Market Update on South Coral Gables South of US1 West of Le Jeune and north of Sunset Dr.

One of my clients purchased a 3/2 in this slice of Coral Gables earlier this year and she wanted to know what the market has been doing. When she and her husband purchased, the competition was INCREDIBLE.  There were many offers on the house and the seller had listed with a flat fee broker who only put the property on MLS but had nothing to do with the handling of the transaction.  As a result, this seller would receive an offer, then tell every other buyer what he had received in order to pit the buyers against each other to get the highest offer possible.

Of course, this is completely unethical and no agent would have been allowed to behave in such a way. In the end, after a grueling Sunday afternoon of negotiations, my client prevailed over the other competitive buyers, who, it was rumored, had waited years for a house to come on the market on that street. Of course, we analyzed every house on the market and even wondered, was the offer too high?

Gables Slice
This precious sliver of Coral Gables is known for its quiet streets, prestigious addresses, and stellar school district, not to mention a location convenient to everything!

 

 

 

 

 

 

 

 

 

 

 

Since May of this year, there have been 53 closed sales in this subsection of Coral Gables and there are 9 houses currently under contract.

UNDER CONTRACT:

The least expensive of the pending (under contract homes) is 5626 Granada at $450,000.  To be clear, this was the asking price.  The actual sales price will not be known until the sale closes. This house was marketed as “land value ” with the following description: “As is, sold at land value. Construction has been vandalized and in bad shape. Can not be shown inside due to hazard. No certificate of occupancy.”

The priciest of the currently pending (under contract) homes is 6250 Granada at $1,350,000.  It was only on the market 12 days and went under contract in the MLS today.

CLOSED SALES:

Of the actual closed sales, the priciest was 5724 Riviera Drive for $4,000,000.

The least expensive was 6355 Maynada for $454,350 – this was a distress sale that needed MAJOR rehabbing.

THREE BEDROOM HOMES:

If we look only at 3 bedroom single family homes selling in the area, there were 28 sales from May 2013 to November 2013.

13 of the homes sold for less than $735,000.  These homes were on a single lot (5,000 in Coral Gables is considered a single lot) and/or needed major renovations such as roof, kitchen or bathrooms.

Of the 15 homes that sold for over $735,000, 7 were in my client’s neighborhood, between the Riviera waterway and Le Jeune.

Click here to see the 3 bedroom homes that sold between the Riviera waterway and Le Jeune from May 2013 to the present (November 8, 2013).

540 Gerona sold for $735,000 – while it is remodeled, it makes sense that it sold for this price as it is on a 6,250 Sq Ft lot

444 Miller Rd (definitely a comparable to my client’s home, except it is NOT on a corner lot and lot is smaller) sold for $725,000 unanswered questions would be the condition on inspections and whether there is anything that needs repairing/replacing

444 Marmore (larger than my client’s by 600 Sq Ft according to MLS… it is however on a smaller lot and not a corner lot) sold in July for $799,000.

5725 San Vicente (just four blocks away from my clients) has lovely curb appeal, is remodeled, has a one car garage and is also on a corner lot.  It has no pool but does have room for a pool.  It sold in June for $775,000.

411 Como Avenue (too large to be a comparable) sold for $920,000 in June.

417 Amalfi Ave (on a 5,500 sq ft lot) is newer construction has a one car garage and a pool and sold in July for $905,000.

5801 Riviera (not on the waterfront and too large to be comparable) sold in September for $1,050,000.

In conclusion, my clients did whatever it took to get the house that they wanted. Time and closed sales have shown that the price they paid was right in line with the market.  There is a very high demand for this area, much more so for a corner lot and a pool.  When we were preparing the offer we carefully analyzed all the recent sales and everything on the market and concluded that buying was less expensive than renting even at a price that (at the time) seemed higher than market value.  Turns out, in retrospect, that it was not.

I specialize in Miami Real Estate , in particular Downtown, Brickell, Midtown, Coconut Grove, Coral Gables, South Beach & surrounding areas.  I value technology, communication & your time.  If you would like to meet with me regarding a purchase or sale of Real Estate in Miami, you can contact me on my cell 786-663-4382 or at paula@greatmiamihomes.com.

Greatmiamihomes.com seeks to keep the public informed about Miami real estate market trends , new development projects, neighborhood information and, of course, great homes and condos for sale in Miami!

PAULA BARRERA

A modern agent for the modern client.

786.663.4382

 

 

What’s up with condo financing?

 

I have many clients interested in condos in Miami Beach and the downtown, Midtown & Brickell areas of Miami.  Purchasing a condo in Miami has its challenges because of lending restrictions on buildings.

A gorgeous view from the Icon South Beach courtesy of SEF MLS and listed by Zilbert Properties. List price $3,750,000

If you have 25% or more to put down on a condo, then you are free to look at any building as banks will approve a loan with minimal “review”.  This means, the bank will check YOU out, but they will not ask as many questions about the building you choose to purchase in.

Most of us, however, do not have upwards of a 25% down payment  laying around, therefore, we must apply for a FULLY REVIEWED loan  – meaning the lender has to review the legal and financial standing of the condominium before they will agree to lend.

In order to purchase a condominium with 5% or 10% down (or any percentage down up to 24.9%), a buyer must pay the condominium association of the building he is interested in a fee to get a “full review condo questionnaire” filled out.  This condo questionnaire tells the lender everything they need to know in order to issue a loan approval.

You may have awesome credit, good savings, a great income, etc. and still be denied a loan because of the lender’s building review requirements.

Condo Questionnaires typically ask questions such as:

– number of units rented (hint: Fannie Mae just changed the rules on this one, and if mortgage insurance companies come on board, high rental ratios may not be a reason to decline your loan) It used to be if more than half the building is rented, the loan is a no go… however, this JUST changed the day before yesterday.  Now, if you will live in the unit (if the unit will be OWNER OCCUPIED) the number of rented units in a building does not matter.  Tell that to the mortgage insurance companies, though…. we’ll have to keep an eye on this one!

– does any one person own more than one unit and if so, describe (hint: if any ONE person or entity owns more than 10% of the units in the building the building will not meet lending requirements)

– how many units are 30 days delinquent on maintenance dues? (hint: cannot be more than 15% of units)

– are there any pending special assessments? (hint: as a buyer it is in your best interest to know this before you buy.  I do not know if it would cause the bank to decline or just to further analyze your qualifying criteria – ask your banker. I have an amazing banker if you need one.)

– Is the Condo Association involved in any litigation? (hint: if there is any litigation related to construction defects, the lender may have a problem granting any “reviewed” loan)

– how much does the building have in reserves? (hint: usually lenders are looking for 10% of funds collected to go towards reserves)

– what kind of insurance does the building carry and for what amounts?

usually condo questionnaires have about 35 questions on them, some more important than others.  The ones listed above are the big mamas and are usually the cause of many buyers not being able to purchase with a low down payment.

It is always helpful to work with a real estate agent who knows the buildings and knows to ask these questions before presenting an offer.  I visit the condo association when we visit the unit and attempt to get the “big mama” questions answered in front of my client, rather than have my clients spend $150 on a condo questionnaire on every building they are interested in. Some associations are nice and just tell you flat out, others will not say anything and you must submit a questionnaire and a fee.

The exceptions to this thorough analysis are condos that are Fannie Mae approved.  There are not many in Miami at the moment, but here is a list of the condo buildings that are currently Fannie Mae approved.  These are much easier to get a loan in.

I hope you found this article informative and helpful.  If you need an experienced and tech savvy agent who knows the Miami market inside and out, you can reach me at paula@greatmiamihomes.com or 786.663.4382.

Paula Barrera Scheer

EWM Realtors

A modern agent for a modern client.

*This article is advice from the first hand experiences of a veteran real estate agent and is not to be construed as legal advice. Real estate agents are not attorneys.  If you are in a real estate transaction and need legal advice, consult with a real estate attorney.

 

¡“The Roads” – una joya escondida en Miami!

“The Roads” es un vecindario pequeño y exclusivo en Miami al oeste del distrito financiero de Brickell. Fue desarrollado por Mary Brickell a principios de 1920, y es descrito legalamente como Brickell Hammock en las listas de contribuyentes.

“The Roads” es conocido por sus calles tranquilas e hileras de árboles, su excelente ubicación y su naturaleza histórica.

 

The roads es un vecindario en Miami, FL bordeado por la calle 11 en el norte, la avenida 12 al oeste, la 15 Road en diagonal y expande hasta la "South Miami Avenue".
The roads es un vecindario en Miami, FL bordeado por la calle 11 en el norte, la avenida 12 al oeste, la 15 Road en diagonal y expande hasta la “South Miami Avenue”.

Actualmente existen 26 viviendas en el mercado en esta área con precios comprendidos entre $399.000 y $4.350.000. Usted puede esperar pagar en otro lugar entre $3.000 y $12.000 mensualmente o más por la renta de una vivienda unifamiliar en esta área.

The Roads – a hidden gem of a neighborhood in Miami!

The Roads is a small exclusive neighborhood in Miami just west of the Brickell financial district. It was developed by Mary Brickell in the early1920’s and is still legally described as Brickell Hammock in the tax rolls.

The Roads is known for its peaceful tree-lined streets, prime location and historic nature.

The roads is a neighborhood in Miami, FL bordered by 11th St on the north, 12th Ave on the west, 15th Rd on a slant, and out to South Miami Avenue.
The roads is a neighborhood in Miami, FL bordered by 11th St on the north, 12th Ave on the west, 15th Rd on a slant, and out to South Miami Avenue.

 

There are currently 26 homes on the market in this area with prices ranging from $399,000-$4,350,000. You can expect to shell out anywhere between $3000 – $12,000 a month or more for a single-family home rental in this area.

To read about another sub-market in Coral Gables click here.

I specialize in Miami real estate, in particular Downtown, The Roads, Brickell, Coconut Grove, South Beach & surrounding areas. I value technology, communication & your time. If you would like to meet with me regarding a purchase or sale of Real Estate in Miami, you can contact me on my cell 786-663-4382 or at paula@greatmiamihomes.com.

Greatmiamihomes.com seeks to keep the public informed about Miami real estate market trends, new development projects, neighborhood information and, of course, great homes and condos for sale in Miami!

PAULA BARRERA

A modern agent for the modern client.

786.663.4382

paula@greatmiamihomes.com