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Profiting when selling your Luxury Home MN?

Custom Luxury Home Builder MN

How Much Should you Profit when Selling your Luxury home in Minnesota?

In the dream world every luxury home seller in Minnesota would profit like a boss and every luxury buyer value would sky rocket like the latest tech stock as soon as they close on their new home.

Let’s get to the reality of this luxury home profits and I am not talking about reality TV profits like Million dollar listings.

When did you buy the Luxury Home?

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” –Warren Buffet

If you had bought your luxury home in Minnesota between 2005 to 2007 before the housing bubble burst  you may have paid double or more than a home that sold as a luxury foreclosure in the area between 2009 and 2010. The Market in 2016 is at all time highs, but you will still have to compete with someone that paid less for their luxury home.

What if you bought home in the 1990’s or earlier.  This is a tougher question to answer since it has to be based on an individual luxury home basis.  I know, I know that is not the answer you want to hear, but homes built from 2002 and newer have a lot of the same amenities that are being built today and buyers can purchase a Luxury Home and do cosmetic changes and be happy versus any major remodeling from a the 1990’s era.

If you have a historic luxury home (1880 to 1940) in a historic neighborhood than it goes back to when you bought the home and how much updating you have done.

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What have you done to the Luxury Home?

If you have a 1970’s style of luxury home that is not a contemporary style and is in area like Edina MN, than you would have to look at what people are paying for homes and what they are doing with them.  Are they remodeling them or are they tearing them down and is your luxury home worth more for the land that it sits on?

1970’s style luxury homes for sale:

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New Construction Luxury homes for sale same area:

[idx-listings city=”Edina” minprice=”800000″ minyear=”2015″ statuses=”1″ propertytypes=”773″ orderby=”DateAdded” orderdir=”DESC” count=”3″ showlargerphotos=”true”]

Location, Location, remodeled?  Say you have an amazing piece of land like Lake Front in Minnetonka or a bluff view in Afton and your home has been updated with all the latest luxury tech and open floor plan; than what is it worth?  The right Luxury home location cannot be beat.  People will pay more for a good Luxury home lot or tear down than they will pay for a luxury home and land in a bad location.

On the other had if the home has not been updated and there are several for sale on the same lake or the same neighborhood your Luxury home will not fare as well with the luxury home buyers that are looking for an updated home.  Then your luxury home will looked at by buyers that will make lower offers to so that they can remodel the home for less than the remodel homes are selling for around you.

If you have remodeled, expanded or improved your luxury home in Minnesota should you get that money back?

As much as we all want to see a return on our investment, the Luxury home buyers could care less of what we paid to renovate if the luxury home is overpriced.  The Twin Cities Luxury Home Market is still growing unlike New York, Los Angles and Miami.  There are several of areas in the Twin Cities that have land to build Luxury homes on and are close to the city. If you want to be near Minneapolis you can still find decent properties to tear down in Lake of the Isles and Edina.

The buyers have far more access to property sales than they did in the past and have a lot more time to research value of Luxury Homes.

When you look at what you have done to improve your Luxury Home you have to factor in the enjoyment that you received in living and using the Luxury home.  I have seen it where Luxury home sellers have done the entire backyard with Luxury pool, stamped concrete, Pool house with stone fireplace but the cost of adding this has pushed the home above the neighborhood.

The problem with this, is that the home is now over-improved compared to the rest of the sold Luxury homes in the area.  Will their home sell faster than others if they price it near values? Yes!

Will they get their investment back, depends on how much they paid to do it, depends on how long it has been since they did the renovation and more questions that have to be answered when looking to list the home.  Did they get value back in using the Luxury home amenities added, they tell me yes every time.

What time of year do Luxury Home buyers buy in MN?

In the video above about when to sell your luxury home, I talk about the how the majority of Luxury home sales occur in May through August.  Understanding when buyers are looking is the first part.  Then knowing what is currently going on the luxury market (The pulse of the Market) is the second step.  Home buyers don’t just look in one area of town. They have more freedom these days with their commute and can be looking at homes in Maple Grove one moment and Switch to Dellwood.  You need to be updated about current Luxury Home Sales that are occurring throughout the Twin Cities since those are the buyer that are passing up on your home.

 

What Does it all Mean When selling your Luxury Home in Minnesota?

To sum it all up, when selling a Luxury Home in Minnesota the price you agree to offer your home is just a test to see what the market will bear.  Good marketing, years of experience in your Realtor and pricing the home effectively and changing price efficiently will get your luxury home sold.  The profit is depending on how you look at life.