Dennis Norman
This week,Cher’s former Miami Mansion,which was purchased back in 2006 by Sean Wolfington,sold for $10.45 million –close to $2 million more than its sale price at the peak of the market,according to ONE Sotheby’s. So while most of the real estate market has been negatively impacted by the burst of the housing bubble,here is proof that there are at least some homes that have increased in value during the same period.
High-end celebrity-owned real estate sales,whether previously or currently held,are surprisingly strong with prices reflecting a steady increase. “There’s a shortage of trophy properties on the market and we are seeing an increasing number of wealthy foreign buyers from Latin America and Europe looking to capitalize on the weak U.S. dollar,”said Daniel De La Vega,Broker of ONE Sotheby’s Realty.
One-of-a-kind waterfront properties have always held their value and this home’s celebrity cache most definitely helped it stand out in a crowd. “Everyone in Miami knows the home as the ‘Cher House‘”,said Jorge Uribe –Senior Vice President at ONE Sotheby’s International Realty,who sold the home to the Wolfingtons in 2006,and recently sold it to the new owners. “The celebrity factor of the house definitely helps,but the nicest properties will always have a demand which makes them partially immune to the recession.”
“The laws of supply and demand will always apply –especially when you are dealing with a unique and exceptional piece of waterfront property. The oldest rule in real estate is Location Location Location and Cher’s former home was built on Mashta Island,just off of Key Biscayne Island,”said Jorge Uribe. “A lot of people told me to lower the price by 20% –30% because everything was down,but I advised my client to be patient. In the end,the new owners paid a great price for one of the most unique properties in Miami and they will most definitely see similar appreciation that these one-of-a-kind properties always enjoy.”
Ok,Ok,I know…you want to see pictures of the “Cher House”,right? If you do click here for the photo tour.
So,there you have it. Sure-fire advice on how to avoid the next real estate housing bubble burst or recession;go out and buy yourself a celebrity mansion,preferably water-front. Oh yeah,it would be a good idea to win a lottery also…prior to buying…
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- The real value of a house
