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Why Luxury Home Pricing Is Critical When Listing For Sale | MortgageRealty

Luxury homes have an even higher standard when it comes to getting sold since the marketplace of buyers is already smaller than it is for non-luxury homes. With fewer buyers that means luxury home sellers need to be on top of their game when it comes to presenting the home for sale. Pricing is one of the crucial aspects of selling any real estate. Generally being higher priced means a luxury home will spend a little more time on market due to the limited pool of buyers. By overpricing the luxury home that time can be even extended further which will make it all that much harder to find a buyer.

Why Pricing Matters
Whether a home buyer is looking to buy an entry level home or buy a fully equipped luxury home the price matters. No home buyer wants to spend more money than they have too since the money they save on a home can be put to better use like furnishing a home, adding upgrades or features they really want in a home. Value matters to home buyers and just because a homeowner values their own home higher because of emotions attached or because they think they can get dollar for dollar increase in price based on what they paid for upgrades does not mean the buyers will agree. To home buyers homes are interchangeable and there are multiple homes to choose from. Just because a home has many great features and updates does not mean home buyers will overpay since other homes which have similar features and are not overpriced will be just as desirable.

Especially in the luxury class of homes, buyers have the money to make updates when needed and therefore buying a home that needs some TLC will make more sense than buying a home that is overpriced because it already has everything. With the home needing TLC the luxury home buyer can spend what they want to bring the condition up to the level they desire and get to choose the features and finishes they add. This is one of the many reasons premium pricing does not work for homes that are very interchangeable.

Pricing needs to be fine-tuned within the first two to three weeks of the home being listed on the market. Due to being a luxury home and the fact there may not be many similar homes available for sale the pricing number may not be as easily determined. Therefore by starting off with a reasonable number and paying attention to home buyer feedback the homeowner should adjust their pricing earlier rather than later. The longer a home sits on the market without any offers due to high pricing the greater the chance will be that most buyers think there is something wrong with the house and will avoid it in general. The net long term effect will require the homeowner to drop the price steeper in order to get any interest.

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Why Luxury Home Pricing Is Critical When Listing For Sale.

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