Selling Luxury Homes in a COVID-19 Market
August 5, 2020
Founder and CEO, Tru Realty
When COVID-19 first struck the United States several months ago, there was mass panic across nearly all businesses and industries. Without a doubt, the real estate industry was part of the panicked crowd. It was difficult to determine the “how,” “when,” or even “if” our industry would bounce back from the pause in the market. However, the resiliency of real estate professionals, and more specifically Phoenix-based real estate professionals, demonstrated that we’ve taken the changes in stride. We’ve adjusted to the “new normal” of e-signatures, virtual showings, and Zoom meetings.
A recent article from Forbes.com named the Phoenix real estate market as one of four “boom markets” due to our recovery speed. Starting off 2020 on strong footing has supported positive momentum toward our recovery, in addition to the fact that the majority of our job market is not leisure or hospitality-based, which were some of the biggest industries impacted by COVID-19.
As I write this, the luxury real estate market is hot, with an increasing number of closings over asking price. The Cromford Report shares great insight into the luxury market’s reaction to COVID-19 when compared to homes with an average sale price ($200K-$400K). For example, although contract activity in all price ranges has bounced back, the biggest rebound came from the luxury sweet spot of $500K-$1M, where contract activity was up 58% from the same period in June last year. Even better news for luxury sellers? The Cromford Report also shared that contracts over $1M are up 85% compared to the same time frame in June last year.
Despite COVID-19, for now, it looks to be a smart move to sell a luxury home. As it always is in the real estate industry, remember to keep in mind that the climate could change at any moment. For now, though, in a time where the luxury market is heating up, below are a few tips to help you put your best foot forward in selling luxury real estate in a COVID-19 market.
- Personalized Communication. Because “video showings” are a must at this stage in the game, I’ll skip to the important part. As much as you can, personalize and customize the showing experience. Create a video template for the property you’re selling and tack on a personal message at the beginning or If you receive a tip that the buyers are particularly interested in a specific feature, customize the experience of viewing that part of the house just for them. Luxury buyers still expect to be nurtured with a high-end experience, even from a distance.
- Teaser Consider creating multiple cuts of the property video tour. While potential buyers are scrolling through, they may not have time to watch a 10 minute in-depth video of the property, but they could have time for the 45 second version that captures their interest and prompts them to schedule a personal FaceTime tour with you. (from there you could send that personalized video I mention above!)
- Follow Up & Follow A thoughtful follow up process has never been more important. You do not want to lose a potential buyer because you let them “think on it” for too long. Create or update your follow up plan to include those personalized messages and even offer to send additional videos or show the property virtually again.
For those of you selling in the luxury market, I encourage you continually look for those virtual experiences and tools that will put your property at the top of the list for potential buyers. We’re living in 2020, a world where there are new apps debuting on a daily basis and an online option for almost everything. This is a time when you should make technology your friend and not shy away from new opportunities. Think positively about the opportunities and challenges presented before you, and hook those luxury buyers!