As the current Miami Beach Real Estate market is recovering, I am receiving a lot of inquiries and requests from buyers (both American and international clients) on the possibility of buying a foreclosed or bank owned Miami Beach home. However, there is still a big gap between high-end luxury homes and less desireable waterfront and non-waterfront properties. Most importantly, there is a significant increase in buyers activity on the market due to unfreezing of the credit market for qualified buyers.

To highlight the gap between the turnkey foreclosure waterfront homes and hard-to-sell mid-to-lower range single family homes, I’ve selected few closed sales bank owned homes in and around Miami Beach. Note that these are not short sales, but only classified as REO sales (Bank owned and approved).

North Bay Road- Bank Approved Sale

North Bay Road Foreclosed home in Miami Beach

Bank Owned, located on prestigious North Bay Road with nearby mansions and waterfront estates. Corner lot surrounded by privacy hedge. Open floor plan, designer stainless steel kitchen, terrazzo, limestone floors, formal dining room, family room, breakfast room, alarm system, sprinkler system.

+ : Great Location
- : Small corner lothouse needed some work due to recent neglect

Sold Price: $520,000 Original
Asking Price : $1,350,000 (2007)

Bedrooms: 4
Bathrooms: 3
House S.F.: 2,474
Land S.F.: 6,978
Sold Date: March 6, 2009
Original Asking vs Sold Price: 39%

Alton Road- Significantly Reduced Turnkey Waterfront Home

Foreclosed home in Alton Road Miami Beach

A 1930’s Mediterranean large home with guest house. Renovation was completed in 2006 with luxury touches throughout The additional amenities of this beautiful estate include: polished marble floors, a custom masonry fireplace, gas appliacnces,movie theater out door fountains with 5 bed and 4 and 1/2 baths.

+ : Complete renovation & charm
- : Located on busy Alton Road & limited appeal

Sold Price: $520,000
Original Asking Price : $2,200,000 (2006)

Bedrooms: 5
Bathrooms: 4
House S.F.: 3,223
Land S.F.: 7,320
Sold Date: April 22, 2009
Original Asking vs Sold Price: 24%

Biscayne Point- Gated Community Land Value Teardown Sale

Miami Beach Foreclosure Home

Bayfront vacant home that was sold “as is” by the lenders, gated community with wide bay views. Minutes from the Ocean, rare Bayfront lot with 75′ of waterfrontage.

+ : Waterfront lot with Wide Bay Views, Gated Community in Miami Beach
- : Complete rehab / teardown house

Sold Price: $500,000
Original Asking Price : $1,200,000 (2004)

Bedrooms: 3
Bathrooms: 2
House S.F.: 1,816
Land S.F.: 7,500
Sold Date: March 12, 2009
Original Asking vs Sold Price: 42%

Finally, to illustrate the dramatic difference with turnkey waterfront homes, I’d like to highlight another recent sale on Miami Beach’s North Bay Road, where the home was on the market for just TWELVE DAYS:

North Bay Road- Wide Bay Home

Luxury Miami Beach Foreclosure Home

This was one of the best waterfront deals on Miami Beach. Wide bay views with 77 FT on the water and a 254 FT deep oversized lot. This home is sparkling clean and livable “as is”.

Sold Price: $3,200,000
Asking Price : $3,900,000

Bedrooms: 4
Bathrooms: 5
House S.F.: 4,006
Land S.F.: 19,685
Sold Date: March 11, 2009
Original Asking vs Sold Price: 82%