Prestige property deserves prestige marketing

Some of Australia’s most valuable property is bought and sold in Perth, yet the majority doesn’t receive the marketing strategy it deserves. If you had a luxury item to sell, wouldn’t you want to tell as many people about it as possible?

Traditionally, the Perth’s western suburbs located nearest the Swan River have been the city’s most exclusive and expensive. In 2006, Perth took the mantle from Sydney as having Australia’s highest median property value. Although this has now reverted back to Sydney, Perth’s “purple” band – or band of suburbs that have an average house price of more than $800,000 – has grown in number and geographically spread away from the river to include many northern suburbs such as Trigg, Marmion, Sorrento, Wembley Downs and Mt Lawley.
According to Realmark principal Mr John Percudani, selling premium property requires a premium approach from agents yet often this does not happen and these homes are left languishing on the market for months at a time. This has an adverse impact on final sale price.

“We are finding that sellers in prestige suburbs are often reverting to what is safe and comfortable,” says Mr Percudani. “This usually means they select a local agent who only markets to the local community. This surprises me as people who own premium property are likely to be commercially savvy people and would be expected to make informed decisions.”

“If you only market to your local area, you are narrowing the potential buyer pool. If you only take an advertisement in the local paper, no matter how big the ad is , then you will only attract local interest!”

What sellers need to be thinking about says Mr Percudani is a much broader, sophisticated and dynamic marketing approach, especially as the number of premium suburbs and buyers grows.

“If I was selling a luxury product, I would want to showcase it in the best possible light to as many people as possible,” says Mr Percudani. “Sellers need to move away from the ‘traditional’ approach of selecting an agent based on friendships and local prominence and instead start thinking outside the square.

“Look for an agent who talks to the widest possible audience and has the marketing tools and approach that uses the best photography, best copywriting and other customised marketing tools.”

Mr Percudani uses a recent example where Realmark recently sold a property in a high-end beachside suburb which had failed to sell with a previous prominent local agent who was the vendor’s golf “buddy”.

“We got the listing, marketed the property highlighting its many excellent features to a wide audience,” says Mr Percudani. “Within 28 days we had three offers on the property and it was sold for a premium price. The competition we generated was due to the wider area marketing we undertook and the premium marketing strategy that truly ‘spoke’ to the premium market.”

Rather than making a decision based on safety and comfort, sellers must embrace a non-traditional attitude believes Mr Percudani.

“This will ensure the freshest marketing approach, attracting the freshest buyers and achieving the freshest price.”

Talking about my generation

It’s hard to pick up a newspaper or turn on the TV without hearing something about generations X & Y and how different they are in their outlook and demands from their baby boomer predecessors. So what does the real estate industry need to do to adapt and relate to this group of buyers and sellers?

For the first time in two decades, baby boomers – those born between 1945 and 1965 – no longer represent the “majority” of real estate buyers and sellers. This mantle is now held by Generations X&Y who represent a whole new outlook on life.

Statistics recently published by www.realestate.com.au paint a very clear picture of today’s real estate buyer:

• 60% are female
• 75% are aged 25-49
• 70% work full time and have a household income of more than $100,000

So what does data tell us? Principal of Realmark Real Estate John Percudani strongly believes that agents need to recognise this shift in buyer/seller population to a younger, more technology savvy and sophisticated market.

“This clearly shows us that women are the primary decision maker when it comes to selling and buying property,” says Mr Percudani. ‘’Addressing their needs and requirements is paramount to agents wanting to grow their business going forward.”

Mr Percudani believes women demand an honest, up-front type of real estate service and place emphasis on honesty and reputation.

“Women like a dedicated contact person within the agency with whom they can develop a relationship of trust,” says Mr Percudani. “They are also natural information gatherers and want good statistical data and lots of relevant detail so they can make informed decisions.
“Customer loyalty matters to them as does a no-nonsense, no-jargon approach.”

This is a shift away from the past 25 years of baby boomer relationships, which were based on repetitive habits and patterns and a sense of strong brand loyalty.

“Baby boomers are really yesterday’s buyers and sellers,” says Mr Percudani. “They also represent a large proportion of today’s real estate agents who are used to dealing with fellow baby boomers. This means that some agencies will need to actively educate their people to understand this new strongly emerging buyer and seller.

“Gen X&Y sellers in particular will be looking for a like-minded agent to represent them,” says Mr Percudani. “They understand that today’s buyers are unlikely to be local to the area, therefore a wide-spread, sophisticated marketing campaign using modern tools and mediums is going to be imperative. They will want an agent who can demonstrate that approach and understands that it is important to communicate with a wide audience.”

Change is the only certainty

Agents take note! Gone are the days when quoting a good selling price for a property was enough to ensure a property listing. Today’s sellers demand much more from their agent starting with a proven ability to communicate campaign updates and statistics honestly and openly.

It’s not surprising that recent statistics show a fundamental shift in what is important to real estate clients when selling their homes. The entire market place has changed and the old “born local, stay local” mentality has all but disappeared. We have a much more itinerant population who are open to moving not only suburb, but state and country to find the lifestyle they are seeking.

The shift towards a more modern style of client representation is imperative and agents need to adapt in order to meet their clients’ expectations and build sustainable businesses. We examine the top 5 “then” and “now” agent criteria.

Traditional top 5:

1.Recommendation by family member or friend – although there is nothing wrong with taking a recommendation, making a decision on that basis alone is no longer enough.

2.Expected sale price quoted by the agent – in other words, the agent who quoted the highest expected sale price was often the most successful. Yet often as the campaign progressed, the expected sale price was adjusted down and the seller was left wondering why… Today’s sellers are more likely do their own research and know exactly what is a fair price for their property. They want the truth, not an inflated number that discourages realistic buyers.

3.Online marketing – everyone offers marketing on the internet today and that ability alone is no longer a differentiator. Sellers are looking for more wholistic marketing approach.

4.Have previously used the agent to buy or sell a property – using an agent you have previously had a good experience with is still a good basis for making a selection, but only if they have adapted to meet today’s requirements.

5.Experience and local knowledge – taking the “if they live and work locally, they must really know my property” approach. What is clearly evident today is that buyers often come from outside the suburb they are buying in to.

Today’s top 5:

1.Demonstrated professionalism and ability – sellers are now looking for agents who can back their “talk” with the “walk”. Facts, figures and a way of demonstrating the ability to market a property and close a deal are vital.

2.Deep neighbourhood expertise – it is important to sellers to feel that their agent really understands the “lifestyle package” that their property represents. If an agent can demonstrate that understanding to a seller, they will feel confident that they can demonstrate it to potential buyers.

3.Marketing acumen – sellers are much more savvy about the importance of marketing. It is no longer just about placing a classified advertisement in the newspaper and some photos on the internet. It’s about a campaign. Sellers are looking for agents who deliver a fully integrated campaign that uses the best photography, copywriting and other modern marketing tools across a wide range of mediums.

4. Value for money – what does an agent’s commission and fee truly represent? This is what today’s sellers are asking. If the value is there, clients will pay a fair fee for the right result.

5. Communication and responsiveness – providing accurate, honest reports with real data on a pre-defined, structured basis is what sellers demand. Being able to demonstrate a communication methodology and responsive manner is important – especially for women who are now represent the majority of property buyers and sellers.

Today’s smart seller will think outside the traditional and some what comfortable square of just calling in the local agent and focus on truly selecting an agent and an agency that can deliver today’s top 5 and get a top sale result for them!