Luxury Real Estate in 2024: Bess Freedman Shares Her Expertise and Expectations

Introduction: Meet Bess Freedman, the CEO of Brown Harris Stevens

If you are interested in the luxury real estate market, you have probably heard of Bess Freedman. She is the CEO of Brown Harris Stevens, the oldest and most prestigious private real estate company in the United States. With nearly 150 years of history and a reputation for excellence, Brown Harris Stevens is the leader in the luxury niche, setting numerous price records and serving the most discerning clients.

Bess Freedman is not only a real estate leader, but also a champion of social change, philanthropy, and building a culture-first brokerage for agents, staff, and clients. She has been recognized as one of the most powerful women in U.S. real estate by Swanepoel 200, a top trailblazer by RIS Media, and a humanitarian award recipient by the Real Estate Board of New York. She is also a former lawyer, a mother of three, and a passionate advocate for women’s rights and reproductive health.

In this article, Bess Freedman shares her expertise and expectations for the luxury real estate market in 2024. She reveals the trends, challenges, and opportunities that shape the market, and offers practical advice, tips, and solutions for buyers and sellers who want to succeed in the luxury segment. She also gives her predictions and recommendations for the future of luxury real estate, and how to prepare for it.

Whether you are looking to buy or sell a luxury property, or simply want to learn from one of the best in the industry, this article is for you. Read on to discover the insights and wisdom of Bess Freedman, the CEO of Brown Harris Stevens.

The State of Luxury Real Estate in 2024: How the Market Has Changed and What to Expect

The luxury real estate market is always evolving, influenced by various factors such as the economy, the environment, the technology, and the preferences of the buyers and sellers. In 2024, the market has changed significantly from the previous years, reflecting the impact of the COVID-19 pandemic, the climate change, the digital transformation, and the generational shift.

According to Bess Freedman, the luxury real estate market in 2024 is characterized by the following trends:

• Increased demand and limited supply: The demand for luxury properties has surged in 2024, as more people seek comfort, security, and quality of life in the aftermath of the pandemic. However, the supply of luxury properties has not kept up with the demand, creating a competitive and seller-friendly market. Bess Freedman says that “the luxury market is hotter than ever, with multiple offers, bidding wars, and record-breaking prices. Buyers have to act fast and be prepared to pay a premium for the best properties.”
• Diversification and decentralization: The luxury market is no longer dominated by a few traditional hotspots, such as New York, London, or Paris. Instead, the market has diversified and decentralized, as more buyers explore new and emerging destinations, such as Dubai, Singapore, or Miami. Bess Freedman explains that “the pandemic has changed the way people live and work, allowing them to choose where they want to be, regardless of their location. Buyers are looking for new opportunities, experiences, and lifestyles in different markets, especially those that offer favorable tax, legal, and environmental conditions.”
• Customization and personalization: The luxury market is driven by the individual needs and preferences of the buyers, who want to customize and personalize their properties to suit their taste, style, and lifestyle. Bess Freedman notes that “buyers are not looking for cookie-cutter or generic properties, but rather for unique and distinctive properties that reflect their personality and values. Buyers are willing to invest in renovations, upgrades, and amenities that make their properties stand out and enhance their quality of life.”
• Sustainability and wellness: The luxury market is influenced by the growing awareness and concern for the environment and the health of the buyers and the planet. Bess Freedman observes that “buyers are looking for properties that are eco-friendly, energy-efficient, and resilient, that minimize their environmental impact and maximize their well-being. Buyers are also looking for properties that offer wellness features, such as natural light, fresh air, green spaces, and fitness facilities, that promote their physical and mental health.”

The Challenges and Opportunities for Buyers and Sellers in the Luxury Segment

The luxury real estate market in 2024 offers both challenges and opportunities for buyers and sellers, depending on their goals, expectations, and strategies. Bess Freedman shares some of the common challenges and opportunities that buyers and sellers face in the luxury segment, and how to overcome or leverage them.

For Buyers

• Challenge: Finding the right property in a competitive and scarce market. Bess Freedman says that “buyers have to be proactive, flexible, and decisive in their search for the perfect property. They have to be ready to act quickly, make strong offers, and negotiate effectively, as they may face multiple competitors and limited inventory.”
• Opportunity: Accessing new and diverse markets with potential for growth and appreciation. Bess Freedman says that “buyers have the opportunity to explore new and emerging markets that offer attractive prices, returns, and lifestyles. They can also take advantage of the low interest rates, the favorable exchange rates, and the incentives offered by some governments and developers to attract foreign buyers.”
• Challenge: Financing the purchase of a luxury property in a complex and uncertain market. Bess Freedman says that “buyers have to be prepared to deal with the challenges of financing a luxury property, such as the higher down payment, the stricter lending criteria, the longer approval process, and the higher closing costs. They also have to be aware of the risks and costs of owning a luxury property, such as the taxes, the maintenance, the insurance, and the security.”
• Opportunity: Benefiting from the expertise and network of a professional and reputable agent. Bess Freedman says that “buyers have the opportunity to work with a qualified and experienced agent who can guide them through the entire process of buying a luxury property, from finding the right property, to negotiating the best deal, to closing the transaction smoothly and successfully. An agent can also provide access to exclusive and off-market properties, as well as referrals to other professionals, such as lawyers, accountants, appraisers, and inspectors, who can assist with the purchase.”

  

For Sellers

• Challenge: Pricing the property correctly in a dynamic and unpredictable market. Bess Freedman says that “sellers have to be realistic, objective, and data-driven in pricing their property, as they may face fluctuations in the market conditions, the buyer demand, and the competition. They have to avoid overpricing or underpricing their property, as both can have negative consequences, such as losing potential buyers, leaving money on the table, or prolonging the time on the market.”
• Opportunity: Showcasing the property effectively in a digital and visual market. Bess Freedman says that “sellers have the opportunity to present their property in the best possible light, using the latest technology and marketing tools, such as professional photography, videography, virtual tours, drone footage, and social media. Sellers can also highlight the unique and distinctive features and benefits of their property, such as the location, the view, the design, the amenities, and the history, that make it appealing and valuable to the buyers.”
• Challenge: Preparing the property for sale in a demanding and discerning market. Bess Freedman says that “sellers have to be ready to invest time, money, and effort in preparing their property for sale, as they may face high expectations and standards from the buyers. They have to ensure that their property is clean, decluttered, staged, repaired, and updated, to create a positive and lasting impression on the buyers.”
• Opportunity: Leveraging the expertise and network of a professional and reputable agent. Bess Freedman says that “sellers have the opportunity to work with a qualified and experienced agent who can advise them on the best strategies and tactics for selling their property, from pricing it correctly, to marketing it effectively, to negotiating the best deal, to closing the transaction smoothly and successfully. An agent can also provide access to a large and qualified pool of buyers, as well as referrals to other professionals, such as lawyers, accountants, appraisers, and inspectors, who can assist with the sale.”

The Best Practices and Strategies for Navigating the Luxury Real Estate Market

The luxury real estate market in 2024 is not for the faint of heart, as it requires knowledge, skill, and savvy to navigate it successfully. Bess Freedman shares some of the best practices and strategies that buyers and sellers can use to achieve their goals and objectives in the luxury segment.

For Buyers

• Do your homework: Before you start your search, do your research on the market, the properties, and the agents. Learn about the trends, the prices, the availability, and the competition in the markets that interest you. Compare and contrast the features, benefits, and drawbacks of the properties that match your criteria. Find and contact a reputable and experienced agent who specializes in the luxury niche and has access to the best properties and deals.
• Be flexible and open-minded: In a competitive and scarce market, you may not find the perfect property that meets all your expectations and requirements. Be flexible and open-minded in your search, and be willing to compromise on some aspects, such as the size, the location, or the condition of the property. You may also want to consider alternative or unconventional options, such as co-ops, condos, townhouses, or new developments, that may offer more value, convenience, or potential than traditional single-family homes.
• Be prepared and decisive: In a fast and dynamic market, you have to be ready to act quickly and decisively when you find the right property. Have your finances in order, and obtain a pre-approval letter from your lender, a proof of funds from your bank, and a personal or professional reference letter from your agent. Make a strong and realistic offer, and be prepared to negotiate and close the deal as soon as possible. Don’t hesitate or delay, as you may lose the opportunity to another buyer.

For Sellers

• Be realistic and objective: In a fluctuating and unpredictable market, you have to be realistic and objective in pricing your property, as you may face changes in the market conditions, the buyer demand, and the competition. Avoid overpricing or underpricing your property, as both can have negative consequences, such as losing potential buyers, leaving money on the table, or prolonging the time on the market. Use data and facts, such as comparable sales, market analysis, and appraisal reports, to determine the fair market value of your property, and adjust your price accordingly.
• Be proactive and creative: In a demanding and discerning market, you have to be proactive and creative in marketing your property, as you may face high expectations and standards from the buyers. Use the latest technology and marketing tools, such as professional photography, videography, virtual tours, drone footage, and social media, to showcase your property in the best possible light. Highlight the unique and distinctive features and benefits of your property, such as the location, the view, the design, the amenities, and the history, that make it appealing and valuable to the buyers. You may also want to consider offering incentives or concessions, such as paying for closing costs, repairs, or upgrades, to attract more buyers and close the deal faster.
• Be responsive and cooperative: In a complex and lengthy market, you have to be responsive and cooperative in selling your property, as you may face challenges and obstacles in the process. Be ready to answer questions, provide information, and show your property to potential buyers and their agents. Be flexible and accommodating in your terms, such as the closing date, the contingencies, or the inspections. Be willing to work with your agent, your lawyer, your appraiser, and your inspector, to ensure a smooth and successful transaction.

The Future of Luxury Real Estate: Bess Freedman’s Predictions and Recommendations

The luxury real estate market in 2024 is not the end of the story, but rather the beginning of a new chapter. Bess Freedman shares her predictions and recommendations for the future of luxury real estate, and how buyers and sellers can prepare for it.

Predictions

• The luxury market will continue to grow and diversify: Bess Freedman predicts that the luxury market will continue to grow and diversify in the coming years, as more people seek comfort, security, and quality of life in the post-pandemic era. She expects that the demand for luxury properties will remain high, especially in the markets that offer favorable tax, legal, and environmental conditions, such as Florida, Texas, Nevada, or Dubai. She also anticipates that the supply of luxury properties will increase, as more developers and investors enter the luxury niche, and more sellers decide to cash in on their equity and move to other markets or lifestyles.
• The luxury market will be influenced by technology and innovation: Bess Freedman predicts that the luxury market will be influenced by technology and innovation in the coming years, as more buyers and sellers embrace the digital transformation and the technological advancements in the real estate industry. She expects that the use of technology and innovation will enhance the efficiency, convenience, and transparency of the buying and selling process, such as the use of artificial intelligence, blockchain, smart contracts, or virtual reality. She also foresees that the use of technology and innovation will improve the functionality, sustainability, and wellness of the luxury properties, such as the use of smart home systems, renewable energy sources, biophilic design, or wellness amenities.
• The luxury market will be driven by the next generation of buyers and sellers: Bess Freedman predicts that the luxury market will be driven by the next generation of buyers and sellers in the coming years, as more millennials and Gen Z enter the luxury segment and shape the market according to their needs, preferences, and values. She expects that the next generation of buyers and sellers will have different expectations and demands from the previous generations, such as the desire for more space, privacy, and flexibility, the preference for more urban, diverse, and inclusive communities, and the concern for more social, environmental, and ethical issues.

Recommendations

• Stay informed and educated: Bess Freedman recommends that buyers and sellers stay informed and educated about the luxury market, as it is constantly changing and evolving. She advises that buyers and sellers keep up with the latest news, trends, data, and analysis on the luxury market, and consult with experts and professionals who can provide insights and guidance on the market. She also suggests that buyers and sellers attend events, webinars, podcasts, or courses that can enhance their knowledge and skills on the luxury market.
• Stay connected and engaged: Bess Freedman recommends that buyers and sellers stay connected and engaged with the luxury market, as it is a network of relationships and opportunities. She advises that buyers and sellers build and maintain a strong and diverse network of contacts and connections in the luxury market, such as agents, brokers, developers, investors, lawyers, accountants, appraisers, inspectors, and media. She also encourages that buyers and sellers participate and contribute to the luxury market, such as joining associations, clubs, groups, or forums that can offer support, advice, or referrals on the market.
• Stay adaptable and resilient: Bess Freedman recommends that buyers and sellers stay adaptable and resilient in the luxury market, as it is a challenging and uncertain environment. She advises that buyers and sellers be flexible and open-minded in their approach and strategy in the luxury market, and be willing to adjust and adapt to the changing market conditions, the buyer demand, and the competition. She also urges that buyers and sellers be confident and optimistic in their outlook and attitude in the luxury market, and be prepared to overcome and learn from the difficulties and setbacks that they may encounter.

Conclusion: Key Takeaways and Action Steps

The luxury real estate market in 2024 is a fascinating and rewarding market, but also a complex and competitive one. Bess Freedman has shared her expertise and expectations for the market, and offered some valuable insights and tips for buyers and sellers who want to succeed in the luxury segment. Here are some key takeaways and action steps from this article:

• The luxury market in 2024 is characterized by increased demand and limited supply, diversification and decentralization, customization and personalization, and sustainability and wellness.
• The luxury market in 2024 offers both challenges and opportunities for buyers and sellers, depending on their goals, expectations, and strategies.
• The luxury market in 2024 requires knowledge, skill, and savvy to navigate it successfully, and buyers and sellers can use some best practices and strategies to achieve their objectives.
• The luxury market in 2024 is not the end of the story, but rather the beginning of a new chapter, and buyers and sellers can prepare for the future of luxury real estate by staying informed, connected, and adaptable.