We are here today with Michael Banovac, managing partner at RMB Luxury Real Estate in Poenix AZ. In 2015 Michael was the youngest agent to close a residential real estate deal over $2,950,000 but his experience expands beyond the sales of real estate. From 2012-2015 he and his partners acquired, built, remodeled, and/or sold close to 100 homes with a value in excess of $40,000,000.
Q: Michael, can you give me a brief history on your background in building and remodeling homes?
A: My partners and I started remodeling homes actively in 2011 in the form of high volume fix and flips in Phoenix, Scottsdale, Anthem, Glendale, Peoria, and Mesa. In 2014 as property prices began to come back from pre recession lows, the ability to acquire homes with healthy profit margins became more difficult to find with regularity. So, we began to transition. We saw a huge pent up demand for new transitional and modern homes. My company then jumped into building luxury homes on spec as well as build-to-suits in some of the most luxurious areas of Paradise Valley, North Scottsdale, and Phoenix. Fortunately, the care and attention to detail we put into every one of our properties has been well received. This is evident in many of our homes commanding record sales prices.
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Q: What led you to the real estate industry?
A: Both my mother and father have been in the real estate industry for many years. My father has been developing houses and apartments since 1969 and my mother has bought and sold several noteworthy homes in Southern California over the past 15 years. Growing up around deal making certainly gave me a zest for learning and a desire to create. At a very young age, I was in business meetings with my father and design consultations with my mother. The proximity of their influence helped me naturally gravitate into the industry.
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Q: What has been the key element to your success?
A: Failure… I am firm believer that failure is the necessary pit stop to success. Being able to internalize failure in many forms and continue to battle on a daily basis is the bedrock of my success. I was fortunate having my family, especially my mother and father. They give me the tools and opportunities necessary to realize the importance of humility and the tenacity necessary to succeed.
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Q: What price point defines a luxury home in Arizona?
A: In the broadest sense, luxury connotes quality, refinement, and exclusivity. As far as luxury single family homes go anything over $2,000,000 in places like Paradise Valley, North Scottsdale, the Biltmore Corridor, and Arcadia are considered luxury homes in Arizona. However, if we are talking condominiums or others residential structures, it is best to look at highest prices per square foot. For the most part, the areas mentioned above command the highest prices per square foot in the valley also adding to their appeal and status.
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Q: What are the top three questions your clients ask while showing a property?
A: What do I think I can get this home for? How are the schools in the area? Where do you see the property values in this neighborhood going in the future?
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Q: What is the most common problem you see your clients have in selecting a property?
A: Many clients wait way too long to act and are indecisive. I cannot stress this to clients enough, if you like a home do not wait to write an offer on it. I have been in a few situations where clients like a home but they hold out for something better. Then after a week or two they are ready to pull the trigger and the property is already in escrow with another buyer.
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Q: What should someone in the market for a luxury property look for in a real estate agent?
A: Someone in the market looking for a luxury property should look for an agent that is extremely knowledgeable with the client’s designated search area and have the rolodex necessary to facilitate to smoothest possible transaction. I always tell my clients a great agent deserves every penny of their commission. Because you are not paying an agent to simply right up some paperwork, you are paying an agent for their knowledge, their expertise, and their ability to navigate calmly to the finish line of a transaction with as few roadblocks as possible.
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Michael BanovacÂ
Michael’s expertise encompasses Real Estate, Marketing, and Internet Entrepreneurship. From 2012-2015 he and his partners acquired, built, remodeled, and/or sold close to 100 homes with a value in excess of $40,000,000. In 2015, he was the youngest primary listing agent in the State of Arizona to have successfully closed a residential property for over $2,950,000. In 2007, Michael was awarded the President’s Volunteer Service Award from President George W. Bush for his contributions to Helping Hands Housing Services, an Arizona based non-profit.Michael has been featured in a variety of local and national media outlets including: CNN, Yahoo Finance, and The Street.
You can read more about Michael Banovac at rmbluxury.com
Luxury homes by RMB
