Friday, July 06, 2007

Dissecting an Inflated Sale in Miami by Geniusofdespair

Right after Hurricane Wilma in October 2005, real estate flattened out in Miami. I know that for a fact because I bought at the exact top of the market, closing the end of December 2005. I have very good timing. Take note of that when looking at this property owned by “Elba.”

According to the Daily Business Review, Elba’s folio 0131230170070 tax certificates were purchased for $1,668.86 in June ‘07 by “JB” and “Lou”.

The property, a 1,513 square foot house, was purchased by “Elba” from “Oscar” for $330,000 on 9/06. Oscar got the property in a quit claim deed from “Guerrier.” Elba got two mortgages from Long Beach Mortgage in Anaheim, Ca.: $264,000 and $66,000 for a total of $330,000. Elba is not taking a homestead exemption at this house.

The neighborhood is sort of strange. Most transfers were by quit claim deeds. I do find this quit claim phenomena in more economically depressed areas, however, I did find these sales:

House 1 a 1,555 square foot house went for $194,000 in 5/06 (large corner lot). $124 a square foot.
House 2 is 1,040, it sold for $145,000 in 12/05. $139 a square foot. $76 a square foot.
House 3 1,305 square foot, sold for $100,000 3/06. $76 a square foot. $98 a square foot.
House 4 is 1,590 square foot, sold 4/2005 for $155,900. $98 a square foot.
House 5 2,274 square foot, very large lot overlooking a park area sold 4/07 for $325,000. $142 a square foot.
House 6 in 6/05 went for $160,000, 1,060 square foot. $150 a square foot.

To make a long story short Elba paid $218 a square foot and got a 100% mortgage on it!

To me, it looks like the house was overpriced by about $75,000 to $100,000. Elba’s house does not have a lis pendens, just that pesky tax sale.

1 comment:

Anonymous said...

quit claim deeds, what are they? and why are they used.