What goes into selling a seven-figure home?
A lot, according to local agents who deal with the big homes in prime locations.
And, it’s not just the home.
“In my experience, selling a million dollar home means you are dealing with a VERY discriminating buyer,” says Sue Ann Ogden of Suncastle Properties. “Because they have the ability to buy at that level, they are looking for the PERFECT property. Even the slightest flaw or feature not to their liking will kill the deal.”
Adds Selby Kaiser of Prudential:
“(A big) challenge is continuous communication with the seller, keeping them up to date about changes in the market, feedback on showings, and letting them know what you are doing to keep their property well positioned to reach the attention of potential buyers.”
Then, be prepared to spend the time.
“There is much more time consumed,” says Pud English of Palencia. “Everything takes longer: designing the plan, redesigning the plan and re-redesigning the plan!”
“The main thing is to have a plan that is discussed with the seller and laid out in a time line,” says Linda McMorrow of Prudential. “Sometimes it takes a year or more to sell a high end property.”
Although he isn’t in sales, home inspector Wally Conway has another perspective: he’s seen agents and buyers working together.
“High end homes tend to attract high end buyers,” he said. “In our experience, most of these buyers are exceptionally bright and successful people who are accustomed to being in control. They have earned the opportunity to purchase their palace based on an in-depth knowledge in a specific area and blend that with the ability to ask pertinent questions, then make committed decisions.
“Unfortunately, home buying is not their area of expertise, yet they have the same desire for detail and control. This makes for a special challenge to both agent and inspector. The challenge is to quickly earn the respect of the buyer. Once they are comfortable that your level of expertise in real estate is at the same level they hold in their field, things go very well.”
Adds Ogden:
“In this arena, you are typically dealing with extremely sophisticated sellers and buyers and your people skills need to be at their very best. One wrong move or one wrong word could easily cause things to fall apart.
“In this price range, the buyer knows what he or she is looking for, and will pay the price only if the property is right and we, as real estate professionals, perform beyond expectations.”
She says there’s a bright side: getting money.
“Generally, they are paying cash, or can determine how much or how little they choose to finance, so qualifying is not the issue.”
The potential buyer of a high-dollar home expects more, says Kaiser.
“The main difference is cost of marketing and market time. Although there are not several showings in a week or month, each showing requires a planned ‘script’ to demonstrate the features and benefits of the home and a complete brochure to give to the prospects as they leave.
“We believe that the agent should be present for all showings for proper presentation of the property and to secure the seller’s property during and after the showing. The level of service expected is higher. “
Your marketing strategy needs to be different, too.
“You need specialized marketing materials,” says Clare Berry of Berry & Co. That includes more sophisticated brochures and an advertising campaign that includes publications which reach the wealthy: the Wall Street Journal is a prime example. Many of these buyers are familiar with the higher end of technology, too — a CD is appropriate.
And, says McMorrow, remember that these sales take time.
“It doesn’t make sense to load all the advertising on the front end and have nothing planned for the full course of the listing,” he says.
Beware of those who are just there to look.
“Try to make sure that showings are scheduled with only well qualified buyers.It is amazing how many people get agents to show them homes that they cannot afford resulting in a waste of everyone’s time and a big disappointment to the seller.”