Katerina Brosda, president and CEO of Brosda & Bentley Realtors in Aventura, says there's plenty of action in the housing market and prices are near the bottom.
Katerina Brosda, president and CEO of Brosda & Bentley Realtors in Aventura, has been a leader in pursuing potential buyers to the far corners of the globe. Her firm now has affiliate offices in Dubai, London, Monte Carlo and Paris and she reports her agents are working overtime making high-end deals. She agreed to share her take on the local market with talkofaventura.com:
TOA: Prices keep falling; foreclosures keep rising; but sales are up. Is the Aventura-Sunny Isles Beach market on the rebound?
Brosda: That is truly difficult to predict. There is certainly a huge difference between oceanfront and west of Collins in Sunny Isles Beach and along the beaches. In Aventura, one must differentiate between established community and new development, especially south of 180th, with so many new condos competing for ever more discerning buyers.
In Sunny Isles Beach, the Jade Beach and Trump Royal developments recently won Fannie Mae approval, enabling the developers to sell the remainder of units to buyers wanting to apply for financing for a portion of the purchase price. Trump Towers has had over 15 sales in April and many more contracts scheduled to close. The spectacular St. Tropez Towers has arranged for special financing terms for its buyers, but the real action is in short sales, pre-foreclosure sales and heavily discounted properties throughout both cities. Short sales now take only six weeks or less to close, as banks have become more understanding and well versed in the process.
Are we close to a bottom: Very close indeed! Let me put it this way: You buy an oceanfront property today, you cannot go wrong. May prices come down even further? Perhaps somewhat, but you do not worry too much when you are purchasing today with the intend to hold on to the property for several years.
As far as mid-priced or lower-end priced properties are concerned, even more buyer-education is necessary, as buyers think that banks will accept the lowest offer or even give properties away, which is not the case at all. There is also a common misconception that banks will treat a property as a liability rather than as an asset and want to get rid of it at any price. That is not true, either. And many buyers think they are the only ones buying. Not true at all. As recently as a few days ago an out-of-state buyer could not make up his mind on his dream condo. He was hesitating and thought he had time to think to make an offer. By the time he did make up his mind other buyers were faster and already made the accepted offer.
TOA: We keep hearing about new oceanfront condo towers with so many non-paying units that the associations are struggling to keep the lights on. Do you foresee a period when some quality buildings become just no-buy zones? And if so for how long?
Brosda: We keep hearing or reading the same rumors sometimes from rather questionable sources. If there is a developer in town wanting to sell product, we would be the first to learn about it! All new development plans are two, three, four years down the road. There are many approved oceanfront developments on record in Sunny Isles Beach, but they are not happening right now. Some condos are struggling with collecting maintenance assessments. This may remain an issue for as long as the overall economy is stabilizing. At Brosda & Bentley Realtors we have a strict corporate policy to require association boards to provide us with a written statement as to their financial status, reserve accounts and percentage of delinquent owners. If we see the numbers out-of-order, we will advise our clients to reconsider a purchase based on the findings. We do, however, market and sell pre-construction near downtown as there remains demand for specific niche product.
TOA: Your agency has offices all over the world. How does South Florida real estate look today from, say, a European perspective?
Brosda: Italians love America and especially Florida. Period. With the announcement of Fiat taking over Chrysler, we had entrepreneurs calling from Italy wanting to buy or take over Chrysler dealerships and simultaneously looking for housing, especially in South Beach. The British who were strong buyers up until a year ago have almost vanished as buyers. The French and Germans are still buying selectively. As a matter of fact, we have several scheduled appointments for the summer months from prospects visiting from Europe expressing interest to buy Southeast Florida real estate. Even with the concerns of the global economic struggles, the U.S. still remains the leading safe-haven for real estate investors from all over the world. Europeans are very demanding in their requirements and know exactly what they want and what not as they do their research online!
TOA: What’s your best advice to prospective buyers?
Brosda: As one of the leading full-service real estate companies in Florida, I would advise any potential buyer to make sure that they are dealing with a Realtor that knows what he/she is talking about. We have an increased number of calls from Realtors who do not even have access to the MLS anymore, inquiring with us as to the availability of condos in a specific building. This is unacceptable to the profession. Buyers must be clear as to know what they want and Realtors must be able to help to identify properties their prospects desire. I do see home sales gradually stabilizing. The action is in lower price ranges and mid-price ranges. High-end properties are picking up again, but we find those buyers, oversees, in Europe, South America or even India. If you can afford it, time to buy is right now. I don’t believe that this generation will ever see low prices and interest rates like this again.
TOA: What’s your best advice to prospective sellers?
Brosda: If you are in the market to sell, demand a marketing agent not just a real estate agent — someone who is dedicated not just to selling your home, but to selling it for more. Expect your real estate consultant to be an expert negotiator. Negotiations take preparation, strategic thinking and persistence, requiring the agent to devote time throughout the selling process. Find an agent who is a property promoter, not a personal promoter. It’s great for an agent to claim a top ranking and be #1 in some local magazine’s award- giveaway, but it’s meaningless unless that agent is promoting your property and not his own prestige. Insist on an agent with capable information technology skills, including online and database understanding.
Real estate sales move at the speed of light and you should expect your agent to handle complex Internet searches and manipulate secure databases.
Last but not least, favor Realtors who are leaders in their communities and who have a record of giving back. Real estate consultants who invest in where they live will use their skills in your favor as they will remain in that community long after you have moved away.
Source: http://talkofaventura.com/