Alexander Meskouris discusses what sellers need to understand in the luxury real estate market
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 the best price in the luxury real estate market.
Alexander Meskouris says that 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-priced unit before marketing it to their taste and aesthetic.
While there is certainly a lot of money to be made in this area, Alexander Meskouris says sellers need to be careful not to exceed their investment or they will run the risk of losing profits. 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 No. 1 risk for luxury real estate sellers
When comparing two properties side by side, a luxury unit will appear larger, better positioned, better furnished, and perhaps even with a better view. However, Alexander Meskouris claims that the construction of luxury homes requires a greater financial investment from the developer. If they find it difficult to sell the luxury properties in a reasonable time, they could lose the investment they have made.
For example, construction of a row of ultra-luxury apartments in Manhattan, known as Billionaires’ Row, began in 2009 and today consists of seven luxury apartment buildings. However, since its construction, nearly half of Billionaire’s Row remains unsold. Among the apartments sold, most remain uninhabited.
With a construction cost of around $1.5 billion per building, Alexander Meskouris says it’s crucial for the developer to sell quickly and fill the buildings as soon as possible. However, this turns out to be more difficult than expected.
What sellers need to consider to make a profit
In order to make a profit on their high-priced properties, sellers must pay close attention to their market and create the idea that their units are rare, elite, and worth every penny of the price. These considerations are actually quite similar to what any real estate developer or seller would consider, but on the scale of a luxury aesthetic according to Alexander Meskouris.
Some of these considerations include:
- Hire the right real estate agent – In order to sell a luxury property, sellers must hire experienced real estate agents with specialized knowledge in selling high-end homes. They will know the buyers in this market and know how to sell the property to them in a way that suits the tastes of the wealthy.
- Assess the property correctly – When it comes to price, even luxury properties have a goldilocks area. Most apartments in Manhattan’s Billionaire’s Quarter are bought to be little more than an investment for the nation’s wealthiest. If apartment prices are too high, it reduces the potential profit a buyer could make by purchasing the unit.
- Staging the good – As with all real estate, it is important to stage the property in a way that appeals to buyers. For luxury properties, Alexander Meskouris says that means selling amenities like Michelin-starred chefs, celebrity interior designers and sweeping sweeping views of Central Park.
- Marketing of the property – Marketing is the number one priority for many sellers. They need to be selective about who they sell while being forgiving enough that any legitimately interested party can see the property and make an offer. This means going through select channels that have ties to the wealthy elite.
- Negotiate the sale – Unlike standard real estate sales, most luxury sales go through a legal team trained to negotiate million dollar deals. Both buyer and 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 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 this can be very profitable in the long run, the initial selling period can be fraught with anxiety.
Alexander Meskouris explains that selling luxury real estate is a process that requires patience, attention to detail and a willingness to negotiate. Although this is a highly competitive market, sellers who are able to navigate the market and find a buyer willing to pay top dollar for their property can make a significant profit.
Their considerations must go beyond the standard real estate market as they must accommodate the unique tastes of the wealthy elite. From staging to marketing, every step of the sales process must be tailored to this market if sellers hope to make a profit on their investment.