I recently had the honor of joining in a panel discussion at Inman Connect for their 20th Anniversary conference in San Francisco alongside Paul Boomsma of Luxury Portfolio and Elizabeth Anne Kivan of Stribling and Associates in New York City.
The panel, entitled “The Big Chill: How to get Your Luxury Clients off the Fence in Uncertain Times”, gave insight on current dynamics and how today’s market is impacting high-end property seller and buyers. The panel also featured marketing and sales strategies that real estate professionals can start doing today to combat the uncertainty of tomorrow.
I’ve broken up my top three takeaways into this three-part blog series. Last week, I discussed being honest with your clients. Here is the second part.
2. The first 30 days are your window. Crush them.
Our research shows that the largest factor in determining the price of a luxury property is the number of days that the property has been marketed for sale, or total Days on Market (DOM). When you’re selling an ultra high-end property, even in the hottest or coldest of markets, generally one of two things will happen. The home will either sell quickly (oftentimes within the first 30-60 days) and for a relatively high percent of asking price. Or, the home will linger on the market for three, sometimes even five years. For most properties in the U.S., somewhere between 90 and 180 days the DOM become exponentially more toxic, advertising loses impact, and getting an offer for anywhere near asking price becomes less likely.
Days on market are your enemy. They are like UV Rays to the skin. We know they are not good for you, and the longer you are exposed, the more dangerous they become. The first 30 days are critical. Be prepared. Come out of the gates strong, knowing that you have done everything you can do to make the sale happen for your clients at the front end of the exposure cycle — before DOM spiral.
Our process is accelerated. Our properties sell within 30-45 days after first exposing them to the market. When we take a property to market, we do so on what we call its “Launch Day.” This is the date when the property goes live to the public for sale. And, we hit hard.
Everything is prepared in advance, including: • All photography • The film • All messaging and copy • The advertising plan • Etc.
On Day One, the property isn’t just listed in the MLS. All advertising, press outreach, signage, and open houses, start. The ground has been hit, and we are running at full-speed.
Marketing Tip: We are known for selling unique properties. When we market them, we focus on lifestyle. Oftentimes, buyers are more elastic than you might think. For us, that means that while someone might say they are looking for a second home only in Hawaii, if an opportunity in Fiji presents itself, they might be open to a location change so long as the lifestyle is a match.
The same holds true for your own market. Marketing lifestyle is key, particularly for high-end properties in the top price thresholds that are not only larger in size, but also have a host of amenities custom and tailored to them. Consider not including square footage in your marketing, and leaving these specifics to the MLS listing. Highlight the opportunities for potential usage, not just what they’ve been used for in the past.