If you need an escape from the news of the day, here are a few interesting facts from the real estate world.
The Most Difficult Sale in New York?
An opulent multi-million-dollar mansion selling in Manhattan might not sound like big news. The uniqueness of 854 Fifth Avenue isn’t just the fact that it was modeled after the castle of Versailles; it is also owned by five separate countries. The 20,000 square-foot home was bought in 1946 by the Republic of Yugoslavia as a New York embassy. When the republic dissolved in 1992, the property suddenly had five co-owners: Bosnia, Croatia, Macedonia, Serbia, and Slovenia. Only recently did the five countries agree to sell. The arrangement makes for a difficult sale since all five entities need to sign off on an agreed price as well as field questions about the property. The co-ownership was such a bureaucratic challenge that a $50 million dollar offer eventually collapsed. As of this writing, the property remains for sale.
Living on a Meteorite Crater
The small Bavarian town, Nördlingen, was built inside a massive 15-million-year-old meteorite crater, 25 km in diameter. The circular layout of the city follows along the depression outline of the meteorite. It was only about fifty years ago when evidence emerged to show the true origin of what the town was built on. Previously the crater was thought to be created by volcanic activity.
The Local Meaning of Red
In Scotland, painting the front door red is a tradition that means the owner has paid off all their mortgage. In early America, a red door signaled to weary travelers that they could stop there for a safe and welcome place of rest. In feng shui, a red front door simply means “welcome.”
Biggest Price Drop Ever
Perhaps the most expensive listing in the U.S. was a 157-acre plot of land in Beverly Hills. The owner asked for $1 billion, but the land actually sold for a mere $100,000 at a foreclosure auction. The owner had accumulated $200,000 in debt, which the lender paid to take on ownership.
Cost of TV “Friends” Apartment Today
Many a fan of the ‘90s TV show Friends have tried to calculate what the famous purple apartment would be worth in today’s dollars. Remember, characters Monica and Rachel were able to pay $200 per month because of a rent-controlled lease passed down from a grandmother. Latest estimates say that a two-bedroom, one-bath apartment in New York’s trendy West Village today would have a price tag of at least $2 million.
Raze, Rebuild, Repeat
Japan’s housing situation is quite different than our own. Homes depreciate over time because there is so much pre-fab construction. Homes wear down faster and become valueless within 20-30 years, so the citizens tear them down and rebuild. Some predict this practice may shift as the notion of a second-hand, refurbished home becomes more practical in a declining growth population.
The Avocado Housing Hook
Sellers have tried various buyer incentives for years. One Canadian company played up a millennial stereotype by offering a year’s worth of avocado toast entrees at a nearby cafe. The buyer had to pay a $400,000 ($290,000 USD) price tag for a condo unit and received roughly $780 worth of avocado toast.
Mail-Order Homes Started Long Ago
Online DIY tiny homes are a seemingly new trend in real estate. But in the early 1900s, the once retail giant Sears began offering homes in its catalogs. The mail-order purchase included all the material and blueprints needed to build a house. The pieces arrived in the mail and fit together easily so that buyers could build the houses themselves or hire contractors. Buyers ordered everything from light fixtures to kitchen cabinets for inside the home. By the time the catalog was discontinued in 1940, Sears sold nearly 75,000 mail-order homes.
(Photo shows the interior of the 854 Fifth Avenue listing in New York, owned by five countries.)