Another Interesting Real Estate Experience--Miami

[MiamiCondos]

As a realtor I see this exact behavior every day. You are obviously smart enough to see right through it. Comps are comps and facts are facts. Every seller is entitled to ask whatever they want for their property and the market will let them know whether their price is realistic or not.

I think you are absolutely correct about a correction coming our way. It sucks for my business right now as I tell my condo buyers to wait (unless they absolutely need to buy right now), but I am confident that prices will come down further and even if they won't, they are definitely not going up in the near future.

As for sellers being present at showings, there's really no hard and fast rule about it. Just about every realtor wants them to NOT be present, but some just can't be convinced to leave. If they are around, I recommend not talking about the property at all in front of them and discussing any observation with your realtor in private after the showing.

As for appointments, again you are correct. Some sellers can't be bothered to show, so it's better to bypass them as they would likely be difficult in negotiations as well. 45 day close is pretty standard if a mortgage is involved so that should not be an issue.

[MiamiCondos]

Originally Posted by rnc2mbfl

FWIW, Miami's market peaked way before 2008. I want to say that 2005 was the peak but I could be wrong. By 2008, Miami's market had already fallen.

The peak was Summer 2006....

[Lusiphur]

Originally Posted by elchevere

Saw a beautiful unit at a building I like in Brickell last week, though ridiculously overpriced for now based on recent comps….without starting negotiations, the sellers agent claims that "luxury buildings have the ability to defeat the market because of the unique buyers who understand what they are buying" (yeah, sure--save your bullcrap for some moron still living in San Diego....if that's the case, why was a person able to purchase a unit 4 floors higher in the same exact location of the building for $400K less than they are currently asking for this unit ??...so much for that theory). I also ran into a person whom I thought was the owner of that unit, at the gym, who was present during the viewing last week. Turns out she is a renter and she told me her lease runs through November with a clause stating she cannot be kicked out before then. Very surprising the sellers agent did not mention this.

An owner at another unit in the same building has cancelled a viewing for a second time and requested a showing after April 2....tell you what, get back to me when you are serious about selling.

2 conclusions:

1. Seems as though owners are not that motivated or serious to sell and now I understand why units at this building are on the market 6 months, 1 year, or longer. Very strange way of doing business compared to other states I have conducted real estate transactions.

2. If and when I make an offer, I am going to insist on a 45-60 day escrow period to give my lender and escrow attorney more than ample time to review pending litigation, building defects, financial health of the property/reserves, adjacent future building projects and permits etc. given how nonchalant/honest people in Miami are when it comes to disclosures and withholding information.

It will be a pleasure making a lowball offer to an owner in another 6 - 12 months who seems to think “this time it’s different” and that Miami is immune to further corrections at a time when (1) rates are rising (JP Morgan Chase is calling for another 4-6 hikes over the next 18 months), (2) LATAM buyers are in hibernation (3) high season will be over in a month with the slower summer selling season approaching, and (4) there is an inventory glut with more to come on market…..even my extremely wealthy friends in Palm Beach, who have a second house for sale in Jupiter for $37.9M, have stated sales of homes in Palm Beach have stalled and the last time that happened was in 2008 at the peak of the market (and we know how that turned out--if that market is not immune to corrections, no market is).

BTW...is it common for the owner and/or resident to be present during viewings?...almost all have been at the viewings I have gone to. It was quite common for the owner to leave the property in other states I have lived when someone came over to view their property with an agent present...is it because of the high distrust level in Miami and paranoia of something being stolen from the property??...you folks definitely do things differently here.

The market started to cool about 3-6 months ago, and that's starting to be reflected in a lot of the homes that have been on the market for a while, but a lot of new listings don't quite get how big a correction this is yet. We're going to be looking at average discounts of up to 50% off of this summer's prices by next summer on properties over $1MM. Sellers don't want to admit it yet, but they'll get there eventually. I'm actually viewing homes that are a quarter to half a million above my current price range knowing that they'll be right in the sweet spot when I'm ready to buy.

[IRebateMyCommission]

Originally Posted by Lusiphur

The market started to cool about 3-6 months ago, and that's starting to be reflected in a lot of the homes that have been on the market for a while, but a lot of new listings don't quite get how big a correction this is yet. We're going to be looking at average discounts of up to 50% off of this summer's prices by next summer on properties over $1MM. Sellers don't want to admit it yet, but they'll get there eventually. I'm actually viewing homes that are a quarter to half a million above my current price range knowing that they'll be right in the sweet spot when I'm ready to buy.

You're absolutely right! and if on top of that, you work with an agent that we'll rebate you his commission, you'll will save thousands more.

[Marc Middleton]

Originally Posted by IRebateMyCommission

You're absolutely right! and if on top of that, you work with an agent that we'll rebate you his commission, you'll will save thousands more.

Nice plug for your business

[WrongStreet]

Originally Posted by Marc Middleton

Nice plug for your business

Nice grammar too

[meanmrmustard]

I have been trying to sell my home since May. It seems like prices for single family homes has cooled down at least in my area in south Palmetto Bay.

[Marc Middleton]

Originally Posted by meanmrmustard

I have been trying to sell my home since May. It seems like prices for single family homes has cooled down at least in my area in south Palmetto Bay.

PM me your listing and I'll take a look and give you my thoughts real quick.

[ruski]

Originally Posted by IRebateMyCommission

You're absolutely right! and if on top of that, you work with an agent that we'll rebate you his commission, you'll will save thousands more.

We'll or will ?

[IRebateMyCommission]

Originally Posted by ruski

We'll or will ?

oops typo!!