Luxury Real Estate Blog :

2012 Market Forecast

Fri, 03 Feb 2012 19:29:00 -0500

Courtesy of Syd Leibovitch, President of Rodeo Realty

Syd Leibovitch, president and owner of Rodeo Realty, believes that 2012 represents the best time ever to buy a home. Prices are down and interest rates are at historic lows!

Home price forecast:

I think that 2012 will be the year we begin to see year over year increases in the median price on both a local and a National level. I'd forecast a modest 5 percent increase.

Interest rate forecast:

The reason that this year will present a unique opportunity is more interest rate related than price. Rates at 4 percent won't be available for long. I would forecast mid 5's by year end. While mid 5's are great historic rates, it is a 25 percent increase from 4 percent. Most buyers look at their monthly payment as a big factor so remember even if homes stayed the same the payment would rise significantly as rates rise.

My basis for these forecasts stem from an increase in consumer confidence. Nearly every survey and gage of consumer confidence nationally suggests that we are headed for better times. Corporate profits are up and things are looking generally better. We have seen a rebound on the desire of buyers to buy. There are always people that think prices are so high they can't go higher. I've heard that for 30 years yet they, over time continue to rise. The percentage of people that think it’s a good time to buy and that thinking it’s a bad time fluctuates. In 2005, it seemed like just about everyone thought it was a good time to buy. In 2008, it seemed like just about everyone thought it was a bad time to buy. Over the last year I've seen a building sense of optimism and more serious buyers.

When it comes to home buyers here is how I'd break it down:

First time buyers. With prices down 30 percent from their highs and rates down a 600,000 loan has a $1100 per month lower payment than it would have had in 2006. A $1,000,000 home in 2006 would now be $700,000. So basically a buyer could buy a home that was $1,000,000 for $700,000 and pay $2500 less a month had they bought that same home 5 years ago! FHA financing also allows buyers to buy a home with a 3 1/2 percent down payment. In many cases for not much more than first month rent and a 2 month security, and with today's low interest rates the payment is usually similar to the rent! There has never been a better time to buy.

Investors: If you consider how many of the wealthiest people made their fortune in Real Estate it only makes sense to be a long term Real Estate investor. With prices about 30 percent off their highs and low interest rates there has never been a better time to invest.

Move up buyers. Once I went to get my car serviced. The leasing salesperson met me when I picked up the car. He told me he could get me out of my current lease and lease me the new, better, current model with the same payment. He said "all you need to do is switch keys". I did it! With lower interest rates and lower prices we have people that can buy homes they could have never afforded before. Consider the above scenario with the $1,000.000 home now being 700,000. We have had clients that wouldn't have been able to afford the million dollar home in 2006. It was their dream home but they could only afford 700,000. Now that million dollar home is $700,000 and the lower interest rates makes the payment $1100 per month less than the $700,000 home they bought 6 years ago. Sure they have to take a loss on that home, but save on the new purchase. At the end of the day many people have found that they can sell their home and buy a better one for about the same monthly payment!

Rent your home and buy a new one:

This is what I just did and I'm encouraging all my friends to do the same. The goal should be buy low sell high! If you could afford to buy a new home and rent your current home I don't think you will ever be sorry. Your home will undoubted be worth more down the line, but when it’s worth more so will the one you would be buying. Ever thought about being a Real Estate investor? Why not start now with a property you know?

Weidel Float Amazes Winter Festival Goers

Fri, 03 Feb 2012 14:30:00 -0500

Courtesy of Scott Beaver of Weidel Realtors

New Hope, PA – Weidel Realtors is pleased to announce that their float entry in the 2012 New Hope-Lambertville Winter Festival parade received the first prize blue ribbon for their theme based on the Harry Potter series of books and movies. Erected on the back of a 1947 Dodge flatbed truck and enhanced by costumed agents and staff from the New Hope-Lambertville office, this marks the 5^th year in a row that Weidel has taken top honors. Previous winning entries included “Willy Wonka & The Chocolate Factory”, “Under The Big Top”, “Storybook Fantasy” and “Disney/Pixar’s UP”.

Photo: Weidel New Hope-Lambertville winning float entry, “Harry Potter”

Started in the late 1990’s to increase tourist traffic during winter months, the New Hope-Lambertville Winter Festival is now a large celebration attended by scores of people from around the world. The event provides a healthy, invigorating, cold-weather experience in two scenic river-town communities, hosting over thirty events besides the parade. Mummers String Bands, marching bands and other musicians bring a festive energy along with the many local organizations, schools and sports teams’ creative and detailed floats as they march across the river from New Hope-Solebury High School down Bridge Street into Lambertville.

"Weidel New Hope-Lambertville has always supported the Winter Festival and our communities,” said Pam Moore, Sales Director. “We enjoyed meeting all those who attended the festival and enjoyed being a part of such a vibrant event!”

Weidel New Hope-Lambertville can help with any and all real estate needs. For more information, please contact the office at 1-800-723-6995 or visit online at www.Weidel.com.

Founded in 1915, Richard A. Weidel Corporation, Realtors is the premier company providing guaranteed quality service to clients and customers in New Jersey and Pennsylvania. The Weidel Corporation is a full-service real estate organization offering mortgage services, homeowners and title insurance, national relocation services, and a real estate pre-licensing school. Visit thousands of homes for sale at www.weidel.com.

The Right Way to Get Started in Luxury Real Estate

Wed, 01 Feb 2012 16:52:00 -0500

Courtesy of Jack Cotton of Sotheby's International Realty

We're continuing our discussion around a question I get asked repeatedly: how to break into a luxury market especially one where there's a strong, dominant competitor. We talked last week about the wrong way to break in. Let's start the discussion this week with the first step in a better way to break in.

First of all, SWET that dominant player or competitor. You've probably heard of a SWOT analysis but we're talking SWET:

Identify the leader in the marketplace you're trying to break into and identify their Strengths? What do they do well? How long have they have been at it? What's their track record? What are they known for? What's their claim to fame, so to speak?
Next we want to look at their Weaknesses – what could they do better? Where do they fall down? What do they not do as good as they could do? What can you do better? You can find the answers to these questions by interviewing people in your marketplace; both agents and consumers.
List of everything they do in the conduct of their business. Do they go on their own listing presentations? Do they show their own properties? Do they negotiate their own deals? Do they do their own marketing? What exactly do they do? I've talked to some agents who tell me that the agent they're competing with is great at listing and buyer presentations, but that the buyer or seller never sees them again. And while that works for them, it could be an in-road for you if you can turn that around. That brings us to step number four: Turn it around.

What can you turn around, do different, better and opposite of what the leader is doing. This can give you a beachhead in your luxury real estate market? For example, if the leader never shows their own property, you could make that part of presentation that you are always personally involved with every showing that takes place of their property. I heard about one leader that won’t climb stairs for whatever reason. They sit down and wait for the buyer to look on their own. Your proposition to the seller can be how you personally demonstrate each and every feature of the property.

There's no right or wrong here. You just need to know what their strengths are, what their weaknesses are and what you can do that's opposite and better to turn it around to give yourself an edge when you're competing with a market leader in your location.

Remember, and this is important, luxury does not compare itself to luxury. NEVER denigrate or criticize a competitor. As I have said before, you have never heard an ad where Rolls Royce compares itself to Bentley. Use the information gained in your SWET analysis to fine tune your approach and then just sell your approach and the value it brings.

We're going to talk in more detail about additional steps to breaking in over the coming weeks. In the meantime, keep those questions coming. Send me emails and don't forget to schedule your 20-minute phone consultation if you bought the book.

Until then, make it a great week.

The Old New Thing

Tue, 31 Jan 2012 18:32:00 -0500

Courtesy of Frederick Peters, President of Warburg Realty

I had numerous phone conversations today with Warburg agents who are negotiating multi-million dollar deals (and a couple of multi-multi-million dollar deals.) In contemplating the strategies we discussed, I was struck by the uniqueness of the environment in which we New York City real estate agents are privileged to live. Three years after the nadir of the real estate crash and its attendant financial collapse, our high-end co-op market is healthy and vibrant, with multiple expressions of interest for many ultra expensive properties. And I am talking the co-op market, which by definition does not include foreign buyers. So this is (for the most part) home grown money.

Who are these buyers, and why are they acting this way? Let’s address part one of the question first, and let’s answer it backwards. Here’s who they are NOT: men and women with jobs at the big Wall Street firms. With bonus sizes plunging from last year, and cash compensation a negligible part of the bonuses, even the Wall Street hotshots are not getting paid anything resembling the fabulous sums which drove the markets in 2005, 2006, and 2007. We still see some private equity guys. And there is definitely a strong contingent of hedge funders - either the smart ones or the lucky ones, as so many of their brethren have gone out of business. We see some global manufacturers. We see real estate investors, and REIT owners. Actually, today’s high end buyers run the gamut of professions, EXCEPT that not so many of them work for large Wall Street firms.

As to why this market is so vibrant, I think there are several answers. First, good property is scarce. There is little new condominium inventory, and there are never too many large co-op apartments on the market. With local capital gains taxes at 27%, older people would often rather redecorate than move. So demand tends to exceed supply. Second, the local high end real estate market has recovered much if not all of its value over the past few years, bolstered in substantial part by the international money boosting condo sales. It looks increasingly attractive to home buyers exasperated by the unpredictable rapid cycling of the stock and bond markets. Real estate is, in the truest sense of the word, concrete.

And finally there is the sense of new beginning which always accompanies the purchase of a new home. As the economy slowly improves, those who can afford the luxury of change want to embody the return of (guarded) optimism with an investment in the future. New real estate always represents the possibility of new beginnings, of a clean slate. And who isn’t excited by that?

You can read more on www.warburgrealty.com/blog.

Live Like Tim Lincecum

Tue, 31 Jan 2012 17:01:00 -0500

Courtesy of TRI Coldwell Banker Previews International

TRI Coldwell Banker Previews International has listed the previous home of Tim Lincecum, starting pitcher for the San Francisco Giants. The 2,790 square foot listing in San Francisco is on the market for $1,795,000.

For an article about it on SocketSite, click here.
For an article on Curbed San Francisco by Sally Kuchar, click here.

Construction Complete on the Sanctuary: New Design Features Announced

Tue, 31 Jan 2012 13:28:00 -0500

Courtesy of Michelle Poitevin of Realogics Sotheby's International Realty

(January 19, 2012) SEATTLE — Construction on The Sanctuary—a 12-unit, residential conversion located within the former 1906 First Church of Christ, Scientist in Seattle’s Capitol Hill neighborhood—is now complete.

Originally built between 1906 and 1911 and designated an historic landmark by the City of Seattle in 1977, the completed project—now consisting of fee simple, concrete and steel town homes—offers a rare mix of intricate historic features, artisan craftsmanship and innovative modern design elements. The construction team was spearheaded by Belfor Property Restoration, Runberg and Associates, Robin Chell Design and The Justen Company.

A compelling example of adaptive reuse and historic preservation, redevelopment on the project initially began in 2007 but was stalled in 2010. An affiliate of San Diego-based Pathfinder Partners, LLC, acquired the construction note on July 7, 2011, and funded an additional $2 million to bring the project to its full potential. In readying the homes for sale, Resource Transition Consultants, LLC (RTC), the seller, responded to feedback from local real estate brokers, prospective homebuyers and other market experts.

“We made many improvements and are thrilled with how the individual homes and common areas turned out,” says Rob Nall, a principal of RTC. “The additional construction and restoration was worthwhile—we’ve optimized the final product and the pricing for positive market acceptance.”

In addition to changing the building use to residential with the City of Seattle, RTC worked through the Landmark Preservation Board to protect key architectural features while improving livability. For example, the century-old stained-glass windows now slide to the side, revealing new vision glass, which adds natural light, territorial views and fresh air to the unique residences.

“Our job is to complete construction, realign values and sell the homes at prevailing market rates,” adds Nall. “This is a unique scenario in which an inspiring product designed at the peak of the housing market may well sell at bottom-of-the-market prices.”

Despite its Classical Revival-style architecture, the former church now boasts modern interiors and technology, as well as high-rise construction quality within. Each home features soaring 30-foot-high ceilings, metalwork and cabinetry crafted by Seattle area artisans, polished concrete floors, re-purposed marble from the original building and top-of-the-line appliances and fixtures that include brands such as Wolf, Bertazzoni, Liebherr, Asko, and Kohler to name a few.

Ranging from four to six levels (including roof top terraces); the town homes are sized from 1,600 to more than 3,000-square-feet and will list from the low $500,000s to $1.1 million – about 45% below original asking prices, according to the listing brokers.

“Waiting paid off for patient homebuyers trying to time the market at The Sanctuary,” said Dean Jones, principal of Realogics Sotheby’s International Realty. “We’re offering a greatly enhanced yet highly affordable product by virtue of dramatically lowered purchase prices and historically low interest rates. And the landmark designation means significantly reduced property taxes for the next ten years.”

Two model homes will be opened this weekend for public previews from 11 a.m. to 5 p.m. The official sales debut is scheduled for January 28, 2012 when the sales office opens. More information can be found on the recently launched website at www.liveatsanctuary.com.

About Resource Transition Consultants, LLC.

RTC, headquartered in Edmonds, WA, was founded in 2008 by Robert Nall, Douglas Barnes and Kevin Hanchett to provide receivership services to lenders on financially distressed real estate transactions. The firm has been active in the successful disposition of numerous communities, in addition to distressed commercial and business assets. For more information, visit www.rtcreceivers.com.

About Realogics Sotheby's International Realty

Seattle-based Realogics Sotheby’s International Realty is a nationally-recognized, full-service real estate brokerage that specializes in new construction sales and marketing services for its developer and lender clientele. Representing high-profile multifamily communities in the Seattle area, the firm is a top selling residential brokerage in Seattle by dollar volume for multifamily, according to Trendgraphix. For more information, visit www.realogicssothebysrealty.com.

For high-resolution photography of the Sanctuary and additional property information, please contact Michelle Poitevin at 206.448.5752 or email Michelle@Realogics.com.

Rimontgó Principals Visit MIPIM Asia in Hong Kong

Mon, 30 Jan 2012 19:31:00 -0500

Courtesy of Rimontgó

Hong Kong was the focus of Asian real estate in November as sector decision makers and professionals from the region – and across the world – converged on the city during the MIPIM Asia convention. Rimontgó was represented by both its principals, José and Antonio Ribes Bas, an indication of how important this region is becoming in the international luxury property market.

“We don’t expect Asian buyers to replace European ones in our core markets of Valencia and the Costa Blanca,” said José Ribes, “but it is clear that Asia, and the Far East in particular, is becoming an increasingly important player in international luxury real estate.” Mr. Ribes emphasised that there are two currents presently magnifying the importance of this new market: “The first is the fact that countries like China have been experiencing rapid growth for some time now, and as a result the number of industrialists and businesspeople with sufficient means to invest in luxury real estate on a global scale has grown rapidly both in quantity and in terms of their acquisitive power.”

In addition, he cites the current downturn in the developed economies, where wealth growth has slowed and those with the means are for the time being more cautious than their counterparts in Asia and other booming parts of the world. “The global slowdown will temper growth in the newly emerging economies as well, but even so wealth is growing greatly here and those with it have the confidence to spend it. What’s more, they have the foresight to look beyond their own immediate geography and recognise the great investment opportunities that are available in large parts of the world today.”

During the event the Ribes brothers met with representatives of the Spanish consulate, the Sino-Spanish Chamber of Commerce and representatives of other institutions aimed at promoting trade and investment. “It was highly instructive,” said Antonio Ribes. “Asia is very much in tune with what is going on elsewhere in the world, and this awareness comes both from the public and the private sector.” Indeed, the bulk of the professional participants were property experts, developers and investors from China and the Far East, but the event also attracted fellow industry specialists from South East Asia, the Middle East, Europe and former Soviet republics in Central Asia.

Emerging markets for commercial RE investments

Though many were aimed at attracting investment and buyers for real estate projects within buoyant markets such as China, India and Azerbaijan, there was also a significant body of investors looking for opportunities in other parts of the world. “Since many of the best deals are currently to be had in more developed markets such as Europe and the US, this is where much of their attention is focused,” said Antonio.

“What we are finding is that in addition to investing in local commercial and real estate projects, an increasing number of successful entrepreneurs in countries like China, Korea, Vietnam, Singapore and India are also looking to expand their portfolio geographically to include especially commercial RE opportunities in Europe and America.” The latter includes office complexes, retail and entertainment facilities such as shopping malls, cinemas and theme parks, but also golf courses, resort hotels, marinas and wineries. “In addition there is an interest in land, both for future development and with a focus on timber, agricultural and mining resources.”

With this in mind Rimontgó will be looking to further develop its commercial division in the coming year to offer a more independently focused and specialised service to international clients that wish to avail themselves of the enticing investment opportunities now available. “Through our international networks we can offer serious investors not only a wide range of different product types but also in a broad range of countries including Spain, Italy, the UK and the USA,” says José Ribes, whose firm will be building on its existing expertise in commercial, retail, resort and vineyard investment consulting. “In an ever-changing market it is important to be aware of the latest trends, and to know how to respond to them. Our Asian trip confirmed our impressions about the potential of this growing market. We also made many valuable contacts there, but above all it has spawned an exciting new project that will act as a valuable complement to our existing activities and initiatives.”

Photos courtesy of MIPIM_World.

'Ilya’s Photography' Photographs for Italian Brands

Fri, 27 Jan 2012 13:05:00 -0500

Courtesy of Ilya Moshenskiy of Ilya’s Photography

I worked with exclusive clientele on this special project to showcase the structure of some of the best clothing fabric on the planet. I took product photos of luxury Italian clothing brands including Kiton, Canali, Isaia and Ermenegildo Zegna. On the morning of December 12th at 6:30 am I grabbed a cup of coffee and started to setup my studio. This type of project required me to set up the lighting in an entirely different way so I can capture the smallest of details in the fine fabric. I set up my Profoto light boxes along with Elinchrom fiber optics lighting and decided to go with my Canon 5D mark II with a Tilt-Shift 90mm lens. I got a great feel for these handmade Italian garments which allowed me to really show the attention to detail and focus on quality that is put into each garment. Like president Massimo Bizzocchi of Kiton said "You got to keep the fiber alive." I'm not sure how many cups of coffee I had by the end of the day to finish the project. It was truly a pleasurable experience using my craft to represent such fine garments on print.

Kiton
Canali
Isaia
Ermenegildo Zegna

Negotiation Begins at Home

Thu, 26 Jan 2012 12:22:00 -0500

Courtesy of Frederick Peters, President of Warburg Realty

Life is a negotiation. Whether it is with our partner, our children, our extended families, or our co-workers, we are engaged in the give and take of negotiation every day. But the degree to which our personalities and engagement styles inform HOW we negotiate is something we rarely consider. Take me, for example. I have a big personality and a lot of opinions, but at heart I am much more bark than bite. I want everyone to be happy. I want consensus. So I have to be on guard all the time in my business life lest this desire to make people happy compel me to give away too much too soon.

Over the years I have both observed and participated in thousands of sales and rental negotiations. Here are a few things that I have learned about how personality shapes negotiation:

· You must figure out your own style and learn both how to use it and how to control it. For me, that has meant harnessing my enthusiasm in order to generate excitement and good will while at the same time knowing that much of the time I just need to shut up.

· In the same way, you have to be aware of the negotiating style of your customer or client (or broker, or partner, or boss, or mother). The CEO, who is always in a hurry and views every decision from 30,000 feet, needs accurate facts and an overview NOW. He will make a quick decision if you are on hand with what he needs. The CFO, on the other hand, may need to come back and measure everything a few times and will be extremely deliberate. He probably will NOT make a quick decision. And the scorched earth negotiator needs to be met, calmly, with the countervailing facts.

· Silence is golden. Biting your tongue will both stop you from giving too much away and at the same time create an environment in which your counterpart, for the same reason, may be tempted to over-speak. One cardinal rule of negotiation is that less is more when it comes to talking.

· If your clients or customers are a couple, watch THEIR interaction carefully. It will be up to you to understand how they make decisions, and it is rarely as straightforward as it appears at first. The talky one with the big opinions (in my marriage, ME!) is not necessarily the one whose desires will carry the day. Once again, silence is golden. If you stay quiet and observe, you can develop a perception of their negotiating style as a couple which will help you sort their priorities and make the right deal.

· It is NEVER strategic to lose your cool. Your frustration is your problem. Buyers and sellers can easily become emotionally involved in the transaction, so as agents it is our job not to let those emotions hijack the interaction. The best decisions are always made by cool heads. Maintaining a friendly professional demeanor will create good will no matter what your part in the deal. Having a tantrum will do the opposite. It is always your choice.

Managing a negotiation never involves just the price, the closing date, the terms. Managing a negotiation involves addressing all the subtle ways in which each participant either helps or hinders the issues and personalities to coalesce into a successful transaction. And the more conscious we all are of the psychological and stylistic issues which shape our responses, the more effective we are likely to be.

You can read more on www.warburgrealty.com/blog.

The Tobin Clark Estate: Interior Designer, Syrie Maugham’s Finest Work!

Mon, 23 Jan 2012 13:54:00 -0500

Courtesy of Jim Walberg of Keller Williams Realty

The Tobin Clark Estate was completed in 1931, designed by the re-nown architect, David Adler. Upon completion, the Estate was filled with interior decor by Syrie Maugham (wife of Somerset Maugham), paintings by Van Dyke and Sir Joshua Reynolds, Queen Anne paneling, eighteenth century Chinese wall coverings, a rare Dubois writing table and over two hundred other items sent from England and the Continent were selected by Syrie Maugham. Celia Tobin Clark learned about Syrie’s legendary interior decorating from a dear friend in Chicago. Syrie is credited for designing the first all-white room. At the Estate, The Music Room, is a perfect example of her work using ‘white’ as the primary color.

At the Estate, Syrie’s crowning glory were the Music Room and the Library. The Music Room, which is 55 feet long and is crowned by 15 foot ceilings with exquisite three dimensional decorations, features antique parquet-de-Versailles floorings, triple gold-gilt moldings, matching fireplaces, Bay Windows and French doors leading to the Grand Terrace was an example of her extraordinary work. You will notice that it has all shades of white.

The Library is where she brought in dramatic colors of green. As you walk into The Library you discover pine carving attributed to Grinling Gibbons, woodcarver to St. Paul’s Cathedral under Sir Christopher Wren, and matching eighteenth-century pine bookcases. This room is featured in Helen Comstock’s “100 Most Beautiful Rooms in America.” And, as you peruse the book you will find several of the rooms listed were designed by Syrie Maugham.

Born in London in 1879, Syrie opened a shop on Baker Street in 1922. As her reputation exploded, she took on interior decorating projects in Palm Beach and California. The expansion of her design business caused her to open shops in Chicago and New York. The prices for her pieces were high. Victor Afia is credited for say, “She knew what she could get away with. It wasn’t the stuff so much as her talent she was charging for.” And, Celia Tobin Clark spent a fortunate over the next several years with Syrie as her guide. In the 1930’s Syrie would say to Celia, “If you don’t have $10,000 to spend today don’t bother.”

Furniture was Syrie’s specialty. As you wander through the Tobin Clark Estate, your breath will be taken away with the French provincial antiques and accessories from all over the Continent, plus her own designs. Each of them receiving the ‘Syrie treatment’. They were pickled or stripped, painted, or finished with a secret craquelure technique. “Cut it down and paint it white,” she would order her craftsmen.

The extraordinary rooms she designed and decorated influenced almost every interior designer, the most notable being – de Wolfe, Jean-Michel Frank and Frances Elkins. However, after Syrie closed her shop in New York in 1932, it was Rose Cumming who offered the finest tribute from them all. It was suggested that Rose take on filling the white furniture gap left behind by Syrie’s exit. Rose said, “No, white was always Syrie’s.

Syrie Maugham’s interior design has lived on for more than sixty years at the Tobin Clark Estate. The Hillsborough Mansion with the unassuming name “House-on-Hill”, is still regarded as one of the most spectacular private residences ever created, and one that is certainly without peer in its fine antique English Cotswold style. Once in a lifetime one is able to acquire a true architectural masterpiece. That opportunity has now arrived.

For a private viewing of this 35,000 square foot mansion nestled on 6-acres, and host to Presidents and World Leaders, CONTACT US TODAY. Only fully qualified buyers need to inquire. The Estate is offered for sale at $29,000,000. Until next time…Jim Walberg.

Listing representation of the Tobin Clark Estate has been awarded to a consortium of Brokerages, each chosen for their unique expertise and experience: Keller Williams Realty International, Today Sotheby’s International Realty, Engel & Volkers, and Alain Pinel Realtors.