Should you buy Residential Real Estate with a Commercial State of Mind?

Bay Harbor Islands, FL – Luxury Real Estate
Should you buy Residential Real Estate with a Commercial state of mind?

When you go and buy the home you live in, it is a fact that you buy it with your heart and mind. Your heart takes in the decor, the paint on the walls, the amount of sunlight that streams in through the windows, how the bedrooms are laid out, the color of the kitchen granite etc. etc. etc. None of these factors really ever play in the decision making of a commercial property.

When purchasing a commercial property it is all about the numbers. The paint of the wall or the type of flooring is of less concern then does it work on a price/ft basis, or the income it will generate or the return on investment it will produce.

Of course some of the commercial conditions for purchase do not apply for a property you are going to live in, but certain trends remain common between commercial and residential real estate primarily - that is - location, location, location. Just like prime commercial real estate in an excellent location will fetch a higher price so to does this analogy work with residential real estate. So the question begs to ask – in this day and age where financing is tight and everyone is approaching real estate with caution should we approach Residential real estate (the house you will call home) with a commercial approach of buying it solely from a financial analysis?

Case in point – I am negotiating on a wonderful house in Bay Harbor Islands, Florida. This is a single family home neighborhood within walking distance to the beach, the shops at Bal Harbour and just minutes from South Beach. My client, who is a long time commercial buyer is approaching this purchase solely from a commercial aspect. He looks at the market and makes his offer accordingly. The Seller has rejected the offer...do you agree?

In analyzing Bay Harbor Islands Single Family homes over the past two years since this shift has begun we found the following information:

There have been only 23 single family homes sold in Bay Harbor Islands (this number reflects those sales we have sales price information for) since Jan 1, 2007. 11 of these properties were located either on the canal or wide open bay and 12 were on dry lots. The market year on year from 2007 to 2008 declined on average 21% (we analyzed waterfront properties average square price year on year). Though this number seems high it is actually much less than then the average Miami-Dade county drop which was 35% in the same time period (Source Trendgraphix).
We are finding more and more of Buyers are becoming more purchase savvy in this Real Estate market and are buying their homes with this frame of mind. As Realtors it is becoming more challenging to deal with this objection and convince a Seller that their property must not only meet a Buyer’s wants, needs and desires, but also stand up to the market shifting downward and the Buyers low purchase price offerings.

Aventura, Florida - Condo Sales are Up.

How many times in the recent weeks and months have you read negative press about the South Florida Real Estate market? How many times have you read positive reviews? I can almost guarantee the numbers are much higher for the question than the second one.

Well I am here to burst the bubble!!!

The numbers are fantastic.

In 2008 there were 748 condos sold in Aventura. That is a whopping 27% more than was sold in 2007 (only 589). Furthermore in the last quarter of 2008 there was a 55% increase in condo sales over the same period a year before (179 vs 120 units).

According to the same report, (Facts and Trends by Trendgraphix) there are currently 79 condos in pending sale in Aventura, which tends to make me believe that we are heading into a strong 2009 that should exceed even last year’s figures.

So for all of you that are sitting on the fence waiting for this “bubble to burst” --- guess what, the shift has come!!! Get off and buy while you still have great opportunities. Prices are at their all time low and with a good selection of foreclosures, short sales or just well priced units – there are a lot of opportunities out there.

Speaking of a great opportunity. Yesterday we listed a two bedroom two bathroom condo at Turnberry Isle at only $259,126. That’s only $170/ft. It has a huge terrace and is in a building with great amenities such as media room, state of the art gym, billiards room, stunning pool, various party and card rooms as well as a lounge, library and conference room.

If you would like me to email you some pictures contact us at info@golanteam.com and we will be happy to send you photos and more information.

In the meantime, whether you choose to buy or sell please call us for a confidential conversation of how we can be off assistance to you.

Regards
Eyal & Debra Golan
THE GOLAN TEAM
EWM REALTORS
www.golanteam.com
info@golanteam.comSouth Beach - Miami Beach - Surfside - Bal Harbour - Sunny Isles Beach - Aventura - Hallandale - Hollywood Beach - Fort Lauderdale – Boca Raton.

Aventura, South Florida Condos - Blogging Works.

Most people come the New Year make all these resolutions about losing weight, getting their finances in order etc. etc. etc. Along with those resolutions that are all so easy to make and oh so hard to keep, is the resolution about becoming a constant blogger!!!

It is now the 14th of January 2009 and I am sitting to write my first blog of the New Year (Happy belated holiday everyone!!!). I, like the other resolutions we make this time of year, intend to remain a consistent blogger as this will reap us all rewards – For you, the reader it will give you an insight to what is going on with oceanfront properties and Intracoastal properties in Miami Beach, Bal Harbour, Sunny Isles, Aventura, Hallandale and Hollywood. It will also help you as you get closer to making a purchase or selling decision.

So you ask, why start today. On August 25, 2008 a viewer on Trulia asked about vacation homes within walking distance to restaurants and a synagogue. I answered the question ( http://www.trulia.com/voices/profile/Real_Estate_Pro-Miami_dade_County-286097) and described how great it is as a Religious Jew to live in Aventura. I haven't thought about that post in months but you will never believe what has happened...Two nights ago I received a phone call from a prospective Buyer from Northern New Jersey who is looking to relocate to Miami. They were not sure where to settle and did a google search for synagogues and Jewish communities in Miami. Guess what – our blog post popped up and they read my comments with interest. After a little more investigating they went to our website, http://www.golanteam.com to check us out and then contacted us. Yesterday we spent the day showing them properties and have identified two that match their needs.

This Buyer came directly from a blog~!!!! Wow I guess everything they say about blogging really is true...Stayed tuned ...I will be back!!