One of the country’s most expensive residences, the Hearst mansion, sold at a foreclosure auction on Monday for a bid of $22 million from New Stream Capital.  According to the attorney representing Veronica Hearst, the property will go back on the market so the creditor can recoup its investment.

The 20,000 square foot home was designed by Maurice Fatio and bought by Randolph Hearst in mid-2000 for $29.87 million, at that time the highest sale price on record in the state.  Hearst passed away six months later, leaving his widow Veronica without the means to maintain the property.

Veronica Hearst borrowed millions against the home’s value to pay for property taxes and renovations.  She sold 150 feet on the property’s south end for $6.2 million, explaining that potential buyers were uncomfortable with the considerable size of the home.  She stated that, with an older property – the home was built in 1929 – you can either destroy it or refurbish it, and her decision as the owner was to refurbish it.

However, to some, any change to the historic home is unacceptable.  According to one source, the daughter of the architect who designed the home says that any variation from the original design is wrong. 

The home is located at 1100 S. Ocean Blvd. in Manalapan, which does not have a preservation board that may have been able to block Hearst’s decision to split the lot if it had been designated a landmark.

According to the The Evans Report, compiled by Palm Beach real estate attorney Leslie Evans, single family home sales in Town are up.  In the report, Evans analyzes closing documents filed in Palm Beach County as well as private sales not recorded by the MLS.

Also included in the report is that average and median prices are up for the most part, and sales totaled more than $1 billion, an increase of $124 million.  Single-family home prices are up by $618,369; median sales prices are up by $400,000, and the total sales for single-family homes came to $725.75 million.

According to many players in the Palm Beach real estate market, prices on the Island are not dropping, which goes against the negative market trends in other parts of the country. In 2007, there were 93 single-family home sales in 2007 and 83 in 2006 – a 12 percent increase. The increase in sales price was also 12 percent for that time period.

Another Palm Beach broker points out that there were 7 sales in the month of December and 11 in January, information he gathered from the Palm Beach MLS.  Although this data is not a concrete indicator, since not all of the contracts have officially closed, he is confident that a high number of pending sales is still good news for the market.

The following article appeared in the February 1 issue of the Palm Beach Daily News.

Friday, February 1, 2008

Many home buyers in Palm Beach today are trying to sense where the bottom of the market is before they commit to a purchase.  Even so, they add, a well-maintained home that appears fresh and in good condition can certainly attract buyers.

"Palm Beach has always been a stable real estate environment, says Gordon.  "Many properties will experience a downward trend, because of overstated values or condition.  But overall, Palm each real estate should be a secure real estate market and provide a good long-term investment."

One key to selling a house is to remove all the negatives a buyer may find.  That means taking a proactive approach to both the interior and exterior maintenance of your property, Ray says.  "Your investment upfront to shape up your home should reduce the days on market."

Gordon offers a few suggestions to accomplish that goal.  boost curb appeal with fresh paint, a new front door, new pavers or landscape lighting.  Maintain and update your landscaping with fresh beds of flowers and new mulch.  Pressure-clean the roof, driveway and walkways.

Inside, remove clutter from shelves and cabinets, closets, the garage and major rooms to give the appearance of a clean, organized property.  Clean the windows.  Fresh paint, new carpet, clean tile grout or refinished hard surface flooring can make a noticeable impact.  Updated bathrooms, kitchen appliances, countertops and cabinets always add to the "wow factor."

When establishing a value of your property, trust your Realtor, adds Gordon.  "Understanding Palm Beach properties doesn't happen overnight," he says.  "Our company has been established in Palm Beach since 1986.  We have the experience and know-how, and we can help you determine the best approach to marketing and selling your property as well as establish a realistic market price.

 Visit Scott Gordon Realty at 255 S. Ocean Blvd, Manalapan; call 561-533-5888.  Or visit the web sites www.scottgordonrealty.com and www.exclusiveestates.info.