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.

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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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