Roost, a former real estate portal and current social marketing site, was developed by Alex Chang. Chang showed up on the Inman list this year. Roost, as it has been redesigned, provides a host of tools that real estate professionals and other professionals can use to network with and to better service their customers. This marks a rather significant change from what a real estate company was expected to be even 10 years ago.

Realtors were among the first professionals to adopt technology as a primary means of reaching out to customers. In fact, it’s quite uncommon to find a realtor who doesn’t have a personal website set up at this point and, in most cases, those websites include sophisticated features such as the ability to search the MLS system, with all the sorting and filtering tools that somebody hunting for the right property would want. The social aspect of technology has become just as important to realtors over the years. In fact, one of the programs that Roost debuted in March of 2011 is a social media tool that was adopted by the California Association of Realtors and that was used in their training program designed to help realtors utilize the tremendous power of social networking.

Many of the leaders on the list are remarkable for having adapted new technologies in some way to offer a higher level of service to their clients. In the past, a real estate company was expected to be little more than a brokerage firm. Today, real estate companies are expected to utilize all of the technology resources available to them to offer their customers more options, better service and more convenience. Those real estate companies that have successfully integrated such technology have found themselves leading their peers in terms of sales, customer loyalty and the other elements that make a real estate brokerage thrive.

Real estate experts quoted in the article speculate that the growth at the extreme high end of the market is largely due to the fact that people of the requisite affluence to purchase such properties are relatively insulated from economic shocks. Realtors report that sellers have turned down offers for staggeringly large sums of money. For example, one realtor reports that sellers had declined to take offers that were as high as $12,000 per square foot. The fact that some of these homeowners also happen to own several other homes sometimes translates to a diminished enthusiasm for selling. Not all real estate experts agree on this assessment, however.

The ultra high-end luxury real estate in Manhattan is accepted to be those homes that sell for approximately $20 million or more. Among that segment of the market, record prices have been set and broken. Some realtors do report that there is good activity in the other segments of the market, however, while other realtors report that the middle and lower ends of the luxury real estate market have been flat. The very high prices being paid for the most luxurious homes in Manhattan, however, remain the story of greatest interest.

However much activity realtors report on the various levels of the luxury market, they do seem to agree that those homes that are priced at below $10 million are seeing the most difficulty in terms of sales. Between ultra wealthy individuals not being pressured to sell and homebuyers in the Manhattan luxury market being willing to offer very large sums, the highest levels of market seem poised to fare well. Recent renovations and condominiums are also reported to be selling at a very brisk pace, while homes that have been renovated for a long period of time are reported to be selling at a much less impressive pace, partially due to the difficulties involved in renovating them.

Some of the numbers are truly staggering. In London, for instance, 28% of the prime property buyers were from China, according to an article in Forbes. The same article documents a 12% increase in the average price of homes in Vancouver in 2010, a climb that is due to the demand on the market introduced by buyers from mainland China.

Russia and China—one a former and the other ostensibly still a communist nation—has seen a huge increase in the number of billionaires over the last few years. Russian billionaires, according to the Forbes article, are also pushing up the value of London real estate. Chinese buyers may have more motivation to look elsewhere for luxury properties, however, as the Chinese government has implemented strict rules on how many homes an individual can own. Buying outside of mainland China has become a popular option for these individuals. According to the Forbes article, the lacking appeal of bank bonds and equities is motivating these Chinese buyers too look toward property as a way to invest, as well.

I recently traveled to Beijing on behalf of Concierge Auctions and participated in one of the largest real estate events of the year.  The Luxury Properties Showcase, or LPS is designed for the ultra-wealthy and showcases some of the most prestigious properties in China. This show’s reach doesn’t end at the borders of mainland China, however. Properties from around the world are showcased, demonstrating how much desire there is among the attendees to move beyond the borders of their own nation and to buy in other luxury markets.

Chinese buyers may become a force to contend with in luxury and ultra-luxury real estate markets all over the world. Having so much money to invest but also having so many restrictions on how they are allowed to do so means that they may well be exhibiting more interest in purchasing assets in other nations all over the world, outside of the cities that have already seen how much demand they can introduce into the market.

The LA Times reported that Southern California real estate has seen some improvement over the last year. Real estate experts, however, caution that there are still problems in the market and that there is still some recovery that needs to occur before the market is back at full strength.

Luxury home prices, partially on demand by overseas investors, did recover somewhat. According to the article, however, the increase in prices, to some extent, only represents those prices getting back to expected levels rather than genuine increases in value.

Inventories were reported to be at the luxury end of the market, though there can be issues with these figures that are not readily apparent. For example, some homeowners may be hanging onto their houses waiting for prices to increase so that they can put them on the market. There are also homes in foreclosure that have not been put on the market yet. These are what realtors refer to as shadow inventory and, in any market, shadow inventory represents a variable that is hard to quantify when determining the overall health of the market.

Even though there are hurdles to overcome, the recovery of the luxury end of the spectrum is definitely an improvement over the market even a few years ago. In the LA Times article, realtors report that homes that were in need of repair were in high demand and that their clients, specifically those clients from overseas, were not too choosy about where the homes they purchased were located.

Increases in the median price are also not always as telling as they may seem. When many properties sell above the median price, they can pull that median price up higher, despite the fact that homes priced below the median may be selling very slowly or not at all.

However much shadow inventory might be a problem, the realtors quoted in the article do, to some extent, credit the lack of inventory as making buyers quite a bit more flexible in terms of where the properties they purchase are located. Some areas had a turnaround that would be impressive in any economy. For example, the article shows a 7.3 percent increase in prices in the 90210 ZIP code of Beverly Hills. In the previous year, there was a 1.7 percent decrease in the median value of homes. To demonstrate the fact that some of these homes are merely recovering and not increasing in price, the article also mentions that, in 2009, Beverly Hills had a 15.8 percent drop in the median value of its homes.

Most markets around the country are littered with expired listings and price reductions. Without clear performance metrics, business is won by telling the customer what they want to hear rather than the truth.  Ultimately the seller pays the price in the form of unnecessary days on market or poor sale price because their property is perceived to be stale merchandise.

Here are the metrics the National Association of Realtors should consider in implementing a ranking system:

1. % Of listings sold during their original listing period
2. % Of final sales price to original list price
3. % Of contract signed that ultimately close

In order to receive a batting average agents must close six transactions a year.

With a new national standard in place it will be easier for home sellers to make informed decisions.  Some may choose to select a rookie with lots of talent and new ideas for a reduced fee and others will select an experienced veteran for top dollar because they need predictable results.  Regardless, the batting average concept will raise the bar and improve the public’s perception of real estate agents.

Please submit your contact information in order to receive my 2011 luxury real estate market forecast.

http://www.chadroffers.com/contact/

That is what you will find in my newly launched Roffers Real Estate Report.

The Roffers Real Estate Report offers practical solutions that will help you cut through the clutter and achieve your objectives—whether you’re buying, selling, or just looking to become more informed about the luxury real estate market.

The Roffers Real Estate Report will cast a wide net that covers many topics. Future entries will include insight on how to best transact in the luxury real estate market in today’s economic environment. Posts will also examine the latest trends in luxury real estate, analyze breaking news in a usable context, and cover the growing use of luxury real estate auctions.

Just a few words about my background, and why you can have confidence in what you read here:

I am currently a luxury real estate advisor to sellers, buyers, brokers, and lenders worldwide including a number of Fortune 500 companies. Before launching the Roffers Real Estate Report, I was president and co-founder of SKY Sotheby’s International Realty in Sarasota, Florida and Minneapolis from 2004 through 2008. Less than three years after launching SKY Sotheby’s, I grew the firm to a team of 50 real estate professionals, who collectively generated more than $500 million in annual sales by utilizing innovative marketing strategies and state-of-the-art technology to bring efficiency and transparency to the real estate brokerage process.

Prior to that, I spearheaded business development for US WEST (now Qwest), serving as the company’s negotiator of high-level partnerships and investments, including groundbreaking transactions with AOL Time Warner, Yahoo, AT&T, and Palm Computing. I began my career with Cendant (now Realogy), one of the foremost providers of real estate services in the world.

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