Buyer demand is a constantly changing influence in luxury real estate, where affluent consumers are often the perpetrators and influencers of new trends.
Selling a luxury property in the current market requires that you know how to highlight the home’s unique attributes and how to maximize its potential value to prospective buyers.
The luxury market doesn’t seem favorable to either buyers or sellers as inventory levels are still below traditional norms. Sellers remain resistant to sell because they are not ready to let go of their low mortgage rates and buyers are still hesitating as they wonder if the prices will fall.
However, there are still sales happening and many of these sold properties are holding their value (i.e. the sold price is close to the list price). Here are four methods to help to connect the dots between buyers and sellers.
“Move-in-ready” simply means that a person can move in to a property and that it’s livable. In the luxury market, today’s buyers expect far more. They are looking for value-added extras that offer them a property that matches their dream expectations – from that initial curb appeal to quality interior finishings, exceptional amenities, and unique features.
Many affluent buyers are not looking for a property to renovate, simply because they neither have the time nor the inclination to take on a project. Poor supply chains, labor shortage, and increasing renovation costs are not helping the situation either.
We’ve seen an uptick in the number of affluent buyers purchasing homes in amenity-rich developments, gated communities, resort-style complexes, and high-rise condominiums during the last year.
This preference for move-in-ready does put the onus back on the seller, but understanding the specific features of recently sold properties will provide valuable insight about which amenities are highly desirable in their market.
Stage the Home Properly
Even if the home has all the right features, amenities, and is move-in-ready, one of the biggest obstacles to potential buyers is that they cannot see past the clutter or even the seller’s choice of furniture and finishings.
Staging might be a difficult decision for sellers, but it’s important to stage the property in a way that is general enough for prospective buyers to visualize living there, while still evoking a luxurious environment.
It’s a combination of appealing to a broad spectrum of buyers while showcasing the property’s unique niches that connect with the target audience.
Connect With the Right Audience
Luxury properties are unique and by their very nature, not every buyer will find a connection.
Every property has its own story to tell. For luxury properties, this story is part of what makes it unique: why the property was built, the purpose of various characteristics, the special features, and its hidden secrets, nuances, or opportunities.
Sellers should be ready to share the pros and cons of their homes, and recognize that one person’s negative is another person’s positive. For example, if the property is too close to other homes, this may not suit a couple looking for complete privacy. However, other buyers may prefer not to be too isolated or want to feel they are part of a community.
Targeted marketing is more effective than trying to appeal to the masses. It allows the language of the message to be more focused on connecting with the right potential clients.
While the story of the property can evoke an emotional response, a focused approach on finding the right target audience is often key to selling faster and attracting multiple buyers, especially if it’s a renovated home or staged to fit the current demand profile.
Headlines and photography are instantly eye-catching. Those that capture attention by connecting with the target audience will be more likely to see a greater response.
Clear, concise language that creates curiosity, generates emotion, and allows the readers to see themselves in the home is essential for creating a compelling marketing message.
Are you looking to establish yourself in the luxury real estate market? The Institute for Luxury Home Marketing (ILHM) is here to help!