Funny story — and a bit of a cautionary tale for would-be “for sale by owner” types. Even the world’s richest man couldn’t sell his ultra luxury home himself. In spite of his 60 million followers on Twitter, Elon Musk failed miserably when he attempted to sell his home without an agent. After more than a year of no success, he hired a CØMPASS agent. The home was under contract within three weeks. And it’s not a surprise. In fact, the majority of homes in the luxury and ultra-luxury markets are sold by real estate agents. Here’s why.
The Secret to Selling Luxury Homes
Maybe it’s not such a secret. Selling homes in the luxury and ultra-luxury markets is as much an art as it is a science. There’s no standard formula that applies across the board. This market typically caters to a segment of buyers that are looking to fulfill wants and not needs. It’s about meeting a certain lifestyle. Selling to this market requires among many other things story-telling skills, discretion and a good network. Essentially, you need to understand the story of a home so that you can target people who best fit that narrative and then you have to have the network to reach them. Splashy clickbait headlines really don’t do it, as evidenced above.
It sounds simple and straightforward, but it involves any number of moving parts, including effective highly targeting marketing where more isn’t always more and an understanding of who your buyer is most likely to be. Beyond knowing who’s looking at any given time, where buyers are coming from, and which properties are catching their attention, a good luxury agent needs to inherently understand how to emotionally connect the buyer to the property. In this price point homes are definitely a want, not a need, and more often than not you are dealing with their assistants or attorneys rather than the principal themselves.
So what’s happening in this segment of the market as we turn the corner into 2022? Stay tuned for next week’s post for a peek into the sales and trends of the $5 million dollar plus luxury home market.