Luxury Insights

Media visibility has value

One newspaper article =
an entire community listing for one agent
and a $40,000 check for another!

Back in October of 2008, reporter Jean Murphy of The Daily Herald, a suburban Chicago (IL) newspaper, called Laurie with some questions about the luxury market.  Laurie suggested to Jean that she might give the story an even stronger local twist by interviewing some of our Institute members.  Jean contacted several and ended up quoting Institute member Valerie Zelinski of Century 21 Roberts & Andrews in Crystal Lake and Carol Best of Hunter's Fairway | Sotheby's International Realty in Barrington. Carol, a Certified Luxury Home Marketing Specialist (CLHMS) shared lots of information about lifestyle marketing and the concept of targeting the best prospects for your listings -- information which Jean included in the article.  The article ran on November 1, and as a result, business was generated from Illinois to California.

Here’s what Carol had to say in early January:

I am in the process of obtaining signatures for listing a new green, self-sustaining community outside Chicago. The homes will be between $1 to $3 million dollars, on 400+ acres, with approximately 125 home sites and an equestrian facility as part of the community.  It is very unique and ahead of the curve.  My developer is from San Diego. Here is the good news for you... it is ALL because of the article the Daily Herald reporter did on me and luxury agents.

A woman in Chicago read the article and apparently decided that an Institute member could best help her sell a home she owned in California.  So, she called Institute member Sam Smith of Beach Cities Luxury Homes in San Clemente. (Sam is a CLHMS and member of The Million Dollar Guild.)    Sam listed the home and has sent us a follow-up email. 

Here’s what Sam had to say:

Just wanted to say thank you again.  As you recall, I picked up a listing from a client in Chicago who decided to call me after seeing an article in the Chicago paper regarding the Institute.  We just sold her California home to an all cash buyer, full asking price, with a 14 day close!   My affiliation with (The Institute) will gross me over $40,000 on just this one transaction. Thank you again!

All of this illustrates the power of the media and how important it is to become a resource for reporters and editors.  When you are quoted, it helps position you as an expert, gives you credibility and, as Carol discovered, can generate business.  The fastest way to get on their list of agents to call is to send them regular luxury market statistics and offer to be a resource when they are working on a story.

We are working at building The Institute’s presence in the media, with the goal of creating visibility for members and hopefully, creating a preference for our members in the minds’ of consumers.  In Sam’s case, our efforts paid off, he benefited to the tune of $40,000! 

Remember that you should be working locally to connect with your local media. They often need statistics, quotes, and someone to introduce them to buyers and sellers who are willing to be interviewed.  This is especially true in today's market and especially so in markets where there are luxury segments moving counter to the broader market trends of the area.

(See pages 112-116 in Laurie’s updated book Rich Buyer, Rich Seller! The Real Estate Agents’ Updated Guide to Marketing Homes for specific tips on “farming’ the media effectively).

Yahooooooo!

I think that's what Members Laura Duggan and Patrick Birdsong must be saying right now--not only do they have the most expensive listing in Austin, Texas, but it has also been featured as "the most viewed expensive home" on Yahoo's homepage and has been in the rankings for five days. 

This great exposure on Yahoo has resulted in over two thousand folks visiting their website and registering to see more listing details--in just two days. 

As Laura says, "You gotta love that viral marketing!"

Congratulations Laura and Patrick!

The first in a series of member success stories…

Kelly Cobb
Fonville Morisey (Cary, NC)
919-818-3450  
Kelly@relo-expert.com

Institute member Kelly Cobb builds success through giving

By anyone’s estimation, Kelly Cobb has had a successful, fruitful career in real estate.  It’s a career based on equal parts entrepreneurialism and hard work that spans more than two decades.  But what distinguished Cobb from her colleagues is her equally impressive career in the non-profit sector – an addiction to altruism that began just after college and hasn’t released its grip for nearly forty years.

“Good things happen when you take care of good people,” says Cobb.  “If you take care of people, the money will take care of itself.”

For Cobb, it’s more than lip service.  It’s a mantra that permeates her approach to real estate – even at the highest levels.  And she found a kindred spirit in the Institute for Luxury Home Marketing (ILHM).  One member benefit she is sure to take advantage of each year is ILHM’s Leaders in Luxury conference [the invitation-only ILHM meeting for agents who work in the million dollar plus market].

“Since joining, I’ve only missed one of the annual Leaders in Luxury events, and that was because of my brokerage company retreat!” says Cobb.  “I have been hugely impressed by the quality of, well, everything!  The exposure, the networking, the information – even the opportunity to be part of a group of such great people.”

This year, one of ILHM’s Leaders in Luxury speakers was Frank McKinney, who became a home builder shortly after he graduated from high school. “He builds multi-million dollar homes, then takes a portion of the profits and uses them to build homes for people in Haiti and in other underdeveloped countries,” explains Cobb.  “He said, ‘I think God taps certain people on the shoulder and gives them stewardship of special gifts so they can share with others.’”

“It was life-changing for me – it recommitted me to volunteer service and to improving my community for those who are of lesser means and deserve a better life.  It’s one thing to be a luxury agent and sell multi-million dollar homes and associate with the people who can buy them – but I think it’s important to remain grounded and remember that we came into this world with nothing and will leave with nothing.  It’s our job to make things better while we’re here.”

That theme of altruism is something ILHM takes to heart.  Our research, information about luxury home buyer habits and preferences, the “leg up” we give our members – it all underscores the desire to understand the needs and do what’s best and what’s right for those we serve. In this same spirit, we made a contribution to McKinney’s foundation and built two homes in Haiti.

If you aren’t familiar with McKinney, he is known around the globe as a real estate "artist," and the creative building force behind some of the world's unique mansions. A true maverick with a charming flair, he is an author, speaker, and a daredevil in the risky world of speculative high-end real estate. McKinney is nearing completion of "Acqua Liana," an opulent eco-friendly "green" mansion priced at $29 million and "Crystalina," a $30 million Polynesian green home. Another current McKinney project is a $135 million spec home, The Manalapan Residence.

Although McKinney builds new dream mansions, he lives with his family in an historic 3000 square foot home, offices in a 150 sq. ft. tree house, and is committed to his Caring House Project Foundation, a non-profit organization dedicated to creating self-sufficiency by providing housing, food, water, medical support and opportunity for the desperately poor and homeless around the world.  It is this passion of McKinney’s that sparked Cobb’s desire to increase her efforts to give back to the community.   

--Author, Julia Kennedy Jayes

How to make Kelly Cobb’s Success Your Own 

Research tells us that eight out of ten of the wealthy are involved with non-profit organizations -- often as major donors, committee members, or members of the Board of Directors. 

Getting involved with non-profits, from cultural organizations to charitable groups, allows you to give back (and that’s important), but it is also good business. If you have a cause or group you wish to support, get involved.  This doesn’t mean go to your first committee meeting and hand out your business card.  Instead, work hard, establish your professionalism, create relationships, and over time, you will establish rapport and credibility that will lead to business.  Here are some specific ideas for the “good business” of giving back.

•  Buy a table at a charitable fund raising event and invite past clients and customers.  A great way to stay in touch in a significant way with those most likely to give you repeat or referral business. They appreciate your “buying a chair” at the event in their name. While you are there, network with others.
• Donate a small portion of each commission check to charity in your buyers' or sellers’ names.  You can do this with each closing or all at once at the end of the year. Choose a cause you can be passionate about.
• Create a social card – an elegant, slightly oversized card containing only your name and basic contact information (phone and email). Use this card in your volunteer activities. This allows people to get in touch without your being viewed as inappropriately pushy. 
• Even if you don’t get involved as a volunteer, compile a prospect list of boards of directors of cultural and charitable organizations in your market.  These folks are generally affluent and may be good prospects.  Put them on your list to receive your regular Market Update Reports and begin to position yourself as a luxury home expert.

In short, as you work to give back to the community, you will also interact with those who will appreciate your willingness to give your time and energy and will be impressed with your professional approach. Over time, this can lead to the added value of generating business for you.  As Kelly Cobb believes, generous giving of yourself seems to create more abundance for you as well.  

$6.5M Sarasota home to star on Denmark TV

Fourth most watched TV show in Denmark to feature Institute member’s listing

Event marketing works and when the event is the filming and airing of a popular TV show, you have an example of really creative marketing.  Case in point:  A group of Danes invaded Sarasota recently to view a luxury property listed by Kelly Osborn, one of The Institute’s CLHMS members.  Peter Ingemann, celebrity host of Hammerslag, the fourth most watched television program in Denmark, visited the home to film a special segment of the popular show which will air in Denmark on March 20th.  (If you happen to be there, tune in at 8:00 p.m.)

As part of the event, two teams of Danish Realtors arrived to view the home and competed to guess the price of the property -- without prior knowledge of the market or location. One team guessed the current $6.5 million list price of the home, but the other team priced it higher.

Listing agent, Kelly Osborn of Florida Executive Realty, expects the show – which is viewed by 80% of the Danish viewing population -- to help bring attention to the Florida real estate market, climate, and lifestyle while highlighting how much home for the money the European buyer can expect as a result of price and currency differences.

According to Kelly, the show should spark interest from abroad, especially since Florida is a popular destination for International buyers.  Kelly is a Certified Luxury Home Marketing Specialist with the Institute. Tillykke!  to Kelly (which I think is Danish for Congratulations!)

Agent-to-the-stars sets price records despite Las Vegas market slump

The Las Vegas market may have slowed, but nobody seems to have told Realtor Aaron Auxier. For the third time in a row,  Auxier-- an agent with Luxury Realty Group -- has broken the price-per-square-foot records for both residential homes and residential high-rise condos in the Las Vegas valley. (According to his brokerage firm, all three records have been verified by multiple sources including Clark County tax records.)

The 34-year-old, who has earned the nickname "Hollywood's Connection to Vegas," recently sold several multi-million-dollar penthouses at The Harmon Hotel, Spa & Residences in the the new MGM CityCenter development.  Auxier's luxury condo transactions include sales of $1,500, $2,000 and over $2,400 per square foot. The previously recorded record was $1,300 per square foot. Over the past year, Auxier has sold nearly $30 million worth of real estate on the Las Vegas strip.

"Despite the slow national housing market, there is currently more than $30 billion worth of construction happening in the four-mile stretch of The Strip known as the Resort Corridor," says Auxier, who specializes in working with celebrities, CEOs, and professional athletes. "Certain parcels of land have realized up to an 800 percent increase in land valuation since 2004. With an ever increasing appeal to a global audience and $1.5 billion in condo sales at CityCenter in 2007, I feel the press often misunderstands what's happening on the Las Vegas Strip."

As we've said in the past, the market overall is slow, but there are some segments in the luxury market which continue to click along, in this case with the sound of slot machines in the background.