Fish From Your Own Backyard
Want to become an accomplished fisherman? Well, practice makes perfect, right? I just listed an amazing 10 acre parcel in Nipomo (close to Lopez Lake) with its own 1 acre pond stocked with bass, catfish and bluegill. This property features a large (over 4200 square feet) home with guest quarters, hobbyist dream shop, fruit orchard and valley views. It is located just off of Highway 101 in San Luis Obispo County. Reduced in price to sell, you can view this listing by going to www.1255DanaFoothill.com or call Eddie Stanfield, marketing agent with Century 21 Hometown Realty @ 805-714-7558
Strategies For Selling Your Luxury Home
These days, selling a luxury home can be challenging for even the best property. As a homeowner, there are several steps you can take to increase your property’s desirability. You and your real estate agent will work together to develop a strategic marketing plan to showcase the home in such a way that it appeals to potential buyers in the luxury mindset. Take a peek inside the head of luxury home buyers to ensure that your current marketing strategy generates the most interest.
The Luxury Market
In my 23 years of real estate experience, I’ve learned that buyers seeking a luxury home make real estate decisions from a more logical standpoint. They view the home more as an investment, and are motivated less by purely emotional reasons. Therefore, the listing price must be high enough to satisfy the sellers, but low enough to attract potential buyers and generate viable offers. I can definitely tell that when the ratio of price to the number of buyers gets larger, pricing a luxury home becomes even more critical — higher listing prices means fewer buyers. In San Luis Obispo County, for example, we might see 60 luxury homes in excess of $2 million with only one or two buyers every few months. This makes pricing your luxury home critical to attracting interest.
The Necessary Research
I firmly believe that the ideal listing price for a luxury home creates that balance of reaching the largest group of potential buyers, while still selling the home at the highest price possible in the shortest amount of time. It takes a lot of “homework” for a good real estate agent to determine a luxury home’s asking price. Coming up with an ideal listing figure can’t be done in a day if the agent is conducting quality research on the property.
In my experience, finding the ideal listing price starts with honest communication between the home owners and the agent to identify key aspects of the home sale – seller motivation, the realities of the local market and recent sales of comparable properties. I need to determine how fast the sellers want to get away from the property. Their time frame makes a difference in how I list the property because they may be looking to redistribute funds from the sale into other investments, reduce the amount of taxes or interest, or just minimize heating and maintenance. The better I understand the seller’s motivation, the more realistic listing price I can set for the home.
The Pricing Challenge
Knowledge of the local markets also heavily influences the way I determine a home’s asking price. In two decades of experience in this area’s real estate, I’ve learned that success in setting a luxury home’s asking price means being realistic. Some sellers believe that a good strategy is to list the home high and then negotiate down once an offer has been made. True real estate experts will discourage this because buyers seeking luxury homes are generally quite savvy when it comes to home values. Luxury homes that are overpriced may not even get showings because area agents are required to point out homes that are listed too high. If a home is listed just right, potential buyers will see value in the purchase and hopefully even compete against each other to make an offer.
Choosing the Right Representation
I advise both buyers and sellers to choose a real estate agent that will honestly deliver the results of the market research. Rather than pick the agent with the highest suggested listing price, go with an agent who can properly assess the value that the market will bear. I often see sellers selecting a real estate agent who assures them they can sell the house at top dollar, then asks to lower the listing price after a few weeks of no interest from sellers. Avoid this common error and choose an agent who will tell you what you need to do rather than flatter you.
Another way to ensure the most successful agent/client relationship is to select a real estate agent based on expertise and certification, years of experience and personality compatibility. Never choose a real estate agent solely based on the selling price he quotes if he hasn’t first done significant research into your and other relevant properties. Instead, rely on the agent’s reputation, education, experience and industry recognition to indicate the right person to sell your luxury home.
If you would like to learn more about my Silver and Gold Plan options for marketing luxury homes, please feel free to give me a call.
Related articles: Tracking San Luis Obispo County Luxury Homes Sales; Luxury Home Sales in San Luis Obispo County on the Upswing?
Avila Beach continues to develop
From the outside, most believe that Avila Beach is built out. But a proposed development looks to be moving forward with the Harbor District, called Harbor Terrace.
The Harbor Terrace is being developed to be a coastal camping resort for both locals and tourists alike as an outdoor community gathering place surrounded by scenic ocean views. This development will be owned and run by the Harbor District.
Bay
The Harbor District vision states the following amenities:
102 RV locations
50 tent sites
25 tent cabins / domes
A main lodge
Restaurant (locally owned and operated)
Market deli café (offering local food and wine)
Harbor related uses
With the recent Port San Luis resident’s eviction notice, things appear to be moving ahead for future development. GMB Realty Partners is currently named as a possible Joint Development Partner. GMB Realty Partners estimates that the total project cost will be approximately $13,000,000 $15,000,000.
When the actual development will happen is anyone’s guess, with the state of our economy, the Harbor District will have its challenges for sure.
Luxury Homes in San Luis Obispo County on the upswing?
Don’t give up on the luxury homes market, they still do sell. Market statistics for the affluent show there is a marked improvement in their plans to make major expenditures for a new auto, a cruise, and a vacation or home.
According to the Institute for Luxury Home Marketing, “(a)bout 10% of the affluent say they will seriously consider acquiring access to a vacation home during the next 12 months. Plans to make an acquisition increase as age declines, income increases, and net worth increases. About 2.9% are considering two types of vacation home acquisition. Wholly-owned homes are the most favored type of vacation home access. Wholly-owned homes used primarily on a seasonal basis are more popular than those used frequently throughout the year. The only exceptions are the 50 to 59 age group, the under $200K income group, and the lowest net worth group.”
So, if you happen to fall into the category of someone who wants to purchase a luxury vacation home over the next year, take a look at what we have to offer in San Luis Obispo County. It’s like living in paradise!
Tracking San Luis Obispo County Luxury Homes Sales
With the naming of San Luis Obispo as the “Happiest Place to Live in the US“, I believe we will see an increase in the high end or luxury home sales. I have heard that the San Luis Obispo Chamber of Commerce, among others, is seeing an increase in inquiries about the county. I have noticed and increase in interest from out-of-area buyers on my real estate websites. The word is out – we live in an incredible place!
As for the activity or stats, our Central Coast Multiple Listing Service shows there are currently 63 homes over $2,000,000 in San Luis Obispo County for sale. Only two are showing pending in the MLS as of the end of April, 2011, but five have already closed escrow in 2011. Under the $2,000,000 range, from $1,000,000 to $2,000,000, the sales number five times that amount, at 26 sales this year. We predict this number will continue to rise due to the timing of the year too. Spring going into summer is notoriously the best time to be on the market.
I track the luxury market in San Luis Obispo County regularly and believe if a luxury home is priced right and marketed aggressively, property sales will continue to increase. As a graduate of The Institute for Luxury Home Marketing, I offer two very comprehensive luxury home marketing plan from which to choose.
Related articles: Pricing Your Luxury Home
