REality

Mark Bardo on Mastering Luxury Real Estate, Building Affluent Connections, and Evolving Seller Strategies

• Gary Scott

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Luxury real estate veteran Mark Bardo joins us with over 35 years of experience, providing a treasure trove of insights from his illustrious career in high-end markets like Lake Norman and Naples. Ever wondered how the dynamics of luxury real estate have shifted over the decades? Mark and I reminisce about our journey together since 1998, discussing the pivotal changes and lessons learned along the way. His passion for nurturing agents shines through as we tackle the ongoing evolution of the industry and the need for continuous improvement.

Language and relationships are the linchpins of success in luxury real estate, a theme we explore in depth during our conversation. We dive into the power of using specific terms like "relevant sales" to better connect with luxury property owners, whose homes are often seen as unique masterpieces. For those eyeing a breakthrough in the luxury sector, we emphasize the importance of building connections within affluent circles, advocating for community involvement and leadership roles as more effective strategies than traditional methods like newsletters.

Our discussion also covers the latest trends capturing the imagination of luxury home buyers. From expansive open-space dining areas to bold statement rooms, we identify what makes these properties stand out. We then shift to seller strategies, highlighting the significance of personalized consultations that align with the seller's goals and the preparation needed for a successful property launch. Mark's insights, coupled with our shared experiences, make this episode a compelling guide for anyone looking to excel in the luxury real estate market.

Gary:

Welcome to Reality Podcast Gary Scott and my good friend Mark Bardo.

Mark:

Mark how are you? I am great, gary. It's always great to see you. After what has it been now? Almost 25 years we've been working together.

Gary:

I think August 1st of 1998. I think on August 4th you and I had lunch at Harper's. My memory is not as good as it once was, but I thought about that because you know they've torn that Harper's down. I saw that when I was there last month. Yeah and so anyway. So, mark, just I want to know how the weather is in Fort Myers. That's really what I want to know. That is not the essence of our interview. But I do see the sun shining in Fort Myers. That's really what I want to know. That is not the essence of our interview, but I do see the sun shining in the background. The tan that you consistently carry suggests you live in South Florida. How are things in Florida?

Mark:

75 and sunny. I got every window and door in the house open and it's the perfect time of year it's 80 in the afternoons and it's 60 in the mornings and it's just the perfect time of the year to be here.

Gary:

Well, you know, our listeners know those consistent listeners know that we've got the advantage and benefit of seeing each other Kind of like a Zoom environment, albeit they only get a little snapshot of kind of a little promo. And so my first, and Mark looks good, he's got a white dress. You know, white collared shirt looks good. So my question was, does he have his Birdwell beach britches on below them? So anyway, that is not the purpose of our conversation today. Mark Bardo is a 35-year veteran in the real estate business. Mark, I'd say 1986.

Mark:

So that would be yeah, you and me both.

Gary:

You're in 39. So you got in in 86. I got in in 86. I think before we walk, we're going to walk down the luxury real estate path. We're going to take a little look back on 2024 and some of your observations Really interested in some things that you think or you've studied, regarding 2025.

Gary:

Everybody this time of year is all into prognostications and the pundits, and I think I shared with you as we prep for this, that our team just did our kind of annual December Tate Talk Live. Hear it from the experts, phyllis and Neil and Mark McGoldrick you will appreciate this.

Mark:

We had a first time participant, actually, I saw it, I saw it and Eric was on it, and there's a lot of what I agree with and I might say a couple of little things that might be a little different than what you guys.

Gary:

I think having Eric on there was fantastic, so it was so good that we're going to which we've done. A couple have been in the real estate business multiple markets, multiple companies, multiple price ranges, so what I'd love for the listeners to do and again we'll have some second time listeners that will have a lot of people who know you, a lot of people who love you, but just again, just give a sense of kind of your 1986 to 2000 and almost 25 real estate career.

Mark:

So you and I grew up very similar. I grew up in the real estate business just like you did. You were the son of the owner and I was the son of an agent. And in 1986, I got my first license in New York, got another Connecticut license because we had offices on both sides of the border, worked down in Orlando for Watson Realty, another leading RE firm, came to Alan Tate and that's where I really what I say grew up in the business Alan Tate, 1997, and just what a ride it has been.

Mark:

And I can't tell you how proud I am for the gentlemen and the women that I have worked with in my careers. But you, pat and Alan, were just that was a trilogy and I was so blessed to be a part of what I call the heydays of the market with you, pat Riley and Alan Tate, and I can't tell you how proud I am to have been part of that team at that time and even today, in a much different capacity and a much different role. But Alan Tate's my family. I grew up with it, they grew up with me, and just so proud to be a continued member of this great family.

Gary:

Yeah Well, you did study abroad a little after Allentate so that's what they say about those of us who, as much as we have always loved this company we did go and do a little study. You went to Florida, which is where you are today, and worked for a couple of firms there and you know, between Lake Norman, obviously, luxury real estate, the Naples market, luxury real estate, and so you know, one of the things that you know, I've really been incredibly impressed with. You know, even the years we weren't working together, because we, in a very intentional way, stayed connected, which I, which I value, is, you know, just this uh, I think, uh, when you were working at uh, with Mike Pappas, you were overseeing a new brand called illustrated properties, which was, in essence, essence, a luxury brand. And so, like your knowledge and your passion, like, I think, what is so impressive to me is there was one thing to know it. There's another thing to be passionate about, and we have the good fortune, twice a year, to see you do a roadshow, and you're passionate about the business, you're passionate about luxury and, most importantly, you're passionate about helping agents be better tomorrow than they are today, and the reality podcast was built three years ago on this premise Real people, real experiences, real opportunities.

Gary:

That's where it came up to reality. So I'm going to tell the listener today in advance that if you're taking a walk or you're driving your car, I'm going to suggest this is a re-listen to podcast. Sitting down at your dining room table or on your porch or in your office with a pen and a paper and take some notes porch or in your office with a pen and a paper and take some notes, and then you know kind of call the notes and take two or three or four things you know and put it in it into your 2025 business plan because, without even knowing exactly what Mark's going to share, having had him as a guest before and just talking to him about our business, there are nuggets on the way. So let's go. Luxury market 2024. Tell us what you think about what just happened.

Mark:

So it's a great question, gary, and, as you say, there's a lot of passion I have for this and I'm going to use another word that's called pragmatic. So, like you and what you just described is the purpose of this wonderful podcast is a measurable takeaway that you can use to grow your business. So to sit here and pontificate for the next couple of minutes with you is probably a waste of your time, my time and your listeners' time. If you can walk away with an idea, if you can walk away with a strategy, if you can walk away with an activity that will help you grow your business, that's my goal and you worded that very well in the introduction.

Mark:

2024 was a challenging year across the board at all price points. The luxury market did outperform the overall market, for example, among many, the overall real estate market across the country. I'm not talking about Carolina specific, but across the country 4.4% average appreciation rate across the country. I call that kind of the Goldilocks market. I remember you and Pat and Alan drilled into my head for many years. We can't sustain 10, 15% appreciation. It's dangerous for our business, it's dangerous for our society.

Mark:

But that 3% to 5%, even 6% appreciation every year is that Goldilocks market and we're not going to experience 2008 and 2009 again, we're not going to experience 2020 and 2021 again. But my gosh, if every year we could just have 3% to 5% appreciation. So 4.4% across the board, 8.8% appreciation in the luxury space across the country. Now, as you know, some markets very high, some markets a little lower. It's tough to use averages, but in a lot of the coaching that I do with our agents, I'll say now here's the nugget for your holiday meetings, for your social meetings, for your dinner parties, for your cocktail parties, to to say and position yourself as that luxury expert luxury real estate appreciated at nearly twice the rate of the average real estate home in America. So to say that the luxury market is struggling would be a falsehood. We're still suffering with low demand, although sorry, low supply, although the supply is slowly increasing, demand has remained very steady and because of that, appreciation has remained very strong.

Gary:

So talk a little bit, expand, mark on the inventory, because the overall market inventory is greater than it once was across the board. New listings up, listings up. Everybody gets this kind of feeling that the challenge of not enough homes for sale has gone away. It has just changed. Just speak to the luxury market and inventory.

Mark:

So inventory is up, but we are still in a seller's market across the country, throughout the Carolinas and really in the most part of our world. We're still in a seller's market, which is obviously why we're seeing an 8.8% rate of appreciation across the country. What I'm seeing is days on market increasing. What I'm seeing is in the COVID market, if you put it on, put that aspirational price, you could get multiple offers and probably get your aspirational price. What I'm finding now is you really got to be conditioned, you've really got to be staged Now. It will sell without the conditioning staging, dramatizing, decluttering, depersonalizing but it's not going to sell on day one and it's not going to sell for top dollar because the additional inventory gives the buyers additional choices. In that COVID market that you know heaven forbid we would return to, quite honestly, I think that there was so much demand and so few choices that if the house had a roof, it did breathe, it was going to sell, whereas in today's market it's going to have to be better conditioned. I coach a lot of agents who are working with sellers in that million dollar plus price point and the seller says something like yeah, but it's been on the market for three weeks and it's not sold yet. All of my friends a couple of years ago sold their house in three days and I've been on the market for three weeks. But you go back historically to the average days on market in the country for the normal median price house was 60, 90 days and in the luxury space that was easily four to six months. And sellers are pulling their hair out after four to six weeks. So what I coach agents is setting a better expectation up front in that initial meeting with the seller to say your friends may have sold in four to six days, please don't expect four to six weeks. Normal market is four to six months and then you are going to price accordingly. I heard you on the TikTok live with a forecast talking about the importance of pricing, with a forecast talking about the importance of pricing.

Mark:

I'm a big believer in ranges. I'm a big believer in, truthfully, in a 15% range. So on a $2 million house, 15% is 300,000. So if I go into my CMA comes in at 2 million, I'm going to recommend a million 850 to 2 million, 150. And that's a big range. But my comment to the seller is going to be price it at the lower end of my range. It's going to sell more quickly. Price it at the higher end of my range. It's going to take us more time to find the unique buyer. Price it right in the middle of my range. We're going to have an average days on market and that can obviously change market by market.

Gary:

Question for you Is your 15% strategy all price points or?

Mark:

specifically to luxury. That's a great question and I apply it to all price points. So when I do agent coaching, so $400,000, house 15%, $60,000. So my range is going to be 370 to 430. Mr and Mrs Seller, I don't pick the price you do. I would370 to $430 in that median price point.

Gary:

And the only thing I would do is certainly not to ever correct Mark Bardo. But I don't pick the price and you don't pick the price. The buyer picks the price.

Mark:

Yeah, and I should have said you're going to pick the list price.

Gary:

No, no, no, the buyer's got to pick the sale price, because I think you know I say it far less articulately than you just did which is, you know, the key is pricing it. So the buyer drives the price up. Buyers, Sure, don't, don't price. You used a great word, you know, and we talk all the time about the importance of words. You know, the higher I price it, there will.

Gary:

We we are now are looking for a more unique buyer, like I love the word unique, like unique means a lot of things to a lot of people. Like it's the pool, right, you got your 15%, your pool. You know you have a lot more in the bottom of the pool and then it goes up and it's, you know, I would say it's like an inverted martini glass, right, you're like my dad used to use a martini glass as an analogy and you know, when you're like this and I know our listeners can't see what I'm doing, but I'm showing like a martini glass at the bottom is your bottom range at your top and it forms a connection at the top. And you've got to be perfect where, as you price it at the lower side of 15, you're going to have a lot more people at the top of that martini glass. So I might be talking about martini glass Mark, because it is Friday afternoon and so you know I'm not going on record to say that maybe once we're done this, that Friday happy hour starts. But so I think there's another term that I've heard you use and maybe in your prep work for later.

Gary:

But I talked about unique. I love the 15 percent. I like the range Relevant comps. I like the range Relevant comps. Let's talk about a CMA or a comparable. I think it's relevant sales, so walk people through that?

Gary:

Yeah, so especially in the luxury space.

Mark:

The owner of a luxury property, probably rightfully so, feels that their property is very unique, very special and therefore when you use the word comparable, it could easily come out of their mouth Well, that is not comparable to my house. So you think of, in our Asheville mountain region, a property that is literally two doors down the road that you have to use as a quote unquote comp because it's the best that's out there but the view is nowhere near the subject property and the seller is going to become offended that you're using that as a quote unquote comparable property, whereas if you just use, as you said, words matter. The words that you use are important. If you use the word relevant sale, even on the active side, relevant listing the seller can't rebut you, even though it's not comparable. And it's not like what an appraiser would do, right, an appraiser is going to have to use those that are most comparable, even though they may not be truly comparable.

Mark:

You think of a property in Charlotte that's on Carmel Country Club's golf course and it's got a view of the 18th fairway. And you've got another home in Carmel Country Club's golf course and it's got a view of the 18th fairway and you've got another home in Carmel Country Club. That has nothing to do with that view and that presence, but you're going to have to use it in your analysis because it's the best that's out there. You think of a property on Lake Kiwi. You think of a property in downtown Raleigh. There are so many different ways you can apply the concept, but I am really training all agents. But especially in the luxury space, let's not use the word comparable, let's use the word relevant property.

Gary:

Awesome and, uh, I'm going to give you a range and the higher the range, you're going to be looking for a more unique buyer. I love that. So, uh, mark, let's talk a little bit about and we spoke about it this morning as we prepped for this is there are a lot of listeners that are saying to themselves my goal for 2025 is to increase my average sale price and get into the luxury space. That's a great goal. Right, that's a great. The question is how do I do that? And, as you and I know from our passion for business planning, here's my goal. But the important thing is what are my strategies and tactics and am I disciplined enough to execute the plan, to get to the goal? So I think I've heard this over my long career, like yours, I want to increase my average sale price Now.

Gary:

In the last four years, all you had to do was be in the real estate business, but we all know that that's going to go back to your point four to six. Four to six, three to five it will get back there. If, quite frankly, you said across the country, 4.4, double that in luxury, one might argue. If you look at that, appreciating home values in 2025, it's going to fall right in to that line in most markets. How do I get in the luxury?

Mark:

market. Well, as you know better than anyone, real estate is a relationship business. The majority of the typical real estate estate agents business is going to come from sphere of influence friends and family and, most importantly, referrals from those two categories. Who do I know and how can I earn referrals from those people? Luxury real estate is particularly important to be in the space and have the relationships with the affluent people who either have those luxury properties or know people who have those luxury properties and are your feeder source for referrals. So if you are an affluent person, it tends to become easy to get into the luxury space.

Mark:

If you're not necessarily an affluent person, then you've got to find ways to get involved to where you are. I call it rubbing elbows with the affluent person. Then you've got to find ways to get involved to where you are. I call it rubbing elbows with the affluent people and I do a lot of coaching with agents to say what community involvement can you get into? How do you get into a way that philanthropically you are giving back to the community but always pursue it with passion? So I say, if you don't like animals, don't get involved with the ASPCA. If you don't like new construction and getting your hands dirty. Don't get involved with Habitat for Humanity, but bottom line is, get involved in a way that fulfills your passion, but in a way that allows you to meet people that are in that space.

Mark:

Then what I highly coach is getting involved in a leadership role. You can't become the president of the local ASPCA overnight or the local board that raises funds for the local museum. You can't become the head of it overnight. Get on a committee, become the head of a committee and get well known in the committee for good work that you're doing. And work your way up in an organization, because especially the affluent, but really in all price points, people love doing business with leaders. If you can grow into a leadership position in an organization for which you have passion I remember my gosh it was almost 20 years ago now so one of my passions is boating and Mary Beth and I joined Peninsula Yacht Club up on Lake Norman and over a period of five or six, seven years I became the commodore of the yacht club, which is the leadership role in the yacht club, and I built relationships and those relationships resulted in referrals to agents for the offices that I would manage.

Mark:

But my point is it's the fact that people love doing business with leaders. So I don't think you can farm your way into the luxury space. I don't think that mailing postcards into an affluent neighborhood is going to grow your luxury business. I don't think that sending a newsletter, I don't think the only way you're going to get involved is to build relationships, and I think, rather than focus on a geographic farm, you focus on a social farm. You focus on a geographic farm, you focus on a social farm, you focus on a philanthropic farm, you focus on a community give back farm, where you're focusing on people, not neighborhoods, and that's the number one coaching tip that I give to people who want to break into the luxury space.

Gary:

So I would tell you, we're in the holiday season've heard, I've heard from some of our leaders over the last couple of days that I've eaten my way through the last 10 days Right Because of being at all the parties. Well, it's so interesting because I'm thinking back to the conversations I've had, mark, last week, at holiday parties, and I'm thinking about those agents that are really, really, really in the luxury space, that are really, really, really in the luxury space, and I'm thinking about the conversation you just had about not a geographic farm, but a philanthropic farm, a community farm, a social farm, and I'm looking at these agents and I'm going to put them in the witness protection program today. But if I shared with you offline, every one of them has done exactly that. It's perfect, and what's interesting is many of them were not from here. They moved here and they moved here.

Gary:

And again, I want to remind every listener again, so much of our luxury. This is a luxury focus, but every piece of great information you are providing is useful in your business, regardless about the agents that are doing the most of our luxury business. Absolutely are doing it because they are passionately engaged in the things you talked about. So we've always coached, mentored. Find what you love to do. Do it. Don't do it to get business. If you do it for the right reason, business will fall, totally agree.

Mark:

And, as you say, 80% of the content of my coaching applies to nearly every price point. You can't farm your way into a $400,000 neighborhood. Well, you can't. It just takes a lot of time and a lot of money. There are better ways to do it, and you look at the top agents in our company or in any organization.

Gary:

There are better ways to do it and you look at the top agents in our company or in any organization, they're the ones who have great relationships with a large number of people. I call it. You also have to have a magnetic personality, where people are just drawn to you. It may be because of who you are or what you've done, or your successes, or the fact that you're just fun to be around, but a magnetic personality with the right people will always result in a combination of their business and, most importantly, their referral business. Awesome, you're going to remind me as we're wrapping up 2024.

Gary:

One of the great recommendations that I got from a team that is near and dear to you, which would be Missy and Derek, and one of the great takeaways that I got from that was the concept, which is not new, which is you know who are your A referral sources, and what I was fascinated by. I think we believe fundamentally that that list has to be fairly large, whether it's 20, 25 or 30. Missy has nine or 12, but it's not, and missy and derrick's a lot, oh yeah, but here are my nine. And what's interesting and it's really important for this point, which is is beyond luxury, is that A plus team, that 9, 10, 12, 15 top referral relationship folks may not have ever used you Like. That's not a criteria A hundred percent. The criteria is they know you like you trust you and they stand on the mountaintop for you Like that's the. I think there's a misnomer that my best referral sources are certain people that I did business with, but you have to think deeper. Who? Who do I know that, no matter what conversation they're having, you talk about it. What am I going to say at the cocktail party over the holiday? What am I going to know party over the holiday. What am I going to? You know I'm going to be two times the appreciating home value. So I just encourage our listeners as we finalize our plan Now, mark and I know that we're recording this on Friday the 13th.

Gary:

It will play sometime in the next couple of weeks. Number one I hope your plan is final. That would be my first comment. But if it's not, it's never too late. So, mark, let's look into next year. You know, one of the things that I always find fascinating in your presentations that I get the opportunity to see twice a year is what features in the luxury home is today's luxury buyer looking for? I always find that to be the most I'm not going to say entertaining, but certainly most intriguing to me, because you know that. You know that's kind of not my DNA in terms of. You know, my house is a place that I live. It's about that simple Right. So what? So? What's the luxury buyer looking for today? Parker?

Mark:

Great question and I'll give you kind of a short list of what I call the top ones. Number one sensational dining areas. Now, you and I are about the same age. I remember when we grew up a dining area was a 12 by 12 room with a dining room table, maybe a sideboard, maybe had an entrance from the hallway, maybe an entrance to the kitchen, and that was a sensational dining area. Today's dining area is probably in a luxury space a 40 by 40 room that includes a little bit of a dining area, a great big part of the kitchen and a great big part of the family room. And that is now your sensational dining area Incredibly informal. There's probably no sideboard sitting all over there with grandma's tea set, but there's probably a charcuterie board on one side, shrimp cocktail on the other side, crab claws on another side, and then you've got a cutting board over here with a carving station and now it's a sensational dining area. But it's an experience that you don't enjoy necessarily sitting at a table. You enjoy it standing or even sitting with a group of friends. So that's actually number one on the list.

Mark:

And you you know it's kind of self-evident now you walk into any newly constructed you know 2000 or newer. It's all open space and it's all one big area, but that's called the sensational dining area, now Statement rooms. So you walk in and whether it's a statement bathroom, a statement family room, a statement living room, but bold colors encompassed in these statement rooms. So black is back, gold is back I still got brass and glass from the 80s and I'm convinced it's coming back and emerald is the new color this year. So you're seeing a lot of dark colors in decorating, dark colors in plumbing fixtures, now dark colors in tile, whereas we went kind of to that natural, lighter colored area for so many years. Floral isal is still out, but it's beginning to come back a little bit. But the boldness is coming back in a big way. You're going to love this one over decorating. So remember, we've gone through maybe the last 10 or 15 years of minimalism. I might have two or three trinkets on a shelf and now over decorating is coming back. I'm going to put a lot of stuff on shelves, a lot of stuff on tables, because it shows who I am, the experiences I've had, and I want to share those experiences with you. You're seeing living walls of plants where you would walk in and a wall of a room has live plants on it and it's designed to be that way. It's cool, I mean, and truthfully it's very environmentally friendly. So lots of things.

Mark:

And the one that I love because you know I'm kind of a car guy is the show garages are back in a big way. So it's interesting. You have the show garage. I remember when I was a kid, you know, a luxury garage meant that you had sheetrock in your garage, because my garage we only had studs. But now show garages it's not just the epoxy on the floors, it's turnstiles that carry your signature car and it goes around in a circle on a turn cycle. You've got lifts where you park one car underneath and then you raise it and another car goes in underneath. So your two-car garage just became a four-car garage and people are designing houses around the fact that I can put multiple cars in a show garage.

Mark:

Ten years ago people built what they called kind of their man caves off-site, and maybe you bought a condo. That was really a garage, had a bar in it, a bathroom in it, but they're making this part of their homes now and it's not just the garage. In my course this past fall I included a lot of pictures of show garages where, literally, when you walked from the front door to your sensational dining area, which was really your kitchen, you walked past a glass wall that looked out into your garage. Heaven forbid that there would be a glass wall in my garage right now. I wouldn't want people to see what's in my garage.

Mark:

But people are proud of their cars. People are proud of their assets, because cars are not a car anymore. It's a statement of who you are. So these show garages are really a big deal, and not just from a physical plant, but from a. I want to show off my cars. You know big bathrooms coming back in a big way, and I think that oh, the other one. I love secluded workout spaces. Yep, I want to work out this body, but I don't want anybody to watch it in progress. Okay, so that's kind of the big thing. Obviously, you know, sustainability, environmental friendliness very, very continue to be very prevalent in luxury space as well very, very continue to be very prevalent in luxury space as well.

Gary:

Well, you will appreciate the comment I'm about to make about a private workout space. And my kids would be laughing, because when we lived in the first house we moved to to Charlotte, you know, my kids were young and at home and I bought a rowing machine and we put the rowing machine in the family room and we had to challenge the three of us would challenge each other to the 500 meter row, like literally it was in the middle of the family room, so anybody in the house was watching the workout. So that would be number one. Number two what I like is uh, what, what did you call the one where? Uh, your, the show walls, the show garage. Was that your turn? No, not the garage, living walls, the living walls.

Gary:

Well, the minute we get off this interview, I'm going to call may, because may has been using the living wall and never, ever stopped, wow. And so we have pictures of people we don't know on our wall because we just found them. I mean, that's how many pictures we have on our wall. But it's to your point. It's about living, it's about the experiences, the memories, the kids young, the kids old, the kids, the grandkids, the wedding, the you know all of the things. So very interesting the. I think let's talk a little bit about size of the home because I do think that's shifted a little bit, not necessarily in the last couple of years, but kind of a historical perspective on the luxury home from a square footage. Any observations?

Mark:

there, mark. Yeah, so you'll remember the term McMansion in the late 90s, early 2000s. I want big, I want to impress my friends, and so your four, five, six, 7,000 square foot homes in the Carolinas. Those are big homes and that trended downward as we got into, certainly, the Great Recession. And then, right after the Great Recession, a trend downward where you would have smaller homes that were full of high-end amenities, high-end features, high-end locations, high-end views, and part of that was just because of density issues, especially in the urban markets. You think of downtown Charlotte, downtown Raleigh. These are markets where you didn't have the space to build big houses. So you built incredible luxury experiences, but in smaller spaces. Experiences but in smaller spaces.

Mark:

Truthfully, what we are seeing now is a trend back to large, not necessarily huge, but and it's also very market specific. So you know, in Charlotte, where you are still going to have density issues, you probably are not building 8,000, 12,000 square foot houses, but I'm looking at even some of the older homes that are being torn down and you're building as big as you can now on that building envelope. So, like in Dilworth, you might have an old 1,800 square foot home on a beautiful piece of land in Dilworth and you may say, okay, we're going to tear that one down, and that's very common now and we are going to maximize the building envelope and we're going to build as big as we can. So bigger is coming back. You get out into markets where there's more land. In the suburbs and even the ex-burbs you're going to get into much larger homes. Now that's kind of offset a little bit by cost of construction. Yeah right, so you've got to be. You know there's a lot of sensitivity about cost, even with the affluent. But bigger is better again now.

Gary:

Mark. So I'm going to shift gears. First of all, thank you, I'm going to shift gears. I'm going out to do a luxury seller consultation. I'm not going to do a listing presentation. I don't know if I chose your right words, but I know I didn't choose the wrong words. It's definitely more of a consultation than it is a listing appointment, right? So I'm going out. We're going to kind of walk through the journey of going out on the consultation, getting the opportunity to market the property and then the contract process. So let's start. I'm going out to meet with you to present to you, have a consultation about me representing you in the sale of your home. What are the most important things for me as that agent that I must keep in mind as I best prepare myself for that meeting.

Mark:

So the question that I love to ask, especially in the luxury space, but in all markets. So you earlier said to your listeners be prepared to take a note, take this note. Ask the seller a couple of questions. Number one is what's the most important thing for you that I can bring to the table? What would make our experience together, this journey that we're going to go down, what's the most important thing that I need to achieve for you? The answer to that question is going to give you exactly what you need in order to now have that consultation. When the seller says this is my nest egg for retirement and I have to maximize my proceeds, I now know that price is most important to you and we're going to have to now position the property to get the highest price. That's going to include a lot of conditioning. It's going to include a lot of dramatizing, repairs and maintenance, but it may take us four to six weeks to get the property ready in order for you to maximize your proceeds, because I've heard you say that's the number one thing.

Mark:

Another seller might say I use this example all the time a young family the wife is an executive with Bank of America and she's been transferred to San Francisco. The husband's left behind is what is known in our industry as the trailing spouse, and he's got a two-year-old and a five-year-old At home. The wife has already been transferred to San Francisco and his answer is going to be get it sold tomorrow and now. I know that urgency is most important to you, but I can't go in. You make a great point. I can't go in with a presentation if I don't know what's important to you. We're going to have a conversation and the output of the conversation is going to determine my strategy for marketing your property, but it's going to be based upon what you want, not what I can do for you want, not what I can do for you.

Gary:

So, mark, I'm going to ask you to share that question again so that our listeners don't have to rewind. What is that question verbatim, because I love your two examples and I just want everybody to write and then modify it so it sounds like you, but I want everyone to understand. This is for every listing, but maybe a little more important in the luxury affluent, but boy understanding motivation is the key.

Mark:

What can I do to be most effective for you? What can I do to be most effective for you? What can I do to be most effective for you? And you're right, it's every price point. But in the luxury space, that luxury homeowner, future prospective seller, wants to be in control. It's very important that you allow them to have the control and by asking the question and listening and executing gives them the control. And then you've got to repeat back. So, gary, what I hear you say is we got to maximize the price, we've got to get as much as we can, because this is your nest egg. Or what I hear you say, gary, is we got to get you to your, we got to get you and your children to your wife, who's already been transferred and that's so important to you.

Gary:

And now I understand that we're going to have to focus singularly on that objective, because that's what I heard you say I can do to be most effective for you. So another huge takeaway grab your pen and pad, reframe back to the potential seller what you heard. Give them an opportunity to confirm, validate or maybe even say that's not really what I meant. And I think you know, when you take a class in the art of communication, you know just think about I asked the question. And then the other thing that you really bring up and I'm going to piggyback off a great interview I had with a very good friend of ours, jessica Edgerton. You know her word for 2025 is curiosity, and it's something that I believe.

Gary:

In today's world, particularly because you and I have already discussed relationships are, most important is just keep asking questions, seek to understand, like, really try to determine. You know it's all about motivation. It's the why, right, it's the why. Why do I want to sell my house? What is driving this decision? Is it a? Is it a family situation? Is it a additional children, is it? I hope not for me. I hope my grown children don't move back, but that has happened, sure, right. So, mark, I'm going to stay on the seller side. So what are the other pieces? Once you get that information, what are the other things really critical that need to be an integral part of your presentation? Consultation to the luxury seller that might be a little different or might be a little more important. Anything that you can share that says gosh. You cannot miss this as you prepare your presentation.

Mark:

My favorite four words, especially in the luxury space, but in any price point my global marketing plan. My global marketing plan includes exposure to 70 countries through our affiliation with the number one real estate network in the world called leading real estate companies in the world. My global marketing plan in the luxury space now includes partnering with our partner in Luxury Portfolio International and it's so important. Every price point seller wants to hear that you're going to market the property globally. But in the luxury space they've got to hear the words my global marketing plan includes and then fill in the blanks. And that's where I think and I'm not going to make this an Alan Tate commercial, but that's where I think a company like ours, where we've got the power of the Howard Hanna brand, the Alan Tate brand, the leading real estate companies of the world brand, the luxury portfolio international brand, and then you put the agent's brand on top of that as the icing on that cake and you've got everything that you need. But sellers need to hear those words that they understand.

Mark:

We've got regional marketing in our local markets. We've got marketing throughout the Northeast, midwest and Southeast. Now, with our Howard Hanna partner, we've got leading RE in 70 countries around the world and we've got luxury portfolio, the number one luxury network in the world, and I say there's five number ones. We are the number one real estate company in the Carolinas. We are the number one family-owned real estate company in America. We are the number one network of brokers in the world. We are the number one luxury network of brokers in the world and we are the number one luxury broker in the Carolinas. Five number ones Now in the non-luxury space. You take away two of those and we're still three number ones and nobody can match that. Now it sounds like you're bragging?

Mark:

I don't believe that you're bragging. So the words that I like to use are I'm on a job interview, I'm interviewing. If I'm the agent and you're the seller, I'm interviewing for a job. And if I'm the agent and you're the seller, I'm interviewing for a job. And quite truthfully, especially in the luxury space, I want this job in every, at every price point. I want this job and I'm going to tell you about my resume, my qualifications, my company's qualifications, and I'm going to tell you that we're number one in five areas in the luxury space. I'm going to tell you that we're number one in three areas in the non-luxury space.

Mark:

And it's so important that the seller hear, not from a bragging standpoint, but from a credibility standpoint. It's your resume. Don't feel like you're bragging. Imagine you go in, you know you're an IT programmer and you go in and you're on a job to interview for an IT position and you don't say that you built the number one blah, blah, blah IT platform in the world. And you don't say that because it sounds like you're bragging. Well, it's going to hurt your ability to get the job.

Gary:

So so that reminds me of a conversation you and I had this morning. You know I'll provide a summary. You know, know the market, know your numbers and really know the information and and also relevancy and perspective. So I saw an ad. I'm going to protect everybody, but I saw a particular company in this market that last year they said we did a billion dollars, that was their thing. We're celebrating a billion and they suggest that they are the luxury broker in the market. Now let's just for the sake of this conversation, assume this is anecdotal. So how much luxury business? And again, whether you're with our company or another company, this kind of understanding of information holds true. So again to your point, I never want this to be an infomercial for us, albeit, this is what we know, so we kind of can't help it to some degree. But, mark, so think about that. How I want to know, I want to remind us all how much luxury business did our company do this?

Mark:

past year. So $2.1 billion in 2023, that's the last year we have data for. Obviously we're almost at the end of 24. But $2.1 billion in luxury sales. There's not many companies in the Carolinas or in America that do $2.1 billion in total sales and there is no way that in the Carolinas, any of our competitors have done more than $2.1 billion in total sales and there is no way that in the Carolinas, any of our competitors have done more than $2 billion for the luxury space and Gary correct me if I'm wrong, but that's roughly 25% of our business as a company is luxury.

Gary:

Yeah, I think it's 21, 22%. So I use the comparison that I just shared. I'm this other company promoting, espousing that I'm the luxury brand. I did a billion, yet we did 2.1 billion. So one would argue that we've got much, much, much more experience in the luxury space.

Gary:

And I think that it's really important to understand, number one, what the numbers are, and then number two, how do you articulate it to that customer so that it resonates with them? And the reason I share it in that way, mark, is because I think, if you've done all the conversation, questions and curiosity in the beginning, you're going to know exactly how to do it, and I think it goes back to your initial conversation with that seller. Really, really, really try to understand. So now, I think you've already alluded to it, but we'll tie a bow around it. So I go out, I do everything you just said. I get the opportunity to market the home. What are some of the marketing things that you should or need to do in the luxury space? You know you talked about LPI and you talked about, but what are some of the other strategies and tactics of your global marketing?

Mark:

plan. So I'm a firm believer that the first four weeks maybe six weeks, depending upon how much work needs to be done to the property to make it special the first four to six weeks from the time the seller says you were hired to the time that property is launched and that's a key word is launched. Okay, we don't list properties, we launch properties in all price points, but especially the luxury space. And in the luxury space I don't believe that you can effectively launch a property in less than two to three weeks. And that's assuming it's in great condition, doesn't need a lot of repairs and improvements, doesn't need a lot of conditioning, neutralization. This I mean. It's ready, but we still have to get all the little details perfect. Now, once the deep now, think of a property that requires quite a bit of repair, not necessarily repairs, but conditioning. We've got to get it positioned right. That could take four to six weeks so that and it should never be on the market during that period of time. Now you have a real estate audience, real estate agent audience, so I'm going to tell those agents you should have an effective listing agreement in place.

Mark:

In our industry there's such a thing called firm exclusive During the period of time from when the seller says you're hired to the time when we put it in the MLS. It is a firm, exclusive listing, because that is the most important time when the agent is working for the seller. The agent is getting the property completely ready for launch. The agent is the one who's providing the vendors who are going to do all the work, providing the expertise of the work that needs to be done, providing the photographer, the videographer and the drone for getting the property now ready for launch. The agent is the one who's preparing brochures long before the property hits the MLS and is launched. The agent is the one preparing the launch party, which happens the day before, the day of or the day after MLS entry, so that we are now inviting the right people to a fabulous party.

Mark:

And I'm not talking about just a broker open house. I'm talking about an invite only launch party, where I'm inviting the agents that I have researched that are most likely to have a buyer for this property. It's not a transferable invitation, it's only a small group. When I say small, it could be 10 to 50 people, depending upon the market, but it's not everybody. Come and eat my free food and drink my free wine broker open house. This is an event and I love to do fun things at these events. Number one it draws the agents who you want to have to the property, to the property. But you have a wine tasting with a sommelier and a vintner, you have a collection of exotic sports cars, you have an artist who's presenting various forms of hard art, but it's an event.

Mark:

It's not a broker open house. It's an event called a launch party and it's catered and you may, the agent may, spend. I mean, I've seen agents in our marketplace spend $10,000 on a launch party because it's the number one thing that positions the property for success. When agents especially luxury properties, but any property if I am familiar with the property I'm going to show you as a buyer, I will be excited about it. So let's say, hypothetically, a luxury agent is going to show three properties to their buyer this afternoon and they were at the launch party for my listing and they've never been in the other two properties that they're showing, which one will they be excited about? Which one will they be talking about? So I am giving you the information you need firsthand in person through the experience of my launch party, to share that with your prospective buyers, and so that's the buildup to the time when it hits the MLS is the most important time of the listing.

Mark:

Then, of course, you've got a wide variety of marketing tools through Alan Tate, through Howard Hanna, through LPI, through LeadingRE. That reaches that global audience In many of our markets. We put the property in over 25,000 websites internationally, 70 countries, so that digital marketing is really important. But in the luxury space, do not overlook print advertising, don't overlook opportunities in the Wall Street Journal, don't overlook opportunities in all of the great high-end magazines. And what I love about our relationship the agent relationship with Alan Tate, where we co-op on every single luxury ad that that agent can elect to participate in, alan Tate's got skin in the game. Alan Tate pays a portion of that advertisement in every luxury ad that we do, and I think that's such an important part of the partnership that we enjoy with our agents.

Gary:

So lots to take from that segment. So a couple of things that strike me. Number one make sure that you set crystal clear expectations. Think about your three-week, four-week, six-week prep time. I think that not every seller thinks that's how it works. So be clear and confident in the setting of your expectations. The other word, mark, that you have used a couple of times and it goes back to the question that is so important for people to ask is what can I do to provide the experience that you expect and will be satisfying? And it's interesting, I've kind of shifted from customer service to create an experience. I think it might be, you might have done it, but create an experience. It's different To your point. The launch event is not a broker's open house. So, expectations, experience. And then, the last thing I think is really important, mark Bardo just said I have seen agents invest, not spend. Invest up to $10,000 in the launch party. If you want to or are in the luxury space, you will need to invest in that transaction. Now I think in every price point. But as your price point goes up, the investment goes up because why the return goes up. And I think that when we look at our really consistent high luxury selling agents. Every one of them invests in relationships, but they invest in the business around the listings, sellings, buyers and things like that. So really a great takeaway.

Gary:

We are about to wrap a bow around this edition of Rihanna. First of all, I've enjoyed it immensely. Second, mark, our folks have to grab a pad and paper. One of my very favorite questions that I try to close everyone with I'm not sure that I always do is what is the one piece of advice that you can give everyone as we roll in and we turn the calendar into a new year? It's hard for me to believe that today we're 17, 18 days away from putting 2024 in the record book. Like I, I, I always laugh. I still think about Y2K, that just the world was about to end and this, and that we woke up and everything was fine. But I think about time. So what's your one piece of advice?

Mark:

Oh, that's a good one. I think that my piece of advice for a real estate professional in today's market, regardless of price point, is get involved. Get involved in your, your church, get involved in your country club, get involved in your book club, get involved in your bridge club, get involved in your industry. Get involved and then position yourself as a leader in an area for which you have passion. As I said earlier, people love doing business with leaders, and getting involved in something for which you have passion will automatically position you as a leadership opportunity and that will generate referral business year after year after year.

Mark:

And don't abandon your prior clients, don't abandon your sphere of influence. Have a database that you can manage, but get involved, because we all talk about managing your database. Well, the more I'm involved, the more people I add to my database. So it's a chicken and the egg you got to have people in your database to manage your database. I think that we are a people industry. I think that we are a relationship industry, and the more people that you have relationships with in a deeper way, the more likely you are to grow your business.

Gary:

One of the many things I love about interviewing Mark Bardo is always reminds me that no matter how long we've been doing it, we always have to sharpen the saw. And you've just given me a compliment to a conversation I've been having about adding into, adding to your database and what I say I'll do a. I'll do a business meeting in mooresville on tuesday and I'll say here's, I want you to add two people every day, like. So I'm focused on adding it and making sure it's your day. But what you know the part, I forget how to do it. Like I joke around the barista at Starbucks and I pull out the old Alan Tate, you know, walk the shopping center to find the manager of Pier 1 Imports. You remember that sales class that you and I took multiple times about you're involved. The more people you meet, the more people you meet, the database grows. And then make sure, as Missy and Derek said, take amazingly great care of those individuals that get on top of the mountain and say that is my real estate profession.

Mark:

Mark Bardo. Gary, it's an honor to be here, my friend. I appreciate the opportunity. It's always good to see you in person and on video, but I hear great things about these podcasts and thanks for the opportunity. It was awesome. Take care, partner. Bye, buddy.

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