Luxury Real Estate Guide

Get yourself an exclusive buyers agent
Pub Date: 6/6/2008 11:17:04 AM
There are many different issues between purchasing a luxury home and a starter home. Such differences are location, architectural features, property size and all the other details which require special attention. I would strongly recommend working with an exclusive buyer’s agent, because when you are buying a luxury home, your need to make sure it reflects value and your interests and needs. Besides the price, you need to make sure that the agent briefs you on all the special details which come along with a luxury home. For example, what are the cultural and historical characteristics of the area? How is the privacy and security of the neighborhood? Who designed the home and is it elegant? Make sure that your agent does their job because after all, with a luxury home, you’re looking at a big pay day for that agent!

Setting Standards for a Luxury Home
Pub Date: 6/4/2008 2:18:04 PM
Almost every home over $1 million dollars is considered a luxury home. I think they should set minimum criteria for a home to be considered a true “luxury” home. Starting with the basics, the home must have a minimum of 10 garage spots and land must be at least 8 acres. With that being said, the amenities must include indoor, outdoor pool, tennis courts, one hard surface, one clay and a full indoor basketball court. The house has to have at least 10 bedrooms and 14 bathrooms. Must have a sauna, library, billiards, and a movie theatre room. Am I missing anything?

Let’s talk real luxury
Pub Date: 5/28/2008 3:49:29 PM
You might think that buying a property that’s worth more than 1 million dollars would be classified as a luxury home, but then again, there is luxury and then there is real luxury. One type of luxury is one that only very few people get to browse by on the internet. Take for instance one of the latest sales in Palm Beach County, where a reported $90,000,000 was paid out for the sale of “Maison de L'Amitie”. However, that fails in comparison if we put it against the record breaking and mind numbing $231,207,210 sale of a gigantic Georgia style house on super swank Kensington Palace Gardens, in London, U.K. According to the details of the sale, the house is being sold completely furnished, including all of its art and décor. I’d say that sounds fair, considering the fact the buyer is paying pretty close to top dollar on this one! Those numbers will pretty much humble everybody looking to buy a 2 million dollar property; then again, those numbers are seen by so few in this world that it's ok to consider your 2 million dollar property a luxury one.

Let it Ride
Pub Date: 5/21/2008 5:38:56 PM
The “elite” luxury agent leads a very lucrative life. If you get to sell a $10 million listing, you are looking at a minimum of $300,000. There aren’t that many $10 million homes, but even if it’s a $5 million home, you are still looking at making $150,000 with the possibility of making $300,000. Three homes a year and you’re looking at making close to a million dollars! Not bad. The better question is how you position yourself to obtain the listing. You must have experience because someone with that kind of money isn’t going to hand over their home to you because you are funny. Networking is very important because that same network that gets you the listing might find you a buyer for that house. The chances of getting a $5 million listing are better than winning the lotto. So go out there and start networking!

The cost of buying a luxury home
Pub Date: 5/14/2008 5:58:51 PM
When buying a luxury home one must take into consideration not only the price tag of the property, but everything that comes with that purchase. A lot of buyers find themselves in financial difficulties because they don’t take into account the extra expense associated with the new property. Luxury homes usually have big lots, big pools, and lots of different living areas that are costly to maintain. A buyer must be prepared to take care of all those items on a regular basis. Secondly, and probably the most important factor to consider when purchasing a luxury home are taxes. Property taxes could be quite steep when buying something that is worth over 1 million dollars. A lot of buyers may qualify for a mortage on a luxury home but then forgetting about property taxes could be a deal killer or a foreclosure motive. Next time you are shopping for your luxury home, take into consideration every expense that comes when buying that property. Always remember the costs of living on such properties are not small and that they usually add up quite fast. 

Cribs
Pub Date: 5/12/2008 3:53:41 PM
The times of CEO’s and entrepreneurial wealth has been replaced by the celebrity and athletes whose wealth has allowed them to take “luxury” homes to the next level. I don’t know if MTV still runs “Cribs” but celebrities have been buying or building homes which are so elaborate that they have television shows dedicated to showcasing them. You see bowling alleys, movie theatres, 20 car garages, televisions in every room you could possibly think of, closets the size of an average person’s home, and even a night club. Am I missing things? If so, please comment because I am sure you may have seen some ridiculous items that I forgot to mention. 

Monopoly
Pub Date: Thu, 8 May 2008 16:00:00 EST
Monopoly, the board game, which was originally started in 1935, is the most played board game in the world. According the Guinness World Book of records over 750 million people have played this game. What is most amazing about Monopoly is that even in a simple board game of real estate, there are prestigious homes! It’s great to have as much real estate as you can, but everyone who has played it knows that if you get Park Place and Boardwalk, you have the most money and have the opportunity to bankrupt anyone who lands on your “luxury” real estate. The moral of the story is that since 1935 people have always wanted to get their hands on luxury homes!! 

Luxury home buyers love rebates
Pub Date: 4/25/2008 12:16:31 PM 
What will a luxury home buyer be looking for when working with an agent? Better service, professionalism or maybe a rebate? Yes, a luxury home buyer will also be looking for a rebate. And the math is very simple. If the home he or she is purchasing is worth 2 million dollars and the buyer’s agent is getting a 3% commission, then that agent would have received $60,000 at closing. Now, if that agent is offering a 50% rebate at closing, then the buyer would receive $30,000 at the end of the transaction. That buyer would receive enough to cover a very good portion of his closing costs. That agent is still very happy, he got a great sale and made $30,000 in net commission. After reviewing the math, it obviously makes sense for that buyer to get a rebate; however, will he or she be looking for a rebate broker or someone who gives him or her the best service? I’ll say that he or she can find both. It just depends on the company that is being dealt with, but agents that give out rebates understand how the business works and how difficult it is to obtain loyalty from buyers; with that in mind, a good rebate agent will give a very professional, top of the line service with a rebate option at the end.

The luxury home cash buyer
Pub Date: 4/24/2008 2:09:08 PM
This could be described as the perfect scenario for a seller and the listing agent. A 2 million dollar property for sale and a cash buyer making a full price offer. On paper, this sounds almost too good to be true. With a targeted closing date of no more than 3 weeks, this buyer is ready to pay and move in. Too good to be true??? It might be. I experienced firsthand a scenario like that. Cash offers are always the best kind. No appraisals, no bank holdups, no underwriters. No delays, almost. The one big problem with this is the fact that buyers of this kind are not easy people to deal with. There is a reason on how they have that much money and that is not by just giving it away to anybody. They are very picky in everything they do, and when buying real estate, they tend to be extremely nitpicky about every little detail of the transaction. In other words, they are acting as an appraiser, bank underwriter and mortgage broker; all in one person. Then, attorneys get involved just to make sure the sale goes smoothly and properly. At the end of the day, closing with a bank may have been easier and less of a hassle. I am not discouraging cash offers for luxury homes, I am just saying that even though they are cash offers, it does not mean that the transaction will close without a hurtle and that everything will be on time. Then again, some sellers are just bourned lucky and they might have their house sold in 3 weeks, just like the contract said.

The Luxury Snowball
Pub Date: 4/11/2008 11:43:10 AM
This morning in a very prestigious neighborhood in S. Florida I was involved in the showing of a 5 million dollar home. The home was very nice and the listing agent did a wonderful job elaborating on all the specifics of the home, until we came across the fireplace. It was at this juncture that she began to explain to my clients how the reason why some older homes in S. Florida have fireplaces is because it would snow frequently in the 1920’s and 30’s. The luxury of having the internet allowed me to immediately check and confirm that the statement was completely false. My clients later stated that everything was great until she threw out the snowball factor. The lesson for today is, learn when to keep your mouth shut, especially if you are a so called “luxury” specialist.

Perfect Storm for Foreign Buyers of Real Estate
Pub Date: 4/9/2008 10:49:58 PM

It appears that the timing is the best it has been for quite some time for foreign buyers looking for second homes in the USA....sort like the PERFECT STORM !

Prices in most USA markets are coming down
Foreclosures are increasing
Inventories are rising
Locals are not buying because of tightness in lending
Property values in Europe are skyrocketing
The Euro and the British Pound continue to strengthen
The Canadian dollar is also strong
The likelihoodof a stronger dollar is LOW
Plenty of opportunities to buy at reasonable prices ....currency of acquirer and future property appreciation minimizes risk. 

Luxury homes in Miami may be undervalued
Pub Date: 4/8/2008 2:36:45 PM
Miami is different than most other cities in the US, in that there is an international clientele for real estate and luxury homes. Moreover, Miami real estate is undervalued when compared to cities like Malibu, Beverly Hills, Santa Monica, and Las Vegas, as well as some of our Northeast cities, like Boston and New York, Stamford, and Greenwich. This doesn’t mean that luxury homes in Miami are inexpensive, considering that about 165 luxury waterfront homes are listed for sale, each with an asking price of $2,000,000 or more. What it actually means is that you can still get a fantastic luxury home, in prime location, at a very decent price compared to something similar in the before mentioned cities. My take on it is that Miami is trying to become a major player in the US. It is already a huge link between South America and the US. It is also a good link with Europe. It is just a matter of letting the city mature and run its course. Once that happens, prices will be parallel to those in other big cities in the US; until then, good bargains are still available for all the high rollers looking to buy luxury real estate in South Florida.