The level of difficulty in selling a home increases somewhat when selling a luxury home. With this increased level of difficulty comes an increased level of expertise that is required to sell a luxury home.
Many real estate agents lack the expertise in the area of luxury real estate sales. Many owners of luxury homes lack the knowledge that selling their home requires a "special" real estate agent. It is important that a great plan is in place to ensure the home is sold in a timely fashion and for a fair, market value price!
Here are several tips for selling luxury homes that are helpful for any luxury homeowner...
Pricing Your Luxury Home Right From The Start...
Pricing a home correctly, from the very beginning, is extremely important. Whether selling a $100,000 home or a 1 million dollar luxury home! A common mistake that is made, is hiring the real estate agent who suggests the highest price for your home. This can be a huge mistake! It’s extremely important that a luxury home is priced competitively or aggressively from the beginning to attract buyers from the beginning. Although, it's common for a luxury home to sit on the market for longer than a lower priced home, it does not have to sit on the market for an extended amount of time, if priced properly from the beginning!
To ensure the price is right, an in-depth comparative market analysis, must be completed on the luxury home. It should take an agent several hours to investigate the data, tour other comparable luxury homes currently for sale, and make calls to other real estate brokers who have recently sold comparable properties to the subject home. It is rare to find a luxury home that is identical to another, so knowing every feature a luxury home has is crucial when determining the price!
Selling At The Right Time...
When selling a luxury home, timing plays a larger role than when selling other homes. If a waterfront luxury home is being sold, it’s important to select the correct time of year to sell. Selling a home in the middle of the cold, blustery winter would not be a good time to showcase the waterfront!
Know The Marketing Plan...
There are additional and advanced marketing tools that should be used when selling a luxury home. Ask any real estate agent to show you their plan. If they don't have one, well.....
Print advertising and direct mailings should be a part of any real estate agents basic marketing plan. The way buyers shop for a home has changed dramatically within the last few years. It is extremely important that a real estate agent who is selling a luxury home, knows how to utilize and does utilize the internet. It’s important that a real estate agent has their own website and/or blog and that it is mobile responsive as well. Many home buyers are shopping on their tablets and mobile devices.
When selling a luxury home, it’s important that a real estate agent uses other internet tools as well. I can't share all the tools I use to the public, but I can tell you it's marketing tools that most real estate agents don’t utilize and/or understand. By not marketing a luxury home for sale in the right ways, a real estate agent is doing their client a huge disservice!
When selecting a real estate agent to sell a luxury home, it’s critical to know the plan of action to market the home. How it will be marketed, and how frequently it will be marketed. When selling a luxury home, a real estate agent must have a marketing plan. An agent should not list a luxury home, wait, and hope it sells.
Quality Photography and Video...
With over 90% of buyers beginning their home search online, it’s critical the photographs and videos of a luxury home are outstanding! Quality and quantity are important!
Every real estate agent needs photos of a home, but photos of a luxury home should be more than the everyday photo session with the family camera. When selling a luxury home, the real estate agent should consider having a professional photographer take photos of the home. Top real estate agents who choose to take their own photographs of their luxury home listings must have experience and high end equipment, such as a wide angle lens. It's important to make sure the lighting is right, features are being photographed, and the outstanding location is being highlighted.
A picture may be worth a 1,000 words, how much is a video or virtual tour worth? When selling a luxury home, a video or virtual tour can be the difference of whether or not the luxury home sells. Many luxury homes are much larger than many photos can showcase, so video is a great way to allow potential buyers the ability to “tour” the luxury home in the comfort of their own home.
Holding Open Houses...
Sellers always want to know, are you going to have an open house? There's much debate whether public open houses actually help sell homes. When it comes to luxury homes, probably not. Public open houses at luxury homes usually just bring in people interested in seeing how the “rich and famous” live. There is absolutely no way to determine whether the people coming through the open house are qualified to purchase the home!
However, broker open houses can be helpful. A broker open, an open house for local real estate professionals, allows real estate agents who have buyer prospects looking for luxury homes to view the home. A broker open can be successful if the real estate agents who sell luxury homes locally are able to attend, since they are more likely to have a client for the home!
Showcasing The Location & Lifestyle...
Luxury homes are usually luxurious because of their location and lifestyle. If a luxury home is part of a development which includes a clubhouse or pool privileges, they should be showcased in the listing information. Yet another reason for a video tour as well.
Luxury home buyers will often want to know who else is living in the general vicinity of the home. It is up to the agent to know or find out who else lives in the area and to have this information available to real estate agents who are showing the home.
Staging The Home...
When selling a luxury home, staging will help maximize price and minimize time on the market. When staging a luxury home, it is important that the amenities which make the home luxurious are being showcased. If the home has a pool, stage the area for a gathering and or pool party. If you have a luxurious dining room, stage the table with a nice modern table setting.
Having Patience Is Key...
Selling a luxury home, sometimes takes patience! Selling a luxury home will normally take longer than a non-luxury home.
One major reason that selling a luxury home takes longer to sell is due to the number of possible buyers available to purchase the home. There are more buyers who can afford a $150,000 home entering the market on a daily basis, than a 1 million dollar home. For this reason alone, it’s important to be patient and know that if the above tips are being practiced, a buyer will come.
For example, in Tippecanoe county (Indiana) there have been a total of 17 sold properties in the $500,000+ price range in the past 12 months versus 1978 sold properties in the $100,000 - $499,000 price range in the past 12 months. The average days on the market for the $500,000+ homes was 112 and the average days on the market for the $100,000 - $499,999 homes was 39.
In Howard county (Indiana) there was 1 sold property in the $500,000+ price range in the past 12 months versus 660 sold properties in the $100,000 - $499,999 price range in the past 12 months. No average days on market for the $500,000+ range, since only one. Average days on the market for the $100,000 - $499,999 homes was 56.
As the statistics prove, in the luxury home market there are less buyers in the marketplace than there are in the non-luxury home market.
Selling a luxury home presents a different level of difficulty and expertise than the non-luxury home market. It doesn’t have to be difficult. Consider my tips when selling a luxury home. With the right real estate professional, the process can be smooth and less stressful!
This article provided by Gena Martin Realtor, owner of GMR Realty. If you’re thinking of selling or buying, I'd love to share my knowledge and expertise. We service the entire central Indiana area!
Call Gena: 765-210-5582
Email Gena: firstname.lastname@example.org