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