What Is Luxury Real Estate?
Typically, luxury real estate is any property above grade to the rest of the real estate market in terms of quality of the build, the location, and the magnitude of a property. But luxury property can also be very personal. To some, luxury could be privacy with beautiful city views, while to others, it could be a home with private outdoor space, far away from the city crowd. That said, luxury properties make up a small segment of the overall real estate market.
U.S. Luxury Real Estate Trends 2021
In 2020, the COVID-19 pandemic sparked a boom in the luxury real estate market.
According to a new report from Redfin:
U.S. luxury home sales surged 60.7% year over year during the three months ending Nov. 30. This is the biggest jump since 2013. The growth has also outpaced the 14.8% increase in sales of mid-priced homes and the 6.8% uptick in sales of affordable homes.
The pandemic is driving people away from crowded cities like New York City and California. Wealthy people who have the money to decide where they want to live are moving away from densely populated areas to places where there are private outdoor spaces and fewer crowds.
Additionally, the ability to work from home has given high earners an opportunity to flee the city in search of more space and privacy.
When many are confined to spending time at home, people now desire larger houses, more land, and the ability to be outside all year round. Some quick trends suggesting homebuyer's change in behavior are:
- Despite California being a tech hotspot, people are moving out to settle in places like Boulder for more space indoors and outdoors.
- Many of the tech markets are seeing a rise in demand for luxury homes. Dallas, Denver, Arizona, and Houston are experiencing more luxury home sales than ever before.
- Mansion Global reports that Florida is also seeing exponential growth in the luxury market.
Who Is Your Audience?
Your audience is a particular group of people looking to purchase a luxury property they can comfortably afford. For them, the luxury property purchase is mainly about their wants rather than their needs. But, they need to feel a connection with the property for a particular lifestyle and design.
How to Sell Luxury Real Estate?
The market for luxury real estate can be quite exclusive as only a specific subset of buyers are financially capable of purchasing a luxury property. And these buyers are likely to have several expectations if they are going to pay a considerable sum for it. We recommend these four tips to sell luxury properties successfully:
- Find the History Behind the Luxury Property.
Luxury home buyers want beautiful properties and great real estate deals, but they also want properties where they can see themselves living the experiences they dream of. That's where the story behind the property comes into the picture. Therefore, you need to work closely with the seller to analyze and understand their habits. Find out what made them fall in love with the property and built it the way they did. Don't miss out on any details in understanding the psychology of the seller's relationship with the property and their life in it.
If you want your buyer to connect with the story behind the property, you need to find out what experience your luxury buyer is after and provide it to them in the form of a story and emotions.
ProTip: If this strategy has to work, you need to ask the right questions and listen carefully to the stories of both the seller and the buyer.
- Professional Luxury Real Estate Photography Is a Must.
To showcase your luxury property listing, you'll need a large number of high-quality photos. If you believe in your photography skills, this guide on real estate photography can help you click better photographs. If you don't trust your photography abilities, it's best to hire the services of a professional luxury real estate photographer.
Suppose you don't want to hire a professional real estate photographer. In that case, you have a choice to partner with Styldod to edit your amateur photographs into professional-looking real estate photographs at a price that's too good to be true.
Styldod can also create a comprehensive album of imagery, including 3D virtual tours, virtual staging, and other visualization services that can give your property an added boost to appeal to prospective luxury buyers.
- Use the Power of Storytelling for Luxury Real Estate Marketing.
Once you got the story and the best pictures of the property, it's time to sell them through the art of storytelling.
The best way to do it is to create a cinematic video and add a key ingredient to it – the human presence. Build a script based on the story and use actors to tell it to people. The video should be stimulating enough for the buyer to feel the instant connection.
Therefore, your video should capture the buyer's imagination and connect them to the views, land, and overall feeling of them living their life in the property, even before they set foot into it.
Once your video is ready, you can add it and the other real estate photos on MLS. You can also create a custom website where photos, videos, 3D virtual tours, floorplan can be showcased.
Combining a good story with the latest 3D visualization technology is a perfect formula for selling luxury properties. Styldod's professional 3D visualization services can make your story about exclusive homes irresistible to luxury buyers. Contact us now!
Related Article: 10 Brilliant Real Estate Marketing Ideas
- Comparative Market Analysis
You need to look at various factors, including the property's condition, features, neighborhood, and more, before setting the price. Also, compare the home to recent sales of similar properties in the area. This can be challenging because it's hard to find comparable properties as luxury homes are unique, which sets them apart.
Selling luxury real estate is a little different than selling regular real estate. These four tips can help boost your chances of selling the property for the price it deserves. It might take more preparation and marketing, but you shouldn't have to wait too long to find someone with a vision that aligns with the property's price point under the current luxury real estate conditions.