How to find Buyers for a Luxury Home
Although our housing market is showing steady upward trends it is still difficult to sell luxury homes. One reason is because the homes are outdated and the “Old Money” is retiring. Young buyers want wine cellars, movie theaters, swimming pools and open floor plans. Gone are the days of formal living and dining rooms.
Know Your Market
You as an agent are in the market as well. You are looking for prospective luxury home buyers. Use your inner circle and network with money management bankers. They hold a portfolio of prestigious account holders. These holders are definitely going to consult with their banker before thinking of any purchases and request a proof of funds letter. Some of their clients may even be International clients. They are always looking for investment homes in the US.
New vs. Old Money
You must identify the “New Money” from the “Old Money”. Your Old Money clients are moving out of their homes and downsizing. They could be retreating to a smaller home or moving to a prestigious retirement community. A smart agent will look at this as an opportunity to find purchasers of other homes rather than just selling. Old homes on a great piece of land should be focused on being sold as a tear down. Simply ask your sellers if their children are in the market for a new home. The New Money age are graduating shortly and are in for an inheritance.
Place your listing as private showings only. Make it mandatory to be shown only with a valid proof of funds. This will draw out buyers as they do not want to draw attention to themselves. They are more than likely to attend a private showing and pay cash. These purchasers have their Proof of Funds ready and available.
Host an Event
Host a relaxing event that both men and women can enjoy such as golf or bocce. Your invite list should include money market account managers, investing club members, and target private equity funds managers. Now what you are to do is ask them to invite 10 or 20 of their best clients who could possibly be interested in future purchases. This event should include food and drinks so you can have an open and casual conversation to feel people out.