3 Unique Aspects of the Luxury Home Sale
Selling a luxury home is not at all like selling a conventional home. From the length of time it remains on the market to the inspections and appraisals, the process is lengthier and requires an entirely different skill set of your real estate agent.
There are several differences in the process that you should know about if this is the first time you’ve sold a luxury home.
Setting an accurate price for a luxury property may be challenging for real estate agents that don't typically work in the luxury home market.
It can be difficult to find accurate comparable homes, whether the house was custom-built with imported materials, or because of its amenities or location. This is where your choice of agent becomes critical.
The new or part-time agent doesn't have the skills required to properly price the luxury property. These agents also lack the marketing chops required to laser-focus the home's marketing to the right pool of buyers. Finally, many agents lack the large marketing budget required to effectively get the word out about a high-end home for sale.
Most importantly, these agents are often unable to justify the list price to an appraiser that may find placing a value on the home equally challenging.
The agent that markets your home needs to understand that he or she isn't selling a home, but a lifestyle. Then, the agent needs to be aware of what the typical affluent buyer is seeking and be able to target that buyer's hot buttons in the home’s marketing materials. All of this must be done in an elegant, sophisticated and tasteful manner.
The number of buyers in the market for a luxury home is significantly smaller than that of less expensive homes. This is only natural, considering that the number of buyers who can qualify for a loan in the higher price ranges is decidedly smaller than those who are buying less expensive homes.
The process is slow
Sure, some high-end homes sell quickly and for top dollar. If you understand, however, that a quick sale is an anomaly in the luxury home market you won’t be disappointed when the process drags on longer than you hoped it would.
Affluent home buyers typically have the luxury of taking their time when making decisions. They may visit the home several times, bringing in architects and contractors.
When they decide to purchase, there may be extensive negotiations on price and terms. Then, if the buyer isn't paying cash for the home and needs to obtain a mortgage, be prepared for the process to slow even more. While the length of the loan process depends a great deal on the liquidity of the buyer's assets, there are far more hoops for her to jump through when obtaining a jumbo mortgage.
Luxury homebuyers can afford to be choosy and may make some demands that seem outrageous or insulting to you. Remember: although your home may be amazing, it reflects your taste and fits your lifestyle. This may not be the case for the potential buyer, so try to approach all requests unemotionally. This home represents a significant financial asset, so treat the sale of it as a business deal.
Blog Archive2016-09-16 16:23:17
The Home-Buying Wish List
3 Common Home Buying Myths
3 Tips for Attending Open Houses
2 Things to Consider Before Buying a Townhome
4 Tips for Home Buyers with Boats
2 Tips for the Luxury Home Buyer
What is a Buyers Market?
Writing a Strong Offer
3 Important Aspects of the Purchase Agreement
3 Things to Know about Buying New Construction
2 Things to Know about Home Inspections
What to Look for in the HOA Documents
HOA? Beware the Rules and Regulations!
Everything you need to Know about Home Warranties
4 Tips to Close Quickly on a Home Purchase
Your Moving Checklist
Buying your First Home? Avoid these 4 Common Mist
Tips for Buying a Fixer-Upper
First Time Homebuyer: Steps to Success (Step 1)
First Time Homebuyer Steps to Success (Step 2)
First Time Homebuyer Steps to Success (Step 3)
How much can you afford?
The Essential Real Estate Glossary
What is the Earnest Money Deposit
Home Appraisal Basics
Click here to see ALL articles.