Selling Extraordinary Properties:
Luxury Homes Offer Unique Value and Unique Marketing Issues
If you built the home you plan to sell, you probably designed it to accommodate your personal needs and lifestyle. If you purchased an existing home, there is a good chance you personalized the structure after you acquired it. This represents one of several issues you and your professional will consider when drafting a marketing plan.
Unique homes appeal to smaller audiences. This should not discourage you, but it should get you and your real estate specialist thinking. There are styling techniques that can charm a larger set of buyers. Good marketing strategies can reach qualified and interested home shoppers wherever they live. But this takes considerable work. You should make sure your professional is up to the task!
Important issues for marketing exceptional homes include:
• Buyers of luxury homes often come from outside the immediate geographic area. Many buyers simply want to move to a beautiful area like Boulder County. Some seek a dwelling where they can entertain corporate clients and associates. Others desire a second home or a family retreat. Whatever the motivation, luxury homes often must be marketed where potential buyers currently live. This can mean extensive use of the internet, extra effort in identifying likely buyers and connecting with real estate pros in other areas. Don't be afraid to ask a potential marketing agent about attracting out-of-the-area buyers.
• Not everyone who wants to see your home can afford it. Often very expensive homes attract what some professionals call "decorating tourists." These are usually well-meaning people who love to visit homes they could never afford. Occasionally less savory sorts also appear at open houses, or even arrive with unsuspecting real estate agents. In Boulder, if your home will sell above $2 million, your licensee probably should take extra percautions. Though no professional can guarantee the motives of every prospective buyer, your real estate agent can take steps to screen many visitors.
• Exceptional homes often are highly personalized homes. Unfortunately, those who can finance the purchase of your home also want a home personalized to their particular tastes. Your professional should help you see the residence as others will see it so you can make simple changes that will make the home more appealing to a larger collection of buyers. Your professional also should develop ideas about locating buyers who will truly appreciate a home exactly like yours.
Buying an Exceptional Home:
Financing and Boulder County Building Codes can Add Some Unexpected Twists
Whether you are purchasing a unique property as a primary residence, a second home, an extended family gathering place or because you need space to entertain important business associates, there are issues around financing and building codes you should consider before you purchase.
• Financing can be a little different to a lot different, depending on the property. For properties in the $1 million to $2 million range, you likely will take out a "jumbo" mortgage. Jumbo mortgage interest rates, which are higher than conventional interest rates, are charged when "conforming loan" limits set by FNMA (Fannie Mae) and FHLMC (Freddie Mac) are exceeded. This means all or part of the loan will probably be purchased by investors like banks and insurance companies. Investors want higher returns. If you acquire a home approaching or exceeding $2 million (homes in Boulder County sometimes are listed as high as $7 million) you may need to set aside some personal assets. In some cases, sellers will insist you prove you can access appropriate amounts of money before they will even permit a showing. A final note for business owners: regardless of a home's sale price, you may want to weigh the cost of a mortgage loan against the cost of business money. If you routinely carry business debt, you may save interest costs by borrowing against your new home instead. However, you should weigh the risk of foreclosure due to business failure against any possible financial rewards. You will want to talk to your accountant before making a final decision.
• Due to new eco-friendly building codes, remodeling a large home can get very costly. Both Boulder City and Boulder County recently have taken steps that make renovating or adding to a large home more costly than in the past. In unincorporated areas of the county, for example, codes may require you supply much of your energy requirements on-site, which often means installing photo-electric panels and other "green" technology. Boulder City and some other areas also have so-called "green" regulations. Additionally, Boulder City recently passed a "compatible development" ordinance that can restrict the size and, in some cases, the shape of additions. If you have no rennovation plans for your new home, these issues may be unimportant. However, consulting a local architect or builder before buying could save you headaches if your plans include an addition or renovation.
This article © Ron Rovtar. All Rights Reserved
Contact Ron Rovtar at 303.473.1926 or info@rovtar.com
