My wife and business partner, Jennifer Caskey, and I have worked hard over the past 22 years to earn an esteemed reputation for successfully servicing the high end coastal market in the sought after beach communities that surround LAX. Cities such as Manhattan Beach, Hermosa Beach and Redondo Beach are targeted by many high net worth individuals not only for the proximity to the Pacific Ocean, but also for the top performing public school systems that are found throughout the area known as the South Bay.
Manhattan Beach's Hill Section offers million dollar ocean views
Traditionally, when a home is sold, the real estate agent hired for the job goes through a series of proven tasks that aid in sourcing the buyer and delivering a job well done. Typically this includes a sign in the yard, open houses, digital photography, nice flyers, a well-placed print ad and a good presence on the MLS. What sets the high end apart, almost as if it is its own market in and of itself, is the key differences a seasoned “estate home” agent makes in his or her marketing strategy.
When it comes to luxury real estate in Manhattan Beach, as a listing agent, I believe it goes beyond the beautiful brochure and single property website to sell an estate property. You need highly developed relationships both in the public community and the real estate community to properly expose and make your case for a multi-million dollar price point; especially when comps for the high end are so dependent on a deep understanding of the slight nuances that determine the difference between millions of dollars in the luxury market. It's also important to establish a network that goes both ways: one where you are known as the estate agent in your market so that other agents call you when they are working with buyers seeking unique properties.
Establishing a strong network amongst key agents is essential to selling the high end
From the start, the owners of niche homes tend to be high profile individuals who want to sell their property, but do not want blanket exposure which directly affects their privacy. The challenge: reach a wide berth of qualified buyers and investors with the means to complete a multi-million dollar transaction while protecting the seller from over-exposure. The key to selling the high end is defining your market.
What makes luxury properties special is that they are NOT spec homes; they are truly custom in every way. They were built to service the desires and specific needs of the owner, and these unique features often come at a premium. It’s what sets these homes apart from the status quo. These properties are not for everyone. You can’t market a home with a recording studio in it to an art collector.
Customizing a home can mean anything from adding a swanky poker room, to a high-tech video gaming room, to an indoor basketball court, to even a 2 lane bowling alley. You have to isolate your market based on the house itself. Having a widely established network of both high end agents as well as potential buyers is key to placing these homes in front of exactly the right people. If you have a home with a 10 car garage, you’re going to need to know who the custom car collectors in the market are and how to get to them. Placing a beautiful ad just doesn’t cut it.
photo source: fusionbowling.com
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Equally important is an agent’s essential knowledge of the architect, the builder and the designer as well as any history of the area or the property that makes it gain and/or retain its value. In a market where a $5 or $8 million dollar property competes with a $10 million dollar property, you must not only understand, but be able to back the claim for where that added $2 to $3 million comes from in value. We’re talking a matter of a couple of million dollars, not thousand dollars, like you see in the traditional market. An agent must be educated and well-versed with an arsenal of facts to not only price a luxury home correctly, but sell it and have it successfully appraise at value. There is no room for error when working with the high end.
Many foreign investors and home buyers are specifically drawn to our beach communities for the high standard of education offered paired with what are comparatively lower prices than other global high end markets. From public schools ranking 10 of 10 in the State of California, to esteemed private institutions, such as Chadwick School in Palos Verdes, the South Bay offers some of the best options in education and many foreign buyers place high value on the quality of education. Additionally, many overseas buyers are drawn to the opulence found in a higher end home and the more unique, the better. The symbol of success often lies in how grand a home is and the “wow” factor it can offer. Personal pride in obtaining a home with unique features is often a motivating draw for many foreign buyers. This class of buyers often arrive at the purchasing table offering all cash on multi-million dollar homes in the area, and they help drive the demand for these properties. It is vital that a listing agent knows how to attract and address this market pool.
Really, what a skilled estate home agent truly understands is how to market the experience of the home. Buyers should be drawn to the story of a home and the showing process should be an elevated event that leaves them wanting to live that same experience every day. You need to also understand that the seller believes their home is the very best property on the market and they expect everyone to see that as well. You have to manage both the expectation of the seller as well as the experience of the buyer.
What makes high end market in the South Bay so special is that these impressive properties are integrated into the community, and not excluded from it. The South Bay is not made up of walled and gated micro neighborhoods hidden away from the community. Someone can own a $13 million dollar home and still participate with their kids in a down-home local block party. Girl Scouts still knock on your door asking if you want to buy cookies. The neighborhoods are truly that; a community of real people interacting with one another, creating and supporting a quality of life some may still call The American Dream. For those seeking to have it ALL, there is no arguing that this is where it’s at.
Luxury Home Marketing Specialist, Dave Caskey of Caskey & Caskey, Shorewood Realtors, Hermosa Beach, CA has just closed escrow on his latest high end listing at 620 8th St in the Manhattan Beach Hill Section for $6,950,000.
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