Episode focusing on luxury real estate. Luxury houses and condos, for buyers or sellers in any market.
Go to https://audio.winnipeghomefinder.com for the podcast website
Cert. Luxury Home Marketing Specialist
Accredited Buyer Representative
Dec 17 Podcast
[00:00:00] Bo Kauffmann - REALTOR: [00:00:00] In today's episode, we're going to take a closer look at the luxury home market and have a discussion with a luxury home specialist in Ottawa. And I'll have a couple of very exciting new developments all in episode one 45 of Winnipeg's real estate podcast.
Announcer: [00:00:18] You're listening to the bone knows real estate podcast tips and advice for home buyers, sellers, and owners with award winning Remax agent Bo Kauffmann.
Bo Kauffmann - REALTOR: [00:00:34] Welcome to this week's episode of the Winnipeg real estate podcast. Today, I'm super excited because I get to talk with a luxury home specialist in Ottawa. I love hearing from agents and other cities, and I hope you do as well. It gives us a little perspective on our own market. I think you'll enjoy hearing some of the Ottawa market stats at the end of the show.
I'll give you some really exciting news. So please listen all the way through. Today, we're going to talk about the luxury housing market. [00:01:00] The Institute for luxury home marketing has set standards for all of North American markets as to what constitutes a luxury home. You might be surprised to find out.
I know I was there in Winnipeg. A luxury home is one that is sold for as little as $500,000. So how is the market in these more expensive homes? Well, the vast majority of sales in Winnipeg are in the 200 to $350,000 range. Even here. The success percentage is usually around 70 to 75% of this year was an odd one, lots of buyers, but way too few listings.
So how did that affect the success rate while this year? Up to this point, we listed 4,813 homes between 200 and $350,000 of those. 3,846 were sold. That's a 79.9% success rate. Call it 80% in the luxury home market. That percentage drops significantly. This year, we [00:02:00] listed a total of 2,102 houses in this luxury home range.
But only 973 actually sold. So that's a 46.2% rate. So compare 80%. And this is 46.2. So if your home didn't sell no matter what price range, but definitely in the luxury home market range, take a little comfort in knowing that you're not alone. Now is the time to take a look at what you can or should change.
If you keep doing what you're doing. You keep getting what you're getting. So what are your options? take a critical look at how the home showed online and in person, whenever buyers came through, take a look at how it was marketed, where it was market, and also take a critical look at the price point for an in-depth.
Look at all these factors, check out my latest blog post entitled. Home didn't sell. What's your next step on the Winnipeg real estate times website. And of course there's a link in the show notes up next, a phone call [00:03:00] with Ottawa, super agent Nick J kite of Coldwell banker. All right. So let me introduce you to Nick J kite of Coldwell banker first auto Realty.
Nick is a luxury home agent, with certifications by the Institute for luxury home marketing, Coldwell banker global luxury and smart home certifications. Hello, Nick, how are you?
Nick J Kyte - REALTOR: [00:03:25] I'm doing great. How are you?
Bo Kauffmann - REALTOR: [00:03:27] Good. Thank you very much for doing this. I think it's really interesting to talk to agents in other markets.
Nick J Kyte - REALTOR: [00:03:34] Absolutely. I'm not, I've been looking forward to it.
Bo Kauffmann - REALTOR: [00:03:36] Okay. So let me set the stage here. Winnipeg, we've got like 800,000 people. Auto has just, I had to look it up 1.4 million just about
Nick J Kyte - REALTOR: [00:03:45] yep. Just under one four.
Bo Kauffmann - REALTOR: [00:03:46] Yep. That's great. and Winnipeg's average house sells for $350,000. What's an average house in Ottawa.
Nick J Kyte - REALTOR: [00:03:53] So as of October, 2020, the average for residential is six Oh three, two 53. And that's up [00:04:00] 24.7% over this time. Last year.
Bo Kauffmann - REALTOR: [00:04:03] Yeah. We've noticed quite an increase too in the prices this year, because I don't know if you have it, but we have a severe lack of listings right now.
Nick J Kyte - REALTOR: [00:04:10] We're going through the same thing and have been for the past about 18 months.
Bo Kauffmann - REALTOR: [00:04:15] Okay. So you're started even earlier. Our started really it's I blame it's the pandemic like sellers are maybe more hesitant to, to list, but buyers aren't, we're finding are not hesitant to buy. How are you finding?
Nick J Kyte - REALTOR: [00:04:28] So w we have a large group. Of buyers dot are consistently looking at all different price points and properties throughout the city and surrounding areas.
so really when homes do come up, some neighborhoods haven't seen some listings in months. So when that right property comes up, it's being snagged right away.
Bo Kauffmann - REALTOR: [00:04:48] Yeah. Okay. And you're saying in all price ranges,
Nick J Kyte - REALTOR: [00:04:51] Oh, all price ranges in Ottawa are from the entry level all the way up to, what we consider the luxury [00:05:00] market.
all demographics, all price points are moving along very strong currently.
Bo Kauffmann - REALTOR: [00:05:05] W what would you classify as luxury market at what price paint price point would you say it's a luxury home?
Nick J Kyte - REALTOR: [00:05:12] So here in the Ottawa area, and also according to Coldwell banker global luxury, that is anything that is above 750,000.
Bo Kauffmann - REALTOR: [00:05:22] Okay. Yeah. Here in Winnipeg green max has a separate section for homes that are 500 and up. So it's kind of commensurate, right? Like our average two years, and then our luxury home to you.
Nick J Kyte - REALTOR: [00:05:32] Absolutely. It seems in line with, with the market. So
Bo Kauffmann - REALTOR: [00:05:36] you're seeing a multiple offers even on like 800, $900 million homes.
Nick J Kyte - REALTOR: [00:05:41] So we're definitely in some areas. Absolutely. , the homes are being looked at very quickly by, by a lot of buyers and what we have to understand here in the auto market. Is, we have such high, weekly salaries and are a very government run town with over 20% of our [00:06:00] population working for the federal government and then so on.
the luxury market of seven 50 plus is a price point in Ottawa that is now very common in many neighborhoods.
Bo Kauffmann - REALTOR: [00:06:11] Okay, excellent. When you're working with a luxury listing, is there anything that you advise the seller to do to make their home stand out?
Nick J Kyte - REALTOR: [00:06:19] Absolutely. , it really starts with being proactive, on from the initial get-go.
So it's vital that the owner knows that, potential buyers are going to want to envision themselves, in their homes. So showcasing it, to the best ability, in person and online, has seen great success and I believe is essential, to selling the home.
Bo Kauffmann - REALTOR: [00:06:41] Right. So what do you do. obviously I'm assuming you're going to hire a professional photographer to do the pictures, not walk through the house with his cell phone.
Nick J Kyte - REALTOR: [00:06:49] No, absolutely not. however, I do walk through videos of myself and specific aspects of a home that I use at, different times. [00:07:00] On different social media platforms. but in terms of what we offer and to showcase the home in the best light, 100% is professional photography. in addition to that, depending on the, how the home in terms of the backyard and.
It presents from a curb appeal standpoint. we do, what they call Twilight photography or dust photography, which really gives a dramatic impact, for listing photos. And then we re we, what I do is in terms of a lifestyle video, is we are really speaking to who our target demographic is for the home.
we do a full custom video of the home. I'm speaking in the video and we also have, drone footage of the home and the community surrounding, to really give, buyers of full. breadth of what that home offers as well as the community, which is so important.
Bo Kauffmann - REALTOR: [00:07:51] exactly. yeah, that was actually one of my questions is what would it, what kind of features and what kind of things do home, luxury home buyers look for?
Nick J Kyte - REALTOR: [00:07:59] a lot of [00:08:00] them, depending on where they're coming from. They want a, an easy, active lifestyle. So for, in terms of Ottawa, being close to outdoor recreation, like our retail canal, Dallas Lake areas, the Ottawa river bike past that is very important to a lot of people. So the neighborhoods that have seen quite a significant uptake, offer those buyers.
Those types of amenities that are within walking distance or a very quick drive. in addition, they want to be around right now. It's a little bit more difficult with COVID, but they want to support local and they want to be going to the neighborhood coffee shop, or retails , and restaurants and getting to know, those entrepreneurs, because they want a sense of community.
And so being neared that, and in walking distance and kind of getting that attachment to those neighborhoods, is what we've seen, be a considerable draw to them.
Bo Kauffmann - REALTOR: [00:08:53] Okay. Excellent. Winnipeg. We have roughly 2000 agents. How many do you have in Ottawa?
Nick J Kyte - REALTOR: [00:08:59] We're [00:09:00] just over 3000 and it is going up, which is not, um you know, it's not surprising, but, at any given time we're looking at about 3000.
Bo Kauffmann - REALTOR: [00:09:08] Okay. So definitely home sellers have options. I mean, there's thousands of agents to pick from. What do you tell home sellers to look for in an agent that represents them?
Nick J Kyte - REALTOR: [00:09:17] So, first of all, you have to look at their portfolio and what they've done. so one thing I always say is no matter what price level , or type of home we're selling is to look at testimonials, , so does that agent have recent testimonials of the property category that they're looking at selling that they can share so that the home seller, can get a feel of what experience. this agent has as well as what they've recently done, to see if the home sellers were satisfied with their experience with that given realtor, that would be one, definitely two would be looking at what they do from a marketing standpoint.
, and that has a lot to do with, social media currently. but very importantly, [00:10:00] video marketing. And how that is incorporated. there were a lot of agents out there that, state that they're on social media or that the do video marketing. However, when you go to their platforms, it's very few and far between, and that's something that on social media.
Is something that can be confirmed by home sellers. They, I actively show what I do with other listings on a daily basis. And when they ask about other realtors and that they're on social media too, I just ask, who are they speaking about? And I pull up their profile and can show that. The last time they posted or how to video was weeks ago, whereas I'm consistently putting up content and marketing property, on a daily basis.
Bo Kauffmann - REALTOR: [00:10:42] Exactly. I just talked to somebody who's a, a home listing is about to expire and she called me to take over the listing and she says, and I talked to her about. Uh, social media and she says, yeah, the agent listed it on Facebook once. So I went on Facebook, I Googled Googled. I Facebooked the address [00:11:00] and it comes up as one posting, literally two and a half months ago.
Nothing else was done since then. Um, and another thing that I find is agents will have a page with a hundred fans, 200, 500 fans, whatever they'll post it, but then they won't spend the money. Uh, or the effort to boost the posting in any way. So like 60 people will see it. , I'm also curious.
you are an expert in global marketing is what, what the bio said. What is it you do to market globally?
Nick J Kyte - REALTOR: [00:11:28] Well, that's a great question. So really what it is that you have to know where these buyers are coming from. Are they coming from the city domestically, internationally? And the answer to that in many cases is all three.
The marketing content that we are doing is consistent throughout all of those various segments. However, getting attention. Of those, buyers is very key. And so for instance, with the global luxury platform with Coldwell banker, because I'm certified, [00:12:00] I'm able to market properties that are listed seven 50 and above here in Ottawa on the global luxury website, which currently, is the.
Biggest brand for luxury in the world. And we're in over 49 countries with 93,000 agents. And that has a significant uptake. and in terms of social media, Understanding your demographic and targeting those demographics through promotions and booths, is what I've seen to be very successful in targeting buyers who then have the are qualified depending on what price point you're looking at, to want to come see the house and either get in contact with.
with us or with their agent. And that's a lot of times my marketing is out there and buyers are contacting me to let me know that they're going to call their realtor and schedule a showing.
Bo Kauffmann - REALTOR: [00:12:50] Exactly. Okay. Yeah. I couldn't agree with you more, Nick. the agent is it's super important that the seller picks the right agent is what I'm trying to say.
tell us. Tell [00:13:00] me a little bit more about your certification and what makes you stand out and a little bit about how people can contact you. Yeah,
Nick J Kyte - REALTOR: [00:13:07] absolutely. I'm on all social media platforms. Nick J kite, YouTube, LinkedIn, Twitter, Facebook, Instagram, and you can find me on my email@example.com.
and one of my domain names that I have had since I started in the business, as I knew that luxury was a market segment that I always want to get into is Ottawa million dollar listings.com and.ca. which I've had for, almost eight years now. So I'm on all those platforms, actively involved in social media, content and video, and just to enjoy myself from a lifestyle, community.
I support a lot of local businesses that are not only friends and family, but clients as well. And that's how I've built my business is by working with friends and pretty much, You know, a lot of people say you can't do business with friends. And by [00:14:00] say the exact opposite that you can definitely do business with friends as long as there's mutual.
Bo Kauffmann - REALTOR: [00:14:05] Exactly. Nick J kite, K Y T E for you not name any relation to Jim Kate. Yes.
Nick J Kyte - REALTOR: [00:14:12] so Jim would be, third cousin of ours. A funny story, is, my late grandmother, that was living in Cornwall, Ontario. Jim stayed with her while he was, playing hockey in Cornwall for a period of time. And, my migrant, my late grandmother really.
had some pictures and share good stories of that time. And now Jim is here , in, back in Ottawa and I've gone from college and doing great things. And I was out of golf in college as well. , just as Jim was arriving, I was departing from a golf and college at time.
Bo Kauffmann - REALTOR: [00:14:46] Oh, wow. Well, , it truly is a small world because.
Two years ago, I sold a house to somebody coming from Ottawa and it would qualify as a luxury home in Winnipeg. It was $670,000, but we got to talking about [00:15:00] Ottawa and, I don't know how we got on the name of Jim kite, but he actually knew Jim at Algonquin college. So , it's really a small world.
Nick J Kyte - REALTOR: [00:15:08] I the bowl I can tell you right now, it is insane how small the world really is.
Bo Kauffmann - REALTOR: [00:15:13] Right. So while going forward, if I have buyers in Ottawa, I'll be sending them your way and hopefully you'll do the same.
Nick J Kyte - REALTOR: [00:15:19] Absolutely. This is, this has been a great time. And I look forward to doing this again with you.
Bo Kauffmann - REALTOR: [00:15:24] Yes. So do I, and we talked about doing one that's addressed at agents getting into the market and, , doing a podcast about that. I think that would be a really good segment.
Nick J Kyte - REALTOR: [00:15:33] I completely agree. And, I was, very pleased, to, to come on and happy to chat about, the luxury market.
And if you have any follow-up questions, I'm always here.
Bo Kauffmann - REALTOR: [00:15:42] Thanks a lot, Nick, and take care, buddy.
Nick J Kyte - REALTOR: [00:15:44] You too. Thanks so much, Paul. Enjoy your weekend.
Bo Kauffmann - REALTOR: [00:15:46] Okay.
Nick J Kyte - REALTOR: [00:15:47] Thank you.
Bo Kauffmann - REALTOR: [00:15:50] Well, I hope you enjoyed listening to that. As much as I enjoyed talking to Nick. And that brings me to the exciting news. I promised earlier, speaking with Nick and interviewing him has given me [00:16:00] the kick in the pants that I needed.
And I became a member of the luxury home marketing Institute. And in fact, I've done all the testing and submitted all the information they required. I'm now a certified member, a certified luxury home marketing specialist, while I'm proud to have taken the step. It really means even more for my luxury home buyers and selling clients.
I now have a truly global reach to access potential buyers and the luxury home and condo market. I've learned about the latest technological advances and social media marketing strategies to help give your home in comparable exposure on the marketplace. So if you're selling a Winnipeg luxury property, or if you've tried and you fell into that 53.8%.
Remember I talked earlier about the success rate being 46.2. So there's 53.8 that are unsuccessful. If you fall into that category, give me a call and let's discuss your next move. And for the second piece of exciting news, I can announce a new format for my [00:17:00] monthly market updates. Each month I produce a Winnipeg real estate market update, and it's easily the most read article on my site.
Starting in the new year, those updates like a new form, a form of an online publication, a PDF, almost like a magazine that you can read on your phone or desktop and even download it, but even more important. these are multimedia capable and audio and video is going to be embedded in them. I think it's going to be very exciting to see the market develop over the next year.
And the first couple of days of each month, we'll see the latest market report. And then six times a year, starting with mid January, I'll be releasing a luxury home market report, separate and above the other regular market reports. Hope you enjoy those. You've enjoyed listening to this episode as much as I've enjoyed creating it, because I really do love it.
If you found the information helpful, why not download my free podcasting app that way you never miss another episode and I've made it super simple to just go to [00:18:00] Bono's dot homes slash apps. That's eight PPS available for Apple and Android devices. If you just want to see the show notes or read the transcript, go to Bono's dot homes slash one four, three.
That's this episode's number there. You can also click on the little microphone button and record a question or comment. And finally, please give this podcast a five star rating again. We've made it super simple. Just go to love the podcast.com/bo knows. Thank you so much for listening. Let's do this again next week.
Announcer: [00:18:40] You've been listening to Boak Hoffman of Remax performance Realty. Are you thinking of buying or selling a house or a condo in Winnipeg
Nick J Kyte - REALTOR: [00:18:48] Call Bo
Announcer: [00:18:49] at (204) 333-2202. Remember bo knows real estate.