There may be lots of dismal news about the real estate economy, but there is still lots of interest in the luxury home market–and curiosity about the most expensive zip codes for median home prices.  Ever on top of these things, Forbes.com has compiled a list of the top 500 zip codes in the country and which certainly reach beyond the dominating states of California and New York.

The top 25 most expensive zip codes are controlled by California with 13 and New York with 10. New Jersey and Maryland each have one. Money and wealth, it seems, appear to gravitate toward the West or East coasts.

In the list below, cities are zip code specific and median prices are shown. Note that in some cases ranking may be separated by only a few thousand (or hundred) dollars.

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Where are the cushiest prisons?

And wouldn’t you know, Forbes.com provides a timely list of the top-rated federal prisons. They looked for such amenities as email, proximity to major airports, weather and internal substance-abuse programs, a sentence-reducing ploy used by non-addicted white collar criminals. Other qualifiers for the luxury prison list include pleasant guards, air-conditioned off-site employment, vocational training and weekend family visits.

Madoff’s first choice (though not at the top of Forbes’ list), was the Federal Correctional Institution at Otisville, N.Y, which serves Kosher food and is closest to his family.

That was not to be the case, though.

Madoff was instead sentenced to Butner Federal Correctional Institution in Butner, North Carolina, which ranks 9th on Forbes’ list.

Top rated? The Alderson, West Virginia Federal Prison Camp where Martha Stewart served her sentence. Others include:

• Federal Prison Camp, Pensacola, Florida

• Federal Prison Camp, Yankton, South Dakota

• Federal Correctional Institution, Sheridan, Oregon

• Federal Correctional Institution, Memphis, Tennessee

• Federal Correctional Institution, Dublin, CA (women’s facility)

• Federal Correctional Institution, Ashland, Kentucky

• Federal Correctional Institution, Buttner, North Carolina

• Federal Correctional Institution, Otisville, New York

And for what it’s worth, there are a total of 115 federal prisons in the United States.

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Good Bargaining Tips for the Luxury Home Buyer

If this is the worst real estate market (for sellers) in recent history, then surely it creates some of the best luxury bargains of a lifetime as well.

We are seeing smart money aggressively buying in our San Diego real estate market, and hear reports of the same elsewhere. The properties are being bought as fix-and-flippers or are being held as longer term rentals.

We receive inquiries about these homes almost daily; but more recently, we are being consulted about bargaining tips for buying luxury homes at bargain prices. These buyers may not have to sell their existing home to buy another, or are open to exchange possibilities.

Below are 7 bargaining secrets we use to help our luxury home buyers (and others) get some of the best luxury bargains on the market.

1. Study Market Time: Luxury homes in general may take longer to sell because of pricing, custom features and a more limited pool of buyers. But that doesn’t mean sellers are any less motivated to move on with their lives. At one time, we thought little of $million-plus homes sitting on the market for 90 days or more. These days, we seek buying opportunities if a home has been on the market over 60 days and are seeing some heavy price discounting if days on market goes over 90 days.
2. Check Tax Records and other Sources: Is there more debt on the home than what it is worth? Has a Notice of Default been filed that would indicate a looming foreclosure? If so and if this is a home of interest for our buyer, we submit an offer contingent on the successful negotiation of a short sale (where the lender sells the property for less than what is owed). In this case, either we or professional negotiators deal with the lender(s) to reach the best possible price for our buyer.
3. Did Owners Pay Cash or Have They Owned Their Home for Longer than 10 Years? These sellers may be in a position to sell at a discount or may be motivated to do so due to life transitions or other investment opportunities. They may also be open to owner-financing for all or part of the home mortgage.
4. Are You Open to Remodeling? Homes sold in as-is condition are more likely than others to sell at a substantial discount. Owners, especially when the home has been on the market for some time, are often overwhelmed with the thought of remodeling and updating–and fearful that their decor choices will not suit potential buyers. Especially in the uber luxury home market, older or outdated homes are sometimes sold at land value.
5. Foreclosoure Sales: The f-word (foreclosure) is occurring even in the luxury home market. Highly leveraged homes purchased in the last few years are more frequently ending up on the courthouse steps. Foreclosure purchases, which require cash and carry no disclosures or guarantees, offer both great potential for profit–and dire dangers for the uninformed. Bidding should be non-emotional and it is best to have a professional bidding for you–but only after thorough-as-possible research has been done regarding the home’s condition, its history and resale potential. Cracked slabs, structural defects and boundary line encroachments are unwelcome surprises.
6. Home Exchanges: This is a rather novel strategy for those trying to sell their luxury home in a bloody market. Life transitions encourage luxury homeowners to make moves. Empty-nesters may wish to relocate from their large estate to something equally posh but far less demanding in upkeep. Others may have expanding families that crave acreage, pools, tennis courts or equestrian facilities. In the Southern California market, Owner-Broker Bob Dyson and Villa Sotheby’s International Realty have set up a property exchange platform that allows homeowners to directly exchange properties and ownership. It is a tactic that helps to support neighborhood values and removes many of the pressures involved in having a home on the market for an extended period of time.
7. If the property you want is listed, have your agent check the other real estate agent’s listing history. If that agent tends to have listings on the market for a long time, you may wish to lower your offer. On the other hand, if the agent prices properties aggressively and has short “days on market,” you may consider coming in near to or at list price. You will likely find the listing is already priced at or below market to attract multiple offers. This bargaining tip is crucial!

A combination of patience, perseverance and the ability to move quickly will serve all astute buyers of real estate these days, but the greatest potential of all may lie in the luxury real estate market where replacement value could far exceed the purchase price. Follow these bargaining tips and let us know how you succeed!

The post 7 Bargaining Tips for Luxury Home Buyers appeared first on Luxury Home Digest.

What kinds of rooms might go into a luxury home? The possibilities are as varied as lifestyles.

I recall a luxurious mansion in Houston’s lovely River Oaks that had, in addition to every other conceivable room, a luggage room. It was a sensible space that accommodated the traveling owner’s large collection of leather suitcases, trunks and garment bags. When a trip was planned, the butler would retrieve the appropriate luggage and assist with the packing.

When expense and space are not restrictive issues, the floor plan of a luxury home can truly reflect the lifestyle of its owner.

Some of the more common possibilities might include:

• A large morning room off the kitchen for casual family dining. This is simply an expansion of the traditional breakfast room.
• Large formal dining rooms still prevail and are a must for indoor formal entertaining.
• A butler’s pantry between the kitchen and formal dining area that may be equipped with china cabinets, lined flatware drawers, crystal storage and wine refrigeration.
• An oversized and well-organized pantry in the kitchen that has room for a freezer.
• A master closet that invites relaxation.
• A temperature-controlled wine room that might even accommodate a tasting table or two.
• A game room that might hold a pool table, arcade games and even a karaoke stage.
• A high-ceilinged music room for the grand piano and other musical enjoyment.
• Forget strip closets. Luxury homes demand oversized and highly organized walk-in dressing rooms.
• Personal gyms are a common requirement in luxury homes. They are typically located off the master bedroom or near outdoor amenities.
• The plush home theater with cushy seats, popcorn machine and huge screen have become very popular.
• A home library offers a quiet room for books, reading and reflection.
• A conservatory provides a glass-walled transition between the luxury residence and its natural surroundings–and is a lovely spot for casual entertaining.
• A sunroom may be located anywhere in the home, but provides a casual place to enjoy sunshine and views.
• Home offices are often a requirement for busy owners and their staff.
• Outdoor living rooms and areas are treasured in warmer climates. See photo above.
• A large laundry and project room may have multiple washers and dryers, a steam closet, and cabinets for project storage. It should also have space for a large, multi-purpose table.
• A snoring room off the master bedroom. Enough said….

Common to luxury homes in San Diego are loggias and fully-equipped outdoor kitchens, which allow for year round outdoor dining and entertaining. It is also not uncommon to find poolside cabanas, dressing rooms and steam rooms. In mountain communities, luxury chalets will likely have mud rooms and ski lockers.

As suggested earlier, it is the lifestyle and taste of the affluent that will ultimately determine the configuration of their luxury homes.

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In our coastal San Diego luxury real estate market, buyers are almost manic about their closets–and especially the ones in the master suite.

Luxury home buyers are most pleased when there are separate closets for each–or if single, closets for the seasons. The compleat closet in the luxury home will be spacious, well lighted and masterfully organized. It is a room where we prepare ourselves to meet the world–or simply the day. The closet holds our clothing, our personal treasures, our shopping triumphs. It’s status in homes has been elevated to be far more than functional storage. People now want to spend real time in their master bedroom closets.

And what are some features they would like to see?

• A staggered hanging carousel for shirts, skirts and jackets.
• A swing rod that comes down and elimates strain from reaching up for hangers–especially in closets with the more prevalent high ceilings.
• Banks of bureau drawers that are fully extendable, and which have super-quiet concealed glides that prevent snaggy contact.
• All shelves are smooth, snag-proof and have vertical dividers that can be adjusted for height.
• A built-in floor or wall safe for valuables.
• A few locking drawers.
• Floor to ceiling mirrors. Natural lighting is often achieved with protected skylights.
• Large spaces for organized shoe storage.
• A dressing bench.
• It is also a plus when laundry facilities are nearby.

Other bonuses and accessories in the luxury home master closet would be rotating show carousels, scarf and tie cellarets, lingerie caches, jewelry inserts, tasteful garment bags, decorative storage boxes, and wicker storage baskets with washable cotton liners.

If your closets come nowhere near this description (and my own do not), the best and first thing you can do (whether you plan to sell or not) is to clear it out and keep only those things that you love–and those which love you by hanging so well on your body. Look at your emptied closet and determine if it needs paint, new rods, shelves, scented shelf paper, or new lighting. Is there room for a mirror? A dressing bench? Might it be organized differently? Is there room to move in a small chest?

(If you follow Feng Shui guidance, this might also be the time to introduce needed elements to the room.)

This closet re-do is one that will yield great benefits to you, whether you intend to sell your home or not. There is nothing that beats the sense of peace and control that comes from having a beautifully organized personal closet that is used day in and day out. And if you are selling your home, it is a feature potential home buyers will appreciate.

The bedroom closet may be a small thing, but is one of the most frequently used spaces in the home.

The post The Luxurious Closet appeared first on Luxury Home Digest.

Speaking of gossip.

Legendary Kirk Kerkorian has just cut the $25 million asking price of his 30 acre Beverly Hills mansion to a reasonable $18 million, after it has languished on the market for nearly a year. His lovely gated estate boasts a Mediterranean-styled main home, two guest cottages, two pools, two tennis courts, a putting green and lots of room for expansion.

The Wall Street Journal reports that Mr. Kerkorian, 89, has purchased this estate in three different phases. The first parcel was purchased for $5.7 million in 1989. The other two were added in subsequent transactions. The package is listed by Coldwell Banker in Beverly Hills.

All this leads me to wonder if the parts might be more valuable than the whole? (Please contact me for additional gossip and discussion!)

The post Kirk Kerkorian Heading from the Hills 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.

The post Breaking All Barriers, Luxury Homes Reach NINE Figures appeared first on Luxury Home Digest.

Buyers have gone through this golf and ocean-view Encinitas Ranch home, and jokingly asked if the the red hot Ferrari in the garage might come with the purchase.

Well, as of this afternoon, it does! A free Ferrari goes to the lucky buyer.

The owners of both the home and the car are ready to move and had already reduced the price of their singular property, when they threw up their arms and decided to include the car for a buyer whose offer comes within the $1,950,000 to 2,195,000 asking range.

This gorgeous 5-bedroom, 5.5-bath Mediterranean home sits on a half-acre golf and ocean view lot. It offers over 5400 square feet of intellligently-designed living space and is in a prime gated community less than two miles to sandy beaches. It offers a guest apartment, views from most every room, five fireplaces and multiple patios. Fellow agent Jeff Cole with Windermere Exclusive Properties is expecting strong buyer reaction to his offering

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 go over the top.

I wouldn’t be surprised if the news media picks up on the Ferrari story first! In case there is any interest here, please call Roberta Murphy at either 877-818-8197 or 760-402-9101/9101.

The post Free Ferrari To Buyer of Encinitas, CA Home appeared first on Luxury Home Digest.

by Roberta Murphy

It is a tough task in relativity to define a luxury home.

One’s perspective has as much to do with the definition as does the opulence, location or architectural significance of a particular property. One man’s simple home is another man’s castle, and vice versa.

Perhaps it is easier to consider what a luxury home is not. It is not a cookie cutter home in a subdivision tract, even if it is magnificently appointed. Why? It is probably lacking in presence, in architectural originality and may very well be lacking in coveted location.

New subdivisions throughout affluent communities are abounding in 5000 square foot stacked boxes with crown moldings, coffered ceilings and granite surfaces. The prices may reach seven figures, but do they really qualify as luxury homes? I have argued this with other luxury home specialists, and as soon as we agree upon a particular standard, exceptions to the rule emerge.

I am one of several directors with Windermere Exclusive Properties’ Distinctive Properties division in San Diego, CA. Luxury real estate in San Diego County is our specialty. It is our task to collectively approve or disapprove a listed property for that coveted “Luxury Home” designation.

It has proven to be a sometimes-difficult task. Price alone does not distinguish that status. It is location, property entry, arhcitecture, decor, decadent amenities, entertainment capability, lovely grounds and myriad other details that help a home stand out from the ordinary. A supersized McMansion does not qualify as a luxury home, unless it has the requisite extras, superior location and a view…perhaps. Or what about a cute $2 million cottage in Malibu that lacks both architectural clout and luxe surfaces? Does exquisite location make up for a dated or tacky interior? An architecturally significant home on a Midwestern prairie might qualify, even though it lacks in modern opulence.

As discerning and honest luxury real estate professionals, we believe we know one when we see it–especially when the home has all the markings of luxury, location and panache. What I am hoping occurs within this site is the discussion and display of luxury homes. I hope we can discuss trends, touches and tools that help to define the luxury home and luxury living. I am hoping we hear not only from Realtors, but from interior designers, builders, home stagers and other seasoned professionals who contribute to the luxurious homefront.

And from this continuing interchange, perhaps we can develop ongoing relationships where we can share information, ideas, trends–and perhaps even referrals to those professionals we will have come to know and respect.

The post And Just What Is A Luxury Home? appeared first on Luxury Home Digest.