A look through the eyes of the luxury buyer reveals an emotional core.

By: Karen Crystal

Whether it’s a polite conversation, or a heated discussion, luxury real estate brokers are committed to the value of staging, and sometimes our view of this important marketing strategy may clash with that of our client.

The $ million question: is staging worth the investment?

By staging your home, you are visually inviting buyers to become emotionally attached, thereby enabling them to imagine the lifestyle they’ll soon be enjoying.

Visually inviting

If a picture is worth a thousand words, then a video is worth a million, right? So, why are visual images worth so much more than the spoken word? I believe it is because visual images are actually emotional triggers. In fact, studies have shown that at least 65% of us are visual learners, much of which comes from “our minds eye”. Our “Visual memory”.
For example, when luxury buyers describe what they desire in their dream homes and the lifestyle they want to achieve, they tend to use phrases like this.

Here’s how I’d like it to look….

This is my vision…

Let me show you how I am picturing it…..

I can see my family relaxing together…

Here is another important point to remember, not everyone possesses a vivid imagination.

Emotional attachment

Whether you want to admit it or not, we are all emotional beings. Many of our thoughts, and most of our important decisions are charged with emotion.

My observation as a luxury agent, having spent thousands of hours with luxury home buyers, is that they act very differently when buying stocks and bonds, or even buying a company, then they do a home. Luxury buyers may not discuss how they feel regarding their business decisions, but they definitely talk about how they feel when it comes to their home buying decisions.

Those of you who are scientific thinkers, may not believe this is true.

To demonstrate my point, visit the staged model of a brand new luxury home development. I don’t know about you, but the minute I walk through the door, my visual senses awaken. I immediately begin to feel and imagine the lifestyle of the staged model home. Life seems a little better, and I imagine moving in with only my toothbrush. It can be a vivid and emotional experience.

What about you? I’ve watched my own buyers “fall in love” with a home, feeling it in their emotional core. They imagine their children’s birthday party in the backyard, and they picture their family eating at the beautiful dining room table already set for holiday dinner.

Lifestyle

The luxury home buyer is looking for a home where everyday living and the luxury lifestyle are inseparable. The home overlooking the 6th hole of the golf course, with the outdoor living room equipped with a flat screen TV over the fireplace, and a bar for entertaining your family and friends. This is the life….the lifestyle we are selling… and the lifestyle they are buying.

So, when my sellers say (and this is an actual quote),

” If they can’t imagine their stuff in my house just because it is empty, then they are too stupid to afford this house anyway”…

I remind them that we are not selling their 13,000 sq ft house with 12 inch crown moldings, we are selling a home with a lifestyle. We need to market visually to buyer’s emotional needs, as well as their rational minds.

I recommend you ask your seller who is resisting staging this question.” Would you prefer getting a massage at the physical therapists office or the Four Seasons Resort Spa“? The answer is obvious. Then I ask them why they like the spa more than the therapist’s office? They usually say they like the atmosphere in the spa better because it feels more relaxing. ” Is it worth paying more for the massage in the beautiful spa then the cold therapist’s office”? I think most of us would agree the answer is an emphatic, yes.

I believe the luxury home buyer will pay a premium for a staged home that creates a lifestyle image that resonates in their emotional core…and they may just buy all the furniture with it!

Not Sherwood, but it’s close. Thought we’d talk about the virtues of Calabasas today. We tried to assemble the other 3 parts but we decided to introduce you to something more “historic.”

A city that actually is part of “an historic time” and founded by a Father (which is coming up soon!): Calabasas, California.

Calabasas, California, part of the El Camino Real, the original mission highway founded by Father Junipero Serra in the late 1700’s, is a delightful contrast of breath taking mountains and canyons, old and new, traditional and progressive. Home to some of Southern California’s finest luxury real estate, Calabasas maintains a charming small town quality. Recognized as one of the Top Ten Places to live in the US, Calabasas’ award winning schools and safe, upscale neighborhoods make it a perfect place for individuals and families, and a perfect bedroom community for local business owners and employees.

Father Junipero Serra

Calabasas (91302) has a median elevation of 796 feet, and a population of 22,185, covering an area of 12.9 square miles. Calabasas’ scenic landscape and highways are home to a variety of local plant species and wildlife. As a Tree City USA community, Calabasas has claimed oak trees as protected, which also maintains its rural, woodland atmosphere. Hiking trails, parks and picnic areas also add to the beauty and enjoyment for visitors and local residents. An ongoing effort to acquire more open space as part of Calabasas’ dedication to natural preservation is another positive environmental indicator.

Historic Old Town Calabasas makes a picturesque setting for local gatherings and festivals, a weekly Farmer’s Market, dining and shopping. The Leonis Adobe, at the center of Old Town Calabasas, is a living history museum, where people can experience the real Old West. Along with its convenient bike commuter lanes and public transportation options, Calabasas plans to expand the downtown experience with a new library, civic center, fountains and plazas.

Close to the Ventura Freeway Technology Corridor (US 101), Calabasas is the perfect place to do business. Supported by business friendly local government, and strong service, housing and retail markets, Calabasas is at the forefront of economic recovery. Calabasas’ relationship with its sister city, Anqing, China, and its strong connection with the entertainment industry encourage growth and stability to both local and international ventures.

Forbes estimates he is the 183rd richest person in the world, with a net worth of 3.3 billion US Dollars, and he lives right here in Thousand Oaks, California.  His name is David H. Murdock, and he is a property developer (among many other things).

I have been watching Mr. Murdock carefully with regards to his new phase of real estate development in Sherwood Country Club, and waiting patiently to see what this highly successful man will do.  And  perhaps even more importantly…when he will do it.  You might say that this Billionaire is my own personal “economic indicator” for this geographical area.

Why?  Because David Murdock only builds property that he believes will sell, and he does so, only when he is confident that the marketplace has the ability and the desire to buy.

Well……our Billionaire is building, and with the interest rates still at an historic low, it is definitely time to buy!
There are currently 3 homes under construction with completion dates at the end of June 2010, with 3 more already breaking ground.  The pricing is very competitive: all under $2.5 million, and the sq. footage is a bit smaller than a typical Sherwood home : approx. 4,500 sq ft. on average.

Here are some photos I took the other day, along with a rendering of a very rare Single Level new home called “Amalfi”.

sherwood luxury construction

Featured Post on a Luxury Homes Blog – Staging a Luxury Property

A look through the eyes of the luxury buyer reveals an emotional core.

By Karen Crystal

Whether it’s a polite conversation, or a heated discussion, luxury real estate brokers are committed to the value of staging, and sometimes our view of this important marketing strategy may clash with that of our client.

The million dollar question: is staging worth the investment?

By staging your home, you are visually inviting buyers to become emotionally attached, thereby enabling them to imagine the lifestyle they’ll soon be enjoying.

Visually inviting

If a picture is worth a thousand words, then a video is worth a million, right? So, why are visual images worth so much more than the spoken word? Because visual images are actually emotional triggers. In fact, studies have shown that at least 65% of us are visual learners, much of which comes from “our mind’s eye.” Our “Visual memory.”

For example, when luxury buyers describe what they desire in their dream homes and the lifestyle they want to achieve, they tend to use phrases like this:

Here’s how I’d like it to look… This is my vision… Let me show you how I am picturing it… I can see my family relaxing together…

dark creek before

dark creek after

Here is another important point to remember: not everyone possesses a vivid imagination.

Emotional attachment

Whether you want to admit it or not, we are all emotional beings. Many of our thoughts, and most of our important decisions are charged with emotion.

I observe as a luxury agent. This is part of my occupation. I spend thousands of hours with luxury home buyers. Their actions and buying impulses are far different when buying stocks and bonds—or even a company—than when purchasing a home.

Luxury buyers may not discuss how they feel regarding their business decisions, but they definitely talk about how they feel when it comes to their home buying decisions.

Those of you who are scientific thinkers, may not believe this is true… but it is.

To demonstrate my point, visit the staged model of a brand new luxury home development. I don’t know about you, but the minute I walk through the door, my visual senses awaken. Immediately, I begin to feel and imagine the lifestyle of the staged model home. Life seems a little better, and I imagine moving in—with only my toothbrush. It can be a vivid and emotional experience.

What about you? I’ve watched my own buyers “fall in love” with a home, feeling it in their emotional core. They imagine their children’s birthday party in the backyard, and they picture their family eating at the beautiful dining room table already set for holiday dinner.

Lifestyle

The luxury home buyer is looking for a home where everyday living and the luxury lifestyle are inseparable. The home overlooking the 6th hole of the golf course, with the outdoor living room equipped with a flat screen TV over the fireplace, and a bar for entertaining your family and friends. This is the life….the lifestyle we are selling… and the lifestyle they are buying.

So, when my sellers say (and this is an actual quote),

“If they can’t imagine their stuff in my house just because it is empty, then they are too stupid to afford this house anyway…”

I remind them that we are not selling their 13,000 sq ft house with 12 inch crown moldings, we are selling a home with a lifestyle. We need to market visually to buyer’s emotional needs, as well as their rational minds.

I recommend you ask your seller who is resisting staging a few questions.

1“Would you prefer getting a massage at the physical therapists office or the Four Seasons Resort Spa?” The answer is obvious. Then ask them..

2“Why they like the spa more than the therapist’s office?” They usually say they like the atmosphere in the spa better because it feels more relaxing.

3“Is it worth paying more for the massage in the beautiful spa then the cold therapist’s office?” I think most of us would agree the answer is an emphatic—YES!

The luxury home buyer will pay a premium for a staged home that creates a lifestyle image that resonates in their emotional core.

Who knows? They may just buy all the furniture with it!

Luxury Golf Cart

Luxury Cars: If you like playing golf, then you will definitely be interested in this car, a so-called reinvented golf cart in the form of a luxury car. Garia is built using the highest standards of the automotive industry, using a double wishbone front suspension similar to those found in sports cars and inspired by Formula 1 vehicles.

Also, the drive train used on this vehicle is produced by a company that builds Ducati gearboxes while the aluminium profiles in the frame are made by the same company that supplies aluminum profiles to Aston Martin, Jaguar and Volvo. The car comes with hydraulic brakes on all four wheels with discs, but the most interesting thing is that it will be built at the Valmet Automotive factory in Finland, manufacturer of the Porsche Cayman and Porsche Boxster.

Question
My daughter is buying a house in Utah. There is a $1,500 flooring allowance that she was told had to be used prior to closing. I do not understand why. She wants to put in flooring on the whole bottom floor of the house, which is more than the $1,500. Should she get a letter signed that if the house does not go through, she will be reimbursed for the extra flooring? Is this a normal routine? I have told her she should not do anything until the house has closed escrow. Thanks for your help.
- Mrs. Dobson

Answer
It is always a risk for a buyer to do any improvements before the close of the transaction. If for any reason the transaction does not close, there is a serious risk for the buyer (absent some written agreement between the buyer and seller for the seller to repay the buyer for the buyer’s out of pocket expenses for the improvements).

One way to get the improvements completed prior to the close of the transaction is for the seller to pay the vendor(s) for the improvements. If the transaction does not close, the seller will absorb the out of pocket costs. If the transaction does close, the costs of the improvements can be paid for by the buyer to the seller in the course of the closing (with an escrow or no escrow depending on the location of the property and custom and practice in that location).
- Karen Crystal

Karen Crystal, REALTOR® at Ewing & Associates Sotheby’s International Realty, specializes in estate properties. She brings a unique blend of efficiency, honesty, integrity and business- savvy to her clients.