One of the most important decisions, as well as one of the most difficult when selling your luxury home is deciding how to price it. If we price it too low, you may lose out on profit potential; but if we price it too high it will languish on the market, decreasing the likelihood of fetching a good price the longer it sits. Of course, pricing is something we work on together. Choosing the right price can be difficult when selling any home but pricing a luxury home comes with a whole additional layer of complexity. Here’s how I like to approach the pricing of a luxury property:
Find the right comparables
Pricing in the luxury market can be challenging because there are often few (apples-to-apples) comparable sales for a variety of reasons. Factors that I look at when researching comparables include but are not limited to:
Customization
Location
Time of year
Other homes on the market
Look honestly at your home
In looking at comparable sales and properties, I also consider the strengths and weaknesses of your specific home compared to others that have recently sold as well as those currently on the market. We will also consider any upgrades or updates that may need to be made to bring your home in line with buyer expectations and other homes in the target price range.
Your goals
We also want to consider your goals for the sale. Do you need to sell the home quickly; or do you have time to wait for the right buyer at the right price? In the luxury market, the pool of buyers gets smaller the higher the price tag goes. Additionally, the stats – and my own experience – show that the first 2-3 weeks is the most important period.
Testing the price
I like to consider the first 2 to 3 weeks a great test of the pricing. Some of the questions I like to discuss with sellers are: Are we getting the interest we thought we would? Have other homes in the area or price range sold or come onto the market? Can we do better when it comes to pricing? How does this sale at this price compare to recent sales? If the answers suggest we need to make a change with pricing, now is the time to do it. Let’s pull the trigger and get the word out!
Remember, pricing correctly will make it much more likely that we get some good interest and even an offer in those first few weeks on the market. This will give you as the seller more leverage than if the home sits on the market for an extended period. One of the worst fates for your wonderful luxury home is to sit on the market long enough that real estate brokers and buyers begin to suspect something is wrong with the house. So, let’s get the price done right from the start!
If you would like help listing and selling your luxury home in Atlanta, please let me know. Put my experience as a Realtor®, Real Estate Attorney, and 3rd generation Atlantan to work for you. I pride myself in providing you with uncomplicated results for your luxury real estate sale and purchase.
