Who's Buying Your Ultra Luxury Real Estate?
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Even in the realm of multi-million dollar properties, there is separation between luxury, and ultra luxury. Let's take a look at who and how people pursue these properties.
First, it can be said that it is not hard to find a single family home in Orange County that is around the Million dollar mark, in fact it is getting more common. I have clients who may have owned a home for the past several years that is now worth over a million dollars. They are now looking to sell that home, and use the proceeds from the equity to jump into the luxury market. I'm just going to say that right around the 2 Million dollar mark, is really where I start to see the higher quality on finishings, larger floor plans, and highly desired locations. Of course there exceptions to all of this, but it is useful to get an idea of the stratifications of quality and location of property available. In the range of high 2 Million dollar housing in Orange County, and past the threshold of 3 million dollars, you start to see properties that have a near-premium location, premium finishings, and a variety of floorplan and square footage. By near-premium location, I mean very close to the coast, or perhaps some highly desired area.
From the 3 to 5 million dollar range, there are various trade-offs that work within the near-premium location, premium finishings, higher square footage. Above 5 million, you can expect exquisite quality properties, that have fewer qualified buyers.
The next stratus is the ultra-luxury, which I really define as being in the 10 Million Dollar plus range. This range starts to get the best mix of premium location, premium finishings, garage square footage that dwarfs the homes in the million dollar range, imported and rare features can be found in these properties. It getting pretty common to start quoting prices for oceanfront listings in Laguna and Newport and the reaction from the luxury buyers is similar when they run across these stellar listings. It goes something like, "That's a BIG number." These properties are targeted toward that one in a million buyer. The chances that a buyer will lock into one of these properties is most likely based on ONE big factor, like a premium beach front location, or the need for a 10 car garage.
Beyond the ultra-luxury is yet another higher price stratus, that really is 20 million +
These properties really only have 1 buyer for them. It is the luxury realtor's job to locate that 1 buyer. These properties require extremely aggressive international marketing campaigns that are best translated into several languages and marketed worldwide. This is why it is critical for high-end agents to think in terms of language mastery and spend time on foreign language skills. Touring this property via helicopter is a great way to get the big picture on these listings.
Who is buying this real estate? I'm not going to talk about who my clients are, but I'll just throw out some career paths so that if you want to start shopping about luxury real estate, you can see if this matches where you see yourself:
Celebrities
Professional Athletes
Real Estate Developers (Commercial and Residential Builders)
Hedge Fund Managers
CEOs (Technology, Bio-Tech, and dozens of other sectors)
International Heads of State
Entrepreneurs, Ultra-Successful Business Owners
Even in the realm of multi-million dollar properties, there is separation between luxury, and ultra luxury. Let's take a look at who and how people pursue these properties.
First, it can be said that it is not hard to find a single family home in Orange County that is around the Million dollar mark, in fact it is getting more common. I have clients who may have owned a home for the past several years that is now worth over a million dollars. They are now looking to sell that home, and use the proceeds from the equity to jump into the luxury market. I'm just going to say that right around the 2 Million dollar mark, is really where I start to see the higher quality on finishings, larger floor plans, and highly desired locations. Of course there exceptions to all of this, but it is useful to get an idea of the stratifications of quality and location of property available. In the range of high 2 Million dollar housing in Orange County, and past the threshold of 3 million dollars, you start to see properties that have a near-premium location, premium finishings, and a variety of floorplan and square footage. By near-premium location, I mean very close to the coast, or perhaps some highly desired area.
From the 3 to 5 million dollar range, there are various trade-offs that work within the near-premium location, premium finishings, higher square footage. Above 5 million, you can expect exquisite quality properties, that have fewer qualified buyers.
The next stratus is the ultra-luxury, which I really define as being in the 10 Million Dollar plus range. This range starts to get the best mix of premium location, premium finishings, garage square footage that dwarfs the homes in the million dollar range, imported and rare features can be found in these properties. It getting pretty common to start quoting prices for oceanfront listings in Laguna and Newport and the reaction from the luxury buyers is similar when they run across these stellar listings. It goes something like, "That's a BIG number." These properties are targeted toward that one in a million buyer. The chances that a buyer will lock into one of these properties is most likely based on ONE big factor, like a premium beach front location, or the need for a 10 car garage.
Beyond the ultra-luxury is yet another higher price stratus, that really is 20 million +
These properties really only have 1 buyer for them. It is the luxury realtor's job to locate that 1 buyer. These properties require extremely aggressive international marketing campaigns that are best translated into several languages and marketed worldwide. This is why it is critical for high-end agents to think in terms of language mastery and spend time on foreign language skills. Touring this property via helicopter is a great way to get the big picture on these listings.
Who is buying this real estate? I'm not going to talk about who my clients are, but I'll just throw out some career paths so that if you want to start shopping about luxury real estate, you can see if this matches where you see yourself:
Celebrities
Professional Athletes
Real Estate Developers (Commercial and Residential Builders)
Hedge Fund Managers
CEOs (Technology, Bio-Tech, and dozens of other sectors)
International Heads of State
Entrepreneurs, Ultra-Successful Business Owners
I need to move here!!!
Posted by
Anthony Longo |
11:22 AM