The property was a true foreclosure, in which the bank had already taken possession of the property and had listed it with a traditional real estate agent. It was 1 bedroom bi-level townhouse property located in Aventura with 859 square feet of living space and an attached 1-car garage. The secured development was built in 2001 and has a swimming pool, exercise room, clubhouse and boardwalk along the canal. It is located within walking distance to Loehmann’s Fashion Island Mall and one mile of the famous Aventura Mall.
The bank listed this property at $199,900. The previous owner who went into foreclosure had paid $259,700 in January 2005. The next lowest 1 bedroom townhouse in this development is currently listed at $274,900. The lowest that a similar 1 bedroom townhouse has ever resold for in this development is $253,000, while the highest is $312,000. After a week of negotiations and multiple offers pouring forth, my client submitted his highest and best offer and was able to take this property into contract with an offer of $206,000 and a $6,000 seller concession at closing. The buyer did not have an investment motive when obtaining this property. Instead, this will be his primary residence and he can rest peacefully at night knowing that, even if real estate prices continue to fall, he will have a nice cushion which will feather even a large drop in prices. I think anyone would be happy with a 25%-plus safety net.