Understanding What it Takes to Sell a Luxury Property

Selling luxury real estate is an art form and requires an attention to detail that is near obsessive as well as the assistance of an expert realtor. Buyers that are willing to invest millions of dollars to acquire a luxury home know what they want and they are determined to get it. The slightest problem or misstep and they will go on their merry way.

So, how do you ensure that you avoid any of these missteps when selling your luxury property on the open market?

Here’s a step-by-step guide to help you with selling your luxury home regardless of the market.

Get Your Property Ready to Show

When selling any property, it’s an accepted practice to clean the property to get it ready for showing. With a luxury property, this process intensifies tenfold. It’s not enough just to clean a luxury home; it needs the white glove treatment. Most sellers choose to hire a professional cleaning crew to go over the property with the proverbial fine-toothed comb. Every little detail must be perfect.

The same is true for the grounds. Once again, a professional landscaping crew is normally hired to make sure that all the hedges are uniform, the flower beds are refreshed and full of new, colorful flowers and the grass is fairway perfect.

Beyond just simply cleaning, many people choose to professionally stage their properties. Staging is the process of creating a look using furniture, artwork and other embellishments to create a look that is appealing to the discerning luxury homebuyer. It replaces furniture that may be dated with modern furniture. Essentially, it updates the entire look of the house.

Yes, this will cost money, but studies have shown that luxury home sellers that go through this process typically sell their home from between five and 20 percent more than those that do not.

Professionally Photograph and Film Your Property

Photographs used to sell a luxury home should be taken by a professional home photographer. Most luxury home buyers – or their agents – begin the home search online, and the only thing they have to judge a property by is a photo. Make sure that your photos stand out by using a professional photographer.

Because luxury properties are unique and possess so many distinctive architectural features and amenities, it is difficult to convey and accurate representation of the property with just still photos. That is why many people choose to also incorporate a video of their property in their marketing materials. Like the photos, make sure this video is recorded and edited by a professional. It will pay off in the end.

Market Your Property

Marketing is essential to sell a luxury property. The pool of potential buyers for luxury properties is understandably small. You must do your best to ensure that as many people have the opportunity to view your property as possible in order to improve your chances of finding the right buyer. Make sure that your agent is distributing your property through a variety of online outlets such as the local MLS, Trulia, Zillow, etc. Also, do not neglect to advertise on foreign real estate sites. A large number of luxury property buyers live outside of the United States.

Put the Word Out Through Brokers and Friends

As a luxury homeowner, your friends and their friends are part of your potential buyer pool. Make sure to get the word out to your network of business colleagues and friends that you are interested in selling your property. Some sellers even go so far as to host a party right before they put their home on the market or right after. They invite all their friends as well as well-respected brokers to the party. This gives the seller the chance to get the word out while the house looks its absolute best but in a relatively informal setting.

Show the Property

Be prepared to show your property as often as it takes to sell it. Don’t expect that your property will sell within the first few weeks. If it does, that’s great, but be prepared for the process to take a while. Luxury home buyers are picky. Don’t be offended if everyone doesn’t love your house. Be persistent and the right buyer will come along.

Showing your home is made much easier with an expert real estate agent on your side. He or she will handle all the showings. You don’t even have to be there. You can be away at the office or on vacation while your agent is showing the property. In fact, it’s normally better for both parties if the owner is not present while the house is being shown.

If you follow these steps, you will sell your luxury real estate, and you will command a top price. So, there’s no reason not to do your best to put your home in the best possible light, market it aggressively and show it until it sells. Contact me today if you are ready to sell your home. I will be happy to go over any questions you may have and help get the selling process started.

Patty Ross
831-236-4513
pattyre@comcast.net
www.pattyrosscarmel.com

Photo courtesy of Sean Stanfield at Flickr.Com.

Protecting Yourself and Making Sense of the HUD-1 Settlement Form

With the amount of paperwork that is shuffled at a real estate closing, it is easy to become intimidated when it comes time to close a real estate transaction.

Don’t be intimidated. Most of this is the standard boilerplate and legalese. Most closing attorneys will breeze through this, expecting you to just nod and agree.

There is one area of your closing papers that you need to pay close attention to though: the HUD-1 or settlement form.

The HUD-1 is a government-mandated settlement statement that breaks down the costs of the real estate transaction in exhausting detail. This is an important document because it details how the end amount that the buyer and seller owe is calculated, and any miscalculation can mean that one party owes thousands more than they should.

So, let’s break down the HUD statement piece by piece. It’s only about two pages, so it shouldn’t take long.

The First Section

The first section of your HUD-1 settlement form will cover the basic information about the loan that will be used to purchase a specific piece of real estate.  In sections B through I you will find the buyers, sellers and lenders names. You will see the address of the property and a legal description if necessary.  The settlement company will be listed. The closing date will be listed. The loan will be described in exhausting detail.

Most of this is pretty simple stuff, but mistakes are made. One area to pay close attention to is the “Loan Type” section. Make sure the box that is checked is the correct one.

The Second Section

Section two of your HUD-1 settlement form will summarize the costs of the buyer and the seller. Section J deals with the buyer’s costs. It bears a strong resemblance to a tax form. Fields 100 through 120 detail the various sums the buyer owes. Line 120 will show the total. Fields 200 to 220 deal with amounts credited to the buyer with 220 being the total. 300 to 303 calculate the final amount due from the buyer using line 120 and 220 to calculate line 303 – the final amount due.

Section K deals with the seller’s side of the transaction. It will detail and total any reductions in the final amount due to the seller at close.

Check these figures carefully and make sure they are accurate.

The Third Section

Section three details the various settlement charges such as brokerage fees, lender fees, title insurance, escrow deposits, recording fees, etc.

Once again, make sure these fees are accurate and do not hesitate to ask questions of the closing attorney if you have any.

The Fourth Section

This is the Good Faith vs. Reality section, and many real estate professionals feel that this is the most important section for the buyer – and for good reason. In this section you will find a line-by-line comparison of the estimated costs of the loan versus the actual costs of the loan.

The final line will have a dollar amount and a percentage that the actual amount varies from the estimated amount. Most of the time this percentage is minimal, but on occasion, lenders make mistakes. If the amount exceeds 10-percent, the borrower is entitled to a refund for the overage.

The Final Section

The final section of the HUD-1 settlement form deal with the particulars of the loan. It will cover loan amount, interest rate, monthly payment, amount of insurance, etc.

So, that’s it. The HUD-1 form only looks intimidating. In reality, it’s very simple, and you shouldn’t feel intimidated as you check it line by line. It’s a very important document. Make sure to read it to protect yourself. Contact me today for a consultation. I will be happy to answer any questions you may have and/or help you find the home of your dreams.

Patty Ross
831-236-4513
pattyre@comcast.net
www.pattyrosscarmel.com 

Photo courtesy of Alexander Owens at Flickr.com.