Deep-Pocket Clients Expect a Superior Level of Service
It takes more than an Armani suit and a new Mercedes-Benz to be an estate broker wheeling and dealing million-dollar mansions. Appearances are important, but brokers say the real secret to success is going the extra mile for clients.
People with the money to buy a luxury home are often busy professionals who demand a high level of service, brokers say. And because a 5% or 6% commission on a multimillion-dollar sale is a handsome chunk of change, sellers expect to get their money’s worth from a broker.
“It takes a high level of service,” said Jim Pascucci, an Encino-based broker. “It’s almost like being a concierge.”
Pascucci and other brokers say extra services may include paying for a painter or landscaper to spruce up the mansion, arranging for a locksmith or finding a kennel to house the dogs when the home is being shown.
Other extra touches might include hand-delivering documents or hiring a limousine to view properties--offering champagne and hors d’oeuvres during the ride, of course.
“People don’t realize it takes more effort to sell million-dollar-plus properties,” said Joyce Diab, who works with her husband, Joe, at Prudential John Aaroe & Associates in Woodland Hills and specializes in the northwest Valley, including Chatsworth.
“Clients at this level are very intelligent, educated and sophisticated,” Diab said.
And picky, brokers said. Still, there is usually some wiggle room.
Maurice Kozak of Fred Sands Estates once had a client who said he wanted an estate with a tennis court. But the house Kozak showed him had only a small paddle tennis court.
“Have you ever tried paddle tennis?” Kozak asked. “It’s fun.”
The client hadn’t, so Kozak took him onto the court. They played, it was fun, the client bought the house.
But it isn’t always so easy.
“There is a tremendous amount of money, work, trust and responsibility involved with listing a multimillion-dollar property,” Kozak said. “When you’re dealing with millions of dollars, people really have to trust you. There’s no room for mistakes. It can be very stressful.
“I work seven days a week,” Kozak added. “You must return phone calls promptly. You must always be available. Everything has to be first-class.”
That goes for marketing, too. Spending their own money, estate brokers hire professional photographers, buy photo ads in newspapers and upscale magazines, and even print and mail full-color brochures.
Realtors can easily spend $10,000 to $15,000 in promotions, said broker Alfie Shanfeld, who works with his wife, Myrna, in the Jon Douglas Coldwell Banker preview property division in Encino.
The Shanfelds recently spent $5,200 on a brochure for a $3.75-million estate.
“Sellers want to know they are getting the [marketing] quality and prestige to fit their house,” said Shanfeld, who might send as many as 10,000 brochures to real estate agents every four or five weeks to alert them to specific listings and “reinforce that they should call us when it comes to estate property.”
“We might spend $1,200 to $2,400 a month on [newspaper] ads with photos,” Alfie Shanfeld said. “Buyers and sellers see our photos and know we are estate brokers. You can’t hedge on [advertising] money.”
The Diabs use a monthly newsletter to keep in touch with about 750 potential clients. They also advertise in daily newspapers and specialty markets, such as the Wall Street Journal, Daily Variety, even Prudential’s own Dream House magazine, which goes to Fortune 500 executives.
Working in the million-dollar market also requires good contacts, and maybe a lucky break or two.
“Breaking into estate sales is extremely difficult because people [who buy million-dollar-plus property] go mostly on recommendations of friends or business acquaintances,” Pascucci said.
It’s kind of like breaking into Hollywood, he said.
Pascucci and his wife, Christel, got their big break 20 years ago while “door-knocking” in the Lake Encino housing tract. They met developer Gilbert Platt, who had just built two $2-million homes.
“He liked us, gave us a shot, and we sold both houses,” Pascucci said. “It snowballed. The first one is always the hardest.”
The duo works through Re / Max, concentrating on the west Valley, including Calabasas, Woodland Hills and Westlake Village.
Kozak also got his first million-dollar listing “by old-fashioned door-knocking,” where he met a corporate vice president who liked Kozak’s style and listed with him. “And then he sold me his huge, ’78 silver Mercedes,” Kozak recalled with a laugh.
That was 18 years ago, and he hasn’t looked back. Today, Kozak sells mostly south of Ventura Boulevard from Studio City to Westlake.
The Shanfelds moved into the million-dollar market through contacts they made as investors in L.A. Weekly. One of their first clients was TV star Bob Saget, who bought a house in Sherman Oaks.
Soon, the Shanfelds were being brought on as estate experts by appraisers, probate attorneys and others. That’s when they felt they had made it.
Local knowledge is another important factor. Because “every area has something special,” a real estate agent must know locations exceedingly well, said Elizabeth Summers, who is with Fred Sands Estates and specializes in Toluca Lake, where homes go from $400,000 to $3 million.
For example, a 5,000-square-foot house on the water and the same house on a half-acre of land are evaluated differently, and a good broker needs to know how to appraise each.
Personal appearance also counts. Although a suit and tie are not always necessary, it is important to maintain a well-groomed, professional image.
“Even if you are dressed casually, you can’t be slovenly,” said Shanfeld, who favors slacks and a well-tailored sports coat and travels in a BMW or Lexus. Clients buying pricey homes expect even their real estate agent to show signs of success, he noted.
Women also favor designer clothing, often opting for classy pantsuits over dresses because getting in and out of cars and traipsing through houses all day in a skirt and high heels is tough, said Summers. She likes Armani and Donna Karan, and recently traded in her BMW for a roomier Land Cruiser.
Diab finds a sharp-looking pantsuit is both stylish and practical because she can wear a low-heeled shoe--a real comfort when walking a 10,000-square-foot property--and not worry about bending down or gusts of wind.
Jewelry may be elegant and expensive, but always tasteful--perhaps a gold watch and a ring for men, simple earrings and a necklace for women, who are also careful with makeup.
Cars should be new and reliable, added Kozak, who tools around in a Volvo.
Estate brokers must also be patient, since it could take more than a year for an estate to sell, and “even-tempered,” as one broker put it. Estate clients can be anyone from the head of a multimillion-dollar international corporation to the latest movie star. They may be some of the toughest negotiators in the world.
On the other hand, noted Pascucci, these clients are also well-qualified buyers with excellent credit, so “it’s not a question of whether they can afford the house, just whether they like it. They are very sophisticated and know what they want. They have owned homes before and been through the buying / selling process.”
And like any other home buyer or seller, these clients can get emotional.
“When you’re dealing with real estate, you’re dealing with the largest financial investment most people ever make,” said Summers. “Selling a house is a lot different from selling stocks and bonds. It is a very emotional thing.”
