How To Properly Price A Luxury Home For Sale
Pricing a non-luxury home for sale is a bit easier than pricing luxury homes since with non-luxury homes there is plenty of recent sales data from comparable homes being sold. Luxury homes on the other hand take longer to sell due to the smaller pool of luxury home buyers and as a result the sales data for comparable home sales may not be as current. Generally there are also fewer luxury home sales overall which also does not help when it comes time to set a price.
Looking A Comparable Luxury Home Sales
One of the issues with looking at comparable sales for luxury homes is that due to the unique nature of luxury homes the features and amenities they have can vary greatly from one home to another. Whereas one homeowner installed a large luxurious pool since they love to swim another luxury homeowner may have a grand home theater setup in their home due to their love of watching movies. As a result it can be harder to compare luxury home sales in order to determine a price just based on the extra amenities present.
A majority of luxury homes do have common features like bedrooms, bathrooms and kitchens which serves as a good area to start a comparison of luxury home sales in order to determine pricing. It should be noted that there are still variables that can affect how those common features compare as the sizes and quantities of all the rooms also play into determining a pricing. Older luxury homes may have more bedrooms without attached bathrooms but more of the modern luxury house building styles have a bathroom attached to every bedroom where the build size of the home allows it. Upscale luxury condos/homes in a major downtown area are not likely to have a bathroom within every bedroom due to space constraints.
The finishes used within the kitchens, bathrooms and bedrooms also factor into the pricing of a home. A luxury home with all the premium modern finishes will command a higher price than a luxury home that has the standard finishes. Examples such as bamboo flooring versus carpet flooring, granite or quartz versus cultured marble surfaces make a difference in the way a home should be priced.
As a result pricing a luxury home becomes more of an experience based activity that when done a number of times those who know how to do it understand the nuances and differences in a home to come up with the right price. Even with accurate knowledge of luxury home pricing home sellers need to pay attention to homebuyer feedback. If homebuyer feedback indicates that pricing on the home is high or if after 30 days or more no offers had been made or showings have not been occuring the luxury home seller should revisit the price of the home they are listing for.
Pricing a luxury home for sale is an experienced based activity that luxury home sellers would be better off working with a luxury home Realtor in order to establish pricing. Proper pricing of a luxury home can set the stage for success where the proper marketing will bring in the right buyers. On the other hand incorrectly pricing a luxury home on the higher side will result in wasted time and money on all the other market that has been implemented.
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