Miami Real Estate

GONE are the days when you could slap down 5-10%, and scoop up a 90-95% loan… moving in thirty days later!   Buying a single family home or condo in Florida?  If so, you will likely need to scrounge up 20-30%  for a down payment…  unless you fall into one of three categories:  

1) You have a high net worth and  a Private Banking Arrangement ( Private banking arrangements are limited to individuals with substantial net worth.)  Through a private banking arrangement you CAN  probably get 100% financing (or close to it).

2)You are applying for an FHA loan. If so, you are looking at a down payment of  3.5%,  with the lender financing the balance. FHA  does limit the purchase price  to $423,000.00 though.

3) You are a Foreign Investor. If so, you are looking at a down payment as high as 40-50% .

According to the loan amount you are applying for,   buying a single family home or  condo  anywhere in Miami,  will require you to come up with down payments of:

20% for loans up to a million dollars

25% for those  from a million  to $1.5

30% for anything  beyond $1.5

Vacation (or second homes) have slightly more stringent guidelines, demanding:

25% down on values up to a million

30% down on those over a million

For a more detailed analysis on down-payment requirements in South Florida, take a look at  Juicy Estates’ blog article by James Venney.

Foreign buyers, by and large, are required to come up with cash down payments of  as much as 40-50% of their real estate investment, in order  to obtain a bank loan on a Florida  home purchase.  Looking to buy property in South Florida?  Contact the Restivo Team at EWM Realtors at 305 793-1365.

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What if you want to buy a house with PARTIAL SHUTTERS, or  without  any SHUTTERS WHATSOEVER? Not all homes for sale in Miami come with hurricane shutters!  Actually,  you might be rather surprised at how many homes  have NO  hurricane shutters…  NO impact glass… no protection!.

Can you  GET windstorm insurance on a house without shutters? In applying for a mortgage,  your lender will require windstorm insurance…. but the question is CAN YOU GET IT?   The word is out  that Citizens  may REQUIRE   the house you are buying to  have hurricane protection on ALL OPENINGS…  (if  the value of the house is $750,000.00  or more).   Wow!  And if it doesn’t … what then?

Buying a new home in South Florida ?  You’ll probably want  information  … up to date, current  data… about  the latest  windstorm insurance requirements. Don’t rely on here-say!

Buying a house with PARTIAL SHUTTERS, or one completely WITHOUT shutters? There ARE  a couple of  quick fixes.  Here’s one:  Citizens will provide you with windstorm coverage, temporarily, right from the date of purchase, as long as the house is brought into compliance within a specified period of time  (That time is  SHORT … to be blunt… but it can/and will… do the trick in a pinch.)   Citizens will give you just under two months (post-purchase), to bring your shutter situation up to code!. Citizens will cover a property that has no shutteres (or has partial… or  ‘not-to-code’ shutters), provided that the buyer brings the property up to snuff within 5o-some-odd-days from the time of purchase.   EWM Realtors Vicki Restivo and Alexandra Restivo  offer solutions, and make home-buying easy.  Questions?  The Restivo’s have answers!    http://www.MiamiRealEstateCafe.com

South Florida’s MAIN carrier  is Citizens. (Yes, there area handful of other windstorm insurers… but, they are few and far between).  A couple those  OTHER carriers, by the way, will insure properties that have no shutters.  They impose a value limit  up to, and not beyond,  a million dollars on the home itself.  If you’re looking to  buy a home  or vacation property in Miami,  rely on a Realtor who knows the ropes:  We’ll walk you through the process… one step at a time:   305 793 1365 Vicki Restivo…   305 632-1064  Alexandra  Restivo . Have the right information at your fingertips.  There are so many ways to save money when purchasing a home … and it’s not JUST on the purchase price or on insurance!   

Windstorm rates in Miami are promulgated.  And for some odd reason,  rates are higher to the west side of the highway…  lower to the east side of the highway.  (By ‘highway’  I am refering to  US 1…   also known as South Dixie Highway).  For the life of me though, I cannot fathom why  rates GO DOWN as you get  nearer to the water, but they do…  and if you can explain that,  I’d love to hear from you!

Throughout Miami,  you’ll see absentee owners  whose homes are barracaded for the season … contrasting with others of us,  slapping together last-minute or ”partial -shuttering” …  (as the shelves of Publix are nearly literally being stripped of food).

Miami is a breed in and of itself… a melting pot of ideas … Some of us look forward to our hurricane parties… neighborhood  festivities and comraderie.  Others flee.  (I’ve  done both:  Once forced to evacuate because we were in a floodzone, but every other time, we’ve stayed  to savor  forced  computer -abstinance, no  AC or  electricity…  as we hunker down and relish  pre… and post… hurricane parties … tepid beverages, and barbeques, and spit baths,  pooside!)

Many ”Miamians” have  lived in the same home and  same neighborhood for years or decades, with no  hurricane protection (ever!)  and  no damage  (ever!).  Eventually,  a few of those iconic homes actually go up for sale.  You MAY stumble across one … fall in love… and decide to buy!

Yes, you CAN buy a home with NO  hurricane shutters AND  yes, you CAN get insurance on it.  You’ll just have to bring the house into compliance in just under 2 months… if Citizens is the carrier…  or… you can opt to pay  higher premiums…  use an alternate  carrier…  and keep up the ‘tradition’ before you.   There ARE CARRIERS  who will cover a house valued at up to $1,000,000.00  with  NO  shutters …  and  NO obligation to install them…. for  a higher premium.   The Restivo Team at EWM Realtors ( 305) 793-1365 or 632-0164 will give you the resources, and  spell out the options.   There are ALWAYS options.   Call us.  We’ll help.  Together, we’ll find you just the right house …   MiamiRealEstateCafe.com  Contact Us with any questions.  We’ll  respond (and may well blog about it  too… because if you’ve got a question, chance are,  someone else will have one too!).  Buying/ Selling?  Contact me.

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Out-of area appraisers are the name of the game in Miami these days.  How do these appraisals affect  property sales? Do out-of-area appraisers actually have adequate knowledge about neighborhoods they are covering?  How do they come up with accurate appraised values? What about school boundaries/ratings/or projected plans? What about local market nuances?  Do they have the necessary, pertinent information for determining neighborhood property values? 

As reported in the Wall Street Journal, August 18th: “Squeezed by a drop in fees, some appraisers are compensating by driving long distances to handle more assignments. Their wanderings are raising questions about whether they know enough about the neighborhoods to accurately assess the value of homes—which has implications for both home buyers and owners.”   For the full Wall Street Journal article, “Reappraising Home Appraisers” written by James R. Hagerty… click here.

Brian L. Frank for The Wall Street Journal

Hagerty goes on to say:  ”Appraisers like Evie Salazar     are traveling far afield to find work. In June, Evie Salazar traveled about 75 miles from    her office to do an appraisal. Usually, Ms. Salazar says, she tries to work within about 40 miles of her home, but business was slow at the time she accepted that job.” “You do what you’ve got to do at times to feed the family and pay the bills.”

‘Desk top’ appraisal reviews are fairly common these days, not to mention ‘drive by appraisals’. Lenders are now outsourcing appraisals at fees substantially below what  lenders normally pay, and I must say, I have to wonder what the long term affects of this outsourcing might be. 

Realtors and loan officers, more often than not, have no say whatsoever in selecting an appraiser. In Miami, appraisers are coming from as far as 50-75 miles away, which concerns me. It takes me back to the question, “Does an out-of-area appraiser have sufficient knowledge about the area they’re sent to cover?” 

I prepare a Comparative Market Analysis (for myself, my buyers/sellers) and I make it available to the appraiser as well.  Often it’s helpful, particularly if the appraiser  is less than familiar with the local area. 

Whether buying or selling,  use a Realtor… a good one!  Much goes on behind the scenes (from the moment the offer is written, all the way to closing)!  Avoid your deal turning into the dreaded ”deal breaker”… Work with a really, really, really good Realtor and make sure your sale actually ”goes through”.  It’s not enough to sit by the sidelines and cross your fingers.   Getting a buyer is just step one.   Getting to the closing table… walking away with keys and title… is the finish line.  For more information on buying and selling property in South Florida, visit  Blog and Website MiamiRealEstateCafe.com

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When you buy a new home anywhere in Miami, you CAN transfer your HOMESTEAD ASSESSMENT DIFFERENCE to that new property.  Perhaps you’ve heard it referred to as “PORTABILITY”.

Property owners in Florida can transfer  up to $500,000.00 of their previously HOMESTEADED PROPERTY ASSESSMENT DIFFERENCE to a new  HOMESTEADED property as long as they do so within two years of the date  of sale (of that former house).

If your new home is MORE expensive than the one you’re selling  (and the MARKET VALUE  is more) your entire homestead assessment can be transferred (up to the $500,000.00 limit).

If your new home has a LOWER market value than the house you’re selling,  your ”PORTABILITY” amount will be proportional to that difference. Here’s the government link to stay current on Portability updates.

Portability covers all of Florida,  so if you are moving to Miami-Dade from another county, you can certainly transfer your Homestead Assessment Difference from that county to Miami-Dade (subject to that other county’s determination as to  transferable eligibility values).

In the case of multiple owners or multiple transfer recipients,  portability cannot be ‘split’.  Homestead Assessment Difference is transferable from one residence  to another, only… and both homes must be homesteaded properties.

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Yet another news-worthy snippet:   Sunday’s Miami Herald reports that  Miami Home Sales ARE UP! .. and Inventories are down!  The New York Times has much the same news regarding THE CURRENT REAL ESTATE MARKET IN MIAMI!   (What a breath of fresh air… even though I swear  it’s still hot as blazes in Miami!)… Well, word is that “the tide may have turned”.   Real estate prices haven’t quite begun to edge up  … yet …  but, residential sales have in fact visibly risen.  South Florida appears to once again be jockeying toward a semblance of recovery. The Miami Herald begins to  murmer that  MIAMI REAL ESTATE SALES ARE ON THE RISE .  

Ron Shuffield, President of EWM Realtors ( in his Q&A for the August 16, 2009  Sunday, Miami Herald)  responded to the question: “Is it true that sales are up and inventories are down?”   with a definitive:

“Yep!”   ”The numbers tell the story… Broward and Miami-Dade residential inventories continued to decline during July, according to data from the Multiple Listing Service (MLS). Inventories dropped from 74,966 total homes and condos for sale in July 2008 to 49,058 in July 2009 a 35% decrease in just 12 months. During the same time-frame, sales increased 47% from an average of 2,518 sales per month. The inventory supply across both counties decreased from 30 months last year to 13 months today. Decreasing prices have beeen the prime motivator for our spike in sales this past year. 

If you’re SELLING, now is the time to make sure that your property is priced accurately. If you’re BUYING, your CHOICES  will continue to decrease throughout the remainder of 2009.  Check out the Facts & Trends reports at www.ewm.com/trendx to see the numbers for your area and price range… or ask one of our associates to expand your search using our complete data file. Deals are happening.”   

Looking for property in Miami, or Market Updates?    MiamiRealEstateCafe.com  BLOG…    Alexandra and Vicki Restivo at EWM Realtors   restivo.v@ewm.com  305 793-1365

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A charming 1 bedroom / 1 bathroom condo is available for sale! Asking $130,000 in the stunning Brickell area, this unit features 7th floor views of the Miami River. Double balcony off Living Room / Kitchen / Bedroom. Loft-like. Washer and Dryer in the unit. Upgraded. Brickell nightlife and restaurants at your footsteps. One of the lowest prices in the building…Do not miss out on this fantastic opportunity!

Click here to see a brochure and contact Vicki or Alexandra with any questions!

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As prices on Miami condos have dropped  (Miami Condo Buildings slashing prices as much as 50% ),  Miami is seeing a notable rise in the number of  condo sales!  The real estate market  in Miami appears to have turned!   

The  New York Times  reports on July 29,2009,  “Despite a vast oversupply of new condos in downtown Miami, sales have been brisk lately… The reason?  Prices have been cut in half…”   Miami Condo Sales are  UP says New York Times writer Terry Pristin … and what she is reporting, we too are seeing first hand:  “Square Feet: As Prices Plummet, Condo Sales in Miami Perk Up”.

Condo sales are indeed up, and multiple offers on Miami real estate  are a refreshing change from what Miami has seen over the past few years!  Miami has witnessed an obvious oversupply of newly built  condos, in recent years.   Literally within the past 1/2 decade,  more than  23,000 new condo units have  sprung up, dramatically altering the skyline of downtown Miami and  Brickell.  That glut of over-development remains, at least in part, with close to 10,000 condos remaining on the market  (unsold!) at  the start of summer, 2009. 

That being said,  the feared “bulk purchases of condo units by investors” has yet to impact Miami as many thought it might.  Bulk purchases of condo units at wholesale prices have been rather “building specific”.  Although investors did swoop in from around the globe,  attempting to negotiate bulk purchases with condo developers on Miami Beach, in Brickell, Downtown Miami and Downtown Dadeland,  relatively few of those bulk negotiations were successful.   Contrary to the forecasted “hundreds” of buildings thought by many to be at risk  for bulk buy-outs, the numbers  actually succumbing to those bulk buy outs have been rather more conservative .  I’m estimating  perhaps thirty to forty buildings succumbed to discounted wholesale pricing bulk buy-outs. 

The vast majority of all condo sales are  actually selling at current market retail pricing….  Yes, current market pricing is definitely lower than condo pricing  per square foot, even a year ago.   As a result, Miami condos are moving and selling… priced at “current market prices” , and buyers still sitting on the fence may be waiting too long!  Price per square foot in  Brickell/Downtown  is now settling at slightly above $200 a square foot on  brand new construction high-rises,  providing some really good deals for buyers.  No doubt, there are  still numbers of buildings and individual units  selling for WELL over that…  particularly  the well-established older buildings …  for example  the Bristol and the Santa Maria, to name just two.  

Buyers are  literally lining up at the doors these days to own new condos in  new buildings says Vicki Restivo, Realtor with Esslinger Wooten Maxwell Realtors in Miami:  ”While  it’s  by no means the “buying frenzy”  Miami saw during the pre-construction phase  of the condo growth spurt of several years back (where lines  literally went down the block and around the corner for pre-sales at 500 Brickell and The Plaza on Brickell) …   buyers  who dillydally  are missing out on contracts as other ready and willing buyers move-in and grab up contracts.   I’ve seen it first hand on several occasions.  Earlier this summer I was working with  international buyers looking for  waterview property on Brickell.   Fully aware of the  market and the value,  and going in with eyes WIDE open, those buyers were primed and ready…  and didn’t hesitate when we found the ‘right’  condo.  We submitted our offer within minutes of  having seen  a handful of units on Brickell, after selecting THE  one that worked best for them.   Another  (slower) prospective buyer and realtor saw the same unit that same morning… but they went for a quick bite  to ponder their options while we  sat down and immediately drew up an offer.   In the time-frame of a mere  hour we’d secured the condo.  ( The other realtor and his group returned after lunch to buy it, but we’d  already negotiated  it out and sealed the deal.)  That story is by no means an isolated one.  Three other times that same week (that I’m personally aware of)  one  buyer procured a condo literally  minutes ahead of another contract being presented.  Condo sales are definitely “perking up” (to use Terry Pristin’s observation !)”.

There  is unquestionabley a glut of oversupply of new condos in  Brickell and in downtown Miami.  Some  buildings are tough to get financing in, and therefore require buyers who are not reliant upon financing . Criteria  for financing hinges upon 1) the number of units sold versus unsold, 2) the number of owner occupied units (primary residences  and  second or vacation homes) versus rental units owned by investors and leased or rented out to tenants, 3)the number of owners  30 days or more  in arrears on their association fees, and 4) the number of short sales and foreclosures in the building.  

A handful of new condo buildings already have Fannie Mae approval, allowing buyers to procure lender financing.  Sales are up,  and  notably so.  Prices dropped at 500 Brickell by 30% this past spring.   One bedrooms in 500 Brickell (which, by the way, is Fannie Mae approved) can be had for as little as $200,000.00 … (or slightly less, if  having a high floor with a view isn’t a “must” for you!).   Although price per square foot is often referred to, there is a definite correlation between price and the FLOOR the unit is  on (as generally ’height’ corresponds to ‘view’!)  Two bedrooms are selling  as low as the mid $200′s  (upward)  in some buildings… depending upon location and view.   The Plaza on Brickell has some very competitive pricing and offerings.  One tower at the Plaza on Brickell is already Fannie Mae approved, and the other  tower is expected to be so, literally any day now. 

Prices don’t seem to me to be dropping any further… at least not this week.   Condo-pricing is buyer-friendly right now, and  units are moving off the shelves at a consistent clip.  Buyers (for the most part) no longer seem to be on the fence.  They are poised and  quick to make their move as the market seems to be showing signs of recovery…. hence, condo sales are up.  According to  real estate professional Ron Shuffield, President of EWM Realtors (owned by Warren Buffet) , condo sales in newly constructed buildings  increased by over 50%  since the spring of 2009.

The NEW YORK TIMES article published  July 29,2009  by journalist Terry Pristin gives valuable insight into Miami’s current condo market.  For a link to that article , click here.  Having a pulse on the Real Estate Market gives you insight and ammunition!  Your thoughts and insights are welcomed on MiamiRealEstateCafe’s Blog.  Feel free to comment and/or ask questions.  If you,  or someone you know,  are looking to buy real estate in Miami,  Alexandra and Vicki Restivo at EWM Realtors are never too busy for any of your referrals!

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The buzz  IN THE NEWS  over the past couple of days:  

South Florida MAY have already seen the BOTTOM of the REAL ESTATE MARKET! 

 The  Real Estate market may now, finally,  be headed upward… At the very least it appears that we are somehow stopping the bleeding!  

Good news nationally!  The US economy may be on it’s way toward a modest recovery.  Housing signals point our way out of the recession. Great news for Miami!  

With new housing sales spiking 11% nationally in June … (the biggest gain since 2000)…  that also marks the largest margin in  9 years!  The National Association of Realtors (NAR)  reports that price declines are slowing,  and that existing home sales rose  by  3.6%   in June.

  CNNMoney.com reports that the June new housing  sales jump may fuel the way out of this recession.  

The glut of overdevelopment has unquestionably  been concentrated in Florida, California, Las Vegas.   Has the housing market  indeed just  ’bottomed out’?  If so, we will  likely start to see sellers and builders less willing to make concessions.   The  housing market  traditionally drives the economy (and  until recently…  it has been driving it down).  News that we may have already touched bottom is indeed welcome!  Encouraging not only for Florida and California, but globally!   The housing market plopped  us into this recession.  Spiking sales of new homes in June may have  just marked the turning point… and …may have already begun pulling us out of the recession!

Fact is… the only REAL way we will know  WHEN we’ve hit  bottom, is with the benefit of hindsight… and only after the tide has turned.   Perhaps it has!

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A few condo buildings on Brickell seem to intrigue buyers more than others.   International buyers gravitate toward a handful  that epitomize the ‘dream’ of living IN MIAMI,  and  South Florida’s sunny, easygoing  lifestyle.  One that  appeals BIG TIME to foreign buyers is THE PLAZA ON BRICKELL .  The Plaza is actually two towers: 951 Brickell Avenue  and 950 Brickell Bay Drive. (The two towers are also somewhat confusingly referred to  as #851 and #901,  from  recent pre-construction days, before  the US Postal Service changed the “original” street addresses.  You’ll  occasionally  find  listings on  Realtor.com, or through the MLS, or other websites – condos listed currently for sale or for lease -  referencing  those old street numbers. ) 

Brickell (literally overnight) became Miami’s  “in”  place to own a condo …  in large part due to the addition of Mary Brickell Village , which added charm and infrastructure to the area, and made Brickell come alive!   Read more about Mary Brickell Village here.

The PLAZA ON BRICKELL  has breathtaking night views (waterfront  mixed with city-lights),  spacious balconies and  sleek design.  There are (as of this date) still a handful of one-bedroom units with  striking views (water, city and pool) priced between $276,000.00 and $355,000.00 including a lovely 847 square foot unit on the 43rd floor.  Realize that you are looking at an additional 6%-12% percent below the current prices I’ve quoted above.  The developer is selling out the last of the units, and making for some interesting buyer opportunities  at below the  original preconstruction pricing.   Give us a call if you’re interested in buying one of the units in The Plaza… Contact us by email at restivo.v@ewm.com … or respond via our blog here at MiamiRealEstateCafe.com.

The two  “Plaza” towers are veritable   “eye-candy” … especially for  foreign buyers …  a ’sweet deal’.   I’m intrigued  though that  less than 20%  of the building was purchased (thus far) as income property (to be rented out) …   Buyers seem to be purchasing condos in The Plaza on Brickell as their primary residence,  or alternatively as a second home/vacation property. 

Of the 560 units in  Tower #851:   389 have closed so far, and 32 others are under contract.  There are 139 units left to be sold, as of now.    

Of the 440 condos in Tower #901,   392 have closed and 12 more are currently under contract, leaving 36 available for purchase.  

Statistics for  owner occupied units/vacation homes/ and investment property in The Plaza On Brickell are worth noting:  58% are owner occupied, and 23% are vacation or second homes, and 19%  were acquired  by investors for rental purposes.  Fannie Mae approval is expected  within the next two to three weeks.   You are invited to contact us for updates.

Please add your thoughts or insights regarding Brickell, it’s infrastructure, condo purchases or opportunities.   Your input to the MiamiRealEstateCafe Blog is MORE than  welcome!

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For Sale ! 

MIAMI BEACH  MANSION… 

UP IN FLAMES! 

Firefighters have been battling a fire in Miami Beach since 8:30 this morning. Fire has literally engulfed this Miami Beach mansion, located on

4462 North Bay Road

… reducing it to rubble.    

Listed for SALE at $6,900,000.00 (a HUGE price drop from it’s $11,750,000.00 asking price of last summer) … the property will be worth land value now .    Built in 1925, and in need of renovation/restoration, the property was literally a castle.  The waterfront mansion was a 10 bedroom 7.5 bath paradise, with dock ,  stunning water views, city views, indoor and outdoor pools, home theater, and a separate gym.

With the Miami Real Estate Market taking such a hit over the past couple of years, questions as to the cause of the fire loomed high this morning.  Story is being covered in depth by CNN, and by  Jim Berry  on CBS4.

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