Archive for December, 2009
“For Sale By Owner” Homes Can Be A Challenge For Realtors
December 5th, 2009 | categories: Buying Real Estate in Coconut Grove
Back during the boom there was a “For Sale By Owner” sign on every block in Coconut Grove. These days, it is very rare to find a true FSBO and for the most part FSBO’s have been taken over by the discount broker (the broker that charges a small fee to place your home on the MLS but otherwise gives you no added service). Although there are a plethora of reasons to have your own experienced agent representing you on the selling side (i.e. to qualify buyers, market your home correctly, negotiate properly, help with appraisal and inspection hurdles, help with pricing, etc. etc.) I do not hold it against anyone who decides to sell their home on their own.
But problems do arise when I am representing the buyer who is hoping to purchase a “For Sale By Owner”. First, the sellers have typically over-valued their house and I am the one who has to break the news to them that the comps don’t support such a price (this is usually the job of the listing agent) and because I am representing the buyer they have a hard time accepting my numbers. Second, handling the negotiation process is very difficult when you are the opposing party and have to deal directly with the seller. As you know, real estate transactions can get very emotional for some people and if you don’t have that other agent as a buffer the deal can easily fall apart. Third, my commission is not protected by a listing agreement found in a traditional transaction.
I have certainly handled many purchases of “For Sale By Owners” for my clients, but the deals do not come without headaches.
Foreclosure In Coconut Grove Sells Almost $200,000 Higher Than List Price
December 3rd, 2009 | categories: Coconut Grove Real Estate
The foreclosure I wrote about here in South Coconut Grove closed yesterday for almost $200,000 higher than the asking price.
The bank had it listed at $434,900 and the buyers bid up the price to $604,900 ($238.00 psf). I heard there were more than 10 offers on the property the day it came on the market.
Interesting that the price was bid up to almost the list price before it was in foreclosure which was $649,000. Just goes to show you that the word “foreclosure” in Coconut Grove can generate such demand that it can push up the price close to true market value.
Details of 3520 St. Gaudens include:
- 2 Bedroom, 3 Baths
- 2,535 Square Feet of Living Space
- 10,740 Square Foot Lot
- 2 Car Garage
Was This Foreclosure Flip Worth It?
December 2nd, 2009 | categories: Coconut Grove Real Estate
This house on Kumquat Avenue is the first foreclosure flip in Coconut Grove to sell.
The house has had quite a history. The house originally sold for $900,000 back in 2006 (clearly mortgage fraud). It was put back on the market as a foreclosure on July 8th in 2008 at a price of $259,000 and was gone in seconds. I wrote about the house the day it came on the market here Foreclosure on Kumquat. The house was purchased for $250,000 by the investors.
After extensive renovations to the interior, it was put back on the market in June of 2009 at a price of $675,000. They received a contract within a month but the deal fell through. The owners then reduced the price to $635,000. They received a contract and the house closed this week for a price of $580,000.
I showed the house several times to clients and can estimate that they put about $200,000 into the renovations (new electric, new plumbing, new bathrooms, new kitchen, new floors, new impact windows, all with permits). The owner was the Realtor so she saved 3% commission on that end, but had to pay 3% to the buyers agent.
Here are my calculations:
- Sales Price of $580,000
- Less $17,400 (3% Buyer’s Agent Commission)
- Less $200,000 (Renovations)
- Less $259,000 (Cost of Home)
This left the investor with approximately $103,600 in profit. Out of the $103,600 the owner had to pay a years worth of property taxes, and closing costs on the purchase and sale of the home. They probably made about $50,000 on the home when all was said and done. (Keep in mind, some of these numbers are speculation on my part).
So after looking at the figures, was the flip worth it, what do you think?
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here.
If you are interested in buying or selling real estate in Coconut Grove, please give me a call at 305.342.1623 or send me a note here.
High End Real Estate Is Selling In Coconut Grove!
December 1st, 2009 | categories: What Is Selling In Coconut Grove Real Estate?
If you keep up with the blog you will remember that the $1,000,000+ market was pretty much dead in Coconut Grove at the beginning of the year.
That has certainly changed in the 4th Quarter since almost 50% of Coconut Grove’s closed sales have been over $1,000,000 which means that higher end buyers are finally re-entering the real estate market here in Coconut Grove.
Yesterday alone two homes sold over $1,000,000.
The first was located at 1780 Espanola Drive in North Coconut Grove. Amazingly, this house has sold and re-sold within the past 2 years. The home was purchased in August of 2008 for a price of $2,000,000, was put back on the market in June of 2009 and closed yesterday for a sales price of $1,910,000. The home was built in 2007 and featured 5,204 square feet on the interior, 6 bedrooms, 7 baths on a 10,500 square foot lot. The sales price per square foot is $367.00.
The second home was located at 3810 Frantz Road in South Coconut Grove. The owners had it on the market since January of 2009 their asking price was $1,650,000 and it sold for $1,375,000. It was built in 1995, featured 5 bedrooms, 4 baths, 5,141 square feet of living space on a 9,700 square foot lot. The sales price per square foot is $267.00.
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here.
If you are interested in buying or selling real estate in Coconut Grove, please give me a call at 305.342.1623 or send me a note here.