If you are buying a Miami Beach waterfront home, you are likely to have a boat or will be considering a boat in the near future. We are constantly asked a number of questions regarding waterfront purchases and Rick and I decided to write a list of 7 important factors to consider when buying a waterfront home in Miami.

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*

Related Articles:

7 things to consider when buying a Miami Waterfront Home originally appeared on Miamism on January 14, 2012.

We have had a few foreign national buyer customers purchase Miami condos who knew nothing about condo requirements or the condo approval process.  As a foreign national, you are accustomed to different methods of purchasing real estate in your native country.  We have found that the purchasing process here in the US, specifically Miami, is more paper intensive and tedious. Instead of making assumptions that everyone knows the process, here are some basics you can expect when buying a condo in Miami, Miami Beach or the surroundings.

• Your condo-purchase will be contingent on acceptance by the condo association (all associations have different requirements and criteria, so make sure you find out what those are).
• Some associations will have a first right of refusal.  Which means the association or a member of the condo will have an option to purchase the unit under the same terms and conditions of the executed contract.
• Upon having an executed contract (where both parties have agreed and signed a purchase contract), make sure you get the condo application, condo docs, frequently asked questions, and a copy of the latest financial statements to know what you are getting into.
• It is always a good idea to ask about historic and upcoming special assessments.
• Ask for a contact person at the condo where you can ask specific questions about the approval process and may contact if you have questions about the actual approval application. (a manager or board member)
• If there is a condo board approval deadline, make sure you know what that is and submit completed application, necessary application fee and required documents in a timely manner.
• If the approval process takes longer than expected, you may need to extend the provisions of your purchase contract to avoid default and risk the loss of deposits.
• Required documents may include but not limited to the following:
  • Tax returns
  • Personal financial statements
  • Bank reference letters
  • Personal reference letters
  • Employment reference letters
  • Photographs of pets (if applicable) and sometimes vehicles
  • Copy of executed purchase contract
• Most condo associations will perform a credit check as well as a criminal background check.
• Most condo approvals will require an interview (either in person or by phone), make sure you know which method the condo requires and schedule this as soon as possible.
• Condo approval or denial should be provided in writing by the condo

These are just basic guidelines to help you prepare for the condo-approval process but keep in mind that all condos are different and so are their requirements.  Staying on top of the process will help you make the Miami-condo buying experience pain free.

**originally published 3/21/2008**

Related Articles:

Know the Miami Condo Approval Process originally appeared on Miamism on August 28, 2011.

**originally published July 11, 2007**

Related Articles:

Real Estate Expectations originally appeared on Miamism on August 10, 2011.

Robert Scoble and Shel Israel shared a breakthrough quote (in their book “Naked Conversations”) by The New York Times editorial (August 5, 2005) which really puts blogging into perspective:

“It’s natural enough to think of the growth of the blogosphere as a merely technical phenomenon.  But it’s also a profoundly human phenomenon, a way of expanding and, in some sense, reifying the ephemeral daily conversation that humans engage in.  Every day the blogosphere captures a little more of the strange immediacy of the life that is passing before us.  Think of it as the global thought bubble of a single voluble species”.

So here’s my take. Blogging puts our thoughts out there, out there in the open for you to tear apart.  A Realtor colleague from Miami Shores told me a couple of days ago that she did not feel comfortable blogging because she felt like she was “stripping in front of everyone”.  That was another “breakthrough” comment.

We blog to let people know what’s going on, to explain the inside scoop, to educate and to encourage dialogue.

We want you, the real estate consumer, to know us, to know about the Miami real estate industry inside and out.  We also understand that the real estate consumer today is ahead of the game, with tons of tools at their disposure.

Our job is to strip the façade off the real estate industry and let you know what’s going on. We write articles about community events, restaurants, architecture, articles for real estate buyers and sellers, about Miami real estate stories, off the wall and funny things that have nothing to do with real estate, and not to forget miamisms.   We understand the need people have to know what’s going on, so we will keep on talking.

**Please let us know if there’s a particular subject you would like for us to discuss**

*originally published on November 9th, 2007 and the same applies today*

Related Articles:

Miami Real Estate in the open originally appeared on Miamism on August 1, 2011.

To be fair, not just a client, but a very special client who I now call a friend, sent me this email (re-posted in its entirety, with no changes or edits and with his permission and blessing), after he read this article:

Miamism.com in The News and Forbes

I love the fact that our clients continue to read Miamism way after they have purchased or sold a property and actually subscribe to our feed.  Without further ado, Ritch Holben’s Reaction to Forbes article on Miamism and the interview that followed.

Well, well, well, Ms. Eye-nessssss!

That was a fantastic article. Congratulations on becoming the face of Small Business Empire for the 2010′s!  Shall we dub you Ping the Merciless, or Queen Qik?

Seriously, this was an incredibly helpful interview, and organized, and a great tool to help those of us that are a bit behind in the times.  Thank you for taking your time to do it.

But there were several KEY ELEMENTS Gene left out of the story that, in my opinion, make you so successful and perfect at what you do.  These points may be “givens” to those of us that are seasoned business-folk that operated in the pre-Internet world, (yes, you 20-somethings, there was such a time) but they may not be so obvious to the next generation of tech-savvy, plugged-in, micro-chipped entrepreneurs that are coming into the market now.

1.  You know WHAT you are selling.

For Ken and I, your knowledge of design and architecture (being an architect yourself) put you in a different league than other realtors.

You have the language of design in your back pocket, and understand the aspects of a property beyond specs of # of bedrooms and baths.  You understand flow, light, scale and proportion, historical relevance, neighborhood structure, and you see beyond the obvious in a property, to its potential.  You can link that data to the aspirations of a potential buyer.  This allows you to streamline the process and make relevant recommendations to a buyer, thus saving time and money in the search-and-selection process.  And you follow thru, soup to nuts.  From the Search to the Offer, thru Negotiation to the Financing to Closing, you and Rick are there every step of the way, greasing the skids of a skiddish market to make it as easy for the buyer (and, I assume, a seller) as is possible in the new economy.

2.  You know HOW to sell by not selling.

This is really an aspect of your amazing personality. You are a guide, and you take folks into the unknown of the real estate market, and you step back, allowing them to experience a space on their own terms (unless they are getting into dangerous territory, then step in to save them – perhaps you should consider donning a safari hat!).  You are charming, but upfront.  You are accommodating, but willing to express your opinions, even if negative.  You are always professional, but personable.  You seem to respect your clients, and can befriend them at the same time.

and finally, you are gorgeous!  In Miami, at least, this is relevant!

I think my disappointment from this article, or books like Crush It, is that they seem to allude that success can be accomplished by following a prescribed list of technological trends.  I do agree that, if handled correctly, they help in getting potential clients to “find” you via the Internet, and it may open up an initial discussion with them.  However, if you don’t have all these other (old-school) differentiators that define you as possessing unique offerings, superior service, or whatever elevates you in your chosen field, your “success” will simply equate itself to the guy who goes to the singles bar every night and counts his success by the number of hash marks on the bedpost.  It might be fun for a while, but relationships with longevity and depth will always make for a healthier,  successful business model, when morning comes.

In my opinion, Miamism is a success because of Ines and Rick.  And yes, the twattosphere (my personal bias, but I will overcome it!)  should have the opportunity to meet you, to work with you, and to learn from you.  But in the end, your success is because of how wonderful YOU are!

Your forever happy client,

Ritch Holben

I cannot let these accolades be one-directional and MUST guide you to Ritch’s work. He’s an architect with an amazing eye who pays special attention to the most intricate design details. His final products are nothing short of spectacular and manages to marry simplicity and complexity in order to obtain spaces that are warm, welcoming, and flawless.

Ritch’s photography is out of this world and love his innovative, modular, customizable art program of “aerial photo artiles” that can be uniquely fitted into your lifestyle – take a look at the photos in the book: The View From Up Here. I know I can go on forever, especially after that ri-di-culous testimonial, but we must rest this love fest before we make anyone sick to their stomach.

Related Articles:

A Client’s Reaction to Forbes originally appeared on Miamism on June 12, 2011.

Oh yeah, this should be fun, but it needs to be put out there because it’s happening across the board and the one that ends up loosing is YOU, the end buyer and and seller, so listen up!

Back in September of 2009 we started noticing a trend and let you know all about it – Appraisals Kill Deals.  The trend was about “artificially low” appraisals, but contributed it to conservative appraisers who were being “careful”, because of the whole mess we had just left behind us.

Guess what? It’s gotten much worse and after a little research and some unofficial interviews, we’ve come to the conclusion that banks are not being conservative … many are dictating what appraisals they accept and even give instructions to professionals on how to go about appraising – sound fishy?  it is! and I foresee some major law suits!

So here’s one scenario.  We had a Miami Shores home under contract with a very strong buyer with excellent credit and credentials.  The appraisal is ordered and when it comes back, the bank decides that it doesn’t like the comparables  used and orders a second appraisal.  By this time, the buyer is livid!!  He doesn’t understand how an appraiser, chosen by his bank, is rejected!  The second appraisal comes in over 20% lower than the first and when I looked at the properties used, they were not even comparable – wrong city, wrong square footage, wrong condition, no adjustments ……and ….THAT’s the appraisal the bank liked, one that used conveniently low numbers in order for the bank to protect their investment – which meant the buyer had to come in with cash to make up for the difference between appraisal and selling price.

Second scenario. Out of town buyer finds property in Miami for an investment and decides to finance with a California bank they have an established relationship with.  When the appraiser shows up, he asks the listing agent about a couple of nearby sales to make sure he is using the right properties.  Conveniently enough, the appraisal comes back low and the higher sales he had inquired about were not even used!  When I explain to the buyer that he can request a second appraisal and that the seller has even agreed to pay for it, here’s what he responded:

Since appraisers are supposed to know their market, (and I have no real sense of market values!) I have to think there is some basis behind his numbers

EXACTLY!!!  You would figure that the appraisal would be a way for a buyer to verify the property’s value and feel good about their investment.

• So why is it that appraisers need to see the contract price when appraising?  If the process was so objective, they shouldn’t even know what the property is being sold for!

• So why is it that sellers could pay for an independent appraisal when selling but that is no longer relevant?  Appraisals backed up by a financial institution are totally different than those without it.

• So why is it that adjustments made by appraisers when comparing properties, don’t really equate to reality? example:  comparing a totally renovated home with top of the line finishes to a home that is a fixer upper.

If an appraisal is not a fair way to check market value of a property, and if banks are able to manipulate the objectivity of these, then what exactly is protecting you?  There is no system of checks and balances and it will be left to a really smart and educated you to know the difference.  Our advice:  Do your homework, know who you are working with and be cynical about the process.

Related Articles:

The New Mortgage Fraud originally appeared on Miamism on January 24, 2011.

December is a time of giving, no matter what your religion or cultural background is.  Giving is not always about the most expensive gift, but the thought that goes behind your intentions.  People are always talking about what the right etiquette is for giving depending on your profession – do you gift your banker, your accountant, your postal carrier?

We all have different ways to thank those that surround us and wanted to take the time to thank you for your loyalty because it is the single best gift our clients can give us.  We received this from clients recently and defines what I’m talking about:

Here in Midtown, looking at the bay, loving Basel, and we just reminisced about our first look at this unit with you. Thank you, again, three years later, for helping us find our Miami home, Ines. We love it here, and owe that to you!

and this as a response from a client, who is an attorney, to another Miami Beach Realtor:

I know how competitive your business is and how hard you work; I have represented brokers in procuring cause cases and understand the stress that occurs when there are multiple brokers working with the same clients. That’s why we have only worked with and through Ines on our side.  If you find something not listed please be sure to communicate with her, as she is has been representing us for a long time.  You will find Ines to be extremely professional.

and not to forget the very meaningful TESTIMONIALS we receive from you.

Best Wishes and Happy Holidays to you and your families!!

Related Articles:

Real Estate Holiday Gift originally appeared on Miamism on December 27, 2010.

In the past few months we have noticed while doing open houses for our listings that there are a lot of unrepresented real estate buyers out there.  By unrepresented I mean buyers that don’t want to work with one Realtor, buyers that think there is an advantage in working directly with the listing agent of a property.

That’s why I decided to write this article.  If you are a buyer in today’s Miami real estate market, meaning you are in the market to buy a Miami or Miami Beach home, there are factors you should consider, factors that will help you decide whether or not to work with a buyer’s agent.

Please note that we consider today’s buyers to be educated and very well informed because of the myriad of information available to them including access to the multiple listing service, tax and government information that was previously not readily available to the consumer.  So all real estate buyers should consider this:

1. Every transaction is different - A good Realtor will have experience in dealing with problems and road blocks and will know how to resolve these quickly.
2. Not all agents will be a good match for you – it is important to work with them for a day first to see if the relationship will work.  Don’t be afraid to ask questions.  Make sure you feel comfortable with the Realtor, that you trust them and they are working for your best interest, not their own (or the seller’s).
3. Loyalty will be reciprocated - Remember that the more loyal you are to someone, the more loyal they will be to you.
4. You will not have a negotiating advantage by not working with a Realtor - Don’t assume that by not working with a Realtor, the commission will be reduced or it will go to you.  Commission agreements are between the seller and their agent – there is only 1 commission, not 2.  Assuming you have a negotiating advantage is wrong and the only one that will not benefit is you.
5. Finding the home, pulling comparable sales and negotiating a deal is the easy part of buying real estate – coordinating the transaction is not that simple. (Coordinate appraisals, inspections, contract time frames, loan commitment deadlines and due diligence of a transaction).  Making a wrong move could mean loosing a sizable deposit, or worse yet….loosing the house of your dreams.
6. A lot of Realtors’ expertise goes beyond  real estate services – do you know how to identify construction problems without wasting your time like additions that were not made to code or with permits.  You may find value in what some Realtors have to offer, a little research goes a long way. (Promoting my Architectural expertise may be considered shameless self promotion, but this is my blog and I am allowed).
7. Attorney representation may not be what you are looking for – If you think you will be better represented by an attorney, make sure that attorney will represent you and not just the transaction.
8. Can you put aside the emotional aspect of buying real estate – Will you be able to handle all the problems that may come without compromising a sale because of emotions?
9. Do you know how to negotiate with different types of sellers? (I.e. relocation companies, bank owned properties, corporate owned properties, pre-foreclosures, short sales?)

I also know of a lot of buyers that choose not to use a Realtor because they have been “burnt” in the past and have had really bad experiences and thus a “Realtor Aversion” exists.  All we can say to that is that those experiences are unfortunate and it makes the job of the good Realtors even tougher.  There are plenty of knowledgeable Miami Beach Realtors out there, ethical Realtors, Realtors that will look out for their customers’ best interest; it’s a matter of doing a little research and finding the perfect match.

*article originally written and posted on September 10th, 2007*

Related Articles:

Buying Real Estate in Miami without a Realtor originally appeared on Miamism on October 31, 2010.

How many times have we done comparable market analysis of homes to later talk to the owners and hear that their house is better than the rest?

• Your house has better updates,
• has a better distribution of space,
• is in better condition and
• has so much more than the rest.

Guess what? everyone thinks the same thing! Unless you have major deferred maintenance issues in your home or you are selling a family member’s estate, you will think that your home is superior and this will undoubtedly lead to you wanting to overprice the home.

Guess something else! we are the experts and we know the inventory. We know what has sold, what condition other homes were in and what your house’s most likely selling price will be. And in all the years we’ve been in business, we’ve never been off, not one single time! So unless you are willing to hear us out, to get the brutal truth and get a reality check, don’t even call us – or worse yet, call us, ignore us and then realize months later that we were right.

I’m not telling you this to sound presumptuous, I’m telling you this because it happens time and time again.

Miamism: “Mr. seller, according to market stats and local sales history, your house will sell between $1,000,000 and $1,100,000″
Seller: “But we just got a new roof and remodeled our kitchen, our house shows beautifully, let’s list at $1.5M”
Miamism: “By overpricing you may loose good buyer prospects, your house will sit on the market for months and may end up even selling for less than $1M if the listing becomes stale”
Seller: “I know someone will appreciate my home the same way I do and will fall in love with it, I rather keep it on the market and wait for that perfect buyer. Plus, I’m not in a rush and refuse to give it away”
Miamism: “You would not be giving it away, you would be selling at market price, and just so you don’t forget this conversation, we will write it down and put it in a sealed envelope to show it to you in 8 months when you claim we are not doing out job”
Seller: “I would never say that, you guys are great professionals and I appreciate you telling me what the market is doing. Let’s list it high and if it doesn’t sell, I am willing to reduce the price to a more reasonable amount”.

Have you any idea how many times we go through similar scenarios?  And no matter what we do, we end up being the bad guy.  If we take the listing and it doesn’t sell, we’re bad – If we don’t take the listing, we’re bad.  WE CAN’T WIN!!!  but the worst part is that neither can you if you are not realistic.

We recently listed a friend’s Miami Shores home and told them the most likely sales price would be in the low $700k’s.  They wanted to list over a million, we convinced them to list in the mid $900k’s, knowing that they were grossly overpriced and they would have to listen to feedback and be willing to lower their price.  Please note the home was gorgeous! After 6 months of an average of 3 showings per week (that’s over 72 showings!! with us being present at every showing and doing a lot of marketing for that home), they only lowered their price once and were still more than $100k overpriced; they decided to change agents and lower their price and MAGIC!! the home sold 2 months later in the low $700k’s!!

Needless to say, we were left with unpaid man hours, unpaid marketing bills and worst of all….a very sour taste in our mouth because they didn’t listen to us and didn’t trust us.

Team Miamism is ok with being the bad guy and even if you are friends, we learned our lesson and will not take overpriced listings.  We need you to be realistic!  We need to be a team and be on the same page to be able to achieve our goals.  Please note that we will also be vested in your home and will want the sale as much as you. Being a team means that we will market aggressively and be at your beckon call,  but you need to cooperate as well – by providing excellent showing conditions, by having your house available, and by pricing correctly.  If you’re not a team player, there are plenty of other Realtors that will take the listing and let it ferment with the rest of their unsold inventory.

Related Articles:

What your think your home is worth vs the truth originally appeared on Miamism on September 8, 2010.

Nothing like a client selling our services for us!  We just love loyal customers that keep spreading the good word about the way we handle Miami Beach Real Estate.  Looking back at difficult transactions and the obstacles we have to go through to get things accomplished is all worth while when you get an email like this:

I’ve copied real estate agent Rick Garcia who was a tremendous help with my condo. He’s effective and unlike most Realtors who will tell you anything just to get the listing, he is realistic and straightforward. I know the Miami market is still depressed, but if you are open to his ideas and pricing, then he will make every effort to get it sold or leased.

THAT’s what I’m talking about!!  We tell you time and time again that we don’t sugar-coat information, we don’t paint pretty pictures of current real estate conditions and we tell it like it is.  It’s the number one reason our clients recommend us and come back again and again.

We are dedicated to your success, whether buying or selling Miami Beach homes or condos and will go above and beyond so you keep coming back for more.

Thanks Chris for the awesome referral, totally made our day!

*originally posted on January 31, 2010*

Related Articles:

Effective and unlike most Miami Beach Realtors originally appeared on Miamism on August 22, 2010.