Any homeowner or real estate agent can sell a home, but only a few have the experience, know-how, and talent to sell a luxury property. Put simply, the real estate landscape looks a lot different when you’re selling a high-end home. The higher the value, the greater the risk, so you need to be more careful when navigating the selling process.
Every seller wants to unload their property sooner rather than later, in transactions that proceed as smoothly as possible, especially when it comes to luxury properties. As substantial assets worth millions of dollars, these properties tend to appreciate in value over time, which can put them out of reach for most buyers. Therefore, a luxury home needs to attract the kind of buyer who will appreciate the property for its intrinsic and acquired value. The buyer needs to understand what makes the home worth buying. With that in mind, here are the steps for successfully marketing your luxury property.
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Understand the holistic meaning of a luxury property
Just because a property has a price tag that’s upwards of seven digits doesn’t automatically make it a luxury listing. Certain conditions must be met–including size, location, security, and provenance or design, to name a few. As a rule of thumb, luxury properties generally make up the top 10% of sales in the real estate market. Since there is no fixed value that identifies a luxury property, your first order of business as a seller is to know the luxury market price range in your area.
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Understand your target market
Different luxury buyers have different preferences. Some want a home with advanced security systems, others look for the peace and quiet of a remote location, or else proximity to lifestyle hubs. You need to know the types of people who would be willing to purchase your property and what it would take to convince them to make an offer for it.
Key pieces of information you need to gather about buyers most likely to purchase your type of luxury home include:
- The demographics of the average luxury buyer in your area
- The industries they belong to and the kind of jobs that they hold
- Their hobbies and interests
By getting to know your target buyers, you’ll be better equipped to know what they’re looking for and meet their inherent wants and needs in a way that they can’t get anywhere else. It’s an effective marketing strategy.
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Price your property accordingly
You need to price your property correctly from day one. This is especially tricky for luxury properties. The textbook way of going about this is to look at “comps,” which are comparable properties that are similar in size, features, and location to yours. However, luxury homes tend to have fewer comps to reference.
Therefore, you will need the expertise of a real estate professional specializing in luxury properties in your area. They will look at your home and price is based not just on the local market, but on luxury market trends nationally, and perhaps, globally, should there be an interest from foreign buyers.
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Market your home according to its stature
When it comes to attracting the attention of your high-end target market, bring out the big guns. Seek out the marketing channels that you must use to share your luxury property with potential clients, and focus your branding on prestige and exclusivity. Of course, your marketing materials must be high quality, from videos to images, drone photography to using the right tone in your copy. Make sure all look professional and worthy of being presented to people of stature.
While your marketing materials need to make the right impression, they must also come in a package that well-to-do homebuyers will appreciate. Don’t hesitate to work with professional home stagers, photographers, videographers, and marketing specialists to develop the necessary marketing materials for your home. A good agent will have a considerable network of professional contacts to recommend to you.
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Dress the part
In luxury real estate, professionalism counts. If you plan to meet with potential buyers, keep in mind that first impressions matter. You will likely be judged by your appearance just as much as your reputation, communication skills, and know-how. Dressing the part also shows you respect your potential buyer by looking at your best appropriate to the occasion.
Bear in mind that luxury homebuyers often have sharp and savvy agents to represent them. Do likewise by working with a qualified real estate agent who’s not only knowledgeable and professional but who is also familiar with the local market and can employ the best marketing strategies for your needs.
Nina Hatvany and Team Hatvany boast a dedicated team with a solid record in selling luxury homes. In 2017 and 2018, they were the #1 Team in San Francisco for selling more real estate than any other firm in the city. From staging a house for sale to marketing a property online, Team Hatvany is ready to meet your various luxury real estate needs. Contact us at 415.345.3022 or team(at)teamhatvany(dotted)com to discuss marketing your luxury real estate property.