A bit of an unusual situation. I am in contract for a condo in Miami Beach and planning to close on Sept 23rd. However, with the Hurricane Irma, it is going to impact my investment as it is going to find tenants (short-term rentals) for several months.
- Even though we agreed on the price (before Irma), should I renegotiate now?
- Is the Hurricane decreasing the real estate sales price temporarily?
How much earnest money did you put down? What's the purchase price?
Depending on the damage, this hurricane will definitely affect real estate prices in South Florida including Miami. I would wait to see what happens and then renegotiate. As long as you're within your window you should be fine. Plus if there's any damage to the property, that would practically change your agreement.
I don't think this will stop tourists from coming to Miami beach. People would be scared for a little bit and then they will quickly forget as usual. This is not the first devastating hurricane to hit Miami Beach
Did you already perform inspection? How about appraisal? If so I would redo them and negotiate at least to deduct price of what those services costs as well as what new things came up that did not come up on the first inspection.
If you are currently in your inspection period I would immediately request an extension of inspection period because of the storm. I did so for two contracts and I don't see why any seller would not understand.
If you have any other questions feel free to reach out !
Also double check you can even get insurance. I could see them wanting to insure you during a natural disaster.
No price effect....in a couple of weeks it will be back to normal. As a seller I wouldn't renegotiate.
@Josh C. You can't get insurance with a disaster coming. You need 30 days to instate the policy. There are some underwriters that will do it same day but they charge a CRAZY PREMIUM for it.
@John Martin I would renegotiate now and take the chances, listen... There is going to be so many auctions down there this coming week and next week, I am actually booking my flight down there for next week if I could. I have some cash to be ready to jump in, it isn't that bad of an idea. Like someone has mentioned, it's going to literally PLUMMET and then it's going to bounce back in a year or so maybe less. It might not even go down at all depending on how the market treats it, but continue the purchase renegotiate now while you can and take the chances. Just hold the lot for X amount pay the 1-2k taxes on it and then sell it later and let someone develop it lol. It's such a no brainer.
Hey guys, get a grip! There's no disaster happening in Miami and if there was there wouldn't be any auctions next week (or next month) from it. The market will see no price hit at all.
I kind of agree with the majority here, I don't think the market will see a big hit. The only thing I think might happen is that there may be some better deals to be had, because of owners that got scared and just want out. Otherwise, this hurricane is not going to stop people from living here or wanting to live/vacation here.