I’d like to continue highlighting evidence of the resurgence in sales activity for price reduced waterfront single family homes in the Miami Beach real estate market- specifically for North Bay Road waterfront home sales.  The sales story of these two waterfront homes is a great example of what’s happening in today’s Miami Beach real estate market- one sold quickly close to the asking price, and the other was reduced by over 50% over a four year time span:

North Bay Road Waterfront Home (6100 North Bay RD, Miami Beach, FL)

Spectacular wide bay views and the most gorgeous sunsets make this boater’s paradise a great opportunity to own on prestigious North Bay Road.Situated on a 20,000 SF lot, this home + guest house is 5,000 SF,with 3 Bedroom/3 Bath.It has been masterfully updated with wonderful entertaining spaces that features a chef’s kitchen,marble floors,marble bathrooms,generator,+gated security. Florida living at its best!

Sold Price: $3,350,000
Original “For Sale” Price : $3,100,000 (2/2010)
Previous “Sold” Price (1/1998) : $500,000
Bedrooms: 3
Bathrooms: 3
House S.F.: 4,889 ($702/SF)
Land S.F.: 19,452 ($176/SF)
Sold Date: March 19, 2010
Total Time on Active Market: 59 Days
Discount from Original Asking Price: 8%

Luxury Home (5718 North Bay Road, Miami Beach, FL 33141)

Exterior modern design with luxurious interiors in Med motifs, marble fireplaces, coffered ceilings, elaborate moldings, marble floors, ornate stonework and mahogany millwork. Spacious wet bar/piano room, adjacent media rm. opens onto interior courtyard, pool and huge dock for large vessel.  Spacious circular drive with gates, electric shutters, elevator, office, guest & staff  bedrooms with adjacent sun room.

Sold Price: $3,350,000
Original “For Sale” Price : $6,750,000 (3/2006)
Previous “Sold” Price (6/1980) : $390,000
Bedrooms: 6
Bathrooms: 7
House S.F.: 6,545 ($511/SF)
Land S.F.: 15,536 ($216/SF)
Sold Date: March 18, 2010
Total Time on Active Market: 40+ Months!
Discount from Original Asking Price: 50% +

My advice from these two examples for sellers:  Price your home RIGHT from the beginning and you will get MUCH more buyer activity (perhaps even a bidding war).  Overpriced homes sit on the market a LONG time, with a downward price spiral trying to chase the market & generate interest with better priced competing waterfront single family homes.

I’d like to share my most recent experience with Buyers looking to purchase a Miami Beach luxury home located on the water with the following criteria:

Price: $4M – $6M
Approx Size of Home: 3,500 SF – 5,000 SF (Four bedroooms preferred)
Contemporary Design / Decor
Preferred Minimum 100′ of water frontage
Room for Pool (if none currently)
Island Communities Targeted: Palm Island, Hibiscus, Venetian Islands, Sunset Islands, North Bay Road Homes

In order to preserve the Buyers confidentiality with the specific homes that we’ve been negotiating, I’m going to focus on the issues that have come up in the negotiations/purchasing process which are unique to today’s economic and financial situation.  This is the third set of buyers that I have worked with in the past year that have insisted on ordering an Appraisal (at Buyers expense) BEFORE making a written offer.  This demonstrates the importance of a serious seller today pricing their home correctly.  Given that we are in a Buyer’s market, and especially in light of the financial turmoil of the past two years, any serious buyer wants to be CERTAIN that they are getting a reasonable deal on a home purchase.

I’m often hearing talk these days about the real estate market in Southeast Florida “turning around”.  This means many different things- most significantly, in concrete terms what I’m seeing is more liquidity in the market today for qualified buyers.  Specifically, those looking to purchase a home with the above mentioned criteria, to obtain a 75% loan to appraised loan to value mortgage (for qualified buyers) is a relatively straight forward proposition for a luxury home in Miami Beach.  However, to obtain a construction loan or to be able to pull equity from a recently purchased property is NOT so easy, if not exceedingly difficult or downright impossible!

This is significant for sellers to take into account, because what it means going forward is that if a property does not appraise, it will most probably not sell for the foreseeable future.  In today’s market environment, even the “cash” buyers are insisting on getting proof of fair market value by way of an appraisal.  This is a relatively new phenomenon, which I encourage every Miami Beach home seller to be aware of!

As part of my marketing strategy of the past few years, I travel regularly to international real estate trade shows and meet with Brokers from around the world.  I’m usually asked about the state of Miami Beach luxury real estate (especially demand for waterfront single family homes).  Those with the financial resources (both from USA and International clients) ask about the possibility of purchasing a foreclosed, or bank owned, single family home in Miami Beach.  There continues to be a significant gap between the sought-after upper end luxury market and the less desireable, and generally non-waterfront properties.  Although waterfront luxury home sales are down significantly for Miami Beach overall (around 50% for first half of 2009), we’re seeing sales activity for turnkey homes that have come down in price significantly.

The most recent closed sales of waterfront homes in Miami Beach:

2046 North Bay Road Luxury Mansion – Drastically Reduced Waterfront Estate

2046 N.Bay Raod, Miami Beach

This was the best luxury waterfront deal in Miami Beach.  Priced to sell after being on the market for over 1,000 days! Featuring a private guard house – 80 ft infinity pool & private beach – elevator – generator – 4 car garage and much more.  This waterfront estate was featured on PlumTV.

My opinion as to why it sold :  Amazing architectural style & location on prestigious North Bay Road, amazing views, price reduced aggressively with lender approval.

Sold Price: $9,750,000
Original “For Sale” Price : $17,000,000 (5/2006)
Bedrooms: 7
Bathrooms: 11
House S.F.: 14,582
Land S.F.: 38,314
Sold Date: October 8, 2009
Discount from Asking Price: 42%
Search: North Bay Road Homes For Sale

The Venetian Island

127 East Rivo Alto, Miami Beach

Priced right!  Located on the best of the Venetian Islands-Rivo Alto Drive -and far in from the Venetian Causeway that links Miami and Miami Beach.  This 2 story home offered Frank Lloyd Wright inspired architecture. Open Floorplan, WATER VIEWS throughout, Updated Kitchen with high end appliances and well maintained bathrooms. Large backyard and pool which are perfect for entertaining or relaxing.

My opinion as to why it sold :  Great waterfront location, spacious floorplan, price reduced quickly and aggressively!

Sold Price: $2,040,000
Original “For Sale” Price : $2,590,000 (3/2009)
Bedrooms: 4
Bathrooms: 3
House S.F.: 3,361
Land S.F.: 10,500
Sold Date: October 16, 2009
Discount from Original Asking Price: 21%
Search: Venetian Island Homes For Sale

Hibiscus Island- Reduced Turnkey Waterfront Home

320 S. Hibiscus Dr, Miami Beach

This home has scenic bay and city views, tri-level and perfectly updated with attention to details.  Featuring marble and wood flooring throughout, with gourmet kitchen, stainless steel appliances, a beautiful and contemporary salt water bayfront pool, large master suite on the top level with incredible water views.  Two car garage, and ideally located on a quiet section of Hibiscus Island.

My opinion as to why it sold :  Great waterfront location in 24 hour guard gated community, amazing views, price reduced aggressively.

Sold Price: $2,500,000
Original “For Sale” Price : $3,250,000 (6/2008)
Bedrooms: 3
Bathrooms: 4
House S.F.: 3,590
Land S.F.: 10,500
Sold Date: September 29, 2009
Discount from Original Asking Price: 23%
Search: Hibiscus Island Homes for Sale

Source:  South Florida Regional MLS

Browse: Miami Beach Luxury Real Estate

Overview of North Bay Road in Miami Beach:

North Bay Road in Miami Beach, is an Estate lined road consisting of luxury waterfront homes. The North Bay Road neighborhood is popular with celebrities and wealthy public figures from around the world. Among the current and former residents of North Bay Road include Ricky Martin, Chayenne – Latin pop singer, Matt Damon, Jennifer Lopez and Shakira.

North Bay luxury homes have breathtaking waterfront views, boat docks, and is conveniently located less than ten minutes away South Beach, Ocean Drive, and the world-famous white-sands of Miami Beach.

North Bay Road Home in Miami Beach

North Bay Road bayfront Mediterranean two story waterfront home with charm. Greater bay and city views.  Back of home recently expanded, new size now 8585 Sq Ft of living area according to the seller. This home offers large open spaces, high ceilings, all rooms oversized with bay views from most areas. Huge two-car garage with maids quarters attached.  This is a walled and gated Estate, needs 24-hour notice to show.

Waterfront view of Miami

:  Oversized Waterfront Proeperty with 100 ft. on Water, Spectacular location on Bay Road, 20K+ S.F. rare oversized lot

:  Orientation towards North, some parts of home need updating

“For Sale” Price: $4,390,000
Tax Value Appraised Price : $4,975,000 (2008)
Bedrooms: 5
Bathrooms: 6
House S.F.: 8,585
Land S.F.: 20,500
Asking Price per S.F.(Land): $214
Previous Sold Date: 1994

Discount from Appraised Price: 12%

I keep receiving many inquires and requests from Buyers (both from USA and International clients) about the possibility of purchasing a foreclosed, or bank owned, single family home in Miami Beach.  There continues to be a significant gap between the sought-after upper-end luxury market and the less desirable, and generally non-waterfront properties.  Most importantly, we’re seeing a significant increase in buyer activity on the market due to the unfreezing of the credit markets for qualified buyers.

To illustrate the price (and demand) gap between turnkey waterfront homes and the still hard to sell mid-to-lower range single family homes, I’d like to highlight a few recently closed sales of bank owned homes around Miami Beach. These are not short sales, only those classified as REO sales (Bank owned and approved).

North Bay Road- Bank Approved Sale

Miami Beach North Bay Road Home

Bank Owned home, located on prestigious North Bay Road with nearby mansions and waterfront estates. Corner lot surrounded by privacy hedge. Open floor plan, designer stainless steel kitchen, terrazzo, limestone floors, formal dining room, family room, breakfast room, alarm system, sprinkler system.

:  Great Location
:  Small corner lot, house needed some work due to recent neglect

Sold Price: $520,000
Original “For Sale” Price : $1,350,000 (2007)
Bedrooms: 4
Bathrooms: 3
House S.F.: 2,474
Land S.F.: 6,978
Sold Date: March 6, 2009
Original Asking vs Sold Price: 39%

Alton Road- Significantly Reduced Turnkey Waterfront Home

Alton Road Luxury Home

A 1930′s  Mediterranean large home with guest house.  Renovation was completed in 2006 with luxury touches throughout  The additional amenities of this beautiful estate include: polished  marble floors, a custom masonry  fireplace, gas appliances,movie theater out door fountains with 5 bed and 4 and 1/2 baths.
: Complete renovation & charm

: Located on busy Alton Road & limited appeal

Sold Price: $520,000
Original “For Sale” Price : $2,200,000 (2006)
Bedrooms: 5
Bathrooms: 4
House S.F.: 3,223
Land S.F.: 7,320
Sold Date: April 22, 2009
Original Asking vs Sold Price: 24%

Biscayne Point- Gated Community Land Value Teardown Sale

Foreclosure Waterfront Home

Bayfront vacant home that was sold “as is” by the lenders, gated community with wide bay views.  Minutes from the Ocean, rare Bayfront lot with 75′ of waterfront.

: Waterfront lot with Wide Bay Views, Gated Community in Miami Beach
: Complete rehab / teardown house

Sold Price: $500,000
Original “For Sale” Price : $1,200,000 (2004)
Bedrooms: 3
Bathrooms: 2
House S.F.: 1,816
Land S.F.: 7,500
Sold Date: March 12, 2009
Original Asking vs Sold Price: 42%

Finally, to illustrate the dramatic difference with turnkey waterfront homes, I’d like to highlight another recent sale on Miami Beach’s North Bay Road, where the home was on the market for just TWELVE DAYS:

North Bay Road- Wide Bay Home

Luxury North Bay Road Home

This was one of the best waterfront deals on Miami Beach.  Wide bay views with 77 FT on the water and a 254 FT deep oversized lot.  This home is sparkling clean and livable “as is”.

Sold Price: $3,200,000
Original “For Sale” Price : $3,900,000
Bedrooms: 4
Bathrooms: 5
House S.F.: 4,006
Land S.F.: 19,685
Sold Date:  March 11, 2009
Original Asking vs Sold Price: 82%