Oceanfront Condo Deals-Bank Owned, Short Sale, or just a Motivated Seller?

The economic situation and the housing market has brought the spotlight on to SHORT SALE AND BANK OWNED  properties as I have written in a previous post.  There are oceanfront condo opportunties in Miami, Fort Lauderdale, Boca Raton, Pam Beach, Sunny Isles, Bal Harbour…every where.   As many buyers have come to learn, the short sales process can often be a shot in the dark.  The offers are submitted to the bank and the banks response time is an unknown.  But…. short sales are getting closed.  

Some of the Bank Owned units coming on the market are priced well below market value, creating an auction type response.  Buyer’s submit their best and highest offers.  The banks look at all the offers that come in within a certain period of time and select the best offer with the best terms.   Those selected offers are most often cash purchases with a quick close and can be well above the listed asking price.  Timing is key because once these properties hit the market, the offers come in within hours and are submitted to the bank very quickly.  The last offer we submitted for a buyer had to be within 48 hours of when the property became listed for sale.  Our buyers offer was above the asking price but not high enough.

And then there are MOTIVATED SELLER.    We have had great success in finding motivated sellers for our buyers.  Finding these great opportunities are very building specific and unit specific  but they are out there.  These buying opportunities are very straight forward and can be sold and closed very quickly.  

The Beach Club in Hallandale is an oceanfront condo with 1200 units and in great demand. For illustration purposes let’s look at the data for The Beach Club for the past 6 months. 

 

As you can see, there have been a total of 56 closed sales.  Of the all the closed sales,  more than half have been sold directly by the owners not in any distressed situation forcing a short sale or foreclosure.   I think it would be safe to say that successful seller’s of oceanfront condos in South Florida are well aware of market conditions and are aggressively pricing their units to sell.  

Sales at the Beach Club not long ago were averaging $500 per square foot and up.  The lowest priced closed sale was a bank owned unit at $241 sq.ft. 

Short Sales, Bank Owned and Motivated sellers present buying opportunities.

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