Feature: Driving the Market: Sotheby's International Realty
January 1, 2007
Michael R. Good, President & CEO; function voidFunc() { } voidFunc();)
Background: The auction house was founded in London in
1744. After 200 years of selling so much of the great artwork that was hanging
on the walls, the firm decided to sell the walls as well. Entering the real
estate business, Sotheby’s International Realty was established in 1976. The
name was used for marketing purposes by a select group of local affiliates to
gain greater exposure for their property listings. (Click image to enlarge)
Association with Auction House: Our clients are really connoisseurs of life, whether it’s fine art or fine property. It’s a natural association for the Sotheby’s auction-house clients to turn to Sotheby’s International Realty when they want to buy property. Our clients see the brand as a leader in the luxury market and associate it with expertise and discretion. The brokers within our network can extend the benefits and services of the auction house to their clients. We have a long-term licensing agreement where the real estate company can use the auction house’s name. We’re business partners in a large sense and refer clients back and forth to each other.
How They Work: In February 2004, Realogy Corp. [formerly Cendant] entered into a long-term strategic alliance with Sotheby’s Holdings, Inc., the parent company of Sotheby’s auction house. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of the Sotheby’s International Realty luxury franchise system. Basically, two things were accomplished. First, we created a full-service luxury real estate network, comprised of high-end firms that would join as affiliates. Second, we acquired real estate offices owned by Sotheby’s International Realty. Now the company has a merged network that combines both the company-owned offices and the franchise offices, which has sparked new growth. Before the merger, there were 15 company offices—now there are nearly 60. This new model is more about the brokerage firm and the quality and services they can provide at the local level. All of our local offices carry the Sotheby’s International Realty brand name on all of their offices and property listings.
On the Local Level: We have more than 350 offices and more than 6,000 associates and brokers working for us throughout 20 countries. We don’t want to be in every market at every level. We only follow markets that contain luxury properties, which means that more than half of the United States probably wouldn’t have a Sotheby’s International Realty office location. However, not everything our brokers sell is over $1 million. Our offices serve the market they’re in and often lead in the luxury segment. Our focus is on controlled growth; we turn down far more companies than we accept. We don’t want to be the largest real estate franchise system, but we do want to be the finest and offer the best services.
Current Listings: 15,000.
Sotheby’s International Realty,
www.sothebysrealty.com
San Francisco: "My company and my name are big in
the San Francisco Bay Area, but nationally and internationally, the Sotheby’s
name and their ability to market a property globally will take our business to
another level." —Olivia Hsu Decker, Decker Bullock Sotheby’s International
Realty, which joined the SIR network in January 2007.
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Tom Perkins’
Belvedere estate is priced at $20.5 million. 415.381.7300,
www.deckerbullock.com Photograph by Vince Valdez. (Click image to enlarge)
Miami:
"About 30 percent of our clients are from a foreign market. The Sotheby’s
brand is recognized internationally, and when you have global clients looking at
properties in the $20 million to $30 million range, you want to be with the
brand that is going to set you over the top." —Carlos Justo of SOL Sotheby’s
International Realty in Miami, whose average real estate transaction price is $6
million.; function voidFunc() { } voidFunc();)
This home on Indian Creek is listed at $27.5 million.
305.573.4700, www.sothebysrealty.com (Click image to enlarge)
France: "In contrast to the U.S., the European luxury real estate market is
largely unorganized and dominated by small local companies. However, many
markets like France and Monaco have an international clientele that is looking
for professional services and know-how on an international level. Sotheby’s
International Realty is able to fill that void." —Alexander Kraft, a former New
York attorney who started at the Sotheby’s auction house in Beverly Hills before
moving to Europe in 1999, and who is now the chairman and CEO of Sotheby’s
International Realty France and Monaco.; function voidFunc() { } voidFunc();)
A current listing for a château
in Saint Paul de Vence.
+41.44.752.5140, www.sothebysrealty.com (Click image to enlarge)
Jackson Hole: "The unique partnership we have with
the Sotheby’s auction house creates cross-marketing and networking opportunities
that cannot be matched. I have held client receptions in the London and New York
auction galleries to introduce new property offerings. Among these was the
recent launch of the highly successful Four Seasons project in Jackson Hole that
sold out in less than 10 months." —Clayton Andrews, who is based in Wyoming and
acts as chief operating officer of Sotheby’s International Realty.; function voidFunc() { } voidFunc();)
The
$22.5 million Crescent H Ranch in Jackson Hole. 888.733.9009,
www.siroffices.com (Click image to enlarge)
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