Luxury Real Estate

Courtesy of Judy Sweetland of Private Trade Winds

Private Trade Winds is on a "Royal" roll between last month's addition of our 5-story, 3-bedroom townhouse in Regents Park, London, and now this month's 3-bedroom showstopper in the Seychelles - the exclusive locale where Prince William and Kate Middleton, now called The Duke and Duchess of Cambridge enjoyed their honeymoon escape. One of our clients jokingly asked if the addition of the two villas was intentionally timed to coincide with the marriage and honeymoon of the Royal Couple, but the fact is we just seem to have a knack for predicting the next 5-star destination.

The Seychelles, an archipelago of 115 islands in the Indian Ocean is a most spectacular getaway for those seeking romance, privacy and unprecedented beauty. Think “champagne wishes and caviar dreams” and you won’t be remotely disappointed.

Seeking out a private island is no small task and should be left to the professionals for an experience custom tailored to the likes of each traveler. While the rare sensual beauty of the islands has been known to lure lovers from around the world, most are family-friendly as well, and a memorable experience can be made for those ranging in age from 2 to 102.

Mahe, with its lush botanical gardens is also home to Intendence, a half mile stretch of the most powdery white sanded beach in all the Indian Ocean. It is also the transportation hub for island-hops and day excursions to neighboring islands, and all other islands within Seychelles.

Courtesy of Frederick Peters, President of Warburg Realty

Sitting on the plane flying home from London, I am thinking about the ways the British system of selling real estate differs from ours. I met last week with a firm of high end estate agents, who do a significant amount of business in both rentals (or “lettings” as they are known in London) and sales. More than anything else, I am fascinated by the way their system apparently disadvantages buyers AND sellers, because their low commission rates lead to a lack of co-brokerage. (Of course the same thing, minus the low commission rates, can be said about much of Brooklyn.)

In New York City, all Real Estate Board members are required to co-broke their listings with all other Board members within 24 hours of receiving a listing. This leads to an orderly marketplace. In London, by contrast, co-brokerage is voluntary. What that means is that, more often than not, an exclusive agent who has a hot property will keep it within their firm so as not to be required to share the 2% or 2.5% commission. So, as a buyer, unless you happen to be in touch with an agent from that firm, you do not see the listing. Dual agency is not permitted, so if you go directly to the seller’s agent you have no buyer’s representation in your negotiation. And if you want a buyer’s agent, more often than not you have to pay them yourself. Unless you are willing to pay them yourself, or contact the listing agent directly, you simply do not have access to the property.

To me this system seems like the height of inefficiency. The seller has no guarantee that he is receiving the highest and best price for his property, since it is likely that many in the pool of appropriate buyers may never learn about the listing (of course the Internet has alleviated this problem somewhat). Similarly, the buyers cannot select a trusted agent and count on that agent to show them everything, unless those buyers are prepared to pay their agent a fee. And even then, exclusive agents often prefer not to have to deal with another real estate professional.

Our system may not be perfect, but in it I believe everyone wins. Brokers on BOTH sides of the transaction are fairly compensated for making sure their clients, be they buyers or sellers, get the broadest possible market exposure with expert professional advice before making a decision.

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

Courtesy of: Greg Moesser of Rodeo Realty

Following an International Agent Around the World

By Katharine Angelo of Bel Air Magazine

This international agent is not a gun-toting 007; instead he’s a real-estate agent that specializes in worldwide luxury properties. The name is not Bond, James Bond, but Moesser, Greg Moesser, Vice President of the Private Estates division of Rodeo Realty in Beverly Hills, and he’s a man that’s doing something different. Today almost every real-estate company advertises international marketing, but many companies define that as just having a few affiliated international property websites. Agent Greg Moesser’s business model is much more hands-on, bringing on-the-spot knowledge to the worldwide properties he represents. In a recent conversation, Greg revealed his undercover secrets to taking his luxury real-estate business to a global level.

BAM: How long have you specialized in international marketing?

GREG MOESSER: It began about seven years ago when I had two inquiries from my website, one was from a European buyer and the other was a vacation rental request from the Middle East. After specializing in the luxury market domestically, I found that many clients, instead of just moving locally, are often moving between global cosmopolitan cities. The number of foreign buyers in our market has also risen steadily in the last few years. This is even more true today with the weaker dollar and the recently devalued world property markets, such as Spain, Ireland and Dubai, just to name a few. Now I have inquires every month from all over the world on my website www.LAClassicEstates.com.

BAM: Why do you think you have been so successful in this exclusive niche?

GM: The difference is personal networking and connections. Agents and buyers want to work with someone they know and trust. You can’t achieve that by just marketing a property on a bunch of global websites. When an agent from New York, San Francisco, London, Dubai or Paris has a client for Los Angeles, they will call me first, because I have an established personal relationship. My approach takes a lot more effort and planning, but it gets results. It’s also a great advantage to my seller clients, as they get the benefit of both an extensive local and international market representation.

BAM: Where have you been already this year?

GM: In January I attended the International Luxury Real Estate summit conference in Rome, Italy. This is a worldwide group of top agents, owners and presidents of leading firms that meet annually to discuss global property trends and strategies to market luxury properties. In March I attended the MIPIM conference in Cannes, France. The agenda included meetings with top agents, buyers and investors, foreign ministers and even the American ambassador. I was also in Punta Del Estate, Uruguay performing some property research for a client.

BAM:What is the Private Estates division?

GM: The Private Estates division at Rodeo Realty specializes in representing multi million-dollar properties in Southern California’s premier luxury markets. Our specialists are able to provide the highest level of expertise, professionalism, personal attention and discretion that is simply not available at large companies or franchises. Our international database is second to none, including our Luxury Real Estate affiliation with luxury agent specialists in over 60 countries worldwide.

BAM: What’s currently your most interesting property?

GM: I just did a price a evaluation on an extraordinary pre-war, French-style estate in Hancock Park that was featured in one of the first issues of Architectural Digest and should be coming on the market soon. I’m also excited about my latest international project. I’ve been selected as the exclusive U.S. agent for the Residenza Del Lago Azure in Lake Como, Italy. This is a rare new luxury development of 28 villas and apartments and should be completed by early next year.

Please click here to view the original article

Courtesy of: Ruth Kruger of Worldwide Exclusive Properties

It's amazing when my work takes me to great places like Rome and Monaco, makes me joyous that a typical day for me is not in a typical office at all!

The first leg of my latest journey was for a conference hosted by LuxuryRealEstate.com (Check out my LuxuryRealEstate.com page) and where I had a wonderful time with my new friends.

After the Rome journey, I hopped on the train to Venice where I enjoyed spending more time with those from the conference on their way to ski the Dolomites. I unfortunately had to go to work on the French Riviera…

While staying in Monaco, I spent the days touring exclusive villas from Monaco to Saint Tropez. It was truly wonderful work.

Even when my work brings me far away, I am once again reminded that there is always a local connection. Just Friday I had a lovely conversation with commercial retailers looking for retail space in downtown Aspen. Currently they have an outlet in Harrods of London and in Monaco and are looking for the perfect Aspen location. In addition to the commercial requirement, they also have 2 villas they would like to sell an exclusive gated community in Monaco. Keep your eyes on www.Worldwideaspen.com site for 2 new listings with views of the Mediterranean and amenities from heaven!

Please let me know when you would like me to return to find your dream French home.

Frederick Peters of Warburg Realty

I assured my daughter that she and her husband would not have much trouble finding a good place to buy at a good price when they moved to London last month. London, I figured, was like New York: beginning to rebound but still basically a buyer’s market. I was wrong. The flat she found, in a great area between the two big parks in Battersea, seems to be the hottest ticket in town. Everything she has seen and liked has already sold, but this one has six offers in the eight days since it has been on the market and is now going to sealed bids.

So I wondered, am I misperceiving my own market as well? Is it even more active than I believed? Maybe so. The evidence is quite solid that when properties are well priced and well located, they are receiving a lot of interest. And a number of bids. And sometimes higher bids after an offer is accepted.

Now all this interest is dependent on one thing: price. The most desirable property, in the most desirable location, will still not sell if it isn’t priced right. But if it IS priced right, it can move fast. A lot of buyers have moved back into the market who want to take advantage of lower prices and low interest rates. Hence eight buyers for the well located flat in Battersea, or on West End, or in the West Village. Apparently it’s an international phenomenon.

By Jim Walberg of Caribbean Islands Realty

I was invited to speak at the Luxury Real Estate International Conference in Paris this month. London was my first stop.

We are spoiled with 85F degree weather in the Caribbean almost 365 days a year! Europe in January is COLD. The Who’s Who In Luxury Real Estate’s 4^th Annual International Conference was this month in Paris, and I was invited to be one of the presenters. Before the conference I traveled to London for a few days visiting one of the ten families that make up my “European family”. It is amazing to step into the pace of Europe with London as the first stop. It is one fast paced city!

My time in London was generally walking this beautiful city - from Buckingham Palace and Hyde Park, to the museums and art galleries. Another reason why I was in London was to meet with one of the partners of Deloitte - an international consulting firm for the top corporations of the world. My friend is in charge of their international real estate division. My meeting was to gather information regarding his view of what is predicted for Caribbean real estate markets in the midst of the global financial meltdown. It was a very insightful hour with him.

What we are seeing the past six months in Caribbean real estate sales is an abrupt slow down in sales that require a mortgage. And, the European buyers have almost disappeared. If you recall the Russians started showing up last year in the Caribbean and they are no longer visible. The real estate product that is predicted to thrive is the Fractional Deeded Ownerships, and the Residence Club products. The HOT market is expected to continue in the Dominican Republic. It was very useful to have this conversation given that we have already noticed these trends.

No matter what the economic conditions in the world we will still figure out a way to make lemonade out of lemons regarding real estate sales. Until my next report…fair winds.

By Jean-Yves Piton

While luxury properties are part of the conspicuous consumption group, unlike several other goods, their proposed premium prices are not a function of the premium brands they are attached to. Instead, factors such as location, amenities, space, architecture and historical value justify their premium prices around the world.

So, what type of luxury homes would you acquire in major metropolitan cites worldwide for $1 million USD in 2008?

According to “What $1 Million Buys in Homes Worldwide” by Matt Woosley, Friday, January 11, 2008, provided by Forbes.com, in New York, you can expect a 647-square-foot Turtle Bay condo with 45-square-foot balcony, white oak floors, and 11-and-a-half-foot ceilings. In London, you can purchase a one-bedroom, one-bathroom flat in Primrose Gardens. In Hong Kong, you can acquire a three-bedroom, 825-square-foot apartment in a high-rise between the residential areas of Aberdeen and Pokfulam.

While $1 million USD grants an invitation to the millionaire's club, it clearly does not buy the most spacious and astonishing luxury property in most top metropolitan cities worldwide in 2008. Based on the figures discussed earlier, such properties might just work as a pied-a-terre during a business trip or a short vacation.



This also explains why more buyers are currently opting for luxury fractional ownership, the trend ahead. This being said, keep in mind that this rapidly increasing trend applies to everything luxury in 2008 (from designer handbags to the finest properties).

So, how do you market a luxury fractional property? Evidently, it is easy to assume the same way you would promote a luxurious property. Partly due to the traditional premium variables like location, amenities, space, architecture and historical value. Also, though a fractional ownership, you could insist on the long-term investment, just as for any other luxurious property.

Nevertheless, there is another element, which must not be omitted to successfully advertise a luxury fractional property. That is promoting the dream to potential buyers and investors. There must be a fine balance of both emotional and rational communications to connect potential buyers to the properties through careful advertising. Where the rational communication focuses on owning a luxurious property (one of a kind), promoting the dream (the emotional communication) helps foster a sense of emotional connection (a state of being and/or sense of being).


Editor’s Note:
Jean-Yves Piton is the Global Services Membership Manager for LuxuryRealEstate.com. He assists Bente Madtsen, the Director of Global Services, in expanding the LuxuryRealEstate.com brand into even more countries around the world. Fractional ownership is a great tool for vacationers and other people looking for flexibility and great investment opportunities. I actually wrote an editorial on Private Residence Clubs, also known as fractionals, in the spring 2008 issue of LuxuryRealEstate.com Magazine. Check it out! The photos of the front and back of the “$1 million” bill are the copyright of Simon Davison.