The luxury real estate market in Toronto is much like it is in many large cities; there are pockets of high end real estate in both the downtown area as well as in several urban neighbourhoods. We have a fabulous selection of luxury homes to suit every taste, from traditional to modern!
Selling a luxury property, wherever it is in the Greater Toronto Area, requires a special set of rules that do not usually apply at the ‘normal’ level. And, although many homes in Toronto now sell well above the $1 million price point, these homes are not necessarily defined as luxury real estate; high end homes are characterized more by commonalities such as neighbourhood, privacy, luxury amenities, owner demographic (particularly financially), etc..
Luxury real estate listings in Toronto (and elsewhere) face unique challenges and require special treatment. The special considerations include:
Pricing Luxury Homes for Sale
Unlike many mid-range homes where such things as nice gardening and beautiful, neutral decorating get a home noticed and sold, luxury homes are often unique, even if the exteriors look similar in certain cases. Wealthy home owners have particular tastes, and often heavily customize their properties. One may have a technology obsession and spend hundreds of thousands of dollars on custom installation for the latest and greatest; another may have invested large sums in making their home eco-friendly. Laurie Moore-Moore of the Institute for Luxury Home Marketing in Dallas tells of a property that had an indoor shooting range, and emphasizes the need to get creative when marketing such properties. I agree wholeheartedly. Luxury listings must be made to appeal to a range of affluent buyers while the pricing and marketing strategies serve to correctly identify, target and entice specific, appropriate buyers. The right staging – with the aim of both neutralizing and enhancing a property’s features – and the right price point, are crucial.
Marketing Luxury Real Estate
As with pricing, the marketing strategy for each luxury home listing must be carefully thought out and executed, as touched on above. Unique features must be showcased in the appropriate light and made to appeal to various lifestyle niches. In this vein, other possible uses for the property must be considered and highlighted.
For marketing, the location of the buyer/s must be targeted, and this means employing alternative methods than one would with a ‘regular’ real estate listing. Higher level marketing is needed, from advertising in luxury publications, business venues and high end events and establishments where affluent buyers will see it, to reaching out to a wordwide network of luxury real estate specialists. It’s all part of going the extra mile, and knowing your audience. Hosting an event such as a charity event or auction at the home, selectively advertised, is also a possibility.
Online marketing for luxury real estate listings is another facet of smart strategy. Many luxury publications and social media outlets have high end advertising possibilities for the online crowd. The vast majority of buyers are online in these times, and such venues offer a fast and flexible means of disseminating important information, and updating it in a timely fashion.
In truth, high end homes are often sold through tapping a global network of luxury real estate specialists, wealthy contacts and their circles of influence, etc., and not always on the MLS as with a standard listing.
Some other important considerations include ensuring privacy and discretion for wealthy clients. While on a ‘normal’ street when sellers might not want their neighbours to know they are selling we would tell them ‘Trust me, everyone will know!’ a luxury home listing may truly be kept a secret. There are myriad reasons why an affluent individual, family, or celebrity may not wish a public display of their desire to divest themselves of a property, from corporate (perhaps liquidating an asset for business acquisition purposes) to personal (keeping a divorce or other personal challenges hidden from prying eyes). As mentioned above, it’s also entirely possible to sell or find a high end home without even accessing the MLS, as many are unlisted or exclusively offered.
Also different in this market is the nature of qualifying affluent buyers for a high end real estate listing. At this level it’s not about who qualifies for what mortgage so much as whether the buyer’s financial statements are as healthy as they claim they are. Can they really afford it, or are they wasting time and just oggling the property? Ensuring that the buyer is solid and has the assets or income to be able to go through with the purchase (before the seller even sees an offer) is part of the superior service demanded and rightly expected by wealthy individuals. Their time is valuable, as is mine as a Realtor. Wasted time is wasted money and opportunity, especially as wealthy homeowners may be elsewhere in the world in their regular business or leisure pursuits. Being proactive, responsive and technology-savvy are musts.
There is a lot more involved in listing and selling high end real estate, but this is a peek into the luxury home market. To purchase or sell luxury properties in the Greater Toronto Area call me ANY time! 416•930•4388