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Selling Exclusive or Unique Real Estate is a challenge in any market but none more so than in South America

luxury homes

Selling Exclusive or Unique Real Estate is a challenge in any market but none more so than in South America

Advice for the new broker looking to get into the Luxury  Property Market

Ok you’ve just taken your first million-dollar-plus listing. After celebrating your victory over the area’s top luxury agent, reality will no doubt begin to set in. If you don’t know the first thing about marketing high-end properties, you may wonder what you’ve gotten yourself into. You should be very worried if you do not have a plan with the marketing budget needed to implement it.

You may panic.
But if you’re a pro then you’ll do what all pros do – lots and lots of research.

Unique Challenges

Many established international luxury brokers recommend that the newbie get his or her feet wet by working under a top-producing company who deals with high-end properties. The unique challenges of pricing, marketing and dealing with the parties are many and varied – not something one should tackle without experience.

However if you’ve already taken the listing, you may want to consider cutting an international marketing specialist in on the deal so you can learn as you go before it becoming apparent to the owner you do no know what you are doing.

Let’s take a look at some of the unique challenges you’ll face with your first luxury property listing.

Pricing Unique Real Estate 

Luxury properties are not cookie cutter properties. They aren’t mass-produced by a single developer. They are typically architecture-designed and custom built in unique locations.

How will you price this type of property? The typical agent Comparative Market Analysis ( CMA ) is useless when determining the price of a luxury home mainly because there are few (or zero) comparables. Plus, the more custom amenities included in the property, the smaller the pool of comparables. ie polo facilities, golf courses, lakes,  native bush etc.

Then there are the intangibles, such as view, mountain or beach access, privacy and history. How do these intangibles factor into the pricing decision?

The most important thing you can do is to get to know the area intimately plus have a good understanding of the international market for these type of properties., according to international real estate specialist Geoffrey McRae of GTSA.

New luxury agents “need to do their research,” Geoffrey suggests. They need to know pricing and market conditions in competing international  and national markets.

Marketing real estate requires a strong Internet presence, according to Geoffrey. “Newspaper and print are fairly archaic,” he claims. “They’re glossy and impressive, but they don’t produce buyers to the extent they did in the past.”

Geoffrey also warns that the luxury agent needs a large network of contacts, such as other luxury agents, attorneys, past high end clients and high-end public relations people. “Get to know writers and reporters so you can create a buzz,” he recommended. Also of critical importance is knowing how digital marketing works. ie que words, relevant mailing lists, Linkedin, Facebook, Twitter and last but not least Blogs.  All this cost considerable amounts of investment. Without it you are like a man winking in the dark at a woman. The pretty girl can not see you even if she knows you are there somewhere.

Geoffrey listed one of the largest farms in South America of 1 million acres a few years back and credits the buzz he was able to create internationally due to his good relationships with the press and other international brokers. “We got the farm into 400 blogs and newspapers,” he said.

Marketing to the affluent also requires paying close attention to and highlighting branded features of the property in all of your marketing materials. This can be polo field designers, golf course designers, well known architects etc

If you aren’t familiar with the lifestyle of the affluent, marketing their properties will be challenging, according to Senada Adzem, Director of Luxury Sales for Douglas Elliman in Florida.

She advises that the new luxury agent find a mentor. “They need to offer to work for someone who is already working in that industry,” she explains. “They’ll learn everything from the inside out.” Adzem says that to be successful with luxury sales an agent needs to immerse himself in the environment and in the peer group.

Be nice to other brokers as well as your clients Geoffrey suggests. “If you create a bad reputation in the luxury market, it will be very difficult for you to survive.”

Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours. #adp02

The Gateway Team – When You are Serious About Property

www.gatewaytosouthamerica.com

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About Gateway to South America

Gateway to South America was established in 2006 as a single office in Buenos Aires. The company has since expanded into a vibrant regional network, servicing the Southern Cone clients in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay with professional real estate marketing services. If you enjoy reading our news site please share it on your social media below.

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