Luxury homes aren't typical properties, and this means that they don't attract the typical buyer. Finding success within the luxury property market means learning to work with the type of buyer most likely to be searching for a high-end home. Whether you have been listing luxury homes for years or you are about to enter this market for the first time, these four keys are vital to successfully matching luxury buyers with their dream homes.
Focus on Value, Not Budget
Many wealthy homebuyers enter their property searches with budgets that are likely to exceed the price of the properties that they are considering. Paradoxically, this can make valuing homes within this market even more difficult. Money may be no object, but wealthy buyers are unlikely to be spendthrifts. Your buyers will focus on the value that your properties provide to them, and so they may be more sensitive to overpriced properties. While a typical homebuyer might be convinced to stretch their budget for a home that they genuinely love, luxury buyers know that their money can be better spent elsewhere.
Exclusivity and Perception Can Create Value
In the lower-end and mid-range real estate markets, tangible aspects of a home often create value. Buyers are interested in square footage, bedrooms, bathroom sizes, and other easily quantifiable pieces of information. Of course, luxury home buyers have the means to purchase a home that will easily meet any objective criteria they may have. When working with a buyer to convince them that a home is worth its asking price, be sure to focus on the intangible elements. Does the home feature amenities not available anywhere else? Is it located in a city's most exclusive neighborhood? These questions are more likely to appeal to your buyers than raw square footage figures.
Sweat the Details
Whether your buyers are low-key millionaires or extravagant celebrities, they will be accustomed to having the finest things in life. When home shopping, these buyers are more likely to notice small issues with everything from the properties themselves to the listings. It can be expensive and time-consuming to make sure that everything about a property is perfect, but this is a crucial part of dealing with the higher end of the real estate market. Properties for sale should always be staged and photographed by professionals so that no critical details are left unaddressed. Likewise, all listings should be checked and double-checked to ensure that no small errors remain. Sweating the little details will help to expose the unique aspects of a home that create value for luxury buyers.
Finally, it is important to remember that a critical part of the process is building and then maintaining trust. Many clients in the luxury market are seeking discretion as much as they are a new home. This need for privacy is especially true of higher-profile clientele, but it is just as common with those who want to keep their wealth as low key as possible. Note that this is important whether you are working as a buyer or seller's agent. High-profile buyers often do not want their identities revealed to the owner of every property they are interested in, but sellers also often prefer to keep their identities under wraps. Establishing strong relationships based on trust and discretion is the best way to ensure that your clients are matched with the luxury homes they are looking for.