Cover photo ©istockphoto.com / Evgeny Zhigalov
Of all the changes brought on by the pandemic, what is here to stay?
From a drone’s eye perspective of 50 years, real estate might resemble a Mobius strip, a never-ending roller coaster of ups and downs with each boom-and-bust cycle sparking small changes and adaptations. But none have had an impact comparable to the pandemic, which ushered in an avalanche of innovation, new ways of doing business and a profound shift in consumer values. Some effects are a temporary response, while many reflect a significant transformation.
“The way that real estate as an industry operates has changed, and I believe it is a microcosm that can be applied to 90 percent of the economy out there. No one is going back, and that means the way we live, work and play changes forever,” observes Marci Rossell, former CNBC chief economist and chief economist for Leading RE. “COVID drop-kicked us into 2030.”
Ask agents if any prior cycle compares to the experience of the last year and a half, and they will tell you the pandemic boom is unparalleled. “I don’t think any Realtor in the country has had the experience we’ve had this last year! Yes, there have been good upticks in certain years in certain places, but never anything like this!” shares Trinkie Watson with Chase International in Lake Tahoe.
“We’ve certainly seen periods where you had to pivot skill sets and be really aware of the market and things that would impact clients, but we’ve never seen anything like the last year and a half, (and) that’s been compounded by a lack of availability,” shares Tami Simms, with Coastal Properties Group in St. Petersburg, Florida, who is also trainer for the Institute for Luxury Home Marketing.
“I think that last year was the most significant year of change from a tech perspective,” says David Marine, chief marketing officer at Coldwell Banker Real Estate. The pandemic market accomplished what major brands had been working on for years. “In 90 days,” he says, “every single real estate agent figured out a way to move the transition online. Now it’s commonplace. It’s no longer an issue.”
“Agents basically skyrocketed 10 years into the future, and they did it in a two-month period,” says Rossell. Rather than an abrupt switch, industry experts see real estate’s seemingly overnight embrace of new technology as acceptance of tools already available. Think of it as “escalating trends that were already underway that would have happened, but they are going to happen almost a decade faster than anyone expected,” explains Rossell.
Will it be a virtual world?
Prior to what Simms dubs “the Zoom age,” she says, there wasn’t a widespread understanding or trust or proficiency with virtual apps. “Now,” she says, “we know how to use it. We’re reasonably proficient at it, and there’s a level of trust. So, we’re able to embrace this technology. You know I don’t ever want to go back to having to communicate with out-of-state buyers purely by telephone.”
Virtual Sales are touted as the main advancement sparked by the pandemic, but an even greater benefit has been an industry-wide recognition and adaptation of virtual apps to enhance and expedite the process from initial views of a property to consumer education. “FaceTime is an effective tool, but really more to give a prospect a better idea of the home, not to induce an offer … though it could,” says Watson.
Looking ahead, agents don’t expect virtual sales to disappear, but they will continue to be a rarity. “I don’t think we’ll see many escrows where the buyer hasn’t physically seen the property. Yes, Zoom and similar will continue to be a part of our lives. Also, more defined photography for our listings … the importance of a comprehensive ‘walk through’ so prospects can get a good feeling for how the house flows,” says Watson.
Detailed virtual walk-throughs became more important than ever, with platforms such as Matterport leading the way.
©istockphoto.com / fizkes
“In-person viewings have been very limited. No one wants to go to open houses. No one is walking about a house just for fun. People are looking online. They are viewing the pictures of a listing maybe 10 times before they see a house. So, a showing is more like a fourth showing, and agents need in-depth knowledge of a property,” says Joanne Nemerovski, with Compass in Chicago.
©istockphoto.com / joakimbkk
Dreaming of Home
The ability to work remotely is often cited as the main driver for the surge in sales, but even more fundamental are new consumer values regarding home and lifestyle. Citing millennials, who now comprise a substantial portion of buyers, Nemerovski says many were starting careers and literally were never home, so home basically was a shoebox they visited. “I think that sentiment has changed. Home is where the heart is. It has become the center of people’s lives. People are also more respectful of their homes.”
Everybody wants their dream home,” says Frank Aazami with Russ Lyon Sotheby’s International Realty in Scottsdale, Arizona, “because they just cashed out of another home that maybe they inherited or maybe were there for 20, 30 or 40 years.”
Buyers’ expectations of quality are high and will continue to be so. “People understand the level of finishes better than ever before. We’ve gotten so much better with respecting architects, good architects’ work, good designers’ work,” he says.
“All of a sudden, consumers are finding that now it’s not all about a commute. It’s about ‘does the place that I live offer me the things that I want to do when I have a little extra time, both inside and outside.’ Outside spaces have always been a luxury item, but more so now than ever,” says Simms. Topping wish lists are beautiful recreational facilities, inside and out. Also becoming more desirable is access to nearby outdoor venues such as parks and trails. Before COVID-19, outdoor living was a growing trend; now a connection with nature has become almost an essential for homes, particularly new construction.
Skills Put to the Test
With properties selling days or hours after going on the market and multiple platforms broadcasting new listings, it would seem agents’ skills are not essential. However, the pandemic market has proved the opposite. “It’s been a really intense time for real estate professionals in terms of making sure that their communication skills are absolutely the most important thing that they have, setting expectations, both on the seller side and the buyer side,” says Simms.
“There’s more attention to vetting prospective buyers, making sure they are qualified to buy before showing them property,” adds Watson.
Price is only part of an offer’s appeal to sellers, and crafting a winning offer has been an important skill for agents and buyers in the current market. Even when multiple offers become less of the norm, this aspect of buying will continue to be important.
An intense market tempts buyers to forgo contingencies. “It has been definitely challenging to counsel people on strategies to be successful in acquiring properties, but also in making sure that they truly understand the ramifications of releasing contingencies and know the risks they are taking on,” shares Simms.
“A downside of the intensity has been buyer’s remorse, cancellations before closing, some attempted lawsuits … a result of no inspections, jumping too fast without thorough exploration, et cetera. This would be a small percentage of the purchasers, but certainly a reflection of ‘herd mentality’ going the wrong way!” says Watson, referring to the pressure buyers felt to make a decision.
Cooldown Ahead
With days on market hovering just over 14 in July, prices rising in 99 percent of all metro areas, and double-digit price increases in 94 percent of metros (according to NAR), the current pace might seem no less fevered. Still, indications of a transition are beginning to filter out from a number of locations. Days on market are increasing ever so slightly, and overblown prices are being reduced. Or, as Katie Treem at Keller Williams Realty in Portland, Maine, explains, it might be that a property receives 20 offers instead of 40. “We’re still seeing people moving from New York, Boston, Connecticut and D.C.,” she says.
Also, agents like Treem are just beginning to see a few who bought in 2020 reselling. Sometimes they improved the property, but in others, decided the lifestyle was not what they desire or the commute, even for occasional days in the office, was too difficult.
In Tahoe, Watson says, “I believe the intensity has certainly calmed down, and I suspect very few listing agents will accept an offer from a buyer who hasn’t physically viewed the property. That goes for waived inspections … I’d be surprised if many are doing that any longer.”
No Bubbles Here
Bubble talk has become almost a perennial for real estate, but experts such as Rossell do not subscribe to this characterization of the market. Rossell says, “It’s not a bubble. It’s simply real demand bumping up against severe supply constraints. But this doesn’t mean house prices continue to go up. But what it does mean is you’re very unlikely to see the bottom fall out of the market, the way that you did in 2007, 2008.
“September 11 forever changed the way that we thought about terrorism. And I think in the same way, the first round of COVID in March of 2020 forever changed the way that we thought about public health, and pandemics. I think we’re all going to be living with the reality that at any given time something like this could happen, just like terrorism.”
Days on market are increasing, and overblown prices are being reduced. It might be a property receives 20 offers instead of 40, says Katie Treem at Keller Williams Realty in Portland, Maine.
©istockphoto.com / sara_winter
This story originally appeared in Unique Homes Fall ’21. Click here to see the digital version.
Lady M Cake Boutique, known for elegant, multi-layered Mille Crêpes cakes, has partnered with French luxury brand Baccarat to launch its first luxury cake truck in California.
Alongside 3D Artist Kurt Wenner, the five-year partnership will launch the cake truck in New York City at the Baccarat Boutique on Madison Avenue, and travel across the country before commencing operation in California. Set to start serving August 2019 in Northern California, the 28-foot multi-functional luxury cake truck will journey throughout California greeting new and existing clients of both brands with a unique cake experience.
“Baccarat is thrilled to be partnering with Lady M on this new and innovative collaboration,” says Jim Shreve, President and CEO of Baccarat North America. “Our partnership reinforces the Baccarat message of enjoying beautiful things every day. We are excited to share delicious cakes on beautiful Baccarat. Everything tastes better on Baccarat.”
From the sidewalk, pedestrians and guests will experience the Kurt Wenner 3D, life-sized rendering of the cake truck that will be affixed to the boutique’s glass façade. Inside, guests will meander through the boutique surrounded by Lady M cakes, capturing the feel of being in an actual Lady M boutique. Within the boutique, guests will be greeted with a glass of champagne as they approach yet another version of the cake truck, where Lady M Mille Crêpes will be served through a functional service window.
The Lady M x Baccarat cake truck is a stunning and luxurious feast for the eyes. On the exterior, Baccarat has mounted two large Tuile de Crystal Chandeliers ($29,100 each) and 1 small Tuile de Crystal ($12,600) that will gracefully hang suspended from two long beams that are collapsible when the food truck is not in service. Four Baccarat Mille Nuits Torch sconces ($2,150 each) will mount on either side of the service windows. During the day, Lady M will provide legendary service to clients who pre-order cakes. During the evening, Lady M and Baccarat will illuminate the night and create an outdoor dining experience for those who want to experience both brands.
“The collaboration with Lady M and Baccarat has allowed me to have an entirely new experience with interactive art. Placing my art on a food truck is a first for me,” says artist Kurt Wenner, who invented 3D Pavement Art in the 1980s. By combining his art with digital printing, Wenner offers stunning, durable, interactive illusions.
This collaboration is the first of its kind, and Lady M Cake Boutique is thrilled and honored to partner with Baccarat. We are excited to expand the concept of the Lady M experience and take our cakes (including a new confection made exclusively for the collaboration), on the road, introducing them to those both new to and familiar with the brand. We look forward to sharing our signature cakes on beautiful crystal, and sharing happiness.
“My 3D illusions are where the language of proportion and innovation meet. I’m so excited about this project as the illusions I have created will be partnered with elegant chandeliers and the world’s finest cakes. The marriage of all three will shift the perception of what is reality,” says Wenner.
The cake truck will start service starting this month in Northern California, and guests are encouraged to tag and follow along with the hashtag #ladymxbaccarat. A microsite tracking the cake truck’s journey throughout California will be live at www.ladym.com/thecaketruck.
All photos courtesy Samantha Nandez / BFA.com
TV Producer Rachael Jerahian plans to visit all 50 U.S. states along with every sovereign nation, and that is just the beginning.
Regardless of sex or financial status, Rachael Jerahian wants everyone to overcome their inhibitions and, “embrace exploration:” desire to tour the world and expand horizons without fear of being alone. Being alone is what initially gave Jerahian the strength to begin her travels, and she hasn’t looked back since. “Overcoming tragedy is something everyone faces,” said Jerahian. “Perhaps, it’s because to experience great highs, we have to know how to conquer terrifying lows.”
Acclaimed producer, Jerahian recently announced her intention to complete the first all-inclusive world travel expedition in history. She began her quest in June, and now plans to stop in all 50 U.S. states, travel to each of the 195 sovereign countries of the world, climb each of the seven continents’ highest peaks, and ski the last degree in both the North and South Poles, all while giving back to the many lives she encounters along her way.
Jerahian, though no stranger to traveling, is embarking on this trip knowing it is to be the most significant one of her life thus far. After suffering the loss of both her parents to cancer by age 30, Jerahian now embraces the cliche to, “live life to the fullest,” and vows not to let life pass her by. Her path across the globe is her way of doing so. Yearning to be a reporter, Jerahian’s story begins in New York City, where she tried her hand in broadcast, until she finally fell in love with production behind the scenes. She now works as a prominent TV producer for multiple networks, including CNN, Food Network, Travel, Discovery, Viceland, PBS, Spike and A&E. After losing her mother to cancer in 2014, Jerahian and her sister planned a trip to clear their minds to Mexico. Jerahian caught the travel bug, returning to the states just to plan out a list of where to go next.
Her global expedition begins in the U.S., in which she plans to drive to all 50 U.S. states, and admits on her blog that this was easier planned than executed. “So… as I began the (daunting) process of mapping out the driving route of the lower 48 states, it quickly became apparent just how difficult this trip was going to be. I knew this would be A LOT of driving for one thing!” She will first head to Alaska, then to her hometown of Los Angeles, then the rest of the states starting in July 2018 and ending tentatively in February 2019. Traveling outside the country comes next, with the first stops being the Middle East and Africa for Jerahian. This leg of the journey is to start in early 2019, according to her blog. When Jerahian will tackle the seven summits and the North and South Pole are still to be decided.
