What Can Happen When You Get The Price Wrong On Your Luxury Home | cincinkyrealestate.com

Setting the right price for a luxury home is one of the most critical aspects of selling a home.  Setting a price too low and the homeowner is walking away from money they could have otherwise added to their own pocket.  Setting a price too high and no amount of marketing will help get that home sold.  The price of a home is determined by what a ready, willing and able buyer offers for the home.  The amount invested into a home, the amount originally paid for a home or the amount owed on a mortgage does not really play into the actual price a home will sell for.  Sure those items may factor into the homeowners equation as to whether it makes sense to sell the home or not, but it does not set a home’s price.

Take for example a high end luxury home purchased for over one millions dollars and located on a hillside with a great view of the city.  If the home has been kept in excellent shape, updates been made as needed, repairs done on a regular basis then the home still will only fetch what the current market indicates.  If the real estate market is strong and there are plenty of buyers then the chance of the home selling for more than it was purchased for may be good.  On the other let’s say that same home had one quarter of the house shift downward resulting in major structural issues due to improper construction on the hill side.  The home may have been purchased for more than one million dollars but due to the current condition no one will pay that much.  While the hillside shift is an extreme example even in less extreme examples the principal still holds.  A home is only worth what people will pay for it so getting the price right from the start is crucial.

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What Can Happen When You Get The Price Wrong On Your Luxury Home.