Luxury home sales are being driven by a thriving economy and an influx of out-of-state buyers moving to Texas, according to the 2018 Texas Luxury Home Sales Report from Texas REALTORS®. Luxury homes are defined as those sold at $1 million or higher.
With $1.35 million as the median price for luxury home sales last year, working with luxury-home sellers and buyers seeking these properties can be a way to quickly grow your business. However, there’s more to working in this niche than landing a $1 million listing. Here are a few tips if you’re thinking about working with luxury clients.
Be Prepared for a Longer Listing
From January to October 2018, luxury homes in Texas spent an average of 94 days on the market, but generally spend more time on the market compared to lower-priced homes.
Cultivate Strong Connections
A luxury home isn’t going to sell itself, and neither are you if you don’t have good connections with other agents working in this niche. You may also want to reach out to other professionals who regularly work with luxury-home clientele, such as attorneys or accountants. Work on cultivating these important relationships prior to landing a luxury-home client and you’ll have an easier time locating prospective buyers and getting referrals.
Know Your Audience
Consumers in the luxury market may have different drivers and expectations than other clients you’ve worked with. They may be more sensitive about their privacy and have more restrictive terms about marketing or showings. And a well-known client likely doesn’t want your friends, family, and strangers knowing about your connection.
Get Comfortable With Pricing Strategy
Finding the right comps for luxury homes can be tricky, and not just because how much longer they stay on the market. You may also have to set a price based on indoor pools, surveillance systems, wine cellars, or completely custom features. This is another reason why having strong connections within the luxury home market will help you in a successful transition.
Fantastic insights! This article provides valuable tips for specializing in luxury home sales.