To Make a Big Sale, Staging and Photography Have To Be Just Right

When a potential buyer considers purchasing a new property, their first step, even at the luxury level, is often to look at some listings to see what’s out there.

"Because we know that most buyers start their search online," said Alexander Ali, the CEO and founder of a Los Angeles-based public relations firm called The Society Group, "a listing’s photos and videos serve as a window into the property’s world until you can get that buyer in to see it."

For this reason, "they’re very, very important," he continued.

As an introduction to a property, a listing’s images must break through the online or social media clutter that people have gotten used to just mindlessly scrolling through, said Jorge Uribe, an agent at ONE Sotheby’s International Realty in South Florida. "You need one image that will make someone stop channel surfing through properties," he continued, "and stop on yours."

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And once you draw them in with what industry insiders call the hero image or money shot, establishing an emotional connection so that the buyer wants to see the property in person is the goal.

"We want to get their heart pumping, so that by the time they get to the house, they’re already rooting for it," said Ben Belack, director of residential sales at The Agency.

While the images undoubtedly play a key role in marketing a property, the staging that happens before they’re taken is almost as important, said Shaun Drummond, the sales director of London’s Harrods Estates.

"Not even the world’s most technically adept photographer or videographer will be able to compensate for a poorly presented property," he said.

The cost of staging, which can vary greatly and is covered by the seller or developer, comes down to how much needs to be updated to get it right.

In a Miami Beach oceanfront penthouse, which Mr. Uribe has listed $39.5 million, the necessary staging was as simple as adding accent pieces, flowers and candles, he said. On the other hand, in a Hollywood Hills home, which Mr. Belack has listed for $2.695 million, getting the property photo-ready meant asking the owner to move out so that a team could repair, repaint and fully stage it, at a cost of $15,000.

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Cheryl Eisen, the president and founder of Interior Marketing Group, a company that provides luxury staging in New York’s Tri-State area, said the most expensive luxury properties are best served by her full-service approach, which includes wallpaper, drapes, custom light fixtures and original artwork, all delivered within a 12-day guarantee.

"These billionaire buyers expect something stunning," Ms. Eisen said. "The staging and the photos have to elevate the property."

At about 1% of the listing price—or $100,000 for a $10 million property—the cost of this service can get quite steep, but Ms. Eisen said it’s an approach that works. She illustrated that success with examples, like a Baccarat Hotel & Residences penthouse, which was originally listed and photographed empty, where it languished on the market. After she came in with her soup-to-nuts staging effort, it sold for $42.55 million, and the buyer even opted to purchase all the décor and furnishings.

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To best showcase a property in its listing images, Ms. Eisen said that she always keeps the furnishings classic and low—a staging trick to make the ceilings appear higher. She also keeps the palette neutral so that when someone is looking at the images, their eye focuses on the space and the views—never the furniture. "You want them to see the beautiful selling points of the home," she said.

Once the staging is finished and the property is close-up ready, the broker must hire the right professional photographer for the job, and steer clear of iPhone or amateur shots at all costs, Mr. Belack said. "Sellers always want retail price," he continued, "but to get the retail price, a property requires retail packaging."

For most jobs, this can cost somewhere in the $1,000 to $2,500 range, which the broker typically covers, experts say. Although for the ninth floor Miami Beach penthouse that he’s selling, Mr. Uribe said he spent about $15,000 on photography.

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"We spent two full days there, trying to capture this feeling of almost being there in a dream," Mr. Uribe said. In the end, their hero shot is an image taken poolside at dusk, with candles burning and the chaise lounges dressed. It almost looks like the deck is floating on the ocean, with a nearby building towering above and a cruise ship heading out to sea.

"You want to maximize the probability that someone is emotionally involved with the picture," he said. "That’s what you’re trying to sell."

When it comes to displaying the photos online, brokers said that after the hero image, the photos should tell a story about the property and showcase its other unique features. Sometimes that means using a drone to capture a bird’s eye view of the lot’s size or the property’s proximity to the water. Other times, it means waiting to photograph the nighttime views of the city’s downtown glow in the distance.

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Most brokers said they used all the available photo slots on their local MLS—somewhere between 30 and 50 images—if that makes sense, and doesn’t mean over-telling the story.

Any video is typically complementary to the photos, experts say. It might better showcase a property’s flow, or accentuate the lifestyle elements of the property, like its outdoor living space, views and amenities, they say.

In the case of developer Nile Niami’s Beverly Hills spec mansion Opus, which is currently listed at $100 million and comes with extras like a gold Rolls Royce and a Cristal Champagne room, the three-minute trailer has an entirely different strategy from the more straightforward photos, Mr. Ali said, using sex appeal to break through the clutter and create international buzz.

While it’s not clear yet if this approach will lead to a sale, the video has gotten more than 1 million hits since it was released online last week, Mr. Ali said, and has led to multiple showings every day, and calls expressing interest from places like Russia and China. "I couldn’t be more proud of this response," he said.

When executed right, the money shot—or over-the-top video—will grab potential buyers’ attention. But what happens when there’s a less desirable feature of the home, like outdated flooring, a pool that needs resurfacing or a less-than-ideal layout?

Mr. Belack said he prefers to omit or bury those photos within the listing, rather than put them out there in a prominent way. "The photos are meant to tease and excite, not to tell the whole story," he said. "I’m not trying to deceive anyone, but it’s my job to shine the prettiest light on a property, not to point out its weaknesses."

On the other hand, Branden Shaw, a realtor associate with the United Realty Group in Fort Lauderdale, said he prefers not to hide—or to be perceived of hiding—anything.

"I never want to dupe a buyer," Mr. Shaw said, adding that this only wastes everyone’s time. "I want to present buyers with exactly what they’re getting, in the best way possible."

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Here is a look at other news from around the world compiled by Mansion Global:

New Zealand and Sweden Housing Markets May be Headed for a Bubble Burst

A Goldman Sachs report on housing prices in G-10 countries listed New Zealand and Sweden as the markets most at risk of a market correction, with a 35% to 40% chance of a "bust" in each country in the next two years. (A bust in this case is defined as prices falling 5% or more.) In New Zealand, home prices have jumped 60% since 2010, and in Sweden, they’ve risen by 41%. New Zealand’s central bank recently forecast that housing price inflation would slow this year to 5%, but continue growing into 2020. Goldman based its predictions on the ratio of sales to rental prices, the ratio of prices to household income, and prices adjusted for inflation. "Using an average of these measures, house prices in New Zealand appear the most overvalued, followed by Canada, Sweden, Australia, and Norway," said the report. (Bloomberg)

Chinese Developers Have Growing Interest in India, But Face Uphill Battle

Amid a tightening market cycle at home, mainland Chinese developers are increasingly turning their attentions abroad, with a number of major players undertaking projects in India as other Chinese industries, including tech, are developing an increased presence in the country. Besides controls on investment outflow from the Chinese government, however, developers have run into logistical issues in India, thanks in part to the fact that property and planning is controlled by individual states, creating a great deal of variation, and difficulties in assembling large tracts of land.(Financial Times)

More:Amid Low Inventory, U.S. Homes Sell Quicker

As Sales Growth Slows, Chinese Property Investment Continued To Rise in April

Chinese property investment—a metric that comprises both commercial and residential investment—saw a month-over-month increase in April, even as residential sales grew at a sluggish pace under tight government market-cooling measures. Reuters calculates that property investment saw a 9.6% pace of growth in April, compared to 9.4% in March, as compared to property sales, which grew at a pace of 7.7% in April, their slowest pace since December 2015, and a sharp drop from their 14.7% growth in March. While home prices saw increased growth in March and 1.7 trillion yuan in property loans were issued during the first quarter, some analysts still believe that China’s property market has peaked, with investors simply lagging behind other sales metrics, and cities in recent weeks cracking down further on lending and credit. (Reuters)

Dubai’s Most Expensive Penthouse Sells for a Record-Setting AED 60 Million

A still-under-construction full-floor penthouse on Jumeira Bay in Dubai has sold for AED 60 million (around US$16 million), breaking the previous record set by a AED 42 million penthouse (US$11 million) in December 2012. The 14,000-square-foot home is set to be completed at the end of 2017 as part of the Bulgari Resorts & Residences, a 1.7 million square foot complex that will feature landscaped gardens, a wide swath of luxury amenities, a marina, 100 rooms and suites, and 20 residential villas. (Khaleej Times)

B.C. Real Estate Listings Have Dropped To a 20-Year Low While Sales Keep Rising

In a tension that’s become somewhat typical of British Columbia’s tough real estate market, data from the B.C. Real Estate Association indicates that the number of homes on the market has dropped to its lowest point in two decades, while transactions continue to climb. There were just under 10,000 transactions in April, a year-over-year drop of nearly 25%, though still well ahead of the five-year seasonally adjusted rate. The average home price in April hit C$729,000 (about US$536,000), a 2% drop from last year, but the transaction numbers indicate that the market may be coming back from a dip after the implementation of last year’s foreign buyer tax, and experts expect the supply-demand disparity to keep prices high. (Vancouver Sun)

More:Click for More In-Depth Analysis of Luxury Lifestyle News

Young San Francisco Residents Can Only Afford To Buy 1.4% of the City’s Homes

Though buyers between the ages of 25 and 44 typically represent the majority of first-time purchasers in the U.S., San Francisco residents in that demographic could only feasibly afford to buy 1.4% of the listings available in the notoriously expensive city, according to a new report from home finance site Unison. Though the city is the nation’s most popular for millennials, with an estimated median income of $92,501/year—and Unison capping potential mortgage payments at 45% of a buyer’s income—only 1.4% of the city’s listings could actually be within reach. (The calculations were based on a 10% down payment.) This stark situation for buyers could put increased pressure on the city’s already tight rental market, since this age group represents 38.5% of San Francisco’s population. (Curbed San Francisco)

Decaying Sydney Property Sells for A$1.9 Million, More Than $500,000 Over the Reserve

A three-bedroom knockdown in the Sydney suburb of Campsie has sold at auction for A$1.915 million (US$1.4 million), after bidding started at just A$1 million (US$743,140). The property—which the new owners plan to renovate and eventually move into—had been owned by the same family for 100 years, and is located in an area that’s become highly desirable thanks to its R4 High Density Residential Zoning, as well as access to transit and schools. Elsewhere, an unlivable waterfront property in Picnic Point recently sold for A$2,515,000 (US$1,868,997) at auction, a whopping A$615,000 (US$457,031) above the reserve. (news.com.au)