Frias Properties Managing Partner Chuck Frias represented the buyer in a $27 million residential sale at 205 Shady Lane that closed this week. In response, the Aspen Times published a story titled, "$27 million sale of Aspen home highlights demand for high-end residences,” which included commentary from other Aspen real estate brokers on how and why this home and other recent home sales are fetching prices over $20 million.
Aspen's single-family home sales through July 2017 are up 232 percent year-over-year, and this increased sales volume is largely due to 21 luxury residences fetching more than $10 million this year. The Aspen Times article cites the primary factor for these record sales as prime location and buyers' desire to be close to Aspen's best offerings.
"There's certainly a bigger divide each year between properties with superior locations or features, but that's not the whole story,” said Chuck Frias. "There are many factors that make Aspen so unique and desirable to sophisticated real estate buyers, many are the attributes of our community we all treasure including the natural beauty, arts, recreation, safety, access and size.”
According to Frias, the Shady Lane property carried a $27 million value because of its unique lot, located on 2.57 riverfront acres, less than a mile from downtown Aspen. With south-facing views of Aspen Mountain as well as flat, usable acreage, Frias noted that this is "the Picasso of Aspen lots.”
South-facing view from 205 Shady Lane, "the Picasso of Aspen lots." (Seller represented by Aspen Associates.)
"The knowledgeable buyers understand what is special and unique, and they're willing to pay for it, whether it's real estate, cars or art,” said Frias.
Frias noted the Shady Lane property's price was justified, but this type of sale (and the resulting commentary) can be misleading to sellers in the Aspen real estate market.
"These record sales can distort sellers' perception of their properties' value and cause a property to be overpriced,” said Frias. "If your property isn't truly unique, you should value it based on real comp sales and not extraordinary properties or asking prices. That being said, Aspen's popularity is at an all-time high, and there are buyers for properties priced correctly.”
Frias commented that this trend translates to the condo market as well with penthouse units commanding exceptional prices and lower-level units—even in the same building—sitting on the market for longer periods of time.
If all this sounds complicated, it is. The Aspen real estate market is highly nuanced and often buffered from factors that influence other major markets. It's always best to work with a trusted broker, but now, more than ever before, it's essential to work with a broker who can help navigate Aspen's intricacies.
If you're looking to sell your home or purchase an Aspen property, contact a Frias broker today. Our team has decades of experience connecting buyers and sellers, and we'd appreciate the opportunity to discuss your Aspen real estate goals.