Working in the Luxury Market when Inventory is High
An April 2018 Forbes article titled, “Real Estate is Hot, Except at the High-End: Disruption Coming in the Luxury Home Market,” discussed high inventory, the risk-averse nature of today’s high-net-worth consumer and the ability of the wealthy to wait and see. It also stated that 52% of the wealthiest Americans live in homes worth less than $500,000. In Illinois, we can add to that list the Illinois state government’s issues, the impact of high property taxes, the new income tax plan with a $10,000 cap on SALT deductions for married couples, as well as the amount of jobs and residents leaving compared to the smaller numbers moving to Illinois.
For all these reasons, many of our Chicagoland Luxury markets are experiencing inventory levels that are quite high with no indication of coming down. This has created great opportunities for buyers and, conversely, is causing frustrations for sellers and listing agents. So what is a listing agent to do?
*Luxury buyers expect the homes to be perfect when they come to look. Any issues should be repaired, and it should show at its absolute best.
*Rework your copy to tell the story of the buyer’s lifestyle in the home and include Luxury brand names of items such as appliances, designer wall coverings and known builders or architects.
*Luxurious, Captivating, Impeccable and Landscaped are key words to use for Luxury sales, according to Zillow.
*Videos including drone footage are now a must.
*Utilize social media channels to get the word out.
*Post to Instagram’s new, 10-minute video tool, IGTV— this is the next hottest thing!