Given the value of luxury homes, it's only natural that luxury homeowners and real estate agents are interested in selling these properties in any market. However, the world of luxury real estate is unique in that it doesn't follow the standardized formula that many real estate agents are accustomed to. When selling multi-million dollar properties, there are no repetitive sales systems or one-size-fits-all strategies that apply.
Why wouldn't you? First, luxury property buyers are different from buyers who purchase more affordable homes. Plus, one of the secrets to selling a luxury home is crafting the right story that connects with potential buyers.
Here are some actionable tips to sell your luxury home in any market.
What is Luxury Housing?
Before we get into how to sell a luxury property in any market, we need to define what a luxury home is. Keep in mind that this definition may vary by region. However, in general, a luxury property refers to a home that is above grade for the current market. Luxury properties typically feature high-end finishes, appealing architectural designs, and more floor space than most of the properties around them.
Luxury properties often have unique views and special amenities such as spacious outdoor living spaces, chef's kitchens, wine cellars, sports courts, theaters, etc. Luxury real estate is usually an exclusive property with highly desirable amenities such as a location in a private community or a townhome on a private floor.
Who is a luxury home buyer?
Luxury home buyers may be experienced real estate buyers, but are most often affluent people motivated by desire rather than need: they want a connection with the property, either as a current state or as a framework for achieving a particular lifestyle.
Luxury home buyers want a property that functions seamlessly with every aspect of their life from morning until night, taking into account rest and relaxation, work, parenting and entertainment.
Creating a story
Asking sellers the right questions and listening carefully to their answers will help you craft the right story to sell your property. It's important to understand the psychological connection luxury homeowners have to the place they live in. Why does their home shape their life the way it does? What do they love about their property? Strive to uncover the small details as you delve into the homeowners' relationship with their home and why luxury home buyers would pay to achieve the same goal.
Once you've identified your story and considered how to communicate it to potential buyers, it's time to market the home in a way that specifically targets the people who are a perfect fit for the property. Consider a cinematic video that shows people interacting with the home as they would in real life, such as waking up in the bedroom and walking out to the deck to enjoy the morning view. Or maybe scenes showing the homeowners entertaining guests poolside or in their private vineyard.
Create a script and storyboard based on your discovery question and answer sessions with the seller Incorporate current lifestyle and design trends and consider ways to show buyers what it will be like living in the property without them ever stepping foot in the home Today, video is one of the most effective ways to instantly connect consumers with your product.
Pricing Luxury Real Estate
Pricing for luxury real estate is extremely important: Because a smaller percentage of luxury homes are on the market than average priced properties, luxury home buyers and their agents are more likely to remember all the homes they've seen before, making it easier to spot price drops.
Additionally, luxury home brokers need to have a clear understanding of location differences when selecting comparable properties – for example, they need to have a detailed understanding of why one neighborhood or street is more desirable than another – and take into account unique factors that affect the value of luxury homes, such as views, limited access, and privacy.
What your luxury home sales strategy should include
What does a good strategy for selling a luxury home look like? Among other tactics, you need:
Build a buyer persona. Get a good understanding of what luxury home buyers want. Interview the seller. Ask questions to determine why the home is desirable. Draft a story. Create a storyboard, complete with a model profile. Take the perfect photos. Find a photographer who is a great visual storyteller. Shoot a cinematic video. Show buyers what the luxury lifestyle is like in that home. Host an event. Showcase luxury homes through broker and client parties.
Looking for marketing tips to sell more homes? Check out the Be Better blog to learn how you can use wellness and a healthy lifestyle to attract luxury home buyers and get ideas for other tactics to sell your clients' homes.