The brand is not the product. The operating agreement is, and it is the document nobody reads before offering.
A decade ago the branded residence was a Miami curiosity. It is now the default way the top of several American markets transacts, and buyers arriving from Europe consistently misread what they are buying. The brand is not the product. The operating agreement is.
What you are actually paying for
3 things, in descending order of what they are worth. First, staffing you could not economically hire for a single house: 24 hour front desk, engineering, housekeeping on call. Second, a maintenance standard enforced by a contract rather than by a residents committee, which is why these buildings age better than their neighbours. Third, the name on the door, which matters most on resale and least while you live there.
The questions to ask before you offer
- How long the operating agreement runs, and what happens when it expires. A brand can leave
- The monthly charge per square foot, and what it has done over the last 5 years
- Whether services are bundled or charged separately, which changes the real running cost considerably
- Rental restrictions, if you intend to let it when you are not there
The clause that catches people is the first one. A residence carries the brand for as long as the operator stays, and the operator stays for as long as the agreement runs. Buildings that lose a flag do not simply become anonymous, they lose the premium that justified the purchase price.
Does the premium hold
Broadly yes, on the evidence so far, but the premium is against comparable new build in the same submarket rather than against the market as a whole. A branded tower does not beat a scarce piece of land. It beats the unbranded tower next door, which is a narrower and more honest claim than the marketing usually makes.
General guidance. Terms vary enormously between developments. Have a US attorney read the operating agreement and the condominium documents before you commit.