| Ask anyone what makes purchasing multi | | | | properties with comparable price tags for |
| million dollar estates different from buying | | | | appraisal purposes, the other common concern |
| any other house, and invariably he or she | | | | related to appraisals of homes priced above |
| will reply, "money." Greater sums raise the | | | | $1 million dollars is the appraiser's lack of |
| stakes and the stress level. Add to that a | | | | experience with luxury properties. An |
| limited inventory of luxury homes in any one | | | | appraiser who works in this price range will |
| market, buyers and sellers with fewer | | | | understand what is and isn't comparable, just |
| incentives to compromise, intense competition | | | | as they are better prepared to value features |
| for upscale property and multiple offers in | | | | and finishes in the subject |
| hot markets. Clearly, high-end buyers need to | | | | property.Interesting Tidbits:In a 2003 study |
| know what they want, what features are | | | | made by The Institute for Luxury Homes |
| important, and the fair market value of the | | | | Marketing and Unique Homes magazine polling |
| homes in question.Who is Involved:The most | | | | 4000 affluent households, a general profile |
| notable difference between a transaction for | | | | of a luxury homeowner was produced.The owner |
| a home that is less than $1 million and one | | | | of homes valued at $2.5 million or above is |
| that is above $10 million, other than the | | | | married |
| price, is the number of people involved. In | | | | |
| transactions involving multi million dollar | | | | Under age 55 |
| estates, there is a team approach, with the | | | | |
| real estate agent working for a business | | | | Works as a top corporate executive, business |
| manager in addition to the client and his or | | | | owner, or self employed professional |
| her attorney.Another factor to consider with | | | | |
| the high-end purchases is that a majority of | | | | Makes a million dollars or more annually |
| buyers of multi million dollar estates do not | | | | |
| use conventional financing. While cash | | | | Is "new" money |
| transactions can speed up the transaction, | | | | |
| they can also result in a shorter period of | | | | Owns multiple residences |
| time for completing conditions of the | | | | |
| purchase and sale agreement. This could be a | | | | Plays golf |
| problem, since a home inspection for an | | | | |
| estate home with multiple buildings, | | | | Volunteers for charity |
| mechanical systems, kitchens and baths can | | | | |
| take days or even more than a week to | | | | Has broadband Internet access at home |
| complete.Potential Snags:Luxury buyers also | | | | |
| frequently purchase larger pieces of land, | | | | Feels his home is a reflection of his |
| which bring an additional set of potential | | | | successThe study also showed:89% live in a |
| problems. Often an easement, whether it is | | | | single family home |
| deeded or grandfathered, doesn't come to the | | | | |
| buyer's attention until it is discovered | | | | 78% have four or more bedrooms |
| during a title search. Easements are only one | | | | |
| of many land issues that can slow a closing. | | | | 92% have four or more bathrooms |
| But, if a buyer knows about an easement ahead | | | | |
| of time, it is less likely to become a deal | | | | 84% have a home office |
| breaker. The best insurance for a smooth | | | | |
| closing is having an agent who is | | | | 59% have a home gymNew construction |
| knowledgeable about land issues and the type | | | | categorized 26% of the homes while 18% were |
| of property being purchased.Purchases that | | | | "custom built for me" and "historic property" |
| are being mortgaged will be subject to an | | | | described 8% of the homes.Inside San Diego |
| appraisal. For multi million dollar estates, | | | | Real Estate is a network entirely devoted to |
| good agents, particularly those working with | | | | real estate information. The entire Inside |
| a buyer under a buyer agency agreement, will | | | | Real Estate network has more than 100,000 |
| recommend an independent appraisal. In | | | | pages of real estate for cities allover the |
| addition to a limited number of sold | | | | United States. |