Selling luxury homes is never simple. However, there is no need to make something more difficult by falling victim to some common mistakes. Besides, selling high-end real estate and million dollar mansions ups the stakes considerably. So, there’s little room for error on the seller’s part when it comes to closing the deal.
Furthermore, with the increased difficulty level of selling luxury homes comes an increased level of know-how and professionalism required to get the job done. Many agents, brokers, and even sometimes lenders, have no clue on the issue of selling luxury homes. Much more, nearly all owners haven’t the slightest idea about effective and aggressive marketing of luxury homes. That’s why we care about informing eager sellers about the perils and pitfalls involved with high-end real estate sales.
Likewise, Luxury Estates Auction Company is empathetic to the ill-advised sellers and bewildered buyers out there who merely want to make money and move forward. After all, it’s not like leading professionals like Chris Camp and Jeff Morris got where they are today without being receptive and understanding from the very beginning. We all have to start somewhere, but you don’t have to make the same mistakes as others in the process.
Here are the biggest mistakes we’ve observed from among high-net-worth individuals and those selling luxury homes:
1. The Price is Wrong
Regardless of what CBS and Bob Barker might have you thinking, the price is not always rights. At the same time, pricing a home accurately from the start is incredibly crucial whether selling a $150,000 home in the suburbs or a five-million-dollar villa on Florida’s Gulf Coast. In fact, one of the most common, albeit, embarrassing blunders we see is the hiring of a real estate agent who strongly recommends an exorbitant amount or tries to set the highest price. This mishap can end up costing all parties involved a pretty penny.
Aggressive marketing and competitive pricing is the only way to survive in today’s fast-paced luxury market. If you’re not attracting buyers from the very start, you’re already behind. Ok. Deep down you know it’s true. Luxury homes tend to sit on the market longer than more modestly priced houses. However, if priced correctly from the very start you stand a much better chance of fetching fair market value.
At Luxury Estates Auction Company, we pride ourselves on accurate pricing. So, to make Bob Barker and his modern counterpart, Drew Carey, happy, we always make sure “The price is right.” In particular, we ensure proper pricing by conducting extensive comparative market analyses on every luxury home we sell. Above all else, an extraordinary seller devotes hours to analyzing and interpreting market data. Also, they understand the difference between features seen in lower-end “cookie cutter” homes and the unique amenities afforded by luxury real estate.
2. Mediocre Marketing
Another significant mistake we see among sellers has to do with their marketing approach. That is to say, many sellers employ ineffective marketing techniques or rely solely on out-dated marketing methods. Now, while print may not be dead and direct mailing still carries sway when it comes to getting the word out about your listing(s), digital marketing is a newer aspect of marketing often overlooked. The internet has completely changed how individuals shop for goods and services. Thus, the case is no different with luxury real estate.
It’s crucial for anyone selling high-end real estate to employ an aggressive, digital marketing strategy. What’s more, having a website isn’t enough if you want to make an impact on the market. You must not only integrate popular elements, such as blogs and forums, but you also need to have an active social media presence. Don’t forget—many individuals shop for homes using their phones, tablets, and other mobile devices. So, making sure your site works seamlessly on mobile devices is essential as well.
At Luxury Estates Auction Company, we make sure to market every million-dollar property and beachfront home as aggressively as possible. In other words, we make it our business to get your listing in front of the right eyes, at the right time, in the right way.
3. Poor Presentation
The third mistake we regularly see sellers make is presenting high-end real estate in a less-than-favorable light. That is to say, they’ll get a hold of an incredible property, but you’d never be able to tell merely by looking at what’s online—or in any other marketing medium for that matter.
Of course, appropriately highlighting the luxurious lifestyle afforded by million-dollar listings might seem obvious to most. However, you’d be surprised how many times we see sellers walk through our front door, with shoddy photography, unattractive images, and blurred pictures. What’s worse, they remain entirely perplexed at why their multi-million-dollar beachfront property won’t sell.
Alongside, having your photos professionally proofed, printed, and electronically published, virtual tours are imperative. Trust us—they make a huge difference. Remember, “searching online continues to be the first step that most buyers” take in the buying process. So, it makes sense the imagery presented to them should be of the highest caliber. Let alone—any agent or broker can snap a few pictures of a luxury home. Meanwhile, a professional virtual tour can put your high-end property at the top of many buyers’ short-list.
When all is said and done
The mistakes listed above represent a remarkably small portion of the errors commonly encountered by sellers in the luxury real estate market. Therefore, if you ended up with “egg-on-your-face” after reading this article, you might want to check with an experienced professional in the field. On the other hand, if your sales tactics and marketing measures could use some improvement, you should contact an expert all-the-same.
Luxury Estates Auction Company has the knowledge, and the skill demanded from high society and the ultra-wealthy.