Just a few years ago, it was pretty rare to see a home sold for over a million dollars in South Georgian Bay. Today, there are 1-2 luxury home sales each month and we’re starting to see homes topping two and three million dollars. One property in the area is listed for far more.
Luxury homes often take more than a year to sell even in a strong market. Currently in our area, there are 34 residential properties for sale ranging in price from $1,000,000 to $9,985,000. In the last six months, there have been 8 sales so, at the current rate, there is better than a two year supply of “inventory” of high-end homes not including the vast number of custom and new homes available as well.
As a REALTOR®, taking a listing for a high-end homes requires careful thought. Yes, commissions on luxury homes are substantial but so are the costs and demands plus, money invested is never recouped if the house does NOT sell during the listing period. Imagine listing 5 homes, spending thousands on marketing each one and none sell.
I recently listed a luxury home that is one of the finest crafted homes in the area. Since this type of offering is growing in our marketplace, I think it could be useful to look at some of the considerations involved in marketing upper-tier properties.
The first step is to work with the Sellers in establishing an asking price. Comparing size, number of bedrooms and such is not nearly enough since not homes are created equal. I’ve been in homes over a million dollars where the interior finishes were no better than those found in a $200,000 subdivision home. Seriously. Pricing means knowing the intricacies of comparable properties in regard to neighbourhood, design, workmanship and quality of materials in the home. It’s critical to know the competition, to know the neighbourhoods and to understand the potential buyer profile.
Coming soon: Marketing Luxury Homes
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