How To Properly Price A Luxury Property

In the non-luxury real estate market, pricing a home is more or less straight-forward. The factors often take into consideration the price of the neighborhood and surrounding area to determine the price per square foot and calculate that to create an ideal price.

However, pricing homes in the luxury home market is not so simple. Most luxury homes have high-end features that are completely unique, which makes it difficult to compare one luxury home to another. That is why pricing a luxury home can be considered more of an art than a science.

Whether you are selling your luxury home on your own or using a professional real estate agent, it is important to know the factors that come into play when pricing a luxury home and how the process works.

The Factors That Impact The Value Of A Luxury Home

There are a number of different factors that influence the value of a luxury home. Most notably are the various unique and specialized experienced-based features which can include sport courts, bowling alleys, car showrooms, and indoor pools. Also, if the luxury home is located in a prime location, like on a beach front, that plays heavily into the value of the property.

While those aspects all affect the value and desirability of the luxury home, it is important to keep in mind that not all features are equal in value. For instance, some luxury homebuyers may be keen on finding a home with a bowling alley, but not everyone will be drawn toward those unique features.

Factoring Unique Features Into The Price

As mentioned, a luxury home’s unique features can be difficult to factor into the price, especially if there are no other luxury homes in the area with those features to compare against. When this is the case, the listing price often reflects the amount that the seller is trying to make from the property along with careful consideration as to what a buyer would pay.

When it comes to pricing out these features, it is important to find an expert agent like Dianne Anderson that has the experience and know-how to properly price any luxury home.

What Luxury Home Buyers Need To Know

It is important to keep in mind that even home appraisals for luxury homes are more involved than non-luxury homes. For example, for some homebuyers, a car showroom is an absolute must, but for others it could be completely unnecessary.

Unique features in luxury homes do not appraise in a formal appraisal. Instead, an appraisal may come back with a lower price than the agreed-upon sale price. Even if that is the case, the appraisal is not the final say in the price like it often is in traditional real estate.

In the end, if a buyer truly wants to purchase a home, they will likely find a way to make it happen regardless of what the appraisal says.

Reach Out to Dianne Anderson

Now that you understand why pricing luxury homes is so challenging, it is important to ensure you hire an expert real estate agent to help. If you are thinking about selling your luxury home in Southwest Florida, reach out Dianne Anderson today. With her wealth of knowledge, she can properly price any luxury home to ensure you get the best deal possible.

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