GAZELLE WEST Volume 1, Issue 1 | Page 62

CAREER & MONEY SELLING YOUR LUXURY HOME It takes knowledge, strategy and finesse By Tracy Ellis Selling a million dollar-home in an expensive development or on acreage of its own is not the same as selling a fixer upper or a median or averagepriced home. 62 It takes a totally different strategy. In real estate, as in life, it’s always best to make a great first impression. Marketing and pricing of your home (in any price range) is critical from the start. If your house sits on the market for more than a few months, it begins to develop a reputation….and not a good one. When buyers and their agents find a listing that’s been on the market for a long time, they usually throw out lowball offers. And I can’t blame them. It’s a fair assumption that if another buyer hasn’t been willing to buy it at the current price, why should they? This creates a vicious cycle. It’s even worse for sellers of luxury listings, because instead of resorting to a price cut of $5,000 or $10,000, they often need to trim the listing GAZELLE WEST price by $50,000 or even $100,000. The higher the original price, the greater the reduction needs to be to stay competitive. Affluent buyers buy for completely different reasons than typical homebuyers. The higher you move up the home price ladder, the more important intangibles become. In other words, luxury homes are more about art than science. On a typical $100,000 home, the numbers drive the entire process. The buyer closely monitors the potential monthly mortgage amount, the utilities, the interest rate and closing costs. They are very much concerned with the “science” of the deal. They are restricted by the numbers….their budget is the main driver of the process. This is not true of luxury buyers. Of course, affluent homebuyers still pay attention to the numbers. They won’t allow themselves to get “ripped off.” But instead of being limited by a strict budget, affluent buyers generally make their buying decisions