There’s a sense with luxury real estate that the main decisions should be informed and structured by a reliable third party. If you have an excellent realtor working for you with experience in this field and area, then you’re in good hands. This wisdom won’t be contested here.
However, odds are you still take an interest and direct the professional depending on your needs and preferences. The property still belongs to you, after all, and you no doubt wish to sell speedily, with clarity, and for the largest return possible.
Despite the expanded figures and sums involved with luxury real estate compared to the average residential house sale, there are certain principles to follow and mistakes to avoid. The latter is what we aim to discuss in this post, hopefully providing you more of a blueprint to get started and make the most of your sale:
- Improper, Unfounded, Assumed Valuations
It’s not uncommon to place too much value on the personal meaning of a home. Years of memories, renovations, and careful maintenance can lead sellers to assume the property should demand more on the market than it realistically will, but luxury buyers aren’t paying for sentiment.
Almost always, they’re measuring square footage, location, finishes, and lifestyle appeal. If you’re not at least somewhat connected with what similar properties are going for, you run the risk of alienating serious buyers early, even if your household really is unique thanks to the hard development time you’ve put into it. As such, it’s a good idea to get several evaluations, even before listing. That way, you’re much more grounded in the market and can adjust accordingly without too much back-and-forth, and you’ll also be able to tlel when the best time for sale is.
- Letting Past Investments Get In The Way Of The Sale
Selling any home has the potential to feel emotional, but luxury listings add another layer given how special a home may be or how much of its personality may have been defined by you. But more than this, luxury homes are often a real reflection of someone’s sense of character, including their success, their taste, and even ambition. That can sometimes limit the objectivity with which you view the sale.
Now, that connection is understandable, but once the property is on the market, it’s time to start thinking about it from the outside in. Sellers who stay too close to the process sometimes make decisions based on how they feel rather than what the sale needs. That can slow things down. You don’t have to detach entirely, but if something isn’t working, the property won’t move just because you still love it.
- First Impressions Can Be Ignored
Luxury buyers don’t necessarily walk into a space ready to imagine what it could be, because most of the time, they’re looking for something that already feels close to what they want. That’s why curb appeal, clean lines, and a strong first step inside matter. They also know they could shape a property to their own tastes anyway because they have the means to. You may think this only means the bones of a property is of any relevance then, but the opposite is in fact true. When luxury real estate buyers or investors think about purchasing a home, they often do so because of the value of what it is now, and the design prowess present right at this moment.
As such, “freshening up” the home is a worthwhile approach, then. In this case, small touches like updated lighting, tidy outdoor areas, and neutral scents can create the kind of welcoming energy that encourages someone to feel at home at at peace in the luxury space while they or an intermediary view it.
- Confident Overpricing
It’s very easy for impressive properties, such as those on the luxury side of real estate, to seem so precious as to be anathema to a good deal. You may think that unless you sell the property at a major profit, then you’ve failed to make good on the promise of its potential.
Realtors will often see that before long, the number attached doesn’t reflect the property as much as it reflects the seller’s hope for what the property could fetch on a perfect day, and they will need to mediate that
That’s because overpricing right out the gate can actually harm the perceived value of the home. You might get fewer showings, slower interest, and the kind of dragging timeline that makes future buyers wonder what’s wrong with it and why such a wonderful piece of real estate isn’t being snapped up, even by private equity firms. As such, starting in the right range gives you more momentum and, in some cases, even a better final offer.
- Not Understanding The Buyer You’re Trying To Attract
What, would you say, is a luxury buyer? What do they appreciate? Depending on your experience, you may have a different idea. For example, you may think it’s just people with money. That is obviously the case if they’re to buy the property outright, but that’s not always the case. Moreover, money doesn’t necessarily categorize people with the same lifestyle needs or preferences.
Your clients, especially at this level, can be highly varied. For instance, some are investors, others are second-home seekers, and some want a place that doubles as both residence and retreat or even as a building their staff can use when gaining a solidified foothold in a newer market.
Knowing who is most likely to want what you’re offering helps fine-tune the way your property is presented, as is most appropriate. If you’re listing seaside luxury real estate, the details that matter might lean more toward lifestyle and view than they would in a city apartment, where proximity and exclusivity are most common. A property might have every feature imaginable, but if the listing doesn’t speak directly to the person most likely to buy it, the timeline of a sale may extend.
- Relying Too Heavily On A Realtor Without Giving Input
Having a seasoned realtor on your side is a huge advantage, especially in this market, as they understand the local scene, they’ve cultivated connections, and they’ve handled the process dozens of times over. But even the best professionals aren’t mind readers and really do value your input and preferences.
Luxury sellers can sometimes take a hands-off approach, which means they can miss the chance to shape the sale in a way that feels right to them. Some clarifications can help, such as who the ideal buyer is, highlighting certain aspects of the home, or weighing in on scheduling for open houses, as your input can shape a more focused strategy.
Any realtor will be happy to do the hard work and render their service with confidence, but they’ll also be inspired to work with your direction, let you know the feasibility of a certain approach, and as such render the best of their expertise. Don’t discount this just because you may want the process at arm’s length, as there’s a huge amount of value you can find here.
- Assuming The Market Will Do The Heavy Lifting
Even if the local market is thriving and inventory is low, it doesn’t automatically mean your property will move fast. Some homes really do need a push, evne if they’re unique, beautiful, well-designed, and boasting every single mod-con.
In some cases the measures you use will be elementary, such as implementing sharper photography, better listing language, or perhaps a small promotional effort to the right buyers. This is especially true for unique or high-end properties which may be custom or have a unique history that needs to be delivered with clarity for it to be understood. You’ll also find that in this context, it’s best for the listing to evolve depending on how people respond to it. If the language isn’t drawing attention or the photos don’t capture the scale and detail, it’s worth curating more in your image and with a better sense of clarity and focus.
- Being Too Rigid About Negotiation & Timing
One outcome you will almost certain learn is that luxury doesn’t always mean fast. High-end buyers often take their time, consult their advisors, and return for second or even third looks, perhaps putting in requests to see what can be done with the property or waiting for their own luxury real estate to clear sale, which of course can take time and effort to achieve in kind.
That can test the patience of some sellers, especially if they’re eager to close the process quickly, but being too firm around deadlines, offers, or even minor requests can limit what’s possible and potentially harm your asking price. Now, this doesn’t mean accepting anything that comes your way, it’s just best to keep in mind that flexibility often opens more doors than it closes. As such, if a buyer wants a later move-in or is requesting certain furnishings as part of the deal, there’s usually a middle ground to be found.
With this advice, we believe you’ll be much better able to avoid mistakes when selling luxury real estate you own.
