Branded residences might seem like a natural extension of five-star luxury hotels, but companies from all types of categories are conceptualizing their own take of luxury living. Major fashion brands, like Diesel and Missoni, and luxury automakers, like Porsche and Bentley, are building residential towers based on their brand principles. Now, a beloved hospitality and restaurant group is jumping into the mix.
The exterior.
Binyan Studios
As more people seek out residential communities with everyone under one roof, many buyers with a love for the finer things in life are also seeking higher-end food experiences closer to home. Hospitality brand Major Food Group, which owns and operates celeb-favorite establishments like Carbone, Sadelle’s Parm, Dirty French, and Contessa, is entering the luxury real estate space with a residential tower in Miami: Villa.
MFG tapped developers Terra and One Thousand Group for the first-of-its-kind residential tower in Miami’s Edgewater neighborhood, along with Vicky Charles of Charles and Co. for the interiors. The celebrity interiors expert and former Soho House design director has designed homes for Mila Kunis and Ashton Kutcher and David and Victoria Beckham, and worked on projects for Sony, Goop, and other major brands.
A kitchen in a residence.
Binyan Studios
Villa will tower 58 stories about Biscayne Bay with 360-degree panoramic views of Miami’s skyline and waterfront. The 650-foot-tall crystalline tower will have a copper-hued exoskeletal design and only have 50 units, offering full-floor units. Details within each residence, which will feel like private villas in the sky, have been carefully curated and developed by Major Food Group’s visionaries. For example, the kitchens are designed by chef Mario Carbone, founder of Carbone restaurants, while the services and amenities are planned by MFG co-founder Jeff Zalaznick.
“To say that this is a natural evolution is an understatement,” Zalaznick tells Forbes. “At MFG, we don’t build restaurants. We create worlds where every element is executed with an unparalleled sense of luxury and skill, down to the most minute detail. Add to that our illustrious track record collaborating with the best of the best in hotels, architecture, design, and art—innovators who understand how to conceptualize complete experiences.”
A bathroom.
Binyan Studios
There will be a brand-new, three-floor MFG restaurant, as well as resident-only lounges, bars, and restaurants and private chef services. It’s a one-of-a-kind project where luxury hospitality and great food collide. In total, there will be more than 20,000 square feet of amenities, and gastronomy lovers can expect many culinary activations and programming, like cooking classes and demonstrations with MFG’s talented roster of chefs, and so much more.
A rendering of the 650-foot tower.
Binyan Studios
“The Villa is a transformational project,” says David Martin, CEO of Terra. “It unites the most brilliant minds in their respective industries to create a building that is marked by an unrivaled residential experience. MFG’s success in the hospitality space gives them a differentiated degree of expertise when it comes to understanding consumer needs- that level of attention to detail is integrated into every aspect of the Villa brand.”
Units will start around $4.5 million, but don’t hold your breath. The building hasn’t yet broken ground and is scheduled to open in 2026.
Shopping for or offering a property is a single of the most economically major transactions of most people’s lives. And using this action amid the sophisticated, evolving true estate market we are at the moment dealing with is no little make a difference.
A good authentic estate agent helps make the procedure considerably less overwhelming. But choosing an agent to operate with can be hard — and there are a lot more Realtors now than ever ahead of. As of March 2023, the Nationwide Association of Realtors (NAR) experienced a lot more than 1.5 million members.
With so a lot of gurus vying for your organization, how do you figure out which agent will be the most effective in good shape for you? It’s a fantastic concept to interview multiple candidates — three at a bare minimum — before building a determination about who you’ll do the job with. In this article are 10 interview questions to inquire a Real estate agent that can enable you uncover the ideal match for your needs.
How to interview a Realtor in 10 queries
No matter if you’re getting a house or marketing one, there is some normal info that you are going to want to know about every candidate you’re thinking of.
All brokers
These three questions will assist you come to a decision regardless of whether an agent has the expert know-how, neighborhood sector expertise and conversation capabilities you’ll want in a spouse on your genuine estate journey.
1. How extensive have you been in business enterprise, and what is your sales volume?
“When you’re putting what is most possible your premier expenditure in the fingers of a specialist, it is essential to realize their level of encounter in the market,” claims Jen Horner, a actual estate agent with Masters Utah True Estate in Salt Lake Metropolis, Utah. “You’re seeking for signs that the Real estate agent is aware the market place properly and will protect you and your income all over the transaction.”
As component of this dilemma, talk to for product sales knowledge to back up the candidate’s new transactions, and talk to them to explain the developments they’re looking at in the marketplace. These could consist of this kind of facts as provide and demand, the selection of times properties are remaining on sector and what contractual phrases are successful promotions from both of those a buyer and vendor standpoint, states Horner.
2. How will you converse with me, and how normally?
It is important for you and your agent to be on the identical webpage from the start off with regards to the variety and frequency of their updates. For case in point, if you want talking on the cellular phone, you likely will not be satisfied with a person who communicates completely by using text.
“Whether purchasing or promoting, you want to come to feel their level of respect and determination to you as a shopper from the moment you indicator with them,” suggests Horner. “You want them to recognize your anticipations and the mode of interaction you want, so that this is not staying determined on the fly.”
3. Are you a comprehensive-time or aspect-time agent?
As with a lot of kinds of careers, some agents operate in genuine estate as their whole-time occupation, and some are aspect-timers. “I would always advise operating with a complete-time agent whose sole focus and awareness is on genuine estate, sector conditions and developments — all of which are fluid dynamics that can shift weekly,” claims Katie Severance, a Realtor with Douglas Elliman in Palm Beach, Florida. A professional who thinks about authentic estate 100 {0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} of the time can better help you have an understanding of items like whether it’s the correct time to acquire and how much dwelling you can manage in your place.
Offering a residence
Most sellers want an agent who will be able to get them the ideal price tag for their assets. Here are three inquiries for smart sellers to talk to as they interview.
4. What rate would you suggest if I ended up in a hurry to offer, and if timing have been not an difficulty?
It is essential to have an understanding of how a great deal your household is well worth just before getting into into the current market. “Asking this question exhibits you what an formidable pricing approach may possibly be vs . a tighter, additional effective pricing system,” claims Steven Gottlieb, an agent at Coldwell Banker in New York Metropolis. “It will also demonstrate you if the agent is able of significant wondering and navigating a challenging sector.”
A lot of brokers quotation prospective sellers unrealistic asking rates in buy to get the listing, Gottlieb states. Requesting much more than a person asking value helps make it more challenging to fudge the quantities. You ought to also check with agents to display you the actual estate comps and demonstrate how they arrived at the proposed offering prices for every single situation, he suggests.
5. What is your advertising recreation program?
“A thoughtful advertising and marketing recreation prepare that’s documented for overview is ideal,” suggests Horner. “Agents must offer a timeline for your sale primarily based on the latest marketplace and a thorough outline of the advertising and marketing marketing campaign crafted for your household.”
That program really should spell out regardless of whether the agent will offer this sort of services as expert photography, videography and flyers. “Are staging solutions an offering they provide? Discuss open houses and non-public showings — will suggestions be shared?” suggests Horner. She also suggests asking about how they would sector your house digitally. “What on the internet existence are they providing? Site, on the net syndication, social media publicity?”
6. How will my dwelling be introduced to other Realtors?
“This is critical,” claims Severance. “Not only do agents need to have advance warning that your property will be coming on the marketplace, but they also have to have to see it in individual — usually in a non-public, Realtors-only open house — so that they can effectively express enthusiasm for it to their purchasers. If they like the house and the price tag, they will provide prospective buyers in.”
Shopping for a dwelling
Just as there are thoughts precise to seller’s brokers, there are also issues consumers really should be positive to request. Homebuyers have it specially tricky in a seller’s market, which lots of places are however in the throes of. These 4 concerns will aid you use a person who can find you the ideal property at the proper value.
7. How will you existing my presents to sellers?
“Ask to see an illustration of their present packet or format,” states Severance. “This is hugely critical. You are not very likely to meet up with the vendor in individual, so all they will know of you is what is on paper when your offer is offered.”
The agent should put a skilled go over letter on your offer you offer that introduces you and presents a persuasive summary of your offer factors, when also conveying why you are a desirable purchaser, she says.
8. How would you assist me navigate a opportunity bidding war?
Bidding wars are not as popular as they once had been, but they do nonetheless happen, particularly in very well-known markets. “Discuss with the agent how they will suggest you and regulate the approach if you get included in a bidding war,” suggests Severance. “How aggressive need to you be in your rate and terms? What does a very competitive provide look like — without going also much?”
9. What is your availability for having out to showings promptly?
With demand significant and inventory reduced, it’s important to work with a Realtor who is ready to transfer fast. “Part of the battle is acquiring into residences that strike the sector immediately so that you can vie for an present,” suggests Horner. “You’re looking for a Realtor who can prioritize your showings.”
10. How a lot of attributes ought to I see just before I make an give on just one?
“This will tell you a lot about the agent’s approach,” suggests Severance. Although transferring swiftly is critical, “buying a property should really never be rushed,” she states. “It is imperative to see at least a number of houses prior to making your initial offer. Sometimes a purchaser sees the best household on the to start with day, but which is the exception — and how would you even know it’s fantastic if you haven’t viewed several houses in the spot?”
Future measures
When you are completely ready to commence your research for a trusted agent, start out by inquiring close friends, spouse and children and other people in your community for suggestions. You’ll also want to check out the on the web presence of Realtors you are thinking of doing the job with. Evaluate their site and social media accounts. Although you are at it, try out to keep track of down evaluations on the internet from previous clients. You can also ask for the agent provide references.
Recall, purchasing or providing a property is a person of the greatest fiscal transactions most men and women at any time make. Possessing a professional at your aspect who you can simply perform with, and who has a keep track of document of giving excellent company, can make your existence a lot easier and your true estate journey extra thriving.
FAQs
It’s a great concept to interview a least of a few candidates, ideally from various brokerages. Believe of it like interviewing a job candidate — you are on the lookout for the individual who’s finest suited for the work, and the task is guiding you to a thriving genuine estate transaction.
That is dependent. In most conditions, a actual estate agent will have to have that you indication an exclusivity clause specifying that you will operate with only them for a selected period of time and in a distinct geographic space. That operates to your benefit as well as to theirs — the more they get the job done with you and get to know what you want, the improved their chances of leading you to it. But if you are shopping in two different geographic parts, or purchasing in a single space and offering in yet another, hiring much more than one particular agent may possibly be a requirement.
All authentic estate agents are certified specialists, but certainly, some specialize in supporting either potential buyers or sellers. A buyer’s agent signifies a homebuyer in a actual estate transaction, encouraging customers lookup for and acquire a home that satisfies their needs and fits their price range. A seller’s agent (or listing agent) focuses on aiding a homeowner to list a residence for sale and near a worthwhile deal. In some situations, the similar agent signifies each the customer and the vendor in a transaction — this is known as dual agency.
San Diego is 1 of the most attractive destinations to live in the United States, and for superior cause. With its pristine beaches, year-round sunshine, and flourishing task current market, it is no marvel that so many persons aspiration of possessing a dwelling in America’s Greatest Metropolis. However, the procedure of shopping for a dwelling in San Diego can be too much to handle, specifically for 1st-time buyers.
To assistance you get began, we turned to some of Redfin’s best Husband or wife Brokers in San Diego to assist you navigate the approach with self-confidence. Irrespective of whether you are a community leasing an condominium or an out-of-towner hoping to possess your to start with house in San Diego, these tips will enable you find the ideal area to phone your very own.
1. Get pre-authorised for a home loan
My tips to initial-time homebuyers is to find a fantastic mortgage officer and get pre-accredited, fully underwritten acceptance is very best. Function with that loan officer and their agent to have an understanding of what timeframes they’re comfortable with in an present. Sellers want shorter contingency intervals so they don’t squander time on failed escrows and are a lot more snug that the deal will close on time. By shortening these contingency durations you are producing your give stronger and your give will appear improved to a vendor. – Robert Cenzer| Redfin Agent
Don’t soar in and commence dwelling searching until you have been pre-authorised by your nearby lender or financial institution. You are going to want to know what your month-to-month home loan payment is so you can resolve your monthly house spending plan. This way you’ll know precisely how a lot household you can find the money for. You can make a much better offer you when you locate the home you truly like. – Gary Giffin | Redfin Spouse Agent, AARE
2. Know the costs related with obtaining a home in San Diego
I just can’t tension adequate how critical it is for a customer to talk with a loan company and seriously understand the prices of the down payment, closing and month to month payments. Once we have that squared away, they can store with self confidence. Additionally, when we have a spending plan set up, I can aid established up a saved lookup that’ll hone in on what could perform for them. With the Redfin application, they’ll be 1 of the initial to know when a new listing pops up in an location they want to be in. – John Copeland| Redfin Leading Agent
If you are buying a home in San Diego, you’ll need to have to component in added charges like house taxes, household insurance policy, and possible home owner affiliation charges when calculating your spending plan. – John Varon | Redfin Associate Agent, Avaron Realty
3. Understand about unique San Diego neighborhoods
When looking at acquiring your initial house in SD, I recommend customers to get started by talking to a neighborhood realtor to get a sense of which San Diego neighborhood could be a superior in good shape. You are going to health supplement that with on the web study to get a better perception of just about every region and how a lot you can assume to pay month to month. – Patrick Cohen | Redfin Companion Agent, Coldwell Banker Realty
4. Be certain you have ample savings
Make absolutely sure you have plenty of financial savings in your financial institution account for a down payment and closing price tag in addition reserves. – Joe Nichols | Redfin Partner Agent, Berkshire Hathaway HomeServices California Properties
5. Take into consideration talking with numerous loan companies
Talking to different creditors when buying a home allows homebuyers to examine different mortgage alternatives and curiosity charges. Each individual lender may well give different rates, costs, and conditions, so it is essential to store all over to find the greatest offer. Unique loan companies may well specialize in distinct kinds of financial loans, this kind of as FHA loans, VA financial loans, or jumbo loans. Each loan company could have diverse qualification necessities, such as credit score score, profits, and credit card debt-to-revenue ratio. By conversing to many creditors, homebuyers can find the loan provider that most effective fits their distinctive problem and mortgage requirements. – Sez Sezer | Redfin Spouse Agent, Douglas Elliman Genuine Estate
6. Be prepared to navigate by way of large prices and high interest charges
In some spots, we’ve viewed price ranges dip a very little little bit and some of the houses are being on the marketplace for a for a longer period period of time. This can be a fantastic chance to inquire the seller for consumer credits to near and use all those credits to buy down their curiosity price, in change reducing their month-to-month payments. Obtaining down a large curiosity charge is a great way to get the month to month payment down to a variety which is more reasonably priced for 1st-time buyers. If the amount obtain down places the fascination rate 1.5{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} lessen than devoid of the buydown, it can make a major variance in your month-to-month payment. – Steve Cazel | Redfin Lover Agent, AARE
7. Get a residence inspection
For these acquiring a residence in San Diego, I always suggest a property inspection. Preferably by a licensed contractor with inspection certifications, this kind of as CREIA and/or ASHI. The condition of California doesn’t license home inspectors so currently being a member of just one of these corporations that involve specified specifications, assists give the consumer some further standards in picking out a residence inspector. Investing the hundreds of pounds on the residence inspections can conserve thousands of bucks for the homebuyer. – Virginia Edwards | Redfin Companion Agent, AARE
8. Uncover your dream workforce of San Diego professionals
As a initially-time homebuyer, there is nothing at all far more important than receiving your “team“ in order upfront. This means obtaining a realtor and a loan officer to have in your corner to stroll you through the method from begin to end and to glimpse out for your greatest curiosity. Some brokers, including myself, will have a comprehensive consultation with every single shopper to evaluate their would like, requirements, and timeline to get the complete image of their scenario. This makes it possible for us to support homebuyers in the most effective way feasible. – Jon Fields| Redfin Associate Agent, Keller Williams San Diego
9. Don’t consider to healthy a square peg into a spherical gap
Do not settle and be affected individual because acquiring the ideal house is so important. Attempt not to enter each house scrambling for a way to make it in shape, preserve strolling till the magic commences to transpire. When the appropriate residence comes, you will know it and experience it. – Carol LaRosh | Redfin Partner Agent, Compass
10. The San Diego sector is aggressive, be persistent
The San Diego housing sector is tough for 1st-time homebuyers appropriate now with customer competitors, large price ranges and increasing prices, but there’s nonetheless a whole lot of opportunity that prospective buyers can capitalize on. In markets like these in particular, it’s essential to act rapidly and be organized in advance of time on the lending side of things. Aim on a thing you can see your self in for the upcoming 2-7 a long time in an place that will value the greatest of what your city has to give. –Sara Swikard| Redfin Associate Agent, eXp Realty
11. Recall, your very first property might not be your without end household
Remember that your 1st household does not have to be your without end residence, but instead a stepping stone to start out constructing fairness and get your foot in the doorway. Investing in authentic estate is a extended match, so the faster you commence the much better off you are going to be in the prolonged run. Also, preserve in brain that stock is confined listed here in San Diego. With residences offering quickly, it’s important to be decisive and have your desires/requirements listing ready to go the moment you commence dwelling hunting. – Mark Seaberg | Redfin Lover Agent, Significant Block Realty
12. Be well prepared to compromise
Shopping for a residence in San Diego can be extremely aggressive. Be sensible and be prepared to make some compromises. When it arrives time to make an provide on a house you really like, discuss with your Real estate agent about supply methods that are functioning in the latest industry. It is not generally about the value of the house that receives the recognized supply. A very good Real estate agent will have practical experience in diverse marketplaces and a fantastic group of supporting gurus to make confident you are productive. – Kevin Endres| Redfin Husband or wife Agent, True Broker LLC
13. Get edge of the positives in the industry
I know the conversation trend in the genuine estate market place today is concentrated on larger prices, but there is a optimistic side. Buyers are viewing significantly less opposition (for the most section), are equipped to negotiate far more repairs and credits, and if you strategy forward, you can refinance later on down the highway. – Jeanne Liebel | Redfin Lover Agent, Serious Broker LLC
14. Keep in mind that refinancing is normally an option
It is finest to remain concentrated on property possession even when premiums have elevated. If you can qualify for a property ownership in San Diego then you’re golden. You can usually refinance when prices drop and take pleasure in not dealing in really aggressive customers marketplaces although looking for your household buy (as we ended up in 2021.) It is almost often far better to own than lease in particular with rental rates becoming so high right now. – Franchesca Meram| Redfin Spouse Agent, Avenu Realty Team
15. Comprehend the recent state of the San Diego market
As a initial-time homebuyer in San Diego, it is significant to be aware of the existing current market situations, which are characterized by superior demand from customers and reduced inventory. It’s also essential to be versatile and geared up to act speedily when a appealing assets results in being readily available. With the proper approach and guidance, having said that, it is nonetheless possible to discover your desire property in San Diego’s aggressive market place. – Alex Sidransky| Redfin Companion Agent, Berkshire Hathaway HomeServices California Qualities
Lover Agents function for conventional brokerages, but have teamed up with Redfin to aid buyers buy or provide a dwelling. Shoppers are related with lover brokers when Redfin Agents are dealing with extremely substantial buyer need or if a home is outside the house our direct assistance region
Gazing throughout the slushy, snowy mountains encompassing the Vail, Colo., area during a new vacation, Vivianna Franchy couldn’t assist but admire nature’s natural beauty, actually supplying her a breath of clean air.
But, back again on Critical Biscayne, in which she has lived for 30-moreover many years, Franchy previously has attained her individual mountaintop, residing “where you definitely can take pleasure in a lovely life” and performing in the assets management business and in actual estate, “where I am able to sell just one of the ideal products in the earth, and that is generally Miami and Vital Biscayne.”
The indigenous of Lima, Peru, has emerged as one of the area’s foremost ladies in the business enterprise globe, operating Viviana Deluxe LLC, managing houses for quite a few entrepreneurs who do not are living in the nation.
She has adopted that exact same branding in her internet marketing as a Forever Agent with the Coral Gables-based mega-organization Berkshire Hathaway HomeServices EWM Realty, where by the principle is “that we are not in the transaction organization, but that we are in the relationships permanently organization,” she reported.
The single mother of Andrew, now 30 and dwelling in New York (“He will generally be my kid,” she said, laughing) had been a world-wide traveler, 1st earning an Industrial Engineering diploma (and getting her master’s in Internet marketing at Texas Tech) to have an understanding of “processes, going from position A to issue B.” It’s something her father taught her in his individual manufacturing organization in Peru, and anything she nevertheless uses now.
Together the way came work in corporate engineering, at Lexmark, Compaq and Toshiba, in which she once sold laptops.
Getting into real estate was a thing she usually needed to do, but her residence management company could not overlap in some situations. But, following Berkshire Hathaway and EWM Realty merged many several years ago, she obtained the call from CEO and President Ron Shuffield and Controlling Broker of the Essential Biscayne Place of work, Vivian Galego- Mendez.
“Ron explained he could help me to mature with a throughout the world enterprise, and an moral organization. It was uncomplicated to make that final decision,” Franchy reported.
Offering properties in the Miami spot may look straightforward, but contemplate there are additional than 400 brokers who manage Critical Biscayne transactions alone.
“It is a very aggressive market place, but it’s also very fulfilling simply because you are in a position to market your self in your ambitions and your possess identity, and that’s what tends to make this company individualistic,” Franchy mentioned. “You are out there projecting yourself, your model … let us say it has a ton of ‘you’ in it.”
The distinction in advertising right here, rather than other Florida marketplaces, is straightforward to realize.
“Miami is a great product or service and a gorgeous item, and it is out there for the world, not to learn, but to choose a aspect of it,” she claimed. “It utilized to be a end on the peninsula to go someplace else. But the vibrancy of the city and what it features … and it is turn out to be a quite significant identify and in comparison to (key towns) all around the planet.”
Currently being a woman in her profession provides her the gain of acquiring the potential to be an “equal” with her male counterparts and, she explained, she is treated as such.
The toughest point about serious estate? “It’s difficult to be a Real estate agent, for both of those adult males or ladies, for the reason that there is a good deal of rejection that a single has to conquer in get to make almost everything take place so that we can grow to be prosperous,” she mentioned.
She takes satisfaction in Countrywide Women’s Month, mainly because “it’s a recognition work of several ladies before us building it a improved earth … it was an amazing energy they place with each other. They broke so numerous boundaries and made the women in small business currently to be equipped to conquer and aspire and accomplish all of what we have and what we can.”
Which is accurately what Franchy is executing.
“I just want to supply the most effective attainable service to those people who want a piece of Miami and enjoy this wonderful metropolis,” she stated. “(At Berkshire Hathaway-EWM), we have the potential to provide millions in (this region), which we are … it’s been an astounding journey.”
Call Vivianna Franchy at 305-798-6010 or viviannadeluxe@aol.com
This article was revealed as portion of Islander News’ The Women’s Difficulty and provided in Islander News’ next annual Women in Enterprise segment. For the entire The Women’s Problem version, click below.
Josh Altman has been appearing regularly on Bravo’s Million Dollar Listing for several years now, where the Los Angeles-based realtor shows exactly that: multimillion-dollar homes for sale in the city of angels. But the Douglas Elliman realtor has a message about the so-called mansion tax on every property sale above $5 million in Los Angeles County: “We’re not talking about these crazy mansions that you see on MTV Cribs.”
A $5 million house “may be a mansion in Minnesota,” he added, “that’s not a mansion in L.A.” For those unfamiliar with Los Angeles’ extremely stratified housing market, Altman explained that what you get for $5 million in most of Los Angeles “could be a four-bedroom, 4,000-square-foot regular house that you would find anywhere in America, but it just happens to be more expensive because it’s in L.A.”
Altman and others of his ilk talked to Fortune about Measure ULA, which is essentially an additional 4{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} tax on Los Angeles property sales over $5 million and 5.5{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} on those above $10 million—with the tax being paid by the seller. It passed with nearly 58{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} of the vote in November but went into effect beginning on April 1, and adds more pain to a pandemic home price correction that has been sharper out west than anywhere else, as the region is hypersensitive to interest rate hikes and has home prices unusually detached from average local incomes. On the high end, the L.A. luxury segment has declined 55.5{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} in terms of home sales in the three months ending January 31, per Redfin. And the mega-realtors and brokers of L.A. are apocalyptic about what the new tax will do. “I think that it is the worst thing [to] happen to the real estate market in Los Angeles since 2007, 2008,” Altman told Fortune.
The city says the tax will generate a new revenue stream to combat its homelessness crisis through affordable housing projects and prevention efforts. As of last year, 41,980 people experienced homelessness in the City of Los Angeles. And this tax, the city says, can generate up to $672 million this year.
Altman described the mad dash of many upper-income home sellers to beat the deadline, adding that it’s been a bit “silly” to watch what’s gone down before the April 1 deadline, with everything from cars to vacation homes being thrown into deals just to close before the mansion tax takes effect. At the time of our call, Altman said he was negotiating two G-Wagons (the Mercedes-Benz G-Class) as a throw-in for a house being sold days before the deadline. He calculated that he was closing 25 deals in the 72 hours before April 1. In a separate case, he and Jade Mills, a Coldwell Banker Global Luxury Ambassador, offered any real-estate agent a $1 million bonus on top of commission to close a nearly $28 million home in Bel Air before the first of the month. Altman knows it’s absurd, but he said “this has been completely forced on us.”
Some in the industry also say this tax isn’t the ideal way to solve the city’s homelessness problem. Altman told Fortune to think about it like this: let’s say you bought your home for $5.2 million a few years ago, but with interest rates going up and a market that’s down, your house is worth just slightly over $5 million now. If you were to sell, with this new tax in place, you’d be taking a loss on your property while paying an additional tax of around $200,000. This is exactly the point, proponents of the measure say, claiming it would “reduce homelessness, make housing more affordable, and protect low-income seniors from losing their homes.”
An analysis of Measure ULA, published in September of last year and authored by UCLA researchers, among others, found that the tax would only affect approximately 4{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} of real-estate transactions in a given year, and 72{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} of its revenue would come from properties sold over $10 million. (The average home value in Los Angeles is $891,820, according to Zillow.) The researchers argued that the measure “represents a holistic approach to the city’s housing affordability and homelessness crises.” In other words, these luxury real-estate professionals are playing quite a tiny violin.
Altman said that misses the point: This is likely to affect everyone and trickle down to owners of $2 million and $3 million homes, “because everyone’s values are going to be lowered.”
Juliette Hohnen, a Beverly Hills-based realtor with Douglas Elliman, told Fortune that voters likely looked at this measure and thought “the rich should pay for it,” but this will also affect developers on the commercial side, too, and she’s worried about them leaving the state permanently. This could backfire: “We need more homes here. We don’t need people holding onto their homes and making them high-level rental opportunities.”
Hohnen said when she bought her own home, it wasn’t worth $5 million, but now it is and she won’t ever sell because of this tax. “My house is my biggest asset,” she said.
Jason Oppenheim, founder and president of The Oppenheim Group—the setting of Netflix’s “Selling Sunset,” has been an opponent of the measure from the start, calling it “ill-conceived.” Before diving into the measure on our call, he paused a few times, seemingly giving orders to his team while on the line. He told Fortune that before it went into effect, Measure ULA had already “drastically restricted development” in Los Angeles.
“Developers create microeconomies when they develop properties,” Oppenheim said, which injects millions of dollars into the economy. He said he sees development is now almost completely shut down because of Measure ULA, as it’s just not as profitable for developers.
Oppenheim said that makes it “no longer feasible for people to make enough money to want to develop.” That being said, it also reduces sales volume, lowers transactions, and reduces property tax revenue. These developers are going to develop in Beverly Hills, Newport Beach, or other cities where there isn’t a tax like this, Oppenheim said: “We’re losing all of that money that is injected into these microeconomies.”
“It’s very easy to avoid the tax, and guess who benefits? Beverly Hills does, L.A. loses,” Oppenheim said, adding that he wouldn’t consider selling any of his properties right now because of the tax. With the real-estate sector already headed in a “very difficult direction” with transaction volume slowing, “now the mansion tax will drastically slow sales in the luxury market, and almost crush any demand from developers, and you’ve got prices going down.”
Emil Hartoonian, managing partner at The Agency, agreed that once people understand the tax, buyers and sellers who don’t want to pay it will gravitate toward nearby, untaxed areas like Calabasas and Beverly Hills because “it’s a big pill to swallow,” he told Fortune.
Altman’s alternative, or at least what he considers to be a “fair tax?” A 1{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} tax across the board, from a $500,000 condo to a $50 million house, on profits. Oppenheim shared a similar sentiment, that he wouldn’t be “against, potentially, a 1{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} tax on all property,” to go towards reducing homelessness. But at this point, Altman thinks “there’s going to be a lot of inventory and that’s going to affect the market,” a mansion glut, if you will.
As the housing market continues to thrive in Sacramento, many homeowners are considering home remodeling projects to improve their living space and add value to their homes. Whether you own a Craftsman-style bungalow in Midtown, a contemporary ranch in East Sacramento, or a modern farmhouse in the suburbs, there are plenty of home remodeling projects that can enhance your home’s aesthetic and functionality. So, if you’re a homeowner in Sacramento and are looking to update and enhance your living space, keep reading to discover five valuable home remodeling projects for Sacramento homes.
It’s important to note that the median list price in Sacramento is $466,500, so comparing the list price of different home features can help you determine which upgrades will help you sell for more.
#1: Gourmet Kitchen
The kitchen is often considered the heart of the home, and a gourmet kitchen can take your home to the next level. A gourmet kitchen typically features high-end appliances, such as a professional-grade gas range, double ovens, built-in refrigerators, and custom cabinetry. In Sacramento, where the weather is generally warm and sunny, a gourmet kitchen is perfect for cooking up delicious meals and entertaining guests. You can also add a kitchen island, walk-in pantry, or breakfast nook to enhance the functionality and style of your kitchen.
Homes for sale in Sacramento that included a gourmet kitchen sold for a median list price of $659,888.
#2: Laundry Closet
A laundry closet is an essential component of any modern home. A well-designed laundry closet can help you save time and energy by making it easier to do laundry. You can install a stackable washer and dryer, overhead cabinets for storage, and a countertop for folding clothes. You can also add a sink, drying rack, or ironing board to make the laundry room more functional. No matter your home remodeling budget, there are plenty of ways to transform your laundry closet or room into a functional space.
Homes for sale in Sacramento that included a laundry closet sold for a median list price of $539,000.
#3: Walk-In Pantry
A walk-in pantry is a must-have for any food lover, large family household, or home chef. A spacious walk-in pantry can provide ample storage space for dry goods, canned goods, snacks, and other kitchen essentials. You can customize your walk-in pantry with built-in shelving, pull-out drawers, and adjustable shelves. You can also add lighting and flooring to make your pantry more functional and stylish.
Homes for sale in Sacramento that included a walk-in pantry sold for a median list price of $529,990.
#4: Large Living Room
A home feature that buyers living in Sacramento are seeking includes a large living room. As an essential area of any home, a large living room provides you with ample space to entertain or kick back and relax. If your budget doesn’t allow for a complete remodel to expand your living room, don’t worry. There are plenty of simple ways to make the space feel larger and more inviting. Consider adding a new fresh coat of neutral paint, utilizing mirrors, and picking out furniture that’ll enhance the space.
Homes for sale in Sacramento that included a large living room sold for a median list price of $524,900.
#5: New Roof
A new roof can improve the curb appeal and energy efficiency of your home. In Sacramento, where the summers are hot and dry, a new roof can help keep your home cool and comfortable. You can choose from a variety of roofing materials, such as asphalt shingles, metal roofing, or clay tiles. You can also add insulation, solar panels, or a cool roof coating to enhance the energy efficiency of your home. And if your roof is approaching the 20-year mark, you may want to add this home remodeling project to the top of your list, especially if you plan to sell your home in the near future.
Homes for sale in Sacramento that included a new roof sold for a median list price of $412,000.
Per home listing data on Redfin.com, as of March 2023.
