10 Reasons Why Now Is The Perfect Time To Sell Your Luxury Home
COVID-19 has had an effect on luxury home sales that we're still feeling in 2021, even with the introduction of a vaccine. But, believe it or not, NOW is the perfect time to sell your luxury home. If you're thinking of moving, you’re in need of more space, or you're ready to downsize, we can help you make now the best time to put your home on the real estate market.
At the beginning of the pandemic, the number of showings and sales dropped off significantly. International interest had also dropped, and travel restrictions slowed down the purchase of U.S. luxury real estate by overseas buyers.
The market was at a standstill and many real estate agents were uncertain about what to expect.
Most buyers had completely paused anything they were doing, and it took a little while for people to start trying to return to life as normal, or consider buying a house again. Sometime around May and the beginning of June, people began to realize that they were going to be where they were for a while, and they either needed to learn to like it or find someplace else where they could be happy isolating. That prompted a return to the buying market and activity increased quickly
As a result, the luxury market has not just recovered but excelled and luxury home sales were up a whopping 61 percent year-over-year for Q4! That's the largest jump since 2013.
What Selling A House Looks Like During COVID-19
The luxury real estate market is actually prospering in spite of, and maybe even because of, the pandemic.
In fact, houses are selling twice as fast as they were before the pandemic began. They're going so fast that we know if your house isn't under contract after two weeks on the market — or 45 days for luxury listings — we recommend a price adjustment.
All of that said, COVID has affected what homebuyers need and are looking for in a luxury home. These 10 changes are important to note if you are thinking about selling because meeting these needs is the perfect way to sell your house quickly and at top dollar in today’s bustling real estate market.
Keep reading to learn just what has changed in the luxury real estate industry and why it means it’s the PERFECT time to sell your home.
10 Ways COVID Has Affected What Buyers Are Looking For in a Home (and Why Luxury Homes Fit the Bill)
1) People Prefer Pools
For one thing, a lot of buyers are looking for a pool because they can’t take their kids to community/HOA pools anymore. There are plenty of luxury homes that have pools, especially pools with a screened-in lanai, which you can enjoy almost all year.
2) Buyers are Leaving Big Cities
We're seeing people migrate from big metropolitan areas like New York City, Boston, and Philadelphia because of the density and propensity for community spread. They're either moving to smaller cities in their home state, or they're heading to Georgia, Florida, and North Carolina. In fact, a lot of people are coming here to Florida because it's not only warm in the winter, but we also have no state income tax. We're even seeing people move here from California to maximize their dollar.
3) Remote Work Makes it Possible to Live Anywhere. . .
People are starting to realize that if they can work from home, they can work from anywhere. They no longer have to telecommute from Manhattan or San Francisco, they can telecommute from Orlando. They still have their job, they can play golf, they can have a pool, and they're able to live the lifestyle they thought they wouldn't enjoy until later in life.
4) . . .But People Want TWO Offices
We're also seeing changing home trends. For example, now that both spouses are working from home, they often need two offices. People want privacy for their phone calls and Zoom meetings, so properties with multiple work spaces are moving quickly.
5) And They Want Privacy
This has had an effect on the desire for completely open concept living because people want the ability to be by themselves for a little while. Having a home office out in the dining room or tucked away into a corner of the living room isn't as convenient or conducive to working from home, so private offices are on a lot of people's wish lists.
6) However They Still Want Open Concept Living
Buyers aren't completely abandoning open concept living though. They still want a space where they can bond over meals and cooking. Since they're getting more one-on-one time with their family, they want an open kitchen concept that removes barriers between the kitchen and the home's social spaces.
7) Home Gyms Are All the Rage
We're seeing more of an emphasis on a home gym now. Since gyms are considered a high-risk area for people, many people are opting for treadmills, Peloton bikes, or exercise machines at home. And, if you live in Central Florida, it's great to have access to outdoor workouts year round - especially during November to April, when most people are tucked inside to avoid the cold — another reason people are migrating from up north.
8) Energy and Water Efficiency Matter
Energy and water efficiency are becoming a bigger issue as well. Since people are spending more time at home, they're using more electricity and water than they did when they were only home in the evenings. People who are doing home improvements are also taking that energy efficiency into account when they upgrade their insulation, HVAC, and windows.
9) Outdoor Entertaining is Ideal for Small Groups During Lockdown
People want space for their outdoor and entertaining areas. With the sun shining and nowhere to go, backyards are more of a haven than ever before. Why not continue that trend well into the future with an updated open-air living space that invites the entire family into the outdoors?
10) Don't Forget Space for a New Hobby
Finally, many buyers want space for their hobbies. If you’re like most people, you’ve picked up a new hobby or embraced an old one because you’ve had more time on your hands. Across the country, there has been a growing popularity for hobbies like crafting, gardening, and music. So, you can turn an outdoor area into a gardening spot or one of your garage bays into a woodworking area.
The Good News For Luxury Home Sellers During COVID
All the signs point to this being a great time to sell your luxury home in the Central Florida market. For one thing, there is a big lack of inventory, but there are plenty of buyers, especially with so many people moving to Florida. That can mean multiple offers for a single listing. Just this past September, the World Property Journal reported that there is less than one month's supply of the most in-demand price ranges of homes.
We're also seeing homes sell twice as fast as the pre-COVID times, which means it's a seller's market and the buyers know they have to hurry if they want to jump on a great house before anyone else spots it.
And with low-interest rates, buyers returning to the market, pent-up demand, and a recession that will make a correction in Q4 or Q1 of 2021, we don't know how long this market will last. But if we've learned anything from 2020, it's that things can change at the drop of a hat.
How To Stay Safe While Selling a Home During COVID?
Naturally, people have concerns about selling their home during COVID, and the thought of having strangers in your house, whether they're potentially sick or not, is one such concern. This has affected the way real estate agents operate, not only in how they show homes to potential buyers but the steps they take to keep both their sellers and buyers happy while still keeping them safe.
So how can you sell your home and be safe? And how can we as realtors assist our buyers and sellers, promote their homes, and keep them safe as well?
For the most part, it's just a matter of practicing common-sense safety measures, like requiring everyone to wear a mask during meetings and open houses, having hand sanitizer available for open houses, wiping down surfaces and knobs before and after every showing, and making sure people take their shoes off when they enter a home.
We recently had a client, a husband and wife, who both worked from home during the week, which meant we had quite a bit of coordination taking photos, doing the walkthrough, shooting a 3D tour, and helping with staging and getting the house ready. All of that took longer, especially with the 3D tour. We have to coordinate with their work schedules to be able to conduct showings, and so on, but we were able to get everything finished and work around their schedule.
This is what selling a house looks like during COVID-19.
In "Closing"
If you're in the market, or you've been thinking about it, NOW is the best time to talk to your real estate Listing Specialist, Linda Sitek, and get your home on the market.
If you want to learn more about buying or selling a luxury home in Central Florida, you can subscribe to our email newsletter, visit our website, or call Linda and Steven at (321) 300-4750.
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Steven Ritz, Buyer Specialist - Call 321-277-8271 or email here
Linda Sitek, Listing Specialist - Call 407-963-6544 or email here
Brought to you by Abode at Keller Williams Winter Park Realty
