Two Iconic Brands Come Together for First-of-its-Kind Program to introduce RESIDE Magazine
Sotheby's International Realty Affiliates LLC today announced it has entered a custom-publishing relationship with Dow Jones Media Group to present RESIDE®, a bespoke luxury lifestyle magazine. The first-of-its kind relationship gives Sotheby’s International Realty® affiliate companies around the world a turnkey solution to publish a customized, branded magazine created by the Dow Jones Media Group.
“We have done extensive research and know that lifestyle, real estate, and home design print publications are increasingly important to luxury consumers,” said Kevin Thompson, chief marketing officer, Sotheby’s International Realty Affiliates LLC. “RESIDE was designed with these luxury consumers in mind, understanding the way they consume content, the types of content they are interested in, and reaching them in a way they prefer. Working with the Dow Jones Media Group allows our affiliate companies to publish rich, quality content that they can distribute in local markets to meet the needs of their clientele. We are proud to launch this first-of-its-kind, turnkey program to our global network.”
RESIDE provides Sotheby’s International Realty affiliate companies with an end-to-end publishing solution including:
Original lifestyle content created by the Dow Jones Media Group, in addition to content provided by the Sotheby’s International Realty brand and the Sotheby's auction house
A showcase of homes represented by the Sotheby’s International Realty brand's affiliates
An individualized version of the book for each Sotheby’s International Realty affiliate company participating in the program
Access to the Dow Jones Media Group global distribution network and distribution models
“Dow Jones Media Group (DJMG) is a global leading publisher in the business, luxury lifestyle, and real estate space, so this is a perfect pairing,” said Luke Bahrenburg, vice president, real estate at Dow Jones. “DJMG is uniquely positioned to provide the Sotheby’s International Realty brand with a full-service custom publishing solution and we are thrilled to expand upon the already great relationship between our brands with the publication of RESIDE. As leaders in luxury and lifestyle, both Dow Jones Media Group and the Sotheby’s International Realty brand have a deep understanding of the power of print in engaging the luxury consumer. This partnership will allow the Sotheby’s International Realty network of global affiliates to fuse rich lifestyle content alongside extraordinary homes to create a bespoke experience for luxury consumers around the world.”
The Sotheby's International Realty network currently has more than 22,000 affiliated independent sales associates located in 950 offices in 70 countries and territories worldwide. In 2017, the brand achieved a record global sales volume of $108 billion USD. Sotheby's International Realty listings are marketed on the sothebysrealty.com global website. In addition to the referral opportunities and widened exposure generated from this source, each brokerage firm and its clients benefit from an association with the Sotheby's auction house and worldwide Sotheby's International Realty marketing programs. Each office is independently owned and operated.
With an emphasis on exclusivity, the Sotheby's International Realty® brands media plan is driven by a consumer-centric approach targeting potential homebuyers and sellers at all stages of the real estate journey. We partner with leading media powerhouses to deliver content to discerning audiences worldwide.
The Sotheby's International Realty® brand has introduced revolutionary augmented reality (AR) app Curate by Sotheby's International Realty(sm). Here are some of the ways the app will benefit homebuyers, sellers, and real estate agents.
According the Harvard Business Review's A Manager's Guide to Augmented Reality, research has shown that an AR experience allows consumers to form more accurate expectations, therefore increasing confidence in purchasing decisions and shortening the sales cycle.
For prospective homebuyers - Viewing a potential house in AR breaks down visualization barriers that often accompany the homebuying process, allowing prospective homebuyers the unique ability to envision the house in their personal taste and style. Curate by Sotheby’s International Realty offers the opportunity for buyers to ultimately see a house as their own home, increasing confidence in any purchasing decisions.
For home sellers / Sotheby’s International Realty clients - Selling a home with a Sotheby’s International Realty sales associate means tapping into the power of AR to sell the home by helping prospective buyers overcome the visualization barriers of touring an empty home or one decorated in style that differs from their taste.
For the Sotheby’s International Realty sales associate - The benefits for the sales associate are similar to those of the homebuyer and seller; Curate by Sotheby’s International Realty empowers the sales associate to present a home in an objective and neutral manner. The app also alleviates the need for sales associates to physically stage homes, allowing them to save money on the costs of either renting or buying and storing furniture.
"Curate by Sotheby’s International Realty is destined to become a go-to resource for Sotheby’s International Realty sales associates,” said Ashley F. Morris, vice president of marketing, Atlanta Fine Homes Sotheby’s International Realty. “This app is the first of its kind for residential real estate and perfectly aligns with our goal to deliver an immersive experience tailored to each client's individual style. Curate by Sotheby’s International Realty unites innovation with our commitment to providing exceptional service to our clients by allowing sales associates to take on a meaningful role in the transformation of a house into a home."
The Sotheby’s International Realtyï¿½ brand has introduced revolutionary augmented reality (AR) app Curate by Sotheby’s International Realty(sm). Here are the key groundbreaking features of the app:
Visualization - Any property can be transformed through a curated selection of AR furnishings and dï¿½cor sets. Listing-specific staging options will be available in the near future.
Recollection - The app has screenshot capabilities, allowing viewers to capture and store the images of AR furniture sets placed within the visit.
Shop - Virtual home furnishings can be clicked for more information about the product, including a link to exit the app and be directed to a retailer's website. All furniture is shown to-scale and provides accurate room dimensions, ensuring furniture viewed in the app will be a fit, making purchasing and moving into a new home easier on new home buyers.
"The Sotheby’s International Realty brand has always been a leader when it comes to adapting new technologies to the real estate industry and understanding homebuying trends,” noted John Passerini, global vice president of interactive marketing, Sotheby’s International Realty Affiliates LLC. “Almost a decade ago, we committed to only displaying high-resolution photography on our website; we then had the foresight to understand that video would become increasingly important to homebuyers and so we introduced high-definition videography to our website; and then came 3D and Virtual Reality Tours with Matterport. We recognized that augmented reality is the way in which people will shop in the future and when Google approached us to be an official launch partner for ARCore, we knew it was the right move."
"Buying a house is not only a significant financial decision, but is also deeply personal and emotional. Introducing an augmented reality component to the homebuying experience takes the consumer on a personal journey that allows them to see a house transformed into a home, their home, through the magic of technology." – John Passerini, global vice president of interactive marketing, Sotheby’s International Realty Affiliates LLC
The app was built with ARCore, Google's AR Software platform, and is powered by roOomy, the leading virtual staging technology platform specializing in 3D/AR/VR content creation and application development. Curateby Sotheby’s International Realty allows consumers to visualize a house as their own before purchase, thereby curating the homebuying experience. Working closely with Google in the run up to ARCore's release, the Sotheby’s International Realty® brand is the first real estate brand to launch and implement a virtual staging AR app, transforming the homebuying and selling experience for sales associates and consumers.
“ARCore enables augmented reality capabilities on 100 million Android devices across the ecosystem, bringing new possibilities to today’s mobile phones. We’re thrilled to work with the Sotheby’s International Realty brand on this experience, which can help redefine the way real estate is sold.” – Adrienne McCallister, senior director, Google AR Business Development
Curateby Sotheby’s International Realty is taking virtually staged images from a flat, 2-D screen into the house itself through the power of AR. The app also features a curated selection of AR interior designs, ranging from modern living rooms to traditional dining rooms that provides the consumer with the opportunity to immediately swap among these styles, something physical staging could never accomplish.
"Curate by Sotheby’s International Realty solves visualization problems without making costly, time-intensive and cumbersome changes to the physical space." – John Passerini
Curate by Sotheby’s International Realty is available now for download in the Google Play Store. The app was built with Google's ARCore, which can run on 100 million Android devices worldwide. The Sotheby's International Realty brand will launch Curate by Sotheby’s International Realty for iOS this spring through a continued partnership with roOomy.
The Sotheby's International Realty brand also reported growth across its global network. At year-end, the network totaled nearly 950 offices and approximately 22,000 sales associates worldwide.
In the United States, the Sotheby's International Realty brand achieved over $96 billion USD in sales volume in 2017 and added six independently owned and operated residential real estate firms to its network and 58 new offices. This past year witnessed continued significant growth by the brand's existing affiliate companies through talent attraction as well as mergers and acquisitions, most notably increasing the brand's market presence in the San Francisco Bay Area; Castle Rock, Colorado; and in Southern Florida and Key West. The brand also entered several key new markets last year, namely: Roseville, California; Avalon and Stone Harbor, New Jersey; the Central and Western Adirondacks regions of New York; Greater Greenville, South Carolina; and southeast Wisconsin.
Outside the United States, the Sotheby's International Realty brand achieved over $12 billion USD in sales volume in 2017 while continuing to expand into key markets. In Europe, the brand grew its presence in Spain into the coastal cities of Valencia and San Sebastián, and in Belgium to Antwerp and Waterloo, as well as expanding to the Greek island of Rhodes. The brand also sold the rights to the Asian countries of Vietnam, Indonesia and Sri Lanka to establish a future presence, and grew within India to include the key markets of Mumbai, Bengaluru, Chennai, Pune, Goa and Kolkata
Reaching the Consumer
The Sotheby’s International Realty brand website, sothebysrealty.com, saw another record year with nearly 27 million visits, a 25% increase year-over-year, with 60% of visitors coming from outside the United States and 17.5% of traffic being from new users.
An exclusive alliance with the Nikkei, the most influential news publication in Japan, was launched in 2017. The alliance enables the brand to generate Japanese buyer interest through the Nikkei's digital platform which reaches over 29 million monthly readers. The Sotheby’s International Realty brand is the first real estate brand to present property listings outside of Japan to readers of the Nikkei, giving Japanese consumers access to residential real estate offerings in nearly 70 countries and territories.
"In 2017, the brand launched a dedicated effort to establish meaningful connections with the emerging affluent consumer," said Kevin Thompson, chief marketing officer, Sotheby’s International Realty Affiliates LLC. "Data from sothebysrealty.com indicates that we are already well-positioned among this demographic, showing that nearly half of the traffic coming to the site was from the 25-to-44-year-old age group. As personalization has begun its reign over the luxury mindset, the consumer journey has also experienced a shift; it is our mission, as a preeminent luxury residential real estate brand, to continue to identify and execute new and authentic ways to connect with discerning clients."
In 2017, the Sotheby’s International Realty brand added to its senior leadership team. Thompson was appointed as the brand's Chief Marketing Officer to oversee the marketing, advertising, and public relations initiatives worldwide. With an extensive background working with globally recognized luxury brands, Thompson set forth early in the year to create exceptional consumer experiences through the strategic use of marketing and branding. Later in the year, Julie Leonhardt-LaTorre, a proven global real estate and management leader, was appointed Chief Operating Officer to spearhead strategic growth plans for the brand.
The Sotheby's International Realty brand's affiliated companies and sales associates raised more than $500,000 USD for New Story, the brand's charitable partner and a certified 501(c)(3) non-profit organization, by the end of 2017. The funds raised will go directly to the construction of new homes in Mexico. The highlight of the partnership came at the brand's Global Networking Event, where affiliates of the Sotheby's International Realty brand pledged funds for over 150 homes in just 32 hours.
The Sotheby's International Realty brand was the No. 1 real estate brand represented in two of the six categories that comprise the 2017 REAL Trends/The Wall Street Journal "The Thousand" for the second year in a row. The brand claimed 46 of the top 250 sales associates in the REAL Trends Individual Sales Volume category, more than any other real estate brand, and had the highest combined individual sales volume from sales associates in the same category. In addition, the Sotheby's International Realty brand had the most individuals represented in the Individual Average Sales Price category.
Sotheby's International Realty's Kevin Thompson: The New Luxury Consumer The Sotheby's International Realty CMO knows what affluent millennials want in home purchases and how they're engaging with luxury brands. Read more on Sotheby's International Realty's Extraordinary Living Blog
Content by Ephraim Schwartz & Teresa O'Dette. Consult your tax advisor to better understand how these changes to the 2018 tax code affect your personal situation.
Every tax return must either: Itemize deductions, or take a standard deduction. It must be one or the other and cannot be a combination. Mortgage interest deduction = Itemizing. Here's what every real estate owner should understand regarding whether to deduct their mortgage interest, OR take the standard deduction:
MORTGAGE INTEREST DEDUCTION • Mortgage interest deduction is reduced from loan amounts up to $1,000,0000, to $750,000. This is for the primary residence + one vacation home, combined. $1.0M limit is grandfathered for:
Mortgage debt incurred on, or before, Dec. 15, 2017.
Mortgage debt incurred on, or before, Apr. 1, 2018, where the purchase contract was signed prior to Dec. 16, 2017 to close prior to Jan. 1, 2018.
Rate & Term (non-cash out) Refinances of mortgage debt originally incurred prior to Dec. 15, 2017.
• Vacation Home mortgage interest can still be deducted if a primary residence mortgage is less than the $750k limit. If the two (primary & 2nd home) mortgages combined exceed the $750k, then only a portion of the vacation home interest would be deductible. Ex. Primary residence mortgage balance of $500k, and a vacation home mortgage balance of $500k, then all of the primary residence mortgage interest will be deductible, and half of the vacation home mortgage interest will be deductible. • HELOC (Home Equity Line of Credit) debt interest can only be deducted if it was used for either; purchase, building, or improving the property. • Cash-out (home equity) mortgage debt is no longer tax deductible. The previous limit was $100k.
STANDARD DEDUCTION Standard deduction is increasing:
Individuals: increase from $6,350 → $12k
Married: increase from $12k → $24k
Head of Household: is now $18k
The increase to the standard deduction combined with a decrease to mortgage interest deduction means the standard deduction will be the right decision for more people nationwide. This will impact the tax savings for some future purchases, but not all. It's true that first time home buyers of less expensive homes will be more likely to take the standard deduction, than make use of their mortgage interest deduction, going forward. However, in our high cost market, many individuals will still benefit from itemizing their mortgage interest deduction because their mortgage interest is still larger than the standard deduction. So, in addition to other reasons to invest in real estate, owning real estate will continue to be a tax advantage for most in this area.
REAL ESTATE INCOME DEDUCTION – NEW Income from real estate can be deducted by 20% under the new law.
This deduction will be a new benefit to some vacation & investment property owners in our market. The scenario that will benefit is when the loan amount on a primary residence alone maxes out the allowable mortgage interest deduction, as a 2nd home mortgage interest would not be deductible. Under the new law 20% of rental income is a new deducted on a vacation/investment property.
Notice both the tax bracket and taxable income change.
MARGINAL TAX BRACKETS
PROPERTY TAX DEDUCTION Real estate taxes can now only be deducted up to $10,000. Previously, all property taxes could be deducted at no limit. Property taxes remain fully deductible for businesses or for-profit real estate reported on schedule E of tax returns.
Consider the combination of 20% deduction of rental income + the cap of state & local taxes: Less expensive homes & investment properties with good rental income may benefit, meanwhile more expensive homes not on schedule E are more likely to see an increased cost of homeownership.
GIFT TAXES Annual:
2017 = $14,000/person/year
2018 = $15,000/person/year
2017 = $5,490,000/person
2018 = $11,200,000/person
*Portability between married couples, so actually ~$22.4M lifetime Gift Tax exemption between couples. The majority of home buyers will not have to worry about their family paying gift taxes for any gifted down payment going forward.
CAPITAL GAINS EXCLUSION FOR PRIMARY RESIDENCE Remains unchanged. If a property has been the primary residence for any 2 years within the most recent 5 yrs, then capital gains are excluded from tax up to:
$250,000 for individual
$500,000 for joint filers
HOME IMPROVEMENTS AS ACQUISITION INDEBTEDNESS Substantial Improvement
Adds to the value of the home
Prolongs the home's useful life, or adapts the home to new uses
24 Month Look Back Period 12 Month Look Forward Period
Content by Ephraim@omglenders.com, Teresa@omglenders.com
The New Affluent report was custom-created for the Sotheby's International Realty brand with information distilled from a comprehensive research study into the needs and wants of the luxury consumer. The report offers unique insights into the changing landscape of this niche market, real estate consumers and the perception of the Sotheby's International Realty brand. This report is part of ongoing research and evolution our brand pursues to ensure that we are in the forefront of the real estate market which means that we are perfectly positioned to sell your home to the world.
Read on to see key findings that Anne Erwin Sotheby's International Realty is honing in on to continue bringing our clients, new and repeat customers the best experience when buying or selling real estate in Southern Maine and on the Seacoast of New Hampshire.