Recent Sales in Miami Real Estate: 5001 Pine Drive Sells for $3.8 Million (Or Is It $4.05 Million?)

posted on January 29th, 2011 filed under: Properties in Focus

The grand home at 5001 Pine Drive in the Ponce-Davis neighborhood of Miami near Coral Gables sold recently.  A significant concentration of luxury homes dots the landscape in Ponce-Davis.  Right next door to 5001 Pine Drive is the monumental home that Facundo L. Bacardi (yes, of the adult beverage dynasty) is building on 3.65 acres at 4975 Pine Drive.

5001 Pine Dr.

5001 Pine Dr.

Valuing this luxury real estate sale will be a challenge for brokers in the Miami and Coral Gables market.  There will be two big points of contention.

First, the deed, as recorded, indicates a price of $3.8 million (or $422.55/sf).  But on the MLS, the sale is reported at $4.05 million (or $450.35/sf).  Word has it that the difference is that the sale included the furniture, and the parties subtracted $250,000 for the value of the furniture when the deed was recorded.

If you were really cynical, you’d say the seller overstated the value of the furniture to save on deed recording taxes.  But seriously, is someone selling a $4 million-ish mansion in Ponce-Davis — who just accepted about half a million less than the asking price — really going to openly cheat on their taxes in order to save a relative pittance on the measly deed recording tax?  We’re talking about a deed recording tax of 0.60%, which amounts to $1,500 when applied to the $250,000 at which the furniture was apparently valued.

I’m going with $3.8 million as the true sale price of this Miami mansion.  The buyers could easily have spent $250,000 if they hired an interior designer and redecorated.  Kudos to them for slumming it and living with the used furniture that outfitted every room perfectly well.  It was all high-end stuff, of course, and now the buyers can enjoy their lives instead of hassling with a design project.

The second problem in valuing this comp sale is that the listing stated the square footage as 10,900.  That was an “according-to-owner” figure.  Miami-Dade County land records, on which listing square footage is usually based, put the square footage at 8,993.  At 10,900 square feet, either sale price ($3.8M or $4.05M) looks like a good deal at well under $400/sf.  At 8,993 square feet, the deal is more in line with recent sales in the low- to mid-$400/sf range.

I would look to the Miami-Dade public records on this one, to be consistent with the way properties are usually listed.  That’s what the foregoing $422.55/$450.35 figures reflect.  Gotta compare apples to apples when doing comp sales analyses.

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posted by // This entry was posted on Saturday, January 29th, 2011 at 9:04 pm and is filed under Properties in Focus. You can follow any responses to this entry through the RSS 2.0 feed.

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