What It Takes To Sell A Luxury Home
What It Takes To Sell A Luxury Home
You have to attract the right buyer, know how to make the buyer understand what makes the home worth the money, and be able to negotiate effectively when selling some of the highest-priced homes available. Having the right list price and the best real estate agent are two vital cogs in the sale of a luxury home.
Keep reading, and you will see how to sell a luxury home in the least amount of time for the most money possible. These luxury home selling tips will allow you to maximize both with less stress!
Create a Psychological profile of the buyer.
Price it correctly.
Luxury homes add another layer of difficulty when it comes to pricing. There are less comparable homes to reference, and each luxury home tends to have unique features that only some buyers will value. A luxury home tends to have unique features that tend to make it harder to price.
Some inexperienced agents will try to use rudimentary ways to price the home like using price per square foot. This is a sure fire way to get a luxury homes price wrong! There are significantly more challenges to pricing a luxury home. The price, however, needs to be spot on if you want to get top dollar. Price a home too high, and it will sit on the market for months without selling. Eventually, it will develop a stigma – buyers will assume there is something wrong with it.
This is especially true with luxury homes, because with such a smaller supply, buyers and their agents are unlikely to forget about the home. They will recognize it, even if it pops up a year later at a lower price.
Pricing the home correctly is one of the biggest reasons to hire an agent familiar with luxury properties. The agent should understand the difference that location plays in the comparable sales data and how one neighborhood differs from the next. The neighborhood in which a property is located can have a huge influence on value.
A skilled luxury real estate agent understands the factors which influence home values. Great agents know that comparable sold properties are vital to establishing true market value. They don’t waste a lot of time looking at homes sitting on the market that have not sold. Knowing how to sell a luxury home starts with accurate pricing.
In the last months of winter the cold wind, oppressive rain, and constant cloud cover will tend to obscure the many benefits of owning the home. Obviously selling such a home would be easier in better weather, and the home would most likely fetch a higher price if buyers see it in the best possible light. A great luxury home selling tip is to take advantage of the optimal season in your specific location.
Here in Vancouver, where I am located it would not make sense to list a luxury home in the dead of winter unless your financial situation dictates it. With a luxury property, you want to take advantage of the best selling season where there are more buyers in the market looking for luxury real estate. Without a doubt, the best time of the year to take advantage of selling a luxury home is the spring.
In the spring buyers can get a complete understanding of the grounds which is often a big selling feature in luxury homes. There are going to be things that you can’t appreciate in the winter such as a luxury swimming pool, tennis court, magnificent landscape and possibly many other features that can get obscured by snow.
If you are selling a luxury waterfront property this is certainly the case.
Effective marketing online marketing.
In addition to pricing a home, a reputable Realtor will have a number of marketing options for your luxury home. The first will be online, but the most pervasive will often be the network he or she has with other Realtors, past clients and other people involved in high-end real estate.
Top real estate agents understand the best marketing tips for selling a home and they take advantage of them all. Exceptional agents leave no stone uncovered when selling a high-end home. The real estate agent you select to sell your luxury home should have a dominant internet presence.
A highly visible real estate agent will be knowledgeable in both search engine optimization (SEO) along with terrific social media skills. Let’s face it more and more people spend a ton of time on their smart phones. Everyone has their favorite social network they regularly use. Social media real estate marketing is just another way of going outside the box in getting a high-end home sold. Whether it is marketing on Facebook or Pinterest – people love looking at luxury properties. Real Estate agents should be well versed in marketing to affluent clients.
Using high-end photography and video.
Luxury homes deserve exceptional professional photography. This is one of the most important aspects of selling a luxury home. When someone asks how do you sell a luxury home, photography will be at the top of the list! Here are some excellent photography tips specifically for real estate.
Video is becoming as important as photos when selling real estate today – especially when you are selling a luxury home. Buyers may be coming from across the country to view your home. Even if they are coming from next door, a video tour can give them a good idea of what living in the home would be like, and convey what makes your home special. Filming a quality video tour may cost a little bit of money, but it can be considered an investment. The better the video looks, the more likely you are to attract the right kind of buyer.
You should not even consider hiring a real estate agent who does not provide a high-end video tour when selling luxury real estate. Pay attention to not only the quality of this video but how many people looked at it online.
Would you agree this video marketing does an awesome job of capturing all the best features of this luxury home? A video is a great way to get introduced to a property before you ever set foot in the door. Look for someone that can do an excellent job with their voice that captures the essence of all the best features of your home.
Effective offline marketing.
The marketing material should tell a story both about the home as well as the city or town the property is located in. Selling such things as the neighborhood or outstanding education are all part of the puzzle.
Often you are selling a lifestyle and this should be conveyed in the marketing material. Keep in mind that many luxury home buyers look for well know luxury brands. This should be reflected in your marketing.
For example in the kitchen, high-end appliances include a Sub-Zero fridge, a Wolfe or Viking stove, a Thermador oven, a Miele or Bosch dishwasher. Luxury buyers look for these brands. When marketing the home these things should be emphasized. The kitchen is the most important room in the house so extra time should be spent featuring it.
Avoiding open houses.
Plenty of people will show up that do not have the financial ability to buy your home. Even those that do have the money may not be interested in buying, they may come over just to compare, to see how you live or just for something to do. People often ask if open houses work to sell homes. The answer is they are completely unnecessary to sell a home in the digital age.
The benefit of an open house goes to the real estate agent who is using this time as a prospecting opportunity for both potential sellers in the neighborhood, along with buyers who can’t afford your home. Keep in mind with a luxury home there is going to be a high level of curiosity. This is going to bring through the door plenty of people who don’t belong.
More worrisome is the criminal element that can be attracted to open houses. It is hard to keep track of everyone coming in and out of the house, which allows unsavory individuals to take things that are not theirs. Even worse, they may not take anything from the open house. Instead, they may use the open house to unlock doors or windows so they can access the home later, and take as much as they like.
Open houses are a breeding ground for criminals to enter your home and take what they want, especially when selling a high end home. Skip the open house and you won’t miss a beat. Be very leery of an agent who pushes for an open house.
Traits of Luxury Home Real Estate Agents
- Very effective communicators.
- Extremely detailed oriented.
- Understand the local market inside and out. This includes all local attractions.
- Well versed in pricing homes correctly.
- Expert marketers.
- Have a good sphere of influence.
- Skilled in problem-solving.
- Extravagant home theaters.
- Incredible wine cellars.
- An indoor pool.
- An intricate security system.
- Surveillance cameras.
- A central music service.
- Energy monitoring.
- Thermostatic control.
- Window covering controls.
- Complete “smart home” capability.
When you are aiming for the best possible price, you need to have an agent that understands luxury and knows how to sell it to potential buyers. Keep these things in mind when choosing your real estate agent.
Each of these nine tips should be considered when selling a high-end home.
***Do you have a luxury home to sell in another city besides Vancouver and want to work with an exceptional Realtor who works with luxury home sales? Reach out to me and I will be happy to refer you to an outstanding real estate agent in your area who does a lot of work with high-end properties.
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