This one’s listed for $95m
You might imagine that compromises in life ends once you accumulate a sufficient pile of capital. (It ain’t called “Fuck You money” for nothing). But even that turns out to be less than always true.
Today I will share a story that, excepting the names, every word of it is true.
A few months ago, I gave a presentation to the International Luxury Real Estate Alliance. The group of 75 or so real estate brokers had sold over $35B in houses the prior year, and this was their annual fête. I met quite a few fascinating people, one of whom – let’s call her Sandy – was an agent in one of the toniest parts of Florida for decades. During dinner, she got a phone call that a deal she had been working on was finally in contract – a $100+ million waterfront manse.
My wife and I are both huge architect and design fans; we have seen many of the Frank Lloyd Wright homes that are still standing, as well as other legendary designs. I imagined what I could do with what looked like an unlimited budget – no compromises, nothing off the table.
“Wow, that must be some amazing, perfect home,” I exclaimed. I was astonished by what followed: She merely shrugged: “It’s an A-minus.”
Wait, wut?
“It’s waterfront, but it’s not on a sandy beach. They have a seawall. That’s less than ideal location if you want ocean front.”
I was aghast.
“Impossible! How can anyone spend nine figures but not get anything less than a spectacular, perfect home?”
Her response was simply “There’s no inventory and they wanted a property now . . . even at that price point, there are tradeoffs.”
An instructive anecdote, to say the least. There are always tradeoffs, a cost for everything, regardless of price. Timing, as any trader can tell you, matters. A lot.
Previously:
Residential Real Estate in a Volatile World (March 30, 2022)
Aspirational Pricing (May 25, 2022)
How Everybody Miscalculated Housing Demand (July 29, 2021)
