Why 4 Seller’s Didn’t sell their South Beach Condos for Sale this month (Part 3)

Clearwater Beach Florida – If you landed on this article you’re coming in at the end on South Beach Condos for sale on Sand Key and our experiences and my market analysis as your Certified Luxury Home Marketing Specialist on Clearwater beach area.  We would encourage you to check out the first two articles so you’ll understand more about why four South Beach condos on Sand Key FL didn’t sell this month. Here they are:

We showed these buyers over 10 of the 22 units for sale. These out of state buyers chose to skip all South Beach condos that were short sales since there are so many unknowns including what price the bank will ultimately demand from the buyer or will the property end up being foreclosed on and the buyer ends up with nothing as prices rise. They also picked units that were updated with good views since they weren’t looking for huge work to be done – when the come to Sand Key they want to enjoy our beautiful beaches not do home improvement projects. They expected to pay more because the units they were interested in had major improvements.

South Beach Condos for Sale – Buyers on a Mission

Their mission: Pick out top five condos you’d be happy in since we could tell from the prices “the appraisal” was going to be an issue but they also knew we definitely wanted to buy in the South Beach condo community by this time. Now this is when it got tough…the prices for the South Beach condos for sale we were interested in were asking $399,000 to $425,000. Now we discussed the 3 sales in (Part 1  and Part 2 ) the last 90 days – we had just entered the equivalent of the Real Estate twilight zone – where fact and fantasy are intertwined more than we’d like to admit.

We found seller’s obviously thought their South Beach condos were worth more than the marketplace and appraisers do today. We heard “how the seller’s had put $50,000 to $100,000 into the unit” – what that means to a “good buyer” is – I may stretch to offer you top dollar it doesn’t typically mean the buyer will compensate you and pay 30% over what anyone else is paying cause because they love your stuff so much. Maybe we even make up a little if the appraisal comes in short – because for example, I do really want hurricane shutters and you electric ones are already there and there’s a small difference so I’ll make up a little short fall. But seriously folks, does anyone really think you get your money back out on improvements done in last 5 years? We’re in a real estate market that’s been clobbered in values – most of the times by greater than 50% and lenders still see it as a slightly declining market and there’s a value range if you want to sell today (or this year) based on current solds (preference given to 90 days or less)  as well as what’s happening with actives.

Are Sand Key South Beach Condos that SOLD Good Comparable Sales?

  • None of the Sand Key South Beach condos that SOLD were distressed;
  • None of the Sand Key South Beach condos that SOLD were in original condition (aka when buildings were built 1970’s 1980’s vintage);
  • All had some updates and
  • All would be considered valid comparable sales to an appraiser in my experience.
  • The current solds are a 20% range in value which is pretty wide range for appraisal purposes

So we say that the units that sold were selling between 92% and 95% of asking – however the avg price of the 3 that sold this year is $320,000 and the highest comparable sale is $355,000 – buyers would have to offer 85% or less of asking to get the number down into the current market value. Several of these units have been on the market 9 months to a year or more and it’s not that they aren’t great units but they are not priced where the market is today. On the upside, I have clients that we sold a South Beach Condo in Building IV which was completely updated unit to in 2011 for @ 10% less than our clients will end up paying in 2012.

Think about this.. Our client decided not to make an offer on one of their favorite South Beach condos because they just couldn’t see the numbers working – you see experienced buyer’s believe if  as the seller, you’re asking that price – you are expect to get that same 92-95% of asking and they were smart enough to know that would never appraise and they were serious about buying a condo now.  So if your South Beach condo didn’t sell last month – as Paul Harvey used to say, “now you know the rest of the story”.

Thoughts on Selling your South Beach Condo

So if you have a South Beach condo you want to sell, here’s the straight scoop: at this rate, MAYBE in another year you’ll get 92-95% of that price but if you want to sell in the next 12 months don’t price it so high you scare buyers off.  The market is constantly moving and we’re seeing some upward movement which is great news for sellers, however others predict if the current President gets re-elected this year then taxes on the typical beach condo buyers and sellers could be facing significantly higher taxes which will reduce number of active buyers, throwing the balance and momentum back to the buyers again. So our advice is be careful not to price it so high that you never get the offer to start the negotiation – then if you’re out clients we will work to get you top dollar in the current market.

Remember the first offer is just the starting point. Agents that are strong negotiators get more money for their clients. Jack and I have built our business on results whether we’re helping sellers or buyers – so if you’re our client, we’ll work to “sell your condo” not “list” it. In fact right now have over 9,000 buyers working with our team – feel free to ask about this when you request more info about us helping you sell your South Beach condo.

To Clearwater Beach condo buyers, if you’ve been sitting on the fence waiting for the bottom of the Clearwater Beach real estate market – sorry but most of the best Clearwater Beach condo deals were 1 and 2 years ago and if you see something today there’s going to usually be fierce competition and cash is king. We wrote 2 offers for clients this week on other beach waterfront homes – one had 4 offers, 2 full price, one over asking – ultimately our client got their offer accepted and thankfully they didn’t have to pay over the asking price but they did pay full price to get this unique home priced to sell. Yesterday I wrote an offer on a bank owned waterfront home that sold for $805,000 in 2005 and was in the MLS for $399,000 but the just market value alone was $465,000 and comps were up to $545,000. We’re still in that dog fight – 10 offers and nothing but cash being considered since they don’t have so many offers – several offers which are obviously over the listing price. We are seeing beachfront condo prices are on the rise and good inventory is shrinking and overall we are seeing distressed properties (Clearwater Beach short sales or bank owned condos) as 10% or less of what’s for sale.

The good news is if you’re not opposed to going in an updating a property (and we can refer good contractors) then maybe the bank owned condo for sale in South Beach or one of the two South Beach condo units for sale under $300,000  will work for you. If you’d like more information on buying or selling Clearwater Beach condos feel free to give us a call at 727-710-8036.

And remember if you are looking to buy or sell  Clearwater Florida homes or condos, Jack and I welcome the opportunity to discuss the market with you and your particular situation. Just give us a call for the most up today information that’s happening in the Beach real estate markets along our 26 miles of beaches.

Clearwater Beach Real Estate

We are passionate about being your real estate advocate. We’re committed to delivering Results daily based on Integrity, Knowledge & Experience – helping you buy or sell your Beach condos in Clearwater Beach to St Pete Beach.

We’d like to be YOUR Clearwater Beach Real Estate Team!
Call Cyndee @ 727-710-8035 or Jack @ 727-710-8036

Warmly,
Cyndee and Jack Haydon, Realtors
Charles Rutenberg Realty
1545 S. Belcher Rd
Clearwater Florida 33764
727-710-8035 (Cyndee’s cell)
727-710-8036 (Jack’s cell)

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17 Comments

  1. Great article! If I were looking to by a condo at the beach the view would def bee the most important thing for me. I like to upgrade my home my own way:)

  2. Hello Cyndee,

    If I had the money I would love to buy a nice refuge there to visit this very beautiful and relaxing place.

    Thanks for sharing your website with helpful informations and I’my very glad to be connetected with you.

    Hugss from Switzerland

    Tedora

  3. looks like a lot of work went into this post. I thought you were going to say one of the reasons was because of the heat. Just kidding great post.

  4. I really enjoyed your analysis (my finance background). Now I know why you are so busy.

  5. Actually Kevin – what a great way to put it – “hasn’t settled” – I think there’s still a lot of bouncing going on for sure

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