|
Condo
conversions have become another hot area of South Florida real estate.
With land becoming more expensive and construction costs rising, condo
conversions have become popular with developers. Buyers and investors
are attracted to the condo conversions as well because of the pricing
and the ability to have a fast closing as apposed to waiting two to
three years for preconstruction. Condo conversions can be found in
all areas of Miami Real Estate.
Lofts have recently entered the mix in the real estate market. Today’s
real estate market has been adapting with the new demand and the lofts
have begun to come to the forefront. Additions such as Uptown Marina
Lofts and Terzetto Lofts in Aventura, Meridian Lofts and Industry
Lofts in South Beach and many others in Miami and the Biscayne Corridor
have begun putting the Miami Loft market at the forefront.
If you are in the market for a condominium, we will help you understand
the differences in the condo market versus a single family home or
other real estate transaction.Whether you are a first time buyer or
an experienced real estate investor, it pays to have a Florida real
estate agent who knows the local market and the condominium market
in general.
Everything
You Need To Know About Condo Flip!
What Is Condo
Flip?
Condo Flip is an online marketplace where buyers, flippers (sellers),
brokers, real estate agents, developers and builders can interact
with each other and exchange preconstruction condo properties.
What kind
of properties are listed in Condo Flip?
Condo Flip listings are for preconstruction real estate only. In order
to qualify for a listing, a property must be (a) purchased by a buyer
or owned by the developer, (b) the property must still be titled to
the developer (i.e. the buyer has not closed on the property) and
the property must be in an area or jurisdiction in which a Condo Flip
broker operates (and holds an active broker's license).
How Fast Will
I Find A Buyer For My Condo Flip?
We've noticed in the past that much of the resell buying doesn't take
place until the building is well underway in its construction. So,
if your Condo Flip is more than a year away from being completed you
may find that the typical end-user buyer (i.e. the person who will
live in the condo unit) waits until the building is closer to being
completed. However, there are always buyers who are looking to buy
early. We try to set a proper level of expectation with our Condo
Flip sellers, so while some Condo Flip units may sell quickly others
may take months, even years to flip. As you may expect, the pricing
of the unit is a key factor in how fast a unit can sell.
What are the
fees to buy or sell using Condo Flip?
There is never any kind of listing or service fee for using the technology.
A flipper (seller), however, is charged a 6% commission, but only
if the condo closes. If the developer has any seller fees, the developer
will charge the seller directly. Other than those fees, a seller can
list without any charges. Buyers are never charged a membership fee.
The marketplace is open to everybody.
I don't own
the condo yet, so am I allowed to sell It?
Most condos that are placed in Condo Flip are condos that have been
purchased by a buyer, but where the buyer has not yet closed (we will
also allow developers to place their first-round inventory into the
database). "Closing" refers to the time that the buyer takes
over the deed to the property. At that time, the developer also expects
to have the balance of the amount owed remitted. So, until that time,
you really don't own the condo. You merely have a non-cancelable interest
in the condo that ultimately becomes your condo at closing.However,
you are able to find a replacement buyer. If such a buyer is located,
we can have them take over your condo purchase (presumably for a profit)
in one of two ways:
Receive permission
from the Developer (normally by an Assignment Rider that allows you
to assign your condo to a new Buyer). There are commissions and fees
that may be required. In many cases your original deposit is refunded
to you as soon as you have found your replacement Buyer. The gain
on your sale, if any, will not normally be realized until Closing,
however. Wait until your Closing day, and hold a Simultaneous Closing.
This is normally required when a developer does NOT permit re-sales
during the pre-construction of the building (before Closing). It
is very important that you have a thorough understanding of your contract
with the developer. Some condo projects have put specific restrictions
on how long you must own your condo before being able to resell it.
We are happy to review your contract to look for any such restrictions.
Doesn't Condo
Flip open up the real estate market to "day trading"?
In the stock market, "day trading" refers to the practice
of buying an asset (i.e. stocks) and immediately reselling them for
a profit (based on daily fluctuations in the market). At first, it
may seem that condo "day trading" is possible. However,
there are some very distinct differences between day trading and the
use of Condo Flip:
A stock day trader
realizes a gain and receives the funds immediately. A Condo Flip seller
may certainly sell his property quickly, however, in most cases the
gain remains in escrow until closing. This may be for several years.
So, those dollar gains are normally not immediately available for
reinvestment.
Day trading depends on constant fluctuations in the stock market over
the course of a given day. The real estate market doesn't really fluctuate
on a day-by-day basis, but it does tend to rise. Still, the rise is
not a daily rise, even in a hot market.
|
