The real estate prices are the real indicator of the health of an economy. It was the crash of the real estate prices that triggered the economic down turn. The prices in the sector are still prevailing at 30% lower than the peak 2006 prices when the economy was booming. Some experts believed that the ultra luxury homes segment was less affected by the downturn but there are examples that prove their assessment wrong. Tranquility estate on Lake Tahoe, Nevada was listed for an asking price of $100 million in 2006. The price for the unsold property has been scaled down by 25% to $75 million.
Tommy Hilfiger co-founder Joel Horowitz, owner of the property realized that he has to get in line with what has happened to the real estate market if he wants to sell it. Sue Lowe, a Chase International agent who is handling the sale believes that you have to match the prevailing prices. Though, evaluating the 210 acre estate is not simple. Horowitz and his wife bought the property in 1997. They invested a lot of time, energy and money in constructing a fantasy home. The result is a 20,000 square foot home mansion overlooking Lake Tahoe.
The main residence on the estate has borrowed the best elements of design from several iconic buildings. The main staircase is a replica of the Titanic’s staircase. The cigar lounge is a variation on New York’s St. Regis Hotel. New York Public Library floor design has been incorporated with good effect. There are elements of a 17th century French property in the dining hall. The estate boasts of a private lake of its own, seven additional buildings apart from the main residence, an art studio, boat house, gymnasium with indoor basketball court and horse stable. The estate also has two par 3 golf holes, a 16 car garage, an indoor pool and a 3,200 bottle wine cellar. It is definitely the high end of ultra luxury segment and yet has to struggle with its pricing. With the current trend of attracting a buyer with an expensive gift this property will require the gift of a private jet to attract a buyer.