The luxury real estate market serves a select group of enthusiastic buyers and exhibits its own unique characteristics. So if you are looking to break into this market or decide whether you should be buying or selling a luxury property, you must first understand current market trends. That’s why we’ve consulted luxury real estate experts, who helped us find out the top trends shaping the luxury real estate market today. But first, let’s find out what luxury real estate is.
Buying or selling a luxury property – which way to go?
Defining “luxury real estate” is tricky since market conditions affect the criteria used to describe it. In other words, it means that what passes for luxury in a small Midwestern town would not cut it in a large West Coast metropolis.
Only the top five to ten percent of listings in any market are considered luxurious. Luxury homes in major cities typically have to ask for prices of $1 million or more. The bar is set considerably higher in major cities like NYC. There, the prices usually start at over $4 million.
Pricing in a given area is determined by several factors related to the property’s location, amenities, and layout. While it’s true that a home may be advertised as having a few high-end features, that doesn’t necessarily indicate it should be priced as such. When determining the worth before selling a luxury home, it’s essential to take a holistic approach.
But what is smarter at the moment – buying or selling a luxury property? To answer this question, let’s analyze current trends in the luxury real estate market.
The housing shortage doesn’t affect the luxury real estate market as much
The severe shortage of available homes is a contributing factor to the skyrocketing price of real estate. Unfortunately,there aren’t enough sellers to match the buyers’ needs. However, this is only affecting entry-level and mid-range homes. On the other side, the luxury market is holding up relatively well. In fact, the number of luxury house listings went up by 15.8% in the fourth quarter of 2021 compared to the same period in 2020
Because only a select few people can afford to shop in the luxury sector, sellers often have to wait for months before a serious buyer approaches. Buyers are flooding the market due to the unexpected bull market, and sellers are eager to start a bidding battle.
The year 2021 saw a decrease in housing stock across the board due to increased demand, but the luxury market fared the best. The total number of luxury listings declined by only 5.1% in 2021 compared to 2020, whereas the number of listings for costly, mid-priced, and inexpensive houses all fell by double digits.
Luxury properties tend to sell faster
The luxury real estate market has grown even faster than the rest in the past couple of years. This industry has seen exceptional growth relative to the overall housing market. A year ago, it took three times as long to sell a premium home as it does today.
In 2022, the average number of days on the market for a luxury single-family home was only 11! Also, the sales ratio in the high-end real estate market was 66.42% in February of 2022. Considering that everything over 20% is regarded as a sellers’ market, it’s a great time to sell a luxury property.
Despite a narrower pool of potential buyers for luxury properties, sales of such properties increased by 41.6% in 2021, compared to 5.9% for mid-priced homes and 7.0% for inexpensive properties.
The market for luxury real estate is the hottest in the South
Knowing how far your dollar will go is a crucial first step if you’re looking to enter the luxury real estate market. And as was previously said, a home’s location is a significant factor in determining its level of luxury.
If you remove the cost of conveniences like parking and storage, the square footage a buyer may afford in Miami is more than double that in NYC. That’s one of the reasons sales of expensive properties rose, especially in the South of the United States. Between 2020 and 2021, expensive Miami real estate sales increased by 101.1%.
Tax breaks are also a crucial deciding factor. Since neither Florida nor Texas imposes a personal income tax, residents who make either of them their primary residence may enjoy favorable tax treatment. Southern states typically have lower construction costs, making it more affordable to develop high-end residences there. Plus, you can always count on easily finding and hiring reputable movers to help you have a smooth long-distance move and reach your new home stress-free.
Prices of luxury homes are increasing
A rising trend in home prices is creating new benchmarks for lavishness. The average price of luxury property rose 14.7% from 2020 to 2021. While this shift occurred, the median number of days on the market decreased by 38 days yearly. This is by far the largest decrease relative to all housing categories. Also, homes in areas where prices have consistently risen over the years continue to increase in value.
The popularity of owning a second luxury property is growing
Historically, the worry that one wouldn’t use a second property discouraged many potential buyers. Due to a lack of vacation time, the secondary residence would sit empty for most of the year, representing an unnecessary outlay of resources.
However, the situation is different when it comes to buying luxury property nowadays. More people can now buy second homes because they are no longer tied down to a single area for work. Today, mountain and coastal resort towns have become common stops on work-related vacations.
Co-ownership is on the rise, too. This is true not just for the affordable housing market but also for the luxury housing market. Some buyers are interested in a second home that provides all the comforts of a luxury residence. Most people who own second homes only stay there periodically, so buying one might be a financial burden unless you become a co-owner with someone else.
So what’s better nowadays – buying or selling a luxury property?
As you can see, buying or selling a luxury property comes with extensive benefits. However, to decide what option is the best for you and your unique situation, make sure to reach out to luxury real estate experts who’ll be able to help. Best of luck!
Brickell is Miami’s trendy, luxurious business sector, home to big international corporations, banks, and prominent law firms. Aside from its significance as a corporate hub, the Brickell region provides a magnificent neighborhood lifestyle with lots of comfort and security. This tropical area, located between Miami Beach and Downtown Miami, has it all. There are several restaurants, bars, cafés, a large shopping center, and a cinema. However, when you want to buy a luxury condo to live in or as an investment, it is still essential to understand where you are investing your money. A neighborhood’s high rates and good amenities shouldn’t be the only reasons to make such an investment. Therefore, let us see if now is a good time to buy a luxury condo in Brickell and why.
Location, location, location
Why is now and any moment a good moment to invest in a luxury condo in Brickell? Easy, it’s one of the best locations in Miami and even the country! And as you probably know by now, location is the most significant factor in real estate. Moreover, those who invest in a condo in Brickell don’t just buy a place to live. They choose a lifestyle often associated with the water and beaches, with many luxury condos having a beautiful view over the water. At the same time, you have access to everything you might need. Skyscrapers, world-class restaurants, opulent bars, and first-rate public transportation are only a few examples. Not to mention the offices of the country’s top legal firms and the world’s most recognizable financial organizations, which have chosen Brickell as their home.
Miami’s real estate market is thriving, and we don’t see a slowdown in investor interest anytime soon. From its lifestyle to its arts and culture to its mild weather, the metro has risen to become one of the best places in the United States to work, live, and invest in today. Moreover, the luxury residential market will continue to grow as more businesses and people relocate here as part of the business and wealth migration trend. And which is one of the best areas to put your money? Brickell, of course. Brickell has developed from a market to a Miami neighborhood where people wish to live as their primary residence. Furthermore, in terms of renting, tenants’ interest in this region has increased by 30% in the last year. So if you want to buy a luxury condo and rent it, you won’t have problems finding tenants.
Luxury real estate has long been considered one of the most valuable and secure investments. Owning a luxury condo can help boost your game in the real estate market with high resale value and greater awareness of properties, whether you plan to live in it, rent it out, or even flip it. In terms of numbers, house values have climbed by nearly 20% in the last year in Brickell. High competition, low inventory, cheaper interest rates, and larger savings accounts contributed to the increase. However, there is no reason to believe that the same signs will not drive prices upward over the following year. The supply is unlikely to decrease soon, and many people will want to purchase before interest rates rise. That could perhaps lead to another gain in local property values.
As a result, you might want to buy a luxury condo in Brickell now, as it looks like a good time for such an investment. You can then move long-distance to Florida with the help of professional movers and decide what to do with the condo later. If you wish to move and live in the apartment, pros can get you there in no time, along with all your belongings. If you want to rent it, you can just take some of the furniture to the condo and store the rest in a storage unit until you need it.
Easy maintenance and safety
Most luxury condos in Brickell have excellent facilities, fixtures, finishings, and maintenance staff on duty at all times. If you choose the right luxury condo, you might even have the professional staff take care of small things that are time-consuming for you. For instance, they can clean your car, collect the garbage, or even walk your dog when you don’t have the time.
At the same time, when it comes to safety, living in a luxury home leaves little to be desired. One of the best features of a luxury condo is adequate security, which will make you and your family feel as safe as possible. You will have security personnel in the building or available non-stop, fire alarm systems, smoke and CO2 detectors, and CCTV surveillance. Therefore, money can buy you comfort and safety in Brickell right now.
Ask an experienced broker if now is a good time to buy a luxury condo in Brickell.
A highly experienced real estate broker has not only dealt with many clients but has also spent time developing relationships with respected developers and investors. These connections have the potential to provide you with many benefits. For example, your broker may access offers and deals you wouldn’t find on your own. Whether it is a pre-construction or a condo that is not listed, they will know and inform you about it.
In addition, brokers that work with luxury properties have spent years learning about their market. As a result, they can find you the right condo in the right location and at the right price. And last but not least, your broker can tell you when is the right moment to buy, sell, or rent a luxury condo in Brickell. Professional brokers are constantly analyzing the market so they can speculate on the right moment for any move you might want to make.
As you can see, there are enough reasons to invest in a luxury condo in Brickell. The market is hot, the interest is high, and the location is one of the best in Miami. Also, if you buy to rent out, you won’t have a problem finding tenants. And in the end, if you care about safety and ease of maintenance, now is a good time to buy a luxury condo in Brickell.
Selling a luxury home is a challenge on its own, but if you are in a serious time crunch and you’re in a hurry to sell quickly, the stress and difficulty level only increase. Luxury properties tend to have a smaller pool of potential buyersbecause of their unique features. This means that selling your luxury home necessitates a more creative approach to marketing and requires more time and dedication, which you, unfortunately, don’t have. However, it’s not impossible to sell your luxury Key Biscayne property quickly and without damage to its price. In fact, that’s exactly what we’re here to help you with. We’ve consulted Florida’s finest luxury real estate experts and gathered tips that will help you have a smooth and quick sale.
Tips to help you sell your luxury Key Biscayne property quickly
Selling a luxury home is all but a quick and easy task. In order to make the most of your sale, you need to thoroughly prepare yourself as well as your property. However, due to different life circumstances, you might not have the luxury to take your time and create a thorough selling strategy. You’re forced to handle it in a hurry while also trying to figure out the fastest way to move to Florida and decide which movers to hire.
But take a deep breath and relax because, if you follow our tips, you can ensure to have a quick and successful sale of your luxury Key Biscayne property. Now let’s get to work!
#1 Work with a Realtor® that has experience in selling luxury real estate
If you’re selling a luxury home, you’ll want to deal with a Realtor® that has a track record of success in the market. Relying on a team of luxury real estate experts is essential, especially when it comes to pricing and promotion. Most importantly, they’ll know the best ways to help you sell your luxury Key Biscayne property as quickly as possible.
We’re sure that someone from your personal network can help you discover the finest Realtor®. The more successful luxury property sellers in your area you can find, the more likely it is that you will find someone who is a suitable match for your needs. Don’t limit your search to luxury real estate organizations if you don’t know anyone. Check out their past sales and read any reviews you can discover.
#2 Stage your home to impress the widest range of buyers
Staging your property for sale is crucial to getting it sold since it helps potential buyers envision themselves living there. It’s especially true in the luxury property market, where residences are often fully personalized to suit the owners’ likes. As long as a potential buyer can see the property’s true potential and isn’t swamped by your own particular style, you don’t need to demolish your home to its bare bones.
However, as you won’t have time to turn on your creativity and think of the best ways to present your luxury Key Biscayne property to buyers, consider hiring a professional home stager. They will know how to make the most of their time to emphasize your home’s most unique qualities. Although it might be costly, especially due to the time limit, it’s worth not having your home sit on the market for months.
#3 Boost your home’s screen appeal
Creating an attractive online listing is how the process of selling your luxury Key Biscayne property starts. Keep in mind that poor photography doesn’t fly in the normal real estate market nowadays, so it’s certainly not going to fly here either. You’ll need to spend a lot of money on high-quality images if you want to attract serious buyers. Ask your Realtor® for a recommendation. They might know an excellent professional photographer.
Adding videos and a virtual property tour to your listing will help it stand out from the competition. Suppose your house is situated on a large plot of land. In that case, aerial photography may be an excellent way to show prospective buyers everything they need to know before making the trip out to see it in person. When it comes to appealing to overseas buyers who make up a large portion of the luxury-buying market but can’t necessarily see a home in person, having a lot of pictures is critical.
#4 Determine the right asking price
One of the most difficult aspects of selling a high-end property is determining the right price. Pricing it too high means risking losing potential buyers and having your home sit on the market for months. You really don’t have time for that. On the other hand, pricing it too low means risking settling for much less than your home is actually worth.
Therefore, the key lies in finding a balance, and you can only do this with the help of your Key Biscayne Realtor®. They will help you select a price that reflects the genuine value of your home without scaring away a significant number of potential buyers. They will also understand the sense of urgency and take it into account when helping you set the right asking price.
The bottom line
The best way to ensure you sell your luxury Key Biscayne property quickly and successfully is to work with experienced luxury real estate professionals. They will have market insights and knowledge to ensure your luxury property quickly finds a new buyer. So wait no more; reach out to Florida’s luxury real estate pros and start working with them on selling your Key Biscayne home.
As we enter the midpoint of 2022, the rush for luxury residential real estate across the sun-kissed southeastern coastline remains unprecedented. An influx of home buyers coming to Miami from areas with state personal income taxes fueled a whopping rise in property values, and sellers are massively considering what amenities can maximize property value both in the short and long term. If you’re one of them, here are seven ways to add value to your Miami home that stole the spotlight.
#1 Extend your home
If you’re looking to sell your Miami home for the best price, you should consider extending it. We all want extra space. Bringing a whole new area that you can enjoy, be it a spare bedroom, en-suite bathroom, a home office (these are a huge trend), storage, or living space, can add up to 23 percent to your property’s value.
But if you are forking out for a home extension, you’ve got to make sure it’s worth it. So, before you get started with the work, compare the building costs and the value gain. Also, don’t forget to consider the complexity of the build.
Another thing you can consider is Additional Dwelling Units. ADUs are a home trend that evolved during the pandemic and one that looms large this year. They’re typically small, self-contained, and separate from the house, and they’re incredibly useful when one needs a place to work away from all the noise or somewhere visiting family members, and friends can stay. What’s more, ADUs may also serve as a source of income for homeowners.
#2 Add more storage
Talking about extra space, additional storage space is an upgrade that will probably never fall out of favor. This doesn’t have to be a completely separate structure, such as ADUs (although it can be!). It can be any type of storage, from a beautifully designed walk-in closet to a pantry closet in an apartment. Whatever you decide it should be, it will add value to your Miami home.
#3 Add style in key rooms
Real estate experts in Miami consistently swear by a home’s key rooms, saying that updated kitchens and bathrooms help sell houses faster and improve resale value. However, the importance of choosing quality materials for these areas is not something you’d want to underestimate. This mainly goes for the kitchen cabinetry, given that it’s usually subject to a great deal of wear and tear. But, with the right design and suitable materials, renovating a kitchen or bath space will always, without question, boost your home value.
Keep in mind, however, that these are large projects. Plus, kitchens and bathrooms are the most utilized rooms in a home, and you need them to function. So, you might want to avoid starting with the work before you settle into your new abode. If you’re moving locally, all the easier. You can easily find expert help in the area and relocate by the time renovations begin.
#4 Create a dedicated home office
Yesterday – a business challenge, today – the norm: the work-from-home population continues to grow day by day, and so does the demand for home offices. If you’re selling a house, creating one or dedicating existing space to functional a home office is an excellent investment and a fantastic feature to highlight in your listing. These are real environments that foster productivity but are also stylish, thoughtfully designed, and comfortable. Your new home office can also have an en-suite bath or a bar – whatever makes it shine is worth mentioning to prospective home buyers. It will, without a doubt, add value to your Miami home.
#4 Enhance outdoor living
Investing in outdoor living provides a fantastic ROI for most homeowners, making it a perfect home improvement project. Of course, Miami offers plenty of opportunities for being outdoors. However, simply building a new deck or patio or revamping the balcony will make your home more desirable to buyers looking for a new home. For those who are looking to really stand out, some of the features that buyers truly love to see in an outdoor space include:
- A fire pit or outdoor fireplace;
- The pool and hot tub combo;
- A comfy lounge area;
- An outdoor kitchen;
#5 Give your home’s exterior a once-over
Anything that enhances your home’s curb appeal will reap the rewards when it comes to saleability. Buyers always pay attention to the exterior – it helps them decide whether they like a property before even stepping inside.
For starters, buyers love to see attractive landscaping; it implies that you maintain and take care of the property. You don’t have to break the bank, either. Basic yard care, such as mowing the grass, fertilizing the lawn, and controlling the weeds, will do the trick.
You can make your property stand out by:
- Updating your mailbox and house numbers;
- Touching up or re-doing your exterior paint;
- Investing in brand-new garage doors;
- Adding a parking spot;
You should consider upgrades that lower the maintenance hassles. If your home is ten years old or more, some big-ticket items home buyers would have to fix or replace in the next few years might scare them off and make them look elsewhere. So, make sure that the roof doesn’t leak, gutters and downspouts are functioning, the basement is dry, floors are solid, and walls are in good repair. You should also check your HVAC and plumbing systems and consider installing new siding.
#6 Make your home more efficient
If you decide to tackle energy-efficient home improvements, it will be worth your while. Buyers are generally willing to pay over the asking price for a home if they can cut down on annual utility costs and other bills long-term. Even more importantly, they’re happy to reside in a home that helps reduce their overall impact on the environment.
For instance, if it is clear that your roof has taken the brunt of seasonal weather changes, you might consider replacing it. Leaks or missing, cracking, or curled shingles aren’t exactly a selling point. And, while you’re at it, consider using materials such as sheet metal or clay rather than asphalt. These materials help to reflect heat instead of absorbing it, thus naturally keeping the entire house cooler. If there’s no need to replace the roof entirely, try adding a cool roof coating that reflects heat.
Other ideas that add value to your Miami property and make it energy efficient include:
- Adding an extra layer of insulation;
- Upgrading your appliances;
- Replacing or sealing doors and windows;
- Installing energy-efficient lighting;
#7 Consider a utility room
Utility rooms might be where you’d do tedious house chores and store practical equipment, but the reality is that any home would be lucky to have one. Plus, if you design and outfit your laundry room well, it can be a complete game-changer. These are important spaces, the engine rooms of a home, we may call them, and they will add value to your Miami home. Consider space-saving designs and smart storage solutions, and place it in a convenient location, and it will make a significant impact on the buyers.
Vantage Luxury Real Estate today announced its partnership with Side, the only real estate technology company that exclusively partners with high-performing agents, teams, and independent brokerages to transform them into market-leading boutique brands and businesses.
KEY BISCAYNE, FLA. (PRWEB) MAY 13, 2021
Vantage Luxury Real Estate today announced its partnership with Side, the only real estate technology company that exclusively partners with high-performing agents, teams, and independent brokerages to transform them into market-leading boutique brands and businesses. The alliance will ensure that Vantage Luxury Real Estate, which offers highly specialized luxury market expertise, is powered by the industry’s most advanced platform.
Vantage Luxury Real Estate was founded by Lucas Boccheciampe, who has made the dream of upscale living a reality for hundreds of clients in the Miami area since 2013. His diverse background in industrial engineering, construction management, and financial services, combined with his tech-savvy approach and deep understanding of the market, has made him South Florida’s go-to agent for high-end properties. With Vantage Luxury Real Estate, Boccheciampe has assembled an elite, dedicated team whose local expertise, unmatched customer service, and true passion for the island lifestyle ensure buyers and sellers achieve their visions.
Partnering with Side will ensure Vantage Luxury Real Estate remains at the cutting edge of the evolving real estate market while allowing its agents to continue delivering premium services to their clients. Vantage Luxury Real Estate agents are fully supported by a one-of-a-kind premium brokerage platform, which provides transaction management, property marketing, lead generation, business growth opportunities, vendor management, and infrastructure solutions.
“I chose to partner with Side because it supports the creation of my own unique brand,” said Boccheciampe. “By offering my team access to state-of-the-art marketing, technology, administrative, and legal services, Side allows me to prioritize my focus on my clients, providing them the best possible service and real estate experiences.”
Side is led by experienced industry professionals and world-class engineers who develop technology designed to improve agent productivity and enhance the client experience. Based on its belief that homeownership is a fundamental human right, Side is on a mission to improve the public good by providing top-performing real estate agents, teams, and indie brokerages with the best system, support, service, experience, and results.
About Vantage Luxury Real Estate
Vantage Luxury Real Estate is dedicated to helping high-net-worth buyers and sellers realize their real estate goals. Inspired by their passion for South Florida living, the experienced Vantage Luxury Real Estate team provides clients with unparalleled advice and local market expertise while ensuring a fun and exciting process. Vantage Luxury Real Estate serves South Florida specializing in Key Biscayne, Coconut Grove, Miami Beach, and Brickell. To learn more, visit http://www.vantageluxuryre.com.
Side transforms high-performing agents, teams, and independent brokerages into successful businesses and boutique brands that are 100% agent-owned. Side exclusively partners with the best agents, empowering them with proprietary technology and a premier support team so they can be more productive, grow their business, and focus on serving their clients. Side is headquartered in San Francisco. For more information, visit http://www.sideinc.com.