Get the Highest Price for your Luxury Home
Local authors celebrate two awards with FREE copy of their book to the first 100 Greenwich homeowners
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Greenwich residents Linda and David Michonski have received two awards for their book on how to market and sell a luxury home for the highest price.
The authors received a Pinnacle Book Achievement Award and five stars (out of five) from Clarion Independent Forward Reviews.
To celebrate, the local authors are giving away 100 books (not including $9.95 shipping, postage, and handling) to the first 100 Greenwich residents who request a copy by going to GetYourHighestPrice.com. Purchase a book and enter the promo code “MARKET PRO” to get a 100% credit. (You will still be charged $9.95 for shipping and handling). Your book will be shipped within 7 days. This offer is only for non-agent homeowners. Here are some tips from the book.
Tips for Selling your Luxury Home from Get Your Highest Price
Tip # 1: Know how small the market is: Possibly due to their being so much luxury real estate in Greenwich, homeowners often think the luxury market is much larger and more liquid than it is. In fact, the market for million dollar homes is tiny, comprised of around 40,000 sales a year out of almost 5,000,000 nationally (based on “luxury” defined as “$1M and up.” Based upon the Michonski’s new, more restrictive definition of “luxury” the number of sales is only about 4000 to 6000 a year).
Because the luxury market is so small and illiquid, the Michonski’s argue that it requires different strategies and tactics than just putting a property into the MLS.
Tip # 2: Know who you are dealing with: the luxury market is made up of the smartest people in the world: entrepreneurs, CEO’s and CFO’s, celebrities, movie stars, hedge funders, and more. None are going to be fooled by gimmicks. The Michonski’s point out that in this market “buyers are just as smart as sellers” and the inhabitants of this market do not always listen to agents or to hype. But they do listen and watch what others like them are saying and doing.
Tip # 3: Lack of Urgency to Act: the luxury market is characterized by sellers who do not have to sell and buyers who do not have to buy. For this reason a lack of urgency to act is this market’s hallmark with properties often on the market for 24-36 months.
Tip # 4: Pricing Incomparable Properties: pricing luxury properties is particularly difficult using the “comparable sales” approach. As Linda says, “the problem with comparable sales is no luxury homeowner views their property as comparable to anyone else’s. In fact, most luxury homeowners built or bought their property to be incomparable, unique, to stand out, and not to be like anyone else.” Therefore, she argues, using a comparable sale approach for luxury properties is far less effective and often does not work at all. Thus, the luxury market requires another step which the Michonski’s provide in the book. (See Tip # 7 below)
Tips # 5: Agents must create markets: the luxury market is highly illiquid which means it is the agents’ job to create greater liquidity for a luxury property. That means knowing how to create a market, as opposed to just putting a property on the market.
To break the deadlock and meet head on the challenges of having the smartest, most successful clients in the world, and overcome the lack of urgency to act as well as the incomparableness of the properties being sold, the Michonski’s recommend a book full of additional strategies and techniques.
Here are few more.
Tip # 6: Know the Goal: As a seller, the many actions your agent takes to market your home (listing in MLS and beyond, broker open houses, public open houses, PR, advertising, social media, etc.) all should have one goal: to attract multiple buyers bidding simultaneously. Only this overcomes the lack of urgency to act that characterizes the market. Only this brings super-smart buyers up against other super-smart buyers and unleashes the human desire to want what someone else wants.
The Michonski’s warn that agents must forever forget finding “one buyer in a million” because that won’t do anything. “If you find one buyer,” David asks, “why would they bid up?’” Rather, they urge that agents must find 2 or more buyers to create a true market for a property and thereby raise the comfort level of buyers to act.
Tip # 7: How to Price: to price an incomparable property the Michonski’s insert a first step before looking at the competition or past sales. They create a “Core Value Pricing” methodology that demonstrates the highest possible value and then create a discount to it.
Says Linda, “all smart buyers want value demonstrated and they want to get a perceived bargain to it. So we have devised a way to do just that.” As part of their “Homeowner’s Support Package” the Michonski’s offer the online calculator so homeowners can easily and quickly determine their Core Value (available at GetYourHighestPrice.com )
Tip # 8: Marketing Is the Key to Price: The Michonski’s begin their book with a bold assertion: “if you follow our advice, for every million dollars of value in your property, you should get about $50,000 extra (and possibly much more).” The book is all about how to get that value and throughout is peppered with examples of how their techniques have gotten sellers such extra value, concluding with two stories that illustrate all the lessons of the book.
One of the stories is that of the sale David orchestrated of Clarendon Court in Newport, Rhode Island on behalf of the famous von Bulow family which resulted in a sale 150% higher than any prior sale in Newport. Another is about a property that had been on the market for 8 years without an offer, but which David sold for full price, all cash with 14 offers.
The book includes chapters on “How to hire an agent,” the “Business Essentials of a Luxury Listing Contract,” and “For Sale by Owner” as well as a powerful chapter on “How marketing gets the highest price.”
Linda and David Michonski have been in the luxury real estate business for 35 years starting on Beacon Hill in Boston. Linda currently works for Coldwell Banker Previews International here in Greenwich and recently completed a $4.27M sale at 26 North with 12 offers, 162 Thunder Hill Dr. in Stamford with 8 offers and $4.2M sale on Pecksland Road with 4 offers, always utilizing the principles and strategies found in the book, resulting in a better than 93% track record of selling her own listings.
David has been involved in some of the largest and most celebrated luxury real estate sales in the world, including listing and selling Clarendon Court in Newport, Rhode Island featured in the movie Reversal of Fortune with Jeremy Irons and Glenn Close, the story of Claus and Sunny von Bulow; Sunninghill Farm, home to the owners of Triple-crown winner Seattle Slew; and “Villa Beata,” the Italian home of Seward and Basia Johnson (recently deceased).
David was named one of the Top Ten “Newsmakers of the Year” by Realsure Trends Report, one of the “100 Most Important People in Real Estate” by Inman News and Today’s Realtor Magazine named him one of the Top Ten Realtors in the United States. He has appeared on CNBC’s “High Net Worth” with Tyler Mathieson, Consuelo Mack’s “Money Talk,” “Opening Bell,” “Squawk Box,” “Closing Bell,” and on MSNBC, NBC’s “Today Show” with Matt Lauer and Jim Cramer, CNN, PBS and in hundreds of publications worldwide.