Table of Contents Acknowledgments Introduction Chapter 1: Learning what to do (and why) from an auction Chapter 2: Luxury Real Estate and the Luxury Market Chapter 3: Five Ways (and more) Luxury Markets Are Different Chapter 4: The Key to the Gate: a Power Marketing Mindset Chapter 5:
Seven Step Pricing – No Fingers in the Air
Chapter 6:
Finding Buyers and Qualifying Them
Chapter 7:
Listings that Explain it all: Le Domaine Résistance
Chapter 8:
Listings that Explain it all: Clarendon Court
Chapter 9:
Business Essentials of a Listing Contract
Chapter 10: For Sale by Owner Chapter 11: Getting a Higher Commission and why you should Chapter 12: Tips for the Rookie and for the Pro Chapter 13: Postscript: Thoughts on Human Nature and Luxury Real Estate Appendix Footnotes
Introduction This book is an invitation to join the elite world of agents marketing luxury real estate. By its end you can own the keys to “unlock the gate” to listing and selling luxury real estate, to becoming the millionaire’s real estate agent. I have termed these metaphorical keys power marketing. Power marketing is both a mindset and a series of actions that maximize the chances of competitive bidding for any property. It is different from the property marketing tools you use daily; the local MLS, advertising, promotion and now national websites. Power marketing wrenches more buyers out of these tools and focuses on what you need to do with those buyers. Power Marketing’s addresses directly the differences in the luxury market and creates competition for luxury properties. It grows out of the unique requirements of a market that is extremely small, where buyers, due to their wealth, do not have to buy and it overcomes their lack of urgency to do so. Moreover, by presenting buyers their competition power marketing actually makes them feel more comfortable to buy and often bid higher. It creates an orchestrated moment when offers come in and many problems associated with reluctant buyers dissolve. Power marketing is the expertise you should possess before listing a luxury property, long before promoting yourself as a luxury marketer. It should become the essence of your personal marketing message. Power marketing is based on human nature—and is largely unchanging and not trenddependent. Once you grasp it, you will own the fastest way I know to find buyers and its strategies and successes will be yours for life. Power marketing is about understanding enough about what drives buyers to act that you as an agent actually have the power to influence their actions, and do. While the luxury market is my focus and laboratory, Unlocking the Gate’s power marketing can empower you to handle the listing and sale of any real estate in any market, at any time. It should dramatically increase your income from the market’s every strata. Best of all, power marketing can enable you to become the real estate agent to the millionaires in your market. You can gain entry to an elite arena of movers and shakers, celebrities and CEOs. You will have the most in demand sales information that they expect their agent to know. You gain entry to the market where six and seven figure commissions are earned and where the prestige that accompanies a luxury sale can lift one’s career to star-studded heights. By the end of this book even the novice can own the keys to unlock the gate and thrive in the exciting world beyond. Come and join me on the other side. David M. Michonski Greenwich, Connecticut
Chapter 1: Learning what to do (and why) from an auction It’s every real estate agent’s dream; a room full of wealthy, intelligent buyers freely, excitedly, even cheerfully straining to pay more. Where better than an upscale auction to find an example of the competition needed to pay up for an object? I am always mesmerized by the auctioneer, barking and shouting. “Do I have a starting bid of 2 million?” he bellows as dozens of buyers wave paddles in the air, enticed by an opening bid way under the likely valuation range of 6 million to 6.5 million dollars. Pulses start to race. Within seconds the bidding rises to $2.5 million, then $3M, $3.5M, $4M, $4.5M. The competition disables the bargain hunters. Those with the financial might to win take center stage in an exhilarating drama. With so many bidders now clamoring for the same prize, buyers become fearless; initial timidity is overcome with liberated courage to bid high. The comforting presence of multiple buyers provides validation for everyone’s desire. Their instinct for bargain hunting vanishes. “The current bid is 4.5 million dollars. Do I hear 5 million dollars?” The auctioneer’s eyes quickly survey the room as his assistants strain to leave no bidder unwatched. Suddenly, he shouts: “New bidder in the back of the room at 5 million dollars!” Breathless gasps rise from the audience as heads turn to see who has entered the fray. The new bidder's emergence validates each buyer’s belief in the wisdom of their pursuit. The desire to be the victor of the moment takes over and mixes with the desire to stand out amongst others and translates into elevated arms and waving paddles. What a sight! “Do I have 5.5 million?” “Yes!” he yells. “Thank you, Madam.” Hearts skip a beat, heads strain, gasps continue in the audience as the bidding goes up and up. With the presence of so many buyers, no one is worried about overpaying. “Do I have 6 million? Yes, to the right. Do I hear 6.5M? Yes, thank you, sir.” He says smiling kindly into the eyes of the latest bidder. “We have 6.5 million dollars. Do I hear 7 million? Winning is now everything and in this moment, as the great philosopher Thomas Hobbes noted, the thoughts “are to the desires as scouts and spies, to range abroad and find the way to…..