Pricing a luxury home for sale is much more complex and detailed than you might think. As with any home sale, the stakes are high and you don’t need a mediocre agent that looks at the price per square foot and calls it a day. Great real estate agents will ask the right questions. What exactly are you selling… a location, a neighborhood, a specific architect or builder? The list goes on.
When determining the price of a luxury home, you really have to know the details of what you’re selling in order to play to its strengths and help it stand out in a competitive market. How is the home unique? Does it have a specific architectural design? Is it a one of a kind property such a Frank Lloyd Wright design or a Ralph Haver home?
The materials and features of the home also play a major role. Most luxury properties have unique attributes like a home theater, wine cellar, home gym, smart devices, security systems, surveillance cameras, and a spectacular pool or backyard. So, what makes this property special and worth the price someone is willing to pay? Asking the right questions and getting the answers you need will help you market to the right buyer.
As you can see, there are many factors in determining the price of a luxury home. Here are a couple more to think about.
The location of a home is probably one of the top pricing factors in luxury real estate. Luxury homes are often found in areas with other luxury properties such as the Biltmore Estates, Paradise Valley or Silverleaf. Highly-sought after zip codes can play a factor in determining the price, especially if a buyer is willing to pay more just to be there.
Architecture & Design
As you drive up to the property for the first time … what makes this home spectacular, different or special? As I mentioned before, know your architecture. Even a design that is inspired by a famous architecture has value. As you walk through the home, note what catches your eye. What are the best features of the home? What would a buyer find special with that property? Is the home close to highly desirable amenities, a favorable neighborhood or award winning schools? What is that neighborhood known for and is it possibly more desired than another nearby?
The Right Price
Probably the most important tip for selling a luxury home is listing it at the right price from day one. There’s a first home for everyone but when it comes to luxury buyers and sellers, it’s more common that this is not the first home they have ever bought or sold. Therefore, they’re expecting their real estate agent to know everything about the neighborhood including what separates their home from other luxury properties in the area based on what has recently sold. There’s a small margin for error and these skills can take years to master!
To be successful in the luxury real estate market, it’s important to seek the right training.
At Tru Realty, we set our agents up for success and give them the tools to succeed beyond just receiving a real estate license. Whether you’re a seasoned agent looking for a better fit or just starting out in the industry fresh off graduating from real estate school, Tru Realty can help you grow your career. As the Director of the Luxury Division, I am here to assist you and your clients in this process of buying and selling luxury – contact firstname.lastname@example.org to learn more.
Cheryl Malcolm is Director of the Luxury Division and Associated Broker at Tru Realty. She was raised in the Bay Area of California by a real estate savvy family that instilled in her a deep understanding of the industry. Cheryl’s passion and integrity paired with a lifelong connection to real estate are what inspire her to provide clients with the highest quality of service.