What are the top considerations of luxury home sellers? HINT: Price is #2 on the list. So, what's #1?
Every day, RE/MAX Sales Associates across Canada work with luxury buyers who are searching for their dream home, and luxury sellers who are looking to transition into the next chapter of their lives.
I reached out to our RE/MAX Influencers—a panel consisting of RE/MAX Sales Associates from throughout Canada—to find out the top concerns of luxury buyers and sellers.
Buyers’ Top Concern – Location
When we think of luxury buyers, we are often quick to think about stunning homes and unusual features, but our RE/MAX Influencers agreed that luxury buyers are as interested in location as any other segment of the market.
The desirability of that location may be affected by numerous factors. Some buyers are looking for privacy; others are looking for a magnificent view. Many want to be near the best school in town; there are those who merely want to live next to friendly neighbours.
Our RE/MAX Influencers agreed that it’s incredibly essential for Sales Associates to understand the demographics of each neighbourhood.
“I know my market inside out. Typically, that is the confidence [buyers] are looking for,” says Heidi Lussi, RE/MAX Vernon.
Buyers’ Concern #2 – Price
With most luxury properties exceeding seven figures, it may be no surprise that the number two concern voiced by many luxury buyers is cost.
Luxury buyers want to make sure that they’re not paying too much, and that the neighbourhood will hold its value. Many also have questions about future property tax assessments and other costs associated with renovations.
“At the higher price points, sometimes finding comparable properties is difficult. You have to provide your buyer with as much research and information as possible so they can make an educated decision,” says Ron Neal, RE/MAX Alliance.
Buyers’ Concern #3 – Quality/Features
The third most important concern for luxury buyers is purchasing a home with quality workmanship.
High-end finishing, modern appliances, smart home features, a pool, a significant lot size and garage space were all listed as critical features for today’s luxury buyer. Many are interested in a “wow factor” feature that is just not found in your average residential home.
“As a Sales Associate, it’s important to be aware of the most reputable builders and developers so we can steer our buyers in the right direction,” says Leslie Cannon, RE/MAX Crest Realty (South Granville).
Sellers’ Top Concern – Marketing
When it comes to selling a luxury property, the top concern is how the house is marketed.
Luxury sellers want to know if their home is getting the particular exposure it deserves. They also want to confirm that the Sales Associate has the experience and contacts necessary to get the highest possible selling price for their home. Finally, they want to make sure that the home’s key features are given the attention they deserve.
Our RE/MAX Influencers stressed the importance of marketing luxury homes nationally and internationally, identifying the right buyer and then advertising accordingly.
“I always make sure to explain my standards are high and I educate why I will be doing things a certain way,” says Rhonda Navratil, RE/MAX River City.
Sellers’ Concern #2 – Pricing
Those who are selling a luxury property want to make sure they get offers that reflect what the property is worth.
Sales Associates must be able to justify their pricing by showing comparable properties that substantiate the listing price. It’s incredibly important that the real estate agent has a keen market knowledge.
To ease their sellers’ concerns, our RE/MAX Influencers said it’s important to explain what to expect during the negotiation process, so there aren’t any surprises down the road.