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07/03 - Selling

Selling a Luxury Home: What You Need to Know

Welcome to our in-depth guide to navigating the dynamic world of luxury real estate, specifically honing in on the thriving market of Toronto.

Understanding the subtleties of the high-end market is pivotal for success in selling your home or purchasing premium properties. This in-depth article will help you peel back the layers of the luxury housing landscape, offering a detailed analysis of demographics, current market trends, high-end property features, and strategies for setting the right price.
From the art and science of pricing your luxury home, and crafting an impactful marketing strategy, to understanding the role of presentation and staging in selling premium properties, we delve into every aspect of luxury real estate transactions.

Whether you’re a seller aiming to highlight the unique features of your luxury home, a potential buyer from halfway across the world, or a local realtor seeking to step up your game in the luxury market, this comprehensive guide is designed with one goal in mind – to elevate your understanding of the luxury real estate market in Toronto.

A sophisticated understanding of the luxury market is paramount.

1/ Demographics: According to reports from Sotheby’s International Realty Canada, in recent years, Toronto has seen an influx of domestic and international buyers, increasing numbers from China, the Middle East, and the United States. These high-net-worth individuals seek residences that offer comfort and an emblem of their status. Consequently, properties featuring grand architecture, modern amenities, and unique designs stand out.

2/ Market Trends: Based on a 2021 report by RE/MAX, the luxury property market in Toronto witnessed an uptick despite the global pandemic, partly due to low-interest rates and limited inventory. Sellers should monitor these trends regularly to capitalize on favourable market conditions.

3/ Luxury Features: A survey by Luxury Portfolio International identified that high-net-worth buyers are increasingly prioritizing lifestyle features such as proximity to premium dining and shopping, home offices, smart home technology, eco-friendly amenities, and wellness facilities in their luxury homes. Highlighting such features in your property can significantly increase its allure.

The Art & Science of Pricing Your Luxury Home:

Pricing a luxury home requires a balance of factual analysis and market intuition.

1/ Professional Appraisal: Using a third-party appraisal company to value luxury homes offers numerous advantages, providing a comprehensive, unbiased, and expert assessment of a property’s worth. They examine a myriad of factors like location, size, construction quality, the state of the market, and comparable property values in the area. This precision is essential in the luxury market, where properties are unique and extravagant features may add significant value. Appraisals help protect sellers from underselling. Ultimately, the involvement of a third-party appraisal company can bring credibility, precision, and fairness to the often complex process of valuing luxury homes.

2/ Market Analysis: According to a Knight Frank report, Toronto ranked 3rd in the global list of cities with the highest luxury real estate price growth rate in 2020 – this reinforces the need for a comprehensive market analysis to ensure your property is competitively priced. An experienced real estate broker plays a pivotal role in providing a market valuation on a luxury property, bringing their wealth of experience, deep knowledge of local markets, and an understanding of buyer sentiment. Such brokers have a broad knowledge of the nuances of luxury real estate, from recognizing the value-add of high-end finishes and amenities to evaluating the prestige associated with specific locations or architectural styles. Furthermore, they can leverage their extensive network and proprietary databases to compare similar properties and discern market trends. It’s important to note that while their valuation may not replace an official appraisal, their insights offer invaluable context, helping sellers to position their properties effectively to attract the right buyers and advising buyers on the suitable price range for investment.

The Power of Staging & Presentation:

Creating an immersive experience through staging and presentation is essential.

Staging: According to a 2021 report by the National Association of Realtors, over 75% of buyers’ agents reported that professional staging significantly enhanced their ability to visualize a property as their future home. This underscores the potential impact of professional staging in the real estate market, particularly for luxury properties. Through thoughtful layout design, stylish furniture placement, and careful selection of decor, professional stagers create an inviting, aspirational environment that can help potential buyers emotionally connect with the space. This emotional connection often leads to a perceived increase in property value, a quicker sale, and a higher selling price in many instances. More than just a superficial makeover, professional staging effectively highlights a home’s best features while minimizing any potential drawbacks, allowing buyers to see the full potential of their investment. Therefore, in today’s competitive real estate market, professional staging is not just an added benefit—it’s a strategic necessity that can dramatically enhance a luxury property’s marketability and perceived value.

Professional Photography & Videography: Photography and videography have become paramount in the modern real estate industry, where most buyers first discover their potential homes through online platforms. A compelling visual presentation can significantly influence a buyer’s perception of a luxury property and motivate them to explore further. A study conducted by Redfin suggests that homes showcased with professional photographs sell for up to $11,200 more and 50% faster than homes without professional photos. The reason is apparent: high-quality images and videos capture the architectural beauty and unique features of a property and convey the lifestyle and emotions associated with living in that space. In the luxury market, where buyers expect a certain level of sophistication and attention to detail, compelling visuals can create a powerful first impression. They also allow for global reach, bringing the property to life for international or remote buyers. Thus, investing in professional photography, videography, and drone imagery is no longer optional for seller agents—it’s an essential part of effectively marketing a property and maximizing its appeal in the digital era.

Choosing Your Luxury Real Estate Agent in Toronto:

Selecting the right luxury real estate agent in Toronto is crucial in successfully navigating the high-end market. Luxury properties require a different approach compared to conventional real estate transactions, and here are a few reasons why choosing a luxury real estate broker is pivotal:

  • Specialized Knowledge
  • Experience in High-end Transactions
  • Global Connections & Networks
  • Marketing Expertise
  • Discretion & Privacy
  • Time & Resources
  • Full Team Including Agents, Stagers, Marketers & Administrative Support

When selecting a luxury real estate broker, it’s essential to consider their reputation, track record, knowledge of your neighbourhood, and approach to marketing luxury properties. Remember, they will be your primary advisor and representative in the selling process, and their expertise can significantly influence the outcome. Hence, investing time in choosing the right luxury real estate broker is wise.

In Summary:

The world of luxury real estate, specifically the thriving Toronto market, is complex and dynamic and demands a sophisticated understanding. Demographic changes, evolving market trends, high-end property features, and an informed pricing strategy are crucial elements that drive the success of selling or purchasing premium properties.

Clearly, the luxury real estate market goes beyond mere transactions—it’s about curating an experience that resonates with high-net-worth individuals and represents their unique lifestyle aspirations. The art and science of pricing luxury homes demand the expertise of professional appraisers and real estate brokers who understand the nuances of the high-end market. Presentation of these premium properties, through professional staging and high-quality photography and videography, creates a lasting impression, helping buyers visualize the property as their future home.

Moreover, crafting an impactful marketing strategy through targeted marketing, open house events, and leveraging social media platforms is essential for maximizing visibility and appealing to the right audience. And it’s impossible to overlook the importance of networking in this exclusive market—having an extensive network of connections is often a defining characteristic of a successful luxury real estate agent.

Choosing the right luxury real estate agent in Toronto is paramount to navigating this intricate landscape effectively. Someone with specialized knowledge, experience in high-end transactions, global connections, marketing expertise, and a commitment to discretion and privacy can significantly influence your success in this premium market.

Whether you’re a seller, a buyer, or a realtor looking to step up your game in the luxury market, an in-depth understanding of these facets will empower you to make informed decisions, seize opportunities and confidently navigate the vibrant Toronto luxury real estate market.

Contact Fox Marin, Toronto’s downtown luxury real estate brokerage, today to learn more about selling your home!

Contact Us (We’re Nice).

Kori Marin is a Toronto Broker & Managing Partner at Fox Marin Associates. For high-energy real estate aficionado Kori Marin, a well-lived life is achieved by maintaining an “all-in” attitude that realizes every last ounce of one’s full potential. This mindset has driven successful results in every aspect of her life – from her corporate sales and account management experience to her international travels to her years of fitness training and leadership – and is the hallmark of the exceptional work that she does on behalf of her clients in the residential real estate sector in downtown Toronto.