At Concierge Auctions, we know luxury real estate. Our principals have touched every aspect of the business. In fact, we were born out of the brokerage community. As a result, our combined efforts have produced nearly $1B in sales — spanning 32 US states and 10 countries — and our global Rolodex includes over 350,000 contacts.
We maintain a pulse on the top luxury markets worldwide.
This 5-part blog series details what we think are the most important factors in preparing to sell your luxury home. We hope you find it useful.
PART ONE OF FIVE: SELECT YOUR AGENT
FRIENDLY BUSINESSIt is likely that you have personal friends who are agents in your area. When it comes time to sell your home, recognize their offer to help, but understand this: Many people who decide to employ their friends often encounter communication issues. Mixing business and pleasure can be touchy. We are not saying to bypass your friend, but put them through the same interview process that you would any other candidate. Address your expectations and set guidelines for communication.
MARKET KNOWLEDGEHow well does the agent know your segment of the market? Is he or she up-to-date on the current market dynamics — showing you the data that supports the market value of your property, including absorption rates and how long it could potentially take to sell your home? Trusting your agent is critical to enjoying a successful sale of one of your most important assets. Honest information can give you a clear picture on what you can — and can’t — expect with the sale of your home.
Tell the agent you want brutal honesty on where the market stands today.
You need to know the facts.
And, in many markets, they aren’t pretty. Most top-tier luxury areas are still experiencing heightened inventory levels — some with absorption rates of 5 to 7 years plus (calculated based on the current number of homes on the market versus how many have sold in the past 12 months).
If the agent is unable to give you an honest appraisal of the current market conditions, they are potentially costing you years of time and hundreds of thousands of dollars. Situations like these cause sellers to typically chase the market down and result in an unfavorable financial outcome.
GREATER REACH = GREATER RESPONSEDo your potential agent’s affiliations afford them access to networks of potential buyers and other agents, social media, and public relations specialists? Advertising opportunities go beyond the classifieds and online listings. Your agent must be able to put the information about your luxury property in the right hands, and that means identifying and activating potential buyers across the spectrum. Your agent’s personal network could be the difference in whether a potential buyer even knows about your home.
AGENT’S MARKET SHAREThis can be a tough choice, but you do want to know how many properties your potential agent has sold in your price range. At this point, you are looking for a strong listing agent and their ability to market and perform. (More on the right marketing later…)
Next week, we discuss evaluating the competition.