Condition of Sea wall –

It is important for anyone buying a waterfront property to get a seawall inspection by a structural engineer or a seawall specialist.  Inspections should include not only the actual seawall but also settling cracks within the main house, patios and pool as well as dock areas.  Because most canal systems in Miami and Miami Beach are artificially made or made with landfills, the integrity of the seawall could ultimately determine the integrity of the structure of the home.  Doing a visual inspection of seawalls of adjacent properties is also recommended in order to avoid future settling.

Type of waterfront property

- If you look at an aerial view of Miami and Miami Beach, you will notice that there are numerous types of waterfront properties:  lakes, rivers, canals with direct ocean access, canals with fixed bridges, canals with no ocean access, non-navigable canals, and bayfront homes, to name a few.  Depending on the type of boat you have, you will need to consider fixed bridges (clearance heights), depth of canals, and proximity to bay and or ocean access.  There are several waterfront communities in Miami and Miami Beach that have direct ocean access but you have to navigate at idle speed for miles which can mean being on your boat for a couple of hours before you can really do some boating.

Boat Dock

- it is important to inspect not only the condition of an existing dock, but also if the type of dock can accommodate your boat. There are a lot of canals in Miami with natural coral sea walls and no docks – you may not want to dock your boat next to natural coral.  If there is no dock on the property, it may be a good idea to contact DERM (Department of Environmental Resources Management) about what kind of dock they will allow in a particular canal.  DERM may even send an inspector out to the property in order to make recommendations.

Davits and/or Boat Lift

- depending on the size of the boat, most boat owners will not keep the vessel inside the water and use davits and/or boat lifts to raise the boat out of the water while not in use. Whichever your choice, make sure to inspect existing davits or make sure the existing seawall can accommodate a boat lift of your choice.

Protection from the elements

Bayfront homes are obviously the most desired type of waterfront property but can also leave your property very exposed to the elements (weather and hurricanes).  Canal front properties are said to protect not only your house, but boats as well in case of increment weather.  This doesn’t mean that you should not purchase a bayfront home, it means you should consider location when purchasing.

Location of home within a canal

- because of the intricate design of canals in Miami and Miami Beach, some canals may be comparable to dead-end streets.  These canals, depending on currents and wind may accumulate debris and garbage that can become a nuisance.  If a property is located at the end of a dead-end canal, make sure you ask about accumulation of debris throughout the year.

Insurance Costs

- just keep in mind that property insurance costs will be higher for waterfront homes, especially open bay properties.

There is nothing like owning a Miami Beach waterfront home. To be able to enjoy our beautiful weather as well as the views is priceless and it is what makes Miami Waterfront Real Estate so unique.

*originally published on Nov. 23, 2008*

Miami Beach waterfront homes are well-known throughout the world and offer unparalleled distinction, but not all Miami Beach homes were created equal – desirability has to do with location, condition of the property, size and views.  We will give you a break down of all the homes that were sold this year per island in order to be able to differentiate and understand pricing throughout Miami Beach.

The formula to understanding the Miami Beach waterfront home market is knowing that no matter what the comps are, most buyers are cash buyers and price is determined mostly by desirability of the property, not so much by how much other comparable homes have sold for. This is a total anomaly and difficult for a lot of buyers to understand, especially if you are looking to upgrade from a non-waterfront home, or are ready to make the switch to this very desirable lifestyle.

The Median Listing price for a Miami Beach waterfront home is currently $4.7 Million.  And if you are not convinced that this real estate sector is hot, out of the 165 homes listed for sale, only 2 are distressed (both are short sales – one in Normandy Island and the other one in Mid-Beach).

There were 100 Miami Beach waterfront homes sold in 2011.

Star Island Home Sales

4 Star Island waterfront homes sold – averaging $1,137 per square foot with the highest sale at $25.5 Million for the house located at 13 Star Island Dr – with 15,000 sf of living space, 8 bedrooms, 40,000 sf lot and 100 feet of water frontage.

Palm Island Home Sales

2 Palm Island homes sold on the water -  highest sale at $14.2 Million for the house located at 94 Palm Avenue with over 14,000 sf of living space, 8 bedrooms and 200′ of water frontage.  The average price per square foot for Palm Island homes coming in at $912.

Hibiscus Island Home Sales

5 Hibiscus Island homes sold on the water – price ranging between $1.9 and $9.35 Million.  The highest sale of $9,350,000 was for the home designed by Oppenheim, located at 40 S Hibiscus, with 8,000 sf of living space, 24,000 sf lot, 8 bedrooms and 120′ of water frontage. The average price per square foot in Palm Island was $740.

Venetian Islands Home Sales

There were 18 Venetian Island waterfront homes sold – prices ranging between $1.595 Million to $5.5 Million, with an average price per sf of $692.  The highest sale was for the unfinished construction at 1429 N Venetian Wy, with over 13,000 sf of living space, 26,764 sf lot, 8 bedrooms and 200 feet of water frontage

Sunset Islands Home Sales

There were 6 Sunset Island homes sold on the water – prices ranging between $2.4 million and $19.9 Million.  The average price per sq.ft. coming in at $924.  The highest sale was a historically significant home designed by Maurice Fatio at 1736 W 28th St, with 70,885 sf of land, over 11,000 sf of living space, 7 bedrooms and 453 feet of water frontage!

North Bay Road Home Sales

There were 10 North Bay Rd waterfront homes sold this year.  Their prices ranging between $1.55 to $15 Million and averaging $787 per sq.ft.  The highest sale was for the 13,000 sf home located at 4580 N Bay Rd, with over 24,000 sf of land, 8 bedrooms and 148 feet of open bay water frontage.

La Gorce Island Home Sales

There were 2 waterfront La Gorce Island homes sold.  One for $6.5 Million and the other for $11.6 Million and averaging $909 per sq.ft.  The highest sale was the ultra contemporary home at 94 La Gorce Cr with over 15,000 sf of living space, over 20,000 sf lot, 9 bedrooms and 120 feet of water frontage.

Allison Island Home Sales

There was one waterfront Allison Island home sold this year at 6475 Allison Rd.  The home has almost 5,000 sf of living space, over 21,000 sf of land, 5 bedrooms, 100 feet of water frontage and sold for $2.45 Million at $494 per sf… BARGAIN!! (even for a fixer upper).

North Bay Island Home Sales

There were no waterfront homes sold in N. Bay Island

Normandy Island Home Sales

There were 8 waterfront homes sold in Normandy Island, which historically, has been the least expensive waterfront real estate in Miami Beach.  They ranged in price between $770,000 and $2.6 Million for the bay front home located at 1800 Bay Drive – with over 5,000 sf of living space, 5 bedrooms, over 10,000 sf of land and 60 feet of water frontage.  The average price per sq.ft. in Normandy Island coming in at $437.

Biscayne Point Home Sales

11 Biscayne Point waterfront homes sold in 2011 ranging between $385,000 for a foreclosure, to $1.15 Million for the home located at 7972 Biscayne Point Cr.  This home has over 4,000 sf of living space, 5 bedrooms, 12,150 sf lot and 100 feet of water frontage.  The average price per sq.ft. in Biscayne Point coming in at $219.

Stillwater Island Home Sales

12 Stillwater Island waterfront homes sold ranging between $550,000 for a foreclosure, to $1.7 Million for the home at 1481 Stillwater Dr – with 2,800 sf of living space, 4 bedrooms, 7,500 sf lot and 50 feet of water frontage.  The average price per square feet for Stillwater being $378.

Pinetree Drive Home Sales

There were 5 Pinetree waterfront homes sold ranging between $1.9 (for an unfinished abandoned construction home), and $6.5 Million.  The highest sale of $6,536,289 was for the mediterranean mansion located at 4855 Pinetree Dr, with over 10,000 sf of living space, almost 40,000 sf lot, 6 bedrooms and 100 feet of water frontage.  The average price per sq.ft. in Pinetree coming in at $660.

It is obvious that the waterfront housing market in Miami Beach improved by a landslide in 2011 and this is evidenced by amount of sales, decrease in inventory as well as decrease in distressed properties for sale.  There are still some areas like Biscayne Point and Stillwater that are not out of the water (pun intended), but this helps keep a balance with the rest of Miami Beach.  Here is a graph showing price per square foot in each of the islands, and as expected, Star Island is at the top with The Sunset Island and La Gorce Island following close behind.

What’s fortunate for everyone looking to buy or sell their Miami Beach waterfront property, is that because there have been sales, we now have real comps.  This means that buyers and sellers don’t have to pull numbers out of their imagination but have real numbers to base their decisions on.  Granted….in our Miami Beach Luxury real estate market, this doesn’t mean much, great homes many times sell for unfathomed prices just because they are fabulous.

I’ll end this report with last years’ quote,

As much as I hate scripts and we’re taught to say “a home is worth what a buyer is willing to pay and a seller is willing to accept”…it could not be more true when it comes to Miami Beach Homes, especially when dealing with waterfront homes

Miami Beach Mod Home at 7 Palm Avenue

listed for $5,500,000

Talk about an incredible Mid-century Modern home on Palm Island.  The massing of the facade elements and the proportions of the spaces are delicious (yes….I would eat good architecture, if I could).  It’s rare to find a 50′s home in Miami Beach that has been respected through the years, and this is one of them.  What I find even more incredible is the transition of interior and exterior spaces with large panoramic windows and a fabulous second floor terrace.

The perfect home for entertaining and it faces East with views of Star Island and South Beach….talk about ideal location.

The yard is full of mature palm trees and minimalist landscaping that lets you enjoy the view and feels like Miami.  It’s one of those typical Miami Vice homes where you can imagine perfect bodies enjoying the pool while sipping mimosas.  The railing choice for the terrace is perfect – with horizontal features that don’t take away from the view.  The use of decking material is OK….I’m sure anyone buying this beauty will rethink it.  The actual lot is 17,674 with 110′ of water frontage and of course, private dock.

I really love the informal use of the kitchen space, with the industrial appliances. But unfortunately, hate… I mean HATE the granite island – seriously??  with such simple and austere finishes throughout, they couldn’t do a glass top, or polished concrete?  At least it’s an easy fix.

The Terrazzo floors are perfect…I just don’t know about the curved elements on the inside which seem to be a recurring theme.  I’m sure anyone not interested in these standing out, could plaster them white for them to disappear.  The furniture is not staying with the sale, but I would like to take this time to commend the owners on a magnificent choice of modern classics to compliment the home’s architecture.  Hats off!!

The stairs to the second floors are beyond gorgeous….no railings, just simple and did I mention gorgeous?  Downside is that this house would not be good for toddlers or clumsy pets, and modifying the steps would be cruel.

The whole second floor happens to be the Master Bedroom.  Finishes here are a bit tired, but still very retro and nothing a little imagination can’t fix.  They had the right idea with the open shower area and framing of the bay views.  My thought is that the house is almost 3,000 square feet and has only 2 bedrooms … never an easy sale.  I’m also thinking that the right buyer will be discerning and will appreciate the home’s architectural design for what it is.   Homes like this one give me goose-bumps when I walk in and I always wonder if the buyers will respect the home or will have to completely modify it.  Hopefully they will work with the right designer to make this Miami Mod Home even more spectacular than it already is.

Oh…and the price….I’m thinking it’s negotiable (but what isn’t?).

July’s Most Expensive Miami Beach Home Sale

1736 W 28 St – Miami Beach, FL 33140

Listed for $25,000,000 and sold for $19,800,000 July 19th, 2011

Talk about a major record for Miami Beach Homes sold this year, and making The Sunset Islands HOT when it comes to sales.  This Luxury estate has it all:  land, water frontage, historic relevance, location, and gorgeous open bay views!!  From it’s oolitic limestone facade, to 1930′s Neoclassical style and not to mention designed by architect Maurice Fatio.  Fatio was known mostly in Palm Beach but also designed the Indian Creek Country Club (clubhouse).  It’s definitely one of our Miami Beach Mega Luxury sales in a so called “down market”. << yes, that’s sarcasm.  The marketing description reads:

This historically significant waterfront property designed by Maurice Fatio encompasses 70,886 SF of land on which rests approx 11,388 SF Neoclassic home w/ a contemporary interior. The home sits on a tip lot on  Sunset Island I. From there, sweeping views of Biscayne Bay and downtown Miami + colorful sunsets provide a dazzling backdrop to this crown jewel. A large bayside pool blends effortlessly into the well-manicured surroundings of this tropical haven spanning 1.63 acres and 453 feet of waterfront.

Features:

• 11,388 sf of living space
• 7 bedrooms / 7.5 bathrooms
• built in 1938
• architect:  Maurice Fatio
• bay front home with 70,886 sf of land
• 453 feet of water frontage with private dock
• Sunset Island I location
• pool
• 3-car garage

July’s second Most Expensive Miami Beach Home Sale

94 Palm Av – Miami Beach, FL 33139

Listed for $16,000,000 and sold for $14,200,000 on July 26th, 2011

This gorgeous Palm Island estate was originally listed for $23 Million back in November of 2008 and the description does not lie when it talks about form meeting function.  It’s one of those houses you see when driving down McArthur Causeway towards Miami Beach.  The views are of Cruise Ship Alley and has 200 feet of water frontage!  The marketing description reads:

Truly amazing 2 story estate for those looking for perfection. Offered exquisitely (partially) furnished (no artwork or personal items). Lot has 200 feet of water w/magnificent downtown Miami views and parade of ships. Main house has 6brs 7.5 baths, staff quarters, 1br/1ba guest house,plus 3 brs, 2 baths over garage. Pool house has his and hers cabanas and gym. Magnificent pool with mosaic tile. This offering is a combination of both function and form. Simply gorgeous. Inventory list is available.

Features:

• 14,083 sf of living space
• built in 2003
• Main house has 6 bedrooms / 7.5 bathrooms
• staff quarters
• 1 bedroom / 1.5 bathroom guest cottage
• 3 bedrooms / 2 bathrooms over garage
• 200 feet of water frontage – 60,000 sf lot (200′ X 300′ )
• bay frontage
• pool
• private dock with boat lift

July’s Third Most Expensive Miami Beach Home Sale

5941 Pinetree Dr – Miami Beach, FL 33140

Listed for $3,499,000 and sold for $3,062,500 on July 15th, 2011.

This Pinetree beauty has been on the market, on and off, since 2008 with an original listing price of $3,950,000.  Although price range wise it doesn’t compare to the 2 other properties above, this is one of those historically relevant homes that gives you chills and can only be appreciated by someone that knows true Mediterranean Revival architecture.  Although it is in need of rehab or “restoration”, it still has some original 1920′s details.  The marketing description reads:

Absolutely stunning example of famed Russell Pancoast’s work! Meticulously maintained 1929 mediterranean villa upgraded with hurricane impact windows, new roof, new ac units all within the last five years. Coral stone archways and walkways, travertine and wood floors, Pecky cypress and wood beam ceilings, original mosaics throughout the house. If your buyers are looking for artistic beauty, this is it! 3/3.5 in the main house, 2/1 in guest quarters, maid’s room/bath, den, Florida room, 3rd story tower.

Features:

• 4,654 sf of living space
• 6 bedrooms / 5.5 bathrooms
• built in 1929
• Pinetree Drive location
• 14,630 sf lot (77′ X 190′) with 77′ of water frontage
• private dock
• pool

**all information obtained from the SouthEast Florida Multiple Listing Service**

Because we do specialize in Miami Beach luxury homes and waterfront homes, I will give you a summary of all the waterfront homes sold this year in Miami Beach and I will break those down by island or desirable location within Miami Beach.  You will see a lot of Mega sales (the ones above $3 Million), which is a change from 2010. (click on the graph above to download PDF of all sales to date).

Star Island Home Sales

There were only 3 Star Island homes sold so far this year ranging from $7.1 million to $25.5 million!  The average price per square foot coming in at $1,028 and the highest for all of Miami Beach.

13 Star Island was listed for $32,000,000 and sold for $25,500,000.  With 8 bedrooms / 8 bathrooms / 2 half-baths, 15,008 square feet of living space on a 100′ X 400′ lot with private dock, pool, boat lift, state of the art electronics ….yada yada yada – (everything you would expect from a 15,000 sf mansion).  What’s amazing is that this house was listed January of 2011 and sold in only 2 months!  (the monthly rental for this gem was $325,000 – higher than the average home in Dade-County!) << that’s why I love Miami.

Hibiscus Island Home Sales

There were 3 Hibiscus Island homes sold this year ranging from $2.4 Million to $9.35 Million.  The average price per square foot for the island coming in at $828.  The highest sale in Hibiscus was my all-time favorite home designed by Oppenheim at 40 South Hibiscus Drive – Miami Beach Luxury Home Pick – Hibiscus Island << click to see the photos - A – MA- ZING!!  and the lucky buyer walked away with this beauty for $9.350 Million.  The house was originally listed for $13,995,000 in June of 2010, was reduced several times and sold in May.

Venetian Islands Home Sales

The Venetian Islands are seeing quite a bit of movement in the past 2 months, and there have been 12 waterfront home sales this year with an average price per square foot of $725 – quite an increase from the average $634/sf in 2010! The highest sale was for unfinished construction at $5.5 Million back in March.

1424 N Venetian Way came in as the 2nd highest Miami Beach home sold in March of 2011.  It was originally listed at $6.5 Million in August of 2009 and finally sold for $5.5.

Sunset Islands Home Sales

The Sunset islands have seen better days with only 2 sales so far this year and average price per square foot of $717 (less than The Venetian Islands which is unheard of!).

1410 W 25 St – sold for $5,000,000 on June 7th, 2011.  Located in Sunset Island 2 – with 5,920 sf and 20,200 sf lot (inside lot, not open bay).  This house was purchased for $6.5 Million in November 2005 and took only 3 weeks to sell when they listed it for $5.499 Million in April of this year.  The Marketing description reading: screaming in all caps:

GREAT MIAMI BEACH WATERFRONT ESTATE WHERE QUIET COLORS CREATE A BOLD IMPACT YET A RELAXED SENSE OF INDULGENCE. BEST DESCRIBED AS THE HOUSE THAT BECOMES YOUR HOME, THIS BEAUTIFULLY REMODELED FIVE BEDROOM, (WITH OPTION TO USE THE STUDY AS A SIXTH BEDROOM) AND SIX AND ONE HALF BATH ISLAND OASIS, EXUDES TRANQUILITY AWASH A SEA OF WIDE-OPEN SPACES, LUSH TROPICAL LANDSCAPING AND 100 FEET OF WATERFRONT FRONTAGE.  A STONE-THROW AWAY FROM THE OPEN BAY!

North Bay Road Home Sales

I’m always curious to analyze how North Bay Road Mansions stand up against the rest of Miami Beach.  There are no private gates, but gorgeous open bay views that take your breath away.  There have been 5 North Bay Road homes sold this year, which are not a real representation of what usually sells and the average price per sq.ft. coming in at $769.  The highest sale was in our Top 3 highest Miami Beach Homes – April edition.

Pinetree Drive Home Sales

Pinetree has only had 2 waterfront home sales this year, with an average price per sq.ft. $621.  The highest Pinetree Drive Home was in our Top 3 Miami Beach Home Sales – March edition.

More Miami Beach Home Sales

In addition to the mentioned sales, there was also one sale in Allison Island for $2.45 Million (fixer upper selling at $491 / square foot), and no waterfront sales yet in La Gorce Island, Bal Harbour, Bay Harbor Islands, Indian Creek Village or Palm Island.  Normandy Island had 5 sales with an average price per square foot of $436 and we decided to add Golden Beach to the mix because we are seeing a lot of people considering the move there because of affordability factors.

Golden Beach Home Sales

There have been  7 waterfront Golden Beach homes sold this year with an average price of $621/sq.ft.  The highest sale was an oceanfront house selling at $7.7 Million

277 Ocean Blvd sold in March for $1,186 / sq.ft. – that’s higher than the Star Island home sale but then again, we are talking beach front.  A 6,495 sf house on a 20,700 sf lot with 6 bedrooms, 6 bathrooms and 1 half-bath, 2-car garage, totally renovated with a monthly rental price of $42,000.  It was originally listed for $11,800,000 in 2006.  Remember that Ricky Martin is also selling his Golden Beach home – that one listed for $18.9 Million.

So there you have a brief synopsis of what has happened to the Miami Beach Waterfront Housing Market in the first half of the year.  To download the data associated with this article, please click on the button bellow.  **all information obtained from the Southeast Florida Multiple Listing Service**

Do you realize that today’s real estate buyer is smart? is educated? and will research your property to death before they even place an offer?

Most of you are even aware that almost 90% of buyers start their search on the Internet, so what do you have to do to sell your home?

If you are planning to sell, you have to be just as smart as those buyers and you need to do a little homework.  Your research should start with Google.

Google the area you live in to see which agents have a strong Internet presence.  Those agents that have a strong presence will know how to market your property on-line and will know how to expose your listing to millions of buyers.

Example:  You want to sell you Miami Shores Home – you should Google “Miami Shores Real Estate”, “Miami Shores”, “Miami Shores Homes” and any other combination thereof.  Take a look at the first 2 (maybe even 3) pages of Google Searches and find out what each one of those Realtors is doing to market their listings.

It’s not about your Realtor having a website anymore, it’s about your Realtor knowing where to place your listing, exposing your property in not only local web-portals, but all over the world.

If you are not finding your favorite agent in Google, or the properties they are selling, it may be time to re-examine your “selling strategy”.

Please remember that although this is a very important part of the equation, once you find that “Googable Realtor” (no that’s not a real word), you should also follow home preparation and pricing recommendations.

• Staging your Miami Home

• Why isn’t your Miami home selling?

• Pricing your Miami Home

• How to Sell Your Home in Black and White

• Home Sellers Can’t Handle The Truth

• First Impressions in Real Estate

**originally published June 25th, 2008**

You are interviewing Miami Beach REALTORS and have no idea who to hire because they all have something that impresses you, good track record, good communication skills, good client testimonials, good Internet presence…..so how can you make up your mind?

The key is to be able to identify how they market themselves as opposed to how they market properties.  At first this may seem like easy task, but once you start thinking about it you realize that most REALTORS spend more money branding themselves that promoting their properties.  Not that there’s anything wrong with that, it’s only wrong when they want to sell you their branding efforts as property marketing.

In addition to identifying the type of marketing an agent does, it’s good to know where marketing efforts need to be more aggressive and where buyers will ultimately find your home.  The National Association of Realtors (NAR) just published a 2010 profile of home buyers and sellers which includes this graph that details where buyers found the home they purchased from 2001 through 2010.

Interestingly enough, in 2010, 75% of buyers bound their home with the help of another REALTOR or on-line! (and the Internet is half of that number).  Which just means that yard signs, open houses, newspaper and magazine ads and brochures are a minuscule part of the equation!  Seriously??  But those property brochures are so pretty!!  And what have we been telling you?  The brochures are part of an agent’s branding efforts, it gets them more listings….not necessarily sell homes.

Brand Marketing vs. Product Marketing

A good REALTOR will use both types of marketing not only to attract more clients but to ultimately sell real estate.  Furthermore, Brand and Product will often be combined because in real estate, you really can’t separate one from the other.  A good example of this will be direct mailers with “just listed” information – the property will be shown and described and the agent brand will be emphasized – but do you see these in the list above? Yet one overly used home selling pitch is that “neighbors will tell friends and family about the home, which is the best type of word-of-mouth marketing” << can you say “MEANINGLESS SCRIPT”?

Tracey Drake from Suite101.com gives us a great analogy to differentiate the two:

Ford telling consumers that “Quality is Job 1″ – this is Brand Marketing

Selling that consumer a Ford Mustang – this is Product Marketing

So what am I telling you here?  In a customer service driven society, how can we not know when we are buying something for the brand, not necessarily the quality?  How can we not realize that the pretty magazine ad will not sell our home?  or the ingenious TV ad or the catchy yard sign?

So sit down with your Miami Beach Realtor and ask how they are using The Internet to reach the end buyer, what will they do differently to make your home stand out from the thousands of properties on the web and how is their business relationship with other Realtors since ultimately it will be their competition who will bring your home’s buyer.

For additional marketing insights, read Seth Godin’s What do you know? - a great list that manages to separate egos from achievers with some of my favorite points:

• Anticipated, personal and relevant advertising always does better than unsolicited junk.
• You can’t fool all the people, not even most of the time. And people, once unfooled, talk about the experience.
• Traditional ways of interrupting consumers (TV ads, trade show booths, junk mail) are losing their cost-effectiveness. At the same time, new ways of spreading ideas (blogs, permission-based RSS information, consumer fan clubs) are quickly proving how well they work.
• Good marketers tell a story.
• Living and breathing an authentic story is the best way to survive in an conversation-rich world.
• In the googleworld, the best in the world wins more often, and wins more.

There are 191 Miami Beach waterfront homes for sale right now ranging from a $450,000 short sale on Hawthorne Avenue right outside Biscayne Point Island, to a $49,995,000 Star Island Mansion. Miami Beach waterfront homes are highly coveted world wide and they are priced according to condition, size, location and views…but VIEWS and LOCATION are key.

The formula to understanding the Miami Beach waterfront home market is knowing that no matter what the comps are, most buyers are cash buyers and price is determined mostly by desirability of the property, not so much by how much other comparable homes have sold for. This is a total anomaly and difficult for a lot of buyers to understand, especially if you are looking to upgrade from a non-waterfront home, or are ready to make the switch to this very desirable lifestyle.

Let’s take Shaq’s Star Island home as an example because the price range cannot be any more random. He purchased the home in 2004 for $18.8 Million, then listed it for $32 M, increased it to $35M and ended up selling it for $16 Million! To top things off, the buyer, Vladislav Doronin, ended up gutting the entire mansion. That’s a $16 Million fixer upper for you! Only in Miami Beach…. or shall we call that a MIAMISM ?

Another example is the current real estate housing trends of The Sunset Islands, one of the most esteemed sets of islands in Miami Beach. Desirability starts at Sunset Island I, then II, then III and historically, Sunset Island IV has fallen in last place. You will see below that the only 2 sales this year in the Sunset Islands have been 2 distressed sales in Sunset Island IV at ridiculous prices. Does that mean that a $1.3 Million ticket price on a sold house will determine where the current $25 Million listing will sell? Not a chance!

So keep in mind that not everyone is willing to throw money up in the air, and not everyone is a tire kicker either.  Average price per square foot has dropped in all of Miami Beach, but this is not the end of the world and some sellers are still getting top dollar for their homes…look at Bosh’s $12.3 Million purchase.

I decided to give you true numbers and stats to paint a perspective of the Miami Beach waterfront  home market, but the more I look at these numbers, the more I see an abstract or even a surrealist painting.  So take these with a grain of salt and make sure you work with someone that has experience in this market.

There have been were 65 70 waterfront homes sold in Miami Beach in 2010.  Let’s break this down to each Miami Beach island/s:

• 1 sale in Star Island – 44 Star Island Drive selling for $7,250,000 at $1535/sq.ft.

• 4 waterfront sales in Palm Island – averaging $814 / sq.ft. with the highest sale for a 12,184 sq.ft. home located at 55 Palm Ave, which sold for $11.95 Million.

• 4 waterfront sales in Hibiscus Island – averaging $695/sq.ft. with highest sale for an 8,096 sq.ft. home located at 269 N Hibiscus selling for $5.4 Million

• 8 9 waterfront sales in The Venetian Islands – averaging $634/sq.ft. $625/st.ft. with the highest sale for a 4,200 sq.ft. home located at 303 E. Dilido selling for $3.4 Million

• 2 waterfront sales in The Sunset Islands – averaging $555/sq.ft. but keep in mind that these were facing South towards condos on island IV on a narrow canal (not your typical Sunset Island sales).  The highest sale was for a 2,255 sq.ft. home located at 1440 W 21 Street, selling for $1.6 Million.

• 7 8 waterfront North Bay Road sales – averaging $785/sq.ft. $813/sq.ft. with the highest sale being Chris Bosh’s 12,000 square foot crib which he bought for $12.333 Million

• 4 waterfront home sales in La Gorce Island – averaging $880/sq.ft. with the highest sale for a 17,183 square foot home at 88 La Gorce Cr, which sold for $16 Million (highest sale this year in all of Miami Beach)

• There have been no sales in Allison Island this year
• 11 waterfront home sales in Normandy Island – averaging $280/sq.ft. with the highest sale for a 3,446 sq.ft home located at 1045 N Shore Dr, selling for $1.6 Million (North Normandy – open bay)

• 1 waterfront home sale in North Bay Island – at $330/sq.ft and located at 7520 Miami View Drive and selling for $1,679,373 (I wonder what it took to come up with that number)

• 12 14 waterfront home sales in Biscayne Point – averaging $287/sq.ft. $291/sq.ft. with the highest sale for a 4,100 sq.ft. home located at 1525 Cleveland Rd, selling for $1.625 Million

• 2 waterfront home sales in Stillwater Island – averaging $325/sq.ft. with the highest sale for a 2,210 short sale located at 1480 Stillwater Dr, selling for $710,000
• 6 7 waterfront home sales on Pinetree Drive – averaging $543/sq.ft. $487/sq.ft. with highest sale for a 7,595 sq.ft. home located at 5245 Pinetree Dr, selling for $5.25 Million

The remaining 3 waterfront homes sold in Miami Beach this year were right outside one of the islands or on an inside canal, still desirable waterfront, but not as much as the islands.

An even better perspective of the performance of each island is through this graph, although the figures are a bit skewed because of the lack of sales.  The Sunset Islands have historically sold for more per square foot than The Venetian Islands, but that is not reflected in this year’s sales.

Many times you call us and ask us about desirability of each island and why the disparity in price ranges.  I think that same difference is a good tool to weigh desirability.  Star Island showing the highest price per square foot, followed by La Gorce Island, then Palm Island, followed closely by North Bay  Road.

As much as I hate scripts and we’re taught to say “a home is worth what a buyer is willing to pay and a seller is willing to accept”…it could not be more true when it comes to Miami Beach Homes, especially when dealing with waterfront homes.  Even with that, there are still some great buys out there….bank owned properties and sellers that NEED to get out, but it’s  not the norm.

**all information obtained from the SouthEast Florida Multiple Listing Service**

**There were 5 additional sales at the end of the year that were not originally reflected in this article (originally published December 13th, 2010)

• 5310 N Bay Rd – sold for $9,100,000
• 226 W Rivo Alto Dr – sold for $1,800,000
• 5223 Pinetree Drive – Short Sale sold for $1,600,000
• 1707 Cleveland Rd – sold for $1,300,000
• 1824 Cleveland Rd – Foreclosure sold for $403,000

October’s Most Expensive Miami Beach Home Sale

1 Palm Av, Miami Beach, FL  33140

Listed for $3,650,000 and sold for $3,250,000 on October 14th, 2010

This home had quite a listing history with original listing price of $5.9 Million back in August of 2006 – selling for $3.695 Million in November of 07, listed again in December of 07 for $4.495 Million – then increased and decreased several times, as well as various Realtor changes.  It does show as a Trust Sale in the county records, which explains all the changes.

The home sits on the Eastern tip of Palm Island, overlooking Star Island and MacArthur Causeway/Government Cut and the description given is:

Perfect cottage by the sea! Best value! 110ft of open bay water frontage with magnificent views of Miami Beach in the distance. 2 bedrooms/2 baths main house with open floor plan, recently renovated and tastefully furnished. 1 bedrooms/1 bathroom detached guest house, 2 car garage. Exceptional lot affords best opportunity to expand or build new.

Features:

• 3,449 square feet of living space
• built in 1957
• 2 bedrooms / 2 bathrooms in main house
• 1 bedroom / 1 bathroom detached guest house
• 2-car garage
• 17,674 square foot lot
• 110 feet of water frontage
• Palm Island location
• renovated

October’s second Most Expensive Miami Beach Home Sale

441 E Rivo Alto Dr – Miami Beach, FL 33139

Listed for $3,800,000 and sold for $1,800,000 on October 12th, 2010

Talk about an amazing buy for a beautiful location with direct Northern open bay views!  According to the Multiple Listing Service (MLS), this home had been originally listed for $4.45 Million since November of 2007, with several price reductions and brokerage changes.  The property was immediately placed on the market for $3,349,000 just days after closing with no updates or changes – a perfect “FLIP JOB”.

According to the new listing agent, the purchase was a foreclosure (which doesn’t show on the MLS).  The sale price was at $627/square foot and the new listing price is $1,166/square foot.  The sold description read as follows:

This modern, tastefully renovated Venetian Island home is now available. The property sits on a huge 13,300+/- sf waterfront lot and boasts over 100 ft of waterfront and unobstructed wide bay views. The home features a great pool and includes a boat dock. The interior has a very well designed layout and the house overall is in excellent condition.

Features:

• 2,871 square feet of living space
• built in 1947
• 3 bedrooms / 3 bathrooms
• 13,382 square foot lot
• bayfront property
• Venetian Islands location
• private dock
• 100 feet of water frontage

October’s Third Most Expensive Miami Beach Home Sale

1440 W 21 St, Miami Beach, FL 33140

Listed for $1,950,000 and sold for $1,600,000 on October 22nd, 2010

This Sunset Islands IV home had been listed for $2,350,000 since April of 2009 and sold for $710 per square foot.  Many of you may know that the Southern view of this island is the least desirable from all of the Sunset Islands and has to do with condos and commercial properties across the canal.  You should keep this in mind when using W 21 street sales as comparables.

The home description read:

This original 4 BD / 3 BA home was gutted and converted into a fabulous 2 BD + den / 4 BA home, with permits.  This waterfront pied a terre on gated Sunset Island close to Lincoln Rd is the ultimate modern design and luxury. Great entertaining areas, new 40 FT pool, seawall and 20′X8′ dock to watch the sunsets with no bridges to Biscayne Bay. Philippe Starck fixtures, 36″X36″ limestone flooring, impact windows, new roof, electrical, plumbing, Miele, Wolf, Sub Zero, Duravit, Jacuzzi Tub in master.

Features:

• 2,255 square feet of living space
• Built in 1956 but completely renovated
• 3 bedrooms / 4 bathrooms
• 9,500 square foot lot
• 60′ of canal frontage
• pool
• Sunset Island 4 location

**all information obtained from the SouthEast Florida Multiple Listing Service**

June’s Most Expensive Miami Beach Home Sale

88 La Gorce Cr – Miami Beach, FL 33141

Listed for $19,500,000 and sold for $16,000,000 on June 11th, 2010

I had written about this impressive Miami Beach Luxury Estate back in December of 2009, where I said:

The home is impressive to say the least – contemporary, simple, austere and phenomenal.  With over 20,000 square feet of living space, sitting on a 48,000 square foot lot, guest cabana, elevator, 5-car garage, amazing landscaping….what else could you want?  My only concern of course is that we have not seen any waterfront sales in La Gorce in 2009….the whole mega luxury home real estate market in Miami Beach is at a standstill….waiting waiting waiting.  The house has been active for sale since January of 2008 starting at $25,000,000 ($5,500,000 reduction is not bad at all).  It’s also currently for rent at $100,000 per month and known to house a few celebs on a short-term basis.

And Todd Michael Glaser himself, describes as:

The property, called OKTO, features a brand-new 20,000-square-foot house, which my team and I built from the ground up in just 10 months. It is one project that I am particularly proud of. The flowing floor plan separates “back of house” function spaces (such as dual laundry rooms, staff quarters, ample storage spaces, and a five-car garage with berthing large enough for limousines), from the opulent living areas. The master bed and bath have floor-to-ceiling glass sliders that seem to disappear when opened, exposing the his-and-her soaking tubs to the direct Florida sunlight. The terrace overlooks the pool and manicured lawns, as well as the elevated guesthouse and cabana. With all of this, I am not surprised it wasn’t on the market for very long.

(for those that don’t know who Todd Michael Glaser is – he’s a builder…but not just any builder, he builds Luxury Estates that have been featured in HGTV, and said to have “started” the Miami Design District)

Features:

• 17,183 square feet of living space
• built in 2008
• 10 bedrooms / 12 bathrooms / 3 half-baths
• 5-car garage
• 48,024 sq.ft. lot with 260′ of water frontage
• 2 docks
• lap pool and spa
• rooftop terrace
• staff house
• elevator
• La Gorce Island location

June’s Second Most Expensive Miami Beach Home Sale

55 Palm Ave, Miami Beach, FL  33139

Listed for $15,500,000 and sold for $11,950,000 on June 16th, 2010

This was a Mediterranean Revival restoration also done by Todd Michael Glaser – damn Todd! you are on a roll!  The 1928 home Palm Island residence is best described in Todd’s  own words:

This project was extremely interesting for me, as it involved a unique historical restoration of an original 1920s Spanish Colonial-style residence on Palm Island, providing city tax abatement for 10 years. Set on a 30,000-square-foot lot, the home features a three-car garage, service quarters, formal dining room, elevator, a grand waterfront master suite and sitting area, his-and-her baths and walk-in closets, and more. We incorporated a 10,000-square-foot modern addition, careful to blend the old and the new, and the possibilities are endless. There is room for a media room, library, office, gym, outdoor barbecue, separate guest rooms, a playroom, sitting areas, and more. The details are what really sets it apart, though: 12-foot cathedral beamed ceilings, quatrefoils windows, fireplaces, a romantic interior courtyard, oversize heated pool on beautifully landscaped grounds featuring flowering vines. It’s the quintessential Miami Beach island property.

And MLS description reads:

Unique historical restoration of original 1920′s Spanish Colonial Palm Island residence providing city tax abatement for 10 years plus a 10,000 SF modern addition.  12 foot Cathedral & coffered ceilings, Bulthaup kitchen, interior courtyard, amazing backyard w/ gazebo & pool cabana.  Gorgeous views of intercostals & MB skyline.  One of a kind master suite w/ private terr.  Enchanting guesthouse w/ plenty of rm & privacy and much more.

Features:

• 12,184 square feet of living space
• 8 bedrooms / 9 bathrooms / 2 half-baths
• built in 1928 and restored in 2008
• 30,000 sq.ft. lot with 100′ of water frontage
• 3-car garage
• service quarters
• elevator
• media room
• library
• 12-foot cathedral beamed ceilings
• interior courtyard
• pool
• Palm Island Location

June’s Third Most Expensive Miami Beach Home Sale

40 La Gorce Cr, Miami Beach, FL 33141

Listed for $7,900,000 and sold for $7,400,000 on June 11th, 2010

There are not even photos of this home because it sold in 4 days!  The 1937 home of known attorney Dan Paul, author of Miami-Dade county charter, with an MLS description that leaves us wanting more:

This extraordinary waterfront property is located on the tip of prestigious La Gorce Island in Miami Beach. The most sought after wide bay, city and sunset views. Upon entering the sumptuous courtyard you will be enchanted by the beautiful architecture of this 8,200+SF Gem. Nothing short of a South Florida masterpiece, this residence has it all.

Features:

• 8,284 square feet of living space
• 6 bedrooms / 8 bathrooms / 1 half-baths
• built in 1937
• 23,145 sq.ft. lot with 115′ of water frontage
• 2-car garage
• dock
• pool
• La Gorce Island Location

>>>> BONUS SALE you absolutely have to know about<<<<<

4358 N. Bay Road – Miami Beach, FL 33140

Listed for $8,300,000 and sold for $7,400,000

This amazing piece of land was bought by none other that Alex Rodriguez after many rumors of offers on different properties around Miami.  And guess who’s helping A-Rod build the house of his dreams?  Yes…you got it….Todd Michael Glaser!!!  (and all I hope is that he convinces him to go modern and not do another Spanish-Med wanna be with a million ballustrades – somehow….I have confidence that this time will be different!)

**all information obtained from the Southeast Florida Multiple Listing Service**