ULI Fall Meeting in NYC – 10/2014

Recreational Development Council—Gold Flight

Speaker David Norden

  • Consumers are looking for the “smart buy”, “intelligent consumption”. Looking for utility—they will use it –dealing with an “uber” informed buyer. Baby boomers are managing real estate like investments—want safety and low risk.
  • “Truth telling” in the sales process—less selling and more managing the process.
  • Focus is on well being, health and happiness, life long learning. Diet—where is the food coming from—local is 1st priority.
  • Spiritual connection—emphasis on yoga, philanthropy—looking to give back.
  • Programming—family is the new golf. 2nd home communities are becoming primary homes due to people being so busy. Gen X Mom’s coordinate everything—moving to 1 stop shop amenities—simplified amenities with intensified programming. Golf is not dead—more vineyards and open space in communities. “A” properties in “A” locations is working for the high end—there is a downsizing of product taking place. Completed, ready to move in product is selling. Boomers wan it now, custom is too time consuming.
  • Big push toward contemporary—brighter, fresher, cleaner, modern. Outdoor living is popular, simplified ownership is the way to go.
  • Who is buying? Gen Xer—35 to 50 (Martis Camp—Tahoe)—still about family, boomers want to leave a legacy. “drive to” is desirable—utility of home/community.
  • Marketing today—need to hit all the avenues, not great time for pre-sales, need to build confidence and show how this is going to work.

 

New Demands from 2nd Home Buyer Prospects

They want to buy—don’t want to be sold, risk averse, want to be listened to, don’t trust sales reps, skeptical of developer. Talked to but not talked at. Come with an agenda-want a choice-don’t like 1 size fits all. Time is their greatest asset, want to see finished product. Don’t hand them a registration form to fill out—give snapshot of offerings-no buffery!

IMI—developed an “establishment clause”—they build credibility and respect by communicating the way their clients want to be communicated with.

1-Establish rapport with client—know everything about them

2-Establish expertise-client knows about the project/community—recent sales activity—planning their visit is vital—build in the expectation as to what business will transpire upon their visit.

3-Establish urgency—shorten sales cycle—offer incentives—“alternative currencies”—not just price. Extended family is engaged in the buying decision now.

Marketing—enlist key brokers-wine and dine-provide them with materials so they can drive clients to your community. Call to action—don’t load your website –need to control the information. IMI does a lot of direct mail that is highly targeted, state of the art visuals, created an app for Martis Camp—when sale is generated, homeowners are in the know.

Full time SEO—must keep website updated, it changes constantly, virtual tours are critical, role playing is key, relationship marketing and ask for referrals…..

 

Future of 2nd Home Communities

2015-challenged economy-multi-generational-emphasis is on creating a new brand.

Hualalai built a beachview restaurant and pool with a bar–$150 million in sales this year with average price of $10 million. Always about the experience. Believer in the grand opening concept, soft programming is a key to being successful.

Costa Elena-Dreams Las Mancas-Costa Rica—emphasis is on FUN! Upscale but not threatening.

Harry Frampton—E/W Partners

  • In early 2000’s decided on different track from Vail Resorts and Beaver Creek projects. Thought the new resorts will be in urban cities and college towns. NYC—sports, theater, parks, etc. People are moving to urban cities for 2nd homes. Denver-you don’t need a car, has 100 miles of bike trails without crossing a street.
  • Charleston—downtown is a fabulous resort with restaurants, college, culture, etc. More people want to be part of the city. College towns like Boulder and Chapel Hill are flourishing. We want to be around younger people where there is a vibrancy—you will live longer.
  • Milennials don’t think beach/mountains as a resort like their parents.
  • Financing is still difficult to obtain for resort projects, founders programs seem to still work, people are buying finished product.
  • Soho House—Chicago—club for 30 to 45 yr. olds active in creative industries—have thousands of members. The Summit Club—designed for millennials—have to be in the digital world—have 30,000 + members. Bay Club in San Francisco—country club without golf. Insperado—low cost club alternative $5000 to $10,000 to join—gives you access to lots of clubs.
  • Lots of focus on yoga and well being—serving your inner needs. Hears that everyone is going smaller with product but has not seen that as a trend.

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