Selling luxury homes is not for any agent. Luxury home sellers typically experience service excellence in every facet of their lives. Why shouldn’t they expect the same from their real estate agent or broker? They should. And why shouldn’t they receive it? They should.
In most luxury markets, a small handful of successful real estate agents represent the majority of the high-end transactions. We’ve partnered with the best of the best agents and brokers in every market we’ve worked in, so we know a great agent when we see one. Plus, all of our company managers were successful in the luxury brokerage business prior to starting Concierge — an aspect that sets our firm apart from others in the real estate auction industry. We are proud to know, understand and respect our broker partners.
All top luxury agents have a few things in common: utmost service, professionalism and market knowledge. Here are 4 things every luxury agent should know in selling your luxury home:
1. Your agent should know every historical stat and every listing in your segment of the market. Ask your agent how many homes they have sold in your price range — In the past year… five years… ever? Make sure they can tell you about comparable market data, including recently sold properties and high and low sales records. Allow them to educate you on the other competitive listings currently on the market, and keep an open mind. You should pay attention to all active properties in your price segment, as although you may not consider them competition, buyers will evaluate them in comparison to yours.
2. Your agent should be familiar with absorption rates. Absorption rates in luxury real estate markets nationwide have fluctuated dramatically in the past five years. Many markets experienced very few high-end sales particularly in 2008-2011, so one or two transactions affected the absorption dramatically. Today, with more units moving, local rates are becoming more constant; however, they still vary widely from one market to the next… and from one property type to the next. At Concierge we constantly watch absorption on a national basis, and while most markets are picking up traction, in some markets the average amount of time it could take to sell an ultra-high-end property is still five years plus. Make sure your agent knows the local absorption rates in your market, and base your decisions on a realistic timeframe for sale.
3. Your agent should be honest. In high-dollar transactions such as luxury real estate, brutal honesty is the best policy. You need to know if the market is down and absorption is struggling … or if the market is up and absorption is strong. If your list price is too high versus the competition … or too low (Beware of the consistent price-reduction strategy, which leaves you without options!). If your agent won’t be honest with you (and/or with him or herself) about where the market stands, it could not only cost you time but also hundreds of thousands of dollars.
4. Your agent should know other agents and buyers. This seems obvious, but networking, community involvement and friendliness are keys to success for any luxury real estate agent. Make sure your agent has a rolodex — err… rather, an iPad contacts list! — of fellow luxury agents and prospective buyers. Further, when your agent reaches out to them, those contacts should be happy to hear from him/her and excited to schedule a showing and catch up. A positive relationship may be the key to landing that perfect buyer for your property.
What do you want your luxury agent or representative to know about selling your luxury home before you hire them?
