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September 1, 2014

Sticker Shock: $100 Million Listings Re-Emerge

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Sticker Shock: $100 Million Listings Re-Emerge

More than a dozen homes in the U.S. are now listed—some quietly—on the market for $100 million or more. That's more than the number that were listed during the peak of the housing boom in 2007, CNBC reports. 

"It's the most that I've ever seen," said Jonathan Miller, president and CEO of Miller Samuel, a real estate appraisal and consulting firm. "We're in this special period of time when nine-digit listings may not be commonplace, but they're certainly making their presence known."

With $100 million listings, the location of the property—often an oceanfront plot—is more the lure to buyers than amenities, brokers say. For example, a 314-acre Martha's Vineyard estate currently for sale for $118 million has more than 1,200 feet of ocean frontage, as well as a 35-acre freshwater pond. 

The priciest property currently on the market in the U.S. is also an oceanfront oasis: a 50-acre property listed for $190 million in Greenwich, Conn., that features 4,000 feet of ocean views, as well as a 12-bedroom Victorian home. 

But the sky-high price tags don’t always fly, and these homes don't always sell for that much. The former Spelling mansion in Los Angeles was originally listed for $150 million, but it reportedly ended up selling for $85 million. Also, a 95-acre Aspen, Colo., estate that was once owned by Saudi Prince Bandar bin Sultan originally was listed for $135 million in 2006—but eventually sold for $49 million. 

"There's been a perception that pricing over that threshold draws eyeballs to the property and gets it sold," Miller told CNBC, "even though the price may have little to do with its value."

Source: “$100 Million House Listings Are Back: Are They Worth the Price?” CNBC (July 17, 2013)