How Do I Make An Offer Without The Support of Recent Sales?

June 17th, 2013 Written By

young businessman scratching his head, confused

The Brickell Market is not experiencing the Summer slowdown that it used to. In fact, the lack of inventory and the tremendous amount of cash looking for a home, has allowed Sellers to increase their asking prices at a rate that is higher than comparable recent sales can support.

This is true especially on Brickell Key. On Saturday, just as I was about to sit down to write up an offer for clients that I had shown only three properties, I received a call from a colleague asking for advice. She was also sitting down to write up an offer with a customer for a property on Brickell Key. Thank goodness, it was not the same condo the one I was trying to get for my customers.

This is the dilemma that she had… Her customer fell in love with a condo at Courvoisier Courts, 801 Brickell Key Boulevard. He wanted to make an offer and so they sat down to look at the recent comparable sales to decide what the offer should be. He is a well established medical professional, with at least a 20% down payment, but will need to get a mortgage and has already been pre-approved. The closest recent sale of a comparable condo in that building is $50,000 less than the asking price of this one. The one he likes has slightly nicer finishes and is 5 floors higher, but that is not enough to support the difference in price. Yet, there is nothing else for sale that is comparable at the same or lower price. The Seller is holding better cards. A dilemma for sure.

He now has to decide if he really wants it. He will have a problem with the appraisal meeting his lender’s requirements for an 80% loan, and will almost definitely need to come up with more cash. Being a highly qualified buyer with a decent down payment is not an advantage in the Brickell area of Miami right now.

As always, CASH is KING!

We know the numbers and track the Brickell real estate market.  If you would like to schedule a buyer or seller consultation, please feel free to contact us at 305-960-5317 or send us a note here. 

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