5 Factors to Consider When Selling a Luxury Home

Factors to Consider When Selling a Luxury Home

Do you have a luxury home to sell? Before picking just any old real estate agent and setting your asking price to what they suggest, you should consider the factors that go into selling a luxury home. After all, mispricing your home can cost you hundreds of thousands – even millions – of dollars and lost time that can never be replaced. Here are five of the top factors to consider before selling a luxury house! 

Top 5 Factors that Affect Selling a Luxury Home

Location

The old real estate saying of “location, location, location” is the first major thing to consider when pricing your house to sell. Buyers care a great deal about your home’s location, the neighborhood and surrounding community. Therefore, you must consider all of those things before selling.

For example, when selling a luxury home in Las Vegas location factors include whether or not the community is gated, if the home has golf course frontage or views of the Las Vegas Strip, what amenities the community offers and how close it is to shopping, dining and entertainment. Those are just a few factors a good real estate agent will consider when helping you figure out your selling price. 

A location near the best schools or in a specific school district can be a major factor when selling a high-priced home. Don’t forget about proximity to entertainment and the area’s overall reputation, either.

The bottom line is that the location plays a big factor when selling a luxury property. Consider it carefully or you may pay the price when it comes time to sell. 

Marketing

Some sellers and old-school real estate agents won’t like hearing this, but the marketing of your home plays a major factor in getting it sold at the highest price. Marketing a luxury home goes far beyond taking great photos and video. You and your agent should consider the positioning of the property and who you are trying to attract as a buyer. 

Sophisticated buyers want to be wowed by your listing. If you have a multi-million-dollar property, taking cellphone or low quality photos and popping it on the MLS probably won’t cut it, if you’re going for a high asking price. Staging the home is also important when selling luxury real estate. The additional expense can be well worth it.

If you’re selling an ultra-luxury property in the upper millions or tens of millions of dollars, marketing should include getting positive press coverage, also known as ‘doing PR’. On top of that, listing with a real estate agent that has a large personal database of affluent buyers can make the difference in your house selling or not getting sold. 

The 2nd factor you must consider when selling a luxury property? Marketing!

Selling a Luxury Home

Size

When it comes to luxury real estate, size does (often) matter. The square footage of your home and lot play important roles in setting the asking price and how attractive your home is to certain buyers.  

A larger home means more space, additional rooms and the ability to make customizations throughout the home and property. People also like to compare square footage numbers and price per square foot, so a larger home may do better when compared to a similar but smaller listing.

In certain expensive markets like Los Angeles and New York City, you might find much smaller homes and condos that are selling for way more than their comparable in other markets. This goes back to the location factor, as the demand for real estate and competition for properties is higher in those markets. Buyers simply anticipate smaller homes and expect that fact to be made up for with better amenities and location. 

Don’t forget that size of your house and lot should always be considered before listing your luxury home.

Real Estate Agent

There’s a reason why certain luxury real estate agents sell all the biggest and most expensive homes each year: they usually know what they’re doing. If a real estate agent has a successful track record of selling luxury homes in your area, it may be worth interviewing them and putting them into consideration for the agent you select to list your home. 

Hiring a novice that’s never sold a home of your caliber is a decision you shouldn’t take lightly. If they misprice your home or can’t procure a buyer and your home sits on the market for a long time, you’ve now hurt your chances of selling at the price or in the timeframe you desired.

A good rule of thumb is to interview several agents when selling a luxury house, and don’t make a final decision until you feel entirely comfortable with your choice. 

Factors that Affect Selling a Luxury Home

Amenities

Amenities found in the best luxury communities oftentimes include a clubhouse, resort-style swimming pool and spa, country club golf course, guard-gated entry, sports courts and paths for walking and biking, among others.

If your home is amazing but located in just a regular neighborhood with no amenities, you probably won’t be able to sell for as much money as a comparable home in a nicer community. That’s why it’s important to consider the amenities in your neighborhood when buying a Las Vegas luxury home in the first place, because they can matter when you try to sell. 

When selling a luxury condo, the amenities your building has along with the price you have to pay for them in HOA fees, are a major point of consideration. Someone that’s spending $1 million for a high-rise condo probably won’t want to have to leave the property to hit the gym or relax poolside.

Factor in your community’s or building’s amenities when setting the price and marketing your luxury home for sale. 

In Closing

Above, we’ve shared five of the most important factors to consider when selling a luxury home. While these are a great place to start, there’s more that goes into getting your home sold at the asking price you desire. 

That’s why you should always consult with top real estate agents in your area and do your research on what other comparable homes are selling for. Then, you’ll have a better chance at a great (and profitable) experience selling your luxury home.

If you have a luxury home to sell and want to know how much you may be able to sell it for, get a free home value assessment

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