The luxury real estate market can be difficult to navigate for agents, sellers, and buyers. However, it is one of the most successful fields when approached with knowledge, experience, and professionalism. No matter what one’s title may be when dealing with luxury homes, the following facts and information (as provided by Trulia) could prove beneficial in securing the best deal for every party involved.
Luxury homes are surprisingly popular in today’s real estate market. 51.1% of homes sold in 2016 were listed as luxury properties, indicating that it is indeed a buyer’s market for premium listings. Perhaps even more impressive, the market saw a spike in luxury home value this past year despite their being a strong supply. The only two cities in the country to see a decrease in value were Houston and San Francisco. This indicates that luxury homebuyers are alive and well in what is often considered a challenging sell.
Overall prices are on the rise as well. Homes located in the country’s largest metro areas valued at $1 million or more doubled between 2012 and now, going from 2% of those being sold to 4%. Though this increase may seem like a negative to first-time buyers, they are wise investments given their condition. The construction that goes into these homes is of the highest quality, incorporating some of the latest and most innovative pieces of technology throughout.
Custom luxury homes are always an option for those willing to spend a little more than the listing price. One of the biggest and most obvious benefits that come with going this route is the possibility of selling one’s home for more than originally purchased. There are a few key considerations that come with designing a custom home however, such as location, budget, and overall floor plan.
Location is particularly important if the person designing this custom home wishes to sell one day. No matter how lavish and luxurious this house may be, it will not be considered valuable if the surrounding neighborhood is somewhat questionable. Distance to downtown areas, local schools, and the general quality of life in said environment are all factors to consider when choosing the perfect spot for a custom luxury home.
With the many pros and cons of venturing the luxury real estate market, a reassuring statistic to keep in mind is that there is a mere 3.8% chance that a deal will fall through. In the nation’s most popular cities, starter homes see a failure rate of 7.1%, and trade up homes fail 6.7% of the time. Luxury home deals are much more secure due to the careful planning and strategies implemented by the most experienced agents in the country, ensuring that their clients receive the best deals possible.