The Four P’s of Making it in The New Luxury Real Estate Market
August 5, 2020
Allison Cahill, ESQ.
Certified Luxury Home Marketing Specialist & Million Dollar Guild
How does a real estate agent navigate the luxury market in today’s world? It comes down to the four P’s:
- Pent Up Demand
As a luxury real estate agent, I have seen sizable changes since the pandemic gripped Arizona in March. Once the State of Arizona entered quarantine, it became an entirely new world. Since then, it’s been a bit of a roller-coaster in the luxury real estate market, but that shouldn’t be discouraging. With the right tools and an adaptable mindset, the luxury real estate agent can thrive in the new market.
In today’s world, an agent cannot expect to conduct business as usual. One needs to be flexible and creative. When we first heard news of the pandemic, measures had to be taken to pivot into our new reality. This meant that buyers needed to be able to view luxury homes without fear and sellers had to be able to allow buyers to view in a safe manner. For me, four methods were used- Matterport Tours, 3D Tours Using Virtual Reality Goggles, Detailed Professional Video and FaceTime Tours. When representing the Seller, it is critical to give these options to buyers and their agents.
Pent Up Demand
Because many luxury homes were taken off the market during the lockdown, and many buyers could no longer travel to Arizona to view homes, and thus, a pent-up demand was created. This pent-up demand has had a huge driving force in keeping our luxury market at very high levels.
In today’s market, the luxury real estate agent must understand the importance of pricing a luxury property correctly. While demand is high and coupled with low inventory, the savvy luxury buyer knows not to overpay for a property. The luxury buyer’s agent knows the market well and will educate the buyer on pricing. Pricing is much more than knowing the average price per square foot in the luxury market. Every detail must be taken into account when pricing. The listing agent needs to be knowledgeable about the area, the current inventory, and the recent sales. The listing agent must take into account finishes, lot size, layout, views, busy roads, backyards, privacy, garage space, home gyms, home offices, appliances, etc.
So, you just received a beautiful luxury listing…now what? There’s no time to pause. Persevere and get the property on as soon as possible to prevent missing precious time in this hot market. However, the home will not sell strictly by placing a sign in the yard and putting the property on the MLS. Marketing, now more than ever, is going to be the deciding factor in whether or not you can have a quick and swift sale. The luxury agent needs to seek out every avenue for marketing. The property being marketed needs to be more than show-ready and appear as if it is sparkling and move-in ready. When staging and preparing a home, ask yourself, would you have quarantined here? If not, there is more work to be done.