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(Updated November 2012)
Due to the limited quantity of luxury properties and prospective buyers, the listing and sale of luxury real estate may present some challenges. However, with the right marketing mix and a little creativity you can connect your luxury listings with qualified and interested buyers—perhaps a multimillion dollar home could be converted into a winery, convention retreat center, or hotel, or maybe connecting with the international community will help increase the pool of prospective buyers. This Updated Field Guide explores trends and performance of the luxury market, and offers tips and techniques for success.
(K. Stockert, Information & Web Content Specialist)
Facts About Affluent Homebuyers
- Percent of first-time and repeat buyers with household incomes of $200,000 or more: 8%
- Percent of first-time and repeat buyers who bought homes priced $500,000 and more: 9%
- Percent of first-time and repeat buyers who bought homes 3,501 sq ft or more: 10%
Source: 2011 NAR Profile of Home Buyers & Sellers
The Luxury Property Market
Overpriced Real Estate? Well, Maybe it’s Art, (New York Times, Aug. 31, 2012).
High-end Homeowners Rushing to Beat 2013 Tax Increase, (AOL Real Estate, Aug. 8, 2012).
3 Reasons the Luxury Housing Market is Sizzling, (US News & World Report, June 1, 2012).
Luxury Homes Spur Bidding Wars in L.A. as Market Rebounds, (Bloomberg, May 17, 2012).
Time to Sell Penthouse. The Russians Have Cash, (New York Times, Apr. 3, 2012).
Miami-area home sales dip in January, (Mortgage Banking, Apr. 2012). Q
As Prices Soar to Buy a Luxury Address, the Tax Bills Don’t, (New York Times, Oct. 15, 2012)
Luxury Living, (San Angelo Standard-Times, Sept. 13, 2011).
Are McMansions Coming Back in Style?, (Wall Street Journal, June 29, 2011).
Pricing the Luxury Estate Course Handout, (National Association of REALTORS® Annual Convention, Nov. 5, 2010).
The Holdouts—Some of the Nation's Wealthiest Home Sellers Refuse to Lower Their Asking Prices; 'I Feel the Property is Worth Every Penny', (Wall Street Journal, Eastern Edition, Oct. 1, 2010).
Marketing to the Millionaire: Profile, Preferences, and More
Three Essentials to Selling a Million-Dollar Listing, (Inman, Aug. 31, 2012).
Luxury Homes Linger Longer Than Lower-Priced Houses, (REALTOR® Magazine, July 18, 2012).
Luxury Homes Fetching Multiple Bids, (REALTOR® Magazine, May 29, 2012).
Selling Luxury Real Estate, (Dr. Margot Weinstein, Apr. 26, 2012).
Luxury real estate execs share insights on unique clientele, (Inman News, Jan. 18, 2012).
Luxury Agents Try ‘Shock and Awe’ Marketing. (REALTOR® Magazine, Oct. 28, 2011).
Realtor.com's Celebrity Home News YouTube Channel, (REALTOR.com, n.d.).
Architecture Coach: Marketing Top-Line Features for Luxury Buyers, (REALTOR® Magazine, Jan. 2011).
5 Marketing Techniques Luxury Real Estate Agents Use, (Influential Marketing Blog, May 20, 2010).
Research on Your Own
National Association of REALTORS®'s Resort & Second Home Property Specialist Certification is an option to gain a more in-depth education in the area of working with luxury homes and home buyers. Luxury Home Magazine’s Twitter account shares lots of luxury home related news from a variety of sources. Log in to www.twitter.com and follow @luxuryhomemag, or add them to a Twitter list. The Luxury Clues Blog offers opinion on the luxury real estate market, including ideas for marketing and building your luxury real estate network.
To search for the most recent articles on listing and selling luxury properties, login to NAR's ProQuest account (click “Search ProQuest now” at bottom right) and enter subject terms such as:
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Luxury homes
- Enter into ProQuest text box as SU (luxury homes)
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Luxury homes and Real estate sales
- Enter into ProQuest text box as SU (luxury homes) AND SU (Real estate sales)
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Luxury homes and marketing
- Enter into ProQuest text box as SU (luxury homes) AND SU (marketing)
Information Savvy!
Many websites, such as Wikipedia, can be great resources to quickly get oriented on a subject before conducting more in depth research. However, anyone in the world can create and maintain a website or write a seemingly legitimate article and may, intentionally or unintentionally, publish false or “misinformation.” When reviewing information on the Internet, you should always consider the ABC’s:
- Accuracy. Is the information accurate? Can you confirm the same information using other resources published by a different author or organization?
- Author. Who composed the information? Can you easily identify the author and contact the author or website publisher?
- Bias. What bias might the author or author organization have?
- Credibility. What is the author’s or author organization’s credentials for publishing the information? What expertise, experience, or education does the author have in this area that makes him or her qualified to write on the subject matter?
- Currency. When was the web page last updated? Is it possible the information might have changed since this web page was last published?
- Critical eye! Remember to always use your discretion and critical eye to determine whether information you find on the web (or even in books and news sources!) is trustworthy. Putting websites to the ABC test will get you started in developing a strong critical eye.
eBooks & Other Resources
eBooks.realtor.org
The following ebooks and digital audiobooks are available to NAR members:
The Luxury Strategy, (Adobe eReader)
Luxury Brand Management, (Adobe eReader)
Selling Luxury, (Adobe eReader)
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.
The World of Luxury Real Estate, (CreateSpace, 2007).
Rich Buyer, Rich Seller: The Real Estate Agents Guide to Marketing Luxury Homes, (Institute for Luxury Home Marketing, 2003).
Field Guides & More
These field guides and other resources in the Virtual Library may also be of interest:
Field Guide to Preparing & Staging a Home for Sale
Field Guide to Vacation, Resort and Second Homes
Have an Idea for a New Field Guide?
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The inclusion of links on this field guide does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this field guide complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.