Every day, RE/MAX Sales Associates across Canada work with homebuyers who are searching for their luxury dream home, and sellers who are seek to transition into the next chapter of their lives.
We reached our to our RE/MAX Influencers — a panel of RE/MAX Sales Associates from across Canada — to find out the top concerns of luxury homebuyers and sellers. Here’s what we learned.
Luxury Buyers’ #1 Concern: Location
When we think of luxury homebuyers, we are often quick to picture stunning homes and amazing features, but our RE/MAX Influencers agreed that luxury buyers are as interested in location as any other segment of the market.
Desirability of a location may be affected by numerous factors. Some buyers want privacy; others are looking for a magnificent view. Many want proximity to the best school in town; and then there are those who simply want to have friendly neighbours.
Our RE/MAX Influencers agreed that it’s incredibly important that real estate understand the demographics of each neighbourhood the buyer is interested in.
“I know my market inside out. Typically, that is the confidence [luxury homebuyers] are looking for,” says Heidi Lussi, RE/MAX Vernon.
Luxury Buyers’ #2 Concern: Price
With most luxury properties exceeding seven figures, it may be no surprise that the second most common concern voiced by luxury buyers is cost.
Luxury buyers want to ensure that they’re not paying too much, and that the neighbourhood will hold its value. Many also have questions about future property tax assessments and other costs associated with renovations.
“At the higher price points, sometimes finding comparable properties is difficult. You have to provide your buyer with as much research and information as possible so they can make an educated decision,” says Ron Neal, RE/MAX Alliance.
Luxury Buyers’ #3 Concern: Quality/Features
The third most important concern for luxury homebuyers is quality.
High-end finishes, modern appliances, “smart” features, a pool, a spacious lot and garage space were all listed as key features important to today’s luxury buyer. Many are interested in that “wow factor” that is not often found in an average residential home.
“As a sales associate, it’s important to be aware of the most reputable builders and developers, so we can steer our buyers in the right direction,” says Leslie Cannon, RE/MAX Crest Realty (South Granville).
Luxury Sellers’ #1 Concern – Marketing
When it comes to selling a luxury property, the biggest concern is how the house is marketed.
Luxury sellers want to know that their home is getting the exposure needed for a successful sale. They also want the peace of mind that their sales associate has the experience and contacts necessary to get the highest possible price for their home. Finally, they want to make sure that the home’s key features are given the attention they deserve.
Our RE/MAX Influencers stressed the importance of marketing luxury homes nationally and internationally, identifying the right buyer and then advertising accordingly.
“I always make sure to explain my standards are high and I educate why I will be doing things a certain way,” says Rhonda Navratil, RE/MAX River City.
Luxury Sellers’ #2 Concern – Price
Those who are selling a luxury property want offers that reflect what the property is worth.
Sales associates must be able to justify their pricing by showing comparable properties that substantiate the listing price. It’s incredibly important that the real estate agent has a keen market knowledge.
To ease sellers’ concerns, our RE/MAX Influencers said it’s important to explain what they can expect during the negotiation process, so there aren’t any surprises down the road.