Many people assume the more expensive the home, the more difficult it’ll be to sell. However, this isn’t really the case. In fact, the multi-million dollar homes are often the easiest ones to work with, and this is why. Feel free to add me on Snapchat/Instagram: GPStephan
Now I’m going to be making some broad generalizations and obviously there are going to be many exceptions to this. But this has been my experience time and time again in my market of Real Estate in Los Angeles. It won’t always hold true for every buyer and every market is different, so keep this in mind.
Reason 1: From my experience, these buyers are extremely specific about what they want. They know exactly where they want to be, what they can spend, what style they want, and what finishes they like. It’s usually not about showing them a hundred houses until they figure out what they like, but instead finding them the one specific property which matches their expectations.
Reason 2: I’ve also noticed that the multi-million-dollar clients are extremely decisive. There is very little hesitation when they’re willing to make a move. Because they often know what they want, when they see it, they go for it. This saves us a lot of time when the right deal comes up, we’re ready to move on it. I can’t tell you how many deals we’ve lost because the client wanted to think about it and by the time they were ready to make an offer, we were competing with multiple other people who also wanted it. Being ready to strike quickly is what wins.
Reason 3: The multi-million dollar buyers are also usually very well educated in business, which usually translates into them knowing and understanding the markets of real estate. The buyers usually come in knowing about economics, the markets in general, the area in general, and are very well prepared. This makes it much easier for me when your buyer understands what they’re doing and can prepare for it accordingly.
Reason 4: When a repair comes up, it’s rarely detrimental to the deal. If there’s a $100,000 repair in a $300,000 house, more than likely the deal is dead. If a $100,000 repair comes up on a $3,000,000 house, while it’s never a pleasant experience, it’s something where both parties can afford to make it work.
Reason 5: Financing is generally easier. The people that buy $2,000,000+ properties rarely ever have trouble financing. I don’t think I’ve ever had a deal fall out of escrow, ever, because the buyer couldn’t qualify for their loan. In this price range, most people are overqualified for the homes they purchase. The other benefit in this price range is that I end up doing a ton of cash deals. This might be very market specific to LA, but it’s not unheard of to have a cash offer in the $2,000,000 or higher price range. This makes the deal so much easier and faster. Buyers know they have a competitive edge being cash, and they take advantage of this. Plus you go into it without having a loan and appraisal contingency.
So to me, selling a $3,000,000 house is significantly easier than a $300,000 house. It’s also a significantly larger commission, which would take 10x smaller deals to equal 1x larger one, hence it’s generally a better use of time between comparing two deals, all other things being equal.
Thanks again for watching and i hope this video helps!
For business inquiries, you can reach me at GrahamStephanBusiness@gmail.com
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq