Affluent Buyers Reviving Market for Miami Homes

you'd better hurry, Steve.... Ft Laudidah is more desirable than Miami

I'm revving up the scooter now....

SOME GOOD QUOTES

“People thought it would take at least a decade to get back to this point,” said Peter Zalewski, founder of Condo Vultures, a real estate consultant.

“The Brazilians walk in, they don’t even negotiate,” said Mr. Dezer, who said he would announce two new projects by the end of the year. “It’s a no-brainer for them.”

“People should thank the foreclosure mills,” said Mr. Zalewski, referring to the law firms that brought about freezes in foreclosures when they were caught using illegal methods. “They gave the whole market a reprieve.”

Mr. Stern is suffering the consequences of better times. The landlord on his high-rise rental finally managed to make a deal with the bank to sell it for less than he owed. Last week, Mr. Stern had to move.

His old place, a three bedroom, was $1,300 a month. Across the street, he is paying $2,179 for a two bedroom. “I’m downsizing my space by 30 percent yet spending 50 percent more,” he said.

Just saw a short-sale in Ft. Lauderdale, $97k for 2,500 square feet, 3 bedrooms, 3 bathrooms, townhouse.

You can rent there without a security deposit.

Don't waste your time and angst on a short sale if you can find a nice REO.

Not much difference between REO & short sale, except REO takes more time.

REO's trade at bigger discounts 20% vs 15 on the short.

No, REO takes much less time once it's been listed by the bank, at an offer price pre-agreed by the bank. It pretty much goes through as a normal sale, but from a seller with no emotional attachment to the property.

Despite what broker's might say, there are no pre-approved short sale prices, except possibly when a buyer pulls out at the end of the process and they re-list. Short sales are a big waiting game to see if the bank will buy the seller's sob story, will accept the agreed upon price (only after the seller does [emotional attachment plus short-sale specialist's guesstimate of what will fly], will accept the seller's financials, etc. And sometimes it ends with a "no". Sometimes the seller changes his mind. Sometimes a better offer comes along and shenanigans ensue. Et cetera.

A big difference is that once a bank picks a sell price, they (seem to) have a price-drop schedule below which they won't go. So 5% drop per month, or whatever. Try try again if they reject your first offer.

In both cases, the buyer might have had no money to make repairs and improvements after easy-credit overextending buying at bubble prices ... so you might have some catching-up to do. But then you can choose Pistachio and Avocado paint instead of Tuscan Gold and Burnt Sienna. Of course, renting without a security deposit allows you to do that anyway.

And short sales must be publicly listed for a certain time to see if bidding wars will occur, so no private arrangements will work. That might only apply to mortgages held by certain entities, like FHA or whatever.

My plan is to swoop in with cash. Banks don't balk at cash.

Well, nice info, but statistically REO'S clear at lower prices than short sales, which intuitively makes sense considering REO is last option for bank

Well, nice info, but statistically REO'S clear at lower prices than short sales, which intuitively makes sense considering REO is last option for bank

alan has it right on short sales - there's no guarantee of the price - and if you swoop in with cash, the seller's bank could say, great, so you can pay us what this jerk owes us and we'll be happy to let you have it, since you're not short on cash

In "sand state" markets, EVERYONE's swooping in with cash, especially from other states. Banks are jaded.

A possible advantage to a short sale property is that it might have been better maintained -- seller feels in control of process, and is less angry and destructive than someone facing foreclosure. That alone explains the sale price differential.

A new trend is sellers who want to short-sale, but refuse to release their financials to the bank that holds their mortgage. Total waste of time. Like 6 months, sometimes, and everyone can string you along during that. Of course, you also have the option of pulling out of the deal at any time before bank approves.

The storyline in those markets is that

1. The 50+ income-seeking crowd, nationwide, with a bit of investable money can't get decent returns from other investments, and feel that they can from rental properties at these low-seeming sale prices. And they can, optionally, leverage them later after paying cash and creating an income stream.

2. As local people lose the homes they owned, they become renters (at a huge discount to what they had been paying in PITI + upkeep), so rents are creeping up. [of course, many probably move in with relatives instead, but I'm just telling the storyline].

sellers who want to short-sale, but refuse to release their financials to the bank

sounds dumb, the banks are right.

Not new info... but just really incredible when you think about it in perspective...

"Gil Dezer, who co-developed the beachfront Trump Towers, saw 90 percent of the buyers in the project’s uncompleted second and third buildings abandon their deposits in the crash"

"Miami prices are about half what they were at the peak"

how does anyone call 50% down revived?

And the truth is, Miami prices are still falling. As everywhere, very-high-end has picked up, but if the Tea Party has its way - and it will - that's not likely to last very long.

So we all agree that apt23 was a greedy idiot for buying in Miami?

Was interested in a short sale in Miami Beach two months ago. Offered cash full asking price. Seller took it off the market. Short sales are difficult. Seller really doesn't want to sell. Does anyone know a good real estate agent down there? The one I used was horrible.