Here's another peek at some of the results of the Wealth Survey: Real Estate and Lifestyle. See our previous post for more details.
Here are the top reasons given by affluent Americans who were NOT planning a real estate purchase this year.
Do you have scripts to overcome these common concerns and objections? Are you addressing these issues in your market update reports? You should be!
Recently we collaborated with the New York based Luxury Institute on the Wealth Survey: Real Estate and Lifestyles, a study which looked at the current beliefs, attitudes, and plans of high-net-worth Americans as related to real estate.
The results of study are available to members of the LuxuryBoard, and to Institute members, who can download an 80 page summary of findings on the Document Downloads page of our website.
The study covered many topics, but we thought we would give you a peek at some of the results...
Here's how affluent BUYERS responded to the question, "How would you rate the importance of the following resources in your search for your most recently purchased home? "
Obviously wealthy consumers rate “Internet property listings with photos” as the most important resource when searching for a home, followed by “friends or acquaintances.”
Although it is not show in this simple graph, the results cleary show that as income increases (within this already affluent group), a local brokerage company website becomes more important and local newspaper classifieds become less important.
Likewise, print advertising in the form of luxury home magazine ads, The Wall Street Journal and The New York Times is also deemed more important by those with higher income and/or net worth.
Is this consistent with your "marketing mix"? Do your marketing plans look like this? If not, you might want to think about doing some tests to align your marketing more closely with buyer expectations and see what results you get.
We know that good photographs help to sell homes more quickly. More often than not they are the potential buyer's first visual introduction to the property. Whether it is online, in a printed brochure, a magazine, or other publication, photographs often make the first impression and influence what's to follow ("Ewww...next!" or "Oh, look at this. Let's go see this one!").
On a basic level, photographs of a home give us lots of information about the layout, style, size, and condition of a property. Is it an open plan featuring large living areas with high ceilings and lots of light? Or is it a Queen Ann with a gingerbread porch and a small parlor with bay window?
Let's take a look at an example. Here's a photo of a simple room in a home for sale:
A Nice Second Bedroom?
The photo is well exposed, in focus, and the camera wasn't at some odd angle or perspective. (These should all be givens, but look at the photos that accompany some listings, and you really start to wonder...). We see a simple, unfurnished room with wood floors that appear to have been recently refinished, crown moulding, base moulding and a door of a style that suggests an older home. A floor register suggests a forced air HVAC system. Because the room is unfurnished, it's hard to tell which room it might be. Is it a bedroom? What furniture would you put in this room? How would you live in it? Without more information, you probably can't answer these questions. Neither can the potential buyer. That's one of the challenges of selling an empty home.
Let's take another look at the same room, from the same camera angle:
Cozy living room
Staging makes a difference, huh?! Here we see that it's a cozy living room, tastefully decorated with a sofa, love seat, tables and chair. It looks like a nice spot to sit with a drink and visit with friends, or relax and watch some television.
Which image do you find more appealing?
In the second photo, the furnishings immediately tell us the function of the room, give us a better sense of its size, and present a warmer scene in which it is easier to imagine ourselves enjoying the home. Even if it is "just staging," it highlights the potential of the room in a way that a buyer might not otherwise see.
Empty homes present special challenges in showings and in photographs. It can be hard for potential buyers to see past the emptiness and envision how they might furnish and live in the home.
In photographs of empty rooms like the one above, my eye is often drawn to details of contrast like mouldings where surfaces meet and vents in the floor. As a result I think more about the structure, materials and finishes.
On the other hand, in photographs of staged or furnished rooms my attention is pulled away from the little details of the floors, walls and ceiling, and I take in the whole scene. It is much easier to imagine actually living in the space. The stage is set, the only thing missing is the people--and my mind can easily fill in that blank!
If you haven't realized it yet, all of these images were "virtually staged" meaning that the furnishings were added digitally to the original photos of the empty rooms.
In the perfect world, you could elaborately stage every home for showings and photographs. In the real world, circumstance and marketing budgets sometimes make staging homes impractical. This is true for starter homes, like the one above, as well as luxury homes. Virtual staging can be a great, and much more affordable option. When you do use virtual staging, you'll want to be sure to disclose that the images are digital renderings or have been modified. Check with your broker for the appropriate disclosure terminology to use.
Of course the resulting images can be used in the property marketing materials online and in print, but they can also be used in the home during showings. Some agents do large prints and mount them on easels throughout the home. This makes it easy for possible buyers to see past the emptiness and recognize the potential of the rooms, or even to envision alternate uses for furnished rooms--it's an easy way to help the buyer see that the sewing room could become a well-appointed home gym.
Photographs are full of cues which tell us about the tastes and lifestyles of the homeowners. This is important, especially in the luxury market, where lifestyle is one of the key factors driving purchase decisions. Virtual staging gives you great flexibility in speaking to the tastes and lifestyles of your best prospects and positioning the property accordingly.
Done well, it certainly beats an empty room.
*A big "thank you" to Institute member Daphne Shepherd and to Virtually Staging Properties for providing these images as examples. Members can find more details and special offers from Virtually Staging Properties on this page in the Members Only section of our website.
Affluent Americans read print publications. There's no denying it.
Even though they are spending more time online--and often more time than their lesser-earning counterparts--they are also still very heavy consumers of print media.
A recent study by Mendelsohn/AdAge bears this out.
93% [of affluent Americans] said they read hard-copy print versions; in contrast, less than a third read them on computers, and no other format garnered more than 10%. The same pattern is evident for newspapers, which 86% read in print, compared to the 39% who read them on computers, and 14% who read them via smartphone... The pattern is clear across all media. The vast majority consume content through its most traditional outlet.
There is no denying the rise of new media, but it might be too soon to discount the old, particularly as a channel for reaching the affluent.
We're off to Lake Tahoe this week with some beautiful photos of 360 Abbey Road. As you'll see, Elaine Casteleyn has done an absolutely superb job of capturing the key features of this property with excellent photography.
Not only that, but through her use of captions with the photos, she's speaking directly to key prospects and translating those features into benefits. The language she uses for the captions is simple, but designed to resonate emotionally and appeal to the specific lifestyle needs of the targeted prospects and likely buyers. The words chosen are evocative of connoisseurship and success, two qualities the buyer will likely embody.
The property website is elegant and easy to navigate. The homepage features a photo slideshow with the following captions overlaid on the images.
Welcome to 360 Abbey Road...
Escape to the tranquility of Lake Tahoe...
Enter into your private sanctuary...
Down the 1/2 mile drive to take you home...
To luxurious and spacious living...
Savor the spectacular lake vistas...
Host unforgettable social events...
Relax in the warm and inviting study...
And celebrate each day...
With heavenly views at every level...
Accommodate visitors in the guest house...
Or unwind at your own pace...
Where nature and beauty surround you...
360 Abbey Road - 10 acres of outstanding opportunity
As you can see, the captions very subtly highlight the benefits and the lifestyle activities that the owner might enjoy. They spark the imagination and help the viewer experience the home. Even imagined experiences can be powerful and tantalizing!
For example, the caption for the photo of the kitchen isn't a list of appliances, its a hint that this is a perfect home in which to "Host unforgettable social events." Can't you just see folks mingling happily in the kitchen with wine glasses in hand?
The home features a large wine cellar, but the caption doesn't highlight the technical features or attributes (temperature and humidity control, bottle capacity, etc). Instead the caption says simply, "And celebrate each day." It is a simple phrase that again evokes success and connoisseurship. Successful people celebrate, and clearly the owner of this home is a coconnoisseur with much in life to celebrate and the means to do it.
Elaine has done a fabulous job positioning the property with images and words. Here are some of the key things she's done to make this so effective:
Good photos are powerful. Good photos with good captions are even more powerful.
Some of you seemed to like the idea of a regular (weekly?) photo feature, so let's kick things off with a photo submitted by CLHMS and Million Dollar Guild member Lisa Wadey:
As you can see from the photo above this large, Mediterranean-style home sits right on a beautiful golf course at the foot of scenic hills in Scottsdale.
The unique perspective of the photo captures all these important details--the front facade, the golf course to the rear, the mountain view in the background--in a single shot. This is the photo that "says it all." The catch of course is that it was shot from 40 or 50 feet in the air!
The secret to shots like this?
One technique for capturing a property from an elevated perspective is to use a boom truck or "cherry picker." These trucks can typically be rented for very reasonable rates (here in Dallas that's about $250 for two hours with a driver) and offer great flexibility to help you or your photographer capture that perfect shot.
You'll find tips on this and so much more in the How to Photograph Houses eBook by Stan Barron (Members can download it for free from the Document Downloads page of our website).
--------
Would you like to have your property photos featured in a future Photo Friday blog post? Email me at waco(at)luxuryhomemarketing.com and we'll consider them for upcoming posts.
On October 1st Fannie, Freddie, and the Feds will be lowering the maximum amount the government will guarantee on Jumbo loans. The new limits will vary by region. Under the new rules, the maximum eligible loan will fall from $729,750 to $625,500.
If you have buyers "on the fence," now's a good time to have a conversation with them and make sure they understand the potential ramifications of this.
As for the effects on the housing market in general, the jury's still out. Some folks are predicting that banks will step in and fill the gap by lowering lending requirements and rates in the hopes of capturing a bigger slice of the jumbo pie.
Here are some current stories on the subject:
Bloomberg: Banks May Soften Blow of Jumbo Loan Limits
Wall Street Journal: Rebound or Retreat After Mortgage-Cap Declines?
Why should people work with you?
Why would someone choose you over your competitors?
What can you deliver that's uniquely yours and that they value?
To answer these questions, you have to have an understanding of your prospect's values and expectations.
The top 5 attributes that affluent buyers and sellers are looking for when selecting an agent:
How well do agents deliver?
Only 50% of affluent buyers and sellers reported that they were "very satisfied" with their agent's performance on their most recent transaction.
Takeaways? Expertise and market knowledge are highly valued and can be used as key differentiators. A good market report targeted to a specific market segment is likely to be one of the best ways to demonstrate this knowledge and one of the most effective marketing tools an agent can utilize.
With a satisfaction rate this low, there is clearly much room for improvement. Remember it is not just about execution, it's about understanding client values and expectations and delivering on them. There are clearly many opportunities for competent agents to capture new clients from under-performing agents.
Good photographs sell homes. They tell the home's story. They capture the lifestlye and tug at the heartstrings of real prospects.
One glance at this photo and you know where you are and what it's all about. It's a beautiful sunset in Sin City and you're on top of the world!
Inside, this property is unfinished, raw concrete. No walls. No fixtures. No appliances. But, location, location, location...views and lifestyle! That's what the buyer is buying, and this photo captures it perfectly.
Even the interior shots of the raw space are lifestyle shots that evoke a strong sense of place and potential.
Here's the copy that accompanies these photos:
Privacy and privilege at the center of the universe. Soaring high atop the heart of the Strip, Planet Hollywood Towers has exclusive penthouse residences featuring the unique opportunity to create your own world in the place that defines what Las Vegas is all about.
Imagine your exclusive elevator rocketing you up to the top of the world, opening your door to magnificent views of the Strip and the desert beyond, then surveying every lifestyle amenity you could possibly dream of. VIP residences range from intimate to duplexes of palatial size. Create a quiet haven in the clouds or the ultimate club atmosphere. The layout is yours alone.
Of course, you will enjoy the privileges of private valet, private concierge, private garage area, discreet check-in and all the perks of the Planet Hollywood resort: non-stop action, sandy poolside beach, spa, gym, 24 hour room service.
As you can see, the photos and the copy reinforce each other. The photos set the stage and the copy fills in key details.
In the luxury market it's all about lifestlye.
Every home has a story and it's your job to tell it--with images and words.
(I found this example on the website of CLHMS and Million Dollar Guild member Gene Northup. If you have property photos that you think do a great job of telling a home's story, send me a link them at waco(at)luxuryhomemarketing.com and maybe we'll feature them in a future post. What do you think readers? Anyone interested in a "photo of the week" type feature?)
Interesting post on the 99% Blog today:
The Resume is Dead, The Bio is King. It is targeted at creatives, but it applies to Real Estate too.
Here's the challenge:
If you’re a designer, entrepreneur, or creative – you probably haven’t been asked for your resume in a long time. Instead, people Google you – and quickly assess your talents based on your website, portfolio, and social media profiles. Do they resonate with what you’re sharing? Do they identify with your story? Are you even giving them a story to wrap their head around?
And here's the takeaway:
Your bio needs to tell the bigger story. Especially, when you’re in business for yourself, or in the business of relationships. It’s your bio that’s read first.
To help you with this, your bio should address the following five questions:
- Who am I?
- How can I help you?
- How did I get here (i.e. know what I know)?
- Why can you trust me?
- What do we share in common?
If I went to your website and clicked on your bio what would I find?
Your bio is your chance to tell your story in your own words, but remember that these questions are being asked and answered beyond the bio too.
Your website, your market report, your marketing materials, your social media presence are all pieces of this "conversation" and should work together to tell your story.
