When selling luxury homes, you might be inclined to focus on things like its expansive square footage, impressive architecture, and top-of-the-line house features. But one aspect of real estate selling some people often overlook is pricing.
A number of established developers and brokers will agree that pricing a property is an art in itself and that you need finesse and savvy to do this. Value a property incorrectly and you risk losing any potential earnings from the sale or, worse, you drive away prospective buyers, leaving your luxury home sitting there for months on end.
Pricing a luxury home is a tricky thing. But with a little digging, you can learn how to do it yourself.
Learn about the market
Some people assume that you can go as high as you want when pricing a luxury home. You can, of course – but it flies in the face of good market practice. One of the major driving forces that will dictate how high you can sell your property is the state of the housing market in your area. It is in constant flux so it is best to learn about it as much as you can so you know the best time to sell.
The value of your property’s value today can be different next month or a year or two from now. While the housing market follows the general rule of supply and demand, many other factors affect it as well like mortgage rates, policy changes, the job market, local market dynamics like the migration of populations, and so on.
It may look like a lot to take in, that’s why understanding how the market works is necessary if you want to get the most from your listing. You can also enlist the help of a real estate professional specializing in the area you’re in.
Your home is worth only as much as the buyers are willing to pay for it right now. Knowing how to get the feel of the market will help give you an idea whether it’s best to sell now or wait for a better day.
Sell the “luxury” in your luxury home
Selling a luxury home goes beyond its square footage and how much you spend on building the house itself. You risk losing a lot of potential value in your listing with this extremely practical approach. Buyers also need the romance of spotting their dream property, enthralling them into opening their hearts and eventually, their wallets.
If you are selling a luxury home, don’t neglect to take into account what made it luxurious in the first place. Sell the grand features, yes, but sell the intangible aspects that make your listing great and highly desirable.
Highlight the privacy, peace, and quiet your home provides by having a drone capture the sweep of your property and its place in the neighborhood. Showcase spectacular views and sunsets by having a real estate photographer shoot the house at various times of the day. Draw attention to outdoor entertaining by lighting up your fire pit at dusk and surrounding it with comfortable seating.
These things add value to your listing and dictate the extent to which you can price your property. They show that while the hard specs of your property matters, so do the touches that make your luxury home desirable and, equally important, livable.
Seek the help of expert professionals
Sometimes, luxury homes can be difficult to price because yours can be the only one of its kind on the market. Most luxury homes are custom builds so it’s hard to compare them with anything else out there.
To help you put a marketable price on your property, hire a reputable appraiser or a real estate professional specializing in luxury homes in your location. An appraiser, who is often licensed by the state, will assess the fair market value of the property by comparing it with similar properties within the area. They will also note factors that affect value such as the noise levels of the area due to traffic, for example, and recurring disturbances like proximity to an airport. An appraiser also assesses views.
A real estate professional specializing in luxury properties knows the ins and outs of the market, especially within the areas they represent. They have their ear to the ground and remain updated on any kind of development that will likely affect the luxury properties on their listing.
Hire one or both to make sure the value of your home is on the money.
If you’re selling your luxury home abroad, Call Spark & Partners. We specialize in buying, selling, and renting out luxury property in Monte Carlo, Monaco, and the French Riviera. Call +377.97.777.000 or email hello(at)spark-estate(dotted)com for more information.
In the 10 years we have been in the business, we have cultivated strong, long-term relationships with our clients and know how to price your home for sale competitively. Our Monaco real estate listings include apartments, penthouses, villas, single-family homes, and offices.
Contact us today to get started.