How to Sell a Luxurious Home
Successfully closing deals on high-end, luxury properties requires finesse and savvy negotiation. Tips for closing luxury real estate transactions include:
- Build rapport and trust with luxury buyers so they are confident working with you. Provide excellent communication and five-star service.
- Understand buyers’ motivations, needs and emotions driving their purchase. Connect these to the property’s benefits.
- Prepare for buyers to expect negotiations and concessions like home inspections. Know your bottom line for offers.
- Leverage your experience with upscale amenities and neighborhoods to demonstrate expertise about the property’s value.
- Be patient for the right offer but persistent in keeping parties engaged. Luxury deals can take time.
- Manage legal and logistical details proactively. Recommend reputable partners like inspectors and attorneys.
- Follow up after closing to ensure satisfaction. Luxury agents build lifetime relationships beyond one transaction.
With persistence mixed with diplomacy and an elevated client experience, luxury agents can turn high-end listings into closed sales at optimal prices.
Table of Contents
How do you sell expensive house?
Selling a luxurious home requires a deep understanding of the finest real estate market and the unique needs of affluent buyers. With the right strategy, you can effectively market your property to attract qualified prospective buyers.
6 tips on how to start selling luxury modern houses
To start selling luxury modern houses here are the top 5 tips on how to start selling luxury listings:
- Aim high, be realistic: If your immediate competition has 5 complete luxury sales for more than 10 million dollars each in a year, and you have none. Aim to achieve at least 5% of what they do, but try to be better than them in these 5%.
- Build your luxury brand: Your brand is your reputation. If you want to sell million-dollar luxury modern houses, you need to be someone who sells million-dollar listings. Focus on promoting your most expensive deals and consistently market yourself as an agent who sells at that price point and above.
- Use the ladder strategy: Gradually increase your price range by focusing on deals that are slightly more expensive than your previous ones. As you promote and post about your luxury deals, people will start to associate you with those types of deals, helping you climb the ladder to higher price luxury modern houses.
- Leverage associated marketing: Associate yourself with the luxury market by being where million-dollar sellers and buyers are. Attend events, join clubs, and network with people in the luxury market to increase your chances of getting a million-dollar listing.
- Focus on quality visuals: Invest in high-quality visuals for your listings, such as professional photography and luxury virtual staging. This will help capture the attention of high-end homebuyers and showcase the unique features of the luxury properties you’re selling.
- Work with experienced professionals: Collaborate with a real estate agent who has proven experience in the luxury market. They can provide valuable insights and guidance on how to effectively market and sell luxury properties.
Remember that breaking into the luxury market takes time and effort, but by following these tips and strategies, you can increase your chances of success in selling luxury listings.
How to Define Luxury Real Estate in Your Area
The first step is determining what constitutes a luxury property in your market.
In general, the top 5-10% of homes in terms of price define the luxury segment. However, luxury is also about amenities, location, architecture and lifestyle. Luxury real estate is subjective and location-dependent.
For example, a luxury home in San Francisco may start at $5 million with features like designer finishes, sweeping views and smart home technology. While in a smaller market like Boise, Idaho, a luxury property may be over $1 million with high-end upgrades and acreage.
Consult local data on sales prices and amenities to define luxury in your area. This helps you accurately position and price your luxury listing.
Research Sales Trends and Luxury Market Prices
Analyze recent sales of comparable high-end properties to identify price trends. Look at the:
- Average and median sold price per square foot for luxury properties
- Premiums paid for location, views, acreage, architecture and amenities
- Average days on market for luxury listings
Luxury home market segment is very different from the general day-to-day sales. Since properties sell for millions of dollars, the high-end buyers is looking for different features compared to the non-luxury homes.
This data helps you benchmark your listing and determine accurate pricing. It also gives insight into what luxury buyers value most.
Follow luxury market reports to stay on top of trends and maintain realistic pricing. For example, the Coldwell Banker Global Luxury Market Report provides insights into patterns like rising international demand.
Identify the Target Luxury Buyer
Defining your ideal buyer is critical for marketing. For luxury modern houses, buyers may include:
- Wealthy families seeking a primary residence
- Opulent vacation home buyers who want turnkey luxury
- Investors looking for a high-end rental property
- International buyers seeking secure real estate investments or pied-a-terres
Evaluate recent luxury sales in your area to identify the typical luxury client. Get insight into their demographics, lifestyles and motivations. This helps tailor your marketing and interactions for the ideal prospect.
By deeply understanding the luxury real estate market and ideal buyers, you can effectively position your listing for a successful sale. Consider working with luxury specialists to tap into their expertise and connections with affluent buyers.
Price the Home Correctly as per the selling points
Accurate pricing is critical to selling a luxury property in a reasonable timeframe. You want to attract qualified buyers without overpricing and missing the market. Follow these tips for pricing a luxury listing:
Conduct a Comparative Market Analysis
Leverage a comparative market analysis to benchmark your home against recent luxury properties for sale in the area. Compare similar properties in terms of:
- Location – proximity to amenities, views, school districts
- Lot size – acreage, waterfront
- Home size – square footage, bedrooms/bathrooms
- Architecture and design – layout, finishes, uniqueness
- Amenities – pool, home theater, wine cellar
Look at active luxury listings in the area to gauge competition. Visit open houses to get insight into pricing, condition and staging.
This helps you accurately position your luxury home against the local market. You can justify your pricing based on the value offered versus comparable properties.
Price Tips for Selling Just Below Comparable Properties
In most cases, you want to price your luxury listing just below similar active listings on a price per square foot basis. This positions your home as a value play compared to competition.
If the market is slower, consider pricing just below recently sold comparable homes. This nets out some room for negotiation while still aligning with market value.
Price too far below and you leave money on the table. But overprice and your home may sit while buyers purchase more reasonably priced luxury properties.
Leave Room for Negotiation with Potential buyers
Luxury buyers expect to negotiate, so build in a buffer. Price near the upper end of your range but allow wiggle room to negotiation. This also gives you space to strategically reduce the price if needed to spur interest.
Avoid drastically overpricing then slashing the price. This can devalue the home and turn off buyers. Make small strategic reductions and highlight upgrades or improvements to justify adjustments.
Proper pricing is an art and science. Partner with an experienced luxury real estate agent to determine accurate pricing that maximizes your sale price.
Have a project to stage? We know how to do luxury virtual staging >
Hire an Experienced Real Estate Luxury Agents
The right real estate luxury agent is essential for successfully marketing and selling a luxury home.
Look for an agent who specializes in high-end listings and understands the nuances of working with affluent buyers.
Seek Special Luxury Designations
Look for agents who hold special designations like Certified Luxury Home Marketing Specialist (CLHMS). This indicates they have invested in specialized training to meet the needs of luxury clients.
You want someone who goes above and beyond the typical agent education and expertise. Special luxury credentials demonstrate their commitment to high-end real estate.
Verify Success With Luxury Sales
Review the agent’s recent sales history and look for consistently sold luxury listings. This proves they have experience pricing and marketing high-end homes in your area.
Ask for referrals from past luxury clients. Feedback from a buyer or seller of a $5M+ property carries more weight than a referral from a modest home sale.
Discuss High-End Marketing Strategies
A seasoned luxury real estate agent will have a robust marketing plan tailored to affluent buyers. Make sure they go beyond the MLS and standard marketing tools and listings.
Look for targeted outreach to brokers repping qualified buyers, promotions in luxury magazines, partnerships with interior designers, professional photography/videography, geotargeted social media ads, and international listing sites. Widen the pool of buyers to the maximum.
Pay attention to how they position the lifestyle and exclusivity of your home. High-end marketing should sell a dream, not just bricks and mortar.
Trust in Expert Representation
Selling a luxury property is complex. Partnering with an agent experienced in the nuances of high-end real estate can make the difference in getting your home sold for the right price.
Use High-End Marketing and Advertising with experience in the luxury market
Marketing a luxury properties for sale requires going above and beyond traditional real estate advertising. Use high-end digital marketing materials and promotions that speak to affluent buyers and are avilable to them 24-7.
What is high-end real estate marketing?
High-end real estate marketing refers to the strategies and tactics used to promote luxury homes and properties to affluent buyers. The key aspects of luxury real estate marketing include:
- High-quality photography and videography to showcase the home’s finest features and lifestyle. This includes drone footage, 3D tours, etc.
- Targeted advertising in luxury magazines, business journals, high-end websites, and other venues frequented by wealthy hign-end buyers.
- Prominent use of the property’s amenities, architecture, designer elements, technology, location perks, and other luxury characteristics.
- Concierge-level service and communications catering specifically to upscale buyers and their representatives.
- Strategic use of social media and networking to connect with referral partners who work with high-net-worth clients.
- Luxury printed marketing materials like high-end brochures, branding, and direct mail campaigns.
- PR opportunities such as featuring the property in media frequented by affluent readers.
The goal is to market to the aspirations and preferences of luxury home buyers versus the general real estate market.
How to set up luxury open house?
A luxury open house requires extra touches to impress high-end buyers. Tips include:
- Work with your luxury real estate agent to promote the open house through targeted channels like exclusive websites and magazines.
- Hire a professional stager to showcase the home’s finest features and possibilities.
- Offer valet parking and refreshments like champagne, cocktails, or gourmet bites.
- Have soft music playing and make sure lighting highlights the home’s architecture and design elements.
- Set up private tours for VIP buyers who want an exclusive initial viewing.
- Greet visitors warmly and be available to answer questions but don’t hover. Let them experience the space.
- Follow up promptly with custom notes, not just form letters. Reiterate the lifestyle possibilities.
Selling a Luxury Lifestyle and Home Tips
Focus the description on selling the lifestyle and exclusive features
When showcasing a luxurious home, focus the description on selling the lifestyle and exclusive features. Highlight:
- Designer finishes like imported tiles, stonework, wallcoverings and high-end appliances that elevate the home.
- Architectural details such as soaring ceilings, expansive windows and custom millwork.
- Lush outdoor living spaces like covered patios, sun decks, outdoor kitchens, and resort-style pools and spas.
- Smart home technology that provides convenience, security, entertainment and homeostasis automation.
- Premium locations close to attractions like golf courses, marinas, views, restaurants and airports.
- Privacy elements such as gated driveways and secluded settings.
- Rare amenities not typically found in the area like wine cellars, home theaters, and guest houses.
Focus on conveying expertise, exclusivity, and appeal to luxury home sellers specifically. Words like “secret”, “stand out”, “playbook”, “red carpet”, “masterclass”, and “insider scoop” help position the author as an industry insider with specialized knowledge to share.
Keep the tone aspirational yet tasteful. Focus on the feelings of relaxation, entertainment and exclusivity the home provides versus just square footage.
Read also: How to describe a luxury house in a listing
Invest in Professional Photography
Hire a top-tier real estate photographer to showcase your home in the best possible light. wide lens shots, twilight exteriors, aerial photography, and vivid close-ups of details create a high-end impression.
Videography brings the property to life. Walkthroughs, drone flyovers, and lifestyle videos engage buyers emotionally. This drives interest and conveys the prestige of the home.
Advertise in Luxury Venues
Target your advertising to reaches affluent buyers. Place ads in luxury magazines, the business class sections of major newspapers, and exclusive websites.
Focus ad creative on elegance and sophistication. Highlight exceptional features and architecture over listing specs. Sell a lifestyle versus just a house.
Promote the Lifestyle in the luxury home
Market the amenities, exclusivity and experiences available to homeowners. Showcase the views, outdoor living spaces and amenities.
Emphasize privacy, convenience, security and exclusivity. Use premium marketing materials like brochures, signage and social media ads to convey luxury living.
With a targeted luxury marketing campaign, you reach qualified buyers who appreciate the value of your exceptional property. The right positioning attracts buyers who recognize true quality.
Prepare the Property for Showings
First impressions matter greatly when selling luxury real estate. Ensure your property shows at its absolute best with proper preparation and staging.
Hire a Professional Stager to stage your luxury lisitng
Invest in an experienced luxury stager. They have a keen eye for transforming everyday spaces into million-dollar showpieces.
A top stager will edit and augment your furnishings to create an inviting, opulent aesthetic. They highlight architectural details and design elements most appealing to affluent buyers.
Pay attention to removing clutter, optimizing lighting, selecting upscale accessories, and enhancing comfort. The goal is to help buyers envision living their luxury lifestyle in the home.
Read also: Test Luxury Staging for Free
Maximize Curb Appeal
Evaluate your home objectively from the street. Maintain manicured landscaping and apply a fresh coat of paint if needed. Power wash exterior surfaces.
Does the home exterior convey the prestige that aligns with a luxury listing price? Make improvements to match the high-end aesthetic.
Address Repairs and Luxury Updates
Buyers expect move-in ready perfection. Pre-emptively address any worn or dated elements in the home. This may involve:
- Replacing carpets and outdated light fixtures
- Upgrading appliances and hardware
- Fixing cracks,chips,scuffs and other flaws
- Painting rooms in neutral, designer colors
- Professionally cleaning from top to bottom
Proper preparation makes your property shine and delights discerning buyers. It shows you take pride in the home and understand what luxury means.
Luxury home sales often takes longer to sell
Be patient during the selling process, selling a luxury property requires realistic expectations and patience. High-end homes take longer to sell and involve selective buyers.
Expect an Extended Timeline
Luxury listings often stay on the market 60-120+ days, versus 30-60 days for mainstream properties. Limited buyer pools mean more time is needed for the right purchaser.
Avoid pricing mistakes like chasing the market down through reductions. Price correctly from the start and be prepared to wait for an appreciative buyer.
Rushing the process usually leads to accepting a lower offer than if you’re patient. The wait is worthwhile to secure an optimal sales price.
Showings Will Be More Targeted
At the luxury tier, real estate is discretionary, not necessary. So showings will be fewer but better targeted to qualified buyers.
Those who view the property will be strongly motivated and prepared to move quickly when the home checks their boxes. Quality over quantity is the norm for luxury showings.
Negotiation is Expected
High-end buyers expect to negotiate and will make under-list offers to test pricing. Don’t take this personally or reject offers out of hand.
Know your bottom line and stick to it. But have realistic expectations on concessions like inspection allowances. Leverage your agent’s experience in countering and closing luxury deals.
With the right prep and perspective, selling a high-end home can be a smooth process resulting in a favorable transaction at the optimal sales price.
Provide Five-Star Service
Luxury real estate clients expect white-glove, concierge-level service. Go above and beyond to cater to buyers, agents and stakeholders.
Be available to show the property whenever requested, even with short notice or unusual timing. Never make buyers adapt to your schedule.
Reply promptly to inquiries, provide requested information fast, and avoid delays. Conduct regular open communication and outreach so clients always feel informed and valued.
Anticipate needs clients may not realize, like arranging car service or having refreshments on hand during showings. Find small ways to delight and impress.
Make Showings Memorable
When buyers view the property, add special touches to make it an exceptional experience.
Show your enthusiasm and deep knowledge of the home’s features and background. Offer to walkthrough first to turn lights on and make sure optimal vantage points are clear.
Follow up after with a handwritten thank you note. Reiterate how the home’s attributes align with their needs.
To Sell Luxury Modern Houses Go The Extra Mile
Have a project to stage? We know how to do virtual staging effectively >
The real estate high end market may be only few percentages but the competition is fierce. To achieve your goal of selling at least 1 high end modern house above price tag push your limits and go the extra mile.
Look for opportunities to go above standard expectations. For example, work holidays or schedule private showings outside normal hours to cater to a buyer’s availability.
When issues arise, turn them into opportunities to showcase your dedication. A immediate and creative solution reassures luxury clients.
Consistently providing five-star service gives high-end buyers confidence they are in expert hands. This level of care can be the deciding factor between you and competitors.
What price point is a luxury home?
The price point that qualifies a home as luxury real estate varies by location and market. Some guidelines on luxury home pricing include:
- The top 5-10% of homes in the area in terms of sold prices define the luxury segment.
- In major metropolitan areas like Los Angeles or New York City, listings above $5 million typically fall in the luxury category.
- In smaller or mid-sized cities, the luxury threshold may be around $1 million and above.
- Luxury pricing correlates with exclusivity. Unique architecture, amenities, views and locations command premium pricing.
- Multi-million dollar prices alone don’t necessarily make a luxury property. Exceptional quality, features and appeal matter more.
- New build luxury construction often starts at $900,000 and up, depending on the area.
- On average, expect luxury homes to sell for 2-3x the median home price for a given location.
Are million dollar homes hard to sell?
So while luxury prices vary market to market, they represent the top-tier housing showcasing excellence in features, reputation and lifestyle.
Certainly, selling million-dollar homes can be a challenging process due to the niche market they cater to. The complexities lie in the fact that the target audience for these properties is considerably smaller than that for more frequently priced homes.
Additionally, national trends suggest a decline in the percentage of homes worth at least $1 million, indicating that the demand for such homes may be falling. This can potentially make it harder to sell homes in this price bracket.
Interestingly, there’s also data suggesting that the features offered by million-dollar homes have been shrinking over time, with fewer bathrooms and reduced space becoming more common. This might affect the perceived value and desirability of these homes, hence posing further challenges in selling them.
In summary, while selling a million-dollar home isn’t impossible, it does require a nuanced understanding of the market, the use of strategic pricing, and often, the experience and resources of a real estate professional to successfully navigate the complexities of the luxury real estate market.
What are effective luxury home listing strategies?
There are several effective strategies for listing luxury homes that cater to the unique demands of the high-end real estate market. Key strategies to consider include:
Exclusive Marketing: Utilize targeted marketing efforts to reach suitable affluential buyers, including advertising in luxury publications, online platforms, and social media networks aimed at high-net-worth individuals.
Pricing Strategy: Conduct thorough research on comparable properties in the area to establish an appropriate, competitive price for the luxury home. This will appeal better to potential buyers in the luxury market.
Highlight Unique Features: Emphasize the distinct and exceptional aspects of the property, such as architectural details, custom finishes, and sought-after amenities, to create a compelling narrative that sets it apart from other listings.
Professional Photography and Video Tours: Invest in high-quality, professional photography and video tours to showcase the property’s best features, giving potential buyers a comprehensive visual representation of the luxury home.
Staging: Staging the home with elegant furniture and tasteful decor can accentuate its luxurious aspects and create an enticing atmosphere for prospective buyers.
Utilize Professional Expertise: Engage a real estate agent with experience in the luxury market to skillfully navigate the complex world of high-end property sales. Their connections, knowledge, and marketing prowess can prove invaluable in securing a successful sale.
Remember to remain customer-focused and address specific concerns or requirements that luxury clients may have in order to create a seamless and successful luxury home listing experience.