THE GREAT MIAMI DO-OVER

If you missed out on your opportunity to buy a little piece of second-home heaven in Miami four years ago – back when prices made sense – the real estate gods have answered your cries for a second chance. The market has tanked, and those who have to sell are eager to make a deal – any deal.

And we’re not just talking about price slashes on the expensive, multi-million-dollar stuff (although there’s plenty of that). These days, you easily can pick up a waterfront or near-waterfront condo in Miami for less than $300,000.

Of course, some elements of the real estate game have changed: Miami’s good old 10 percent down days are history, so you’ll have to pony up at least 20 or 30 percent. And while mortgage rates are lower than ever, getting a loan is no longer a cakewalk.

“Cash buyers are definitely buying and closing right now,” says Alicia Cervera Lamadrid of Related Cervera Realty Services. “But even if you’re hoping to get a mortgage, this is the time to come in, identify the unit and negotiate.”

Her company (rcrs.net) represents spanking-new downtown Miami buildings such as Loft 2, where you can pick up a unit for 10 to 15 percent less than the price the original buyers got from the developer in 2007. There’s unit 2819, a 1,041-square-foot two-bedroom, two-bath condo with partial water views, lots of light and 10-foot ceilings – in a building with a rooftop pool and gym – listed for $295,900. And the monthly maintenance of $483 is a lot less than it would be for similarly sized units in New York.

At the nearby and more extravagant 50 Biscayne, an 845-square-foot one-bedroom, one-bath condo with a den (unit 1605) can be had for $275,900, with $372 in monthly maintenance. And there are many studios, one-bedrooms and even a few two-bedrooms at One Miami, also downtown, for under $300,000, including a $260,000, 1,169-square foot, two-bedroom, two-bath residence (unit 1222) with views of Biscayne Bay.

A quick search through the MLS (multiple listing service) also reveals huge steals for units in more desirable South Beach. These include a 304-square-foot, $104,500 studio at 16th and Jefferson (landlocked but near Lincoln Road), with just $155 in monthly fees; a 806-square-foot, $270,000 one-bedroom at the Waverly building on the bay; a 686-square-foot, $280,000 one-bedroom at the Cosmopolitan development in the trendy South of Fifth area; a 776-square-foot, $235,000 studio at the Mirador South, on the bay and right by the new Mondrian development; and a 439-square-foot, $239,000 studio at the Atlantis on 25th and Collins that – last year – was listed at $295,000.

And for those with cash, there are the short sales, where a lender will agree to accept a price that’s less than what the owner still owes. It’s a last-ditch effort by all parties to avoid a costly foreclosure.

But broker Mark Zilbert (zilbert.com) points out that potential buyers who are lured by the idea of a short sale need to understand the fine print.

“Lenders will generally want to see cash [they don’t offer financing contingencies]. Buyers must show they can absolutely close,” he says.

Zilbert recommends finding a good broker to walk you through the process, “because oftentimes the listing agent lists the unit as a short sale but hasn’t done all the preliminary work needed for bank approval. This can lead to delays and even rejection of the offer. A good buyer’s agent will help qualify the listing and help the listing agent get bank’s approval.”

Zilbert also adds that it’s important to be patient because short sale deals can take months to close, due to the red tape.

In Miami, there are short sale steals aplenty. There’s a 760-square-foot studio at the Roney Palace in South Beach (right next to Gansevoort South) – bought for $340,000 in 2006 and recently listed for $415,000 – now listed as a bank-approved short sale for $200,000. A 735-square-foot one-bedroom at the Floridian, on the bay side of SoBe, was purchased for $335,000 in 2005, was once listed for $389,000 and will now short-sell for $200,000, pending bank approval.

“These are never-before-seen prices,” says Andres Asion of Miami Real Estate Group, examining a list of Miami’s short sales. A 26th-floor, 836-square-foot one-bedroom at The Club at Brickell Bay had last sold for $670,000 in 2006. Today, it’s listed as a $150,000 short sale. And a 580-square-foot studio at the nearby Four Ambassadors – bought in 2004 for $144,900 – was listed for a while at $225,000, but is now going as a $99,000 short sale.

When it comes to Miami real estate, one man’s pain is another man’s opportunity.

Consider Douglas Alexander Boyer, who bought a 725-square-foot, one-bedroom, 1½-bath unit with partial bay views at the Charter Club. Back in 2004, he paid $168,500 for the apartment, just north of downtown, and his monthly maintenance fees were just $400. Since then, they’ve only gone up to $422.51, but an impending assessment will soon bring that figure closer to $650.

In 2006, his home appraised for $270,000, and he was able to refinance. A year later, he put it on the market for $220,000, then later $190,000. There were no takers. Compounding matters, his work contract with a local TV station wasn’t renewed, so he had to change fields and take a less-lucrative job in public relations. Last year, he moved back in with his parents and rented out his condo to lessen the blow.

Now he’s thinking about putting his apartment back on the market for $175,000.

“I’ll be walking away from my whole situation without having gained much from home ownership,” laments Boyer. “Supposedly, buying your home is the American dream. But look what it’s turned into for so many of us: the American nightmare.”