‘Bargains’ in the luxury home market?

By KELLI HART, THE ORANGE COUNTY REGISTER

When you think of luxury homes, the last thing that comes to mind is the word ‘bargain.’ But if you have the money to invest in a

luxury home, there are deals to be had in the high-end market.

I chatted with Edward Mermelstein, an international real estate attorney who deals with the luxury market. The New York Observer listed Mermelstein as one of the top ten lawyers you call.

Here are some things he has to say regarding the luxury market, which is very prevalent in our south coast cities.

Dead market: “There is not much happening in that market unless someone absolutely has to have a particular property. What we are seeing more of is if someone is interested in certain areas, we’re seeing a lot of very low bids coming out, one out of several usually gets a bite.”

Opportunity: “The opportunity is they (buyers) really have the pick of the best, which hasn’t happened in a long time. The luxury market now is pretty much dead. Anyone able to go into that market now can take advantage of low pricing and opportunity, the buyer is in the driver seat. It allows them to send out offers on multiple properties. A lot is happening with land as well.”

No financing: “It’s just impossible for the luxury market to compete with the lower market because there is no financing. No financing will continue to drive prices down until it comes back.”

Luxury buyers: “Are a unique individual who expects that they are going to get bargains and close with all cash. Prices being closed on today are expected to maintain if not increase in value. There is such a lack of financing on the higher end, everything that is being purchased is a bargain or one of a kind. The luxury market will get negative before it turns around.”