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 over $1B in sales — spanning 32 US states and 11 countries — and our global Rolodex includes over 370,000 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.
In the last few weeks, we reviewed the process of selecting your agent, evaluating the competition, and knowing your market strategy. This week, we continue with the fourth part.
PART FOUR OF FIVE: STAY THE COURSE (BE PATIENT)
Based on what you learned from the data, the process of selling your luxury home could take a while. Some homeowners are fortunate, and their homes sell quickly. But, if this is not the case — if your home doesn’t sell in the first 90 days — there is cause to be concerned.
Our research shows that the largest factor in determining the price of a luxury property is the number of days the property has been marketed for sale (“days on market” or DOM). In today’s “Zillow world,” the total DOM are more transparent than ever. Depending on your market, for most properties in the US, somewhere between 90 and 180 days, DOM become exponentially more toxic, advertising loses impact, and a full or nearly full asking price becomes less likely. Further, luxury homes that don’t sell in this time period can remain on the market for an additional 1-3 years, and ultimately sell at a substantial discount to the original list price.
Your agent may encourage you to lower the price. You may demand more money be spent on advertising. But, before you do either, listen closely to what the market is telling you. And, believe it.
Consider your sales funnel. Are buyers making inquiries? Are they then taking the next step, and scheduling showings? What feedback do they give after they see the house? Have you received any offers?
If the phone isn’t ringing, the problem is most likely buyer reach or motivation. Price could also be an issue; however, the more one-of-a-kind your property, the less likely it is that a price reduction will work. Buyers in your category will typically inquire if they’re interested — regardless of price.
The only thing you’re doing by lowering your price is setting a new ceiling for your offer potential.
If buyers are coming to the forefront and giving you feedback, take it to heart. Make changes where you can. And, be patient. Understand that you may be in this for the long haul. You’re waiting for a particular buyer, and it may take a while for them to find you.
Next week, we discuss how to super-charge your sale.