call his/her phone number, look up your listed condo or home on the multiple listing service (easy these days via the web), see the pictures that are posted online, and if you are local BY ALL MEANS do check up on the listing.  Better yet- have a friend call or email your listing agent (or a cooperating broker) and ask to schedule a showing.  SEE FOR YOURSELF how the showing process is handled, and how your property is being presented to potential QUALIFIED buyers.   You may be in for a shock.

In the Miami Beach real estate market, a great strategy for negotiating the price of a home or condominium in a "short" sale:

If the home or condo is a "short" sale, where the market value is below the debt amount, then the negotiating process is fairly straightforward.  Especially for premium waterfront Miami Beach properties, the 2009 tax assessed values provide buyers with a fairly accurate "true market value".  This is the market value that banks will take into consideration when performing an appraisal (otherwise known as a Brokers Price Opinion).  If the property is in a highly desireable area (such as waterfront condos and homes in South Beach) then the buyer should consider that there will probably be multiple offers.  In this case, serious consideration should be given to increasing the contract price slightly ABOVE the tax assessed value.  If the property has multiple offers already, then I would advise submitting an all-cash contract at a slighly LOWER price.  Read about tax assessed values vs. real marked values comparison HERE

Example of a recently closed Miami Beach waterfront home "short" sale, this was an amazing Deal for  the Buyer:

Incredible Mediterranean estate located on over AN ACRE of prime waterfront property with over 100 feet on the intracoastal waterway. This large family home boasts over 6000 SF of living space, grand living room with cypress beam ceilings,gourmet eat in kitchen,formal dining room with fireplace,master bedroom with private terrace,tennis court,guest cottage and over 47,000 SF waterfront lot!
 
Sold Price: $2,500,000
Original “For Sale” Price : $6,500,000 (9/2007)
Previous “Sold” Price (1/1998) : $3,100,000 (3/2004)
Bedrooms: 6
Bathrooms: 6
House S.F.: 5,931 ($421/SF)
Land S.F.: 47,540 ($ 53/SF)
Closed Date: August 2, 2010
Total Time on "Pending Status": 197 Days (Bank Short Sale Approval Time)
Discount from Original Asking Price in 2007: 62%

Example of a closed Continuum South Beach Condo "short" sale:

Incredibleand completely unobstructed views of the Downtown Miami skyline from this Two Bedroom / Two Bath condominium with oversized balcony.  Almost every room in the condominium has amazing views of Biscayne Bay, Fisher Island, and the Intracoastal waterway.  Large foyer entryway with views from the moment you step through the entrance to the condo!

Sold Price: $1,160,000
Original “For Sale” Price : $1,550,000 (8/2008)
Previous “Sold” Price (1/1998) : $950,000 (10/2004)
Bedrooms: 2
Bathrooms: 3
Condo S.F.: 1,591 ($729/SF)
Closed Date: March 9, 2010
Total Time on "Pending Status": 65 Days (Bank Short Sale Approval Time)Discount from Original Asking Price in 2007: 25%

There are so MANY reasons why people want to live in Miami Beach:  The weather, the lifestyle, the Art Deco architectural diversity and beauty, the many new ultra luxury waterfront homes and condos, and the pure "fun" factor are just a few of the top reasons that come to mind.

Also, Miami Beach, and most especially South Beach's South of Fifth neighborhood, has become one of the most sought-after places to live in the world.  Recognizing this, the city of Miami Beach planned a multi-million dollar renovation of South Pointe Park, which was completed in 2009.  This extensive renovation included a completely new landscape with a variety of vegetation, Palm Trees, walkways, a multicolored nighttime light display along Government Cut, underground water fountains, the creation of elevated sand dunes, party facilities, and even a children's playground!  Additionally, a new Pier was constructed where you can walk out several hundred feet to truly experience the beauty of the Atlantic Ocean.  South Pointe Park is surrounded by the several ultra-luxury condominium buildings - The Continuum South Beach, Apogee, The Portofino Tower, The South Pointe Tower, and The Murano at Portofino.  These residents can often be spotted taking advantage of the Park's restored beauty and vibrant atmosphere.

Top Ten Things to do in South Miami Beach:

1.   Jog or walk through the many trails and paths- especially at night to see the multicolored light show along the Intracoastal Waterway.

2.   Bring a Yoga Mat and attend one of the free morning and evening yoga classes sponsored by various local fitness centers ON THE BEACH!

3.   Watch incredible Ocean and Intracoastal waterfront sunrises and sunsets.

4.   SOCIALIZE with the many locals who bring their dogs to the many local parks for morning and evening walks.  A little known fact is that many locals organize regular get-togethers for other dog owners.

5.   Watch the amazing sight of cruise ships leaving the Port of Miami around 5pm Friday - Sunday (especially in High Season).

6.   Take a day trip to the Beach, most beachfront parks have easy beach access paths.

7.   Bring your kids, nieces, nephews, and any other young adult to play in the water fountains inside most South Beach parks.

8. Go to the many waterfront restaurtants with views of Fisher Island, the Ocean, and the downtown Miami skyline

9.   Enjoy the incredible high fashion shopping experience in open air Pedestrian Malls such as Lincoln Road Mall, Bal Harbour Shops, and along Collins Avenue.

10. Celebrity watch!  Recently, I spotted Gloria Estefan, Rosie O'Donnell and their families enjoying a spectacular year-round weather!

More information on specific South Beach neighborhood and Miami Beach lifestyle Top Ten can be found at the below linked previous blog posts:

Miami Beach's South Pointe Park
Why I Love South Pointe / The Continuum
Portofino Tower / South of Fifth Neighborhood Top Ten
South of Fifth Neighborhood / Icon South Beach Top Ten

Initially, The Yacht Club at Portofino was developed and conceived by The Related Group as the first watefront luxury rental buildings South of Fifth Street in the late 1990's.  However, as the real estate market began to heat, The Related Group added a few extra luxury features (such as granite counter tops, washer/dryers, better fixtures, etc.) to the individual units and The Yacht Club was changed from the initial concept of rental property to entry-level luxury waterfront condominiums with a very liberal rental policy.  The condominium documents allow owners to rent their individual units down to a monthly basis- if desired.  This means that The Yacht Club Condominiums are not for everyone, as the building is a very busy property, with a mix of long-term residents, short term tenants, and annual renters comprising a mix of over 360 individual condominiums.  However, almost everyone I know who has lived at The Yacht Club has enjoyed the experience and have very positive things to say about the condominium building.

The main benefits of living and owning at the Yacht Club at Portofino Condomiumiums:

• - Monthly rental policy- allowing for flexibility and strong income potential
• - Low condominium delinquency rates
• - Fantastic South of Fifth neighborhood location directly on the water
• - Great entry-level price points (surrounding buildings such as The Murano at Portofino, Apogee, Murano Grande & Icon are much more expensive)
• - Tasteful and contemporary waterfall lobby designed by award winning designer Tesi Garcia
• - On-site rental office for easy property management
• - Oversized Pool deck with waterfalls, tennis court, jacuzzi, and resort-type amenities
• - Great mix of one, two, and even three bedroom condominiums
• - Large and well equipped gymnasium (with waterfront views)
• - Dock slips available in your backyard (via Miami Beach Marina)
• - Well maintained building with an experienced and stable on-site management and staff
• - Strong property value retention- even in the latest real estate downturn, overall values at the Yacht Club have held up better than in other similar category buildings
• - Incredible views of the downtown Miami skyline, Biscayne Bay, Fisher Island, and the Atlantic Ocean
• - Due to the proximity to South Pointe Park (almost at the southern tip of South Beach), just a five minute walk to the Beach!

View: Yacht Club Condos For Sale

I'd like to highlight the last month's closed sales of luxury waterfront condominiums in the South of Fifth Street area of Miami Beach.   Specifically, I'd like to point out and compare the gap (either premium or discount) in closed sales prices from the Miami-Dade tax assessed values of 2009.  The Miami-Dade Tax Assessor's office has made a significant effort in the past year to revise the latest tax market values with the ACTUAL reduced property values of the past few years.  Therefore, I'd like to compare the latest closed sales at The Continuum South Beach, Apogee South Beach, The Murano at Portofino, Murano Grande, and Bentley Bay to compare the actual sales from the tax assessed values.  All of the condomiums highlighted below are premier waterfront units with spectacular water views, and generally among the most desireable lines in the respective waterfront buildings in South Beach's South of Fifth area:

Apogee #604 - 6/18/10  Sales Price: $5,800,000 vs. Tax Assessed Value: $3,889,000 
(Apogee Sales Price Premium +49%)
Continuum North Tower #2701 - 6/18/10  Sales Price: $3,500,000 vs. Tax Assessed Value: $2,072,000 
(Continuum South Beach Sales Price Premium +69%)
Continuum North Tower #905 - 6/30/10  Sales Price: $1,200,000 vs. Tax Assessed Value: $733,000 
(ContinuumMiami Beach Sales Price Premium +64%)
Continuum North Tower #2902 - 6/30/10  Sales Price: $3,040,000 vs. Tax Assessed Value: $2,113,000 
(Continuum Sales Price Premium +44%)
Murano at Portofino #3102 - 6/3/10  Sales Price: $1,925,000 vs. Tax Assessed Value: $1,902,000 
(Murano at Portofino Sales Price Premium +1%)
Murano Grande #2601 - 6/23/10  Sales Price: $2,500,000 vs. Tax Assessed Value: $2,123,000 
(Murano Grande Sales Price Premium +18%)
Icon South Beach #1901 - 7/1/10 Sales Price: $1,490,000 vs. Tax Assessed Value: $1,091,000 
(Icon Miami Beach Sales Price Premium +37%)
Bentley Bay #1201 - 5/28/10  Sales Price: $750,000 vs. Tax Assessed Value: $863,000 
(Bentley Bay Sales Price Discount -13%)

It should be noted that for the newest South of Fifth buildings (Apogee and Continuum North Tower specifically), the Tax Assessed values tend to be low.  The premium prices being paid at both Continuum North Tower and Apogee indicate that these condo buildings are also among the most sought-after and highly desireable ultra-luxury properties.  The biggest price discount is most notably at the Bentley Bay, primarily due to this condo building's high maintenance fees and owner delinquency rates.

Premium waterfront properties (whether condos or single family homes) that are priced RIGHT continue to have strong buyer demand.  For waterfront condos in the South of Fifth area, we continue to see significant buyer demand- most especially from USA Northeast, South American, and select European buyers (most especially East European countries).