There are seven key things real estate professionals need to understand about how to cash in on the boom in luxury real estate sales. What really works my surprise you.
The 7 Realities of Selling Luxury Real Estate
By Andre Taylor
There’s lots of talk these days about how the real estate market is softening. However, there are many real estate professionals who find that their clients are able to buy whether real estate is hot or if it’s not. These buyers are not concerned about changes in interest rates or the decline in sub-prime lending alternatives. That’s because these buyers are only interest in the top ten percent of the real estate market worldwide. These buyers are called luxury buyers.
If you’re in the real estate sales business you know that this market is different than any others. If you want to get into this business I’m going to share with you some of the compelling aspects of this market that will enable you to successfully build a business in this area. These tips come from my coaching clients focused on this top tier market, and years of research into affluent buying patterns.
Tip#1
The Million-Dollar Home is Not Necessarily Luxury
This may be hard for some to believe, but in some markets across the country a million dollar home or apartment is the norm, and not necessarily luxury. So a focus on selling million-dollar homes is no longer an indicator of being at the top of the market. That’s why I’ve described luxury as the top ten percent.
Tip#2
Luxury Buyers Will Probably Tear Down
Many luxury buyers are not interested in the property at all. In many markets the primary activity is what is called a “tear down.” High-end buyers go into the marketplace at the location they choose, right the right property and tear it down.
Tip#3
Selling The Highest End Properties May Take Years
One of my clients worked on a $20 million sale for years. When it happens it’s all worth it. But if you’re looking for a quick hit at the high-end of the market it may not happen.
Tip#4
Your Buyer Is Probably Not Local
Many wealthy buyers are flying into the United States from other countries. There’s lots of activity in New York, Beverly Hills, and other markets from buyers from Europe, South America, and Japan.
Tip#5
The Web is Positioning
Many buyers are going to the web today to educate themselves about the market. But real estate buying occurs when the property and location resonates with the buyer. So the web is important to position you, your firm, and the property.
Tip#6
Ads Are For Sellers
Very few high-end properties sell via ads. In fact its fair to say that our research shows that advertising high-end real estate is really another positioning tool. The chances of selling a super high-end property via an ad are slim.
Tip#7
It’s Relationships
To find high-end buyers for the top end of the market you have to be connected. You must network in your community, regionally, nationally, and internationally. You must participate in the arts and other charities. You must be a force in the community. You must socialize with the elite.
The luxury market will continue to boom for years to come. We are in the midst of an area of accelerated wealth creation and those focused on selling luxury real estate will find it to be a challenging, but rewarding career. Remember these seven tips and you’ll be ahead of the strategies of most.
© Copyright 2007 – André Taylor – Taylor Insight Group, LLC. Go to www.andretaylor.com and get Andre’s free newsletter.
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