What changed on May 7th. Keller Williams Elite, acting for the bank-owner, dropped the price from $799,000 to $450,000 — a single-day reduction of $349,000 (−43.7%). The MLS now explicitly states "Bank-owned property. Cash or hard money offers only. POF required with all offers. Highest and best by 5/15/2026 10:00am."
What is being sold. A 7,150 sqft corner lot at the intersection of SW 21st Avenue and SW 25th Street, two blocks south of Coral Way, four minutes from Coconut Grove. Two CBS structures (built 1940, 2,147 sqft total) sit on the lot with a confirmed City of Miami demolition order on both buildings. The legal description shows "LOT 26 LESS ST" — the "LESS ST" clause acknowledges the city dedication line referenced in the broker remarks.
Where the real value sits. Miami Realtors' 2025 Land Report puts Miami City median residential land at $99/sqft, with adjacent Coral Gables at $433/sqft. Silver Bluff sits between these markets. At a defensible $200/sqft, the lot alone is worth $1,430,000 — 3.2× the current ask. Even at the most conservative $130/sqft, intrinsic land value is $929,500 (2.1× the ask).
Why the bank is moving now. Property tax 2023 = $13,696/year. The asset has carried $50K+ in tax + insurance + property preservation costs since the November 2020 sale at $420,000 — a position the bank likely acquired through foreclosure. After 213 days at $799K and 600+ cumulative days across prior listings, the bank is cutting losses and exiting the book.
Why this is not the same deal as last week. At $799K, the implicit land value (net demo) was $105/sqft — in line with the Miami median. The build-to-sell economics did not clear basis. At $450K, the implicit land cost drops to $57/sqft — 42% below the Miami City median. Scenario A (luxury SFH) now clears at $950/sqft exit. Scenario D (land bank) returns +165% before any appreciation. The math has flipped.
The execution risk. Highest-and-best on REO with a 24-hour clock favors institutional cash buyers. POF requirement means liquid funds documented at offer. The bank's reservation price is unknown but the −43.7% cut signals an internal mandate to clear at any reasonable bid above the demo-and-hold floor (~$350–400K). Bids in the $475–525K range with a 14-day inspection are likely to be in the money.
The only confirmed transaction on this property in the past decade is the November 2020 close at $420,000. Every subsequent re-listing at $499K, $549K, $674K, $699K, $775K, $799K, $850K, and $899K has either expired, cancelled, or fallen out of contract. The market has assigned a hard ceiling around the $420K–$500K band — and the bank has now accepted this reality.
The April 27 "Back on Market" tells the story: a deal collapsed during inspection — almost certainly due to the demolition order disclosure and city dedication line. The bank repriced 10 days later to a level that pre-empts inspection-stage withdrawal. The $450K ask is the bank's clearing price, not its reservation price. Bids of $475–525K with waived contingencies have material upside.
All scenarios assume the bank accepts the $450K ask. In a highest-and-best context, the actual winning bid may settle in the $475–550K range. Scenario D remains highly accretive even at $550K acquisition: total 3-year basis ~$640K, mid-case Y0 profit still +$790K (+123%).
| Parameter | Limit |
|---|---|
| Lot Area · minimum | 5,000 sqft |
| Lot Width · minimum | 50 ft |
| Lot Coverage · 1st floor | 50% max |
| Lot Coverage · 2nd floor | 30% max |
| Green Space · minimum | 25% |
| Density | 9 du/acre |
| Units per lot · HARD CAP | 2 max |
| Height · principal building | 2 stories · 25 ft |
| Setback · front principal | 20 ft |
| Setback · rear | 20 ft |
| Setback · side (corner) | 10 ft secondary front |
| Use category | Status |
|---|---|
| Single-family residence | R · By Right |
| Community residence | R · By Right |
| Ancillary dwelling unit | R*** with conditions |
| Two-family residence | prohibited in T3-R |
| Multi-family housing | prohibited in T3-R |
| Bed & Breakfast | prohibited in T3-R |
| Home Office | R · By Right |
| Religious facility | E · by Exception (PZAB) |
| Hotel · Inn · Office · Retail | prohibited |
| Childcare / Pre-school | E · by Exception |
The bank cut $349,000 (−43.7%) on May 7 to clear the asset. At $450,000 ask against $1.43M intrinsic mid-market land value, this is no longer a negotiation question — it is an execution question. The deadline is tomorrow morning.
Three of four scenarios now clear basis. Scenario D (land bank) returns +165% to +271% depending on hold period, before any neighborhood appreciation. Scenario A (luxury SFH build) clears at mid-band exit pricing for Silver Bluff. Scenario C (renovation) returns +21% to +47% if the demo order can be lifted via remediation rather than demolition.
Recommended bid. $510,000–$530,000 cash, POF attached, 10-day inspection (information only, not contingency), 21-day close. Anchor above $500K to clear other speculative bidders; cap below $550K to preserve full margin of safety on scenario D.
Walk-away price. $625,000. Above this level, the implicit land cost approaches $80/sqft and compresses the 3-year IRR below the threshold that compensates for the demo order execution risk and ROW dedication uncertainty.
What to submit by 5/15 10am. (i) Signed offer at $510–530K cash via MLS Offers · (ii) Proof of Funds (bank statement / line of credit / wire-ready letter) · (iii) Earnest money $25K hard at acceptance · (iv) Pre-approval of demolition permit timing with City of Miami Building (call today) · (v) Title commitment ordered same day on acceptance — confirm "LESS ST" dedication exact area before closing.
Post-acceptance critical path. Within 48 hours of acceptance: (i) zoning verification letter from City citing T3-R and 2-unit cap · (ii) demolition order status + remediation pathway · (iii) full Phase-I environmental given pre-war structure and septic tank · (iv) survey verification of city dedication line square-footage impact · (v) flood certificate confirming Zone X status (MLS states X — pre-closing audit required).