You may be reading this entry out of interest - you may be reading it because you are in the market to buy and sell luxury real estate - whatever your case I welcome you! Big goals and dreams are the starting point for success in life! Please read on for an all-round taste of the luxury real estate market as it pertains to London and area.
What is a “Luxury Home”?
I think the answer to this question is largely subjective. It is also a moving target! Generally speaking, the luxury home in the London real estate market today is considered over the $500,000 range. Even more specifically, over $700,000 is where you begin to see very unique, custom built dream homes. How do I know? Well, I asked LOTS of people
Over time I have been developing a niche specialty in luxury homes to compliment the other facets of my business. In the last year I have had the opportunity to represent 7 listings between $550,000 to $1,300,000. One thing is for certain, without experience in this realm it is truly impossible to grasp the true value many of these home owners have invested. You can see examples of these homes throughout the website - all photos are listings I have personally represented at some point. Nice Homes
How is Selling a Luxury Home Different?
Understanding the differences in selling a luxury home is based mainly on understanding the fine home buyer. Put yourself in the seat of a buyer - they have worked hard - quite often for years on end so they could one day enjoy the fruits of their labours. As a buyer this type of person is not likely to settle in many respects. They have definite needs, clearly outlined wants and most importantly a sense that it’s time to fulfill a long planned dream. For some it’s size, others it’s a “kitchen to die for” or like me it’s to find the perfect setting just outside the city. How do you cater to these demanding requirements? With a much more in depth selling approach
Think in terms of magnifying everything in a more typical transaction. More photos, better quality images, a more detailed website, glossy brochures, extensive feature explanations etc. When selling a luxury home, explaining all the information in great depth is key. Similar to this is putting everything in a nice “lifestyle package”
A lifestyle package approach is really about spending the time to profile the target buyer. What would someone buying your home likely be looking for - what type of lifestyle are they probably looking to achieve. Once this is established you need to delivery the message of the features in a step by step build up painting exactly the picture of the lifestyle they desire! Remember, in a typical transaction the mindset is often “this house works great!”... but another will be along in a couple of months that would probably suit us just as well. A luxury buyer quite often has been keeping their eyes out for YEARS!! The message of possible lifestyle needs to be delivered with absolute clarity and followed up with emotional triggers to get a seasoned “house waiter” off the chair into a buying position.
Seller expectations are also important. In most cases the time frames from listing to sale on a luxury home is longer in comparison. This is not a negative thing, simply a reality that needs to be understood. You will be dealing with a more focussed but less plentiful buyer, the first few weeks are key for identifying all the “house waiters” in the wings. It is imperative you have a crisp approach from the first day listed in order to capture this market. After the initial month, you will need to go into a mode of optimistic expectation. Patience is a virtue at this time - think of it as the last chances you have to enjoy your current setting and soak up every minute
Finally, be sure to choose the right person to represent your interests. Having a person without experience can be a major liability. Buyers who can purchase your property tend to have less tolerance for mistakes and misinformation. If you are working with an agent who doesn’t know the depth of knowledge required on the property, potential buyers will become frustrated with what is seen as an uncaring sales person who didn’t have the courtesy to educate themselves on the product they are representing.
Buying a Luxury Home
Purchasing your dream home is an experience like no other! One thing I always encourage my clients to do is keep the process an adventure - think of it as searching for treasure. A home hunt can get the best of you at times, with the proper perspective it can always be exciting and new
You first need to start with the basics - defining the dream! Where will it be (out of the city, in the city), what will it have (a pool, a sauna, a ravine lot), what will the layout include (main floor master bedroom, games room, three car garage, third floor loft), these are all examples of good questions to ask yourself. Spend some time, get it all down on paper. Might I recommend a specially designated coil pad? Keep this pad with you in the car, when you think of something new, add it to the list and rate it accordingly with a “must have”, “would be nice” or “absolutely not”
So now you think you know what you want right? It’s time to view your first set of homes. Take a snapshot of what is available today, be very inclusive in your approach at the beginning. One of the keys to the step previous is experiencing different homes. Chances are you are moving up into a new price range - perhaps there are qualities available in a home that you aren’t accustomed to are even knew existed! Viewing a few listings will probably trigger more ideas
After the initial viewings, if you didn’t find what you are looking for you will need to get into a scanning game plan. Develop a plan with your Realtor on how to communicate new listings - typically email is the best. Be sure this plan is wide range, experience is a key again. The luxury market has a way of working itself in many cases outside of the MLS umbrella. Be sure your agent is in tune with the market and will be privy to pre-listing information from other Realtors in the area.
Be patient. Remember, you are hunting for a treasure! Keep at it and don’t loose sight of the goal!
For additional information on the luxury market see www.londonluxury.ca
