Sales Of Super-Luxury Homes Robust

May 3, 2008

Many multimillion dollar homes don’t seem to be affected by the highly publicized housing slump. Their prices remain firm or continue to rise, and there’s an ample supply of affluent buyers ready and will to buy - many opting for an all cash purchase transaction.

One reason for that strong market niche is that the nation’s rich people are getting richer and they want to show their elevated status in the home they live in. Also, an increasing number of super luxury homes are being acquired by very rich foreigners who want a residence in the U.S. and want to take advantage of the weak dollar and relatively bargain prices.

In today’s market, the ultra-high-end market means homes above $5 million. Lower priced luxury homes, ranging from $1 through $4 million, are often more difficult to sell and are more likely to reduce their price. This is because the credit crunch is making it more difficult for buyers of these properties to qualify for mortgage financing. That makes it tough on homeowners who want to trade up to a luxury home.

Marketing an ultra-luxury home has become a very sophisticated process. Owners will often require a comprehensive marketing plan from a brokerage firm before listing the property with them. Such a plan will include advertising in strategic media - local, national and international media. Creation of a brochure, sending out direct mail, and promoting the property on Websites are musts.

Producing open house events is usually included. These are "by invitation only" events, and only persons who have the financial capability to buy are invited, or perhaps those who maintain close communication with very affluent individuals. Individual inspection tours of the property are given to people who have been checked out financially in advance.

Posted in Real Estate