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Is Marijuana the Secret Ingredient for a Luxury Real Estate Deal?

September 27, 2019, Posted By: Richard Simon
Luxury Real Estate

When it comes to luxury real estate, living the high life has taken on new meaning. The legalization of cannabis has added a new level of enticements to lure people into open houses and make the luxury real estate transaction a little more laid back. And of course, the competition in this market is always competitive, which means luxury agents are always looking for a new way to draw attention to their properties. So, how does marijuana fit into the luxury real estate deal?

Legalized Marijuana

States with legalized recreational marijuana make it easy for real estate agents and even developers to jump on the bandwagon. When you think about rose-colored glasses, nothing makes things more beautiful than marijuana! It almost seems too easy to think about getting people high to help them feel more comfortable about making a purchase. Of course, this isn’t the sales tactic luxury agents are using.

For agents, it’s more about using marijuana as a theme for luxury open houses, while developers are including cannabis “features.”

Cannabis-Related Tactics 

Here are some examples of how agents and developers are using marijuana successfully:

  • Open House: An agent in California sold his $3,495,000, six-bedroom listing just three days after throwing a cannabis-themed open house. The Rodeo Realty agent included massages using cannabis oil, seminars on harvesting marijuana and edibles. He used a marijuana plant in his real estate images to attract buyers, one of whom put in an offer. The Sherman Oaks home had all the luxury perks including an outdoor pool with waterfall, indoor theater and cabana.
  • Eds and Meds: In Hollywood, a 200-unit luxury tower held a CBD-themed rooftop pool party. In this case, guests were shown how to create their own cannabis-infused pain meds and edibles. The units in the building ranged in price from $3,380 to $5,295 per month.
  • Cannabis Conservatories: In the communities of Beverly Hills, Brentwood, and Bel Air a luxury developer built “marijuana mansions” that include a “cannabis conservatory.” The conservatories feature a secret entrance, ventilation and hydroponic cultivation galleries. The units will sell for $30 million to $40 million.

These are just a few examples of how marijuana is sliding into the luxury real estate market.

No Smoking

Of course, marijuana won’t appeal to everyone. Many agents will find more health-conscious clients lack interest in pot culture. Therefore, using marijuana as a selling tactic won’t work for everyone. In fact, there is a negative stigma associated with marijuana even though it has proven to be positive when it comes to property values.  

“Higher” Property Values 

No pun intended, but in cities where recreational marijuana sales are legal, homeowners can see increases in property values compared to areas where it is still prohibited. Clever Real Estate found that where recreational cannabis is legal, the states enjoy immediate increases in home values even before dispensaries open in the area.

Home values increased by $6,337 where marijuana is illegal between 2017 and 2019. Meanwhile, homes in areas in close proximity to dispensaries saw an average increase of $22,888 per home between 2014 and 2019.

Of course, there’s also the commercial property aspects of legal cannabis, but that’s a whole different story.

A Title Company with Cannabis Experience

New Home National Title is a title company with two feet planted in the now, and all eyes on the future. Rather than adhering to what’s “traditional” and “normal,” we welcome change and evolution at every turn.

For more information on our work with cannabis real estate, contact us today.

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