Luxury Home Owners are finding out that Bigger isn’t always better, when a buyer chooses a home it isn’t because of the name on the sign but because of the information and connection with the buyers needs. How the information gets out has changed and so have the parties most effective at doing so. The old way of flyers and agent open houses have made way for local and international networks and the ability of a brokerage to access those networks thereby creating a larger buyer pool for the seller. Here are three main reasons why Luxury Home Owners are finding more value in smaller brokerages and getting their home marketed and sold faster than ever before:
If you’ve purchased or sold a home, the one thing you come to realize quickly is the importance of flexibility. In this case, flexibility is defined as the ability to make quick and decisive decisions in the midst of the moment. The challenge that luxury homeowners face with larger brokerage companies is that often, there are layers to the decision making machine attached. For example, if the seller wants to know whether or not the brokerage is allowed or will use out of the box marketing events which require approval by the broker, then the agent must “speak with the broker” before making the decision. Once the agent has contacted the broker, the broker (not usually the owner of large brokerages) must contact the owner and then the owner must make the decision and filter it back down to the agent which can take several days in some cases. During this time, if there is a market shift or a buyer is seeking to make a buying decision based on the information looking to be obtained, the deal or the value is lost! Luxury home owners are in a different position than most home sellers. They have a smaller buyer pool and cannot risk this time table or even risk the quick response of a rogue agent who has not received the support of its organization. Prior to the Information Age this was less of a problem because access to the internet and information was slower and more methodical. Now, users access the internet in almost every household in the U.S. and greater than 60% in other countries. The slow methodical chain of command can be the cause of lost time & money for the luxury home owner
2. Specialized knowledge & Attention to Detail
Once upon a time ago, there was a smaller amount of information available about homes that were considered luxury. Now with the injection of information into the internet and social media, there is ton’s of information which was previously withheld by so called luxury agents. Before, information was king and don’t get me wrong it still is, but now, specialized knowledge and detail are the cornerstones of a successful luxury transaction. The bigger companies tout that they pass information down through the ages and through their networks, when the truth actually is that they withhold it from one another as they compete internally for monthly accolades and national recognition within their company. For smaller more specialized brokerages, knowledge and attention to detail allow them to pay attention to the small details of each transaction and use specialized knowledge in the areas of building and construction, local market trends and taxes that effect the internationally marketability of the home. While one agency may be focused on putting a large sign in the yard and how many agents work for the company they are selling on behalf or window of a condo, the smaller agency will pay attention to likely buyers, square footage comparisons and host of other details. Telling everyone you know is not strategic marketing, its a form of net fishing, if you know anything about fishing, most fisherman don’t catch whales & sharks with a net. Luxury homes are whales and sharks not a school of fish.
3. Lower Fees
Because smaller brokerages have more control over cost allocation and in most cases less expenses, they can pass the savings to sellers in the form of lower brokerage fees. With the blossoming avenue of social media as effective marketing tools, a smaller brokerage can typically spend less and do more. On million dollar homes, savings could start in the $10,000 range which could easily be applied to staging and international marketing to get the home sold faster. Agents of large brokerages cannot unilaterally drop fees without the approval of the broker. In the past, large brokerages could tout their internal network as one which could be unmatched and would be given a year or more to market homes because the local buying pool was limited. The concept of the the internal network is no more with the advent of social media. Even strategic so called luxury groups are invaded by those who have a valid proposition or valuable information that were not typical members of the group. Through CRM (Customer Relationship Management) Software, small brokers can have BIG impact for their luxury home sellers when they have strong networks with a proven track record.