If you are considering selling your luxury home this spring here are some tips you should consider. Barrington, Inverness, Long Grove and the surrounding communities with luxury homes are seeing more luxury home sales. That said complacency is dangerous. You’ve got competition.
Selling Luxury Homes – Your Pricing
Luxury home sales in our area are back on the rise. Perhaps it’s just more luxury home coming back to the re-sale market, spurred on by the recovering economy and confidence in where to invest. When it comes to luxury home buying there is also an element of investment. In the last 10 years investing in real estate was put on hold while the market sorted itself out.
I have seen some steep luxury home price climbing in some areas, Inverness certainly comes to mind. So how do you determine the price of these one of a kind homes? We need to start with these four basic principles.
- Location, location, location. Location always matters to buyers and when you are ready to price your luxury home it’s time to be uber critical and look for the bad alongside the good. No two homes are alike and this is never more apparent than in the luxury market. Here in our country suburban area, our luxury homes are somewhat centered together in the same neighborhoods and areas. However if your luxury home backs up to a residential access road or main street, you simply cannot compare it exactly to the one that has conservation behind it.
- Size. If there is a size-able square footage difference, the price difference should also be noticeable. Do not confuse above grade living space with below grade. It is not the same. Consider if you were a buyer: Would you pay more for a walk out basement than one without windows? Would you pay more for square footage above grade than below? Yes we thought so!
- Uniqueness. The definition of unique is “Unlike anything else”. That can be good but also bad. Is your property really unique and if so is that going to make it harder to sell. It all depends on what your property’s uniqueness really is.
- Comparables. We have to use similar home sales to establish a price range. When selling luxury homes this can very often be almost impossible. To a point all luxury homes are unique because they are all different. As long as we can come up with a range of prices and the difference between top and bottom is not widely apart, it’s a good starting point.
What Are Luxury Home Buyers Looking For
Luxury homes. That term is totally subjective, don’t you think? There is not one size, style or design that embodies a luxury home. It’s all about the lifestyle a property provides, it’s features and extras, sometimes it’s space. What a luxury home looks like is different to us all. I sure know what I would want in a luxury home and I am sure you do to. So do luxury home buyers.
Here are some of the top features sought out by luxury home buyers:
- Pools and spas
- Lawn irrigation systems
- Exterior fireplaces and entertainment space
- Heated floors/driveways
- Sophisticated security/surveillance systems
- Landscape lighting
Here are more common ones for Barrington:
- Superior kitchens
- Fabulous bathrooms
- Several fireplaces
- Open plan entertainment spaces
- A level of separation from neighbors
- Living quarters for in-laws or nanny’s
- Bars – tasteful
Size plays a very important part of the luxury home buying choice too. Whether it’s a lot of bedrooms, huge great rooms, multiple office spaces, spacious outdoor living areas or even more garages and outbuilding, even acreage, all of these play a part. It isn’t necessarily that bigger is better, it’s all about a buyers existing or desired new lifestyle.
How To Increase Your Luxury Home’s Value – The Kitchen
We are often asked before listing a luxury home for sale what needs to be done to achieve that fast sale.
If there is one room you can really go to town on, it’s the kitchen. It will not only appeal to the lady of the house – if there is one, but also the cooks, kids, maids, in-laws, Nanny, and even just the plain ole sandwich making guys. The kitchen is often the gathering place in your home, especially during family visits and holidays.
- I have yet to have any buyer be so blown away by all that a kitchen offers. I am with them. Often the most disappointing part of a kitchen is the size. It seems builders get to a certain size for the kitchen and stop. Luxury home buyers want superior kitchens. So come on folks let’s give them one.
- Of course it’s unlikely you can increase the kitchen footprint so go to town on what else it offers. Affluent home buyers want more than new appliances and chef’s kitchens. There’s a huge array of high-tech kitchen gadgets available.
- The latest trends are touch-less faucets and pot water filers by the cook top.
- Smart refrigerators can alert owners when groceries are getting low.
- How about bluetooth devices that alert you via mobile when your food is ready?
- Sub zero fridges are still in vogue, and for big families to have two is a dream.
- Wine coolers in the kitchen are popular.
- Luxury homes that have double ovens, warming drawers, and additional ranges, are going to win the day.
- For a big family get together and entertainment events the more ovens the better!
A high priced home with laminate kitchen cabinets, no handles and Corian counters will be poorly received. Granite still rules, double slab gets oohs and aaahs, marble and quartz tops are a good second choice. Corian my friends is out. A second color granite for the island is perfection.
Solid wood cabinets are well received and an island in a contrasting wood exudes luxury. White is coming back as is magnolia for cabinetry. Cabinet finishes include opaques and glazes, antique or vintage distressing. Cabinet mouldings and embellishments will give a kitchen warmth and character.
Soft close doors and drawers are deemed required in luxury kitchens. Then there are all the cabinetry interior extras to make life in the kitchen easy and organized. Pull out drawers, deep drawers, hidden spice racks, pull out tray holders, roll out shelves, trash and recycling pull outs and so on.
What’s the Cost? it’s fair to say the skies the limit when it comes to kitchen. Of course if you are renovating to live in for a while before selling you likely won’t mind spending more. If you are renovating because your kitchen is tired and is not the shining example of your home, then you can spend a whole lot less.
The question you should ask is this. If I spend $65,000 on a new kitchen will I get my money back? The cost versus value estimate for major kitchen remodels is 78.2% in the Chicago area. A minor remodel on the other hand is going to yield 102.9%. (Taken from data provided by Remodeling) So take your pick and decide how to update your kitchen. If you need a full remodel, don’t be disheartened by the 78% ROI. The chances are you’ll save more money by getting a much faster sale. Which means less mortgage payments, insurance payments, real estate taxes and so on, all of which might just get you to that 100% mark.
Other Great Preparation Tips For Selling Luxury Homes
In addition to the kitchen, bathrooms should get special attention too. The ROI is going to be 103.2% for a bathroom remodel. Of course it goes without saying you need to neutralize the homes decor; switch out the dark or mismatched carpets, caulk all the cracks and paint as needed. Please don’t forget your curb appeal either. Here in Barrington we suffer at the hands of some bitterly cold winters, snow and ice. Those driveway cracks do nothing but tell a luxury buyer you don’t care to maintain your home. Fix it then list it.
By the way, do you want to know what can get you over 150% return on your investment here in the Barrington and Long Grove areas? Garage doors. My guess is we all leave those until they are on their last legs.
Super Luxury Updates
The numbers quoted above do not apply to those very high priced and estate sized mansions. Of course the cost will be higher, I have known over $200,000 be spent on a new kitchen. That will still yield a 71% return, and while other projects may not hit that magic 100% mark, they are still quite high; more importantly they elevate your home above the competition.
Our market is full of luxury homes and very high priced luxury homes. Remember whether or not someone sees a home as luxury is determined by their rules not yours. They have a list of wants and needs to fulfill their home buying dream. If they are coming to view your luxury home, you have passed the first test, now it’s time to wow them.
Can We Help? Call Corinne at 847-363-3686.