Selling a multi-million-dollar home is a creative challenge, and not every real estate agent is up to it. What criterion should you apply in choosing a Realtor to list and promote an exclusive property?
First and foremost, look for a real estate professional who demonstrates in-depth knowledge of the luxury home market. Ask the realtor how many high-end homes they have successfully represented, how long each took to sell, and how the asking price compared with the final sale price. The agent should have experience in working with the attorneys and business managers of wealthy clients, and a reputation for complete discretion. Their marketing plan should verify familiarity with global Internet marketing and international business practices. Their listing presentation should convince you that they value and esteem your home as much as you do, and that they are willing and able to provide extraordinary service to find the right buyer.
A highly effective and experienced agent with extensive connections in the luxury marketplace will be an invaluable asset in the process of buying and selling high-end homes.
There is an age-old secret principle for buying property – don’t buy the most expensive home in the neighborhood. It is a traditional strategy that underlies successful real estate investment, based on the principles of home price appreciation, and it holds true even in the most upscale neighborhoods.
In a well-established area where homes and estates have been custom built with care and maintained with meticulous attention, properties will tend to sustain their value. However, if most homes are worth one to five million dollars and you buy one priced at ten million, your ability to sell it for top dollar may be impinged upon by the lesser value of neighboring homes. Should the market soften or decline, you could lose money if you own the home with the biggest price tag.
A home at the lower end of the price spectrum may end up being a million-dollar bargain. You can remodel or upgrade the property over time, increasing the value of your investment with custom amenities that enhance your lifestyle. When it is time to sell, buyers will be attracted to a competitively priced home in a great neighborhood.
Median-priced homes in many desirable metropolitan markets are approaching the half-million-dollar mark, so even people with six-figure salaries are feeling challenged when buying a home. While these buyers may have access to a comfortable amount of cash for a down payment, it may not be enough to purchase the high-end home or upscale urban apartment they really want.
A recent article published by MSN Money reports that new programs are providing assistance for borrowers whose yearly income places them in the top 10 percent of American wage earners. For example, there is the Phoenix Realty Group in Los Angeles and San Diego, who are investing $190 million to build housing for families who earn up to 200% of the median income. There is the Neighborhood Assistance Corporation of America (NACA), which started as a nonprofit housing advocacy corporation and now operates a $10 billion mortgage lending program. NACA offers homebuyers no-money-down loans with interest rates a point or more below prime. Borrowers pay no closing costs, points or private mortgage insurance, and there are no income restrictions to qualify for the program.
Ask your mortgage broker about programs available in your area.