Aug. 25, 2010
This article recently caught my eye.
6,000 properties in South Fla. under $50K
FORT LAUDERDALE, Fla. – Aug. 24, 2010 – Thousands of South Florida homes can be picked up for about the same cost as a new Ford Mustang GT500 as the real estate crash continues to put the brakes on pricing.
A report released earlier this month by the Miami-based real estate and consultant firm Condo Vultures found 5,400 townhouses and condominiums, and 600 single-family homes in Miami-Dade, Broward and Palm Beach counties have list prices of $50,000 or less.
Peter Zalewski, a principal with Condo Vultures, said he compiled the data from the Multiple Listing Service because he had several clients who didn’t want to spend more than $50,000 on investment properties.
Although a close observer of the South Florida market, Zalewski said he was surprised at the number of bargain-basement listings.
At the peak of the real estate boom, Zalewski said he paid $25,000 for a parking space at his condominium, which “wasn’t even a very good space. Today, with that same money, I could theoretically go out and buy a property,” he said. “It’s really reflective of how this market has changed so dramatically.”
Broward County had the most properties available under $50,000 with 2,400 listings.
Palm Beach County was the runner-up, listing 2,100 cut-rate properties.
Zalewski acknowledged that some of the homes are in senior communities and that the majority are distressed properties – either bank-owned or short sales. Many are condos that have been abandoned by investors who paid sky-high prices during the boom.
At the Palm Beach Grande in suburban West Palm Beach west of the Turnpike, units were bought for up to $180,000 when the former apartment complex went condo conversion in 2006. A one-bedroom unit purchased in April went for $24,900.
According to Condo Vultures, Palm Beach County has 21 single-family homes, and 437 condos currently listed with sales prices between $20,000 and $29,999.
“Before, you thought under $100,000 was a great value, now you have all these opportunities for under $50,000,” Zalewski said.
Nancy Jennings, broker at Keller Williams Wellington, said her agents are busy with customers looking for those kinds of deals.
“I had a call this morning from a buyer in Ohio who wants to find something in the $30,000 to $35,000 range,” Jennings said. “We’ll find him something for sure.”
Zalewski cautioned that some of the cheap listings are banks offering teaser prices on short sales. Still, he found that about 7,000 South Florida residences have been bought since the beginning of the year for $50,000 or less.
“Many of these buyers are all-cash investors who are focused on accumulating rental properties,” he said.
Copyright © 2010 The Palm Beach Post, Fla. Distributed by McClatchy-Tribune Information Services.
It is unquestionable a great time to buy real estate in Florida. There is great value in this economy. However, if you want to get involved in this market, there are some things you need to consider.
Most of these will be cash only. Distressed properties are difficult or impossible to finance. Financing for condos is virtually non-existent.
Foreclosures in this price range move like lightening. I have seen them listed in the morning and sold by the afternoon. You have to act quickly.
Short sales are a long and tedious process. It is not unusual for a short sale to rule 6-8 months before a response. Be patient.
I am a specialist is distressed sales. I can help you navigate the mine field and purchase a great property. Whether you are an investor, first time buyer or seasoned home purchaser, I can help.
Feel free to contact me or visit my website
Don Kelbick Realtor
Interinvestments Real Estate