Luxury markets and second home markets are more active than ever. The pandemic has turned hesitant shoppers into specific buyers, and many city dwellers have fled the city, resulting in a surge in real estate that continues to deplete real estate inventories at its most popular destinations. ..
Throughout the sunny, snowiest, and wealthiest regions of the Western Hemisphere, high-end developers are building as quickly as possible while fighting labor and supply shortages. As a result of the enthusiasm of this expensive home, demand has far outstripped supply and more buyers have agreed to withdraw money without looking at real estate.
According to a January survey released by San Francisco-based real estate agency HomeLight. 1 in 5 Over the last 12 months, US buyers have purchased an invisible home site.
Home shoppers competing for keys in the most desirable communities are making a fuss about buying soil to host their homes more than two years ahead. Realtors have to adapt to sell their imagination while those enthusiastic residents are looking for their golden ticket.
In fact, the market is so hot that some buyers are looking for ways to sell their position to buy a future home to another, and also for the opportunity to own a home to be built. ..
The resort acre of San Jose del Cabo at the bottom of the Baja Peninsula in Mexico is the epitome of this heated market. This development is one of 12 tree houses and welcomes guests’ exclusive customers to escape the hustle and bustle of the outside world. While on 25 acres of land, with everything from sunflower farms to mango orchards, residents and guests have the opportunity to participate in everything from rescue of local dogs to planting and harvesting.
Currently, the property has six villas and seven new homes are under construction for an estimated $ 3 million each. Nelson Reichert, Sales Director of Acre Villas, believes that the new building will hit the market long before it is completed.
“In this market, there is clearly more demand than supply,” Reichert said. “When people understand that fact, they are much more open to the idea that they are the only way. [to buy a luxury or second home] Get what they want before construction. “
“Buying faith is all about trust and trust,” he added. “Branded products make people feel at ease in the process, so those projects really worked. As explained, people trust that the product will be delivered on an established timeline. If they do, they can generally wrap their heads [buying a home that is yet to exist].. “
John Fair, managing director of Strand, a new private development company under construction in the Turks and Caicos Islands, believes that new buyers need to not only get used to future purchases, but also expect them. He confirmed that there was no lack of interest in any of the available properties, up to $ 2.45 million for a two-bedroom villa, $ 3 million for a three-bedroom home, and $ 10 million for a spectacular home. I am.
If there is a single sign of how active the luxury and second home markets are now, it is the accidental buyer reselling or flipping a home purchase long before it is built. It is a phenomenon. Although not legal in many areas, buyers often find a way.
Myles Newell, Principal of Waypoint Resort Real Estate, leads sales at The St. Regis Los Cabos Residences. He has not allowed practice on projects under construction along the southern Baja Peninsula, but has admitted that other developers have allowed it.
“Usually, contracts are transferable only with the approval of both parties,” Newell said. “Developers will never compete with resale inventory while trying to sell similar units, but often if the project is sold out or if the property does not conflict with the current offering. However, in most cases the original purchaser is obliged to close the property even if the subsequent purchaser does not close the property. “
Newell reports that this new flipping concept is made possible by new technologies that overcome buyer dissatisfaction, such as “I can’t imagine what this will be …” or “I want to use something now …”. doing.
“With current levels of 3D rendering and animation, it’s very easy to give buyers a realistic presentation of what they’re buying,” Newell explained.
Ryan Weinger, a sales manager just below the beach at Kibira Roth Cabos, a luxury home development linked to the Kibira Golf Club, understands how active the market is for some buyers. I know I can sell “in” in development.
“I can’t talk about the house with other developers, but for properties in development that I’m promoting, [flipping] It can definitely happen, “Winger said. “Our contract has provisions that give clients the right to transfer contractual obligations to anyone at a fraction of the purchase price.”
According to Weinger, this process means that:When the value of the property increases during the buildout and the client can benefit play It allows them to simply pay the fee and replace the new buyer’s name in the contract before delivery.
“Historically, only a small number of customers have exercised this right, but we expect that it will be used to see an increase as prices are rising rapidly due to changes in building material costs. “He explained. .. “In fact, I’m confident that more opportunistic investors are seeing this option as another reason to buy it in the current market.”