by Roberta Murphy

We’ve written about luxury closets in the past, but these days some are spending up  to $500,000 for a luxe master closet that might include a champagne refrigerator, sound system, glass-enclosed display cabinets, wet bar or even a breakfast area.

Gone are the simpler days of a luxurious dressing room. The master closet area has become a destination room.

The Wall Street Journal reported yesterday on four luxurious closet areas, ranging in size from a modest 600 square feet to a dressing suite with 1300 square feet.  What are the trends with luxury closets?

Luxury home owners today want closets that invite lounging–with prized clothing and accessories on display behind lighted display cabinets. Materials used may include exotic woods, crystal chandeliers and windows that allow for natural lighting. These dressing lounges might also have a sound system, television, jewelry vaults, exercise equipment and even an office nook. Clothing is easily compartmentalized, with large and organized spaces for shoes, hanging clothes, accessory storage and vaults for jewelry and valuables.

There will also likely be a secure safe of some sort for storage of jewelry and valuables. And frequently, these safes are cleverly disguised. Another security feature might be a security camera to protect against theft and pilferage.

These master dressing areas have become trophy rooms of sorts–and are a key selling feature in luxury homes we show in our own San Diego real estate practice. Frequently, properties are crossed off luxury home buyers’ lists if  a master closet is not large enough or appointed to their standards. Rejection might also occur if there are not equally and finely appointed dual closets for couples.

What are your demands when it comes to closets? Please share your list or photos!

For additional reading:

 The Luxurious Closet
The Luxury Pantry

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When showing homes to buyers in San Diego, one of the first doors that is opened following the front door is…the pantry door.

Sometimes the “pantry” is nothing more than a large cabinet that may (or may not) have revolving and pull-out shelves. Hopefully, and regardless of size, the boxes of cereal, canned goods and other kitchen staples are stacked in an orderly fashion.

But the ultimate pantry might look like the one pictured to the left, courtesy of The Closet Works. I love the revolving shelves, the orderliness and spaciousness of this kitchen space.  It is also light and bright–and easy to see what foods and supplies are on hand.

On the other hand, if you are on a budget or have a smaller pantry you might want to try imaginative lighting, glass jars for  storing foods, and possibly a plant or two. With good lighting, you might also have a small herb garden.  (See photo at right). You want potential buyers to have a WOW moment when they open that door. And in the meantime, it will be something you can enjoy.

Looking for Pantry Ideas?

If at all possible, do everything you can to avoid having a messy or boring pantry. Make sure it is well lit and visit sites like Houzz or Pinterest to glean some creative ideas. This would also be a good time to prune out expired or items you’ll not be using in the next six months.  If there is room, you might also want to add a small and colorful area rug.

Another favorite for buyers are frosted glass doors leading into the pantry. If that isn’t in the plan, make sure the door and all shelves are  clean and freshly painted if needed.

Do you have any ideas you might share?

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Dear friends returned with big smiles and fat packages after a trip to Las Vegas prior to Christmas. Ulf and Andrea walked into the Saks Fifth Avenue store on Las Vegas Boulevard–and encountered rack after rack of clothing discounted up to 80 percent off.

These were sales never seen in the weeks before Christmas, and they happily bagged up their luxury bargains and returned to Southern California.

They are also Realtors, and it’s some comfort that the luxury home market is suffering a far less precipitous decline compared to luxury retailers, but that’s probably because people stay in their homes far longer than they do a $500 pair of jeans or Jimmy Choo heels.

And as today’s San Diego Union Tribune reports, Neiman Marcus saw its December same-store sales fall 27.5 percent, while sales at Nordstrom, Saks and Abercrombie & Fitch also dropped into the double digits. Even Chanel at rue Cambon is shedding 200 jobs, or almost 10 percent of its work force in a move that should send shudders down the backs of luxury retailers and other haute couture houses.

The Luxury Consumption Index shows a chilly decline of 41.7 percent year-over-year in a December survey of 1200 consumers earning an average of $200,000 per year. Some of the drop is attributable to investment and income declines, but much also comes from a drastic attitude shift from conspicuous consumption to one of fear and conservative saving.

Buying attitudes may be shifting toward hiding money under the proverbial mattress, but I am inclined to sharpen the pencil and consider once again Baron Rothschild’s advice to “buy when blood is running in the streets.

Blue chip luxury real estate and securities are soooo attractive covered in red–at least for buyers.

The post Luxury Buyers Digging in Their Heels? appeared first on Luxury Home Digest.

Who are these young and ultra-affluent buyers of homes in Rancho Santa Fe, Palm Beach, La Jolla, Aspen and Manhattan?

Robert Frank, in his best-seller Richistan, calls them instapreneurs (didn’t he coin the term?).

These are the new titans in technologies, who have benefited from a rise in financial speculation and governments that support free trade and wealth.

Instapreneurs are not plodders when it comes to accumulating wealth. They don’t develop companies to last for family generation; rather, they may launch several companies over their career life spans. And the goal for each venture is a lucrative “exit strategy” that will create the fattest windfall possible.

What are these luxury buyers seeking when searching for their trophy home?

1. They are specific in their demands as to age of property, views, room volume, luxury closets, privacy, and entertaining areas.

2. Instapreneurs often wish to be near prestigious country clubs, where they can golf, play tennis and entertain business elite.

3. In San Diego, many of these nouveau uber-wealthy demand ocean frontage, ocean noise–and silent streets. Or the highest penthouse in downtown San Diego. The want what is rare, what is singular.

4. Instapreneurs often have children, and are concerned about the quality of nearby and private schools. How the home works for the kids can be of keen importance. Instaprenerual parents want safety, space and room for kiddie galas.

5. These luxury home buyers often have special room requests, such as a library, multiple offices, servant quarters, guest houses, snoring rooms, home gyms, massage rooms, a conservatory or even a panic room.

6. These busy people often demand to be not far from a major airport because of frequent travel demands and the desire to minimize time spent away from families.

We enjoy working with these interesting folk, not just because we enjoy finding perfect property fits, but also because of the stories we get to hear. Some have been scientists, some movers and shakers in technology, and some who just had the courage to pour everything they had into an idea whose time had come.

They all inspire and the world is a better place because of these producers.

The post Nouveau Luxury Home Buyers: Instapreneurs appeared first on Luxury Home Digest.

Real estate pricing has become a minefield…

particularly for homebuyers and homesellers in volatile markets such as California, Nevada, Arizona and other former hot spots. As real estate markets shift, the old comparable sales model for offers and pricing may no longer be quite so valid–and could in fact be dangerous.

If sellers overprice their properties–based on prior sales that may have occurred some months ago–they run the risk of having their homes go unsold. On the other hand, if buyers use the same CMA tools to arrive at pricing and an offer, they run the risk of overpaying.

What I am beginning to see is more verbal interaction between agents. We are verbally sharing information about properties and sales before that data ever hits the tax records. This is information we can use to help guide our clients through these dangerous times. One who needs to sell a property cannot afford to deal with faulty dated information or an uninformed agent. To do so could result in a home that doesn’t sell and languishes on the market for months. Using the same outdated information, buyers run similar risks of potentially overpaying for a property–or not knowing if a home is fairly priced in today’s market.

Several thoughts:

1. Real estate agents need to be consultative in their approach with clients, and closely in touch with one another. As real estate professionals, we need to share with each other what is happening in area markets, in local markets. in neighborhood markets. This is information our clients need.

2. Online valuation tools are perhaps even less valid than they were six months ago. Zillow does a good job in reporting history via public records, but more current information is demanded. Old information can be deadly–but that is all they have to report.

3. I am finding buyers more ready to purchase if they trust their Realtor is digging out the information that is truly needed to craft an offer. More agents are calling each other about pending sales, seeking pricing guidance for both buyers and sellers. This is good and serves our clients well.

Real Estate 2.0 may be all about online interactivity between clients, agents, lenders, stagers and other real estate service providers, but some old school tools come in handy as well. Key among those are gossip and whispers. If a seller in a neighborhood is capitulating in pricing, that is important information for both buying and selling clients. Tax records are useless in this circumstance, and so are the online valuation tools that use them.

It is difficult for all when real estate markets go about their periodic shifts. These are the times when knowledge, experience and sure footing are required of the real estate professional. And by the time the valuation software tools catch onto what is happening, the markets may be quietly shifting again.

We are already seeing signs of this in our San Diego real estate market. It is happening elsewhere as well.

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