With a high supply of luxury homes for sale in Chicago, it is critical to understand how to set your home apart from the competition. In this post, we will provide 5 important tips for selling your luxury home in a buyer’s market.
1.Understanding the Buyer: In order to effectively market your property it is essential to determine your perfect buyer so you can gear marketing to them. In a buyer’s market you are up against a larger net of potential properties for a smaller number of buyers. Understanding the motives for luxury homebuyers is a critical step in the process. Possible factors that could make or break a sale include location, award-winning school systems, proximity to restaurants and shops to name a few. It is crucial to take note of current consumer trends, and a great agent can help advise on how to best position your home accordingly.
2. Pricing Correctly: It is also necessary to understand how pricing could affect the sale and days on the market. Under-pricing your home could result in financial loss, while over-pricing could result in larger market time, fewer offers, and a smaller pool of buyers. Knowing there is currently a larger inventory of luxury homes, pricing too high is a common concern. According to Crain’s analysis of MRED data, “the average local sale price in the luxury market was $1.6 million in the first half…that’s about 3.3 percent below the average in the first six months of 2016.” With this in mind, it is important to price your home appropriately for the current market.
3. Highlighting Uniqueness: Drawing in high-end clientele means you are appealing to a certain audience that is sure to be looking at other luxury homes. With that said, think about what separates your property from the rest. Your home is entirely unique and has specific marketable strengths. Luxury homes most often have high-end features including but not limited to: fixtures, smart home technology, appliances, home theaters, pools, energy-conscious controls, lighting, and security systems. A great luxury realtor will have a complete understanding of your home’s unique components, in order to best sell the uniqueness in a competitive buyer’s market.
4. Drawing on Location: Another key component in selling your luxury home is location. Location is key! John Hatcher notes, “In addition to knowing the market, it also helps to be a student of the area’s history, architecture and development, so you can point out elements and features that will be meaningful to the buyer.” Knowing the unique features of your location will help set your property apart from other luxury homes on the market.
5. Marketing Effectively: Understanding your buyer, pricing correctly, selling your unique features, and drawing on location all ultimately lead to your marketing strategy. Online and offline marketing should match the value of the home. Handing out a high-end glossy brochure versus a printed piece of paper may seem small, but first impressions and perceptions go a long way. Your offline marketing material can also use location and neighborhood information to help convey a certain lifestyle or story of your home. As far as online marketing goes, your agent will connect with their network of clients and other luxury realtors to find buyers most interested in your home. Your luxury agent knows how critical it is to have an online presence and will guide you in marketing your home with a competitive edge. Online and offline marketing are essential to presenting your home in the strongest way possible.
With these 5 tips in mind, our team would love to help you sell your luxury home. With our thorough knowledge of the luxury market we will achieve your perfect real estate transaction. Please reach out with any questions or comments, we look forward to working with you!
- “At What Price Luxury?” August 31, 2016 https://blog.kw.com/at-what-price-luxury
- “Luxury Home Sales Surge In First Half-But Prices Slip” July 16, 2017, Dennis Rodkin http://www.chicagobusiness.com/realestate/20170706/CRED0701/170709969/luxury-home-sales-surge-in-first-half-but-prices-slip
- OutFront Issue 13.1, Published on May 9, 2016: OutFront is a Keller Williams Realty publication focused on the Keller Williams advantage, success strategies among our associates throughout the world, and leading-edge strategies to help associates succeed in their market and grow market share.