If I Want To Buy a Unit In Plaza Resort Today?

I received a call from a Canadian buyer. He called me a week ago and questioned me about one of my listings in Plaza Resort & Spa, a premier Condo-Hotel in Daytona Beach. I sent him all the information, we exchanged a few e-mails, and then it all came to a halt.

I called him, and he explained that he made an offer on another unit in Plaza Resort & Spa. The one, which is direct oceanfront, and mine isn't. I figured that there is another agent involved, and I know that agent, so I said that it was fine and hung up.

Week later I see that the unit he told me he made an offer on, is still active, however, the price went up from $55K to $76K. Ouch, but for out of the area investors, it is not unusual to gauge the activity and then refuse to sell and raise the price. There was no problem doing it, as the offer was far from full price.

Today I received an e-mail and a call from this buyer. He tried to make an offer for another direct oceanfront unit in Plaza Resort & Spa, but could not get any response, and was asking me to represent him in this transaction.

Well, this unit is on MLS but is not really for sale, the seller is not responding, so this is a dead end, and it will eventually end up in foreclosure.

My Canadian buyer asked me about another oceanfront unit in Plaza Resort & Spa, but just yesterday we have received a nearly full price offer for the next best deal in Plaza.

So, he asked me what the best deal in Plaza Resort & Spa was, if he would buy something today. And it is tougher question than it seems.

If for under $65K, than units 1217 and 1218, which are both listed for $64K seem to be a good deal. I know who the seller's agent is, and I know what the Seller paid for it, and I know that flipping at $64K does not really give her a lot of money, so I would not expect her to discount even for a penny.

There is an investor, that just increased the price by $21K on another unit, so the investor might be tempted to do the same here.

So, if my goal were to buy a unit today for under $65K, I would go with full price, quick closing, and hope that she would not change the asking price.

As for whether unit 1217 (it is one unit closer to the ocean than 1218) for $64K is the best deal, if $65K cap was not there, I am not that sure and here is why.

Let me compare unit 1217 it to unit 409. Unit 409 is South East corner (direct oceanfront), largest studio floorplan in Plaza Resort & Spa (513 sq. ft.), 2 balconies, glass cook-top (other studios don't have it)... Asking price $103,900 (the Seller wants to raise it, but for now it is what it is).

Unit 409 was initially bought in February 2006 for $385,665. It is 26.9 cents on a dollar.

Unit 1217 was sold in March 2006 for $232,973. It is 27.5 cents on a dollar.

When the prices go back to 2006 level (and it is not a matter of if, it is only a matter of when, and 409 will be sold for $153K more than 1217, tell me, which is a better buy today?

Meanwhile, unit 409 will have better rentals because of the cook-top as families prefer being able to fix breakfast in the unit rather than eat out.

Let me know if you have questions. My mobile is 386-405-4408.