Property Talk

Customization and providing the analysis and insights that the sellers will value and pay for

Some of the world's most successful real estate agents are based in California. Specifically, Beverley Hills with its 90210 area code is a well-known centre of wealth and sky-high residential property prices.

In a recent interview for Inman, the agent responsible for the US$100m sale of the Playboy Mansion, Gary Gold (actual name) provided some insight into servicing the luxury residential real estate market and his thoughts on some of the disruptors in the industry.

Mr Gold is an executive vice president at Hilton & Hyland in Beverly Hills - a real estate brokerage specializing in the luxury market. His current listings include a home in LA called Chartwell with a headline asking price of US$195m.

Hard for us in South Africa to even contemplate what a price tag of R3bn for a single-family home buys you. Located in the suburb of Bel-Air, LA it is described as having 11 Bedrooms, 18 Bathrooms, a "car gallery" for 40 vehicles and a 12,000-bottle wine cellar.

It looks like a grand French Neoclassical Mansion with manicured gardens surrounding the main residence. As part of the listing, it mentions that viewings are only provided to prequalified buyers.

Can you imagine the prequalification interrogation that occurs before arranging a viewing This would be for the world's wealthiest ultra-high net worth individuals only.

Gary's advise on working with buyers is to educate them on the available options. He believes that the more they know, the more they will trust you. I think most of us in South Africa that specializes in our level of high-end luxury residential properties already understand this as we often do provide buyers with very detailed insights into the markets they are interested in.

I have found that in most cases the buyers are extremely astute and well informed. Information is readily available through multiple channels and the ease at which key information can be obtained forces the consulting agent to be explicitly honest and transparent in the data presented.

When it comes to working with sellers, Gary Gold recommends tailoring the experience to ensure it is relevant and on point for the specific property. It is all about customization and providing the analysis and insights that the sellers will value and pay for.

When asked about disruptive technologies in the general real estate industry, Mr Gold acknowledged that there is always the risk of a new technology dramatically changing the way people buy real estate but he explained that real estate transactions are still very complex and that a luxury transaction has many components to it.

He does not believe that technology will replace the real estate agent serving the luxury market. Given the US's current fears of a recession on the horizon, when queried on the impact of a recession on the luxury residential market he was of the opinion that although a recession does impact on the industry, with many players leaving the industry and marginal businesses unable to sustain losses and therefore typically shut down, the luxury market tends to find buyers at any point of the property market cycle.