Good news came down the pipe in April for Savannah luxury home sellers. Sales of Savannah homes in the $1 million plus price range jumped 125% over the same period in 2013. Also, Savannah homes in the $750,000 to $999,000 range climbed 60%. Obviously, a welcome sign for sellers who have watched high-priced homes sit in a stagnant market since the real estate bubble burst in 2008.
Check out the chart below and you’ll see how the luxury market ($500k to $1 million plus) is taking off on a percentage basis compared to all other price segments.
On Pace for the Best Year Since 2008
If 9 more million-dollar homes sell this year, it will be the best year for Savannah home sales in the $1 million and over price segment since 2008. For comparison sake, 79 homes sold for $1 million or more that year. In 2009, only 18 sold in the Savannah area.
In the first quarter of 2014, nine houses — $1 million or above — have already sold, while eight have sold in the $750,000 to $999,000 range. Most sales have been in the Skidaway Island and Savannah Historic District. According to the MLS, 22 sold in 2013 — 5 in the first quarter — so all signs indicate sales will surpass 2013 numbers in 2014.
Facts About Homebuyers of Luxury Homes
- Percent of first-time and repeat buyers with household incomes of $200,000 or more: 8%
- Percent of first-time and repeat buyers who bought homes priced $500,000 and more: 9%
- Percent of first-time and repeat buyers who bought homes 3,501 sq ft or more: 10%
Source: 2013 NAR Profile of Home Buyers & Sellers
Networking and Marketing
As you can see, the market for prospective buyers in these price ranges is limited and strategic networking and marketing are the key to moving luxury properties.
Here are a few suggestions on how you, as a seller, can position your luxury property for a faster, more lucrative sale.
- Stage Your Home with Gusto – You have to capture the imagination of buyers of million dollar homes. That means going beyond the typical open house to capture their attention. Consider throwing a party at your home to display its beauty.
- Target your Marketing Plan – Affluent buyers are a targeted market and you need to work with a professional who knows how to target your luxury home to those who can actually afford to complete the purchase.
- Utilize a Network – Real estate professionals who specialize in selling luxury properties have a network of financial planners, accountants, investment managers and other professionals who work alongside affluent buyers. They will have expertise in utilizing this network to find buyers who have the means to buy your property.
The Bottom Line
Be encouraged if you’re selling a million dollar property, the worst of times seem to be behind us. This could be the year you sell your home even if it’s been on the market for months or years. Also, if you gave up and delisted your home now is the time to list it again. If I can help you in any way, please let me know.
Contact Me at [email protected] or 912-844-9000.
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Ed Yannett has been involved in some facet of the real estate industry for over 20 years. He rehabbed and sold his first house in Denver. After moving to Savannah, he renovated and sold dozens of properties throughout the Savannah area. He also owned and managed two large apartment complexes with 240 units.
After graduating from Metropolitan State University of Denver where he studied Economics, Finance and Real Estate, he worked as an executive recruiter. Ed launched his full-time real estate career in 2000 after moving to Savannah, his wife Lisa’s hometown. After renovating and selling his first property in the Savannah Historic District, he and Lisa purchased a house on Isle of Hope to raise a family.
Why Work with Ed?
Ed offers you something most realtors can’t. He has firsthand knowledge of all sides of a real estate deal – buying, selling, renovating, investing and financing. So whether you’re looking for the perfect home for yourself or your family, want to sell your property quickly, or are interested in generating investment income, he can provide you the expertise you need. Contact Ed at [email protected].