Updated: Jan 7
Selling a luxury property can be a challenge for a number of reasons. Today, we're discussing the three main points luxury sellers need to cover to ensure a successful sale.
Selling in the Beverly Hills Area area? Get a FREE home value report
Purchasing in the Beverly Hills area? Get full MLS access
How can you ensure the sale of a luxury property? As I've mentioned before, a luxury property is often like a snowflake. It is one in a million and is difficult to appraise or compare to another property of similar value since it might have such unique features.
So how can you sell a property that's one of a kind?
I always like to break this down to the three P's, which are like the legs of a stool.As long as each leg is sturdy and of equal length, it will stand on its own accord. If one of the 'legs' is weak, the property will be weak and won't sell.
The three P's are: price, product, and promotion.
On a promotional level, remember that like the house, you might be looking for a buyer who is a needle in a haystack. Events, for example, are a big deal when selling a luxury property. You want to showcase the property and its features. If it's a vineyard, arrange a wine tasting. If it has a multi-car garage, partner with a luxury auto dealer. If the property has a safe room, look into partnering with a local company that provides security services and have them bring their clientèle.
In the promotional leg, we will also use direct targeting. Say we know that a luxury property is oceanfront and has a private dock or helicopter pad. These are areas where we can directly target audiences that subscribe to certain magazines or belong to an association that would be of interest to these types of properties. We can directly send them a very attractive mailable brochure or some form of content in a creative way that allows us to get our information to a buyer who might be interested, even if they're not in the market for a new property.
LUXURY HOUSES ARE USUALLY VERY UNIQUE, MAKING APPRAISALS A CHALLENGE WE MUST OVERCOME.
Next is the product itself. All properties have their pluses and minuses, but the more you position a home to be sale-ready, the more beneficial it is. This includes taking care of any potential maintenance items, doing updates that would be appropriate for the modern luxury buyer, and an overall decluttering and depersonalizing. That way, when someone walks through, their first impression will be magical.
Finally, there's price. With the price, we want to be reflective of all the luxurious aspects of that property. It will be difficult to appraise a luxury property because it's so unique, but a trained eye can set and follow trends happening in the luxury marketplace. How much has the home appreciated over the years thanks to its exclusivity? With a luxurious and unique property, we want to price it in a way that will get buyers to engage in a bidding war.
There are multiple ways we can add and subtract from each of these three pieces, but in essence, these three legs of the stool are the main points for selling a luxury property. If you have any questions about selling luxury real estate, don't hesitate to reach out to us. We look forward to connecting with you soon!