How To Sell in Just 45 Days as Luxury Market Slows

"Why is my luxury property listing not selling?" 

It is very likely that your luxury real estate market is slowing down, especially if you're in New York, San Francisco, Miami, Aspen, Hong Kong or London. Asking prices are falling, average days on market are climbing. Case and point…

  • 24% Increase - Days on Market, Manhattan1
  • 19% Decrease - List vs. Sold Price2
  • 30% Increase - Days on Market, California3

Turbulence in overseas stock markets, falling currency values, low oil prices and varying economic outlooks have all impacted the demand for high-end mansions, penthouses and vacation properties around the world. During the Institute’s 2016 Leaders in Luxury event, Maverick Commins, recipient of the Listing Achievement Award, examined an emerging paradigm shift within the luxury market to combat this slowdown.

“Once reserved for rare artwork (Monet nets record breaking sale for $81.4 Million at Christie’s auction) and classic cars, luxury real estate auctions are now an integral tool for the market’s top agents,” said Mr. Commins, CEO of Supreme Auctions®. “Agents that do not explore this process not only lose their luxury listings that continue to sit, but miss opportunities altogether where agents offer a luxury auction option upfront as a differentiator.”

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Christie’s Record Breaking $81.4 Million Monet

We’re hearing directly from owners who are attracted to an auction’s accelerated sales process, which reduces holding costs and eliminates the uncertainty of when their home will sell. Qualified buyers are drawn to the opportunity, knowing they can bid at their price with the certainty that the property will sell. Auctions produce results, while agents retain their full commission at the close of escrow (with Supreme).

If you have a luxury property that is not selling, or you want to add another tool to differentiate yourself from the growing competition, we invite you t0 explore the accelerated marketing method of a luxury real estate auction. Here's where you should start:

  1. Search for companies with a stellar reputation, cutting edge marketing programs and a successful track record.

  2. Ask for references and make your selection based on facts, integrity, trust, experience, and results.

  3. Do your due diligence, as not all auction companies are the same.

The auction process has been around for centuries but the methods of marketing a luxury real estate auction are changing at a rapid pace. Don’t miss this growing paradigm shift and learn how the messaging and benefits of an accelerated sales process can offset a slowdown within the luxury real estate market.

 


As a Member of the Institute working in the top tier of the luxury market, Supreme Auctions would like to offer you a complimentary property consultation, including a detailed luxury real estate auction orientation. Supreme-Auctions, the industry’s leading auction firm, offers the most current systems, resources and experience to make sure your real estate auction experience is an exceptional one.

Call (866) 929-2243 or visit www.supreme-auctions.com today for your complimentary copy of “The Ultimate Guide To the Luxury Auction Process.”

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About Supreme Auctions

Supreme Auctions is a leader in luxury real estate property auctions, providing proprietary accelerated marketing services unique to each distinctive property represented and sold. With 15 offices across the United States including Hawaii and an office in Costa Rica and London, UK, the company has a dedicated team of auction marketing professionals that provide decades of expertise, integrity, and knowledge. Supreme Auctions provides the highest level of service to both sellers and buyers of multimillion-dollar luxury properties by combining experience with the most current technology and marketing resources. The company offers sellers and luxury brokerages nationwide the appropriate auction strategy to ideally suit each exclusive property, providing services that are unparalleled in the real estate auction industry.

Maverick Commins Wins Listing Achievement Award

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  1. Properties $4+ Million, 2016 vs. 2015 – Olshan Realty Inc.
  2. 2015 Luxury Sales – survey of top sales in 100 luxury markets worldwide
  3. $3+ million, Q1 16 vs. 15, California Association of Realtors in Los Angeles

The 2016 Leaders in Luxury Marketing Awards Winners are...

More than 100 of our members gathered in Tucson, Arizona Monday night to celebrate another competitive year and recognize the winners of the 2016 Leaders in Luxury Marketing Awards.

These awards recognize luxury real estate professionals who demonstrate a successful combination of creativity and proficiency in marketing upscale residential properties. 

The waiting is over! Please join us in giving a round of applause to the winners.

  • Best Marketing Campaign for a Property

Debbie Murray, Allie Beth Allan & Associates 

  • Overall Excellence in Personal Marketing

Christopher Fling & Karen Yang, Keller Williams Realty | Fling Yang & Associates

  • Best Agent Market Report

Elizabeth McQueen, RE/MAX Crest Realty

 

  • Listing Presentation Achievement

Maverick Commins, , Keller Williams Supreme Auctions

  • Best Property Marketing Video

Susana Murphy, ALANTE Real Estate 

 

A sincere thank you to everyone who took the time to enter The Institute's annual Marketing Awards competition. We received a record-breaking number of entries and hope to continue the momentum in 2017. It’s never too early to set aside your most exemplary work!

Sincerely,

The Institute


High Profile Speakers Lined Up for Leaders in Luxury 2016

In less than two weeks, the nation’s top performing luxury agents will meet in Tucson, Arizona for three action-packed days of useful education and powerful networking.

Leaders in Luxury 2016 will be held at the Ritz-Carlton Dove Mountain on October 10-12, 2016.

The event is designed exclusively for luxury agents who have earned the Certified Luxury Home Marketing Specialist® (CLHMS) designation – a mark that instills confidence in affluent buyers and sellers that they have chosen an agent with the proper knowledge and expertise for the luxury real estate market.

To learn more about becoming and Member of The Institute for Luxury Home Marketing, please visit our website at www.LuxuryHomeMarketing.com/BecomeAMember


In addition to a rewarding networking experience, attendees will hear from bestselling authors, notable speakers and industry professionals on a wide range of relevant topics. Notable speakers include:

  • Terri Morrison — the co-author of five books on global business, including the award-winning, “Kiss, Bow or Shake Hands”. Ms. Morrison knows that selling to sophisticated international clients can be complex, so she will provide real world guidance on how to:
  • Communicate clearly across diverse cultures and languages
  • Present yourself, and persuade Russian, Chinese or Arabic prospects
  • Interact with clients who follow different business and social practices
  • So much more!

Ms. Morrison is an in-demand speaker and trainer who offers seminars in intercultural communications for business, government and academic audiences. She has appeared on television and radio programs on CNN, CNBC and NPR.

  • Martin Latz — One of the most prominent experts on negotiation in the world and author of “Gain the Edge! Negotiate to Get What You Want.”

Mr. Latz will provide insight into how to effectively manage high-pressure situations like a pro – and get what you want. His session will teach agents:

  • A deeper understanding of persuasion techniques and how to apply them
  • Hands-on negotiation experience through customized simulations
  • Real-time feedback from the expert on how to improve your negotiation skills
  • An arsenal of real estate negotiation strategies to get what you want

Mr. Latz is also the founder of ExpertNegotiator Software, which empowers individuals and organizations to get better results based on proven research. He has taught over 100,000

business professionals around the world how to more effectively negotiate; drawing real-world knowledge from his time spent on The White House Advance Teams.

For more information about the exceptional event, visit www.LeadersinLuxury.com. You can see the complete event agenda here or email us at info@luxuryhomemarketing.com.


Nevada Town Attracts Billionaires With Luxurious Lifestyle - And Zero Taxes

Nestled on the banks of Lake Tahoe is Incline Village — a gorgeous town that’s attracting a lot more than skiers and snowboarders.

Thanks to Nevada’s lack of state personal, business or corporate income tax, Incline Village’s lakefront homeowners now include billionaires such as Oracle’s Larry Ellison, PeopleSoft’s David Duffield and Zazove’s Gene Pretti.

Other affluent tech and financial executives — many of whom hail from California — are establishing residency in Incline Village before a liquidation event. This way, they can avoid tax liability while enjoying outdoor activities year-round.

“There are lots of great reasons to move to Nevada and Incline Village in particular,” says Trinkie Watson, CIPS, CLHMS, a real estate broker who specializes in the Lake Tahoe region. “It’s a thriving community full of year-round residents, many of whom work from home thanks to technology.”

When it comes to lifestyle, Watson notes the “seasonal weather that includes snow in winter/spring for skiing and snowboarding, summer with lake and water activities, hiking, biking, golf and tennis, and a beautiful fall with changing colors. And for frequent travelers, the Reno-Tahoe International Airport is less than an hour away.”

But clearly, the financial advantages have been the catalyst for the increased interest in “Income Village,” as some call it. Because Nevada has unique laws protecting corporations, Incline Village has gained a reputation as a tax haven — one in which investors can register shell corporations and claim residency to avoid tax liability.

“As long as income isn’t derived from [other states like] California, they will not have any personal state income tax to pay,” says Watson. She also points to the ability of many people to “sell high” in the Golden State and get more value for a new home purchase in Nevada (which, ironically, is known as the Silver State).

Also contributing to this newfound interest in areas like Incline Village is the growth occurring a short drive away in the Reno-Sparks region. That area has been transitioning from a gambling economy to a manufacturing economy thanks to about 100 new companies. New additions coming soon include Tesla’s battery factory in Sparks and Switch — the company that developed the Supernap, which is the world’s largest data center ecosystem — is constructing a huge campus nearby.

Both the old and new residents of Incline Village see this situation as a “win-win” — the town gets cache from its new billionaire neighbors and enjoys growth, while these new residents enjoy the ability to avoid paying big tax bills.


Lucio Bernal Joins The Institute as an Expert Trainer

We are proud to announce the addition of renowned Berkshire Hathaway HomeServices luxury real estate professional Lucio Bernal to our roster of expert trainers.

Based in the Palm Springs (CA) region, Lucio is a successful luxury real estate professional — and much more. He’s a relocation specialist, an influential industry leader, and a highly skilled and experienced trainer.

“I truly enjoy giving my friends in the industry all the tools they need to succeed,” Lucio said. “Serving as a Trainer for The Institute on a national level allows me to help real estate professionals who want to learn how to succeed in serving the luxury real estate market.”

Lucio is currently a REALTOR and the Director of Training at Berkshire Hathaway HomeServices California Properties in Palm Springs, where he is also a member of the prestigious Berkshire Hathaway HomeServices Chairman’s Circle. He has earned both the Certified Luxury Home Marketing Specialist® (CLHMS) designation and Million Dollar Guild® recognition from The Institute.

Additionally, Lucio has been recognized in the industry for his reputation for serving clients and his achievements in sales. Most recently, the Palm Springs Regional Association of REALTORS® (PSRAR) named him 2015 REALTOR® of the Year, and he has been elected President beginning in 2017.

“We are extremely excited to add Lucio to our team because he brings a unique combination of passion for teaching and performance with nearly 20 years of real estate experience. He’s a practicing agent who enjoys teaching others how to incorporate the tools offered by The Institute, which help agents succeed in the luxury market,” said Diane Hartley, general manager of The Institute.

You can view Lucio’s Institute bio here and learn more about our other expert trainers at www.LuxuryHomeMarketing.com.


Seeking the Amenities Advantage in a Competitive Real Estate Market

In an increasingly competitive market, owners, developers and builders are having to “keep up with the Joneses” — especially if the Joneses have a car-sharing service, a personal shopper and pet grooming.

Because the vast majority of multifamily units that have been recently constructed in the United States are rental apartments, investors are flocking to this sector seeking healthy returns. And with more and more people turning to apartment living, demand is high — and property owners and managers are competing with each other by offering amenities that are usually found in the most luxurious of residences.

So what are these amenities being offered?

“Urban Living” lifestyles. Many renters want to be close to everything — work, home, shopping, restaurants, etc. — whether they’re in a major city or the suburbs. Many new apartment and condominium communities are designed to be walkable, while providing amenities and technology to enable this “live-work-play” lifestyle.

Luxury and high-end features. Previously limited to luxury developments, many more affordable communities are offering infinity pools, upgraded design options, and other attractive features to bring in renters.

Energy savings. From more efficient HVAC systems, central solar hot water systems, LED lighting, rainwater collection, and wind or natural gas turbines, there are numerous ways to provide renters with more affordable and environmentally-friendly living.

More useful common areas. While apartment sizes are generally shrinking, common areas are growing — and providing renters with features they crave. USB ports, WiFi, and other Web-access features are everywhere, as well as more durable furniture and carpeting — enabling both social and work functions. Some of these common areas are on rooftop decks and terraces, and even include big-screen TVs, kitchens with BBQ grilles and pizza ovens, and even cabanas.

Fitness centers with more muscle. While the fitness center has become a place where tenants gather, socialize AND work out, the options available have expanded greatly. With classes for yoga and Pilates, aerobics, spin classes and more, renters have more exercise choices than ever.

The latest technology. With more people “cutting the cord” from cable TV and leaving satellite TV, builders need to ensure that their projects are friendly for these tenants — installing cloud-connected devices and enabling the fastest Internet access available. In addition, more buildings are giving their renters more control over their environments thanks to technology — from their entry doors to lighting and HVAC systems.

There are many other amenities, features and options being made available to today’s renters. Here are some of the more popular ones that haven’t been mentioned above:

  • Bike storage and repair
  • Car-sharing service
  • Child-care service
  • Concierge
  • Cooking classes
  • Dry cleaning/laundry service
  • iCafe
  • Package delivery management
  • Personal shopper
  • Pet grooming
  • Rock-climbing wall
  • Spa/massage center
  • Tech/business center
  • Wine cellar

So whether you’re a renter or home buyer, a real estate professional or a building owner, it’s good to know the amenities that are now available — and which of them you might be looking for!


Vancouver Rules The World (of Luxury Real Estate)

As the most populous city in British Columbia — and the most densely populated city in all of Canada — Vancouver clearly attracts a lot of people and attention.

And according to the 2015 Prime International Residential Index developed by U.K.-based property consultants Knight Frank, Vancouver ranks #1 in the global real estate market. In 2015, the city’s high-end market was up almost 25% from the previous year. (Actual percentage is 24.5%.)

On the Index, Vancouver’s closest competitor was Sydney, Australia — which grew at a rate of 14.8% in the same time period, nearly 10% less than that of Vancouver.

Vancouver was one of only four North American cities in the top 20 (others including San Francisco at #7, Toronto at #12, and Miami at #14), and one of only eleven North American cities in the top 100. The others included Los Angeles at #22, Boston at #27, The Hamptons at #30, Washington, D.C. at #33, New York City at #39, Aspen at #53, and Chicago at #64.

The main reason for the city’s surge is a lack of supply in the face of increased international demand — while the weakened Canadian dollar is also playing a role.

Interestingly, Vancouver is not considered to be one of the cities that matter most to the world’s wealthy. In fact, Knight Frank notes that it is more reflective of the fact that many ultra-high net worth individuals (UHNWIs) who are educating their children overseas while working and living in multiple locations around the world.

When asked about Vancouver’s luxury real estate market, ILHM expert and Vancouver REALTOR® Alan Skinner noted that it "has been somewhat 'frantic' for an extended time, but we are feeling a ‘cooling-off’ approaching where rampant competition made (particularly investors) determined to "win" at all costs.

“Home seekers are being trumped by foreign investors and a levelling off of prices is likely,” Skinner continued. "Profit taking" (sale of residential property investments) may result in further price declines."

With regard to Vancouver’s appeal, Skinner opined that "desirability, livability and the spectacular natural beauty are clearly the reason demand for residential property is so high.”

Mr. Skinner continued: “Alas, the policies allowing for unrestrained investment prevalent over the past 10 years or so has encouraged not only immigrants, but substantial pure speculation by those intent on investing in a safe, appealing environment."

But this kind of phenomenon sometimes faces scrutiny and even a desire to control (or even slow down) the explosive growth. Some governments are trying to limit foreign buyers with new property taxes, as the negative effects on overall affordability can be worrisome for the average homebuyer.

Some relevant facts and figures about Vancouver:

  • Ranked one of the most livable cities in the world for more than a decade.
  • Ranked as having the 4th highest quality of living of any city on Earth.
  • 9 years ago, Forbes ranked Vancouver as the 6th most overpriced real estate market in the world and was second-highest in North America after Los Angeles.
  • Vancouver has also been ranked among Canada's most expensive cities in which to live. Sales in February 2016 were 56.3% higher than the 10 year average for the month.
  • Forbes has also ranked Vancouver as the tenth cleanest city in the world.
  • Vancouver is consistently named as one of the top five worldwide cities for livability and quality of life.
  • The Economist Intelligence Unit acknowledged it as the first city to rank among the top-ten of the world's most liveable cities for five consecutive years.

So while many would surmise that major metropolitan cities like New York, London and Dubai would be leading the pack when it comes to growth in global luxury real estate, it’s interesting to note that #1 — by a wide margin — is beautiful Vancouver!


BY THE NUMBER: THE 2016 FORBES LIST OF WORLD'S BILLIONAIRES

Over the past five years, the Forbes magazine list of The World’s Billionaires has revealed — and continues to reveal — many interesting things about the wealthiest individuals around the globe:

HOW MANY BILLIONAIRES ARE THERE?

  • In 2011, there were 1,210 billionaires (people with a net worth of $1 billion or more).
  • In 2015, that number rose to 1,826.
  • In 2016, the list actually shrank a bit to 1,810.

BIG NAMES

The top ten billionaires in 2016 (in order of wealth) are:

  1. Bill Gates
  2. Amancio Ortega
  3. Warren Buffett
  4. Carlos Slim Helu
  5. Jeff Bezos
  6. Mark Zuckerberg
  7. Larry Ellison
  8. Michael Bloomberg
  9. Charles Koch
  10. David Koch

INSIDE THE NUMBERS

A few interesting notes:

  • Five of the top seven billionaires from the 2011 list are still in the top seven: Gates (#2 in 2011), Ortega (#7), Buffett (#3), Helu (#1) and Ellison (#5).
  • We also see that the top three from 2011 (Helu, Gates, Buffett) are still in the top four.
  • Facebook’s Mark Zuckerberg rose from #52 in 2011 all the way to #6 today.

WHERE THEY COME FROM

It should be no surprise that the tech sector continues to lead the way in creating billionaires. Also of note:

  • In 2011, about 1 in 3 billionaires (413, or 34%) were from the United States.
  • Today, 540 billionaires are from the U.S. — or 29.8% of the list.
  • Today, eight of the top 10 billionaires on the list are from the United States.
  • China has the second most at 251, and Germany is third with 120.
  • The Asia-Pacific region has 590 total — making it the region with the most billionaires.

 


Leaders in Luxury Advisory Board Named for 2016 Conference in Tucson

We at the Institute are thrilled to announce the 2016 Advisory Board for our annual “Leaders in Luxury” event — taking place at The Ritz-Carlton Dove Mountain in Tucson, AZ, from October 10-12.

We selected six of the industry’s top professionals to serve as Advisors for this year’s annual event. They are:

Every member of our Advisory Board is an exceptional luxury real estate professional from across North America or Canada and is a leader in his/her luxury residential market.

Our advisory board this year will be playing a more substantial role than in years’ past. We have asked these individuals to provide their expert input on everything from content, to speakers, to overall experience improvement. We’re excited about the ways in which we are raising the bar this year in Tucson on some of our signature LIL experiences that our attendees have come to love and expect, continuing in the tradition of being the industry’s preeminent luxury real estate event.

The incredible scenery of the Tortolita Mountains foreshadows the exceptional experience we’ll have — with world-class speakers, fresh industry-leading content, an unparalleled list of top-producing attendees, and much more.

For more information about Leaders In Luxury, visit www.LeadersinLuxury.com or email info@luxuryhomemarketing.com.


PYRAMID-SHAPED YACHT "LEVITATES" WITH LUXURY

This story is about a luxury yacht with expected amenities — such as gorgeous sun decks and elegant eating areas — but also a high-tech twist or two.

Created by London-based architect Jonathan Schwinge, the Tetrahedron Super Yacht’s unique design is based on a three-based pyramid shape. But beyond the vessel’s four faces and six leading edges (which provide greater stability), it actually appears to float above the water — thanks to a single vertical strut on a torpedo hull that remains underwater.

According to Schwinge, the yacht will lift above the water (at speed) on side-mounted, adjustable hydrofoils. This enables the vessel to travel smoothly — even in choppy waters — and reduces seasickness by eliminating any rocking or heeling.

The yacht features a take-off speed of 15 knots (17.2 MPH), and can reach speeds as high as 38 knots (43.7 MPH) above the water line. Its range is 3,000 nautical miles.

Schwinge believes that his design will reshape the “modern superyacht” into a simple enclosure that can function as “an elevated mode of travel above the water line.”

While there is no price tag on the Tetrahedron Super Yacht, it’s easy to see that this kind of vessel would be coveted by high-tech fans who can afford such a luxury item.