2023 has seen a particularly high percentage of sales going towards off market properties over $20M. In 2023 YTD (10/14/23), sales of properties over $20M represented 61% of all Aspen sales dollars and 20% of all unit sales.
Since the beginning of the pandemic, these sales have spiked dramaticially:
> In 2023 YTD, off market sales of properties over $20M made up 52% of dollar sales and 56% of unit sales of the total sold properties over $20M.
> In 2022, it was 36% of dollar sales and 32% of unit sales of the total sold properties over $20M.
> In 2021, there was just (1) sale off market over $20M.
> In 2020, there were (2) sales off market over $20M.
Why List?
Traditionally, the argument for listing a property has been that you expose your property to the maximum audience which will generate the best and highest price a buyer is willing to pay knowing there are (at least in theory) other competitive buyers circling. In a national and international marketplace such as Aspen, where buyer(s) may be reached beyond more narrow geo-targeting of audiences, this “shotgun style” strategy is reasonable and realistic. And, it’s successful.
Reasons for the increase in off market sales over $20M?
For Buyers: Low inventory of high luxury product makes buyers search more aggressively, high and low, and for any opportunities listed and not listed.
If you can’t find what you want in the obvious pool, go beyond and look for the not-so-obvious. Flush it out.
Buyers want what they can’t have. They like the idea of finding something no one else knows about. It adds to a sense of rarity, scarcity – “I have what you don’t”, and perhaps elitism and cachet. They like the sense of ‘insider edge’. If money can buy anything in a land of ‘billionaires’, intel may trump all.
For Sellers: Sellers at this price level like the privacy; they like the ‘prestige’ element of not running with the herd, the masses; like buyers, they appreciate the sense of ‘insider edge’; they like the idea of, “Make me an offer I can’t refuse.” or perhaps better said, “Give me a make-me-move price”; and finally, they’re not bidding against themselves by setting a list price.
The Stats: Properties Sold off market above $20M: 2023 YTD – 2019
2023 YTD solds over $20M (Jan 1 thru Oct 12, 23)
Click images to enlarge
Sold off market = 13
Sold on Market = 12
Total sales Over $20M = 25
Sold off market = 13:
Follow this link to see the page: https://www.flexmls.com/link.html?1r6nzopcsk6l,2,1This link is valid until 11/13/2023.
2022 solds over $20M
Click images to enlarge
Sold off market = 8
Sold on Market = 17
Total sales Over $20M = 26
Sold off market = 8:
Follow this link to see the page: https://www.flexmls.com/link.html?1r6nzozls8yj,2,1 This link is valid until 11/13/2023.
2021 solds over $20M
Click images to enlarge
Sold off market = 1
Sold on Market = 12
Total sales Over $20M = 13
Sold off market = 1
Follow this link to see the page: https://www.flexmls.com/link.html?1r6nzp4n3tqg,2,1 This link is valid until 11/13/2023. [169833]
2020 solds over $20M
Sold off market = 1 sale: at $21M [Not entered in the MLS after the sale]
Sold on Market = 0
Total sales Over $20M = 1
2019 solds over $20M
Sold off market = 2 sales: at $24.2M and $23M
Sold on Market = 0
Total sales Over $20M = 2
Sold off market = 2
Follow this link to see the page:https://www.flexmls.com/link.html?1r6nzpcnxu6v,2,1 This link is valid until 11/13/2023.
Date posted: 10.16.23
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Use is permitted subject to the following attribution with a live link to the source: The Estin Report on the Aspen real estate market
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