It’s the holy grail of real estate: the luxury home sale. As a Realtor, selling luxury real estate can be a challenge. Too often, agents aren’t fully prepared for the effort, time, and money required to sell a luxury home. But with a little preparation and a lot of tenacity, you can become a stand-out Realtor for luxury homeowners.
1. Educate Yourself and Find a Mentor
If you’re new to the luxury home sales market, it’s time to learn from the masters. Selling luxury real estate isn’t something you can “figure out as you go.” Your sellers will expect nothing but the best, so it’s your job to learn how to make the experience as positive as possible.
To that end, consider finding mentors. Contact real estate agents who regularly sell luxury homes – whether in your target market or another area. Buy them lunch, ask them to share what they’ve learned over time, and ask for their advice if you’re feeling unsure or overwhelmed.
The more you educate yourself and learn from those with more experience, the better you’ll be able to serve your clients effectively.
2. Price Luxury Homes Correctly
Pricing luxury homes can be tricky. Some real estate agents rely on gimmicky pricing tactics to sell luxury real estate. But the quickest and most effective way to sell a luxury home is to price it right from the start – at its true market value.
How can you establish the market value? Often, luxury homes are a bit more complicated to compare. Real estate agents should consider the typical factors like square footage and the number of bedrooms and bathrooms, but they must also take into account the unique features of the home. En-suite spas, indoor movie theaters, and elaborate pool areas all play into the home’s value. Consider everything that makes this home stand apart, then price it accordingly.
The trick is to both make the sellers happy and make buyers feel like they’re getting a bargain.
3. Spend the Big Bucks on Marketing
Extraordinary homes require extraordinary marketing efforts. Now is not the time to cut financial corners. Selling luxury homes requires significant up-front costs, so make sure you’re prepared for the initial investment.
It’s time to pull out all the marketing stops: professional staging, top-notch real estate photography and video tours, ads in publications and online, and a targeted marketing campaign that appeals to your ideal buyer.
4. Use Every Available Technology
Real estate technology is constantly changing. Today, real estate agencies have a wide variety of tools at their disposal. Drones capture aerial photos of the property. Companies offer virtual reality tours, allowing buyers to “visit” homes without ever leaving the living room. Programs turn photos into 3-D floor plans available at the touch of a button. Technology is truly changing the way homeowners buy and sell properties.
Keeping up-to-date on the latest marketing technology is essential for all brokers, but it’s particularly crucial when selling luxury real estate. Understanding technological advancements will make marketing more productive and help more potential buyers access the listing.
5. Sell the Luxury Home Lifestyle
Luxury home buyers are looking for more than a simple home with a nice yard for the kids. They want something special; a home life filled with extravagancies. It’s your job to highlight not only the home’s amenities but also the lifestyle that comes with the property.
You will, of course, mention the large bedrooms, the veranda overlooking the lake, and the full-size tennis court. But you should also sell the surrounding neighborhood and what makes this location so unique. Will the owners have access to an exclusive golf course? Is there a country club down the street? Are the neighbors prominent members of the community? Help potential buyers view themselves living in luxury, not just within the walls of the home, but in status as well.
6. Be Patient
This probably doesn’t come as a shock, but not everyone can afford a luxury home. Therefore, both you and the sellers should exercise patience. According to Bloomberg, a 2017 study found that 72% of the nation’s most expensive homes took more than 180 days to sell. Manage your expectations. The right buyer will come along, but it may take some time.
Selling luxury real estate takes a substantial investment of both time and money. But once the “sold” sign is in the yard, it’s going to be worth every minute of hard work.