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Miami Real Estate-Developer Closeouts and Bulk Sales

By
Real Estate Agent with www.HomesForVIPs.com - Keller Williams Realty

Many of the big developers appear to be holding firm and not selling their remaining inventory at deep discounts choosing to wait out the market. Others are renting out their units for cash flow. The developers in the most trouble are the small to mid-sized developers who were caught by surprise by the current market. Typically, they had most or all of their units sold, and subsequently, many unit owners walked away from their deposits and these units did not close. In some cases, the developers have most of their units unsold. Overall, the Miami Beach market is in better shape than the Downtown Miami, Brickell and Midtown areas. We are seeing more flexibility in these markets compared to those in Miami Beach.

Unfortunately, the buzz phrase du jour is "I can buy it for 50 cents on the dollar", which as you can imagine does not sit well with most developers. This has become the vultures mating call. In some cases, the deals will be made, but for right now many developers will not deal at the deep discounts some vulture funds are seeking, which is similar to what is happening in the real estate market in general here.

The sellers are holding firm at prices higher than the buyers are willing to buy at. A lot of the bigger or more prestigious developers are offering "deals" that are 10%-20% off of the "list" price, which are not really deals. There definitely are deals out there. you just have to know how to find them. I suspect in the next several months we may be seeing more developers in difficult situations with distressed properties. For right now, many are "waiting it out."

Currently, we are working with several developers that have product ranging from $200 per sq. ft. to over $300 sq. ft. in several different locations throughout the Miami and Fort Lauderdale areas, as well as Palm Beach County.

For more information on the Miami and Miami Beach markets, please view our website at www.HomesForVIPs.com or contact me by email or by phone at 786.553.0697. For more specific information on bulk sales and unique deals, please see Bulk Condo Sales at my website. Michael Sahlman is a Certified Distressed Property Expertand a licensed Realtor who writes a regular column for leading publications in the South Florida area.

Comments (2)

Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Just when I was ready to buy a condo in Miami !

thank you for the report

Jun 19, 2008 12:51 AM
Anonymous
Clarence Scott

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Aug 07, 2008 07:32 AM
#2