For sale: Nation's most expensive home
Prince Bandar's Aspen compound on market for $135 million

For $135 million you, too, can live like a prince.That is the asking price for the palatial Aspen compound of Prince Bandar bin Sultan bin Abdul Aziz, a real estate financier confirmed Tuesday. It is the highest real estate price in U.S. history, and possibly in the world, experts said. The price tag trumps Donald Trump, who had the previous highest offering on the national market, $125 million for a beachfront home in Florida.

Bandar is the former Saudi Arabian ambassador to the United States. His 95-acre Starwood Ranch property includes a nearly 56,000-square-foot mansion, and several smaller homes and buildings. The main home is larger than the White House, and includes 16 bathrooms, 15 bedrooms, stables, a tennis court, an indoor swimming pool, outdoor water features and a snowmelt driveway.Real estate agent Joshua Saslove said his brokerage is handling the sale through the real estate arm of Christie's, the exclusive auction house. Saslove, who previously represented the buyers of Hollywood mogul Peter Guber's $46 million property, is the regional affiliate of Christie's.He said Bandar regretfully reached his decision to sell the spread. However, the prince is spending too much time in Saudi Arabia, chairing his nation's new national security council, to enjoy his Aspen home."I have therefore concluded to allow some of the property to pass on into other hands," Bandar said in a statement he released through Saslove. The prince will retain ownership of some homes and property at the ranch.Bandar, 57, became his country's ambassador in 1983 and resigned the post in 2005. He began developing his land on Starwood Drive in the 1980s, and the main mansion was finished in 1990. Starwood is a gated subdivision on a mesa across from Buttermilk, off McLain Flats Road, between Aspen and Woody Creek.

The decision to sell also means the town will lose one of its best-known philanthropists. While he will no longer live here part-time, Bandar said he intends to still visit Aspen "from time to time and enjoy its unique natural beauty and the generous welcome of the Aspen community."The upper valley proved to be a welcome retreat during his 22 years of ambassadorship, he said, and he has always enjoyed his time here with friends, family, diplomats and other figures of renown."He has become very close to Aspen," said Saslove, a friend of Bandar's who has visited the home numerous times. "I'm sure he gave this [decision] considerable thought."The prince donated to many local charities and causes, including Aspen Valley Hospital, the Aspen Youth Center, the Shining Stars Foundation, Wintersköl and the Aspen Education Foundation.Unprecedented in Pitkin CountyBandar's main home needed special review from Pitkin County before its approval in the late 1980s, recalls Cindy Houben, community development director. The maximum number of bedrooms allowed at the time was five, she said. Bandar was "allowed to have a lot more.""The commissioners were the ultimate authority on the special review," she said. "There were tons of hearings on it because it was just such an enormous home that was being proposed."Saslove said it is a magnificent residence with many amenities, including ponds, trails and buildings for staff housing.There are "a considerable number of people" in the world who can afford the asking price, he said. The sale will be offered through the Christie's network and private marketing in the future. No immediate advertising is planned."There has never been a sale of that size in this area, and to my knowledge it is the largest single-family residential listing in the United States," Saslove said. And "maybe" the world, he said.It is definitely the nation's highest priced property, confirmed Nick Antonicello, director of sales at Unique Homes, a magazine that covers luxury real estate. But for how long is unclear.Antonicello said there is speculation that the widow of TV mogul Aaron Spelling will put her 56,500-square-foot mansion in Los Angeles on the market for $150 million.But that property is on only six acres, as is Trump's Florida property. Given the acreage at Starwood Ranch, Rich Wagar of Rich Wagar Associates said he was surprised Bandar's asking price isn't more.Wager represents the sellers of a home on Central Park West in New York City that is about $5,500 a square foot. Wagar noted Bandar's mountain palace is on the market for $2,400 per square foot."I know it comes with a fair amount of land so [the price] is not too bad from that standpoint," he said. "The hard part is, how many people want to spend $135 million? How many people need 55,000 square feet?"However, it only takes one."Bob Starodoj, president and CEO of Mason & Morse Real Estate, predicted Bandar's land will be tough to sell."It's a very personalized, specialized property," he said. "I'm not sure what you do with that. My sense is the only guy who's gonna buy it is some guy who's in the same financial stratosphere as Bandar."And the number of such people is apparently increasing. Wagar said the number of billionaires he speaks with now is "phenomenal compared to how many I used to come into contact with just 10 years ago."Not a billionaire? Don't despair, Wagar said.But "you're going to be $500 [million] net worth or above before" the Starwood Ranch is a consideration for you, he said.Saslove said the premium end of the real estate sector remains active.And "there is only one Aspen, Colorado," he said. "These people have a choice. With their wherewithal to spend their time in any place in the world, they choose Aspen.

"Top-dollar digs

Price: $135 millionWhere: AspenWhat that gets you: A home fit for a prince. Bandar's place comes with about 56,000 square feet, more than 30 rooms, indoor pool, trails, employee living quarters and stables on 94 acres.

Price: $125 millionWhere: Palm Beach, Fla.What that gets you: Donald Trump's property is on six acres with 475 feet of Atlantic Ocean beachfront. The home has a 4,100-square-foot conservatory, media room, library and three pools.

Price: $75 millionWhere: Bridgehampton, N.Y.What that gets you: A 25,000-square-foot estate that includes a U.S. Golf Association-rated golf course, 14 gardens, and a grass tennis court.

Price: $70 millionWhere: New York CityWhat that gets you: An 11,000-square-foot penthouse with 360-degree views of Manhattan.Price: $68 millionWhere: Belvedere, Calif.What that gets you: An estate that sits on 1.1 acres of land overlooking the Golden Gate Bridge, San Francisco and the Bay.

Source: Unique Homes Chad Abraham

Paying the mortgageWondering if you can afford Prince Bandar's $135 million mansion? Here are some figures to help put it into perspective.We'll start with 10 percent down, or $13.5 million. That drops the principal down to $121.5 million.For a 30-year mortgage at an interest rate of, say, 5.75 percent, your monthly payments would only be $709,041.

The Mortgage Market View...
by John Sauro North Atlantic Mortgage


Fed Discount Window Cut - What does it mean for you?
The Federal Reserve has taken significant action in the last few weeks due to the credit crunch. And now they've made an unexpected move by cutting the discount window rate, which is great news. We'll get to that in a minute, but first let's look at recent events and understand what they mean.
Market movement
To date, over 120 mortgage companies have closed their doors due to reduced liquidity. The result: borrowers who want to take out non-conforming loans have fewer, more expensive options.
Many media outlets have incorrectly added fuel to the fire by stating mortgage lending has stopped altogether and borrowers can't get a loan without a 20% down-payment. This is not true.
Conforming interest rates and loan programs, those backed by Fannie Mae and Freddie Mac, have not been significantly impacted by recent events. Even better, interest rates have come down from recent highs. While this is good news, the market is experiencing unprecedented volatility and changes could come at any time. Borrowers need to act swiftly and decisively in today's climate.
What did the Fed do?
Now back to the discount rate. This is the interest rate charged to commercial banks and other depository institutions on the loans they receive from their regional Federal Reserve Bank's lending facility. The Fed's decision to cut this rate provides stability in the financial markets and this can be good for all of us.
How exactly does this provide stability? Here's an example: imagine you just wrecked your car and it requires $5,000 worth of repairs. You have a short-term need for cash to pay your mechanic. Even though you know you will eventually be reimbursed by your insurance company, you still need the cash now. So, do you sell off stocks to get the cash, or tap into an equity line of credit? Most likely, you draw from that line of credit rather than liquidating a long-term investment.
This is what the banks are facing in today's liquidity crisis. And Bernanke's move helps them avoid long-term damage by supplying access to short-term cash.
It's important to note the discount rate is different than the Fed Funds Rate, which directly impacts interest rates you pay for Home Equity Lines of Credit, credit cards, and automobile loans. Most importantly, the discount window rate cut does not directly impact home loan rates.
What should you do now?
Information, knowledge, and expertise are the building blocks of sound financial decision making. If you are considering financing or are in the process of financing a home, you should tap into the knowledge and resources of a skilled mortgage professional. I would welcome the chance to help you navigate these choppy financial waters.
And even if you are not presently planning on any home financing - it still pays to make sure your credit score is as high as possible, in case a credit or lending need does come up before you expect it. Again, please feel free to contact me - I am ready to help on all fronts.

Sales of Existing Homes Stable in July

August 27, 2007 - Existing-home sales were essentially unchanged in July, with increases in the West and Northeast offset by a decline in the Midwest, the National Association of Realtors® (NAR) reported on Aug. 27.
Existing-home sales slipped 0.2% in July to a seasonally adjusted annual rate of 5.75 million units from an upwardly revised pace of 5.76 million in June. They were 9% below the 6.32 million-unit rate of a year earlier.
"Home sales probably would be rising in the absence of the mortgage liquidity issues of the past two months," said Lawrence Yun, the association's senior economist. "Some buyers with contracts have been scrambling when loan commitments did not materialize at the last moment, while other potential buyers are simply waiting for the mortgage market to stabilize."
The total housing inventory rose 5.1% at the end of June to 4.59 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, up from an upwardly revised 9.1-month supply in June.
"For buyers able to qualify for conventional financing, there are ample opportunities in the current market," said NAR President Pat V. Combs. "Availability and pricing of conventional loans are reasonable, and FHA-insured mortgage applications have been rising as low- and moderate-income buyers seek alternatives to subprime loans. If buyers are in it for the long haul, now can be a good time to get into your home."
Regionally, existing-homes sales rose 1.8% in the West to a rate of 1.12 million and 1% in the Northeast to a rate of 1.02 million. They remained unchanged in the South at an annual rate of 2.26 million and fell 2.2% in the Midwest to 1.35 million.

Brad Pitt joins Global Green and The Home Depot Foundation to Rebuild in New Orleans

Produced by: Glenn Hunsberger and David Vos, This Old House television, August 2007 -->


On the eve of Hurricane Katrina's second anniversary, Global Green USA toured progress of their first affordable green home under construction. The Holy Cross project is one of the first new home construction projects to be built in the Lower 9th Ward. It is being built with green products and energy efficient systems that will be included in the completed project of five single family homes, an multi-unit apartment complex, and a community center/Sustainable Design and Climate Action Institute. Here, Brad Pitt (initial sponsor and chair of the sustainable design competition jury), Global Green USA, and The Home Depot Foundation (lead funding partner) unveil the final design.
"What happened two years ago was a man-made disaster, and this building offers a man-made solution. This home proves we can build more thoughtfully, affordably and provide a better quality of life for the families within," said Brad Pitt.

What Green Building Means
by Kimbrough Gray

There's a lot of talk in real estate about green building lately, but the phrase is still a little vague. Here's a guide to understanding a few key terms, so you can investigate whether or not a potential home is truly eco-friendly.
Insulation and Building: Many new buildings are insulated with recycled materials, such as old blue jeans or blown-in fiberglass. Proper insulation now goes a long way toward saving on energy bills later. Walls can be made of steel and concrete, rather than more expensive and volatile treated wood. Many cities have lumber yards and "re-stores" where you can buy recycled or left over building materials that are strong, cheap, and often antique or authentically vintage.
Appliances: Look for low flow showerheads and low flush or composting toilets. Consider energy saving washers and dryers, or put a line in your yard to hang wet clothes on sunny days Make sure your HVAC unit is sealed and clean, and look for gas stoves and instantaneous, or tank-less, water heaters.
Flooring: Rather than use expensive hardwoods that endanger the land and deplete forests, many real estate builders have found inexpensive and beautiful alternatives in bamboo (which is technically not a wood but a grass, and yet one of the hardest and most easily replenished flooring materials) and cork (also easily replenished). Concrete, too, can be a sturdy and inexpensive alternative, as can old-fashioned linoleum, which is actually made from linen and other natural fibers.
Paint and Other Materials: Many paint manufacturers are looking for green alternatives to oil and latex; one such option is the use of milk-based paints (which upon application smell like milk instead of harsh chemicals, and which don't have any carcinogenic ingredients.) Recycled glass is being made into kitchen and bath tiles, and countertops are being made with recycled materials that look even more beautiful and unique than mined granite.
Solar Energy: Solar energy doesn't just mean expensive panels that sit on your roof (though that's one kind, called active solar energy). Considering a solar home can mean investing in thick-paned, glazed windows or in more photovoltaic cells that are complicated. Though solar tends to be an expensive investment, upfront, the rewards show up every month in your energy bills.
Landscaping: Look for Xeriscaped yards and common areas with plants that require little watering. Consider getting rain barrels (many cities sell them through their water and energy programs) or converting your outdoor water system to "graywater" (which involves using recycled water from dishwashers and washing machines to water your lawn or wash your car). Looks for trees, native to your area, and plant them so they shield your windows from too much sun during hotter days. Neighborhood:While a lot of green building means being aware of what is going into your home, you might also want to check out your neighborhood. Are there recycling programs or community gardens? Public transportation? Bike paths so you can have the option of avoiding traffic? Are there shops and restaurants close to you, to encourage walking? While thinking about these things may seem unimportant now, our global climate and community with thank you later. (Oh, and don't forget the federal tax deductions.)

About the Author: Ki Gray is the broker for Escapesomewhere Austin Real Estate in Austin Texas. His website offers a free Austin MLS search as well as statistics, downtown condo descriptions, and neighborhood profiles of the local Austin real estate market.

Finding right home means making tradeoffs
By Dian Hymer




You want the home you buy to include certain features, but you're not likely to find all of them in one house for the price you'll be willing to pay. You can compromise on location, home features such as size, condition, price, or all of these. Just make sure that the tradeoffs you make are carefully considered and that they don't compromise your quality of life.
For example, let's say you want a single-family home and you want an attached garage with inside access for convenience and safety. You also want to be close to an urban center where you can easily shop and take care of routine tasks quickly.
After looking awhile, you find that most of the homes in your top-choice neighborhood have detached garages or no garage at all. A compromise might be to buy a condo or townhouse in the area that has built-in parking. You swap a single family-home for a condo. But you get the area, convenience and security, all of which are also high on your list.
Another option might be to consider adding on a garage to a single-family home that doesn't currently have one. This could be a reasonable solution if the lot will accommodate it and if you can afford to add on and are up for the challenge. Again, it's a tradeoff if you were looking for a home that you could move right in to without doing work.
HOUSE HUNTING TIP: Generally, it's not a good idea to buy a home that needs major alterations in order to make it suit your needs unless you're willing to live with it as is if you discover that you can't do what you want. The cost could turn out to be prohibitive. Or, you might find out that you can't get your plans approved by the local planning department.
It's wise to consult with the planning department and with a local architect and contractor who have experience working in the area about the feasibility of getting approval for the renovation you envision before you solidify a purchase contract.
For example, the city of Piedmont in the San Francisco Bay Area has strict design-review requirements that must be met before obtaining approval for modifications to the exterior of a house. One Piedmont home buyer bought a modest fixer-upper that he envisioned turning in to an impressive place over double the size. The city turned the plan down.
City planning department officials are often swayed by neighbors' opinions about major remodel projects. This can cause delays. Sometimes plans need to be revised, which means you might not get what you wanted, and in any event it ups the overall cost of the project. Some plans are never approved. You don't want to find yourself selling a few years after spending a lot of time and money for nothing.
Often affordability keeps buyers from finding what they want. If you're not willing to give up on location, you may need to accept a smaller-than-ideal-size home or one that has deferred maintenance. This may be a reasonable tradeoff because homes in prime locations tend to hold value and appreciate over time due to high demand. Just make sure you don't buy a house that is so small that you'll want to move again soon. Moving a lot costs a lot.
Prime pieces of property with wonderful settings, level usable areas, sunshine and privacy are always in high demand. For property like this, a good tradeoff might be accepting a house that needs work.
THE CLOSING: You can usually improve the condition of a house. It's far more difficult, if not impossible, to change the character of the land.
Copyright © 2007 Inman News - Dian