You take pride in your trophy estate, and when it comes time to sell your broker should utilize specific strategies.
In Part 1 of this series, I highlighted your position and desired outcome, your estate’s position in the marketplace and your broker.
In Part 2, we discussed the added-value review, identity, marketing collateral, collaboration, presentation and social media.
I will be wrapping up our discussion with the multiple listing service, websites, privacy, negotiations and escrow.
I sold a property that unfortunately I cannot tell you about. The seller was an executive with a well-known company and did not want signs, marketing or advertising whatsoever before or after the sale. Selling under these circumstances takes a different strategy.
Some sellers may choose to keep the sale of their home private because they are either celebrities, politicians or executives. If this is the case then most likely we restrict the use of our publicly accessible advertising and focus on collaboration and our client database.
For most clients the multiple listing service with listing syndication is one way to expose the property. Brokers can essentially have the listing migrate to many other sites as well as other agents’ and brokers’ websites.
However, the listing broker’s website or a customized website specific to the property has significant value because the broker is always in control of this media.
The estate needs to be priced appropriately so you reach an adequate number of buyers. Priced too high and you limit interest — too low and you receive many undervalued offers.
Think of it as a pyramid — the height of the pyramid representing the price and the breadth the number of potential buyers. As the price increases your buyer pool decreases. You want to be at a price that will result in a handful of qualified buyers.
Qualifying a buyer should come before an offer is made, but it sometimes occurs after. It has happened to me. Once, another agent brought a buyer that unfortunately could not produce the documentation in time showing he had the $6.5 million in a bank account and the deal died.
It is important the brokers involved perform their due diligence to determine if a buyer has the liquid assets to complete the purchase as well as the income to qualify for financing, if applicable.
This all occurs during the review and negotiation process. A collaborative team approach should be taken while also looking at tactical options of the deal. A good broker knows how to negotiate.
As escrow is open and the identity of buyers and sellers becomes known, in some cases parties involved wish this information be kept private. In some instances a broker may need to facilitate the process with secured and encrypted communications for high-profile clientele.
Escrow periods for estates sometimes take longer than an average home because of all the potential pieces to a transaction.
With the right broker orchestrating the process, keeping communication open and frequent, and collaborating with other brokers, inspectors, lenders, government staff, etc., the process should run smoothly.