Luxury Clues

America's Most Expensive Homes for 2012

Would you like to take a look at some of the most expensive homes in the U.S.? If so, Forbes has just published a photo gallery of some of the most expensive homes that have either sold or been listed recently. 

One of the most interesting facts about the ultra luxury market is that many of the most expensive homes are never marketed on the Multiple Listing Service. Instead, these properties are said to be "discreetly marketed." The agents who handle these homes market them privately through their own network of personal contacts. In fact, many of them provide concierge type service coordinating not only the various aspects of the sale, but the move as well. 

There are a variety of reasons that the ultra wealthy choose to market their homes privately. First, people who have this type of wealth are often targets of kidnappers and/or thieves. Allowing someone to see the artwork, the floor plan, or where the kids' bedrooms are can put the family at risk. 

Second, many of them don't want the publicity about what they are doing, where they are moving, or anything else having to do with their private lives. In fact, one of the quickest ways to kill a luxury client relationship is to say anything about your client. Furthermore, I've seen business managers and attorneys require agents to sign a non-disclosure agreement before they were ever allowed to know who the client was or where the property was located. 

Even if you don't work the luxury market, a fun tool to share with your clients is the Zillow Widget that identifies the most expensive homes in your area. 

Posted by Bernice Ross

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Two Simple Ways to Stage Your Luxury Real Estate Listings Online

Properly staging a property for sale and taking plenty of pictures of the interior, is one of the most powerful ways to generate web leads as well as to ultimately get the property sold. When it comes to staging, there are essentially three primary levels: decluttering and working with existing items, making simple improvements and repairs, and full out remodeling. 

The issue becomes what to do when they owners either don't want to stage the property or simply don't want any photos taken of the interior. 

When you represent luxury properties, getting a major estate can be both difficult and often quite pricey. To illustrate this point, can you imagine telling the owner of a $5 million home that the decorating that they paid big bucks for is actually going to make their home difficult to sell?

Another time that staging can become an issue is when your sellers may have beautiful art work or other fine objects in their home and they simply don't want pictures of their property online. In other cases, especially if they are extremely wealthy, your sellers and other family members may be concerned about kidnapping. 

The question becomes what can you do to market their property online when you may be unable to take interior photos of the property. You can now virtually stage your properties using one of these two virtual staging tools. 

1. 3-D Open House

The product from United Lane allows you to take a 2-D floor plan and completely stage the house without ever stepping inside. In fact, when I first saw the demo of the product, they actually took a picture of me and posted it on the living room of the house we were staging. This powerful tool is a great listing as well as a great lead converter. The great news is that once you do on the online staging, the system produces a 3-D photo realistic picture of the rooms you have staged. The picture at the top of this post shows you how effective this actually is. Keep in mind, all of this was generated from a floor plan--no photos.

2. Obeo's V-Stager

If you can get the sellers to move their furniture around where it's out of the shot (or if the property is vacant),Obeo's V-stager provides an amazingly realistic staging of your listing. If your buyers are having trouble imagining what a property would be look like in their colors and with the furniture they select, this tool also provides a terrific way to stage online without ever having to go through the process prior to the sale. The two photos below illustrate how this works: 

 

 

 

 

 

 

 

 

Each of these tools can help you convert listing appointments into signed listings and even better, get that not so attractive property sold because both you and your potential buyers can decorate it online. 

Posted by Bernice Ross, Join us this week on RealEstateCoachRadio.com with New York Times Best-Selling author Don Hutson, the author of the One-Minute Negotiator. If you want to negotiate more effectively, you can’t afford to miss this incredible two weeks of shows with Don. Last week Don did five great shows on the topic of: The Selling Style that Works. This week Don does five more shows that include the following topics: Monday,     Your Database Is the Currency of Your Future. Tuesday:  The Seven “P’s” of Entrepreneurial Success. Wednesday: Four Negotiation Styles You Need to Know. Thursday: How to Overcome Negotiaphobia. Friday: The “Do’s” and “Don’ts” of Compromising. 

A $1.5 Million Dog? Lessons for Earning a Full Commission

In case you haven't seen the article, a multi-millionaire coal baron in China just paid $1.5 million dollars for a Tibetan Mastiff. This is the most expensive sale in history. The dog is magnificent and supposedly the owner will recoup the price within two years on stud fees. Click here to see a photo. 

Now you may be curious about what this dog has to do with earning a full commission. The point here is that people will happily pay a premium for what they perceive to valuable. The secret to earning a full commission is to provide two or three unique services that your competitors do not provide. This becomes your premium marketing proposition. 

Many agents think that providing premium services may be too much of an effort. The truth is that the difference between mediocre and great is probably much smaller than you realize. The key point is to focus on what is of value to the seller.

For example, if you can demonstrate that your listings consistently sell faster and at higher prices than those of your competitors due to your aggressive online marketing program, that difference will normally be enough for the seller to agree to a higher commission. Maximum exposure to the market results in maximum price. Again, people will happily pay a higher fee when they see a benefit to them. In this case, the benefit is NETTING more money in their bottom line. 

The second point here is that many premium agents actually end up netting their sellers more money than those agents who discount. The reason? They have strong negotiation skills. In fact, one of my favorite scripts that works brilliantly is this one:

Mr. and Mrs. Seller, so John Agent offered to reduce his commission from 5 to 6 percent is that correct? If John can't even negotiate a full commission on his own behalf, how effective do you think he will be in negotiating the highest possible price for your property? 

Posted by Bernice Ross, Would like 82 scripts that show you how to defend your commission? If so, check out our Waging War on Real Estate's Discounters audio CDs as well as my best selling book, Waging War on Real Estate Discounters.)

 

 

A Lesson in Closing from Bravo's Million Dollar Listing

Last night I couldn't get to sleep. There wasn't much on TV at 3:00 a.m. however, there was an episode of Bravo's Million Dollar Listing. 

It's always interesting for me to watch these shows because there's some truth but also a lot of glamorizing about what goes on in the luxury market. The idea of doing verbal negotiations on the phone for multi-million dollar properties may happen, but the actual process doesn't usually resemble the TV show. First, almost all the high end folks have attorneys and business managers. You negotiate with them. The client says "I want this property" and then it's up to the money folks from there. 

My experience has been that the business managers want reams of supporting comparable sales data. They will dig through every last detail. Of course, that doesn't make interesting TV.

The one thing on this particular episode that I thought really reflected great closing skills was how the situation was handled for the developer who had a $5 million listing that was not selling. The only offer was for a lease at $50,000 per month. 

The listing agent correctly surmised that if he could turn the seller on to another project, he could close a lease deal as well as a sale on another property. 

Instead of meeting the seller at his office or at the listing, the agent decided to have the meeting at a listing that would be perfect the developer's next project.

When the listing agent first broached the idea of a lease, you could tell the seller had no interest. The agent didn't give up, however. Instead, he correctly pointed out that the seller would make $600,000 in terms of rent and that would give him a positive cash flow. That's much better than sitting there with a vacant property. 

The agent sealed the deal when he pointed out what the developer could do with the next property. He understood the developer mindset--they're always looking for the next deal. When they have finished a project, they're eager to start a new one. 

Regardless of which price range that you're working in, understanding what makes your buyers and sellers tick is critical when it comes to negotiating deals. 

According to some negotiation experts, there are only two ways to close a deal--one is with "brightness of the future." This is for the person who is looking forward to the change in their living circumstances. Closing has you point out all the good things that will take place from the move.  

The other approach is called, "turn up the pain." This approach works well when someone wants to get away from noisy neighbors, end a long commute, or have more than one bathroom for the teenagers. To close in this situation, point out how miserable the current situation is and how great it will feel to put an end to it.

Remember, one of the most important questions that you can ask your buyers and sellers is, "What's motivating you to move?" When you know their motivation, closing becomes much, much easier.

Posted by Bernice Ross. This week on RealEstateCoachRadio.com we’re pleased to welcome real estate’s leading expert on keeping safe—Andrew Wooten of www.JustBeSafe.com. Andrew’s book, Live, Work, and Play More Safely, addressed the challenges we face today in maintaining our safety at open houses, listing appointments, and vacant properties. Andrew has been speaking on safety for 26 years and has interviewed a number of felons about how they target their victims. Join us to learn about what you can do to protect yourself and your family both on and off the job. 

 

 

 

 

Two Great Resources for Photographing Luxury Houses

As I was working on what to post this week, I came across a previous post on this blog that linked to an article by Laurie Moore-Moore's Institute for Luxury Home Marketing on how to write great real estate headlines. In that article, Laurie provided a link to Stan Barron's beautiful PDF file called "How to Photograph Houses."  This is a beautifully illustrated guide to how to make your photos of your listings look better than ever. Although it was written in 2007, the core concepts are still excellent. 

A second resource comes from our friends from Kodak. I just got my Kodak Playtouch camera that has all kinds of nifty features including a "share" button that lets you post your pictures on the social media. This is incredibly simple.

What's really exciting about this new camera is that it works with what is known as a "fisheye" lens.  This is awesome for Realtors since it lets you shoot panoramic shots without having to stitch them together. The camera has a steel attachment around the outside of the lens. The "fisheye" lens has a magnetic ring around it so it attaches simply to the Playtouch.

Tech Savvy Agent has a great review of this new camera including the complete laundry list of what to purchase. There are also  plenty of pictures that illustrate exactly how to use this great new tool in terms of marketing your listings. 

The great thing about using the Playtouch is that you can give it to your luxury buyers when they go out to see property. Ask them to photograph what they like and it's easy to upload the photos online. This is an excellent way to provide stellar service that your luxury buyers will remember.

Posted by Bernice Ross

Need help taking your business to the top in 2011? If so, check out RealEstateCoachRadio.com. This week our guest is New York Times Best Selling author Don Hutson, author of the One Minute Negotiator and The One Minute Entrepreneur. Don't miss these great tips from one of America's most honored speakers and authors.

 

 

A Great Gift Idea for Luxury Clients' Children

I was recently on a call with my good friend Donna Lee Laue of UniqueGlobalEstates.com. Donna works exclusively with the luxury market. There is still quite a bit of money sitting on the sidelines. What she has been seeing as a trend, however, is that a number of luxury clients are opting to pay all cash to buy starter homes for their adult children. 

While this may not be an option for every luxury client, many of them believe that now is a good time to invest in real estate. In fact, the research shows that fortunes are made not in the boom markets, but during recessions. 

Part of the reason many smart luxury clients are purchasing now  is that smart investors are contrarians. They will buy in recessionary markets and sell in boom markets. 

Buying a house now is simply a smart idea. Prices in many areas are so depressed that luxury cars are more expensive than many houses. 

Due to the high amount of U.S. debt, our government has already started printing money. The result in the long term is usually inflation. Consequently, purchasing a home for your kids is not only a great gift for them, it's a smart business decision as well. 

To take advantage of this trend, consider sending out a high quality letter or brochure that outlines the advantages of purchasing now as a hedge against inflation as well as providing the gift of a lifetime for their children. 

Posted by Bernice Ross--If you like this blog, check out our Listen and Learn Real Estate Program. It has over 225 audio posts, each 5-60 minutes in length. This is the best compilation of short training modules available and it's only $97.00. Don't you deserve the gift of more business in 2011--if so, this is a great way to hit that very important goal--Happy holidays!

 

 

 

The Million Dollar Christmas Tree & the $130,000 Christmas Bauble

At holiday time, it's always fun to look at some of the most unusual as well as extravagant decorations a in the world.

This year we begin with a million dollar Christmas tree designed by Singapore jeweler Soo Kee. It has 21,798 diamonds totaling 913 carats, 3,762 crystal beads and 456 lights. The tree is almost 20 foot tall and weighs over 7,000 pounds – Price – $1,005,000

Or perhaps your taste is for expensive Christmas ornaments. How does a white mink trimmed Santa with crystals sound? It's only $300. Or perhaps you would prefer the the 12 piece Nativity set--that's a great deal at $2,000.

If you're feeling really extravagant,Hallmark Jewelers does not disappoint. Their "Christmas bauble" retails for $130,000 and is covered in diamonds set in gold. 

Happy decorating!

Posted by Bernice Ross. Wishing you and yours a very Happy Thanksgiving

 

 

 

 

The Millionaire Next Door: Steve Jobs?

In a recent post I described the difference between the Millionaire Next Door mindset (conservative spender, understated, others often don't realize the magnitude of their wealth) vs. the Richistani mindset (flashy cars, big mansions, and lots of bling.)

There's no question that Steve Jobs, the CEO of Apple Computer, qualifies as a Millionaire Next Door. Nevertheless, his choices regarding his new custom home may surprise you. Take this quiz to determine how well you can guess what the CEO of Apple wants in his home. 

1. How big is the house that Jobs will be tearing down to build his new home? 

a. 4,000 square feet

b. 8,000 square feet

c. 13,000 square feet

d. 17,000 square feet

2. How big is the new house he will build?

a. Under 5,000 square feet

b. 8,000 square feet

c. 15,000 square feet

d. 20,000 square feet

3. How large is the new garage? 

a. Three car

b. four car

c. five car

d. ten car

4. How many bedrooms will the new house have?

a. 3    b. 5    c. 8    d. 10    e. 12

5. How many bedrooms did the house he is tearing down have?

a. 4    b. 5     c. 8     d. 10.    e. 14

6. Will each bedroom have it's own bath? 

a. YES      b. NO

Unlike Bill Gates who has a 66,000 square foot mansion, Jobs is going in the exact opposite direction. Jobs will be tearing down a 17,000 square foot Spanish Revival home with 14 bedrooms, 13.5 baths and replacing it with a new house that is only 4,900 square feet. His new home will have five bedrooms, a three car garage, and the secondary bedrooms will share a bath. The floor plans are on Gizmodo. The property looks like a big rectangular box. Then again, Jobs likes to keep it simple although apparently the build out will cost $8.4 million (can't figure out why he didn't have a bathroom for every bedroom when he's spending that much money.) 

Posted by Bernice Ross. If you're serious about representing luxury clients and want a proven luxury real estate listing presentation, check out my book Real Estate Dough, Your Recipe for Success It contains the listing presentation materials I used in Brentwood and Beverly Hills to convert 93 percent of my listing appointments into signed business. Can you afford to be without it at your next luxury listing presentation? 

 

The Newest "Most Expensive House" in the World

 If you're in the luxury real estate business, it's important to keep up with what is happening both locally as well as nationally and internationally in terms of the properties that are leaders in terms of price. We have several here in the U.S., but the current title holder for the most expensive house goes to a new condominium subdivision in London, One Hyde Park.

While the U.S. market has found it difficult to break through the $100 million barrier (there have been a few properties that have done so), the two story, six bedroom apartment in Knightsbridge blasted through the $200 million barrier selling for a cool $140 million pounds (almost $224.6 million). Speculation is that buyer is either Middle Eastern or Nigerian. 

The property is still under construction with a scheduled completion date of December, 2010. If you visit the website, they have a series of six time-lapsed photography videos that show the construction through every step of the process. Going through all the construction videos is a little tedious, but skipping through them provides an amazing education about what is required to produce a project of this magnitude. 

Posted by Bernice Ross

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Quiz: Which of these Houses Has the Highest Price Tag?

 If you're in the luxury market (and even if you're not), it's fun to have a peek at the world's most expensive properties. Below you'll find descriptions of several of most expensive properties currently on the market in the U.S. Do you know which one has the biggest price tag? Take the quiz (and check below my signature line) to find out. 

1. Tranquility, the 210 acre property located at Lake Tahoe. The owner is Joel Horowitz, the co-founder of Tommy Hilfiger.

2. Fleur De Lys, located in Bel Air (Holmby Hills), this 45,000 square foot mansion was modeled after the Palace at Versailles. It is covered in gold leaf and boasts furniture that includes Napoleon's favorite chair and Marie Antoinette's fireplace screen. The owners even outbid the Louvre for some of the pieces in this home. 

3. The Manor: The Aaron Spelling estate, a 100 room property situated on 4.7 acres in Holmby Hills boasts numerous gardens, entertaining salons, and every luxury Hollywood success can buy. 

4. The Albemare House, located in Charlottesville Virginia situated on 300 acres adjacent to Thomas Jefferson's beautiful Monticello. 

To see which homes were the most expensive, scroll down below my signature line or check out the photos on Forbes. 

Posted by Bernice Ross, co-host of the hottest new radio show for the Real Estate Industry--RealEstateCoachRadio.com Just 5 minutes a day, five great real estate tips, available 24-7 on your computer or downloadable to your smart phone or iPod. 

Which houses were the most expensive?

1. The Manor $150 million.

2.  Fleur de Lys last year's winner at $125 million.

3. Tranquility and Albemare tied for third at $100 million.