Ky Select John Stough Interview
Today’s “Luxury Louisville Homes” podcast, released over at www.LouisvilleReaEstate.fm, taps the knowledge and experience of John Stough, a native Louisvillian and Principal Broker of Kentucky Select Properties with more than 36 years of experience. Since graduating from Hampden Sydney College in 1977, John has served as the Vice President of the Greater Louisville Board of Realtors, as well as a Director and Chairman of the Professional Standards Committee. He has also spent time as a Board Member for the Board of Regents in Seattle, an exclusive network of the world’s most elite luxury real estate professionals. His specialties include relocation, corporate moves, finding properties with distinctive architecture, and high-end transactions.
For John Stough, his local ties and keen interest in architecture – particularly the more historic neighborhoods around the city – led him to pursue high-end luxury sales in the $1.5 Million – $2 Million range. When he first started in real estate more than 30 years ago, the “luxury market” was more in the $250,000 range, which goes to show just how dramatically prices have increased over the years.
Realtors who are interested in getting into this market will find that it takes a great deal of research, networking and trust. Typically, sellers seek lots of counsel from attorneys, estate planners, bankers, trust advisers and tax accountants, so the discussion moves beyond the owner or heirs and includes frequent contact with these other third parties. Often, there is much research and background work that goes into the sale for a year or even two years before contracts are signed and money flows to John. “There is a tremendous degree of trust involved,” he says.
In this market, many sellers are more concerned with maintaining the integrity of the property for future generations, keeping the estate in the family somehow, or have an emotional attachment to the home in some way that stretches out the sale of a unique luxury estate, compared to your typical $200,000 home. Leads may come from referrals, well-known buyers, people he’s already formed relationships with, or competitions with other brokers to win a particular deal.
As we touched upon in a previous podcast, pricing homes can be a challenge in a market where each home is totally unique. John Stough says he often uncovers research the sellers were totally unaware of. For instance, he recently found out that a Glenview property featured a garden designed by world-famous NY landscape architect Bryant Fleming, which added significantly to the value of the property. He usually takes a gut impression of a property’s worth and crosschecks it with the family’s appraiser’s perspective in a “spirited exchange.” Often, pricing is reached through a collective, collaborative process between various parties and the sellers, but ultimately it comes down to what a buyer’s willing to pay.
If you’re hungry for more of John’s vast knowledge on luxury home market representation, you can tune in to hear:
• What it’s like to work with buyers in the high-end luxury homes market.
• What motivates luxury buyers to make their larger purchases.
• How the recession affected the market.
• How high-ticket homes are financed today.
• Which foreign countries are most interested in using U.S. real estate as a safe haven for their investments.