Luxury Real Estate

By Michael Marquette
From his blog: Luxury Homes Fail to Sell at Auction

It has always astonished me how many real estate agents advise everyone they meet to auction their home home. In Regional cities like Newcastle this happens all too often with the inevitable result of the property passing in, and in most cases not even receiving one bid from a potential buyer.

The process is horrendous for vendors who quite often have their hopes set high only to have them come crashing down on auction day. Potential purchasers use the fact that the property passed in to show that there is little if any interest in the home and accordingly offer much less for the property or just wait for the price to continue falling in the hope of snapping it up for a bargain price.

This is even truer when looking at luxury homes in sort after suburbs in Newcastle like The Hill, Bar Beach and Merewether. Twenty-seven homes were put to auction in the Hunter yesterday with only eight selling, for a clearance rate of just 30 percent. Even more interesting is that the highest price paid for a property sold at auction yesterday was just $452,000!

It is more important than ever to choose an agent with the experience, qualifications and knowledge of the luxury market when selling your home. The one-size-fits-all approach simply doesn’t work when selling luxury properties and is even more important when selling property in Regional cities.


Editor’s Note:
Michael Marquette is the co-Founder and Director of Marquette Turner Luxury Homes in East Sydney, New South Wales, Australia. Founded on Australia Day 2007 by Marquette and Simon Turner, Marquette Turner is a property consultancy company covering the Australian states of New South Wales and Victoria. Marquette has a background in medicine and a large retail and wholesale business. Very interesting. An inexperienced real-estate agent might not know the best way to sell a home in the current market, so it’s important to choose wisely. Otherwise, buyers might not bother to pay attention to sellers’ efforts. The photo above is from www.flickr.com/photos/rickmccharles/2269842297 and it is the copyright of Rick McCharles.

By Robert Lockard

There are so many fun one-liners I could use to sum up this story, it’s hard to pick just one. I’ll go ahead and try this one: Elvis has left the building, and now that building can be yours! Yeah, that’ll work.

Elvis Presley’s “Graceland West” estate in Palm Springs, Calif. is now for sale. Talk about a house with some history, this two-acre estate, nestled in the foothills of the San Jacinto Mountains, is where Elvis (the king of Rock and Roll) lived for almost eight years, recorded eight songs in the living room in 1973 and spent his last birthday. He died on Aug. 16, 1977 at the age of 42.

The seller of the estate is being represented by Honey Brooks of Pacific Union GMAC Real Estate, a member of Luxury Real Estate in the San Francisco Bay Area. If you’d like more information about this historic luxury property, email Honey Brooks or call her at 415.345.2585. You can also read much more about this property in a news release by Karen Monroe on LuxuryRealEstate.com.

By the way, whenever I think of Elvis Presley, the first thing that comes into my mind is the scene from “Top Secret” (1984), one of the funniest movies I’ve ever seen, where Val Kilmer sings his hilarious rendition of Elvis’ famous song “Are you Lonesome Tonight?” Thanks to the magic of YouTube, you can watch Val Kilmer’s version and Elvis’ original below. Toward the end of his parody of the song, Val Kilmer sings so well that it’s hard to distinguish him from the king!






Editor’s Note:
Robert Lockard is the Public Relations & Media Specialist with LuxuryRealEstate.com. I am Robert. I create all of Luxury Real Estate’s newsletters, write the editorials in LuxuryRealEstate.com Magazine and much more. I was really tempted to call this blog entry “Wake up with the King” Luckily, I refrained. You can share your blog entries on the Luxury Real Estate Blog by emailing them to me. The Elvis Presley portrait is from www.flickr.com/photos/bootbearwdc/2491351807 and it is the copyright of dbking.

By Brian Langhorst

I have heard many times over that print is dead, but this is false information! Whoever is saying this does not know the audience for luxury homes and their habits. Yes, people look to the Internet for information and, according to a National Association of REALTORS® survey, over 80% of home seekers are starting their search online for real estate.

The main question we should think about is how do they know where to look for real estate online? The answer is print!

I had a very interesting conversation yesterday with Victor Lund, co-Founder of the WAV Group. He said that the typical consumer segment of the luxury property market still looks through newspapers, magazines, and other print media for news and information. Customers need guidance and print provides this guidance to learn more about real-estate opportunities on the Internet. With a proper call to action this high-net-worth audience will be driven to your website through your print advertising campaign.

I look forward to your replies. Let me know how we can help you create targeted print ads to drive more traffic to your website.


Editor’s Note:
Brian Langhorst is LuxuryRealEstate.com’s Membership Manager. He meets members’ unique needs through the dynamic services LuxuryRealEstate.com provides. Victor Lund was so kind and helpful when he came to the Luxury Real Estate headquarters here in Seattle. He had a lot to share about our Web site, which is the most-viewed luxury real estate site in the world, and many other topics like the one Brian just discussed. It’s always nice to meet nice geniuses and well-grounded visionaries. The photo above is from www.flickr.com/photos/joebeone/2528716096 and it is the copyright of joebeone.

By Jean-Yves Piton

While luxury properties are part of the conspicuous consumption group, unlike several other goods, their proposed premium prices are not a function of the premium brands they are attached to. Instead, factors such as location, amenities, space, architecture and historical value justify their premium prices around the world.

So, what type of luxury homes would you acquire in major metropolitan cites worldwide for $1 million USD in 2008?

According to “What $1 Million Buys in Homes Worldwide” by Matt Woosley, Friday, January 11, 2008, provided by Forbes.com, in New York, you can expect a 647-square-foot Turtle Bay condo with 45-square-foot balcony, white oak floors, and 11-and-a-half-foot ceilings. In London, you can purchase a one-bedroom, one-bathroom flat in Primrose Gardens. In Hong Kong, you can acquire a three-bedroom, 825-square-foot apartment in a high-rise between the residential areas of Aberdeen and Pokfulam.

While $1 million USD grants an invitation to the millionaire's club, it clearly does not buy the most spacious and astonishing luxury property in most top metropolitan cities worldwide in 2008. Based on the figures discussed earlier, such properties might just work as a pied-a-terre during a business trip or a short vacation.



This also explains why more buyers are currently opting for luxury fractional ownership, the trend ahead. This being said, keep in mind that this rapidly increasing trend applies to everything luxury in 2008 (from designer handbags to the finest properties).

So, how do you market a luxury fractional property? Evidently, it is easy to assume the same way you would promote a luxurious property. Partly due to the traditional premium variables like location, amenities, space, architecture and historical value. Also, though a fractional ownership, you could insist on the long-term investment, just as for any other luxurious property.

Nevertheless, there is another element, which must not be omitted to successfully advertise a luxury fractional property. That is promoting the dream to potential buyers and investors. There must be a fine balance of both emotional and rational communications to connect potential buyers to the properties through careful advertising. Where the rational communication focuses on owning a luxurious property (one of a kind), promoting the dream (the emotional communication) helps foster a sense of emotional connection (a state of being and/or sense of being).


Editor’s Note:
Jean-Yves Piton is the Global Services Membership Manager for LuxuryRealEstate.com. He assists Bente Madtsen, the Director of Global Services, in expanding the LuxuryRealEstate.com brand into even more countries around the world. Fractional ownership is a great tool for vacationers and other people looking for flexibility and great investment opportunities. I actually wrote an editorial on Private Residence Clubs, also known as fractionals, in the spring 2008 issue of LuxuryRealEstate.com Magazine. Check it out! The photos of the front and back of the “$1 million” bill are the copyright of Simon Davison.

By Robert Lockard

Jim Walberg, the co-Owner/Broker of The Bay Area Team in San Francisco, told me something really cool a few days ago. He said, “Bloggers are the most open and sharing community I have found on the Internet. They want every blogger to win!” I have definitely found that to be true.

As a blogger, I often find myself learning a great deal about what is effective and what is not from other bloggers with more experience than me. I have received a lot of positive feedback and support in my blogging from Eric Kodner, a luxury homes Broker with Wayzata Lakes Realty and Madeline Island Realty. Eric is an awesome blogger, and he has more than 110,000 points on ActiveRain.

In addition, I just did a simple search on ActiveRain for “blog tip” and I found a whole bunch of great ideas for improving my own blog posts. I particularly like Ronnie Roach’s Blog Tip of the Week. He confirmed my suspicion that I should use a different term than “blog” to describe each post I write. Another great resource is the Daily Blog Tips Web site.

There are many other examples out there, but these show how helpful and open the blogging community is. Jim is right! He’s been blogging for two years and he currently has two blogs, one called Caribbean Islands Realty and another called East Bay Real Estate. He also contributes many of his blog posts to the Luxury Real Estate Blog, which I appreciate very much.

I appreciate all the people who take the time to let me know when they agree with what I write and those who share their disagreements, too. Feedback is very helpful, and bloggers are often happy to give it. In fact, I hope you feel free to let me know if you think I’m a little naïve on this topic or to share your own experiences with helping fellow bloggers or receiving help from them.

By the way, Jim shared this quote with me as I was writing a news release about his upcoming presentation at the 13^th Annual Luxury Real Estate Fall Conference on effective blog strategies and tactics and the positive effects that can come from blogging. This event will be in Philadelphia on October 11-14, 2008 and you're welcome to attend.


Editor’s Note:
Robert Lockard is the Public Relations & Media Specialist with LuxuryRealEstate.com. I am Robert. I create all of Luxury Real Estate’s newsletters, write the editorials in LuxuryRealEstate.com Magazine and much more. You can share your blog entries on the Luxury Real Estate Blog by emailing them to me. Thank you very much! The photo of Rosie the Blogger is from www.flickr.com/photos/notionscapital/2493066577 and it is the copyright of Mike Licht, NotionsCapital.com.

By Jean-Yves Piton

The classic marketing mix, with its 4 Ps (Product, Price, Promotion and Place), is evolving to meet current global business needs. It now includes 3 more Ps: Positioning, Packaging and People.

Keep in mind that Positioning should not be confused with Promotion. Although advertising efforts are inherently part of both Promotion and Positioning, the latter P mainly focuses on your competitive position within the marketplace and image amongst consumers.

Are you and your firm positioned as “the luxury real estate expert” in the marketplace? You must ask yourself this question to better compete in the global struggle for differentiated products, services and brands.

How are you and your firm’s products and services perceived by your prospects and clients? In essence, your positioning strategy should assist you with your brand recognition in the marketplace.

Your advertising efforts support your positioning strategy, which, in turn, builds your brand equity.

For instance, BMW has used the slogan “Ultimate Driving Machine” for over three decades now, positioning this tagline as the ultimate one in the automotive industry. BMW clearly advertises its passion and talent for top innovation and engineering, which positions its brand as one of the finest amongst luxury consumers.

In fact, Jack Pitney, Vice President of Marketing, BMW North America clearly articulated that: “BMW has carved out a unique niche in the industry by placing a premium on constant innovation and inspiration and this campaign will reveal the company behind The Ultimate Driving Machine.”

To that effect, while crafting your marketing plan you should carefully select your advertising initiatives to reach and appeal to your targeted audience. Your advertisements should unmistakably position you and your firm not just as “a luxury real estate expert” (one amongst many others), but as “the luxury real estate expert” (the best).


Editor’s Note:
Jean-Yves Piton is the Global Services Membership Manager for LuxuryRealEstate.com. He assists Bente Madtsen, the Director of Global Services, in expanding the LuxuryRealEstate.com brand into even more countries around the world. What a great discussion. It’s definitely important to position yourself, through word and deed, as a standout performer. The photo of the blog apartment building is from www.flickr.com/photos/paytonc/925383449 and it is the copyright of Payton Chung.

By Robert Lockard

I recently read a wonderful story I would like to share. It’s about a 70-year-old Cora Bett Thomas Realty sales associate named Nash McIntosh, who swam for five hours from Tybee Island, Ga. to Hilton Head Island, S.C. I’m about one-third of his age and I can’t imagine swimming that kind of distance. In May, I ran for a little over two hours in my first half-marathon and that left me sore and unable to walk for several days. So five hours of physical exertion seems nearly impossible to me.

I found this story on the Cora Bett Thomas Realty Blog, and they got the story from an article in Savannah Now in the Savannah Morning News entitled “’Forrest Gump’ swims from Tybee to Hilton Head Island.”

The reason why they used Forrest Gump in the title of the article is because McIntosh compared himself to that fictional character who kept working at everything he did, even when it seemed hopeless. McIntosh is just as dedicated and he actually attempted this long swim three times before he finally accomplished it last week. He turned 70 in May, and that apparently motivated him to finally take the plunge and make it the whole way.

He had quite a few adventures along the way, as you can imagine. He bumped into a few not-so-friendly animals during his swim, including a small shark. Yikes! Luckily, nothing bad came of that dangerous encounter. Check out the full story for all of the amazing details about his journey.

To follow my own blogging advice, I’ll point out that the photo of McIntosh above is the copyright of Cora Bett Thomas Realty.


Editor’s Note:
Robert Lockard is the Public Relations & Media Specialist with LuxuryRealEstate.com. I am Robert. I create all of Luxury Real Estate’s newsletters, write the editorials in LuxuryRealEstate.com Magazine and much more. This story is also found in the July 8, 2008 Week in Review. Cora Bett Thomas Realty is a member of the Luxury Real Estate Board of Regents.

By Brian Langhorst

The luxury real estate market place is filled with various companies with very strong branding messages for the corporation. What are you as an agent doing to stand out from the other competing agents in your own company?

Editor’s Note:
Brian Langhorst is LuxuryRealEstate.com’s Membership Manager. He meets members’ unique needs through the dynamic services LuxuryRealEstate.com provides. Short and sweet – just the way I like blog entries! LuxuryRealEstate.com can help you stand out with print and online advertisements in The Wall Street Journal, LuxuryRealEstate.com Magazine and more. The above picture is from www.flickr.com/photos/vieuxbandit/499540173 and is the copyright of vieux bandit.

By Yvonne Harvey

With the Fourth of July weekend just around the corner, I can’t help but talk about the Declaration of Independence. And, of course, it all happened in Philadelphia, where we are holding our 13^th Annual Luxury Real Estate Fall Conference!

I found some interesting factoids on the famous, or maybe infamous, painting by John Trumbull, simply titled “Declaration of Independence.” As you know, paintings back then were the cameras of today. And this painting today would more likely be in the tabloid section or propaganda fodder. There are so many historical flaws in this painting, that its historical relevance is almost moot.

You may remember, if you read or watched The Da Vinci Code, how you instantly went and looked closely at the painting. Well, this might just make you want to take a look at this one, too. Look under the desk at the legs of our standing forefathers. They seem to be disproportionate to their bodies, especially Thomas Jefferson’s leg.

The painting includes 48 portraits. Of those 48, 43 were signers and 5 who may have been there, but did not sign the Declaration of Independence. Please note there were 56 signers of the Declaration of Independence. Hmmmm… several seem to be missing.

The painting itself was piecemealed together. It is said that John Trumbull carried his canvas with him to take advantage of any occasion which might arise; this would be comparable to our picture phone today. Many of the portraits were painted directly onto the canvas from life between 1789 and 1794, or sketches Trumbull had done in earlier years, i.e. John Adams in 1787 in Paris. If an historian wants to correct me here, please chime right in, but I need to ask this question. Wouldn’t that mean the attendees may appear as much as 18 years older from the date the Declaration of Independence was adopted? If my calculations are correct John Adams was 41 when he adopted the Declaration of Independence, and yet Trumbull sketched him at the age of 52. Just thinking out loud.

It is also historical fact that Trumbull was unable to meet all 56 signers of the Declaration of Independence; in nine of the cases the attendees had died before the opportunity arose. In some of these cases he painted from portraits hanging in the “Independence Chamber.” Since then, four of these portraits have been deemed fake. One, in particular, is the so-called portrait of William Whipple who died in 1785, and yet the signer of the painter is St. Memin, who was only born in 1770 and didn’t even come to America until 1793. Historians now agree the portrait is of a Joseph Wipple (note the spelling of his last name is even different Geesh!).

Painter Robert Edge Pine had an unfinished painting “Congress Voting Independence,” which historians agree was more historically accurate than Trumbull’s. And yet, we use Trumbull’s painting in many history books. Pine actually lived in the very building and painted in the “Independence Chamber” It appears that Trumbull embellished the room in his painting with colorful red, white and blue, and even had the wrong furniture. We know this because the actual desk and chair used by John Hancock is preserved in the Independence Hall. Again, Pine’s depiction is much more accurate.


Finally, I find this quite weird, even the Internet is unclear on the spelling of John Trumbull’s last name. Some spell Trumbull, and some spell Trumball. Oy!

Whew! I feel like I just did a whole book report for my teacher. I hope you enjoyed my little rant.

See you in Philly!


Editor’s Note:
Yvonne Harvey is the Events Coordinator for LuxuryRealEstate.com. So when you come and enjoy the wonderful presentations, discussions and networking opportunities at Luxury Real Estate conferences, you know who to thank. History is quite amazing, isn’t it? I love the Founding Fathers and I am always amazed by how much they sacrificed to fight tyranny and establish the first nation of liberty. George Washington is one of my biggest heroes and he is one of the best people who ever lived, in my humble view. The two pictures above are from http://commons.wikimedia.org/wiki/Image:Declaration_of_Independence_(John_Trumbull).jpg and www.loc.gov/exhibits/jefferson/images/vc53.jpg.

By Robert Lockard

Check out this great article I recently read in the Arizona Daily Star, entitled “Home, art inside are both for sale.” I think the sellers in this article are onto something pretty smart by joining forces with a local art museum to sell their property.

Author Christie Smythe points out that showing art in a home can be beneficial for both the artists and the home sellers. Beautiful paintings, sculptures and other pieces of art can add something special to a home that makes it more memorable to potential buyers. Plus, the artists receive exposure to new viewers and their works of art are sold with the house.

This takes home staging to a whole new level. Ordinarily, a staged home isn’t sold in the condition in which it is first shown to buyers. But in this case, all of the art will stay with the house when it is purchased. That’s a pretty novel idea, I think. This is a smart solution because both art and real-estate markets in many parts of the United States are falling on hard times at the moment. Perhaps by joining forces, these two industries can prove that the whole is greater than the sum of its parts.

The photo above is courtesy of Ilya Estate Photography.

Barbara Stahura, a talented freelance writer, brought this article to my attention. She recently interviewed John Brian Losh, the CEO/Publisher of LuxuryRealEstate.com, for an article she’s writing on “green” luxury homes for an upcoming issue of Steinway & Sons Magazine.


Editor’s Note:
Robert Lockard is the Public Relations & Media Specialist with LuxuryRealEstate.com. I am Robert. I create all of Luxury Real Estate’s newsletters, write the editorials in LuxuryRealEstate.com Magazine and much more. What do you think about this creative idea? What are some other ways brokers and agents can attract luxury real estate buyers in tough markets?