Luxury real estate is a very different product than the standard suburban home. Each home is treated like a product often because these homes are so customized. Let’s learn more about how luxury real estate differs from buying or selling the average home.
Prices Matter, Though They’re Higher
Pricing the home correctly is essential to selling it. That’s true whether you’re dealing with luxury real estate or moderate homes. The price tag, though, tends to be much higher. The challenge is pricing the home appropriately, since there are fewer price points to compare each home to.
Furthermore, the renovations that a homebuyer may make are unlikely to yield the 70 to 90 percent ROI you get with a new garage door or paint job. This means that San Antonio luxury realtors must price the property at what will help it sell instead of the inflated numbers many luxury home sellers believe that they can get.
Home sellers might get more than the list price—the best strategy here is to generate interest in the property and start a bidding war.
The Marketing Is Closer to Rodeo Drive than Mass Market Real Estate
Luxury homes are luxury products. You’re spending a million dollars or more on the property. How do you sell it?
- Post pictures that make someone fall in love with it.
- Showcase the view from the deck
- Show off the amenities and details unique to the home, whether it is an indoor swimming pool or chef grade kitchen next to a massive entertaining space.
This matters far more to luxury home buyers than the number of bedrooms and bathrooms in the property.
Posting a few pictures with the basic MLS information isn’t good enough. You must provide multiple high-resolution images of every room in the property. Better yet, provide virtual 360-degree tours. You’ll get points with prospective buyers if they can virtually walk around both the inside and outside of the home and see for themselves that amazing view. On the flipside, showing homes in real estate television shows is rarely successful. By the time the episode airs, a good luxury real estate agent would have sold it.
Direct Personal Contact Is Key to Conversions
Luxury homebuyers earn an average of several hundred thousand dollars a year. Some are in middle and upper management while others are high earning professionals like doctors and dentists. Many even own their own business. They are much more likely to respond favorably to personalized emails showing properties in the neighborhoods they want to live in than generic lists of homes scattered across the area. You’ll get extra points with potential buyers when you give them advanced notice of when premium properties are going to come to market.
Make the Open House an Event
Open houses for luxury homes should be closer to a cocktail party than anything else. Provide fruit and gourmet food, not cookies and crackers. You might give visitors a glass of wine and encourage them to explore the home. Ideally, you should send personalized invitations to prospective buyers instead of posting a sign on the yard. Demonstrate what it is like to entertain in that massive living room and deck.