Archive for the 'Luxury Listings' Category
It appears that even the luxury real estate market will not fully escape the financial ravages that are taking down less-expensive neighborhoods.
Housing Wire asks: Has REO gone jumbo? To find out, they consulted with Integrated Asset Services, LLC in Colorado to see if foreclosures are moving up the real estate food chain. And though not all properties with loans in excess of the the conforming $417,000 are luxury homes, it appears that an increasing number of residences in that loftier lending arena are heading to short sale or foreclosure. In California, for example, IAS and Housing Wire saw 102 REO’s sell for more than $417,000 during April, compared to just 13 in April, 2007.
Anecdotally, we have seen a spike this past year in San Diego luxury homes that are closing as short sales (where more is owed on the property than what it is worth), or which end up as foreclosures and REO’s (real estate owned bank properties). We have also seen that it takes lenders far longer to reach an agreeable sales price compared to smaller loans–and that may be understandable.
On one hand, more money is at stake and greater care must be taken in reaching a fair valuation; on the other, carrying costs (taxes, insurance, maintenance, security and HOA fees) run far higher than ordinary REO’s. And that those are bills most lenders and services do not want to shoulder.
In a recent transaction in coastal Encinitas Ranch, Washington Mutual required two appraisals and took almost four months processing time before reaching an agreed-upon sales price. And during that time, foreclosure sale was delayed twice. The original loan amount was $1.2 million and the final sales price was $880,000. It was a major hit for the lender/investor , but costs would surely have been greater if this Encinitas home had gone to foreclosure.
We are currently involved with two other sellers who have loans exceeding $1 million and whose custom homes could end up as foreclosures if Countrywide and First Franklin investors cannot come up with pricing that reflects current San Diego market realities. Neither home is coastal (which would help prop up valuation) and neither have area comparable sales that would support pricing anywhere near what is owed on these homes.
Outside of our San Diego real estate practice with Villa Sotheby’s International Realty in Del Mar, we are hearing whispers that there will be more luxury short sales and REO’s before the real estate market recovers. And out of the confusion and delays in disposing of these luxury properties will be opportunities that luxury investors have been long awaiting.
And even the ultra-luxury real estate market appears to be experiencing some correction. In 2006, we wrote about Donald Trump’s luxury estate in Palm Beach being offered at $125 million. Recent reports say it sold at just $100 million.
What may have been painful for The Donald would have been a coup for the lucky buyer. I guess every market has silver linings–for someone.
read comments (5)A Luxury Home Bargain: Rancho Santa Fe Farms
by Scott Murphy
Discriminating luxury home buyers in the San Diego area are starting to raise sophisticated eyebrows at some of the better real estate buys in luxury neighborhoods such as Rancho Santa Fe.
One of the best buys on the market these days is a magnificent 4-bedroom, 4.5-bath single story estate on two level acres that was recently remodeled. This Rancho Santa Fe Farms home features a lagoon pool, a citrus grove, fine hardwood flooring and a 4-car garage,and is now available for $2,195,000 or the price of a luxury tract home in coastal San Diego.
Rancho Santa Fe Farms is a favorite for golfers who appreciate equity membership in the Rancho Santa Fe Farms Golf Course, or for those who simply want a home sitting on some of the finest acreage in San Diego County.
Located at 15032 Rancho Santa Fe Farms Road, this residence listed by Danny Powers of Villa Sothebys International Realty will be held open this weekend. For additional information, please call Scott Murphy at 760-613-6190 or meet me at the home this afternoon!
Most Luxurious Home in Lake Tahoe
I love living in coastal San Diego, but have a special appreciation for mountains and mountain lakes. Among other mountain attractions, its the regularity of seasons, the deep blue water, the towering pines, and the snow pack that accumulates each winter.
It is easy to imagine such natural beauty.
Now, imagine a 210-acre mountain estate in Lake Tahoe (the tax-free side) with its own serene private lake and an updated, 70-year-old, 38,000 square foot mansion complex. Offered through Chase International, Lake Tranquilitys splendid main residence replicates many important rooms in our Western culture.
Included is:
- A replica of the grand staircase on the SS Titanic. Ahhh.
- A cushy cigar lounge fashioned after the one at the St. Regis Hotel. Breathe deeply.
- A library that mimics the New York City Public Library. Shhh
This luxurious home includes a 3500-bottle wine cellar, 9 bedrooms, 18 baths, a gymnasium with basketball court, a guest house, art studio, boat house pavilion, horse stables, staff quarters, and two over-the-water par-three golf holes. The conservatory is accessed via an underground passage. There, you are greeted by an indoor mosaic glass swimming pool with poolside bar and exercise facilities all overlooking Tranquility Lake.
The exquisite natural setting provides trails for hiking or cross country skiing and incomparable views of Lake Tahoe and its magnificent surrounding mountains.
Tranquility is offered at $100 million. The owner is reported to be Joel Horowitz, co-founder of the Tommy Hilfiger empire.
If this is a property that might suit your portfolio, please call me at 877-818-8197 or 760-402-9101. An appointment with knowledgeable representation can be arranged.
Bargains in Luxury Real Estate
To paraphrase Charles Dickens, these may be the best of times and the worst of times at least with San Diego real estate.
Few are surprised that the real estate bubble popped in the plethora of new home subdivisions that peppered San Diego County in the last few years.
Stupid loans and and unwitting buyers created a marriage that has crippled the real estate industry.
But not all markets and communities suffer in the same way,
For example, few would consider Rancho Santa Fe, California real estate a bargain, when single family Rancho Santa Fe homes start at $1.15 million and currently peak at $29.9 million.
Moreover, only 16 of the current 167 active listings in RSF are priced under $2 million.
The bargain bin of real estate? Hardly!
Still, we have stumbled across a few notable buys:
- A 3220 square foot Del Rayo Downs home in Rancho Santa Fe was purchased for $1.74 million on 3/14/2006. It is vacant, in lovely condition and has been reduced to $1.395. The owner will even consider a trade.
- A gated, private and single story Mediterranean estate with over 5000 square feet on one acre just closed escrow at $2.1 million. It needed TLC, but the lots and bones were probably worth the total price. Located just outside Fairbanks Ranch.
- A 19.4-acre gated Covenant estate was listed at $29.5 million last August and closed escrow at a paltry $21 million last month. It was reportedly a cash sale.
- A Notice of Default has been filed against a lovely and very spacious 3-bedroom Rancho Santa Fe condo that has recently been reduced to around $1.2 million. I am already calling clients on this one.
- Another Rancho Santa Fe townhome was reportedly purchased for $1.675 million in the summer of 2005. It is now on the market at a value range of $1.3 to $1.4 million, has assumable financing, and guaranteed golf membership in the Rancho Santa Fe Golf Club .
Do we expect Rancho Santa Fe real estate pricing to fall off a cliff?
No way.
But it is certainly worth our time to scout the market to find sound values such as these.
Moreover, many who are now home shopping in Rancho Santa Fe and other luxury neighborhoods now can thank their lucky stars that they werent buying two years ago.
If you would like more information on Rancho Santa Fe or other San Diego luxury real estate, just give me a call at 760-402-9101 or 877-818-8197. You may also email me: roberta@sandiegopreviews.com
Read also:
Luxury Builder Says 2007 Worst in 40 Years
If real estate investors are looking for blood in the streets, they had better be wearing galoshes.
Even the books of venerable Toll Brothers, America’s largest builder of luxury tract homes, are in the red. For the first time in 21 years, the company is suffering its first quarterly loss (Oct. 31) in the amount of $81.8 million. Much of this loss can be attributed to $314.9 million in pretax writedowns for homes it could no longer sell at a profit. Even Robert Toll, the company’s founder, concedes that 2007 has been the most challenging year in the company’s 40 year history.
But every loss also registers a gain–somewhere and somehow.
It has been evident that newer tract home subdivisions have been hit especially hard the past couple of years. Many homeowners needing to sell had bought during market highs and more than a few a have been forced to sell at a loss. Funds spent on landscaping, hardscaping, flooring/ surface upgrades, and window coverings (and perhaps even the down payment) have gone down the drain.
It is a tough time to be a home seller.
This has forced a number of builders with standing inventory to offer costly upgrades as an incentive for potential home buyers. Those buyers, who once had to budget for many of these improvements, are now getting them for free–sometimes packaged with interest rate buydowns and other incentives. It is a spiral that has forced builders and their prior home buyers to compete.
Many shrewd real estate buyers have been renting and waiting for opportunities such as these–and are coming out of hiding. Real estate investors who sold at or near the top of the market a couple of years ago are also back into buying mode. And so are foreign investors, who benefit not only from depressed real estate prices in prime US markets, but also the strength of their Euros and Canadian dollars against the US dollar.
This may explain the recent phenomenon in the beaten-down San Diego real estate market, where multiple offers are being made on properties that are priced under market. It’s something we haven’t seen in a long time, and just may be the beginning of a market bottom.
If you have any questions (or need to borrow a pair of rubber boots), just give us a call at 877-818-8197 or 760-402-9101.
Luxury Home Sales to Climb with Bonuses
by Scott Murphy
Many top executives at large investment banking firms will be depositing some jumbo bonuses by the end of this month.
Despite an overall bonus decrease of 10% due to months of multibillion-dollar bank write-downs and a spreading credit crisis, many will be pocketing some still-sizeable sums.
Depending on which firm they work for and the position held, bonuses can range anywhere from up to $2 million to $50 million.
Real estate prices this year have dropped–and where else should these high earners invest their bonuses?
According to Forbes, some of these bonus recipients may also be rookies– as well as first time homebuyers–looking in the $5 to 6 million range. For top executives, the bonuses will be substantially more and potentially leading them towards the $20,000,000 home range.
Some rich real estate markets such as Manhatten, San Diego, the Silicon Valley area, Los Angeles and other top markets, just might see an increase of sales come the end of the year. Interest is already brewing in a number of these luxury markets.
In the coastal San Diego area, for example, Rancho Santa Fe, Del Mar, La Jolla, Carmel Valley, Coronado, Solana Beach, Cardiff, Encinitas, Carlbad and downtown San Diego (all coastal) offer some of the finest luxury homes in San Diego County. Inventory levels are also attractive for these flush buyers, which makes the home shopping experience even more fun.
At the other end of the country, many bonus-rich buyers will be shopping properties in Manhattan– including townhomes overlooking Central Park, which have asking prices at $50,000,000 or more. These executives might not be able to pay cash for one of these properties, but can rest assured that large down paymens will be coming from a secure source.
Of course the purchase of one of these homes will depend on the size of the bonus. But for some just starting out in the business, a nice condo in a great location would work very nicely.
Here’s wishing fat bonuses to all!
The Timeless Luxury Home
Sometimes you walk into a home, sense both ageless soul and serenity–and can’t help but smile.
We recently listed such an estate in the beautiful hills of Vista, California. Its current and original owners are a spirited and beautiful international opera singer and her dashing husband, a retired professor of art. With loving attention to detail, it seems nothing was missed in the completion of this luxurious 2003 custom home.
When I first walked into the home, I was struck by the use of old and rich colors, antique woods, the graceful wood and iron staircase, and light classical music that filled the rooms.
At first glance, I knew this home would be exceptional.
The gated hilltop setting offers both ocean and mountain views–as well as quiet privacy. The home’s flexible 4000+ sf floorplan has volume ceilings that carry classical music well, a grand foyer, large living and music rooms, multiple dining areas, and a kitchen Alice Waters might envy.
Upstairs, we discover a substantial master suite with an adjoining study, large dressing room and bath, 
spa tub, and large, organized closets. A romantic trellised balcony overlooks both the mountains and ocean horizon, while the two-way fireplace warms both the bedroom and bath areas. Three other large bedrooms and an open bridge complete the upstairs.
The bones of a home may be magnificent, but inspiring beauty comes from surfaces, windows, doors, lighting, amenities, color and textures. I share clients’ enthusiasm when all of these elements come together.
This home lacks nothing and blends all elements well. It has rich Tuscan colors, art niches and unfluted columns. It beautifully blends the use of stone, iron and woods, and offers contemporary conveniences such as central vacuum and a discreet kitchen vent that captures broom sweepings.
Outdoors is a large covered patio, lawn, gardens and small acreage for hobbies, horses or arborists.
I have often thought that equestrian homeowners in Poway, Rancho Santa Fe and Fallbrook who were displaced by the recent San Diego fires might find this property of interest.
Located on highly-desired Elevado Street in Vista, this estate is reasonably offered at $1.5 million by owners who are anxious to retire in Crete.
We intend to help them accomplish this dream–and look forward to having terrific clients in such a wonderful corner of the world.
Richistan Home Prices Continue to Soar
$50 million is the new $30 million, says Glenn Roberts over at the Inman News Blog–especially when it comes to high end luxury homes.
Citing a 2007 Mid-Year Luxury Report by Stribling Private Brokerage, Roberts explains how just a few years ago, even a rumor of a $30 million real estate sale in Manhattan would create big buzz. But since the sale of a $53 million property there in late 2006, prices have leapfrogged into the $50 millions.
This enormous inflation at the top tier of the real estate market is occurring across the country–from San Francisco’s $55 million fixer, to Donald Trump’s $125 million estate in Florida to Tim Blixseth’s $155 million estate offering for his 53,000 square-foot estate in Bozeman, Montana.
I couldn’t resist responding to Glenn’s article:
We are seeing a similar phenomenon in the San Diego’s luxury end of the real estate market. Late last spring, a Del Mar oceanfront estate was sold at $48.15 million–setting a California record.
Now, just listed, is another 5.5-acre Del Mar oceanfront estate with a price tag of $76 million.
Inflation in Richistan continues to amaze!
Other articles of interest:
Breaking All Barriers: Luxury Homes Reach Nine Figures
Del Mar Estate Most Expensive Home in San Diego
We follow luxury listings throughout the world, and when a home listed above $50 million hits the market, it’s NEWS by any stretch of the imagination. And San Diego is just the latest to break that barrier.
Priced at $76 Million, this circa 1937 oceanfront Del Mar trophy estate sits on nearly 5.5 singular acres. The two story home has nine bedrooms and six-and-a-half bathrooms and ocean frontage of 396 feet. It is an oceanfront estate that will appeal to top tier and global real estate collectors–and is a relative bargain compared to other hurricane-prone waterfront estates.
We caught first official details of the story from Michelle Mowad, crack reporter and writer for The San Diego Business Journal. She interviewed agents (listed by Brian Guiltinan with Prudential California Realty) involved in the offering and reveals that the property is owned
by San Diego venture capitalist William “Bill” Stensrud, one of San Diego’s wealthiest residents. He is a partner with Enterprise Partner’s Venture Capital, who recently acquired Muze, Inc.–reportedly purchased the Del Mar property seven years ago for a (then) record-setting $25 million.
This just-listed, private, and gated estate also sits across from the Del Mar Race Track, and is just a short stroll away from Del Mar Village and shopping in Solana Beach.
And given that Del Mar and coastal San Diego County arguably have the finest year round climate in the world as well as a thriving economy–this is one real estate offering that may not last for long.
For additional reading about luxury real estate and listings, read:
World’s Most Expensive Mansion
Luxury Home Management: Ask for the Butler
Montana Luxury Real Estate Coup?
Easy Feng Shui Tips for the Luxury Home
World's Most Expensive Mansion
This may arguably be the most expensive and tallest private residence ever built.
Indias wealthiest man, Mukesh Ambani, 50, is slated to begin construction of a billion dollar glass and steel skyscraper home in Mumbai City, the financial capital of India. The 27 story building will be designed to house his family of six and staff of 600, with six floors dedicated to the storage and parking of Ambanis 168 automobiles. The top four floors will be set aside for family living.
Ambani is estimated to have a personal wealth hovering at $21 billion, making him the 14th richest man in the world, and the most visible man of wealth in India.
That wealth will also provide Ambani and his family with a full-service spa, fully-equipped gym, multiple floors set aside for visiting guiests and a home theater that can only be imagined.
Completion is estimated to take place in the Fall, 2008.
A tip of the top hat to The Guardian.
Read also:
Luxury Home Management: Ask for the Butler
Variable Range Pricing for Homes
Easy Feng Shui Tips for the Luxury Home
D.Porthault Sheets for Luxury Dreams