As a result of the growing population, many real estate economies around the world experienced rapid growth and investment over the past year and a half. In Toronto specifically, we’ve seen the values of homes of all categories rise from 20 to 60 percent.
One real estate market segment we’ve seen particular affected by this has been the luxury market. In fact, if there’s one thing this global pandemic has taught us, it’s that there’ll always be a market for luxury, no matter how unpredictable the world becomes.
If you’re planning on selling your luxury home this fall, know that you won’t be alone, and in order to earn top returns for your home, you’ll need to put some serious thought into your strategy. To help point you in the right direction, here are three tips we find work particularly well when selling luxury homes.
1. Lavish Preparations
If you want to receive offers for your home within the luxury price bracket, your home simply needs to look and feel like a luxury home — both inside and out.
Even if your home is located in a coveted neighbourhood close to many desirable local amenities, and has plenty of square footage both inside and across your large lot, these days that’s still not enough to attract the very highest prices.
The biggest difference-maker? How you prepare your home for sale. When it comes to selling luxury homes, the old adage “you need to spend money to make money” is all the more true. When we help prepare our highest ticket luxury homes for sale, it’s crucial that we pull out all the stops in order to make a home appeal to the most sophisticated luxury buyers.
A full-fledged luxury home preparation includes a few key investments. Learn more about The Major Costs Of Selling A Home here.
A few of things that result in the highest returns on the luxury market include:
- Addressing any necessary renovations or repairs
- Professional cleaning and decluttering
- Luxury standard staging services (You can learn more about our staging services here.)
- Luxury standard landscaping service
- A complex, high-quality digital and print marketing strategy
Looking for more insight into how to prepare your luxury listing for success? Click these to get more detail:
- Elevate Your Lifestyle By Maximizing The Sale Of Your Current Home
- How to Find the Right Realtor® for Your Luxury Listing
- Luxury Lingo: Elevated Real Estate Terms and What They Mean
- What Is a Real Estate Exclusive?
2. Priced To Perfection
While you might think that pricing a luxury home is among the easiest, most straightforward aspects of selling one, there’s actually much more that goes into it than you might think. And, in actuality, it has more to do with the state of the current real estate market than anything else.
In the world of luxury real estate, professional pricing strategies are somewhat of an art and somewhat of a science. Get a more detailed explanation by reading our blog Pricing Luxury Real Estate: What Makes It Different here.
In today’s market, there’s a greater demand for homes than there is a supply of them. This is what’s called a seller’s market because sellers have more of an advantage when it comes to negotiating deals. As you might expect, seller’s markets generally tend to result in higher house prices across the board.
Seller’s Market Pricing Strategy: An Example
It can sometimes make sense to price your home — especially a luxury home — at below its estimated market value. Why? When most of your home’s comparable listings are priced particularly higher than yours, your luxury home reflects a much better value to the buyer market — even if your target buyer demographic is extremely wealthy.
When executed well, this strategy often results in a bidding war for your home. By inciting healthy competition between eager buyers looking to score a deal, their drive and determination to win the bidding war for your home often see the final sales price rise to far above asking, and with any luck, far above what your comparable listings will sell for too.
However, bear in mind that this is just one strategy. When it comes to listing your home, your agent will be able to take into account all the variables to create the pricing strategy that will work best for you.
Eager to browse through your home’s comparable luxury listings? Find them here in our collection of Luxury Featured Listings.
3. Maximize Your Marketing Strategy
In the world of luxury real estate, in order to attract the highest echelon of buyers, you must do more than just prepare your home beautifully and execute an astute pricing strategy. In this day and age, the marketing of homes has become almost as important as anything else — especially within the luxury market.
The idea here is not to extend the reach of your luxury listing to as many people as possible but to have your listing appear in front of the eyes of only the most qualified luxury buyers around the world. Whether your luxury home’s eventual buyer is a foreign investor or a local real estate enthusiast, a comprehensive marketing strategy should cultivate healthy competition for your home between both demographics of luxury investors.
Traditional Vs. Digital Marketing for Luxury Homes
When talking about real estate marketing strategies, there are two main channels; traditional marketing and digital marketing — both of which must be maximized to earn the highest price for your listing.
Traditional strategies typically cover things like the creation of magazine-quality photography, show-stopping promotional events, luxury standard home showings, and tours. This also always includes the production and targeted distribution of high-end physical marketing assets like feature sheets, flyers, and other professional-grade print advertisements.
Luxury home showings in the pandemic era need to work a little differently than traditional. Make sure you’re on top of the latest showing trends by reading our blog post Home Showings: What Sellers Should Know.
Generally speaking, traditional marketing strategies are implemented to spread the awareness of a listing within the local luxury market — in our case, across Toronto and the GTA. However, digital marketing strategies have the power to attract a much wider audience.
Through the creation of digital marketing assets such as professional videography and drone footage of a listing, bespoke listing-specific websites, 3D renderings and virtual walkthroughs, and more.
Once those are created, they’re distributed through channels like social media, retargeting ads, email marketing, industry-exclusive listings pages, global luxury real estate listings pages, and through high-end investor-specific intermediaries.
In today’s digital era, social media marketing strategies are much more complex than they seem. Read about Why Your Agent Should Be A Social Media Expert here.
Continue reading about how to sell your luxury Toronto home for its highest potential value by visiting these seller-specific links:
- Why Every Seller Deserves Luxury Real Estate Service
- How To Sell Your House In Toronto
- Expert Toronto Home Staging Services
- Selling With Ana