Even if you’re not much of a numbers person, using data to inform your moves in the high-end real estate market is more important than ever, the April 2019 Luxury Market Report revealed. Statistics are the best way to answer questions such as “what is the value of my home?” and “are you going to find the right buyers?” This is especially true in a market that has normalized to traditional levels.
Why you should use data
Here are some reasons you might want to start incorporating more data into your approach.
1. Slower pace than previous years
The market has normalized back to traditional levels so it’s the listing agent’s responsibility to do the proper research on all elements of the property and the market in order to create a marketing strategy that will succeed in finding the right buyer.
2. Need to accurately determine value
Luxury properties have more complicated elements that go into determining their value. The only way to truly estimate the value of a luxury property is to use data about the current inventory, sale prices, and pricing differentials at the local and national level.
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3. Luxury consumers appreciate data
Most luxury home buyers and sellers are working at the top of their fields and make decisions based on statistics and data every day. They appreciate this insight into the real estate process as well. As the wealthy continue to add to their portfolios by purchasing more property, they are also becoming increasingly data savvy and expect you to have a deep understanding of the statistics.
What data should you use?
Now that you know you want to use data, what statistics are most important? Here are just a few elements highlighted in this month’s Luxury Market Report that could benefit you.
1. Days on the market
How long does it take a home to sell in your area? Nationally? Not only does this help you form expectations for your client about how long the process might take, but it gives you an indication of whether you’re in a buyer’s or seller’s market and whether homes are priced correctly for the market.
2. Price per square foot
You’re probably very familiar with this data point, but don’t forget to look at this in the context of yearly trends. When reviewing price per square foot it can be helpful to create a graph that charts fluctuations for the last 12 or 18 months.
3. New listings
You’ll want to know how many new listings go on the market in your location during a given month. This can give you a picture of what others in the market are doing and how buyers could respond.
How to present this information to clients?
It’s up to you how you want to deliver these statistics to clients. You could rely on simply relaying the facts verbally, or create a sleek presentation that they can refer to throughout the process. Sending clients regularly updated, branded documents that relate specifically to their concerns shows that you’re actively monitoring the market and working for them to help them reach their real estate needs.
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