Shifting Marketing Strategies for Today’s Luxury Climate — RISMedia |
On September 14th, RISMedia hosted its annual Real Estate CEO & Agent Leadership Exchange, jointly presented this year by the National Association of REALTORS® (NAR). The exclusive full-day, virtual event attracted thousands of industry experts and featured broker-focused sessions with some of the most successful and innovative executives, brokers, brokers, coaches and influencers in the real estate industry.
In a succinct look at high-end marketing strategies during an agent-track session at the event – How to Transform Marketing Strategies for Today’s Luxury Climate – presenter Diane Hartley, president of the Institute for Luxury Home Marketing, asked three industry leaders how they are maximizing them achieve marketing opportunities in the luxury real estate sector.
Nashville has been a hotspot in the market since the COVID-19 outbreak, noted panelist Jack Miller, principal listing broker at Parks Realty, who bought Kelly Clarkson and her then-husband Brandon Blackstone’s estate three years ago for an aspiring $ 9 million.
“In a market where high-end business was typically $ 1 to 3 million, we thought $ 6 to 7 million was more realistic,” Miller said. “But they weren’t very motivated to sell yet, and in the three years that the house was in the market we got a lot of exposure for it – even hosted an episode of ‘Million Dollar Properties’ on HGTV that generated interest off one Pool of wealthy buyers. “
The house ultimately sold for $ 6.9 million, he said, but competition was fierce and in a rising market he was able to sell several other multi-million dollar properties, including a Nashville country bar with one Price of $ 35 million.
“You need to focus on what will help your customer achieve their goals,” Miller said. “In this case, taking over a property with a target list price when the market was rising and the seller was in no hurry – and taking the risk was definitely the way to go.”
Acquiring an overpriced property can indeed open doors, agreed panelist Roman Pavlik, director of the luxury, sports and entertainment division of Laurie Reeder Luxury Real Estate in South Florida.
“The market is critical,” said Pavlik, who has sold properties in the triangle of Metro Miami, Fort Lauderdale and Palm Beach for more than 20 years. “If it goes up, it can easily catch up with your prices – and generate a lot of press.”
Inventory also has a lot to do with marketing strategy, Pavlik added.
“There are more upscale buyers out there than available properties, and many buyers search on their own,” he said. “But we have access to MLS information that the public cannot access. For example, at the end of the rental period I look for high-quality rental properties and call the seller. Maybe they rented it because they couldn’t get the price, but once they realize how much the property has been valued, they often decide it’s time to sell. “
Look at the moving market, Miller offered.
“The majority of people moving to Nashville today want to change their lifestyle,” he said.
“I had a foreign buyer looking to spend up to $ 10 million on a waterfront property and / or one with an indoor basketball court. But after exhausting all of the properties we had to show him, he decided to look around Florida. “
Miller said he was unwilling to lose the client and referred him to a Florida realtor who eventually sold the client a property for $ 18.5 million.
“The client loved it, as was the agent, and I received a great referral fee,” he said.
In any inventory situation, a seller can benefit from expedited marketing, noted panelist Jennie Heal, president of Supreme Auctions in Scottsdale, Arizona.
“We work with homeowners – usually with owners who don’t have to sell, they want to sell,” she said. “Maybe they have three or four houses across the country and they want to sell one and invest the proceeds – or they are fed up with the running costs. We work with high-end agents across the country, set a time window of 30 to 45 days and create a large presence for the house through the auction process. “
The strategy, explained Heal, is to put the property in the spotlight and create pressure to act.
“This culminates in a bidding competition that brings the seller the highest possible market value,” she said.
Pavlik vouched for the process.
“We had a home on the market for two years for $ 1.8 million,” he said. “The accelerated put option brought 120 buyers in 30 days and the property was sold for $ 2.4 million.”
But everyone knows a REALTOR® noted Hartley. How do you win the business anyway?
“You do what it takes to establish yourself as a local high-end expert,” said Pavlik. “If clients don’t want to alienate their country club friends by choosing a broker, they’ll likely turn to you instead.”
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Real Estate CEO & Agent Leadership Exchange 2021 sponsors
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Leading Real Estate Companies in the World®
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David Knox Real Estate Training
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Barbara Pronin is an editor at RISMedia.