Strategies to Sell Luxury Real Estate Properties
The onset of various selling channels, digitization, and access to investors has resulted in a boom in the luxury real estate market in the past decade. Selling luxury real estate can be highly profitable, especially for people who know how to navigate the market. While selling any home may not be an easy task, the level of difficulty increases when it comes to luxury homes.
One of the important strategies to sell a luxury home is pricing it correctly to attract the right pool of buyers from the beginning. If not priced right, a luxury property can sit on the market for an extended period of time. To arrive at a competitive price for a luxury property, a real estate agent must perform in-depth comparative market analysis by gathering data, touring comparable luxury homes currently for sale, and probing other real estate brokers who managed to sell similar properties recently.
The real estate market undergoes periods of high and low activity. Therefore, timing plays an important role in selling a luxury real estate property. Proper timing means putting a property on the market to secure the most showings, land the most offers, and get at least as much as the appraised value, if not more.
Effective marketing is crucial to selling luxury homes. While print advertising and direct mailing should still be part of the real estate agent’s marketing plan, they should focus primarily on the Internet. Real estate agents should have a website and use social media for maximum exposure. Furthermore, they should evaluate which social media sites have the highest percentage of success in selling luxury properties.
Using quality photographs, videos, and virtual tours is also important to attract target buyers of luxury homes. Almost 90 percent of buyers start their search online when buying luxury homes. Therefore, it is important to use professionally taken photographs showing a luxury home’s selling points, such as smart appliances, spacious living areas, swimming pools, and other high-end furnishings. Videos and virtual tours can also make a difference in whether a luxury home sells. They allow potential buyers to view the property in great detail. Virtual tours are especially effective, as buyers have complete control over their exploration of the property.
Portrayal is an essential element in selling luxury homes. Luxury homes are sought after because of the location and the type of lifestyle that they promise to prospective buyers. If the luxury home is part of a major development already building a clubhouse and will offer other exclusive privileges, the real estate agents should include the details in the listing information. Buyers of luxury homes are also interested in knowing about the other people living in the vicinity.
There is a debate about whether public open houses are helpful when selling luxury homes. On the one hand, public open houses attract the interests of the majority. On the other, it is difficult to determine whether the people coming to the open houses are qualified to purchase the luxury homes or are just curious. A strategic way to host open houses for the target market is through broker open houses. A broker open house invites other real estate professionals who may have buyer prospects looking for luxury homes.