Palms of destin

[Alexander Robinson]

What’s going on with the palms of destin, and destin in particular?? Been watching this market a little bit from afar, and can’t believe the massive price cuts! Heard there is a massive problem with the building, can anyone confirm?

[Ricardo Hidalgo]

Quote from @Alexander Robinson:

What’s going on with the palms of destin, and destin in particular?? Been watching this market a little bit from afar, and can’t believe the massive price cuts! Heard there is a massive problem with the building, can anyone confirm?

 Hoa is very high, off the water and maintenance is starting to increase. When you add the overhead you are just in gulf front condos with lower hoa directly on the water. Saturation has always been an issue in that complex and only select floors offer gulf views depending on the building. 

[Kyle Momany]

@Ricardo Hidalgo hit the nail on the head!

I don't know of any building (structural?) issues. I've sold 4 in there this year, they just need to make sense for investors. At the $400k+ price point, they don't.

Price cuts stem from a few things: 
- Agents/PM's over promising on income
- Buyers not doing their own due dilligence
- Buyers thinking they can take a place that hasn't changed since 07 and bring in the same amount of income as a new build that had an interior designer come in and make it sweet.

That goes for The Palms, Destin, and any other major market. The Palms saw prices sky rocket when people found out they had the potential to make $50k - $70k and they were selling for $170k- $300k. Everyone saw the best case scenario of $70k and ran their numbers off of that. Now they can't sell. 

Best of luck!