NCW Real Estate Blog

I just noticed this morning that another Chelan waterfront home now has a contingent deal pending on it.  Homes, even luxury homes are still selling, just not at the levels they were.  Marketing to luxury buyers is different from selling more moderately priced homes and to be successful it is important to understand the differences. 

In fact, so far in 2008 there have been 8 waterfront sales in my usual reporting area around Lake Chelan at an average sale price of $1.612,062.  Of course, there have been 99 waterfront properties listed!  The average list price of the sales was $1,862,057.  This year there have been four 6+ bedroom homes sold for an average of $3,100,000.  That includes a sale for $3.4 million dollars this year and 3 sales over $2 million.

In 2006, 11 waterfront properties sold of the 17 listed at an average of $1,542,272.  2006 also saw individual home sales at $3.99 million, $3.05 million and $2.2 million.  In 2007, 14 waterfront properties sold of the 26 listed at an average list price of $1,386,600.  During 2007, there was one sale at $3.5 million and only one other over $2 million at $2.4 million.  So, 2008 has not been a bad year for high dollar sales in spite of only a small percentage of listed homes selling.  In fact, the high dollar sales have probably been what has kept the average sale value as high as it is this year.  For the October sales posting, click here.

It is important to remember that there is not just one category of luxury home buyer.  Some folks want a flashy “look at me” home and others seek understatement with modest outside appearance.  When marketing to the different groups, you must take an appropriate approach or you will waste considerable time and marketing resources and may not get the sale done.  It is important for both agents and sellers to understand the different groups and how they are motivated.

A posting in the Real Estate Bloggers describes the four groups and can give you a start in understanding some of their differences.  From the post, the groups are:

 The look at me affluent, those that demand to be recognized and gain fame and glory from the world recognizing their wealth.

 The dependably affluent who want things to be perfect and are very proud of it, but do not derive their self worth through their home.

The economically affluent, people who want their homes to reflect their affluences and success but need it to be practical at the same time so that they will profit from it.

And last, the anonymously affluent. These folks want a nice home but want one that is so subtle that most will not recognize the value in it. – The Real Estate Bloggers

Also remember, even a well marketed property will have to be priced appropriately to sell with all the competition in the current market.  If you are considering selling your waterfront property, it is important you understand which buyers your property might fit and get an agent who really understands luxury properties and buyers.

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