For all you might see in advertisements, luxury is less about the materials you’re purchasing and more about the lifestyle that comes with them. Luxury real estate is no exception. Buyers aren’t just acquiring a property; they’re buying the lifestyle that comes with it, too.
Finding Luxury and Luxury Real Estate
When you think of luxury, what comes to mind? Fast cars, high fashion, and million-dollar views all likely make a list, but let’s focus on those views. Many people believe that having one or more beautiful places of residence is the foundation of a luxurious lifestyle.
Common wisdom holds that the three things that matter most in real estate are location, location, and location. While it’s certainly a critical part, there are other considerations for luxury real estate. We would argue that the saying should be updated to be “location, storytelling, and service” instead, although that doesn’t have the same ring.
You can find luxury real estate nearly anywhere, but the city of Dubai is one of the best-known examples. One of the most popular tourist destinations in the world, Dubai is known for its extravagance, affluence, and architectural marvels.
However, there are up-and-coming neighborhoods worldwide, particularly in countries near the United Arab Emirates. Any real estate company in Qatar will tell you that the combination of warm weather, an extensive coastline, and low to nonexistent taxes have led to a luxury real estate boom in the area.
More Than a Home
Foto di thibaultjugain da Pixabay
If someone is looking for a second or third home, the benefits of the property as a living space are less important. The number of bedrooms a property has or the quality of nearby public schools will rarely be the deciding factor for someone with the budget to purchase a private island.
A real estate agent needs to identify and articulate the value property will provide beyond its function as a home to sell luxury real estate successfully.
A penthouse in Hong Kong or Manhattan will attract a different client than one of the Florida Keys. If an agent doesn’t understand why then they’re going to have a hard time succeeding. You can buy almost any amenity for the right price, but some of the most sought-after are:
- Space, both in terms of land and square footage.
- Privacy for a relaxing getaway.
- A location near the best restaurants and shops a city has to offer.
- Nearness to water.
Luxury means a selling strategy tailored for a real individual, not a buyer persona representing a broad group.
Telling a Story
Foto di Richard Mcall da Pixabay
One characteristic that draws clients searching for luxury real estate to a particular property is the story it tells. More accurately, they’re drawn to the story a real estate company or agent tells through the pictures, videos, and written description of the property.
How many times have you looked at a real estate listing and discovered that, despite the price tag and curb appeal, the pictures of the home’s interior are blurry, poorly lit, or simply dull?
Video tours are a way to get around this issue. We don’t mean a shaky walk-through shot on a smartphone, either. It’s worth investing in a professional service. Selling luxury real estate comes with large enough profit margins to make it worthwhile.
Rather than an actual walk-through, you should shoot the video more like a commercial. Having actors modeling the lifestyle the property would provide—whether that means breakfast on a balcony overlooking the ocean or lounging by a pool—is far more persuasive than any picture could ever be.
Excellent Service
Earlier, we mentioned the profit margin that comes with selling luxury real estate. It’s impressive, particularly when compared to the general real estate business.
The median price of a home in the United States was $200,000 in 2017. Prices have increased since then, but not enough to make the five or six percent commission many realtors earn per sale substantially.
Charging a commission fee of five percent on the sale of a property selling for five million dollars—and that’s on the lower end for luxury real estate—results in a commission of $250,000. For that kind of paycheck, a client will expect the highest possible level of service from the real estate company they’re using.
That means working directly with a trusted agent and having their undivided attention. A few emails, a half-hearted tour or two, and some faxed documents aren’t enough to compete in the luxury real estate market.
If a high-end client wanted to shop through any of the numerous websites devoted to real estate, they would. However, the human element and quality of service that come with using a real estate company dedicated to luxury are irreplaceable, and that’s what draws clients in.
Luxury is a lifestyle. Whether you’re in a financial position where you’re ready to embrace it, or you’re merely dreaming on your lunch break, real estate is the place to start.