The post It’s a Buyers Market for Luxury Homes appeared first on Luxury Home Digest.

There’s no doubt that uber-wealthy Russians love luxurious homes–and are willing to pay billions of roubles for well-placed mansions, townhomes and luxurious estates.

In Moscow, where luxury buyers are enriched by petrodollars and enthused by strong consumer confidence, a young and wealthy businessman recently paid 2.5 billion roubles ($99 million) for a Moscow town home near the Kremlin. Setting a new Moscow record, this seven-story apartment boasts 1300 square meters of undisclosed luxury and sits near the Kursk railway station.
Russian luxury home buyers, though, invest without borders.

Donald Trump’s Palm Beach estate, was originally listed at $125 million, but Dmitry Rybolovlev, one of Russia’s wealthiest businessmen, closed on the estate at $95 million. Forbes, by the way, pegs Ryobovlev at #59 with an approximate net worth of $12.8 billion on its list of world billionaires. The fate of Trump’s former mansion? It is reported that Dmitry Rybolovlev intends to tear it down and build another.

Another Russian waterfront buy recently occurred on Britain’s ultra-exclusive Sandbanks Peninsula. There, an unnamed Russian businessman paid almost $9 million for a 5-year-old Sandbanks mansion that he, too, intends to tear down. Replacing the existing home will be an ultra-contemporary glass-fronted home–with a helipad on the beach.

Sandbanks, by the way, is listed as the fourth most expensive place in the world for real estate.

I can’t help but wonder if any of these Russian real estate investors might be interested in some of San Diego’s prime real estate. There is an exquisite Del Mar estate on 5.5 acres pf oceanfront property priced at just $76 million–or 1,952,363,937.376 Russian Roubles.

And of course, if an investor should be interested in this wonderful investment opportunity, or any others for that matter, please feel free to give me a call at either 877-818-8197 or 760-402-9101.

HT:
Moscow super-rich pour millions into luxury homes | Oddly Enough | Reuters

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Insuring luxury homes can be a real challenge, especially when trying to calculate replacement value for things like architectural artifacts, beloved creaking stairs or even elephant hide wallpaper.

Luxury home insurance wasn’t of that much interest to me–until I read of an appraiser who tried to figure out the replacement value of elephant skin wall coverings in a Seattle manse. That appraiser, James King with the Chubb Group, makes it a practice to thoroughly investigate the luxe and unusual features in Chubb’s insured luxury homes to make sure a realistic replacement value can be assessed.

And sometimes that challenge requires more than a little research.

In the case of the elephant hide wall coverings, King was unable to determine replacement value, especially since the wall covering had been installed at the turn of the century, before elephant hunting restrictions were in existence.

His solution?

Value the replacement as leather wallpaper, a very, very expensive treatment and alternative.

After reading this story, I decided to call the Chubb Insurance Group directly to discover other challenges and solutions involved in insuring luxury homes. Mark Schussell, Chubb Vice President and Public Relations Manager, was kind enough to take my call–and patient enough to answer my many questions.

For starters, insuring luxury homes in the top market tier can be a tricky business because these homes boast not only fine luxury features and extraordinary craftsmanship, but are often finished with rare antique materials.

If a home has old stained glass windows, roof tiles from an antique Tuscan farmhouse, and 100-year-old carved wooden pillars, it might be difficult to settle with a normal insurance company in the event of a loss.

Drive-by appraisals and typical assessments just wouldnt work.

Insuring these properties at replacement value requires a finely-tune appraisal and an insurance company that understands this market. And though several companies work in this specialty, the Chubb Group of Insurance Companies was reported to be insuring 70 percent of the 400 wealthiest people on the Forbes magazine list.

Chubb’s Mark Schussel was more modest, estimating that the number would be at least half of the Forbes 400. Either way, it is an impressive market domination.

It is important for the luxury home to be insured at full replacement value, especially when fine craftsmanship and materials have been used in constructing or improving the home. Schussel said that when Chubb takes on the task of restoring the home to its original condition, they take the task very, very seriously. Restoration could involve flying plasterers in from Ireland to restore a mansionin San Diego or an estate in Connecticut.

And if special Old World tools are needed to complete the job and they are unavailable elsewhere, Chubb will generously pay to have the tools made.

The basis for determining exactly what needs to be replaced or restored within a luxury home in the event of a disaster begins with the initial appraisal. That is where Chubb stands above the rest.

Their experts take extensive photos both inside and out to create a detailed visual record of the home and its surroundings. The appraiser will take measurements, study all elements of the home, and prepare an extensive report outlining all features of the home, down to molding and landscape details. Then, should a calamity occur, there will be a complete record of what needs to be replaced. While assessing the home, the appraiser will also point out things the homeowner may wish to do to reduce the potential for loss.

When one of Chubbs 200 highly-trained appraiser is going through the home to be insured, he or she will additionally point out personal effects art and furnishings that might require separate professional appraisals and insurance. If the client wishes, Chubb will provide the needed separate expert appraisal for insuring those items.

Restoring a home to its original condition can only be done within the confines of current building codes. Chubb replacement coverage may provide not only for Old World craftsmanship, but also for bringing electrical, plumbing and other building defects up to local building codes. Additionally, during reconstruction, Chubb has their people on site to make sure the work is being done to their own strict standards.

And once the work is done, they make sure the owners are satisfied with the results. In one case, the owner missed the familiar creak in his old stairs. It was an idiosyncrasy he missed. Not wanting an unhappy client, Chubb sent their workers in to recreate the old creak.

Mark Schussel said most insurers have moved away from the luxury home replacement policy business. They key reason, he said, is that they do not have Chubbs finely-tuned appraisal services. œBecause of our accurate valuations, we are able to continue this coverage even if a home is insured at $2 million and it takes $4 million to replace, he said. Most of their policies, though, have a built-in replacement cost escalator.

Insuring a luxury home at market value is not an accurate way to insure the property. In a highly-appreciated market, a homeowner might end up paying way too much for the policy, when the home could be restored for less than market value. And in declining markets, the replacement cost for a luxury home could far exceed its market value.

For detailed information regarding the insurance of luxury homes, it might be helpful to explore Chubbs Personal Insurance site.

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As of this writing, San Diego County has 32 luxury homes priced above $10,000,000, with the most expensive perched at $50 million.

The loaded question: Are these San Diego properties moving? Well, three are in escrow and 13 have sold within the last twelve months. It isnt exactly a booming market, but it certainly isnt dying on the vine either. In any market, these properties will appeal to many, but will be acquired by only a privileged few. It is simply a matter of fitting the home to the collector and the desired lifestyle.

The most expensive home in San Diego is a $50 million oceanfront Del Mar residence with 120 feet of sandy beach frontage and a compound that includes a large family residence, a health spa, theater, pool, tennis court, greenhouse and two guest cottages. Completed in 1997, this Ronchetti-designed estate features the finest appointments and amenities. Listed by Prudential Properties, it is a true crown jewel for the luxury real estate collector.

San Diego has yet to breach the nine-figure mark, as was discussed in an earlier blog. The three estates in this heavenly niche include:

1) Donald Trumps lavish 7 acre and 54,000 square foot Palm Beach estate priced at $125 million and offering 475 feet of prime beach frontage.

2) Saudi Prince Bandar bin Sultans Hala Ranch outside Aspen, Colorado. The magnificent Hala Ranch package includes a 56,000 square foot residence on 95 acres with its own car wash, gas pumps, stables, tennis courts, snowmelt driveways and indoor pool.

3) Finally, there is the whispered offering of the late Aaron Spelling Holmby Hills 123 room estate in Los Angeles.The price tag is also whispered to be $150 million.

It appears the luxury market it not only alive and well, but is poised to break all records.

The post San Diego Luxury Homes…and More appeared first on Luxury Home Digest.

by Roberta Murphy

There is a class of homes that can only be called, for lack of a better word, the ultimate. These are the extreme and exceptional estates that are among the most expensive in the world. To call them luxury homes is an understatement. These properties have singular presence and price tags that now exceed nine figures.

This year, all barriers were broken. Donald Trump’s lavish seven-acre estate in Palm Beach, Florida was the first home to blast through the $100 million list price barrier with a price tag of $125 million. Boasting a 54,000 square foot main house, 24 karat bathroom fixtures and 475 feet of ocean frontage, the home held singular listing price status.

But not for long, because records are set to be broken. Nine figures are here.

A home in Aspen, Colorado was listed for $135 million. Owned by Saudi Prince Bandar bin Sultan, Hala Ranch’s  56,000 square foot residence sits on 95 acres and has its own car wash, gas pumps, stables, tennis courts, snowmelt driveways and indoor pool. The sale is reportedly being handled by Joshua Saslove, whose company is an exclusive affiliate of Christie’s Great Estates.

Last summer it was reported by TMZ that Candy Spelling, widow of the late Aaron Spelling, has quietly put their legendary 56,000 square foot, 123-room Holmby Hills mansion on the market for $150 million. Sources say the Westside Estate Agency (WEA) has the pocket listing and that the property is being discretely shopped among Realtors and their potential buyers.

Who buys these luxury homes?

Laurie Moore-Moore, founder and President of The Institute for Luxury Home Marketing, says, “The current world record for the most expensive residence was set in 2004 when a London home sold for $128 million. While Prince Bandar’s property may break that record, don’t look for it to happen quickly. Despite the increase of personal wealth worldwide, there are few buyers internationally who are in a position to purchase a property of this magnitude.”

She goes on to say that it won’t just be the size and features that will attract a buyer, but the opportunity for that ultra-rich buyer to own one of the world’s most expensive residences.

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