Homes that are indeed castles: for those with the cash, an average $47 million buys one of America's luxury estates

0 Comments | Insight on the News, June 24, 2002 | by Jennifer Harper

Lush carpet, granite counters, mammoth closets and a bath out of Babylon: What American hasn't pondered the million-dollar home, in all its domestic splendor? But what about the $75 million home?

At 445 times the price of a typical new house, it represents extreme real estate in all its domestic excess. The sprawling, whitewashed monster lords over 13 beachfront acres in Palm Beach, Fla.--complete with a 44,000-square-foot main house, two swimming pools, movie theater and more.

A real-estate reality check reveals that the median price for a new home in the United States is $169,000, and its average size is 2,225 square feet, according to the U.S. Census Bureau and the Department of Housing and Urban Development. The median price of an existing home is $139,000. Meanwhile, the owner's $75 million asking price on the Palm Beach property is "firm," according to Sotheby's, which is managing the sale.

"It's not a base need for shelter which motivates buyers of million-dollar properties," says Matt Haber, director of Luxury Real Estate, an online compendium of dazzling properties (www.luxury-realestate.com). "Acquiring something this monumental is really fulfilling a dream for some people. The house is the symbol of success. And when you have a 20,000-square-foot home to look after, it is also a hobby, an avocation."

While the luxury-home market trembled after the dot-com crash and Sept. 11, it is still decent, catering "more toward old money than funny money," Haber explains. And what money! According to Forbes, the average price on its 2002 list of America's most expensive homes "dropped" from $52 million last year to $47 million this year.

A $95 million Los Angeles property occupies the top spot, owned by Gary Winnick, founder of the fiber-optics firm Global Crossing--now bankrupt and under investigation by federal agencies. Winnick bought the property from a real-estate tycoon in 1999--complete with a 33-room house, which he had razed. Now he is rebuilding what Forbes speculates will be "the most expensive single-family home in the U.S."

There's more. In the current market, $62 million fetches three floors in Manhattan's Trump Tower--now converted into one colossal apartment with a 360-degree view of the city. And $50 million is the asking price for "Eothen," a clapboard Colonial on a Long Island beach that counts the "cool factor" as part of its asking price. The isolated home once belonged to Andy Warhol, who bought it for $220,000 in 1970.

And there's still more. A nice $45 million spot in California's Hidden Valley awaits a buyer, as does a European-style manor just down the road from Bill Gates' place in Medina, Wash., also $45 mil. A lowly $35 million buys a four-bedroom house in Scottsdale, Ariz., with seven baths, a six-car garage and 24-karat gold fixtures.

Are there any buyers for such princely abodes? Yes, indeed. Nevada-based Chase International Distinctive Properties just sold something called the Bourne Estate, on Lake Tahoe, for $33 million. The lawn is so huge that it was used as the opening-scene backdrop for the 1960s TV Western Bonanza.

JENNIFER HARPER WRITES FOR Insight's SISTER DAILY, THE WASHINGTON TIMES.

Home Exchanging

Vacation kitty looking a little thin this year? Consider home exchange, the practice of casually brokering an even swap of houses, automobiles, even pet care between like-minded travelers during a prearranged period.

Interested singles, couples or families often join home-exchange companies that guide them in pinpointing destinations and arranging potential exchanges. Advocates say vacationing this way provides all the comforts of home with no hidden tolls.

The idea was conceived by a group of European schoolteachers who decided to create a summer traveling network, swapping homes with other teachers. Now 20 or 30 groups, mostly online, cater to the general home exchanger. People typically pay a nominal annual listing fee, develop a descriptive profile of their home and indicate amenities and nearby attractions.

Several home-exchange companies are accessible on the Internet:

* www.intervac.com is the Website of Intervac International, which has contacts in a number of countries. Phone: (800) 756-4663.

* www.homexchange.com is the Website of the International Home Exchange Network, based in Orlando, Fla. Phone: (386) 238-3633.

* www.exchangehomes.com, based in California, offers a newsletter and advice. Phone: (800) 848-7927.

* www.digsville.com, a trendy-looking site out of New Jersey, offers dos, don'ts and other advice from specialists. Phone: (800) 974-6860.

* www.trading-homes.com, California-based, includes sections on travel resources. Phone: (800) 877-8723.

* www.swapnow.com is the Website for HomeLink USA, part of HomeLink International. Phone: (800)638-3841.

ALEXANDRA ROCKEY FLEMING WRITES FOR Insight's SISTER DAILY, THE WASHINGTON TIMES.