Earl Coleman

How to Sell a High-End Home During Any Market

by Earl Coleman

Considering the value of high-end homes, it’s understandable that luxury homeowners and agents would be interested in moving these properties in any market. The world of high-end real estate is unique, however, in that it doesn’t follow the standardized formula that many agents are used to. A repetitive sales system or a one-size-fits-all strategy doesn’t apply when entering into multi-million dollar listings.

Why not? For one, buyers of luxury properties are different than those who purchase homes at a more modest price. Additionally, part of the secret to selling high-end homes lies in creating the right story to connect with potential purchasers.

Here are some tips you can implement to sell a high-end home in any market.

What is a Luxury Home?

Before we get into how to sell a luxury property in any market, we need to define what a high-end home is. Keep in mind that this definition can vary depending on area, but generally, a luxury property is any home above the grade of the current market. It typically has high-end finishes, compelling architectural design, and a higher square footage than most surrounding properties.

Luxury properties often have distinct views and special features like expansive outdoor living spaces, a chef’s kitchen, a wine cellar, sports courts, or a theaters. Luxury real estate is usually exclusive with highly-desirable features like location in a private community or townhomes on a private floor.

Who are Luxury Home Buyers?

Luxury home buyers are sometimes seasoned real estate purchasers and almost always affluent people motivated by desire and not need. They look for a connection with a property, in its current state or as a framework to create something that allows them to live a specific lifestyle.

People who buy high-end homes want properties that work seamlessly with their lives in every aspect from morning to night, considering factors like rest and relaxation, work and the care of children, entertainment and more.

Creating the Story

Asking your sellers the right questions and listening carefully to their answers helps you craft the right story to sell a property. Understanding the high-end homeowners’ psychological connection to where they live is key. What makes their life the way it is because of their home? What do they love about the property? Strive to leave no detail uncovered as you delve into the homeowner’s relationship with such a home and what would compel luxury buyers to part with their cash to achieve the same.

Once you’ve uncovered the story and considered how you’ll tell it to potential buyers, it’s time to market the home in a way that specifically targets those who would be an excellent fit for the property. Consider a cinematic video where you show humans interacting with the home as they would in real life, such as a person waking up in a bedroom and walking out onto a deck to enjoy the morning view. Or scenes that show a homeowner entertaining poolside or in a private vineyard.

Create a script and storyboard based on your discovery question and answer session with the seller. Think about how you can incorporate current lifestyle and design trends and show what life in the property is like without the buyer even stepping foot in the home. Today, video is one of the most effective ways to connect a consumer with a product instantly.

Pricing High-End Real Estate

Pricing luxury real estate correctly is crucial. Because there’s a smaller percentage of high-end homes on the market than average-priced properties, luxury buyers and their agents will likely remember every home they’ve looked at and will easily recognize price drops.

Additionally, luxury agents should clearly understand the difference that location makes when choosing comparable properties. For example, they should know in detail what makes one neighborhood or street more desirable than the other and be able to account for unique factors that influence luxury home values like views, controlled access, and privacy.

What to Include in a Luxury Home Sales Strategy

What might a good luxury home sale strategy look like? Among other tactics, you should:

Build a buyer persona. Become familiar with the desires of the luxury buyer.
Interview your seller. Ask questions to determine why the home is desirable.
Draft your story. Create a storyboard complete with model profiles.
Take impeccable photographs. Look for a photographer who is a great visual storyteller.
Shoot cinematic video. Show buyers what a luxury lifestyle in the home looks like.
Host events. Showcase the high-end home through broker and client parties.

Assumable Mortgage for Buyers FAQ

by Earl Coleman

What is an Assumable Mortgage?

An assumable mortgage is a type of home loan that allows a homebuyer to take over the existing mortgage terms from the seller. Many government-backed loans, such as FHA and VA loans, are eligible for assumption, and millions of these mortgages are available.

Why do buyers use Assumable Mortgage?

Assuming a mortgage can seem complex and unfamiliar. Earl simplify the process by providing white-glove support and expertise at every step.

Earl helps home buyers find and purchase homes with a low-rate assumable mortgage included. Once you find your dream home, Our team manages the process of assuming a low-interest rate mortgage, helping buyers save thousands a year on mortgage payments compared to buying with a traditional mortgage at today’s rates. On average, buyers who use our service and save $15,000 in mortgage payments annually.

Why is an assumable mortgage valuable?

When interest rates on mortgages are high, assuming a mortgage with a rate as low as 2% allows buyers to save up to thousands monthly compared to buying a home with a traditional mortgage at today’s rates. A low-rate assumable mortgage could be the key to finding your dream home at an affordable price.

Will an assumption work for me?

An assumption might be a suitable option for you if you meet the lender’s qualifications. We also offer Roam Boost to help buyers reduce the down payment required to a minimum of 15%.

What does it take to qualify for an assumption?

To qualify, you must meet the current FHA, VA, or USDA loan requirements depending on the type of loan you are assuming. This typically means a minimum credit score of 580, although most lenders prefer 620-640. Your debt-to-income ratio should be under the 50% max under FHA guidelines. Additional information such as employment history, explanations of income for each applicant, and asset verification for a down payment may be needed to process the loan.

Will you approve me for the loan?

No, we do not handle mortgage approvals. The lender or servicer who holds the original mortgage handles the approval. Roam’s role is to facilitate the process and provide coordination, support and guidance along the way.

Do I need a preapproval?

Yes, most listing agents will not entertain an offer without a preapproval. Once your offer is accepted, the seller’s servicer also underwrites the loan and checks your credit score, debt-to-income ratio, and other financial factors to see if you meet minimum requirements.

Can I assume a VA loan if I’m not a veteran?

Yes. Non-veterans can assume a VA loan, provided they meet the lender’s VA criteria. When a qualified buyer assumes a VA mortgage from a veteran or active-duty service member, the seller’s VA loan entitlement remains tied to the assumed loan until the buyer pays off or refinances the loan. This process restores the veteran seller’s entitlement, enabling them to use their VA benefit for a future home purchase.

How much are typical closing costs and can they be wrapped into the assumable loan?

Closing costs can vary significantly based on the specifics of the transaction. They typically include fees for services such as home inspection, title search, and other administrative tasks. Generally, these costs cannot be wrapped into the assumable loan. However, if you’re using a second mortgage to finance the home, these costs could potentially be incorporated into that loan.

Can I put more money down to lower my payment?

For the mortgage you are assuming, the payoff schedule remains the same, and putting more money down would only affect the outstanding mortgage balance. However, if you are using a second mortgage to finance some of the home, putting more money down reduces the amount you need to borrow, which can lower your total monthly mortgage payments.

Do I have to pay a down payment?

The required down payment amount for an assumable mortgage is the difference between the purchase price and the seller’s remaining loan balance. You can either use cash, a second mortgage, or a mix of the two to fund the down payment. If you need help connecting with a secondary mortgage provider, our partner SpringEQ offers assumption-specific options.

I am interested in buying a home with Earl, what should I do?

Earl has compiled available listings with low-rate assumable mortgages for you to browse. To get started, enter the city, state, zip code, or school district you’re interested in purchasing in. Utilize the search filters to narrow down your search. Click “Get Notified” to save your search preferences and activate listing notifications—we’ll email you as soon as new listings match your criteria.