Luxury real estate is sort of a relative term. Obviously it depends on your geographic location what your money can buy. If you were in the middle of Kansas (no offense to Kansas) buyers can get an amazing and beautiful luxury home for $500,000 and under. If your are looking for a luxury home in an area like Evergreen, Golden, or Morrison you could expect to be paying a minimum of $1,000,000 or more. It is getting to the point to get a ll the bells and whistles and luxury fixtures you are closer to $1,500,000 or more. With that being said most luxury real estate agents in this area would consider about a million dollars the entry level to luxury home in the Denver MLS.
Marketing Luxury Homes and Real Estate
When choosing a luxury listing broker a seller should consider a few things. For starters, just like any price point, buyers are finding their homes online. This is even more so for luxury real estate. A seller should find their luxury Realtor by Googling key terms they think buyers would use for finding their home. Terms like “Luxury homes for sale Evergreen, CO”, Luxury Real Estate Agents Evergreen, CO”, “Luxury Real Estate Agents Golden, CO” and so forth. If the real estate agent or company shows up for these terms you know people in that market are finding them and then in turn seeing your listing. Another thing to consider is the real estate agent’s ability to market online. Digital marketing is the new in thing. Just because an agent makes nice shiny flyers for your home doesn’t mean much if no buyers get to the home in the first place to pick up the brochures.
Open Houses and Luxury Homes
Open houses are a risky business to begin with. Many times we have mentioned that open homes benefit the real estate agent much more than the seller. An open home is a tool for a real estate agent to acquire buyer leads and seldom results in a sale of the property. This is even more true for luxury homes. Not many people looking for a $2 Million home are out driving around on a Sunday afternoon looking for a new home. That just isn’t the behavior of a luxury buyer. The other challenge is security. If a seller has a couple million dollar home it is pretty much a good bet that they have nice toys and things laying around the house. Open houses are a huge security challenge for all price points. The alternative to a public open house is broker open. That is when only luxury real estate agents come to look at the home. They then tell the clients they have in that price that the home would likely meet their needs and likes. Much safer than the public roaming through your home casing the joint.
Luxury Home Market
The luxury home market doesn’t always follow the average home market. Luxury homes in general don’t appreciate as fast as the average market. The nice thing is though the luxury market does’t have the drastic swings with the economy. Since people in that market usually have the steady income to afford nice homes even in a downturn of the market. Also investors for rental properties are usually not in the high end market either so it doesn’t move with the economy. The Evergreen, Morrison, Golden and Denver Luxury market has been appreciating at a steady pace for decades.