As the demand for ultra-luxury properties persists, learn how agents can rise to the challenge and secure the most coveted listings in today’s competitive market.
1. The luxury market has really been heating up in the last year — what advice do you have for agents who want to win the hottest new listings?
Despite changing economic tides, we continue to see property appreciation, both domestically and internationally. At Corcoran, our affiliate in Puerto Rico recently listed the most expensive residential property in the country at $49 million dollars, a few months ago, Corcoran Austin Hill Realty reset the record for Savannah’s most expensive home sale at $8.4 million, prior to that Corcoran Premier Realty listed Major League Baseball Star Johnny Damon’s $30 million dollar Orlando-area mansion, and Corcoran Perry & Co. had two of the top sales in the Denver metro area for 2023 at $9.3 and $7.3 million dollars. These properties and transactions are evidence that despite changing economic tides, the demand for ultra-luxury properties remains steadfast.
For agents looking to win listings of this caliber, you need to know the market, of course, but high-end consumers also expect you to have broad expertise about things that matter to them. I’m not saying that agents need to live in the same tax bracket as their clients to secure a high-end listing, but they do need to understand what’s going on in their world, from the stock market to crypto, and understanding the movement of wealth. Agents need to be on top of these things more than ever to demonstrate their value. At higher price points, everything is amplified, even the level of service provided to the client prior to even getting a signed listing. In many cases, it’s also important for an agent to highlight their discretion. High-net-worth clients need to know that you prioritize their privacy and their security.
2. COVID and the rise of remote work seemed to spur even more dual residents who split their time between NY and Florida. Do you still see many luxury clients splitting their time between these locales? Have any other second or third-home markets surfaced to replace either of those destinations?
Miami and Palm Beach remain the top destination for luxury clients splitting their time between New York City, but it’s no longer just South Florida that’s benefitting from this migration. Orlando, Sarasota and Tampa are also among the most sought-after areas for homebuyers relocating from points across the country. In 30A, we are seeing numerous $15M+ homes being snapped up by those from northern locales, enamored by the area’s white sand beaches and gorgeous communities. We’re also seeing an attraction to funkier markets around the country, such as places like Boulder, Santa Fe, and Athens, GA. There’s a real high-end of the business in these areas now that didn’t used to exist. Through remote work, these niche enclaves just outside major metros have found significant demand, allowing people to work effectively from idyllic settings, while still being close enough to a major city and an international airport.
3. What do you think will be the biggest challenge for agents navigating the luxury market this summer?
I think a lack of inventory and simply not having enough sellers continues to be a challenge for this market. Certainly, it is compounded by a lot of noise and some uncertainty, but for the sophisticated, experienced agents that work in the high end, I am less concerned. These agents know how to charge what they are worth and demonstrate value. A buyer’s broker is an important part of any real estate transaction, but especially so at the very high-end of the market.
4. What makes and differentiates a luxury real estate brand?
Top-tier luxury real estate brands draw inspiration from sources beyond our industry’s confines because, at the high-end, real estate isn’t just a decision about shelter. Like with any other luxury category – from a $5,000 handbag to a $150,000 sports car – it becomes less of a functional purchase and more an identifier of your persona. Your choice of a home reflects you, your lifestyle, and your preferences.
For over 50 years, Corcoran has celebrated our “Live Who You Are” ethos, understanding and respecting the emotional tie one has to their personal idea of home. Like any other great brand, no matter the industry, we differentiate our voice by weaving this foundational sentiment into every facet of our external and internal channels. As a result, our agents, our customers, our employees, and our industry peers have an emotional response to our brand, and that is an invaluable differentiator.
5. What future trends do you foresee in the luxury real estate industry?
Prominent high-end markets will sustain steady demand throughout 2024 as luxury tends to lead us out of a challenging economic time – there’s resilience on the high end. Alongside these markets – Manhattan, Palm Beach, Southern California – where $50 million plus, and even $100 million dollar transactions are happening with relative frequency, we are also seeing the allure of singular, unique properties gaining traction amongst the ultra-high-net-worth consumer. The added exclusivity of being shared primarily via word of mouth, truly one-of-a-kind features, extremely private or physically irreplaceable are the newest trends in ultra-price brackets.