What luxury homeowners should expect when they sell their home

Key Insights

• Today, luxury homes in Minnesota and western Wisconsin have a list price of $750,000 or above.
• When selling a home in this price range, it’s critical to work with a specialist who understands the local luxury market.
• Realtors who specialize in selling luxury homes can help with everything from pricing, to private sales, to pre-sale updates that will help draw in more buyer interest.

Across Minnesota and western Wisconsin, homes priced above $750,000 are considered to be luxury homes. From the pricing to marketing to negotiating and beyond, selling a luxury home can be different from selling a property in the traditional marketplace.

By working with a REALTOR® who specializes in this unique, upper-bracket market, sellers can leverage the most strategic insights and tactics as they move toward the closing table. Here are insights that every luxury home seller should know before listing their home.

How long does it take to sell a high-end home?

Historically, luxury homes have taken longer to sell than homes listed for under $750,000. This makes sense — as you move into higher price ranges, the pool of eligible buyers tends to get smaller. In our market, it’s possible for a $5 million home to be listed in Minnetonka, at a time when there are a limited number of buyers searching across the entire state in that price range.

However, the current inventory shortage in our market includes luxury properties, and homes in the luxury range are selling faster now than they have in years’ past. For reference:

• In Sept. 2022, homes priced at $750,000 and above were selling in a median time of 14 days on market.
• In Sept. 2018, luxury homes were selling in a median 86 days on market.
• In April 2012 (the high point for the last decade), these homes were taking a median 210 days to sell.

Perhaps more importantly, homes priced below $750,000 are currently taking just 13 days to sell, meaning that luxury homes are selling at nearly the same pace as non-luxury homes. This is pretty unprecedented, and it remains to be seen if both market segments will continue selling at such a rapid pace in coming months.

*Based on information from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC. for the 16-County Twin Cities metro area for September 2022.

Will my luxury home sell fast and in multiple offers, too?

Even in a market where homes of all prices are selling quickly, there is never a guarantee that your home will be the subject of a bidding war. Rather than going in with this as a goal, it’s important to speak with your REALTOR® about the various potential outcomes, and to know in advance what price or conditions you are willing to accept — and how you will counter if you are fortunate enough to receive multiple offers.

Are there agents who specialize in luxury properties?

Absolutely. At Edina Realty, we have hundreds of licensed agents who specialize in Exceptional Properties, or homes that are priced above $750,000.

Luxury agents have a keen understanding of current trends in exceptional properties, and will be able to make smart recommendations for how to update older or outdated homes before they’re listed on the market.

Top trends that our luxury specialists have identified include:

• Elevated storage: Rather than simply offering a walk-in closet, owner’s suites can now include space for the homeowner to prepare for their day. Some are adding espresso machines, furniture for lounging and extra features for their furry friends.
• Home gyms: Treadmills are no longer relegated to an extra nook in the basement. Today’s high-end homeowners are placing their Pelotons in windowed rooms where they can enjoy a gorgeous view. Bonus points if you add a sauna and cold soaking tub to your space.
• C-suite at home: High-end homebuyers who will work from home are designing spaces that suit their needs. From a small kitchenette to prepare snacks or drinks between meetings, to fireplaces and reading nooks where they can read executive briefs, the one-of-a-kind home office is becoming more and more common.

What other services can a luxury specialist offer?

In the last decade, time has become a much more precious asset for the luxury buyer and seller, and our Exceptional Properties agents are able to design their services in a way that minimally disrupts our high-end clients.

One way to achieve this is by pursuing a private sale. Edina Realty has a proprietary networking platform that allows agents to share private properties that are not yet listed on the market. Because Edina Realty has more than 2,000 local agents (and hundreds who specialize in the luxury homes), these properties can be shared privately with buyers who are seeking local properties in varying price ranges. Private showings can be arranged, and offers can be placed even before the home is listed on the MLS.

Of course, for sellers who wish to take advantage of the traditional real estate market, Exceptional Properties agents have a keen understanding of the services and marketing techniques that will help sell the home, including:

• Stunning professional photos
• Virtual tours, videos or drone footage
• Floor plans
• Staging services
• A network of qualified buyers
• And more

What else should I know when selling my luxury home?

In short, while it’s important to understand luxury trends when selling your home, it’s also critical not to over-generalize this unique market. To sell your home at a competitive rate in the shortest amount of time possible, you should work with a Realtor who is familiar with the recent sales activity of other high-end homes in your area.

At Edina Realty, we have more than 2,000 local specialists and we would be happy to put you in touch with the agent who best suits your needs; around 600 of those agents even specialize in marketing luxury homes as members of our Exceptional Properties division.

Call, email or chat today to get connected with a Realtor who will help you sell your luxury home on your terms.