With eyes fixed firmly on Wall Street and the proposed $700 billion bail-out, most of us are probably wishing we had gone to merchant banker school instead of whatever vocation we chose. I know I am - I can only imagine just how much of this money will end up being paid out as “consultancy fees,” to unemployed bankers with Manhattan mortgages to pay. In fact I think I will drop whomever ends up with the blank check book a line and see if they need a luxury real estate consultant. I promise to overvalue everything by at least 50%, suggest a 250% mortgage - 3% interest for 5 years and guarantee it will be worth that much by the time the interest rate goes up to 18%. And if that doesn’t work, we can just ask the fed for another handout.

Whichever way it falls, a look further westward gives an indication of the effects that are now starting to be felt in the luxury property markets. Tough times call for tough marketing, and Scott Franklund, President of Legendary Properties Sotheby’s International Realty, is hosting the Sotheby’s Fall 2008 Luxury Real Estate Sealed Bid Auction in Boulder, Colorado.

According to their press release, this luxury property auction will present over $16,000,000 in inventory, with, as far as I can tell, realistic opening bid requirements. These are not the type of properties one usually sees with a mortgage attached, and Mr. Franklund was eager to point out that this is by no means a foreclosure situation.

We feel that an event like this will help stimulate the luxury property sales in our area. We are spending upwards of $100,000 in marketing this event which will bring in buyers from all over the nation and possibly the world. This is not a foreclosure auction. The sellers are luxury property owners who are looking for a shorter sales cycle. Most homes will be available for viewing on dedicated Sundays throughout September and October. Scott Franklund.

One of the properties, Somerset Manor in Niwot, Colorado was previously listed at $7,395,000 - minimum bid is now $5,395,000.

Somerset Manor

Even some one with my rudimentary mathematical skills is able to work that out as a two million dollar reduction. In my opinion, much of the recent drops in sales volumes in the luxury market has been, at least in part, due to sellers holding out for unrealistic prices. It would seem Mr. Franklund has been able to dissuade at least some owners from that course. A far more realistic way of starting the ball rolling again than huge federal bailouts. The auction is by sealed bids only and the deadline is October 15, 2008 at 5pm. For more information on the properties offered, visit this site.

Sotheby’s International Realty announced Singapore will be home to its newest franchise. The new office, Singapore Sotheby’s International Realty, joins a Sotheby’s network of 8,000 sales associates in 400 offices worldwide. This event marks the continuation of a slew of new openings for Sotheby’s International Realty. Fledgling offices in Tokyo and Moscow have also joined their global nest of franchises.

The sizzling Singaporean luxury real estate industry is worth a look. In fact, real estate isn’t the only thing thriving in Singapore; it’s everything business. Just weeks ago the World Bank released its annual “Ease of Doing Business” report. Singapore, yes Singapore, topped the charts. New Zealand and the United States had to take a back seat. With a thriving business environment Singapore will continue its rapid accent into the luxury market.

Source: Realogy

Picture: Asianpassages