Many times when agents talk to each other they use the term “real money” to describe their buyers to the listing agent. We may say something like, “I’ve done some research, feel free to Google him, he’s real money.” This makes it easier to get an appointment to see many of the higher priced listings and it’s a funny way of letting the other agents know that’s what kind of players you often represent.
A few things about “real money” buyers — when you ask for verification of funds, they get back to you without delay. They are liquid enough to make the purchase with one push of a button or a quick phone call. They are also able to make the decision to buy without consulting with their business manger or trust overseer who could kill the deal. “Real money” buyers don’t need to consult anyone….when they see something they want, they act fast and aggressively.
It’s not like there is “fake money” people ….just fake people without enough money or who once had it and like to pretend they still have it.
We also get a fair share of people who just seem bent on pretending to be someone they’re not. 6 months ago, I got a call from a guy wanting to see $20m homes who claimed he was a CIA operative. Some quick research showed that he spent time in jail after pretending to be a high ranking army officer and sneaking into a NASA facility. He is listed in Wikipedia in the top ten imposters of all time…right below the “Catch Me If You Can” guy. I got a call last week from a girl who said she wanted to see some homes up to $10m on Malibu Road. Her conversational ability was extremely impaired and when asked how she could make such a large purchase she told me that she could afford it because she was Justin Bieber’s back-up singer and dancer. Those are extreme examples, but over the years you get a sense of who is real and who is not within a few minutes into a phone call.
Back to what real money is doing in Malibu: The market is seriously hot in the “trophy property” category. Another major estate sold in Malibu just last week making it the third transaction over $30m in the last few months. 27740 Pacific Coast Highway originally came on the market at $75,000,000 and rumor has it that it sold in the low $40m range last week. Title shows a transfer of ownership around Feb. 1, 2013 just a short time after it was withdrawn from the MLS. The home sits on the bluffs of Paradise Cove in an area that many would argue is among the most prime pieces of real estate in all of Malibu. From the MLS “A TRULY RARE GATED BEACH FRONT COMPOUND ON NEARLY 7 FLAT ACRES. ON ITS OWN PRIVATE BLUFF WITH UNBELIEVABLE PANORAMIC VIEWS OF THE OCEAN. PRIVATE ROAD TO THE BEACH. FEATURES MAIN HOUSE + 2 SEPARATE BARNS/STABLES, LARGE RIDING RING, 2 GUEST HOUSES, GYM, SWIMMER’S POOL, N/S TENNIS COURT AND GROUNDS THAT WILL LEAVE YOU BREATHLESS (REALLY). GUARDHOUSE, VIDEO SECURITY. AN AWESOME PARADISE.”
A few weeks ago, the biggest news was the sale of the Mark Hughes estate on Encinal Bluffs for around $100m to an unknown Russian buyer. Right before the end of the year, another major estate in the Paradise Cove area closed for around $36m.
What does it all mean? There is some seriously “real money” floating around and it’s sitting on the trigger finger of some fast moving buyers ready to make some major purchases. These sales will have a real effect on every property sitting on any bluff in Malibu. Those kind of numbers move the market and in the right direction. These three purchases alone may be responsible $100m or more in value to the immediate neighbors near these sales.
If you consider yourself “Real Money” then I’ve got some real time for you. Call 310 699 8428 anytime.
Tags: bluff, estate, malibu, paradise cove, real money, Russian buyers, sales