Real Clues

[RealClues] #257: Luxury (part 3)

SPECIAL ANNOUNCEMENT: Are you a female manager, owner broker, or executive in the real estate brokerage business or for a company that provides services to real estate professionals? If so, there is a very special, by-invitation-only conference coming up from March 19-21, 2007, for women in leadership positions in the real estate industry. I have a limited number of invitations to this event. Please email me at Bernice@RealEstateCoach.com for more information.

This week at LuxuryClues: Watch for the latest updates from the Inman Conference in New York City. Learn about what's hot, what's not, from the leading experts in the industry.

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Table of Contents
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1. CoachingClues: How Would You Market the Most Expensive House in the United States?
2. Welcome Notes: A Simple Business Plan that Works
3. Reprise: Do You Have the Personality of a Top Performer? (Part 2 of 3)
4. Create a Better Life: Do You Have the Mindset of a Mega-Producer? Take this quiz to find out
5. Featured Products: January Sale
*Save $66.00 on the Scripts You Need Today to Have a Great Business Tomorrow
*Our Printer Goofed--Great Deal for You
6. Increase Your Production with Personal Coaching
7. Give Us Your Feedback on this Newsletter
8. How to Subscribe/Unsubscribe

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1. CoachingClues: How Would You Market the
Most Expensive House in the United States?
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Frank McKinney is building the most expensive spec house in the United States. Will he sell his house for more than the Trump estate?

Frank McKinney, sometimes called a modern day Robinhood due to his philanthropy, claims that he "sells to the rich to give to the poor." His foundation
(http://frank-mckinney.com/caringHouseProject.php) provides shelter to the "world's most desperately poor." He attributes much of his success to the idea of "paying it forward." The more you give to others, the more that comes back to you.

Like many other self-made men, he started with virtually nothing. He began his building career helping others make basic repairs to their homes. When he ventured out on his own, he took all the money that he and his wife had to buy a $50,000 fixer-upper. McKinney's success strategy was simple: locate an undervalued fixer-upper, upgrade, and sell it for much more than you paid for it. In fact, McKinney says that if he were to start over again, he would go back to purchasing those fixer uppers that launched his building career.

According to McKinney, there are two markets that are recession proof: first time buyers and the ultra wealthy. For the typical real estate investor, the first time buyer market is the area in which to concentrate. There are always buyers who are eager to purchase their first home. While there are millions of potential first time buyers, McKinney says that the market for his $20 million dollar plus homes is limited to about 50,000 people. If you're marketing the most expensive house in the United States for $135 million, the pool of potential buyers may be less than 20,000. Currently, many of the potential buyers for McKinney's property are foreign nationals. According to McKinney, the buyer of his property could just as easily be a Russian oil baron or a Saudi Sheik. Both groups are currently active in today's ultra high end market.

McKinney's strategy in building for the ultra high end market begins with locating an extraordinary piece of ocean front land. His current project is located within minutes from where Donald Trump is also building a $100 million-plus ocean front property. An important part of marketing to this exclusive group of buyers is to make sure that the property is both unusual and unique. For example, McKinney has created a shark aquarium as well as a "James Bond room" in previous properties he has built. He and his wife also search the world for unique pieces and materials to include in their homes. In one house they built, they used a wood from a barn that was over 100 years old. If they purchase unusual marble, they will buy the entire lot and then destroy any they do not use. This way the buyer knows that they will never see their marble in another property. Fixtures must also be one-of-a-kind. What's more important than the uniqueness of the materials, however, is the story behind them. For example, if the doors to a particular room came from a European castle, what was the history of the castle? Who were the inhabitants? Who built it? What historical events took place there? Many buyers are willing to pay a premium to have a piece of something famous.

The market McKinney caters to wants the best of everything. His houses are completely furnished, right down to the 18 karat gold toothbrushes. "My clients want to move in right now. They don't want to take the time to shop for furniture. They are accustomed to getting what they want when they want it."

In terms of the design, McKinney focuses on appealing to all five senses. For example, in one of his $20 million-plus homes, he included a state-of-the-art theater with the finest equipment available. To tap into the buyers' sense of touch, the walls were covered in red velvet and the theater was furnished with reclining couches. McKinney tapped into both smell and taste by including a popcorn machine. The entire environment, including the lights, air conditioning, and all theater equipment, was controlled from a single console.

When it comes to marketing his properties, nothing less than a full stage Hollywood production will do. McKinney wants to make sure that the press and the entire luxury real estate community turns out for his bash. He may arrive in a hot air balloon dressed as a pirate and stage a battle. Pyrotechnics and special effects are part of his marketing cache.

Does McKinney's approach work? He sold a $50 million dollar house in just 50 days and a $16.9 million house in 62 days. It will be interesting to see who sells their luxury property for the most money: the "pirate" or "the Donald."

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2. Welcome Notes:
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Welcome to our new subscribers this week. Each week RealClues provides you with great strategies to improve both your business and your life. If you find this issue of RealClues helpful, take a moment to hit the "forward" button and send it to another friend in the business.

Like most other trainers and speakers, I have written quite a few columns on the importance of business planning. Ninety-percent of the agents in our business lack a plan. Here's a simple business plan using the 3-2-1 approach that will keep your business strong throughout 2007:

Each day before you leave the office, answer the following three questions in writing:

1. What are the three most important activities for me to complete tomorrow?
Every day, look at which of your clients is "closest to the money" i.e., who is most likely to close a deal. Next, write down three activities that will move you closer to your next commission check. Complete these three activities first before tackling anything else for the day.

2. What will I do today to generate a minimum of two new leads for my business?
Make generating and converting leads your top priority every day. Failure to generate leads today means no new business tomorrow.

3. What is the one thing I will do to care for myself and my family?
Lack of self care makes you unattractive to the highest quality clients. More importantly, the whole point of working is to have a quality life. When you short-change your family time, you short change the most valuable part of your life.

Having a written business plan is one of the best strategies you can implement in 2007. If you need help, our coaching team can help you make a plan and keep you track to have a quality life and a more profitable business.

Have a great week!

Warmly, Bernice Ross, MCC, and Byron Van Arsdale, MCC
www.RealEstateCoach.com, www.LuxuryClues.com, www.RossdalePress.com, www.ConferenceCallTraining.com, and www.TeleconferenceLine.com

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3. Reprise: Do You Have the Personality of a Top Performer?
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What personality characteristics predict real estate success? According to the research from AlignMark.com (formerly Upward Motion), your personality traits have a strong influence on your potential for real estate success. If you want to know more about the behavioral profile of top producers, click on the link below:

http://www.realestatecoach.com/articles_archive/art20050314.html

In case you missed part 1 of this series, the link is below:

http://www.realestatecoach.com/articles_archive/art20050307.html

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4. Create a Better Life: Do You Have the Mindset of
a Mega-Producer? Take this Quiz to Find Out
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The 80-20 rule says 20% of the agents will conduct 80% of the business. NAR statistics indicate the statistics are closer to 10% of the agents are conducting 90% of the business. Mega-producers are different in numerous ways, the most important of which is their mindset. To see how your mindset compares to that of mega producers, click on the link below:

http://www.realestatecoach.com/articles_archive/art20041108.html

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5. Featured Products: January Sale!
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**Save $66.00 on the Scripts You Need Today to Have a Great Business Tomorrow
Our complete scripts library normally retails for $325.00. We are running a January sale for only $259.00 plus S & H, for the complete set. Here's what's included:

77 Market and Prospect for Real Estate Like Crazy scripts
61 List and Sell Real Estate Like Crazy scripts
82 Waging War on Real Estate's Discounters scripts

You can also purchase these separately. The Market and Prospect and List and Sell Scripts are $149.00 each. The Waging War Scripts on audio CD plus the script cards are $99.00.

Click on the link below to learn more about what's included:
http://www.realestatecoach.com/products/audio_scripts_library.html

To order at the reduced price, click on the following link:
http://www.profcs.com/app/netcart.asp?MerchantID=35347&ProductID=2729297

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Here's a sample of one of the open house scripts from List and Sell:

Converting Open House Leads
Script #32: Working with Open House Buyer Leads Who Are Not Interested in the Property

Strategy: Use "switches" to motivate the buyer to work with you.

A "switch" is a good property that is not open during your open house. Choose properties with different bed and bath counts from your property as well as different price points. As a rule of thumb, open house visitors look at properties priced about 30 to 40 percent higher than they can afford. Be prepared to tell them about other properties you could "switch" them to in their price range.

Prospect: Bernice, thanks for showing me this home, but it simply isn't right for us.

Agent: Mr. Buyer, I have put together a list of some of the best-priced properties in the marketplace. Some of them are foreclosures and probates. Others are excellent properties that are simply well-priced. Would you be interested in seeing a list of these properties?

Prospect: Yes, I would.

Agent: Here's the list. To the best of my knowledge, none of these properties is open today. However, if you're interested in seeing any of them, I would be happy to set up an appointment.

Prospect: Several of these look interesting. Any chance I could see some of them today?

Agent: Absolutely. I can meet you at my office on Fifth and Main at 5:15. Let me know the properties you want to see and I'll set up the appointments. It would also be smart to spend a little bit of time discussing exactly what type of property you would like to purchase so I don't waste your valuable time showing you properties that are not a good fit.

Prospect: I'll see you at 5:15.

Before you spend a lot of time showing someone property, it's smart to have them pre-qualified with a lender. Also, be sure to conduct a Buyer's Interview to determine their exact needs.
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**Our Printer Goofed--Great Deal for You!
We recently received a batch of Waging War on Real Estate's Discounters that was printed partially on white-white paper and partially on a light cream colored paper. We are offering these "seconds" at $10.00 each plus S & H with an order of seven or more. If you haven't ordered this powerful book, it shows you how to get listings and to persuade sellers to pay full commissions. These make great gifts for a 2007 kick-off, for awards in a 2007 listing competition, or for your new or experienced agent training. Learn why many real estate leaders have called this book, "The best real estate book ever written."

To order, click on this special link...
http://www.profcs.com/app/netcart.asp?MerchantID=35347&ProductID=3355716
(Once you update the shopping quantity to 7 or more, the price will change to $10 a book.)

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6. Increase Your Production with Personal Coaching
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Looking for a well-trained coach who knows the real estate business? Our coaching team can help you increase your production and make your dreams come true! Send an e-mail to Shane@RealEstateCoach.com and we'll help find the right coach for you.

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7. Give Us Your Feedback On This Newsletter
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We want your feedback-to share your thoughts and suggestions, please e-mail us at Shane@RealEstateCoach.com.

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8. How to Subscribe/Unsubscribe
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Visit our Web site, http://www.RealEstateCoach.com to subscribe/unsubscribe to RealClues.

Copyright (c) 1996-2006, RealEstateCoach.com and Teleclass4U.com, LLC. All rights reserved. Permission is granted to reproduce, copy or distribute RealClues as long as this copyright notice and full information about contacting the contributors to this newsletter is attached.

Contributors to this newsletter:
Bernice Ross, MCC, and Byron Van Arsdale, MCC, Owners, www.RealEstateCoach.com, www.LuxuryClues.com, www.ConferenceCallTraining.com; www.RossdalePress.com; and www.TeleconferenceLine.com
Shane Bowlin, REC General Manager

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