Tuesday, September 26, 2023 / by Morris Hall
Navigating the Current Luxury Real Estate Market - Live Beyond, Why Not You?
Are you in the market to buy, or sell your home? The current real estate market can seem daunting. There is so much information and data being thrown around. This is true of any person looking to buy or sell a home, but navigating the current luxury real estate environment requires careful consideration and knowledge of current trends and market conditions.
According to The Institute for Luxury Home Marketing’s July 2023 report, regarding single-family luxury homes statistics through June 2023: year-over-year, total sales are down 11.5%, though total sales have increased substantially since January 2023, including an 8% increase from May 2023. This is positive news, compared to 2022, when there was a decrease in sales in June from May. Though year-over-year new inventory is down 19.18% from June 2022, the inventory is increasing slowly with a 2.22% increase in June 2023. Demand is still strong. In June 2023 luxury homes sold right around 100% of list price.
Knowing this information can help you set your expectations. The luxury real estate market can be complex, and prices can be unpredictable. It’s important to note that market conditions can vary significantly depending on the location and other factors. There are several key items to keep in mind when navigating the current luxury real estate market. A Maxim Properties specialist will help with your navigation.
You need to understand the current luxury real estate market conditions in your specific area. Seeking an experienced luxury market realtor is a good start. Their expertise, market knowledge and access to exclusive listings can provide valuable guidance throughout the buying or selling process. A seasoned Maxim Properties realtor will give you insights into supply and demand, pricing trends, desirability of specific areas and any other components influencing the market to help you Live Beyond, Why Not You?
When searching for a luxury home, you’ll want to clearly define your requirements and objectives. This will help you narrow down your options and focus on properties that meet your criteria. Discuss where you want to buy, the price point, the amenities you need/want, the type of architectural style, perhaps privacy and exclusivity and other specific features or requirements you desire. You’ll be spending a lot of money, so be sure you know what you want.
Since luxury properties come with a higher price tag, it's crucial to have your finances in order. If you are buying, determine your budget and get pre-approved for a mortgage or have proof of funds set aside if you plan to purchase in cash. This will not only let you know what you can afford, it demonstrates to sellers that you are a serious buyer and can help you stand out in a competitive market. Luxury homes will often have additional expenses to consider. Ensure you have a clear understanding of your financing obligations and outlays, whether you are buying or selling.
Luxury homes are often not publicly listed. They could be marketed through off-market means, such as personal connections or off-market channels. An experienced Maxim Property professional in the luxury real estate market will have access to off-market properties opportunities that are not widely available, through their relationships with other agents in the luxury market.
When dealing with luxury properties, conducting thorough due diligence before purchasing the home is crucial. This includes hiring professionals to inspect the property, evaluate any potential issues, confirming ownership and that the property has clear title, understand any homeowner association rules and regulations, and ensure that the property meets your expectations. You may wish to engage a real estate attorney who specializes in luxury transactions to assist with contract review and negotiations.
Buying a luxury property could provide an investment opportunity. Luxury homes can offer long-term wealth building potential. Evaluate the property's potential for appreciation, rental income and its alignment with your lifestyle and financial goals.
If you are selling your luxury home, working with a knowledgeable realtor will help you to correctly price your home, to get the maximum price. Pricing it too high could make you lose value by the property sitting too long on the marker. Pricing it too low could leave money on the table.
How you market your home will be important. You’ll want to do focused and sophisticated marketing to highlight your home, and to showcase it for discerning luxury buyers. Collaborating with a Maxim Properties expert realtor will help you develop a comprehensive marketing strategy. This will most likely include professional photos, virtual tours, targeted advertising and showcasing the unique features and benefits of your property.
Understanding whether the market is a buyer's market or a seller's market can significantly impact your negotiation power and overall success in luxury real estate transactions. An experienced luxury realtor can help you identify opportunities and negotiate on your behalf.
Dealing with the luxury market typically takes longer to sell compared to the general housing market. You’ll need to be patient and flexible during your home search, or when selling. Don't rush into a decision, as finding the right luxury property may take time. Be open to exploring different neighborhoods or adjusting your criteria slightly to expand your options.
Remember, buying and selling a luxury home involves a unique set of considerations due to the high value and discerning nature of the market. Each local area has its own distinctive features, which can significantly impact your experience. The luxury real estate market can be highly competitive, so it's imperative that you prepare a deliberate action plan and leverage the expertise of professionals in the luxury market for a smooth transaction. Maxim Properties has seasoned and skilled professionals to assist you at every step, while you are navigating the current luxury real estate market.
Live Beyond, Why Not You?