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The Low-Down on Listing Luxury Homes

Posted by Elite Home on Monday, December 10th, 2018 at 4:33pm.

While it’s true that no two homes sell the same – not even two homes of the same type in the same neighbourhood – it’s especially the case that no two luxury homes will sell the same way.

Realtors spelling success for luxury home listings 

When it comes to selling & buying luxury homes in Calgary, it takes an even more measured approach than selling any other type of real estate transaction.

The Matter of Matching Homes & Buyers

Rookie realtors will often take a “spray & pray” approach with their listings, which means they will plaster their newest listings in as many places as they can. Soon enough though, anyone with a shred of smarts will realize this is a giant time waster!

This “spray & pray” approach definitely gets more eyes on the listings, but it also gets a lot more people who are only casually interested in taking a look. These casual buyers will often make viewing appointments only to flake out, or will submit offers that are barely worth the time it takes to write them out.

Cartoon of a realtor saying no to a lame property offer

Whether you’re selling a “regular” residential property or a luxury estate, this approach leads to disgruntled clients and disappointing leads.

A Smarter Selling Strategy 

No matter what type of property you’re selling, the trick to a successful listing is implementing a smart sales strategy.

While a single family detached dwelling in Cranston takes a certain type of listing strategy, showing and selling an apartment-style condo in Lake Bonavista will require a distinctly different set of tactics. Listing agents need to consider what potential buyers would be best suited for a property and then make sure that property gets the right interest from the right buyers.

Running with this Cranston example, a good realtor (like any of the good folks here at Elite Home Real Estate) would know the community demographic information for that specific area – this includes such expected information as median income levels, family size, and average resident age…

But a good and experienced realtor will also know smaller details, such as whether the community is more liberal or conservative in their social attitudes, average level of education, and even what kind of vehicles the majority of residents prefer to drive.

However, the thing is that when it comes to prospective homebuyers for Cranston houses or Lake Bonavista condos, there’s a comparatively larger pool of potential purchasers... Luxury homes are a different puzzle to piece together! 

Cartoon of two realtors holding puzzle pieces 

Lifestyles of the Luxury Homebuyers

When it comes to successfully listing a luxury home, a savvy real estate professional will know how to market a property in a way that gets the most attention from relevant, genuinely motivated buyers. But a smart realtor will do this while also dissuading those who are solely interested in a live, up-close & personal episode of “lifestyles of the rich and ritzy”.

Simply put, successfully listing a luxury home demands a whole lot of expertise and experience.

Luxury homes have a relatively small pool of buyers here in Calgary. And, given our current economic climate, the competition for attracting these buyers is pretty darn hot.

It’s because of this that realtors who include luxury homes in their portfolio need to have a keen sense for the details that make such a home uniquely appealing to this small, competitive pool.

What are the Home's Biggest Features? 

Is there a media room? A library? Indoor pool? Maybe there’s a huge garden with award-winning landscaping? In other words, how is this property different form any other luxury home on the market right now? Step #1 is to identify these features and use them wisely.

Different features will obviously appeal to different buyers, but a savvy realtor will be able to match up relevant buyers with the right kind of home. This doesn’t just ensure a stronger likelihood of a quick sale; it also won’t waste anybody’s time by showing the wrong kind of luxury home to clients… After all, why would an urban socialite who doesn’t even like horses want an acreage with a full stable and riding facilities? (Answer: They would not. But this segues nicely to our next point…)

Know the Right Buyer's Lifestyle.

This includes everything from knowing the ideal buyer’s preferred architectural styles to how old their children are and what their hobbies include.

 

Let’s say you’re listing a large estate home on a forested 2-acre lot near Priddis. The unpaved driveway to access this property is winding and narrow, and there are frequent sightings of coyotes and bears in the area.

Right away, the right buyer for this type of property would be a nature enthusiast who prefers rural tranquility to the hustle & bustle of city life. Someone with a vehicle suited for unpaved rural driveways, maybe no small animals that are allowed outside unsupervised, and an affinity for a more sedate lifestyle.

A good start, but there are more things to consider here.

The rural road leading to the property is not a priority route for snowplows. It’s an hour’s drive to Calgary’s downtown core and the nearest elementary school is a solid 45 minute drive away.

With this in mind, the property would not be a good fit for someone who has to regularly commute to downtown Calgary. Nor would it be an ideal fit for a buyer with young children, (unless they’re homeschooling).

Further, what is the buyer’s budget? Can they narrowly afford the property, or is this well within their budgeted price? And how about the ongoing costs of owning such a property? A large rural estate tends to cost more in maintenance and upkeep than something more urban, and the utility bills for such a large home would inevitably be heavier than something with less square footage.

Make Sure the Price is Right.

Even for non-luxury abodes, pricing a property appropriately is a skill that takes a lot of experience and knowledge to master. A real estate agent needs to find the right pricing balance to ensure the home sells in a timely manner, but at a strong price.

However, luxury homes add another facet of complexity to the property-pricing puzzle. Pricing out what each additional amenity is worth can be tricky, especially if there isn’t much else in the local market to compare with. 

Again, this is where experience and expertise really comes into play.

Even if there aren’t many (or any) other homes with similar luxury features, an experienced and knowledgeable realtor will be able to draw upon her or his industry expertise to establish an appropriate listing price.

 

Throughout this post, we’ve (not so subtly) emphasized the importance of having a knowledgeable, experienced, and smart realtor when listing a luxury home. This is because there are unique considerations that come into play when listing a luxury home, both here in Calgary and in most other cities. 

In many ways, selling a posh estate is similar to selling most other home types (such as identifying the kind of buyer the home would be right for and marketing it accordingly, capitalizing on the home’s uniquely appealing features, and pricing it accordingly). But the hyper-detailed nature of a luxury property listing demands an even more finely tuned listing approach.

If you have any questions about listing or purchasing a luxury property, or if you need the sound advice from a seasoned real estate prof, then don’t hesitate to get in touch with us – we know our stuff and are always happy to help.

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