Luxury homes are easier to sell than standard, lower-end residences.
But there’s a caveat.
Selling luxury homes is only easier to sell IF. This is a huge if.
If you have a solid system in place.
What do I mean?
Luxury Homes are the Best of the Best
Luxury real estate is the pinnacle of all home living, lifestyles, and pretty much the most visible verification of wealth.
It’s the best of the best for the ones in society who have succeeded the most, or fell into success, whether that be by family or relationships.
As luxury real estate agents, there’s way more for us to talk about in luxury homes compared to just a standard home that’s the exact same model as the one down the street.
Most luxury homes are custom. They can leverage a story.
How It Affects Marketing
Luxury real estate requires a stronger marketing plan than general real estate.
If you’re a real estate agent looking to break into the luxury market, read my luxury marketing essentials article here.
Agents Don’t Have to Hide the Bad Features
You’ll be hard-pressed to find a luxury home that has undesirable features.
While in a standard home you can find a plethora of problems. Problems simply aren’t as common in a high-end home.
In fact, there are usually too many good things in luxury homes that it’s hard to pick the focal point of your advertising.
Whether it be a grand fireplace, sleek kitchen, or a sprawling deck that overlooks a city. Luxury homes can have a never-ending list of features that would win any buyer over.
Don’t worry about hiding the bad things about the house.
Visual Click Bait
As you scour through Facebook, you’ll see a ton of ads talking about this new vacuum that cleans your rug like new and the local dog kennel showing off their care for that cute Pug.
The Pug caught your attention, didn’t it?
Well if you scroll through your feed and see a $200,000 house and then a $2,000,000 house.
Which one catches your eye?
I know it’s not the $200,000 one, even if you can’t afford the other one.
If you’re a luxury real estate agent and you nab a listing of your own. When you post that on your social media pages (which if you aren’t, you’re losing, and you can read my full guide on how to sell a luxury home), you’ve already won the attention of your audience.
Because your pictures will be far more appealing, you’ll stir up a ton of traffic compared to the standard home.
Everyone sees a normal house every single day. Literally everyone!
It’s not eye-catching either!
But the second someone drives through a beautiful subdivision filled to the brim with stunning luxury homes. Everyone in the car is admiring what they see.
Luxury homes simply drive engagement through the roof, making it that much easier for you to gain traction with an audience and sell the home.
Big listings increase your shareability, which ups your engagement, thus, upping your likelihood of selling.
And I’ve learned a valuable lesson in my career.
Never underestimate the power of the share button.
Easier Implementation of Video Marketing
On a fundamental basis. The larger the space you have to work with, the more there is to capture on video.
Plain and simple.
You can only take so many shots of the same living room at a different angle before your audience gets bored.
With luxury homes, every room is a new story. Audiences are excited to see what’s next and can’t wait for you to move to the next section.
I walk through luxury homes in person all the time and I still find myself watching property tours longer than I should.
Especially in an era where video marketing is the future of the real estate industry and the driver of digital media. Did I mention is garners 12x as many shares as an image.
Bigger Prize for the Agent
There’s more money on the line!
Not just in terms of sales price, but the professional fee the agent will collect.
If a luxury real estate agent is set to earn 3% of a million-dollar sale price. In one shot, they just made $30,000.
The higher the price tag gets, the crazier things become.
There’s a lot in store for the agent who lists a luxury home. If they want to get paid, they better get the house sold.
I don’t know what human being sits around all day when they could be making more money than people make in a year, a whole year, in as little as a month.
Luxury real estate agents have something to be motivated about.
There’s Always Cons
Nothing is without its negatives, despite how amazing luxury real estate is.
Luxury real estate markets are generally smaller than the overall market. This is an obvious takeaway, but I need to state it anyways.
A smaller market means luxury real estate agents need to pay attention to the audiences their marketing to and be very deliberate about it.
Precise targeting in Facebook, LinkedIn, and Google Ads is a must. Strategic creatives (the actual ad), and the number of channels being used is essential as well.
I wrote an article about how to become a luxury real estate agent.
One of my main points was that you need to specialize in luxury real estate and commit to it if you really want to be a luxury agent.
This is a con because as an agent, everyone is no longer a prospect. You now focus on a very select and small group of individuals, which is risky.
The rewards can be immense, but it’s certainly risky.
For clients, however, using a specialist in luxury real estate to sell your luxury home is a requirement in my opinion and you can read why in my other article.
It Can Be Expensive to Market
Staging luxury homes can be expensive, especially the bigger ones.
But as a necessity in creating a solid look for the lifestyle an agent is attempting to market, it’s a needed expense.
Marketing, in general, can be costly, but as a luxury agent specifically targeting small groups of affluent individuals, it takes quite a pocket to get homes sold.
Luxury real estate is definitely easier if the agent knows how to leverage systems that maximize exposure.
But when they do, it’s hard to put beautiful homes in front of potential buyers and not tug at their heartstrings.