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October 2015

2015 Leaders in Luxury Marketing Awards Winners

Thank you to all those who submitted entries for this year's Leaders in Luxury Marketing Awards. We were blown away by the amount of entries submitted, and what our members have accomplished. Congratulations to the winners of the 2015 Leaders in Luxury Marketing Awards.

IMAGE-0524

Jennifer Egbert, Dawn Thomas, Christine Battista, Carl Battista, Norka Parodi, Patrick Ryan

2015 Best Agent Market Report

Winner: Dawn Thomas, Dreyfus Sotheby’s International Realty, Palo Alto, CA

2015 Overall Excellence in Personal Marketing

Winner: Jennifer Egbert, JP Egbert Associates, Modern Luxury Real Estate, RE/MAX Alliance; Boulder, CO

2015 Best Marketing Campaign for a Property

Winner: Norka Parodi The Norka Group, Boca Raton, FL

2015 Outstanding Personal Achievement

Winner: Patrick Ryan, Ryan Residential, Related Realty Chicago, IL

2015 Best Marketing Video

Winner: Carl Battista & Christine Battista, The Battista Team, Keller Williams Denver Tech, Denver, CO

Watch for more on these winning entries in upcoming blog posts. Also watch for a webinar in the next few months featuring the marketing award winners’ entries.


China’s UHNWIs Invest In Top-Tier Homes & Higher Education

For luxury real estate professionals in certain markets, international buyers are a growing source of opportunity. According to the Knight Frank 2015 Wealth Report, there are 172,850 individuals globally who have a net worth of $30 million or more. An estimated 32% of an UHNW individual’s assets are invested in real estate, and that 81% of UHNWIs are most interested in the residential market. Amidst the growing pool of wealthy international investors, Chinese clients stand above the rest.

The NAR’s 2015 Profile of Home Buying Activity of International Clients showed that, for the first time ever, international buyers from China exceeded all other foreign buyers in both units and dollar volume, spending $28.6 billion on United States residential real estate last year. While Chinese buyers are undoubtedly attempting to shelter their wealth from a chaotic domestic market, reports show that they are dually motivated by an interest in the United States’ prestigious universities.

Chinese students account for approximately one third of all international students in America, and an estimated 10% of Chinese UHNWIs send their children to college in the United States. It is becoming increasingly popular for wealthy Chinese parents to invest in residential property near their child’s university, constituting a simultaneous investment in real estate and education. Chinese buyers show a strong preference for American cities on the west coast, such as San Francisco, Los Angeles, and Seattle, which boast a wealth of educational and business opportunities, as well as relative proximity to China.

Learning To Work Effectively With Chinese Clients

Shake Bow Book Series

Chinese buyers have a unique set of customs and perspectives concerning social and business transactions. Luckily, there are many resources available to luxury real estate professionals who want the tools to attract Chinese buyers and exceed their expectations.


The Ultra High Net Worth Individual's Alma Mater

Trivia Quiz Question

True or False:  Twenty percent or one in five of the world’s Ultra High Net Worth Individuals (UHNIs) graduated from just ten major U.S. Universities.

Although the very successful are generally university graduates, the one in five statistic is a bit high, so the correct answer to the question is “false.”  Five percent of the world’s UHNWI’s did graduate from just ten of the U.S.’s major educational institutions with Harvard garnering honors for the highest number of UHNWI grads.  See the list below. 

 

Rank

 University

UHNW Alumni Population

1

Harvard University

3,130

2

University of Pennsylvania

1,580

3

Stanford University

1,240

4

Columbia University

940

5

New York University

860

6

Massachusetts Institute of Technology (MIT)

670

7

University of Chicago

665

8

Northwestern University

575

9

Yale University

570

10

Cornell University

560

Source: Wealth-X and UBS World Ultra Wealth Report, 2014

  Harvard Grads

Harvard University Graduation photo


What Kind of Wine Cellar Does Your Luxury Client Need?

Wine Cellar - Up Close

As wine collection and appreciation grow in popularity, expansive and elegant wine cellars are becoming a common feature in high-end luxury homes. Luxury homeowners want a wine storage and display space that reflects who they are—an avid wine lover with expensive tastes, an elite collector with thousands of bottles worth millions of dollars, and everyone in between.

How much wine does the client have?

The average luxury homeowner will require a wine room that can accommodate hundreds of bottles, as well as roughly a dozen cases. A wine room of this size could be built within an existing room on the home’s main floor or added to a large open-floor-plan kitchen.

 If your client is a serious wine collector, however, they will need a wine cellar that can potentially store thousands of bottles and many dozens of cases, as well as display the individual’s most rare and prized bottles. Your wine-collecting client will certainly need a lot of square footage, although collections of this magnitude do not necessarily need to be easily accessible from the kitchen or primary entertaining space. The extra-large wine cellar can be built underground, where the earth and shade can naturally cool the bottles, and an additional wine storage area can be built in or off of the kitchen for easy access.

What is the wine room for?

The design of a client’s wine room will partly depend on what they want to use the room for.

  • Displaying prized bottles
  • Tasting and socializing with guests
  • Storing bottles with easy access for cooking and entertaining
  • Storage only; easy access not required

A room for displaying prized bottles will likely have LED lights and a storage solution that prominently features the bottles’ labels. A wine room for tasting will have a seating area and a bar around which guests can gather.

What look suits their personality and taste?

Today’s luxury wine rooms vary widely in their aesthetic. Your client might want a dark stone cave to reflect their love of old world wines, or an all-glass, LED-lit room to suit their ultra-modern tastes. A collector with a vast underground storage space might want their wine cellar to have a glass ceiling, enabling guests on the main floor to peer down at the treasures below. The possibilities are endless and, fortunately, luxury wine cellars have proven to be a sound investment, as their cost is typically captured in the resale value of the home.

Bookmark these sources to give your luxury client some fantastic ideas:


Millionaires Living in Barns?

It’s more common that you might think! High-net-worth individuals have long sought spacious hideaways in the countryside. Rather than going for red-brick estates or whitewashed ranch houses, however, more and more wealthy homeowners have been spending their summers and long weekends in barns. Not dirty, smelly, hay-filled barns, of course: spacious, historic, modern, converted barns.

Large-Guest-House-Barn-Home-2

The Luxury Converted Barn Phenomenon

For wealthy individuals seeking primary or secondary residences with plenty of character and space, converted barns can provide a perfect solution. Here are some of the main selling points for converted barns:

  • History – For centuries before they became mansions, these barns were used on working American farms and ranches.
  • Space – Because barns are meant to fit as much hay or as many horses as possible, they are spacious and perfect for open floor plans.
  • Uniqueness – Not many people can say they live in a converted Dutch barn from the 1800s.
  • Character – The planks of wood have been worn by weather and use over decades, so your home feels authentic and broken-in from the beginning.
  • Exposed beams – Sigh. Who doesn’t love exposed beams?
  • Luxury – Life in a converted barn is a far cry from “roughing it.” These barns may be rustic on the outside, but they are modern, bright, clean, and airy on the inside. Ladders, lofts, lap pools. The possibilities are endless.
  • Eco-friendly – By moving into a salvaged and restored barn, homeowners are using recycled wood and saving trees.  Salvaged wood floors and doors are also growing in popularity.

How It’s Done

Restoring and renovating a barn is a process that varies widely in expense and complexity. Some buyers will purchase a barn on a large swath of land and do a top-to-bottom renovation. Increasingly, however, people are buying their ideal piece of property and then purchasing a disassembled historic barn separately, to be delivered to their land. While some people find and buy the barns themselves, there are a growing number of businesses that buy the country’s most beautiful barns and allow customers to pick their favorite from a large catalog.

One such specialty company is Heritage Restorations, based in Waco, Texas, which manages every aspect of the transformation from horse barn to one-of-a-kind country estate. Their restoration projects can cost anywhere from $200,000 to $5 million depending on the size of the barn and the scale of the renovation. In an article for the Wall Street Journal, Heritage Restorations founder Kevin Durkin noted that his business has steadily increased over the last 15 years—even during the housing crash. "People looking for a barn home, they're not looking to save money,” the founder said. “It's character. You're living in a piece of history." (Feast your eyes on the Heritage Restorations showroom.)

A Haven for Peace & Quiet

On the one hand, a converted barn makes for a truly unique and peaceful retreat, whether its standing in a vast green field or nestled in the mountains. On the other hand, luxury converted barns aren't for everyone. They are usually found in remote areas or on large plots of land, which means plenty of peace and solitude, but also a property that might be more difficult to access. Because of the unique layout of most barns, converted homes often require unconventional floor plans and room arrangements.  Their high ceilings and enormous volume can make these barns costly to heat and cool, too. However, for the very successful homebuyer who is looking for something apart from the ordinary, the converted barn may have terrific appeal.


Check a prospect’s financial credibility or create targeted prospect lists with up-dated WealthEngine benefit

If you’re an Institute member, here’s good news. The Institute’s updated strategic partnership with WealthEngine (WE) continues to offer you unique “wealth Intelligence” benefits. 

“Members can do immediate financial credibility checks on over 210 million US adults with the click of a mouse. In addition, WealthEngine’s extensive database allows members to create targeted marketing lists using wealth scores and lifestyle attributes,” said Institute Director Amanda Hammer.  “These two free member benefits are powerful differentiators.”

Institute member Michael Morrison of South Puget Sound Market, Sotheby's International Realty agrees.  “The insight we gain from WealthEngine has allowed us to segment and engage with high-potential buyers with less effort and much more precision.  By understanding our client’s needs better than anyone else, we stand out from the competition.”

Tune in to a special webinar to learn more

WealthEngine and The Institute will host a special webinar for Institute members

“How to find the perfect client using WealthEngine”

Thursday, October 29th at 3pm CST

Watch your email for details

“We are excited to move our partnership with The Institute to new heights,” said Mark Logan, CEO of WealthEngine. “We have already seen many Institute members achieving great success with our tools. Through the exclusive free access, deeper discounts on our portfolio of solutions, and access to our educational content, we expect even more success within this community.” 

Institute members; keep your WealthEngine success stories coming.  Send us your story MembeServices@LuxuryHomeMarketing.com


The Institute is growing, so we can serve members better than ever!

NEW website with a “luxury look”

Hopefully you’ve seen the new website.  We are pleased with our new look and now that the new site is up and running we are making a few tweaks to ensure that it functions smoothly and you can find what you are looking for. Let us know what you think!  Be sure to check out Member Benefits & Resources when you log in next time.  Don’t leave money on the table by not using the resources available to you.

NEW staff to expand our member services

If you think you have heard new voices on the phone, you are right.  We’ve added some great new people with a variety of skills and plugged into some new outside resources through our investment partner -- McKissock -- who came on board last year.  Amanda Hammer is still with us, but has new, expanded responsibilities. In short, we are growing a team, just like many of you are.  Here’s a quick look at our staff and a short list of their responsibilities.

Amanda Hammer has a NEW title –Director of Products & Member Services

After seven + years with The Institute, is an expert on our business and is wholly committed to our mission, which is helping you maximize your success.  Her responsibilities include acting account executive for our brand partners, making sure we have a toolbox full of member benefits, and overall Institute strategy.  How she juggles complete dedication to the Institute and a husband and active two-year old, we are not sure.  But she does!

Debbie Linzenmeyer is our NEW Training & Operations Manager

Debbie is an experienced operations and project manager with key strengths in areas such as integrated marketing, brand management, writing/editing, and events management. Debbie came to The Institute after four years at Fossil Group, where she served in a Global PR and Events Marketing role. Her responsibilities include the management of the Member Services and Fulfillment teams as well as LIVE course management and host relationships. Debbie is usually a marathon runner, but has traded running for pregnancy and her little girl is due in December.  Appropriately, the baby will be named Lil just like our LIL – Leaders in Luxury!

We have two NEW Member Service Coordinators

Regena Bradley came to The Institute with many years of experience in New Home Construction and Real Estate as well as having owned her own business. Having herself been involved in all phases of Real Estate, she understands the importance of competency, communication, and outstanding customer service and has an unparalleled empathy to meet the personal needs of our members.

Jill Duncan came to the Institute with experience in the hotel and hospitality industry as well as having run her own massage business on the side. Jill is tirelessly diligent in all areas of her life and work and brings enthusiasm and spunk to every interaction with our Members. She is a serious cyclist, a massage therapist in her free time and has exciting wedding plans for next year. 

We have a NEW team in our Fulfillment Department, too.

John Logan Oakley is an accomplished artistand has been with us for over a year.  John Housewright is a musicianwho began with us earlier this year.  Both Johns are responsible for assembling and shipping training course materials, fulfilling product orders, and coordinating and mailing member communications – including the popular “quote cards”.

We also have NEW trainers

Tami Simms will remain lead trainer and has trained for us for more than eight years.  Many of you have attended Tami’s classes and know she is knowledgeable, dynamic and fun!  Her course evaluations are always terrific and hosts want her again and again. We are so fortunate to have her.

Watch for an upcoming blog post introducing Bill Hensley and Kofi Nartey the new trainers who are coming onboard and joining Tami, so we can meet the growing demand for classes.

We also have some NEW people and departmental resources, thanks to our new investors at McKissock.

Mike Duran, CEO of McKissock brings a new level of strategy and vision to the business.

Charlene Barnard, CMO of McKissock and brainchild behind our lovely new rebranding and relaunch of our website brings not only her extensive marketing expertise but also a marketing department to support Institute initiatives.

Julie Nelson, a content and training expert with McKissock has been integral in bringing our fabulous new trainers on board.

You also may have noticed by now that we are missing a familiar face – Waco Moore, our Vice President

Waco’s daughter turned 10 this summer and Waco and his wife decided that is the right age to make the world their daughter’s classroom. They have taken off for a year of travel and home schooling, starting with cycling and camping along the Rhine River from Switzerland to Holland.  They are not sure what will come next, but plan to squeeze as much economical travel into the time as possible.  We all wish we could fold up our tents, pack our bike paniers, and go with them.  Check out their travel blog at www.FieldTripX.com

And the biggest news of all, founder, Laurie Moore-Moore is retiring this month

However, she still has a stake in the Institute’s success and is excited about what is ahead and hopes you…our members…are too.  Laurie plans to take the rest of the year and travel with her family. If you haven’t already viewed it, please take a moment to watch this short video message from Laurie.