I define high-end homes as 2 times the market average and luxury homes as 3 times the market average. In Sacramento area the average home price is about $314,000. So a luxury home will be somewhere around $900,000. If you thought there are not too many luxury homes in Sacramento, think again.
I have looked at the three counties around Sacramento for 2017 and here is how the luxury market was last year. I have looked at homes that were $1 million and up.
If you think you are a badass when you double end a deal as a real estate agent, I bet you will feel like Superman when you triple end it.
For those of you that know, in luxury real estate, it's all about value and emotions, but emotion comes first. A buyer will easily ignore the home features, if the property it's in the right neighborhood and has a history (aka famous previous owner). Why is that? Because expensive features can always be added, but location and history of the home cannot be transferred to another home. This will give the buyer a sense of superiority (aka great emotion).
We all seen the underdog win competitions. Be it the newbie in sports, when Joseph Schooling defeated Michael Phelps at 100 meter butterfly, or in IT, when Google became the biggest search engine and overtook Yahoo, and so on. Underdogs can beat their bigger competitiors and become great companies and heros for the rest of the world to see. So here is how the rookie agent can possibly sell your home and beat the experienced real estate firm.
Today I have learned a valuable lesson in luxury real estate. First when you think luxury, you probably think expensive cars, lots of money, big mansions and super expensive fashion clothes. Now that we got that down, let me show you what I learned about selling expensive mansions!
In real estate, there are times when the sellers have all the negotiation power (sellers' market) and times when buyers make the rules (buyers' market). It holds true for the majority of homes, even million dollar homes, but not always. Why? Because a luxury home, requires one of a luxury buyer.
We all know that wealthy clients get, most of the time, the biggest homes with top of the line features, but have you ever wondered what those features are and what they look like? On an earlier article "I Don't Sell Homes, I Sell a Lifestyle" you can see the entire list. Here I will focus on the Open Space Concept