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February 2015

A mini-movie for Valentine's Day

Romancing your listings is something we teach in our Institute for Luxury Home Marketing two-day training class. Other purveyors of luxury products and services strive to romance their products, too.

Since today is Valentine’s Day, we thought we’d share a marketing mini-movie with you, one that’s all about romance. Here is uber- jeweler Cartier’s latest mini-movie (actually, it is a composite of three mini-movies which you can also view individually):

(View video on YouTube)

In our opinion, Cartier knows how to tell an effective story that ties emotion and their jewelry together with a big red bow.

Happy Valentine’s Day!


Could what you “know” about millionaires be wrong?

The number of U.S. millionaires is at an all-time high. Research results indicate that there are 12 million U.S. households with a net worth of a million dollars or more. (Remember net worth is calculated by all assets minus all liabilities equals net worth.) In fact, the U.S. has twice as many millionaires as the next top 10 countries combined.

Real estate professionals who have taken our luxury home marketing training know that many common perceptions about these millionaires are often clouded by myths. Who are these very successful Americans and what do we know about them? Just for fun, test your millionaire savvy with this quick trivia quiz.

Are the following statements True or False?

  1. Most millionaires live in a home valued at less than $500,000 and drive a car which is at least two years old.
  2. The largest share of millionaires earn between $100,000 and $249,900 annually.
  3. There are as many millionaires created by inheritance as there are self-made.
  4. Most millionaires own luxury goods from brands like Rolex, Gucci, Prada, and Louis Vuitton.
  5. When it comes to shopping, the top two destinations for high net worth shoppers are the internet and discount department stores.

6. Which of these words best describe the average millionaire's spending habits?

  • Saver
  • Big Spender

Scroll down for the answers!

 

 

 

 

 

 

 

 

 

 

 

 

ANSWERS: Let’s see if you are millionaire savvy or have fallen prey to millionaire myths.

  1. True. The majority of millionaires do live in homes valued at less than $500,000 and the cars in their garages are at least two years old.
  2. True. Millionaires earn less than you might guess. The majority earn between $100,000 and just under $250,000.
  3. False. The vast majority of millionaires in the U.S. (and in the world) are self-made and their money comes from business ownership and employment-related income.
  4. False. Far from being conspicuous consumers, typical millionaires don’t purchase high-end brands such as Prada, Gucci, Rolex, and Louis Vuitton and may not even recognize these brands. Yes, really!
  5. True. The favored destinations for high net worth shoppers are the Internet and discount department stores. In fact, 68% of affluent households with an average of $250,000 in annual income shop at discount stores according to research done in 2014 by Unity Marketing.
  6. Saver.  The typical millionaire is generally frugal, saving 15% to 20% of his or her annual income each year.

If these government statistics and research findings documented by Unity Research and the American Affluence Research Center surprise you, find out more about the wealthy and how to reach those who are interested in luxury homes by joining us at one of our upcoming Institute for Luxury Home Marketing training classes, or register for our online class.


Is the 80/20 rule really true?

You’ve heard the statistic – 20% of Realtors do 80% of the business.

MLSIs this true or is it just another sales myth that’s bandied about in the real estate business? A recent blog post by Ted Jones, Chief Economist for Stewart Title reports on a study by the WAV Group that provides some insight to this question.

The research company surveyed about 150 Multiple Listing Services regarding listings and closed transactions for the first half of last year. The accompanying charts show the percentage of agents who had listings in that time period, as well as the percentage with closed transactions.

Certainly some people subscribe to the MLS for reasons other than listing or selling residential properties. This includes commercial Realtors that keep tabs on the residential market, appraisers, or others that use MLS data. However, the 39 percent who had no closings in the first half of 2014 and the 43 percent who had no listings is still remarkably high and indicates that about 40% of MLS subscribers are not listing and selling (for whatever reasons).

Add to this, the fact that another 50% only had from one to ten closings in a six month period, bringing to 89% the total of those who had from zero to ten closings in half a year and you can conclude that the remaining 11% of the agents are doing a high percentage of the business. It’s pretty much the same with listings. Only nine percent of MLS members had ten or more listings in the first half of 2014.

Our conclusion? If we are talking about numbers of transactions, the 80/20 rule may not be far off the mark in real estate.


Blockbuster penthouse sale breaks $100 million price barrier in NYC

One57_from_Columbus_Circle,_May_2014New York City residential property sales bounced as high as $88 million in the past several years, but as of late December 2014, the sale of a penthouse encompassing the 89th and 90th floors of the new One57 tower has closed for $100.5 million, setting a new record for the most expensive residence ever sold in New York City.

The buyers name remains a mystery since the purchase was made in the name of a limited liability company, P89-90, LLC. Of the apartments sold in the building to date, reports are that more than half are in the names of Trusts or LLCs for privacy’s sake. While the property sets a record for NYC, at least three other U.S. properties have sold for more than $100 million in the past year.

The nearly 11,000 square foot duplex unit boasts the longest south to north city views ever offered by a NYC condominium and includes outstanding views of Central Park and other landmarks. The distinctive blue building was designed by Atelier Christian de Poirtzamparc, the Pritzker-prize-winning French firm. The building sponsor is Extell Development Company.

One57 is among several high rises to break ground on “Billionaires’ Row,” where the tall new towers cast shadows over Central Park. A group led by investor Bill Ackman is reported to have paid at least $90 million for another duplex on the 75th and 76th floors of the building, but the sale has not yet been recorded.

NY Times: $100.4 Million Sale at One57