165 – How To Sell $50 Million Luxury Real Estate In New York with Shaun Osher

Synopsis

Shaun is the owner and founder of CORE Real Estate, a luxury real estate marketing and sales company based in New York. In today’s episode, Shaun tells us how he got into luxury real estate, what it takes to be successful, and how his company differentiates themselves.

Key points

Getting Into The Luxury Real Estate Market

Shaun worked as a rental agent as his second job. He got attracted to renting bigger properties because of the higher commissions he could get. Later on, he switched to sales and eventually moved to sell luxury properties.

For Shaun, selling a $50 million home is the same job as selling a $1 million home.

The CORE Brand

When he started CORE 16 years ago, he created the brand as more of a marketing company. They were the first to hire professional photographers and use copywriters for creating their beautiful brochures. They elevated the way luxury property is presented.

From South Africa To New York

Shaun was born in Johannesburg, South Africa. He initially wanted to become a jazz musician and enrolled at UC Berkeley College of Music. He ran out of money a couple of weeks after landing in Boston, so he went looking for a job.

A newspaper ad got him interested in becoming a real estate agent. He got his license then began renting apartments. For the next 14 years, he was the number broker in a high-end sales company. Then in 2005, he started CORE.

Shaun believes that mindset and having a strong foundation of principles and morals are needed to get far in this business.

Dealing With the Coronavirus Crisis

While he hasn’t been heavily impacted by the crisis, Shaun believes that it’s important for people to rise to the occasion and do our best.

There’s a guiding light at the end of all of this, and what is key is how we respond. He is confident that the city will live through this, and things will be fine.

Shaun told his team that staying healthy is most important. He suggests that they do things they never had the time to do before such as calling their contacts, getting their business in order, planting seeds that will germinate in a year or two, etc. What is important is to take a long-term approach to the business.

With this pandemic, what people need most is a human connection. So being able to provide that warm connection would mean a lot to people.

Marketing Initiatives

Shaun has a weekly newsletter called Padkos. He thinks it’s part of his job to be a communicator of information, so they continually do their reports. He has also done more podcasts now as people want to engage and have a conversation.

The Principle of CORE

No client is treated differently whether they’re buying a $500,000 property or a $50 million property. Every client is unique. They have their own needs and expectations.

They have certain standards that they want to uphold in their brand, and it is a team effort.

The Profile Of A Luxury Property Client

The profile of their buyer is very broad. They’ve had people come from all walks of life. Some are Wall Street brokers, some come from the entertainment field, and some from the technology field.

They’ve had buyers who come from around the world and want to diversify their portfolio by investing in real estate.

Shaun believes the job of real estate agents is to rationalize an irrational act. They have to convince buyers that what they’re spending is worth it and will eventually appreciate.

The high net worth individuals who buy $50 million homes have the cash available to be able to afford them. So they don’t need financing.

Buying a $50 million apartment in New York is more of a long-term prospect. People who buy it don’t do so to make a huge return from renting it out.

The Recipe For Success

For Shaun, it all goes back to the fundamentals. Study and become an expert so that people will come to rely on your expertise. Not lying, being respectful, and being responsive is important. With some luck, hard work, and tenacity, you will be successful in the long-term.

The more we share ideas and information, the better the industry becomes, and the more successful we will be.

When you give a lot of value, people will respond because it resonates with them.

Creativity As Key To Success

Shaun believes that his creative background helped him in being able to solve things creatively. No deal, buyer, seller, or home is the same. It’s necessary to have a unique, custom approach to every situation.

Those with creative backgrounds are able to think outside of the box and do things a little differently.

New Development Deals

At CORE, they do pre-development consulting. First, developers hire them to figure out what they should build, what the units should look like, what amenities should be there, etc.

Then CORE creates branding and marketing for the project. Last, they will present that to the potential homeowner and close the deal.

Depending on a number of factors, it could take 5-7 years from the start of the project to the last unit sold. The fastest they’ve seen a project go from inception to completion was 3 years.

Every project is unique in many aspects. So all of their projects are Shaun’s favorite because they all required a high level of creativity and a unique perspective.

His Most Successful Project

Shaun’s most successful project involved a new developer who bought a beautiful building in 2008. The developer paid $25 million for it and put in $75 million to complete the building. In total, the whole project cost $150 million. There were 53 different apartments broken up, and the building sold out for over $500 million.

Predictions For New York’s Real Estate Market

It’s going to be challenging for sellers in the short-term because of the lack of consumer confidence. The city has an incredibly high tax rate so many people have left.

But Shaun believes the city will rebound, there will be opportunities that people can get at, and we will see appreciation in the next 5-10 years.

Last Tips

Do what your parents tell you to do. Use common sense.

Be a sponge for information.

Don’t waste time. Do the things now that you didn’t have the time to do before.

Resources

More from our guest

• You could contact Shaun, sign up for his newsletter or classes on his website.
• Check out Shaun’s Instagram.
• You may also get in touch with Shaun at CORE Real Estate.