Malibu Hills
Real estate in Los Angeles can leave individuals close to the ocean, mountains and desert, and the appeal of Southern California increases real estate costs, creating an enclave of affluent individuals.
The trends in the Los Angeles market provide a place for luxury brands to potentially reach prime consumers. Understanding the real estate market and tendencies in a certain area helps brands to choose accurate locations to be near target consumers.
“For luxury brands it would be extremely beneficial to understand the real estate market trends of Los Angeles,” said Madison Hildebrand, founding partner of Partner’s Trust Malibu. “What communities and sub-communities are these people buying houses in? How can you target your marketing and advertising dollars directly to these communities?
“There are marketing companies that can predict who’s moving and where you should be spending your marketing dollars more effectively,” he said.
Madison Hildebrand, founding partner of Partner’s Trust Malibu
In this Q&A, Mr. Hildebrand discusses his recent career move, the Los Angeles real estate market for both individuals and brands and future trends for real estate in the California city.
Here is the dialogue:
Why did you decide to leave “Million Dollar Listing”?
After six years of having my life filmed and aired on television, I was ready to retire from the reality TV lifestyle. I am at a place in my life where I want a relationship and I didn’t feel like being a part of the show was conducive to that.
I am so grateful for my experience and all that it brought to my business and life. I’m just ready to move on to the next big thing and focus on growing my business and team.
How does Partners Trust differ from other real estate firms?
When I began thinking about changing brokerages, I met with several so that I was very informed. Partners Trust checked every box that I was looking for in a new home, but more than that I really identify with their core beliefs and ethics.
The company was founded by truly good people who are on par with the ethical and professional stance I take with my career and clients each day. At the speed that the industry is changing, I don’t feel like big corporate brokerages are able to keep up with the technology and demand our clients put on us.
Within Partners Trust, there is something we call a “brain trust” which is comprised of the most intelligent PR, marketing, technology and brand consulting industry leaders. The fact that we have this kind of team at our individual disposal as agents is instrumental and it benefits not only us as realtors, but also our clients tremendously.
Are there any new trends in luxury real estate?
In regards to trends in actual properties? New trends seem to be how efficient, user-friendly and accessible technology has become integrated into homes. Everything from the air, the lights, the sprinkler systems, the doors…all controlled by Bluetooth applications. No longer do you have to have a third party.
From an overall view of luxury real estate trends? We are still seeing a large market of foreign buyers, more cash deals, and many deals with multiple offers.
What trends do you think luxury real estate will see in the future?
I think home shopping will almost become virtual at the rate technology is going. I’ve sold properties sight-unseen before, but with the new virtual technology, people will be able to come into my office and tour my properties in say Santa Barbara, or as far away as the south of France. I’ve tested out the technology and it’s incredible.
Does Southern California real estate differ from other regions? How?
Southern California is known for its high price tags. The old adage goes “you get what you pay for,” and it will always be an attractive place to buy a home thanks to the geography, perfect climate and proximity to so many things. We have the dining, the diversity, culture in Los Angeles and are just a short drive to skiing in the mountains, wine tasting and the desert.
No location is completely perfect, though. We have our fair share of issues such as natural disasters, geographical and real estate issues that one can only learn from experience. Building and developing in California can seem nearly impossible due to the building codes, environmentalists and agencies like the Coastal Commission. It can make for a very expensive, costly and time-consuming experience.
How can luxury brands benefit from understanding the luxury real estate market trends of Los Angeles?
Any brand or company that is really at the top of its game has a thorough understanding of its key demographic. For luxury brands it would be extremely beneficial to understand the real estate market trends of Los Angeles.
What communities and sub-communities are these people buying houses in? How can you target your marketing and advertising dollars directly to these communities? There are marketing companies that can predict who’s moving and where you should be spending your marketing dollars more effectively.
Aligning yourself with such industry leaders as interior designers, contractors, etc. and educating yourself on what your clients are demanding. I often check in with these people to see what my clients are spending their money on. Where media rooms were once the biggest trend, now my clientele demographic is spending more of their money on beautiful outdoor living spaces.
Social Media applications such as Pinterest and Houzz are great places to familiarize yourself with new trends.
What is your advice to an individual, or a company, looking to invest in high-market valued areas?
Of course it starts with research and due diligence and communications. For example, I’ve seen a restaurant location in Malibu change owners and names 10 times. I always wonder if those owners did their research. Did they know the location had failed so many times in the past? Were they even aware of that?
For an individual, my advice is similar. Do your due diligence; hire an expert, know the differences in the neighborhoods, schools and future development projects that could positively or negatively affect value.
Final Take
Nancy Buckley, editorial assistant on Luxury Daily, New York