Sellers who play in the high-end of the real estate market have certain advantages that others simply don’t. Typically, high-end sellers can wait for the market to bring them to a price that is best for them, whereas other sellers may be forced to accept a lesser offer or even short sale to get out of a mortgage. High-end sellers also have additional options to rent a home out instead of taking a loss on the property.
Sellers in this mold are suspect to certain behaviors as well. They know the math when it comes to their real estate transactions. They don’t like to throw away money. And their personal time is scarce.
High-end sellers sometimes recognize the little nuances that others may not. For example, high-end sellers might not be as worried about rates as most because they understand that the mortgage interest deduction counters any concerns with rising rates.
Typically, a well educated high-end seller is looking for certain criteria before they choose to list their home. First, market inventory must be low. This is a very basic economic principle that most high-end sellers recognize. When inventory is low, the risk of selling is decreased because the expected minimum sale price is greater.
Second, and really, counterintuitive to the first point, high-end sellers are looking for inventory that is high enough to guarantee that they can find a new suitable home without having to rent.
Also critical to high-end sellers is the premise that shorter is better. High-end sellers prefer that their home be on the market 30 days or less, simply because they don’t appreciate the breach in privacy, personal time, or security that comes with showing a home. Furthermore, high-end sellers understand that a home on the market for more than 30 days tends to attract lowball offers. Typical high-end sellers are looking for a list-price to sale-price ration that is greater than 90%. The frugality of high-end sellers keeps them from offering discounts and cutting their list prices.
High-end sellers tend to understand the economics of the area as well, noting changes due to population growth or industry growth. Typically, they understand the impact of a new employer or new development.
If you are buying or selling luxury real estate, would classify yourself as a high-end seller, or have an interest in the luxury market, The Jason Dawson Team is known for its work in this area. Contact us today!