Alexander Meskouris is a licensed real estate agent in Manhattan. In the following article Alexander Meskouris explains what sellers need to know when trying to get top dollar in the luxury real estate market.
Alexander Meskouris says at first glance, selling luxury real estate may seem like a guaranteed jackpot but it’s a highly competitive market dominated by a frighteningly small population of buyers. For a seller to earn top-dollar on their properties, they must navigate the market to find a buyer who is willing to purchase a high-price unit before marketing to their tastes and aesthetics.
Although there is certainly a lot of money to be made in this arena, Alexander Meskouris says sellers must be careful to not overextend their investment or they’ll run the risk of losing profit. Let’s explore some of these considerations and dive into the complexities of selling million-dollar properties to the nation’s wealthiest elite.
Alexander Meskouris on the Luxury Real Estate Sellers’ #1 Risk
Comparing two properties side-by-side, a luxury unit will appear larger, better positioned, better furnished, and possibly even come with a better view. Yet Alexander Meskouris says that building luxury homes requires greater financial investment on the developer’s part. If they struggle to sell the luxury properties within a reasonable time, they could lose the investment they made.
For example, construction on a row of ultra-luxury apartments in Manhattan, known as the Billionaires’ Row, began in 2009 and today it consists of seven towering luxury apartment buildings. However, in the time since its construction, nearly half of the Billionaire’s Row remains unsold. Of the apartments that have sold, most remain unlived in.
With a construction cost of around $1.5 billion per building, Alexander Meskouris explains that it’s crucial that the developer quickly sells and fills the buildings as soon as possible. However, it’s proving to be more difficult than they expected.
What Sellers Must Consider to Make a Profit
In a bid to turn a profit on their high-price properties, sellers must pay close attention to their market and create the idea that their units as something rare, elite, and worth every penny of the price tag. These considerations are actually quite similar to what any real estate developer or seller would consider but scaled up to a luxury aesthetic according to Alexander Meskouris.
Some of these considerations include:
- Hiring the right real estate agent – In order to sell a luxury property, sellers must hire experienced real estate agents with specialized knowledge of selling high-end homes. They will be familiar with the buyers in this market and know how to market the property to them in a way that captures the tastes of the wealthy.
- Pricing the property correctly – When it comes to price, even luxury properties have a goldilocks zone. Many of the apartments in Manhattan’s Billionaires’ Row are bought to be little more than an investment for the nation’s wealthiest. If the apartments are priced too high, it cuts into the potential profit that a buyer could make by purchasing the unit.
- Staging the property – As with any real estate, it’s important to stage the property in a way that appeals to buyers. For luxury properties, Alexander Meskouris says this means selling amenities such as in-house Michelin star chefs, celebrity interior designers, and sweeping panoramic views of Central Park.
- Marketing the property – Marketing is the number one priority for many sellers. They must be selective about who they sell to while also being lenient enough that any legitimately interested party can view the property and make a bid. This means going through select channels that have connections to the wealthy elite.
- Negotiating the sale – Unlike standard real estate sales, most luxury sales go through a legal team that’s trained to negotiate million-dollar deals. Both the buyer and the seller must be prepared to meet each other’s terms and have a clear understanding of the sale before anything can be finalized.
When it comes to luxury properties, Alexander Meskouris reports that a higher price tag means higher stakes. From finding a wealthy buyer to the marketing and staging process, selling homes to the nation’s wealthiest is certainly not an easy industry. While it may be highly profitable in the long run, the initial selling period can be fraught with anxiety.
Final Thoughts
Alexander Meskouris explains that selling luxury real estate is a process that requires patience, attention to detail, and a willingness to negotiate. Although it’s a highly competitive market, sellers who are able to navigate the market and find a buyer who is willing to pay top dollar for their property can earn a significant profit.
Their considerations must go beyond the standard real estate market as they must account for the unique tastes of the wealthy elite. From staging to marketing, every step of the selling process must be tailored to this market if sellers hope to earn a profit on their investment.
