Selling luxury homes is quite different from selling homes closer to the average price. It becomes even more unique when working with first-time luxury homebuyers. Typically, homes priced at $1 million or more are considered to be a part of the luxury home category.
When you decide you want to work with first-time luxury homebuyers, you will need to understand the type of buyers you will work with. Seasoned luxury buyers have been through it before. These buyers may have bought a home before, but not one at such a high cost.
If you plan to work with luxury buyers working to buy their first $1 million or more home, a few tips can certainly help. Let’s look at the top tips for working with these types of luxury buyers.
5 Tips for Real Estate Agents Working with First-Time Luxury Homebuyers
1. Start with a Wish List
Unlike first-time buyers creating a list of wants and needs for their first home at an average price, luxury buyers can create an actual wish list. They are going to be buying a property that will, in most ways, meet all their needs and much more. However, there may be certain luxuries they will have to choose from and compromise on.
While a regular buyer might need specific things and hope for other things, a luxury buyer will wish for certain things and get far more than they need. Have your first-time luxury buyers create a wish list. This list can include things, such as the size they really want, how many bedrooms they prefer, the neighborhood they want, and any actual features of the home they really want to have.
Let them get as detailed as they want. This list will help you choose the right type of luxury property to show your buyers.
Many first-time luxury buyers think they will find their exact dream home for the perfect price. While luxury buyers often get more than an average homebuyer, there will still need to be compromises made.
2. Experience Shopping
Luxury home buyers are often looking for more than just a home. They are looking for an experience or a lifestyle. When selling luxury homes, most real estate agents turn it into selling an actual lifestyle.
First-time luxury homebuyers are going to be looking for an experience or lifestyle, too. They may want a luxury home that gives them access to a popular country club or neighborhood amenities. They might want some of those amenities on their property and private, such as a tennis court, swimming pool, or even a sauna.
3. Limitation are Less
Understanding that the luxury market has fewer limitations than the regular real estate market helps you work with first-time luxury homebuyers. It might take this type of buyer some time to figure out there are not as many limitations.
Since a luxury buyer will get most, if not all, of their needs met, they are choosing the things they want, not the things they need. Sure, it’s still possible to find a home too expensive for a first-time luxury buyer, but the limitations are less in comparison.
4. It Will Take Longer
First-time luxury homebuyers might have bought an average-priced home in just a month or two in the past. Most luxury home purchases take far longer. There are fewer luxury homes to choose from and the pricing isn’t as straightforward.
With fewer homes in this category, it can be a bit harder to assign the actual value. Luxury homes are also unique and often customized by the owner. This makes it a bit harder to find a luxury home that will fit for your buyers without significant changes.
It’s also possible, you might show your first-time luxury homebuyers a home that fits well, but has extra features they don’t need, which translates into a higher price. This could cause buyers to walk away from the property and keep looking.
Patience is a big-time key you need to have when working with first-time luxury homebuyers. They might not realize; this market moves slower than the average real estate market. It can be a bit of a rude awakening when they realize things move slower in this section of the market.
5. Pre-Approval is Often Required
First-time luxury homebuyers may need to get pre-approval for financing just to see some homes on the luxury market. Some buyers will be all-cash buyers and may still need to have their financial abilities approved. This is due to the higher cost and most luxury sellers don’t want to waste their time.
There are many things to know about working with first-time luxury homebuyers. You will need to be patient as you guide your buyers into the luxury market. It can be exciting and scary for all involved when the transaction includes $1 million or more for a home.
Keep these five tips in mind when working with first-time luxury buyers. It will likely take longer and you will need to be a strong guide for your buyers.