The luxury real estate market has shown minor signs of weakness after marginal drops in sale volume and average sale prices in 2018. With a softened forecast for 2019, high-end property owners are relying on expert realtors to manage and execute successful luxury real estate transactions. So just what does it mean for a property to be classified as “luxury” real estate? Although the answer is often subjective and varies considerably by location, luxury homes tend to meet one or more of the following specifications:
- A high price per square foot relative to other expensive neighborhoods in the area.
- Prime location and private living space.
- High-quality construction materials, premier property design, and high-grade interior fixtures.
- Well-appointed amenities and room features.
- Architectural charm or historic significance.
Remember, luxury properties don’t need to meet every single one of these standards. However, if you’re selling a luxury home, it’s important to understand how different property features are valued and presented in the high-end real estate market. Fortunately, sellers can defer this task to an expert by partnering with an established realtor. Read on for a comprehensive breakdown on what to look for when choosing a high-end realtor.
Experience in the Luxury Real Estate Market
The luxury property market has its own eccentricities when it comes to listing and marketing a home sale. You want a realtor who understands the many nuances of luxury property sales. Here are three questions you should keep in mind while evaluating potential realtors:
Do They Understand the Property?
The first thing sellers should check when choosing a realtor is their sales history, particularly their experience with luxury property sales. If the realtor’s experience is confined to single-family homes and apartments, there’s a good chance they’re not accustomed to pricing and marketing a luxury home.
Are they Familiar with Luxury Property Etiquette?
Like other niche housing markets, high-end property sales operate according to different rules when it comes to marketing and negotiation etiquette. Discretion, availability, and flexibility are some of the most highly valued traits in a high-end property realtor. With many luxury real estate sales proceeding off-market, you’ll need to partner with a realtor that can confidently handle both public and private property transactions.
Are They Informed About Luxury Property Trends and Market Data?
Your realtor should be well-informed with the current property trends and economic forecasts affecting the luxury real estate market. Potential realtors should also be capable of briefing you on long-term market data and historic sale indicators for local luxury property sales.
Full-Service Marketing Plan
Once you have verified an appropriate level of experience from prospective realtors, the next step is to determine the suitability of their marketing plan for your property. We’ve listed two key factors to keep in mind when evaluating realtor marketing pitches:
Online and Offline Strategies
Because luxury properties are often on the market for a longer period of time, high-end realtors must be able to pursue multiple marketing avenues and channels. In most cases, the online marketing strategy for a luxury home will center on a customized website, featuring a detailed property description, professional interior and exterior photographs, and drone-captured aerial video.
Your realtor should also be able to demonstrate a high degree of competence in offline marketing events. For in-person sales presentations, you want a realtor who is highly personable, capable of hosting exclusive home-showing events, and available for discrete home inspections.
Luxury home sales are negotiated on both public and private platforms. To properly target the luxury buyer demographic, you’ll need a realtor who can network with similarly well-connected agents in the high-end buyer’s market.
Ready to Sell? Contact an Experienced Realtor Today!
If you’re struggling to find a realtor with experience selling luxury property, contact Clever Real Estate to connect with a top-rated, full-service agent. Agents in the Clever Partner Network are employed by respected national real estate companies and regional realtor brokerages (RE/MAX, Keller Williams, and Century 21). A Clever Partner Agent will not only support and advise you during final negotiations — they’ll guide you through the entire sales process, from structuring a luxury property listing to marketing your home to high-end buyers. By partnering with Clever, luxury property sellers can save thousands in commission. To put this claim to the test, we’ll consider the following example:
For a $5 million property sale, conventional real estate agents will usually walk away with 6% of the final sale price; a hefty $300,000 commission. In comparison, Clever Partner Agents have committed to sell high-end property for a discounted ~4% commission, translating to a $100,000 cost saving. Luxury property owners are free to direct this cost-saving towards future property purchases, home renovations, or any other investments.