Miami Beach waterfront homes located on Star Island, Palm and Hibiscus Islands, the Venetian Island chain including San Marino island, Fisher Island, and Sunset Islands have drawn the wealthy and famous since the early 1920′s. Starting with such famous (and infamous) celebrities Al Capone, Lou Walters (father of Barbara Walters), Jackie Gleason, and many others- Miami Beach island communities offer the most sought-after waterfront luxury homes and estates in the world.

Miami Beach Palm Island Homes

These exclusive Miami Beach homes and estates are surrounded by the beautiful waters that form Biscayne Bay. As of today, Star Island, Palm, and Fisher Islands are the home (and in some cases the second and third homes) to famous residents and celebrities such as Rosie O’Donnell, Gloria Estefan, Oprah Winfrey, Sean Combs, Shaquille O’Neal, Tommy Mottola, and many of the world’s most elite business and political leaders.

Miami Beach's Elite Homeowners

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!

According to University of Florida oceanographic reports over the past few days, the east coast of Florida is at some risk for contamination from the leaking BP oil rig in the Gulf of Mexico.

Based current models, the expanding oil slick could get caught in a loop current which would redirect it to the Florida Straits, up into the Gulf Stream, and ultimately up the east coast of Florida.

The many waterfront Estates and Luxury homes on Key Biscayne and Fisher Island would be especially vulnerable to contamination.  These islands have direct exposure to the Atlantic Ocean and are considered much more vulnerable to potential contamination.

The island communities off of Biscayne Bay, however, such as the Venetian Island chain, as well as Palm Island, Star Island, Hibiscus Island, and Sunset Islands are thought to be much better protected, as they are located inside several protective barriers.  In addition, if oil slicks were to be spotted, several Coast Guard stations have been pre-stocked with rubber barriers that would be deployed helping to stop oil from contaminating the Biscayne Bay island communities.

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

Miami Beach single family homes (especially waterfront luxury homes) that are truly good deals continue to be in short supply. I’d like to take this opportunity to highlight two latest sales in the island communities off Miami Beach which are indicative of a price bottoming trend:

Di Lido Island Turnkey Home with Endless Water Views

Luxury Home - 830 W Dilido Dr, Miami Beach

Tropical paradise for that was on the market for sale for just 12 days at the final asking price of $2.9 Million. Master bedroom is surrounded by water and sunlight which opens to pool/deck. Wide bay views at the north tip  of Venetian Islands. The oversized living room, completely updated, is very comfortable and sunny. Courtyard/ circular driveway decorated  bytrimmed landscaping and wrought iron sliding gate. Fabulous private pool overlooking the open bay, dock and other boat equipment.

Key “Market Bottom” indicators:

“For Sale” Price: $2,950,000 (12 days on the market at this reduced price point)
Original List Price : $4,700,000 (July, 2008)
Previous Price Reduction: $3,450,000 (January, 2009)
Bedrooms: 4
Bathrooms: 3
House S.F.: 3,734
Land S.F.: 13,408
Closed Price per S.F.(Land): $194
Closed Price per S.F.(House): $698
Previous Sold Date: 2004 ($3,150,000)
Closed Price: $2,610,000 (Sept 2, 2009)
Discount from Latest Asking Price: 11.5%

Rivo Alto Island Waterfront Home – Completely Remodeled

25 East Rivo Alto home in Miami Beach

Over 100 linear feet on Biscayne Bay, on the preferred southern side of the Venetian Islands. This Mediterranean delight greets with a beautiful courtyard setting reminiscent of a European Villa. Gracious living areas and authentic touches throughout.  Upstairs are 3 bedrooms with Water Views in main home. The sale also included a separate two story adjacent guest house.

Key “Market Bottom” indicators:

“For Sale” Price: $2,590,000 (19 days on the market at this ACCURATE price point)
Bedrooms: 4
Bathrooms: 4
House S.F.: 3,894
Land S.F.: 13,382
Closed Price per S.F.(Land): $175
Closed Price per S.F.(House): $740
Previous Sold Date: 1998 ($950,000)
Closed Price: $2,350,000 (Sept 1, 2009)
Discount from Latest Asking Price: 9.2%

Biscayne Island- Incredible Land “Steal”

Miami Beach Venetian Island Home

Double lot on Biscayne Island this home needed to be updated. Biscayne Island is one of the Venetian Islands located on the Miami side. Located at the end of the street in a private cul de sac surrounded by million dollar homes. This one sold for well below land appraised value. Located just minutes from the new performing arts center, beaches, Lincoln Road, Ocean Drive, the airport, Downtown Miami, entertainment, shopping and more.

Key “Market Bottom” indicators:

“For Sale” Price: $700,000 (207 days on the market at this price point)
Original List Price : $1,500,000 (July, 2007)
Bedrooms: 3
Bathrooms: 2
House S.F.: 1,888
Land S.F.: 14,760
Closed Price per S.F.(Land): $38
Closed Price per S.F.(House): $301
Closed Price: $570,000 (July 24, 2009)
Discount from Latest Asking Price: 18.5%

What we’re seeing (again) is that Miami Beach waterfront and non-waterfront single family homes that are priced RIGHT have multiple offers and sell relatively quickly.

If you’re a potential buyer interested in purchasing, NOW is the time to pull the trigger if you qualify for a mortgage (count on putting 30% cash down of appraised value) or have the cash to invest in remodeling a home.  My advice is that under no circumstances should buyers be seeking to potentially “flip” or plan on making a profit on their property for AT LEAST five years.

Miami Beach single family homes (especially waterfront luxury properties) are in limited supply, and with most major financial news pundits announcing a “housing bottom”, I’d like to take this opportunity to highlight two latest sales in the island communities off Miami Beach which are indicative of this conclusion.

Venetian Islands Turnkey Home:

Venetian Islands Home

Venetian Islands waterfront home with stunning, direct, Downtown Miami unobstructed bay views. This 3,586 square foot home was renovated with 3 bedrooms, a great kitchen, media room and maid’s bedroom/bath. Facing west, with pool, boat dock and 60′ of waterfront.

Key “Market Bottom” indicators:

“For Sale” Price: $3,200,000 (20 days on the market at this reduced price point)
Closed Price: $2,800,000 (August 11, 2009)
Original List Price : $4,200,000 (May, 2009)
Previous Price Reduction: $3,400,000 (June, 2009)
Bedrooms: 4
Bathrooms: 5
House S.F.: 3,586
Land S.F.: 10,500
Asking Price per S.F.(Land): $304
Previous Sold Date: 2004 ($2,225,000)

Discount from Latest Asking Price: 12.5%

Biscayne Island Home – Wide Bay Fixer Upper:

Biscayne Island Home

Opportunity to complete the remodeling of this Spectacular Waterfront residence located on the Miami side of the Venetian Islands chain.  The new owners will enjoy the Panoramic water views of a home located on a 15,000 lot.

Key “Market Bottom” indicators:

“For Sale” Price: $2,137,500 (5 days on the market at this reduced price point)
Closed Price: $2,030,000 (July 16, 2009)
Original List Price : $6,7500,000 (February, 2007)
Previous Price Reduction: $2,500,000 (March, 2009)
Bedrooms: 3
Bathrooms: 4
House S.F.: 4,010
Land S.F.: 15,000
Asking Price per S.F.(Land): $142
Previous Sold Date: 01/2007 ($5,350,000)

Discount from Latest Asking Price: 5%

If you’re a potential seller of waterfront real estate in Miami Beach and cannot hold on to your property because of negative cash flow (probably if your housing expenses total more than 31% of your gross income), the smart approach is to price right. Working with a knowledgeable, honest, and experienced sales agent is the key here, and the price needs to be based on the last three to six months of closed sales.   My team and I have experienced that Miami Beach waterfront properties- whether they are single family homes or condos which are priced RIGHT have multiple offers and sell quickly.

If you’re a potential buyer interested in purchasing, NOW is the time to pull the trigger if you qualify for a mortgage (count on putting 30% cash down of appraised value).  My advice is that under no circumstances should buyers be seeking to potentially “flip” or plan on making a profit on their property for AT LEAST five years.  There are many reasons why we can expect to see an initially FLAT and then GRADUAL price appreciation in Miami Beach real estate market for several years.  Times have indeed changed, but the opportunity to purchase a discounted PRIME waterfront single family home or condo is now!

Over the past month, my team and I have witnessed a significant increase in buyer activity for what I consider to be “A” real estate properties.  These can be quickly defined as:

- Miami Beach waterfront condos in buildings such as The Murano, Murano Grande, Icon South Beach, Portofino Tower, Continuum, and more affordable buildings such as The Waverly and The Floridian along West Avenue.

- The more popular luxury waterfront single family homes located on island communities such as The Venetian, Palm, Hibiscus, and Sunset Islands.

Whether it’s a single family home or condominium, an additional requirement for an “A” property in this Buyer’s market is that it be turnkey, or completely remodeled and updated.  In other words, the only additional expense a buyer has to be concerned with is moving in with their furniture and personal belongings.

It’s been our experience recently that single family homes and condos, when priced RIGHT, are bombarded with buyer interest and generally receive multiple offers.  We are witnessing a new surge of buyer interest in these “A” location properties in the South Beach and the greater Miami Beach real estate market.  Our real estate websites are also seeing a dramatic increase in traffic, with local cooperating brokers calling with inquiries and sending us multiple sales contracts.

All of these signs are indicators that the bottom is very close to being reached, and sales are beginning to come back, with prices to GRADUALLY follow as the “A” inventory diminishes.

A few examples of “A” real estate properties currently on the market:

Venetian Island – Greatly Reduced Waterfront Home

Rivo Alto home in Venetian Islands Miami Beach

Romance is felt throughout this Mediterranean waterfront home situated on 10,500 sf of land, spanning 60 feet of wide bay waterfront facing the Miami skyline. This timeless residence with unique architectural features contains over 4,117 sf of living area, with 5 bedrooms, 6 full and 2 half baths.

Current Asking Price: $3,199,000
Original Asking Price : $4,250,000
Bedrooms: 5
Bathrooms: 8
House S.F.: 4,117
Land S.F.: 10,500
Waterfront:  60 ft. with Dock

San Marino Island- Significantly Reduced Turnkey Waterfront Home

San Marino Waterfront Home in Venetian Islands

A fantastic opportunity to own an oversized waterfront lot.  This Mediterranean waterfront estate has 90 feet on the water, located on the Venetian Island causeway between Miami and Miami Beach.  Beautifully redone with gourmet kitchen, brazilian cherry hard wood flooring, fireplace, office/library, and award winning landscaping!

Current Asking Price: $2,950,000
Original Asking Price : $4,599,000
Bedrooms: 4
Bathrooms: 5
House S.F.: 3,370
Land S.F.: 15,750
Waterfront:  90 ft. with Dock

Portofino Tower Condo- Spectacular Atlantic Ocean, Fisher Island, and Miami Beach Skyline Views

View from the Miami Beach Portofino Tower Condo Unit #3402

This high floor condominium is a real flow through floorplan with two expansive and very private terraces with the most stunning views of Fisher Island, Downtown Miami, Miami Beach and the Ocean.   A Grand Foyer entrance, floor to ceiling  windows, a unique floorplan, and the most exquisite upgrades make this condomimium one of a kind.

Current Asking Price: $1,500,000
Original Asking Price : $1,795,000
Bedrooms: 2
Bathrooms: 3
Condo S.F.: 1,960

The current status of the real estate sales industry, especially those working the Miami Beach market, is in a state of change and consolidation.  I started my Real Estate career in 1998 with much success, and that success has grown each year both during the “boom” market of 2002-2006 and the current “bubble burst” market.  During those “boom” years, it seemed as if everyone and their friends had a real estate license.  Real Estate became the “in” topic of discussion- due both to the lucrative commissions and also the cultural and social appeal of shows such as House Hunters, HGTV, etc.  It seemed as if everyone wanted to be a part of the real estate phenomenon, and this was easily attainable via easy mortgages and equity lines of credit.

The “easy” money in earning a real estate commission from the sale of a property is long gone.  Today’s market requires Agents and Brokers who have strong organizational skills, attention to detail, intimate knowledge of realistic market values, a close relationships with lenders, patience, and most importantly strong negotiation skills.  The task of taking a buyer around and showing him some good “deals” is just the beginning of a successful real estate transaction.  In this market, the key is to provide a strong value-added service to the customer (both to buyers and sellers).

My professional strategy for the last few years has been to focus on investing in both the people who comprise my team and in marketing resources for our clients.  This involves such mundane but important tasks as maintaining meticulous files and a system for following up with pending offers and contracts, as well as investing in new marketing resources that allow us to promote our clients properties to influential Brokers around the world.  My highest priority, however, has been to build and retain a trained, motivated, knowledgeable, and honest team of agents that are committed to the business.

A few of the latest successfully CLOSED sales of Miami Beach single family homes that are worthy of note:

Palm Island Luxury Home

Palm Island Luxury. Granite kitchen counters w/stainless viking equipment. Marble floors and terrace with hard wood in bedrooms. Large master with walk in closets & balcony. Infinity set river rock pool w/paver deck and wet bar. Seperate maid quarters. Full emergency generator and Gated entry to prestigious Palm Island.

Sales Price: $690,000
Previous Asking Price : $1,150,000
Bedrooms: 5
Bathrooms: 4
House S.F.: 2,694
Land S.F.: 6,000

South Beach Home

Rare single family home in South Beach by renowned 1930s architect. $325k+ renovation incl new: tile roof, PGT impact windows, HVAC, elec, plumbing, lighting, heated salt pool, marble paver deck, prof landscape. New in 2008: sleek custom kitchen w/ Sub-Zero/Thermador/Bosch, exotic stone; 3 new marble baths – Hansgrohe/Duravit/Toto fixts, body sprays, wenge vanities. Original wood floors, 11′ ceiling in sunny rotunda Living Room w/ honed coral-rock fireplace, Moorish detail arches. Corner lot in Flamingo Park neighborhood of Miami Beach.

Sales Price: $1,139,750
Previous Asking Price : $1,350,000
Bedrooms: 3
Bathrooms: 3
House S.F.: 2,142
Land S.F.: 7,500

Venetian Island Waterfront Home

Prime Venetian Island property, 60 x 175 waterfront lot with 10,500 Sq. Ft.  Minutes from South Beach, The Performing Arts center, and Downtown Miami.  Panoramic Bay views of Downtown Miami, the cruise ships, and Palm Island.  This home offers Miami Beach waterfront living at its finest!

Sales Price: $1,970,000
Previous Asking Price : $3,350,000
Bedrooms: 5
Bathrooms: 5
House S.F.: 3,268
Land S.F.: 10,500
60 ft. of waterfront

Everyone keeps asking – how long until the market recovers? Particularly if you are a seller today, a better question to ask is how the Miami Beach Real Estate market has actually performed over the past two months. I’m not going to mince words here, the reality is that the mortgage and real estate crisis is having a strong downward pressure on prices (yes, even in South Beach).  The strongest pressure, however, is occurring on the lower and middle range of the Miami Beach homes market.    The high end of the residential market, particularly for completely remodeled and turnkey waterfront island homes, continues to experience strong demand and remains relatively insulated from the current financial crisis.

If you are a potential seller, all is not lost and now is when when savvy buyers are purchasing spectacular waterfront properties in Miami Beach (such as Palm, Star, Hibiscus, Sunset, and the Venetian Islands).

As a reality check, let’s take a look at the latest closed sales of single family waterfront homes and non-waterfront foreclosure homes in Miami Beach:

The Venetian Islands

Venetian Islands Home - Kitchen

This completely updated 3,500 sq ft 3 bed/3.5 bath home features: Downtown Miami & sunset views on open water bay view on a 11,375 sq ft lot has 65 ft water frontage
Asking Price:  $4,495,000
Sold: $3,700,000 ($1,057/SF house)  ($325/SF land)
Closing Date:  12/30/08

Palm Island

Palm Island

This private Mediterranean estate boasts spectacular bay & downtown Miami skyline views, resort-style pool and 4-car gar. Lavished w/exquisite Old World details, the interiors have soaring ceilings, fine inlaid marble, hardwood flrs, exquisite moldings, custom blt-ins, columns, arched windows. Dockage for the yacht of your dreams with water frontage of 100ft.
Asking Price:  $10,900,000
Sold: $9,750,000 ($1,227/SF house)  ($325/SF land)
Closing Date:  9/11/08

Sunset Island I

Sunset Island Home

165 feet of open bay frontage and direct access to the Atlantic Ocean and 37,578 sq ft of property, this home offers expansive views, resort-like pool deck and spa, and oversized master bedroom & bath.
Asking Price: $8,900,000
Sold: $6,250,000 ($945/SF house)  ($166/SF land)
Closing Date: 12/23/08

Miami Beach

Miami Beach Home

Remodeled with updated kitchen and granite counter tops & stainless steel appliances, arched doorways and terracotta tiles.  New roof and windows with lush tropical landscaping with privacy for homeowners.
Orginal Asking Price:  $1,175,000
Foreclosure Sold Price: $350,000 ($179/SF house)  ($46/SF land)
Closing Date:  12/24/08

As the last example above illustrates, in a market that’s still in decline, the market reality between the upper and lower end of the residential real estate market is significant!