If you’re preparing to sell your luxury home, you likely have pricing on your mind. The truth is that when it comes to high-end real estate, settling on the ideal number can be a challenge.
On the one hand, buyers at this price point are often comfortable paying whatever it takes to obtain their dream home. On the other, being able to justify the number you choose is crucial—if you can’t, it could turn qualified home hunters off.
Here’s what you should know when you’re working with an agent to price your luxury property…
Understanding Your Buyer
The buyer pool for luxury homes tends to be smaller. For this reason, it’s important to make a good impression on every purchaser who’s interested in your property (and qualified to buy it). The first step is setting the right list price.
It starts with an understanding of your most likely buyer. If it’s an affluent family, a beautifully landscaped yard and proximity to prestigious schools could be factors in your home’s perceived value. If it’s a young professional, they may be willing to pay more for lavish condo amenities.
An agent with luxury expertise can help you determine who your most likely buyer is—and factor in the right things when helping you set a price.
From lot size to general condition to the number of bed and bathrooms, there are many factors that go into a home’s worth. Typically, it starts with a comparative market analysis (CMA).
If an agent creates one of these documents for you, they’ll pull recent sold prices for local homes very similar to yours. Unfortunately, finding comparable properties in the luxury sector can be a challenge—since there are fewer of them, and they tend to be very unique.
The good news is, there are ways to overcome this obstacle. As just one example, if there aren’t enough comparable local homes, your agent could look to other markets—and account for regional economic differences.
Unique Property Features
Luxury homes are often renovated to their owners’ taste. Given the budgets involved, the results can be highly unique. That can lead to some unusual pricing challenges.
Upscale features can range from lavish (think indoor lap pools and massive wine cellars) to one of a kind (like a custom-built home bar or decadent statue). Either way, their rarity can make it difficult to determine their worth—and how desirable they’ll be to your most likely buyer.
Based on their knowledge of luxury buyer psychology, the right real estate professional will assess how unique features should impact your price.
Getting the Price Right
It’s true that luxury buyers typically have the means to pay much higher prices than those purchasing more modest homes. Having said that, as a seller, being able to justify the number you set is crucial.
Of course, there’s more to a successful luxury sale than settling on the right sum. By working with a professional who has high-end expertise, you can help ensure a smooth transaction—and a great result!
Ready to sell your luxury property? From pricing to staging to closing, we can help ensure your sale is smooth—get in touch to learn how!