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