The Art of Pricing a Luxury Home for Sale
Updated: Mar 28, 2018
Pricing a luxury home is more art than science. Here’s everything you need to know to get top dollar in today's competitive real estate market.
When it comes to luxury homes, no two are alike. That’s what makes pricing a luxury home more art than science. You can’t simply compare square footage, lot size, number of bedrooms, and general condition of the home.
What Is a Luxury Home?
Most luxury homes were custom built in a coveted location and often have unique features that reflect the aesthetic of the original home owner. In the luxury home category, you’ll find a wide array of eye popping amenities. Imagine acreage, stunning views, swimming pools, water features, waterfront, boat houses, tennis courts, professionally landscaped grounds, gated entrances, chef’s kitchens, spa-like bathrooms, outdoor entertaining areas, outdoor fireplaces, outdoor kitchens, custom flooring, floor-to-ceiling window walls, and other luxuries that make your heart go pitter-patter.
There’s nothing Cookie-Cutter about a Luxury Home. In fact, DISTINCTION is the Hallmark of a Luxury Home!
Arguments over what factors qualify a home for luxury status abound, but this is North East Florida, not Beverly Hills, and we like to keep things simple. So although not every home with a price tag of $1,000,000 or more is actually a luxury home, that’s the line we’re going to draw in the sand. Along the First Coast, it usually requires at least $1,000,000 to create a truly distinctive and extraordinary home in a setting to match.
But wait! Don’t jump to another blog post just because you have a home you want to sell in a lower price category. Everything we say here about pricing a luxury home for sale applies to lower priced homes as well.
We developed a proven strategy for getting your home sold fast for top dollar, irrespective of the properties classification.
Every luxury home in the North East Florida market has a different combination of luxury amenities. It’s like comparing a Cheetah to a Peregrine Falcon. They are the two fastest animals in the world, and yet the differences are enormous. Which one is worth more and how much more?
Pricing a Luxury Home for Sale
We specialize in these unique properties. We have a finely tuned process for evaluating a home’s worth in today’s competitive marketplace. And we work with each of our luxury home sellers to price their home to maximum advantage and ensure that it attracts maximum attention right out of the gate from potential luxury home buyers.
Market research is key. We spend umpteen hours each week comparing luxury homes for sale in North East Florida neighborhoods. We focus on neighborhood first, because pricing is determined by competition within a rather small geographical area. You can’t for instance, compare luxury homes in two different areas. The exact same luxury home will sell for a different price in two different areas.
What makes real estate such a difficult asset to price is that price is ALWAYS determined by local competition at a given moment in time, what people are willing (and able) to pay at a given moment in time, and what a bank is willing to loan at a given moment in time.
Notice the emphasis on time. The value of a particular home is not determined solely by its quantifiable, measurable features. Its value is determined by what buyers are willing to pay for the home TODAY. And that amount may vary from what they are willing to pay for the same home TOMORROW (in a few months, or next year).
The value of a home today has nothing to do with what the current owner of the home paid for it or what the current owner needs to net to move on to the next home. That fact can be a hard pill to swallow.
But remember when I said that pricing a luxury home is more art than science? This is where we can help you most. Because we know a secret that few other real estate agents really understand.
Are you ready?
Michael Turwitt has long represented buyers and sellers in the purchase of fine properties and high value assets. Specialized in extraordinary quality homes and luxury property, Michael Turwitt enables clients to successfully navigate the complex North East Florida – First Coast Real Estate Market. For more information, visit www.turwitt.com