"Trophy" Properties

[Pamela Crowley (Florida)]

http://biz.yahoo.com/prnews/021004/cgf041_1.html

Good basic info on large unique properties.

At least they get something in the media. I'll reserve any comments regarding the last paragraph.

 

[George W Dodd]

Only an MAI could write this much and say nothing.

The context in which we generally hear and see trophy property discussed is the marketplace when someone wants to sell or buy," noted the author. "Therefore, there is a marketability dimension for a trophy property. There must be a very good demand."

An investment grade property?

"a trophy property is an investment grade property represented by value or price at the top 2.5 percentile of properties.."

I am sure that Bill Gates built his multi-million dollar "trophy" home for investment..

I have seen a number of "trophy" homes over the past twenty years and most, if not all, have a market value significantly less the the cost to construct. Why? Because this class of property is tailored to the owner's specific tastes which are rarely appreciated by anyone else.

 

[Restrain]

The definition of trophy properties (after having done several) appears to be a monument to someone's dream, be it a residence or commercial property. Except in a very few cases, they are overbuilt and never return the cost. When it comes time to sell, market reality intrudes on the dream, bringing the seller back to earth.

 

[Verne Hebert]

George I am with you. Traditionally I am commissioned assignments that others either can do, don't want to do, or don't know how to do them. We are seeing alot more of these here over the past three years.

Of late I have been on a roll with "trophy" properties. Got another one today. I agree with your comments. Running the cost approach is always a challenge. They are difficult and be quite honest with you I am getting weary of this last stretch; I am ready for a couple of "cookie cutters"--Have you got any?

 

[George W Dodd]

Verne,

Wishful thinking. Although I did get a 2075 today, but I don't think that qualifies. I am seeing more divorce "trophy" properties and things get pretty nasty, but at least the fees are better.

 

[Terrel L. Shields]

Dodd said -

Because this class of property is tailored to the owner's specific tastes which are rarely appreciated by anyone else.

Kinda like some less affluent red necks I know. The cabin in the woods becomes a sprawling dwelling which eventually sucks in the nearest building or two. Had one old coot really delighted to show me how he had extended the roof over the rear porch all the way to a shed and then enclosed it. Then he built a room onto the front of the front porch and enclosed that porch. He had a well house which had sliding racks in it to store his winter supply of potatos. Everyone who has looked at said, " I'm gonna tear down that back porch and shed."

 

[Caterina Platt]

RStrahn,

Well put. Speaking of trophy properties, how did your 'Mucho mansion' appraisal go?