If you’ve paid more than $150 to apply to live in a condo in Florida, you’ve been ripped off.

Miami Condo Listings with Illegal Application Fees. Courtesy of Miami Herald.

Last month I was reading the latest issue of ‘Florida Realtors’ magazine and I came across an article that informed Florida Realtors that condominium associations are not permitted to charge any transfer fee or application fee that exceeds $100 per applicant, (and that any husband, wife and child are always considered one applicant). Whether this fee is a transfer fee, an application fee, or a tenant screening fee; the maximum fee allowed by Florida state law is $150. This came as a complete surprise to me, considering I had assisted many clients with rentals and sales of condo properties in Miami in which the condo management fees ranged from $150 to $250. Almost every client that I have ever had has complained to me about these illegal application fees, but until reading the article in the ‘Florida Realtors’ magazine, I was completely unaware that any fee exceeding $150 was illegal.

I decided that something should be done about it.

I called the Florida Realtors Legal Hotline to clarify that these fees were illegal, and to get more information for my clients about what kind of recourse they would have to get their money back. The Florida Realtors Legal Hotline is an invaluable resource for Realtors that allows us to instantly speak to an attorney about various real estate topics.  The attorney that assisted me informed me that, yes, any fee exceeding $100 is illegal, and that my clients have 4 options to get their money back and to report this illegal activity. Those 4 options are listed below.

I then reached out to the Miami Herald to see if they’d like to investigate this issue, and to help get the word out to consumers statewide. Real Estate reporter Nick Nehamas did an amazing job researching how widespread this illegal activity really is, and helped consumers statewide by publishing it on the cover of the Miami Herald on Friday, June 3, 2016:

“South Florida condo boards rip off consumers with high application fees” – Miami Herald

The Miami Herald (https://www.miamiherald.com/news/business/real-estate-news/article81430117.html) analyzed the current listings in the MLS (Multiple Listing Service) and found that in Miami-Dade county, 46% of the condominiums listed for rent or sale show that they require a fee of more than $150 per applicant. The issue here is that Realtors are the ones entering the fee into the MLS system; so they are exacerbating the problem by allowing the activity to continue, and by publishing it for their clients and other Realtors to see. In my opinion, Realtors should be highly aware that any application fee over $150 is illegal, and thus, they should never be entering any number higher than that into the MLS, and they should be reporting any condo that’s attempting to charge an excessive fee to their clients, and to the State of Florida.  For those Realtors that are unaware that these fees are illegal, the MLS system itself should be set up to stop any Realtor from entering a number higher than $150 into the application fee field. This is an issue that myself, and some other Realtors, are taking up with the Miami Association of Realtors.

Clearly, this is a HUGE issue, and it’s going to take a LOT of work, by a lot of people, to resolve it. If Realtors are educated properly they can inform their clients to never pay illegal fees. If condo boards are educated properly they can change their policy on fees to comply with Florida State law.

“You’ve single-handedly changed the lives of hundreds of thousands of Florida residents by exposing this”
– B. Hunt

The Miami Herald investigation found that Quantum on the Bay in Miami charges renters $625 to apply and move in.

If you’ve been the victim of illegal condo fees, do these 4 things:

Inform the condo board that the fee is illegal.
Consumers should inform condo associations that they are breaking the law. If you have already paid an illegal fee, you are entitled to a refund. Section 718.112(2)(i) of the Florida Statutes prohibits condos from charging more than $150 in transfer fees per person or married couple. That includes application fees, credit checks, background screenings, move-in fees, pet registration and other charges related to the sale or lease of a condo unit.

File a complaint with the Division of Florida Condominiums, Timeshares, and Mobile Homes.
If the association insists on charging more than what is allowed by law, you must file a written complaint with the Division of Florida Condominiums, Timeshares, and Mobile Homes: http://www.myfloridalicense.com/DBPR/condos-timeshares-mobile-homes/

File a complaint with the Florida Attorney General.
The Florida Attorney General’s office accepts consumer complaints. Visit the following website for information: http://myfloridalegal.com/Contact.nsf/Contact?OpenForm&Section=Consumer_Protection_Division

File a civil lawsuit, or join a class-action lawsuit.
Consumers can also file civil lawsuits against condo associations. After the publication of the article in the Miami Herald, many attorneys have begun investigating claims.  One such attorney is Aaron Resnick, P.A.

Search for your new Miami Home:

Miami is officially the strongest real estate buyer’s market in the entire country, and Miami Beach is #2.

For the past 18 months I’ve been telling my buyers that NOW is the time to be buying real estate in Miami. The data now proves it: Miami, Miami Beach, and Weston are the 3 best cities in the country to be a buyer. In fact, 8 of the top 10 buyers markets in the country are all in Florida.

Home inventory is swelling rapidly and the median days that homes are sitting on the market is steadily increasing. A majority of homes are now taking over three months to sell.

We are heading towards a price correction in the Miami condo market. As of late 2015 we started seeing a slowdown in real estate sales both in Miami and in Miami Beach, but the changes in the Miami Beach market are the most drastic. This is most certainly NOT signaling another recession; we are simply finally seeing a cool-down and adjustment from the frenetic pace of sales and price increases that we’ve had for the past few years, and I welcome it. We need more stability in this market. I don’t expect to see anything as dramatic as we saw in 2007, but a 10%-20% decline in prices and sales is likely.

Take a look at some of these numbers:

In Miami, 1,876 single-family homes sold in the fourth quarter of 2015, a 14% decline from 2014’s fourth quarter sales. Condos had a larger decline in sales for the same period at 16%.

In Miami Beach, only 80 single-family homes sold in the fourth quarter of 2015; a 28% decline from the same quarter in 2014. Condo sales declined 20 percent in the same timeframe.

Miami Home Sales Year-Over-Year Change: 5 months of consecutive declines

So what’s causing the correction in the Miami real estate market?

• The US Dollar is strong relative to the countries that invest heavily in Miami real estate.
  The US dollar is up 17% in the past 12 months, making it that much more expensive for foreign buyers to purchase real estate in Miami and Miami Beach. Meanwhile, in Russia, their currency has dropped a staggering 36% versus the US dollar in the last 12 months; so buyers from Russia are now nowhere to be seen. In Brazil, another country that typically sees a lot of real estate investment in Miami, their currency is down 28% versus the US dollar. As most people are aware, foreign buyers have typically accounted for at least 50% of all real estate sales above $1 million in Miami, now, they’re gone. Canadian buyers have vanished due to the currency exchange, and as the Huffington Post reported, one Miami condo developer is actually so concerned that they are offering a whopping 35-per-cent discount to Canadians! The Canadian dollar is 25 per cent lower than the U.S. dollar currently, but that still isn’t enough to attract Canadian buyers anymore.

• We have fewer distressed properties on the market.
  The real estate market in Miami recovered rapidly, and has now had a few very strong years of sales, so distressed properties (short sales and foreclosures) are less common. For example, sales of distressed condominiums in Miami in the fourth quarter of 2015 were down 41% from the same quarter in 2014. That’s a dramatic difference.

• There is a lot of new condo inventory coming into the market.
  In Miami, in the fourth quarter of 2015 we had more than 8,000 condominiums listed for sale, an increase of 12% from 2014. In Miami Beach we saw close to 29% more condominium units listed in Q4 of 2015 versus Q4 of 2014. We currently have an astonishing 353 new condominium projects being developed now versus 246 back in 2008. This influx of new condominiums has affected the supply of homes on the market; in a healthy real estate market you want to have 6-9 months worth of inventory. In Miami Beach we have 18 months of supply of condos, and 24 months of supply of single-family homes. In January 2016, we had 6,000 new listings added to the MLS, the largest volume of new listings in at least 2 years, and that number is likely to be WAY off, because developers never list every available unit in new developments; they tend to list just a tiny fraction of them. In 2015, Miami broke the record for the highest volume of construction in history. In 2015, the building department in Miami oversaw 23,000 construction permits, 96,000 inspections, and 61,000 plan reviews. Miami completed $503 million worth of construction and had $2.4 billion of construction underway.

In Miami Beach we are seeing widespread price reductions, usually multiple times per listing before a property sells.

Miami Beach specifics:

In my home market of Miami Beach, single-family home sales and condominium sales are both down significantly and more new inventory continues to be brought to market. We have almost 30% more new listings now than we did a year ago, and prices are trending downward with an average decline of 10% year-over-year. Oddly, prices of single-family homes here in Miami Beach seem to be skyrocketing, and I’m not exactly sure why. Perhaps the constant frustration that most of us have with living in condominium developments here is driving most of us into single-family homes. A few months ago I was telling clients in South Beach that we had single-family home options for them just starting at under $1 million. We now rarely have anything for less than $1.5 million, and the average selling price here was an astonishing $3.35 million in the fourth quarter of 2015 — a 67% increase from 2014. For most of us, even with the correction in the Miami real estate market, the dream of buying a single-family home in Miami Beach will remain a dream for the foreseeable future.

So what does this all mean for you?

It’s time to slow down, study the market, and exercise caution. The market is not what it was in 2013-2014 when properties were selling the same day they were listed for above asking price, in all cash.

Buyers:
Due to the correction in the Miami real estate market, 2016 is an absolutely amazing year to invest in real estate in Miami! In most markets we will see widespread price declines. The very high-end market of $3 million+ appears to still be untouched by these recent changes, as is typical for buyers with unlimited spending ability. If you’ve been thinking about buying real estate in Miami for the past few years, but were put-off by the rising prices, 2016 will likely be your best bet to make a move and get a better deal than could be had in 2012-2015. Developers of new condominiums are already making changes in their buying terms, and are also reducing their asking prices. For example, Brickell City Centre, a massive development in Miami, recently reduced their deposit from 50% to 35% in order to attract more buyers and compete against hundreds of other projects. With foreign currencies continuing to decline, it’s only a matter of time before foreign investors begin to sell their condominiums for below market price. Use my Miami MLS Search to see what’s available now!

Sellers:
You might want to sit tight for a bit and see how this correction in the Miami real estate market plays out; listing your property in 2016 will mean that you have more competition, a longer time before your property sells, and potentially some disappointment at the new value of your property. If you are comfortable with those possibilities, there’s no reason not to list your home for sale, just be prepared for less demand than we’ve seen in recent years. All of the factors that affect sales are truly neighborhood-specific though; so ALWAYS make sure that you work with an experienced and knowledgeable Miami Beach Realtor if you plan on selling, so that you can get accurate and current information that’s specific to your situation.

Fall 2016 Update via StatFunding:

The Miami Beach market remains painfully slow with 139 homes sold in the last 30 days. This is a massive 11.5% drop in sales. Meanwhile, in Miami, there were 297 houses sold; the highest number from any of the surrounding cities. Buyers should note that house prices increased in Miami Beach, with the median price rising from $430,000 to $440,000. Miami Beach is a very strong buyer’s market with a whopping 23 months of inventory up for sale.

What can we expect in the next 24 months?

If we are at an inflection point in the condo cycle, the most likely chain of events based upon current market trends is as follows, but this is only a theory:

Most preconstruction buyers will reluctantly close on units due to the 50% deposit structure commonplace in this condo cycle. A subset of preconstruction buyers will be forced sellers for economic reasons and will likely be forced to sell at significant losses. Due to systemic market risks evident in the market, prudent lenders will withdraw from financing preconstruction condo buyers altogether. As a result, a subset of 50% deposit-holder-buyers will not be able to close their preconstruction purchases due to unavailability of financing for their remaining 50% balance to close. Financing for actual end users and resale buyers will also likely become unavailable, which will further shrink the pool of potential buyers and further depress prices. Condo lenders who failed to exit the market early will likely see high default rates, and lenders with loans at the higher end of the loan-to-value spectrum will likely realize losses following short sales and foreclosures. Rents will likely tumble as preconstruction buyers unwilling to take losses on their condos flood the rental market with new units.

http://www.miamirealestateguy.com/Miami-Preconstruction-Condo-Market-Update.pdf

Called ‘The Beach House’, 222 Ocean Drive is the only single family home that exists on world-famous Ocean Drive in South Beach…and it’s not only on Ocean Drive, but it’s also in the amazing ‘South of Fifth’ neighborhood, my favorite neighborhood in Miami Beach. There is literally nothing like this home, anywhere. It’s DIRECTLY across the street from the Atlantic Ocean and it’s hidden in plain sight in the epicenter of one of the most famous streets in North America. 222 Ocean Drive is literally steps away from the best restaurants in Miami and one of the best beaches in the World.  The home is currently owned by Shareef Malnik, owner of ‘The Forge’ restaurant in Miami Beach.

222 Ocean Drive has 7,050 SF of pristine living space, and easily bests the style of Calvin Klein’s Miami Beach house that I wrote about a few months ago. The Beach House was originally constructed in 1930, and was totally renovated in 2014 by Briggs Edward Solomon. Briggs Edward Solomon specializes in calm, earthy, organic design, which my readers are probably aware, is one of my favorite design styles. The craziness of South Beach can only be tamed with an interior design style such as this. We all want a zen-like retreat to escape the South Beach lifestyle!

222 Ocean Drive has 4 bedrooms, 6 bathrooms, a beautiful minimalist fireplace, a 2 car garage, walk-in wine vault, a home theatre, a private pool on the roof, a sun deck, a summer kitchen, and some architecturally stunning features such as the central staircase (see photos below!). The flooring is 11″ Wide Oscar Ono rustic wood planks throughout the home. The kitchen features Miele, Subzero and Viking appliances with white quartz counters. The entire home is automated with touchpad controls by Crestron.

‘The Beach House’ 222 Ocean Drive, Miami Beach, FL 33139 Details:

Bedrooms: 4
Bathrooms: 4 Full Bathrooms and 2 Half Bathrooms
Interior SF: 7,056 Square Feet
Total SF: 7,707 Square Feet
Lot Size: 5,750 Square Feet

Indoor Flooring:

• Oscar Ono engineered wood flooring – 11” wide, all white

Outdoor Flooring:

• Oscar Ono solid wood decking – 4” wide, Chene Oak

Landscaping/ Outdoor Space:

• Design and installation by Lance Allan Tinkler
• Artificial Topiaries by Majectic Gardens
• Entertain South Beach Style on your Private Rooftop Deck with dark bottom Pool including swim against jets for cardio fitness as well as a rooftop Cabana Bathroom.
• Summer Kitchen includes a Gas Grill, Refrigerator, Ice Maker and Prep Sink all wrapped in Brazilian Ipe Wood and Polished Concrete for easy outdoor maintenance.

Window Treatments:

• Manufactured & installed by Instyle Window Décor Fabrics by Arabel Fabric

Living Room:

• Structural, rare poured concrete column designed by BES
• Lots of Natural Light with soaring 20 foot high LOFT ceilings in Living Room Area.

Dining Room:

• Formal Dining area for 12 features the Custom Backlit Wine Cellar coupled by a sitting area with charming Fireplace and TV.

Spiral Staircase:

• Dramatic White Drywall Spiral Staircase designed by BES; reminiscent of New York’s Guggenheim Museum’s ultra-contemporary Stairway.
• Lighting & installation from Flos

Sitting Area:

• Fireplace by Spark Modern Fires

Wine Cellar:

• Custom wine cellar by Wine Cellar International LLC.
• Custom iron doors by High Tech Access Corp.

Kitchen:

• Custom Eat-in Kitchen with giant entertaining Island suited for 6 to dine.
• Equipped with gas Viking Chef’s Stove, Miele and SubZero appliances and walk-in pantry.
• Millwork by Unique Designs
• Fittings & backsplash by Waterworks
• White quartz countertops by Opustone

Bar:

• Appliances by SubZero
• Millworks by Unique Designs
• St. Tropez stone by Opustone
• Fittings by Waterworks
• Wood slatted wall designed by BES

Media Room:

• AV by Visual Acoustics
• Cabana Style cozy Theatre featuring a drop down screen, Epson Projector and dynamic Surround Sound.
• Adjacent Entertaining Bar for immediate pleasures while viewing movies or sports.

Powder Bath:

• Fittings & furniture by Waterworks
• Wood paneling by Unique Designs
• Duravit Toilets

Laundry Room:

• Washer/Dryer by GE
• Millwork by Unique Designs
• White quartz countertop by Opustone

Closets:

• Closet design & installation by Closets Etc.
• Spinneybeck leather pulls

Garage:

• Private two-car garage plus extra storage and service corridor.
• Storage by Closets Etc.

Master Bedroom:

• Motorized Window Treatments by Visual Acoustics
• Automatic retractable TV below bed by Activated Designs

Master Bath:

• Fittings by Waterworks
• White quartz flooring and countertop by Opustone
• Millwork by Unique Designs

Guest Bathrooms:

• Fittings and shower tile by Waterworks
• Porcelain flooring by Ceramic Matrix
• Vanities by La Cava
• Sconces by Nemo Lighting
• Medicine cabinets by Robern
• Glass enclosures by Prime Showers

Third Floor Terrace:

• Appliances by SubZero and Wolf
• Millworks by Unique Designs

Security

• Walled and gated for privacy with 8 perimeter cameras.

Floor plans:

Second Floor of 222 Ocean Drive

First Floor of 222 Ocean Drive

Miami Beach Single Family Homes For Sale:

If you, or anyone you know would like assistance with buying ‘The Beach House’ at 222 Ocean Drive, Contact Stavros Mitchelides, Miami Beach Luxury Realtor to chat about your needs, or if you’re ready to begin looking for your new Miami home, start your Miami real estate search now!

South Florida is one of the most popular places in the entire country to move to, and almost every one of those people who are moving here are asking me “Where are the best places to live in Miami?”. Thankfully there’s a great interactive map that was created to answer that question!

City-Data user ‘Jacobmax‘ has created a very useful interactive Map of the Best Places to Live in Miami and Miami Beach called the ‘Miami Neighborhood-O-Meter’. The interactive map (below, with key) includes all of the neighborhoods and cities in Miami-Dade county, rated by quality of life (safety, crime, poverty, upkeep, amenities, reputability, etc.). The Map of the Best Places to Live in Miami and Miami Beach is color coded by neighborhood, with the best areas labeled in dark green color, and the worst areas labeled in red color (there is a complete key to this map at the end of this page). The creator of the map used factual government & public data, his own research, and ongoing community feedback to come up with the interactive map of Miami located below, and it’s updated regularly as Miami neighborhoods change.

The full size interactive map is below. You can zoom in & out, and click on any neighborhood to see the neighborhood name.

Miami Beach consistently ranks in the top 100 most livable cities in the United States, according to rankings by Livability.com.

Livability cites Miami Beach’s seven miles of beach, three golf courses, 20 parks, endless shopping, dining, nightlife, museums, and cultural attractions among its best features.

“Sultry beaches, sizzling restaurants, wild nightclubs and the largest collection of Art Deco architecture in the world make Miami Beach one hot place to live,” Livability said. “Golf courses, museums and shopping centers provide more entertainment options. Miami Beach has attracted a diverse group of residents and draws thousands of tourists.”

So for all of those that now want to move here, the big question is…

Should you rent or buy a home in Miami Beach?

The Miami Beach median household income is $47,216 a year. The US average is $28,555 a year. Miami Beach currently has a median home price of $376,000, and a population of 91,784. The average rent in Miami Beach is $2086. So should you rent or buy a home in Miami Beach? Using these figures, it makes much more sense for you to buy a home in Miami Beach, rather than rent a home in Miami Beach, with a savings of more than 35% by buying rather than renting. Trulia found in a study in October 2015 that buying is 23 percent cheaper than renting nationally, but in Miami there’s an even bigger difference: it is 43% cheaper to buy a home here rather than rent.

Miami Beach home buying isn’t without risk though; many of the home sales here are discretionary purchases, meaning that they are purchased as investments or as vacation properties; both of which are highly subject to economic booms and busts. Additionally, when politics in Latin American countries become volatile, those foreign buyers flock to Miami to park their assets in Miami Beach real estate. This fluctuation in foreign property investment typically will profoundly boost the local market at times, and hurt it at others.

Contact Stavros Mitchelides, Miami Beach Realtor to chat about your needs, or if you’re ready to begin looking for your new Miami home, start your Miami real estate search now!