Do you dream of someday selling the most expensive, the most exclusive, the most luxurious residential properties? If yes, prepare, prepare and prepare some more to make your wish come true.
Know going in to the luxury real estate market that every property has “issues.” Know too that luxury properties, just like more moderately priced properties, do not sell themselves…they must be sold.
First and foremost, know what a luxury property is price-wise in your market area and know common elements usually associated with luxury properties. In terms of pricing, the Institute for Luxury Home Marketing tells us that luxury property prices are identified as being in the top 10% of sales based on area property values, median resident incomes and area development plans. Ultra-luxury properties are usually defined price-wise as being in the top 1% of sales, according to Maison Global.
Elements of luxury properties often include
- prime locations with great views and direct access to ocean-sides, mountains, urban and cultural centers
- premier quality with much sought-after, hard-to-find-and-obtain materials, finishes and technology
- “luxe” amenities such as decontamination showers, Imax theaters, arcade rooms, helicopter pads, etc.
- privacy such as guards/door staff, high walls, gates, bulletproof glass, etc.
- provenance in terms of the property/ownership history and star-power architects, designers, craftspeople, landscape designers, etc.
You as a luxury real estate agent must know your product…every detail, every intricacy, every facet of that home and the market in which that home lives. It is up to you to recommend the price of the property and/or make price adjustments to your client. It is your job to have up-to-the-minute, real-time information at your fingertips and in your head.
You must have the capital…the money… to properly represent and market luxury properties. The brochure, video, drone footage, magazine placements, website visibility, digital placements and events must be appropriate. John Aaroe, a broker with the John Aaroe Group, tells us, “Your open house for a luxury home could easily cost between $15,000-$20,000.”
Along with capital for marketing, you must have the staying power and grit to represent the luxury property and its relationships for the duration of the sales process. Often, luxury homes take longer to sell than the other 90% of homes on the markets…400 days and longer.
Lastly, you as a luxury real estate agent must be both discrete and discerning with your abilities and your client’s goals. Before you go after or say yes to a trophy listing, know you can deliver on all levels, exercise complete confidentiality and exceed your client’s expectations.
