Archive for April, 2009
How to price your house in today’s market…
April 29th, 2009 categories: Coconut Grove Real Estate
The other day I went to talk to a potential seller about listing their home. It was so refreshing to speak with someone who is realistic about the value of their home. There was none of the usual… “I have to get ”x” amount out of the house”, or “But I paid “x” amount for it” or “I can’t afford to sell it for less than “x”.
We as Realtors hear these comments all the time from sellers and it never ceases to amaze me that they don’t realize their needs have absolutely nothing to do with the value of their home. The value is solely determined by what a buyer is willing to pay. It is also determined nowadays by what an appraiser says the home’s value is worth.
Now that I got that off my chest, it is my opinion that in today’s market you need to price your house ahead of the market. So often we see sellers come in with unrealistic asking prices and they have to constantly reduce reduce reduce as they chase the market down. What I mean by “pricing your home ahead of the market” is that you should anticipate that prices are falling and price your house accordingly, as opposed to reacting to a falling market. It is always better to act than react.
Price it so that it is attractive to as many buyers as possible and don’t worry about low ball offers coming in. Most sellers right now believe that they have to price the house higher to combat low ball offers. But what I have been seeing is that once sellers reduce the house to what is a realistic range, they sell for much closer to their asking price. Once a house is priced attractively buyers fear that somebody else will come in and make a higher offer.
The key question right now for buyers is where can they get the most value. Remember that value is determined by what a buyer will pay, not what a seller needs.
| Discussion: 1 Comment »
New Foreclosure In Bay Heights – Needs To Be Reduced
April 29th, 2009 categories: Coconut Grove Real Estate, New Listings in the Grove
This new foreclosure in Bay Heights came on the market last week. I previewed the home for some clients and was impressed with its large size. It has 4,529 square feet of living space on an 11,000 square foot lot with ample room for a pool. The home is a sprawling ranch-style home which is very typical for Bay Heights. As far as foreclosures go it is in very good condition (there are some water leaks that the selling bank is fixing).
The house backs up onto Bayshore Drive, which is one of the negatives. The other major negative for me is the asking price of $899,900. This is a foreclosure and we usually see them priced to sell quickly but this one is clearly not. For example, I have a listing (non-distress) on the other side of Bay Heights located at 79 West Shore Drive (click for details) priced for $875,000 – it is a 1992 totally remodeled 3,700 square foot house with a pool in perfect condition.
If purchased for the right price, and given a little love and care this foreclosure could be a great house.
If you’d like to see this or any other foreclosures in Coconut Grove, please feel free to give me a call at 305.342.1623, I am happy to set up appointments for you.
Details of 301 East Shore Drive:
- 4,529 square feet living space, 11,000 square foot lot
- 4 bedroom, 5 bath
- 2 car garage
- Listed by Powerhouse Real Estate
| Discussion: No Comments »
Price Reductions Are In The Air
April 28th, 2009 categories: Buying Real Estate in Coconut Grove
I was just looking over the MLS and noticed that there have been many many price reductions over the past week. If you have been looking at homes in Coconut Grove, it is worth checking with your realtor to see if any of the homes you have previousely seen have been reduced.
Here are just a few of the big ones. Of course in the higher price ranges we tend to see larger price reductions. It is very unusual to see a $200,000 price reduction on a $600,000 house unless it is in distress.
3737 Kent Road | Reduced by $251,000 to $2,499,000 | 5 Bds/4 Bths | 6,015 sq. ft. living space | 49,210 sq. ft. lot
3979 Poinciana Close Road | Reduced by $400,000 to $1,800,000 | 5 Bds/5 Bths | 6,373 sq. ft. living space | 10,007 sq. ft. lot
3851 Battersea Road | Reduced by $225,500 to $1,749,900 | 5 Bds/4.5 Bths | 4,472 sq. ft. living space | 8,300 sq. ft. lot
3071 Lucaya Street | Reduced by $140,000 to $1,250,000 | 4 Bds/4 Bths | 3,792 sq. ft. living space | 10,201 sq. ft. lot
2769 SW 22nd Avenue | Reduced by $60,000 to $1,190,000 | 4 Bds/4 Bths | 3,057 sq. ft. living space | 9,608 sq. ft. lot
The above information is courtesy of the SEF MLS and is deemed reliable but not guaranteed.
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here.
| Discussion: No Comments »
Tick Tock…Days On The Market
April 27th, 2009 categories: Selling Real Estate in Coconut Grove
Calculating how many days a home has been on the market can be a challenge because many times a property will come on the market and go off the market several times before actually selling. The question becomes at what point do you start counting? Lets say that a house came on the market in July of 2008, then was taken off the market for 4 weeks in March, then went back on the market in April and sold within days. What is this home’s official “Days On The Market”? The answer could depend on who you ask.
When I calculate the days on the market I have to make an executive decision about these timing issues. Did the above home really sell within days, or had it been on the market for 8 months. In this example, I would probably say that the home had been on the market for 8 months prior to selling even though it had taken just a few days to sell after it was put back on the market in April.
The MLS is of no help because it only calculates back to the current list date. So if a home comes off the market for even a day or switches realtors, it will start the counting all over again. See the below Property History for a home that recently sold in Coconut Grove. It was on the market since 2007, then it temporarily went off the market for 1 day in February of 2009 yet the MLS still calculated the Days On Market (DOM) as 31 days.
The reason we are writing about “Days On The Market” is that it is almost always one of the first questions I get asked on my listings. Potential buyers who call me directly always want to know how long the house has been listed. I believe they are hoping to gain some insight into the seller’s motivation. They mistakenly believe that if a house has been on the market for a long time, the seller must be more motivated. If the house has just come on the market, I always hear buyers say that the sellers are “not ready yet”. The reality is that in this market, everyone’s house has been on the market for a long time. With so few houses selling and so many for sale, the days on the market is high for everyone.
In my opinion, the number of “days on the market” has absolutely nothing to do with the sellers motivation. If just the fact that they were on the market for a long time meant they were motivated, these houses would probably have sold by now. In fact, sellers who have been constantly chasing the market down are not very motivated in my opinion because they have been able to survive having their house listed for a very long time. In this market, I am finding that new sellers who want to sell quickly price their house correctly from the beginning. The problem they and their realtors are having is that buyers today want to make sure they get a big discount or a great deal. This usually means taking a big bite out of the listing price.
So how do you list your house properly? Tune in later this week.
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here.
| Discussion: No Comments »
Is Coconut Grove Seeing The Bottom?
April 23rd, 2009 categories: Coconut Grove Real Estate
I am scared to even mention the word, but all I can say is that April has been a VERY busy month so far for Coconut Grove real estate. Just this week we have seen 7 homes, 2 condos and 1 townhouse go under contract. There have been times when we didn’t see that in an ENTIRE MONTH. If next week has this many pending sales we could be in for the most active month Coconut Grove has experienced since the downturn began. So far, April has had a total of 24 properties go under contract with 7 more days to go!
Have we hit bottom? I have no idea. April could be a fluke. But if we experience a few more months like this, I would feel comfortable in saying yes. Don’t forget that summer is coming which is typically a very slow time for real estate in South Florida. It will be interesting to see how summer will affect a potential market in recovery.
This week’s pending sales:
| Address: | Bds/Bths | Sq.Ft. Living Space |
Original Asking Price | Current Asking Price |
Distressed |
| 3880 Irvington Ave. | 3/2.5 | 2,604 | $899,000 | $799,000 | No |
| 4060 Battersea Rd. | 2/2.5 | 15,000 Lot |
$749,000 | $749,000 | No |
| 3511 Royal Palm Ave. | 3/2.5 | 1,378 | $899,000 | $675,000 | Short Sale |
| 4235 Braganza Ave. | 3/2 | 1,644 | $699,900 | $589,900 | Short Sale |
| 3520 E. Fairview St. | 3/3 | 2,079 | $680,000 | $580,000 | Short Sale |
| 4160 Pomona Ave. | 4/3 | 2,265 | $549,000 | $525,000 | No |
| 3 Grove Isle Drive | 2/2 | 1,882 | $450,000 | $450,000 | Short Sale |
| 3221 Frow Ave. | 3/2 | 2,277 | $497,900 | $299,900 | Foreclosure |
| 3057 Virginia St. | 3/3 | 1,423 | $254,900 | $254,900 | Foreclosure |
| 2740 SW 28 Terr. | 1/1 | 605 | $117,900 | $85,900 | Foreclosure |
This information is courtesy of the SEF MLS and is deemed reliable but not guaranteed.
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here.
| Discussion: No Comments »
Local Banks May Have Lower Down Payment Requirements
April 23rd, 2009 categories: Buying Real Estate in Coconut Grove
James Venney of JuicyEstates.com wrote a post this morning regarding the down payment requirements of large lenders vs. local banks. The difference could be as much as 10% less for the local banks on Jumbo Loans. James says that the local banks are smaller and can adapt quicker and easier to local market conditions.
His post The Rise Of The Regionals, Filling The Funding Gap is definitely worth a read if you are in the market for a loan in the $525,000 to $1,500,000 range (in other words, a Jumbo loan). Thanks James.
You may also be interested in: This Time Its Not about The Rates
| Discussion: No Comments »
Green Houses In Coconut Grove Are Pricey
April 21st, 2009 categories: Coconut Grove Real Estate, Gated Communities
In honor of Earth Day I thought that I would feature all of the “Green” houses we have for sale here in Coconut Grove. As you can see they are very pricey, we are talking $1,000,000 and up. I’m not sure why someone hasn’t capitalized on affordable green housing in Coconut Grove. While the below houses are nice, they are out of reach for many. And there are certainly many people in all price ranges who are looking to make their footprint smaller.
A word of caution, aside from the house on Kumquat which will be “LEEDS certified” I am a tad skeptical of other homes that are just touted as “Green”. To me that could mean any number of things. If you are interested in knowing exactly how green they are, I can certainly find that information out for you.
On a similar note, I was just in The Mutiny Hotel on South Bayshore Drive and they had a sign up that said they had gone green, I think the same goes for The Sonesta. Good for them.
3075 Munroe Drive, Camp Biscayne, South Coconut Grove
- 6 Bedrooms, 6 Baths
- A “Green” Home
- 275 degree views of Biscayne Bay
- 500 feet of water frontage on 2 sides
- Tropical South East Asian Atmosphere
- Located in Camp Biscayne one of Coconut Grove’s premiere Gated Communities
- Still Under Construction
- Listed by Sotheby’s
- Asking Price: $9,650,000
| Discussion: No Comments »
I have a dog, so where can I live in Coconut Grove?
April 20th, 2009 categories: Coconut Grove Real Estate
As far as I know Yacht Harbor is the only building that outright restricts owners from having pets. Yes, I said owners. A few years ago the association changed the rules which prohibited any NEW resident from having an animal. The owners who already had dogs or cats were of course permitted to keep them. Other than Yacht Harbor, all other Coconut Grove condominium buildings, gated communities and townhouses allow the owners to have pets.
Rental properties are a different story and the decision is left up to the landlord and the condo association. It has been my experience that almost none of the big condominium buildings allow renters to have pets (Grovenor House, Grove Hill, Grove Tower etc.). With regards to townhouses and single family homes it is probably 50/50. Sometimes they will put restrictions on the size of the animal such as “pets are allowed 20 pounds and under”.
It was just brought to my attention that some of the top websites for property searching (Realtor.com, Trulia.com, TheRealEstateCoconut.com etc.) do not tell you whether or not landlords have an animal restriction. This makes it hard for those people who are trying to search on their own for a rental and is just another reason why you should use a realtor, and another reason to keep reading my blog…..you never know what you might learn!
| Discussion: 3 Comments »
What is going on with new construction in Coconut Grove?
April 19th, 2009 categories: Coconut Grove Real Estate, What is selling in Coconut Grove?
Warning: I am a numbers guy and this post is full of them. I like to study them, track them and put them on my blog. Here are some interesting ones on Coconut Grove new construction homes.
Average Price Per Square Foot of New Construction Currently For Sale = $360.00
There have not been any new construction sales so far this year in Coconut Grove. Of the 21 sales in Coconut Grove this year, all have been resales. There are currently about 17 completed new construction homes on the market right now. Leaving out the new construction homes that are waterfront (which are a completely different animal), the average list price per square foot is $360.00 and the range in price is $999,000 to $4,500,000.
Average Price Per Square Foot of New Construction SOLD in 2008 = $331.00
Last year there were 6 new construction homes sold and they ranged in sale price from $1,250,000 to $2,150,000. The average sale price per square foot of these sold new construction homes was $331.00. This number is significantly lower than the price we saw for resale homes in the same price range. When you take a look at resale homes sold in 2008 (in the same price range) the average sales price per square foot was $350.00.
You would expect the price per square foot of a new construction home sold to be significantly higher than the price per square foot of a resale home sold, right? Not in this market. Developers, especially last year, were looking to get out of these homes so that they could move on - and the sale prices reflected that.
I have two new construction homes that are both listed below last year’s average selling price per square foot.
The first home is on Barbarossa and in my opinion is one of the best built new construction homes in the South Grove. It is listed at $325.00 per square foot. It has 5 bedrooms, 5 and a half baths, 4,600 square feet of living space, 2 car garage and a pool. It is within steps from Merrie Christmas Park, the second largest park in Coconut Grove.
My second new construction listing is in North Coconut Grove on Washington Street. It is listed at only $330.00 per square foot and was designed by local architect Alfred Browning Parker Jr. who is known for his bridges, archways and unique contemporary style. This house has 4 bedrooms, 4 baths in the main house and 1 bedroom, 1 bath in the guest quarters. It has a saline pool with a coral rock waterfall that winds through the gated and walled property.
| Discussion: 1 Comment »
List Price vs. Sale Price in Coconut Grove
April 17th, 2009 categories: Coconut Grove Real Estate
I was going over some numbers this morning and noticed something interesting.
Single family homes in Coconut Grove that were on the market for 60 days or less had a list price to sale price ratio in the 80% range. When they stayed on the market for 60 days or more their list price to sale price ratio rose to the 90% range.
These numbers bring a few thoughts to me. First, they dispel the belief that all homeowners are less negotiable when their home first comes on the market. Second, it could be that a majority of the homes that went under contract in less than 60 days were in a distress situation – they were priced well to attract offers and were willing to take a significant discount off the asking price. The key in this market is getting offers.
Bear in mind that these figures come from only 21 properties, the total amount of closed sales recorded this year. I would say that 90% is a more typical ratio and probably where a majority of the sales lie in Coconut Grove. If you take a look at all of Miami-Dade County, the sale price to list price ratio is approximately 89%.
Whatever you make of the numbers, it is just more reason to go ahead put in an offer now as opposed to waiting. If you don’t someone else may beat you to it.
| Discussion: 5 Comments »
