Value is subjective in the real estate industry.
The cost of materials and construction alone does not determine the correct price for a property.
And, despite some marketing efforts, computer algorithms still aren't good at providing a decent estimate of value.
Nowhere is this more evident than in luxury properties.
The luxury automotive industry is a good analogy.
No one cares what kind of gas mileage a Mercedes Maybach gets.
Lamborghini doesn't advertise on TV.
Properly marketing these properties isn't a matter of the number of bedrooms, bathrooms, and a price tag,
even if that is how many agents treat them.
Luxury isn't about necessarily about price point, or function, or location, or the size of the rooms.
Like any luxury item, it is about the experience.
Similarly, when buying a luxury property the intangible factors are just as important as the physical structure.
The sense of privacy
The connection to a celebrity or movie.
The “Cocoon House” is a local luxury property.
It’s not currently on the market.
But when it is eventually listed for sale, it would be foolish not to embrace this connection.
The most epic pool party location
Your own private dock, in close proximity to your favorite fishing hole, where the dolphins play at your feet.
If your intention is to both enjoy your luxury property
and to use tax strategies to your benefit,
I can help with that too (in conjunction with your preferred tax or accounting professional).
It's not every agent who understands the financial power of a Section 121 Exemption and a 1031 Exchange.